Dutch and Korean Mainstream Media Extensively Cover Bitcoin Rally

Dutch and Korean Mainstream Media Extensively Cover Bitcoin Rally

Bitcoin is sustaining a strong price rally, maintaining its stability at the US$1,020 margin. Within seven days, the price of bitcoin rose by 9%, pushing the demand for the digital currency in exchanges worldwide. As a result, bitcoin began to gain extensive coverage by mainstream media in South Korea, Belgium, and the Netherlands.

Extensive Coverage in Belgium and the Netherlands

In the Netherlands, de Volkskrant, leading daily morning newspaper with a circulation of nearly 250,000 nationwide and De Telegraaf, the largest Dutch daily newspaper with a circulation of 430,000, provided extensive coverage on bitcoin and its recent price rally to their mainstream audience ever since bitcoin reached the $1,000 milestone.

Analysts at De Telegraff offered insightful and accurate assessment of bitcoin’s rising value, stating that current global economic instability and uncertainty led to the increase of demand for bitcoin. Researchers at the firm also mentioned China’s role in bitcoin’s recent price rally, explaining that investors, traders and households purchased bitcoin to move the Chinese yuan out of the country.

De Telegraff stated:

Bitcoin has in recent months was sought after by investors due to the uncertainty in the international economy. According to analysts, the popularity of bitcoin is enhanced by strong demand from China, where virtual currency investors are seeking for an interesting alternative to the yuan.

While tightening regulations and capital controls initiated and imposed by the Chinese government indeed played a vital role in pushing the price of bitcoin, experts like Vinny Lingham told users and investors that it is important to consider the impact of the Federal Reserve’s increase in interest rates on bitcoin.

The global economy is dependent on the US dollars directly and indirectly. Currencies like the Chinese yuan and South Korean won depend on the performance of US dollars and thus, when the US dollars rise in value, they decline in price.

Inevitably, when the Fed raised rates in December, the demand for bitcoin surged in countries like China and South Korea due to the rising number of investors and traders seeking for alternative assets to avoid currency devaluation.

De Tijd, a major newspaper in Belgium with 41,000 in circulation, also provided coverage on bitcoin on its online media outlet, emphasizing bitcoin’s strong performance throughout the year. Analysts at De Tijd noted that bitcoin was worth less than $500 in the beginning of 2016 and it reached a 3-year high price on the first day of trading in 2017.

South Korea: Fed Rate Hikes, Bitcoin Demand Rises

The South Korean economy is slowly recovering from controversies surrounding President Park’s involvement in bribery and other serious offenses.

When the Fed announced its plans to raise interest rates last month, mainstream media outlets in South Korea expressed their concerns with the decreasing value of the South Korean won. Such coverage led to increasing demand for bitcoin within the country and ultimately, extensive coverage from mainstream media.

Mainstream media coverage in leading countries like the Netherlands and South Korea are exposing millions of people to bitcoin on a daily basis. If bitcoin continues rise in price, it will aid mainstream adoption of the digital currency in the long run.

Image from Shutterstock.

 

Chris Corey Chief Marketing Officer 

Markethive 

Joseph Young on 03/01/2017​

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2016 Review: There’s New Momentum For Bitcoin and the Blockchain Industry

2016 Review: There’s New Momentum For Bitcoin and the Blockchain Industry

https://markethive.com/chriscorey/page/mycrypto

2016 set the bull charging again. A combination of events, beginning with bitcoin’s popularity as a hedge that protects assets from the forces afflicting traditional markets, set the stage for the price more than doubling in 2016. The good news on the price front tempered the volatility that has historically plagued the cryptocurrency, helping to solidify its role in society.

The positive news on the price front facilitated the continuing venture capital investment in bitcoin that was evident throughout the year. Venture capital investment in bitcoin in the last three years topped $927 million.

Bitcoin was also the best-performing currency this year, climbing 21% in USD value. Its performance surpassed that of the U.S. dollar and the Israeli shekel.

Moving Mainstream

The currency has moved from an investment commodity to everyday use, according to Coupofy.com, a digital marketing concern that provides online coupons for retailers.

