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Bitcoin [BTC] to USDT market share falls for the first time in 6 months post-Bitfinex fiasco

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After the Bitfinex-Tether fiasco rocked the cryptocurrency market late last month, the trading volume of Bitcoin to the top stablecoin dipped slightly. However, given the larger picture, it held firm. In light of the collective market upheaval, BTC-USDT trading volume rose by over $1.2 million.

The same was pointed out by CryptoCompare’s exchange review for the month of April, which also detailed Bitcoin trading in fiat and stablecoins. Tether [USDT] topped the list, followed by the top fiat currency, the US Dollar [USD], with the three prominent fiat currencies of Japan, the European Union and South Korea making the top-5.

Source: CryptoCompare

Bitcoin to USDT took 78.9 percent of the total volume of both fiat and stablecoins, amassing a total of 10.3 million. Despite the absolute value increasing by $1.4 million from March’s total of 8.9 million BTCs, the market share dropped by 2.8 percent. Tether held 81.7 percent of the market in the previous month.

However, when the months of January and February are put into context, the numbers paint a telling tale. Back in February, the USDT share was 70 percent of the market, with the volume at 6.23 million BTCs, albeit in a recovering market. In the first month of the year, Tether represented 65 percent of the market, with the December 2018 and November 2018 figures pegged at 63.7 percent and 54.9 percent, respectively.

Given the past figures, Tether’s market share has been on a consistent rise since November 2018, when the peak of the crypto-winter materialized, peaking at 81.7 percent in March. The performance for the month of April was the first time in over 6 months that the market share of BTC to fiat or stablecoins dropped on a month-on-month basis.

It should be noted that the New York AG’s report which accused Bitfinex of covering up their undisclosed losses of $850 million using Tether reserves was released on April 25. Most of the BTC-USDT trading activity analyzed by the report had already transpired. Hence, the bad-rep faced by Tether in the community, something that may have had a spillover effect into May, is not reflected in the report.

Unsurprisingly, USDT held the top spot when BTC trading into top stablecoins is looked at, accounting for 97.9 percent of the market and dropping below 98 percent for the first time in two months. Other top stablecoins on the list are Paxos Standard [PAX], USD Coin [USDC], and TrueUSD [TUSD].

Source/ambcrypto

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Inner Mongolia to Shutter ‘Illegal’ Bitcoin Miners by October as China Cracks Down on Industry

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China’s Inner Mongolia autonomous region is carrying out an inspection to eliminate “illegal” bitcoin mining operations by October, a government spokesman told CoinDesk, confirming a local report.

The official document detailing the inspection plan was leaked to Chinese media which published photos of the decree from the Inner Mongolian regional authority.

“The inspection is directed by the central government, rather than a standalone plan initiated by the local government,” according to an industry executive involved in the planning process.

“The move reflects the nationwide phase-out plan on the bitcoin mining,” the source added. The government’s plan is to drive out the digital currency mining industry from China by 2021..

According to the 10-page document, data centers that provide facilities for bitcoin miners and unregistered bitcoin mining businesses will be closed.

The local authorities leading the raids will target any bitcoin mining operation that tries to get preferential electricity prices and tax breaks by pretending to be a sanctioned user, such as a big data company or cloud computing host.

Existing bitcoin mining businesses that pass the inspection will be categorized as “limited companies” that should pay the official electricity rate and not negotiate with power stations directly. They will still be expected to shut down their mining operating by 2021.

The region-wide inspection is being rolled out in two phases.

The municipalities are carrying out the inspections from Sept. 3 to Sept. 25 and then.reporting their findings to the regional government, which will form a team to investigate the findings from each jurisdiction from Oct. 10 to Oct. 20..

Inner Mongolia, in northern China, is among the most suitable areas to operate bitcoin mining businesses thanks to its cheap electricity supply, low land prices, cold weather and a small population.

Such conditions help miners by reducing their biggest cost – electricity – cooling equipment more quickly and avoiding densely populated areas that would be bothered by noisy operating machines. Bitmain, one of the largest bitcoin mining companies, has had operations in the region.

China started to crackdown on bitcoin mining operations before the formal announcement in April by the National Development and Reform Commission, the primary government agency for economic planning.

