James Corbett explains the differences between Bitcoin, blockchain, cryptocurrency, and digital currency. They may all sound like they are the same but they are not, and the differences are extremely important for anyone hoping to keep up with the rapidly evolving lead-up to the cashless society. Don’t miss this one. Full transcript is provided in link.
BitConnect has closed down its lending and trading platform. Many have called it a ponzi-scheme, because people would loan the anonymously-run site money in exchange for exorbitant interest, depending on the length of the loan. BitConnect’s platform was a multi-level referral system. The site claimed it earned revenue from day-trading crypto coins. The company blamed the closure on bad press, two cease-and-desist letters from securities authorities on the basis that it lacked proper registration, and perpetual DDoS (distributed denial-of-service) attacks on its servers.
Charlie Lee, the creator of the world’s fifth-biggest cryptocurrency, Litecoin, announced that he was cashing in his profits after a 9,300% rally in the past 12 months. The San Francisco-based software engineer who founded Litecoin in 2013 said he sold and donated all of his holdings over the past few days. He declined to say how many Litecoins he sold, but said it was a small amount of what is traded daily, so it did not hurt the currency.
Find out what the blockchain is, why the price of Bitcoin has exploded, how to buy and store Bitcoin, and how the banks are maneuvering to dominate the system. This is not a recommendation to buy Bitcoin, but a guide for what to expect should you decide to do so. We believe that lots of money will be made and lost in the early stages of cryptocurrency. The more you know about it, the better your chances are for success.
Bulgaria: Banks cracked down on Bitcoin exchanges last week by closing down the exchanges’ commercial-bank accounts and blocking them from obtaining national currencies. The exchanges pointed to bankers, not the government, as the source of the problem, although it is likely that the government would have prevented the banks from doing that to any other class of customers. According to independent news sources, the exchanges began restoring operations several days later.
Bulgaria acquired 213,519 Bitcoin after an organized crime ring was busted for placing a virus into computers at the Customs office that allowed members of the ring to avoid import taxes on their cargo. The group converted its gains to Bitcoin, which now is valued at $3.6 billion. [It is not clear from this article how the government was able to confiscate the Bitcoin inasmuch as cryptocurrencies are supposed to be secure against theft or government seizure. If anyone can tell us how this was accomplished, we will share it with our readers.]
Bitcoin makes another dramatic advance, this time above $9,500 as Korea’s second largest bank, Shinhan Bank, tested Bitcoin services for its clients. The bank intends to manage and issue the private keys of bitcoin addresses and wallets. Shinhan is no small enterprise with $192-billion in assets and over 13,000 employees in 2016. Bitcoin now has a market cap over $156-billion, leaving the cryptocurrency worth more than Merck, Disney, and GE.