Overstock, the online retailer that has been one of bitcoin’s most visible supporters among U.S. businesses, in December became the first publicly-traded company to issue stock over the Internet, distributing more than 126,000 company shares using the bitcoin blockchain.

Through a subsidiary called tØ, Overstock created a blockchain-based technology to facilitate trading financial securities.

Bitcoin also moved deeper into the financial mainstream in 2016. In May, derivatives giant CME Group launched two bitcoin benchmark indexes. Intercontinental Exchange Inc., a CME Group rival which owns the New York Stock Exchange, also announced plans to launch a real-time price index for the bitcoin.

Price Surge Began Early

Bitcoin’s price rose to just below $500 after the U.S. Federal Reserve Bank raised its fund rate by 25 basis points in late 2015. The bitcoin price tracked the U.S. dollar rally against other fiat currencies.

The negative start of the 2016 stock market demonstrated bitcoin’s value as a hedge against more volatile investment options. Bitcoin was one of the few winning investments in the worst first week of the year for U.S. stocks in early January. The Dow Jones Industrial Average and the S&P 500 had their worst first weeks in history. Bitcoin, gold, the yen and natural gas were in growth modes.

Bitcoin’s price in January surged more than $20 in a 10-hour period to scale beyond $450. The climb did not occur in a straight line, however.

After falling to $360 in January, the price rebounded past $400 in February.

Fed Rate Hike Doesn’t Spook Bitcoin

The Federal Reserve Bank’s 2016 rate increase announcement in March had little impact on bitcoin. Half the market passively accumulated via limit orders placed just below price while the other half actively sold at market price.

The Federal Reserve’s early rate hike did not have a telling impact on bitcoin price.

The release of the code for Segregated Witness (SegWit) in April, an upgrade to the bitcoin protocol designed to enable more transactions within a single block of the blockchain, helped push bitcoin past $460.

In June, the price soared beyond $570, reaching a near two-year high. It hit $750 by mid-November.

Geopolitical Events Support Bitcoin

Global political events worked in bitcoin’s favor, beginning with the June U.K. Brexit referendum. After the U.K. pound (GBP/USD) dropped to $1.32, the U.S. dollar and gold rallied while bitcoin achieved a $140 gain.

Bitcoin prices were impacted by Britain’s referendum to exit the European Union.

The climb was not uniform.

Bitcoin’s price crashed in August as the Bitfinex exchange suffered a security breach that led to the theft of an unconfirmed number of bitcoins. The big exchange further announced a shutting down of its website and trading in ominous signs reminiscent of Mt. Gox.

Bitfinex got back online after advising users that they would lose 36% of their assets. The exchange levied a 36% price on all of its users, whether or not they were victimized individually by the hackers. The attack led some to believe the industry had not come up with a way to ensure security.

Others viewed the Bitfinex episode as proof that the bitcoin network is capable of withstanding negative events.

The Surge Continues

The price struck a new yearly high of $794.39 on the Bitstamp Price Index (BPI) in late December as the surge continued.

Financial adviser Martin Tillier observed that bitcoin’s previous price hikes were mysterious, but the current one is due to the devaluation of China’s currency.

Because there are logical reasons for the current price surge, the market is acting as a forward discounting mechanism and some degree of appreciation is now built into the price, Tillier noted. In addition, the interest from traders combined with the ability to short the currency allows the market to check upward spikes naturally, simply by attracting sellers.

Bitcoin gained more value than all other currencies in 2016, driven by China’s crackdown on the yuan, isolationist rumblings in the U.S. and the U.K, and increasing acceptance by consumers and businesses, according to Bloomberg.

By the time the price surged 79 percent since the start of 2016 to $778, it reached its highest level since early 2014, according to data compiled by Bloomberg. At that point, bitcoin quadrupled the gains posted by Russia’s ruble and Brazil’s real, the world’s top two hard currencies.

Hard Fork Debate Continues

Drama engulfed the bitcoin industry over the hard fork solution to address the bitcoin block size. The issue caused longtime developer Mike Hearn to announce his departure from bitcoin in December of 2015.

Bitcoin Classic – a successor to Bitcoin-XT – appeared on the scene as a possible new implementation of the bitcoin protocol.