The NDRC’s position indicated that the mining industry should be phased out of China as it does not fit in the future economic development plan of the country. Trading and possessing cryptocurrencies is illegal in China as part of broader currency controls, but crypto use is prevalent on the black market.n-miners-by-october-as-china-phases-out-indust

source.coindesk

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JP MORGAN IN METALS RACKETEERING SOUP; BITCOIN STILL A FRAUD?

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WHO IS THE FRAUD NOW?

JP Morgan Chase boss Jamie Dimon once called bitcoin a fraud. Two years ago he said ‘If you’re stupid enough to buy it, you’ll pay the price for it one day.’ Now it turns out that his bank has been the fraudulent one as the DOJ flexes its muscles against JP Morgan’s trading desk.

According to the Financial Times, three metal traders for the Wall Street bank have been charged for market manipulation in what the prosecutors described as a

“Massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”

JP Morgan’s head of precious metals trading, Michael Nowak, was charged on Monday along with two colleagues, Gregg Smith, and Christopher Jordan. The federal racketeering charges handed out are normally used to take down organized crime syndicates.

Effectively JP Morgan can be considered a crime syndicate following this scandal and RT anchor Max Keiser tends to agree.

“Yep. We called every dirty, Silver manipulation of @jpmorgan
#FinancialTerrorist, human tapeworm Jamie Dimon made $1 bn on this.”

The indictment alleges that between May 2008 and August 2016, the defendants engaged in widespread spoofing, market manipulation and fraud for gold, silver, platinum and palladium futures contracts while working on the precious metals desk at the bank.

JP Morgan along with HSBC dominates global flows of gold and silver trading. The charges added that the traders placed orders that they intended to cancel before execution in order to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market.

SHORT THE BANKERS, LONG BITCOIN

It has been a long time coming but it is likely the case will increase scrutiny over the world’s precious metals markets and the dominance of large banks such as JP Morgan. Prosecutors indicated that more senior executives and other banks were under investigation.

In the past decade alone global banks have been fined more than the entire market capitalization for all crypto assets for a range of nefarious activities. Just last week banks in the UK were hit with billions of dollars in fines for an insurance scam that defrauded millions of citizens.

For once we can say with confidence, yes, bitcoin solves this.

Should Jamie Dimon take back his ‘bitcoin is fraud’ statement? Let us know what you think.

source:bitcoinist

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BITCOIN AND BLOCKCHAIN BOOSTING LAW INTENDED TO CREATE JOBS

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BLOCKCHAIN TO GET THE JOBS ACT RIGHT

The Jumpstart Our Business Startups Act, colloquially known as the JOBS Act, is a law intended to create jobs in the United States. The concept behind it is to encourage funding of small businesses by easing various securities regulations.

President Barack Obama signed JOBS into law in April 2012. Before the enactment this law, authorities allowed companies to raise money only from accredited investors holding a net worth of at least $1 million.

Then, under the JOBS Act, new rules and proposed amendments were designed to assist smaller companies with capital formation, providing investors with additional protections.

Thus, on October 30, 2015, the U.S. Stock Exchange Commission (SEC) adopted the rules to allow companies to offer and sell securities through crowdfunding. Specifically, Title III of the JOBS Act provided a federal exemption under the securities laws so that investor can use crowdfunding to trade securities.

However, according to Forbes, the law failed to materialize the number of jobs expected, forcing former vice-chairman of NASDAQ David Weild IV, one of the main supporters of the law, to call “for a JOBS Act 2.0 that would be built using blockchain, a shared distributed ledger.”

Now the law it seems is starting to fulfill its promise. For example, on August 19, 2019, INX Ltd. filed with the SEC the initial public offering (IPO) petition to raise $130 million by selling security tokens. The minimum investment amount to participate in the IPO is $1,000. Moreover, Forbes reports,

“Weild, who sits on the board of INX, says he now has 14 blockchain and cryptocurrency clients waiting in the rafters to bring the best of blockchain to the best of traditional exchanges, and perhaps, finally get the JOBS Act right.”

BITCOIN ADDS JOBS TO THE DIGITAL ECONOMY

Bitcoin is also streaming jobs into the economy directly. Job sites such as Monster.com, Simplyhired.com, and Indeed.com continuously post a variety of jobs related to BTC.

Additionally, sites specialized in freelance job opportunities often post jobs that pay in BTC. Cointastical published a long list of freelancing platforms that offer payments in Bitcoin.

So, thanks to Bitcoin’s technology and the Internet of Things (IoT), the digital economy continues to provide us with more jobs and opportunities.

source:bitcoinist

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