Many in the industry celebrated the new solution, despite the reality that the coding was not complete, and that the main developer on the project once noted that he was an average C++ programmer. This didn’t stop industry leaders like Coinbase CEO Brian Armstrong from championing the technology.

The scaling debate is set to continue in 2017.

The main controversy around Bitcoin Classic centered around two opposing viewpoints. Those seeking to increase the maximum block size from 1 MB to 2 MB claimed that it is necessary to keep transaction costs down and continue the growth of the system.

Those against the block size increase argued that important technical issues were not properly addressed.

The core development team decided to take a clear direction, yet some miners, exchanges and start-ups pushed back.

The Classic camp, consisting of entrepreneurs, wanted a more immediate fix to expanding the network by increasing the block size. The Core camp, consisting of miners, didn’t want to increase the block size since some miners will be less likely to earn mining rewards.

Mining pools representing at least 70% of the total hashing power of the bitcoin network and some of the largest bitcoin exchanges said they would not support Bitcoin Classic or any “contentious hard-fork.”

Bitcoin Price Holds

When the bitcoin reward halving occurred in July, there were no price drops. Parties were held worldwide.

There was concern about miner profitability since miner rewards were cut in half from 25 to 12.5 bitcoins.

The bitcoin price eventually resumed its upward trend. One factor noted at the time was the devaluation of the Chinese yuan, driving Chinese investors to bitcoin.

In January 2017, the foreign currency cap for the amount of foreign currency that a Chinese citizen can convert ($50,000) will be reset for the new year. Inevitably, the surge in capital outflows could weaken the yuan further, setting off a market reaction that could lead to further demand for safe assets such as bitcoin.

Other factors cited were India’s demonetization drive, the unexpected Trump U.S. Presidential election victory and the U.K. Brexit referendum.

Blockchain Continues Its Surge

Investment in blockchain technology reached new highs in 2016.

Digital Asset Holdings, the New York firm developing blockchain solutions for the financial services industry, announced two new investors. IBM and Goldman Sachs joined 13 other investors with the funding scaling beyond $60 million.

Blockstream, a startup developing blockchain sidechains, raised $55 million in Series A funding, bringing the total capital raised to $76 million.

The R3 blockchain consortium which is testing blockchain technology for securities settlements and payments continued to make news. In late 2015, 12 banks joined the group. The consortium also opened membership to non-bank financial companies, including clearing houses, exchanges, standards organizations and infrastructure providers.

In November of 2016, some banks, including Goldman Sachs, one of the earliest members of the R3 blockchain consortium, reportedly chose not to renew membership with the working group.

VISA and blockchain technology partner BTL announced in September plans to invite a select group of European banks to participate in a blockchain project that will see inter-bank payments made via transfers over the distributed ledger.

Microsoft and Bank of America Merill Lynch in September announced a collaboration with the aim to “fuel transformation of trade finance transacting” with blockchain technology. The biggest changes would mean reduced transaction settlement time and newly automated processes.

R3 and 12 member banks in October trialed Ripple’s native digital currency token XRP, using the fintech startup’s blockchain technology, for cross-border payments. The trials were conducted at R3’s lab in an effort to demonstrate cost-cutting and increased efficiency of cross-border payments using Ripple’s digital asset.

Microsoft’s blockchain-as-a-service (Baas) endeavor gained new partners, including BitPay, for the service that will be made available for its Azure cloud platform.

Bitcoin entrepreneur Jeff Garzik started Bloq, a code-for-hire service to develop features for blockchain software and provide access to blockchain support. The company charges $3,000 to $5,000 per month. PriceWaterhouseCoopers agreed to sell the service to its customers.

New Blockchain Applications Emerge

Blockchain technology continued to find new applications in 2016.

Early in the year, General Motors tweeted news of its collaboration with Lyft to create self-driving vehicles. The announcement came as the industry was awaiting Ford and Google to announce a partnership for self-driving vehicles. Both of projects promise ripe grounds for smart contracts, blockchain-powered contracts that can tie IoT and vehicle finance together.

Blockchain is allowing musicians to monetize their work and engage with fans more directly. By embedding music in the blockchain, those involved in its creation can get paid immediately in cryptocurrency. Hence, the blockchain has the potential to change the way the music industry operates.

Several initiatives were announced to use blockchain technology to connect energy grids, delivering more efficient and environmentally sustainable energy. One company, L03 Energy, is building an “open source cryptographically secure” blockchain to manage transactions across a microgrid.

The hype surrounding blockchain technology has led to numerous pilots and prototypes deployed in 2016.

PriceWaterhouseCoopers, a provider of audit and assurance, tax and consulting services, teamed with Z/Yen, a London-based commercial think tank that promotes societal advancement through better finance and technology, to study the potential of blockchain technology in wholesale insurance.

Walmart and IBM partnered in October to manage the supply chain for Chinese pork on a blockchain, ensuring consumer confidence in the food industry. Teaming up with Tsinghua University in Beijing, it is hoped that by digitally tracking the movement of pork in China on a distributed ledger, food disasters will be prevented.

The issue of institutions hyping blockchain technology without bitcoin continued to be an area of debate in 2016. While many financial institutions expressed interest in blockchain technology but not bitcoin, some observers pointed out that the institutions ignore the fact that a cryptocurrency is needed to support a blockchain. One observer claimed that hyping the blockchain while denigrating bitcoin is an effort to blunt bitcoin’s challenge to traditional currency.

Ethereum Makes Waves

2016 was also a big year for Ethereum, which continues to make waves on the cryptocurrency landscape, with developers introducing new applications that take advantage of its smart contract and crowdsale capabilities. The market cap for ether, the crypto asset and token of the Ethereum network, soared above $1 billion.

As Ethereum grows, it earns media coverage which in turn fuels its growth. It attracted interest from major financial companies that are using it for private blockchains and smart contracts.

The Ethereum ecosystem continues to grow.

In May, the Gemini exchange, founded and operated by Tyler and Cameron Winklevoss, gained the approval from the State of New York via the Department of Financial Services to offer ether trading.

Ethereum witnessed some growing pains in 2016. In June, the distributed autonomous organization (DAO) was breached when an attacker drained the ether contained in the DAO into a child DAO.

In response, Ethereum developers proposed a soft fork to be followed by a hard-fork. Miners unanimously supported the fork. The discussion and debate around the DAO vulnerability raised questions about trust and the human factor in the realm of distributed ledger technology.

Ethereum’s price jumped when the fork took effect in July. The clean resolution to the attempted heist was possible due to a new, decentralized governance model where those with a stake in the system cast their decisive votes.

Regulatory Activity Increases

While regulatory actions are not generally viewed as positive for any industry, regulations in 2016 were supportive in some ways.

A European Court of Justice ruling exempted bitcoin from value added tax (VAT), which was hailed as a victory by bitcoin advocates. The case was between the Swedish Tax Authority and the nation’s Revenue Law Commission. It commenced after a Swedish citizen asked for clarification of VAT on bitcoin.

Regulatory actions in Russia, a country that has not been supportive of bitcoin, improved in 2016. The Internet Development Institute (IRI) of Russia prepared a roadmap titled “Economics and Finance” which included a proposal for regulating blockchain.

Deputy Finance Minister of the Russian Federation stated in October that the spread of bitcoin in Russia does not represent a threat to the country’s financial ecosystem at its current rate of adoption. As such, the plan to ban the cryptocurrency was put on hold. The Ministry of Finance initially proposed a 4-year prison sentence for bitcoin users late last year. In what could be seen as a move to bring respite, the Ministry then proposed a 2-year “corrective labor” sentence – a combination of penal detention and forced labor – for bitcoin adopters earlier this year.

Bitcoin’s increasing adoption and prominence has led to regulatory moves by several countries in 2016.

document by the federal tax authority in Russia in December revealed its first official stance on the legal status of cryptocurrencies. It noted bitcoin cannot be blocked or banned since cryptocurrencies can be deemed foreign currency transactions according to Russian laws.

State regulatory initiatives in the U.S. increased in 2016, indicating growing awareness of bitcoin.

Lawmakers in the State of Wyoming proposed a bill to require that cryptocurrency be treated the same as fiat currency under the state’s money transmitter’s act. The purpose of the bill is to encourage bitcoin-friendly companies to want to do business in the state.

The New York State Department of Financial Services in June approved Ripple Labs’ BitLicense application to sell and obtain XRP – the native digital asset of the Ripple Consensus Ledger, a platform used by financial institutions and companies.

North Carolina Gov. Pat McCrory signed a law that defines “virtual currency” and clarifies what activity triggers licensure. The law defined the term “virtual currency” and the activities that trigger licensure. Virtual currency miners and blockchain software providers will not require a license for multi-signature software, smart contract platforms, smart property, colored coins, and non-hosted, non-custodial wallets.

The State of Illinois sought comment on a guidance document it released on whether a money transmitter license is needed to engage in selling decentralized digital currencies. The document says the department does not require such a license since virtual currencies have not been adopted by governments as currency.

The document outlined the Department of Financial and Professional Regulation (IDFPR) interpretation of the state’s Transmitters of Money Act and seeks to establish the regulatory treatment of decentralized digital currencies.

IRS Summons Coinbase

One of the more alarming regulatory developments in the U.S. occurred in mid-November, when the IRS summoned Coinbase to provide information about its customers to facilitate the federal agency’s investigation into possible tax evasion by users of virtual currencies at any time between Jan. 1, 2013, through Dec. 31, 2015.

A federal judge approved the IRS summons, which Coinbase said it would oppose.

Mergers And Acquisitions Continue

Mergers and acquisitions continued in 2016.

Early in the year, Barry Silbert’s Digital Currency Group, an initial investor in Coindesk, acquired the publication as a whole, with editorial and business teams at CoinDesk to merge with Digital Currency Group’s events platform to form a new subsidiary based in New York.

In January, the largest ever deal of its kind in the bitcoin industry saw leading European bitcoin exchange Krakenacquire bitcoin exchanges Coinsetter and CaVirtEx.

There were also industry casualties.

KnCMiner, after winning a lawsuit against complainants who had sued over late or failed delivery of one of the company’s previous iterations of bitcoin mining hardware, filed for bankruptcy ahead of July’s mining reward halving.

The Swedish company’s CEO Sam Cole cited energy taxes and uncertainty about the future of the bitcoin mining market.

BitLendingClub in December decided to close its service designed to help small businesses in emerging markets due to regulatory pressures, the company informed customers in a blog on its website. The blog noted the company worked hard to build a platform to provide the greatly needed service.

The blog did not expand on what regulatory pressures it was facing.

Controversies Aplenty

The Silk Road saga continued to haunt bitcoin in 2016. Ross Ulbricht’s defense filed an appeal. The defense will argue that the court prevented crucial evidence from seeing the day of light.

A federal court sentenced a Utah man, Curtis Clark Green, whose faked murder helped law enforcement put an end to the Silk Road Marketplace.

In May, Norway police made their largest drug bust ever when they arrested 15 people selling drugs on what they claim is the second version of the Silk Road marketplace that the U.S. FBI closed in 2013.

Other controversies emerged. The Securities and Exchange Commission (SEC) sought judgments against Homero Joshua Garza, GAW Miners and ZenMiner, LLC, claiming they engaged in selling fraudulent investments in virtual currency mining operations.

The SEC ordered the defendants to pay $10,384,099 in disgorgement plus prejudgment interest, along with civil penalties. The SEC charged Garza, GAW Miners and ZenMiner with securities fraud and conducting a Ponzi scheme in January. The motion seeks permanent injunctions prohibiting the companies from engaging in future violations.

As an often misunderstood cryptocurrency, controversial bitcoin headlines are never too far.

Another drama surrounded the identity of bitcoin’s founder, Satoshi Nakamoto. A text analysis of Australian Craig’ Wright’s writing by a specialist working with the U.K.-based International Business Times determined that the Australian is most likely not Satoshi Nakamoto. The company used a technique that compares texts written by Wright with anonymous texts believed to be sent by Nakamoto, including the original bitcoin white paper.

The darknet continued to poke its unwelcome head in 2016. The late February terror attacks in Brussels caused French Interior Minister Bernard Cazeneuve to cite the darknet as a terrorist tool and call for measures to improve intelligence expertise in technologies terrorists use.

Ransomware Attacks Expand

Ransomware attacks quadrupled this year over last year, averaging 4,000 per day, according to the U.S. Justice Department, The Wall Street Journal reported in a front-page story. This is because ransomware has become easier to deploy and more profitable than other scams, and bitcoin is more widely used.

Nearly one-third of bitcoin trading platforms have been hacked, reported Reuters, while about half have closed up shop in their first six years.

Also read: Bitcoin Classic releases new code that could double the block size in bitcoin

Bitcoin Questions Remain

Bitcoin’s dual role as a commodity and a currency can create financial recovery disputes when a company that pays for services using bitcoin goes bankrupt.

Bitcoin’s identity as a form of money also remains undecided. A bankruptcy court judge ruled in February in one such case, stating that the cryptocurrency is not the same as U.S. currency, but making it clear that he wanted the ruling confined to a specific legal framework.

Miami judge ruled that bitcoin isn’t real money, so someone accused of laundering it shouldn’t be convicted of money laundering. This was the argument that attorneys used in asking a Florida judge to dismiss money laundering charges against Michell Espinoza, a Miami man who police say sold and laundered $1,500 worth of bitcoins to undercover detectives.

Crypto Innovations Continue

There were new cryptocurrency innovations in 2016. Zcash, a “zero-knowledge proof” alternative to bitcoin, publishes its payments on a public blockchain, but the sender, recipient, and amount of a transaction remain private. It works like bitcoin with the guarantee of anti-forgery assurances. No one can counterfeit Zcash, or spend the same Zcash “coin” twice. But thanks to its “zero-knowledge feature”, any spender or receiver can also choose to keep their Zcash payment entirely secret.

Bitcoin’s Outlook Positive

report by Denmark-based Saxo Bank claimed bitcoin’s price could rise by 165% to more than $2,000 due to an economic stimulus expected from incoming President Donald Trump. The bullish bitcoin outlook was one of 10 Saxo Bank “Outrageous Predictions for 2017.”

Bitcoin is poised to grow in 2017.

The Trump-promised fiscal spending binge is expected to add to the approximate $20 trillion of U.S. national debt, tripling the current U.S. budget deficit from about $600 billion to $1.2 trillion to $1.8 trillion.

The spending will cause U.S. growth and inflation to skyrocket, forcing the Federal Reserve to accelerate its hikes and the U.S. dollar to soar to new heights.

This creates a domino effect in emerging markets and China in particular, leading people globally to seek alternative currencies and payment systems that are not tied to central banks. Central banks engage in exhausted monetary policies that are in full financial repression mode.

Images from Shutterstock and Ethereum.

Chris Corey 

CMO Markethive Inc

Lester Coleman on 31/12/2016

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China To Support Blockchain Development Under New Five-Year Plan

https://markethive.com/chriscorey/page/mycrypto

China, a country that already plays a critical role in cryptocurrency due its dominance in bitcoin trading and mining, will support blockchain development as part of its recently-announced five-year plan, according to the state council website. The 13th Five-Year Plan (2016-2020) period has had a strong start and is poised to fulfill all key targets set by the central government for economic development.

 

According to the “13th Five-Year Plan” national information planning document, the “Thirteen Five” period is the stage for building a moderately prosperous society, with information and communication technology to provide a breakthrough in the initial development stage.

Profound Changes Coming

The document noted that the development of the global information technology environment, conditions and content are undergoing profound changes.

“Internet, cloud computing, large data, artificial intelligence, machine learning, block chain, bio-genetic engineering and other new technologies to drive cyberspace from everyone to the Internet to the evolution of everything, digital, network, intelligent services will be everywhere,” the document stated.

With the “real” and the digital worlds’ increasing convergence, the global governance system is facing profound changes. The global economy is expected to accelerate information technology innovation, the maximum release of the “digital dividend”, in response to a “post-financial crisis” era of “growth instability and uncertainty,” the document further noted.

Technologies Cited Include Blockchain

The document also noted “new technologies such as quantum communications, future networks, brain-like computing, artificial intelligence, holographic display, virtual reality, large data cognitive analysis, new non-volatile storage, unmanned vehicles, block chaining, gene editing, etc.” will build a new game-leading advantage.

The development of the “real economy” is based on both technology and financial innovation, meaning the capital market should be further improved to encourage more venture capital investment to boost the country’s entrepreneurship and innovation.

New modes like crowd sourcing and crowd funding should be coordinated with mass entrepreneurship to boost innovation, the state council website stated.

Also read: China’s central bank will look to issue its own digital currency ‘as soon as possible’

Central Bank To Issue Digital Currency

China’s central bank, the People’s Bank of China (PBOC), announced earlier this year that it will make the necessary moves to work toward issuing a digital currency, as soon as possible, CCN reported.

A “special” research team put together by the PBOC was set up as early as 2014 to conduct research and look into all possible regulatory frameworks for the issuance of a nationwide digital currency and the impact it may have on the economy, the PBOC’s website noted.

The central bank engaged experts from Citibank and Deloitte to discuss the frameworks required for the issuance of a national digital currency.

Some of the stated benefits include:

  • Reducing costs incurred during issuance and circulation of traditional fiat currencies.
  • An increase in the transparency and convenience of economic transactions
  • The curbing effect on tax evasion, money laundering and other criminal acts.
  • Improve the central bank’s control over the money supply and circulation.
  • Breaking barriers to bring financial solutions for those unbanked in the country.

Some of the tasks set by the PBOC include the mandate of designing the proposed digital currency based on strong “economic, safety and service principles.”

Image from Shutterstock.

Chris Corey

CMO Markethive Inc

 

TP

The Biggest Influencers of Bitcoin Price in 2016

Can the surge continue? A review of bitcoin’s 2016 performance indicates the cryptocurrency’s fundamentals are such that the party is far from over.

With incoming U.S. President Donald Trump promising a fiscal spending binge that could push the $20 trillion U.S. debt even higher, the fundamentals that have served to more than double bitcoin’s price this year could deliver even greater gains in 2017.

A combination of events, beginning with bitcoin’s popularity as a hedge against increasingly volatile markets, set the stage for a repeat performance in 2017, if not better.

The cryptocurrency began 2016 trading at $428 and hit $928 by the end of December, a 114% gain. Growth was not uniform, but momentum accelerated in the fourth quarter. Bitcoin gained 25% in value since the beginning of December alone.

It was also the best-performing currency this year, outpacing the U.S. dollar and the Israeli shekel.

A Weak Beginning

The year did not begin on a positive note when Mike Hearn, a bitcoin developer, announced he was leaving bitcoin, claiming its fundamentals were broken and the long-term price outlook was negative. He claimed the system was controlled by a handful of people and the network was on the brink of collapse.

The market did not react favorably to Hearn’s pronouncements, which yielded the most damning media coverage the cryptocurrency had ever experienced. The price tumbled around 15% after his departure.

But recovery was evident by February. Some observers postulated that Hearn’s real motivation for exiting bitcoin was the lack of support for his solution to bitcoin’s scalability challenge, BitcoinXT.

Financial adviser Martin Tillier observed that the very issue that drove Hearn’s departure – the need for a more scalable bitcoin network – was the result of a very positive underlying fundamental – its growth as a currency.

Signs of bitcoin’s ability to hedge against other markets were already evident in late 2015. The price rose to just below $500 after the U.S. Federal Reserve Bank raised its fund rate by 25 basis points in late 2015. Bitcoin’s price tracked the U.S. dollar rally against other fiat currencies.

It didn’t take long for Tillier’s predictions to materialize.

Pricing Surge Began Early

The weak start of the 2016 stock market demonstrated bitcoin’s use as a hedge against more volatile investment options. Bitcoin was one of the few winning investments in the worst first week of the year for U.S. stocks in early January. The Dow Jones Industrial Average and the S&P 500 had their worst first weeks in history. Bitcoin, gold, the yen and natural gas were in growth modes.

The price in January surged over $20 in a 10-hour period to scale beyond $450.

The climb did not occur in a straight line, however.

After hitting a low of $360 in January, the price rebounded past $400 in February.

In another article, Tillier observed that bitcoin’s price hikes in previous years were mysterious, but the current one can be traced to the devaluation of China’s currency.

Because there is a logical reason for the price surge, the market is acting as a forward discounting mechanism and some degree of appreciation is now built into the price, Tillier noted. In addition, the interest from traders combined with the ability to short the currency allows the market to check upward spikes naturally, simply by attracting sellers.

The Scalability Factor

The network scalability issue remained a background theme.

In February, Bitcoin Classic released code that could double the bitcoin block size, offering a solution to the scalability issue. Bitcoin Classic, however, drew controversy within the developer community, which investors naturally noticed.

Those seeking to increase the maximum block size from 1 MB to 2 MB claimed that it is necessary to keep transaction costs down and continue the growth of the system.

Those against the increase said questions surrounding a hard fork, which can occur when non-upgraded nodes cannot validate blocks created by updated nodes that follow updated consensus rules, had not properly been addressed.

The Classic camp, consisting of entrepreneurs, wanted a more immediate fix to expanding the network by increasing the block size. The Core camp, consisting of miners, didn’t want to increase the block size since some miners would be less likely to earn mining rewards.

Mining pools representing at least 70% of the total hashing power of the bitcoin network and some of the largest bitcoin exchanges said they would not support Bitcoin Classic or any “contentious hard-fork.”

The release of the code for Segregated Witness in April, an upgrade to the bitcoin protocol designed to enable more transactions within a single block of the blockchain, pushed bitcoin’s price past $460. Segregated Witness fundamentally removes signatures from the transaction, thereby compressing transactions within blocks to leave more space for transactional data. This would serve as a less drastic, soft fork.

Market Forces Converge

The scalability debate did not undermine investor confidence and had less bearing on bitcoin’s price than its growing reputation as a safe asset in a tumultuous global market. Pricing activity was stable during February, March and April.

The U.S. Federal Reserve Bank’s 2016 rate increase announcement in March had little impact on bitcoin. Half the market passively accumulated via limit orders placed just below price while the other half actively sold at market.

The U.S. dollar, by contrast, weakened while but gold jumped nearly $30.

The Fed cited a weak global economy as the reason for its decision and forecasted two more hikes, fueling a desire for safe assets.

Global political events, meanwhile, worked in bitcoin’s favor, beginning with the June U.K. Brexit referendum. The surprise referendum sent markets reeling. After the U.K. pound (GBP/USD) dropped to $1.32, the U.S. dollar and gold rallied while bitcoin achieved a $140 one-day gain.

Around this same time, rumors indicated Steam, the global online gaming store and distributor, was preparing a bitcoin implementation as a payment method to its base of some 125 million active users.

In June, the price soared beyond $570, reaching a near two-year high.

A Setback Strikes

The climb was not over, but it was not uniform.

The price crashed in August after the Bitfinex exchange suffered a security breach that led to the theft of an unconfirmed number of bitcoins. The exchange announced it was shutting down its website in ominous signs reminiscent of Mt. Gox. The attack led some to believe the industry had not come up with a way to ensure security.

But the naysayers would again be proven wrong.

Bitfinex got back online after advising users that they would lose 36 percent of their assets. The exchange levied a 36% price on all of its users, whether or not they were victimized individually by the hackers.

The Bitfinex theft quickly sent bitcoin price tumbling.

Bitfinex delivered a blow, but the market began a gradual recovery that gained momentum as fall approached. Some viewed the Bitfinex episode as proof that the bitcoin network is capable of withstanding negative events.

The price struck a new yearly high of $794.39 in mid-December as the currency’s fundamental strength became evident.

Bitcoin gained more value than all other currencies in 2016, driven by China’s crackdown on the yuan, isolationist rumblings in the U.S. and the U.K, and increasing acceptance by consumers and businesses.

By the time the price surged 79 percent since the start of 2016 to $778, it reached its highest level since early 2014, data compiled by Bloomberg. At that point, bitcoin quadrupled the gains posted by Russia’s ruble and Brazil’s real, the world’s top two hard currencies.

Mining Reward Halving: No Impact

When the halving of the bitcoin mining reward occurred in July, there were no price drops. Bitcoiners celebrated worldwide.

There was concern about miner profitability since miner rewards were cut in half from 25 to 12.5 bitcoins.

But the price resumed its upward trend. One factor noted at the time was the devaluation of the Chinese yuan, driving Chinese investors to bitcoin.

China’s role in bitcoin trading has emerged as a key factor in is price performance. The country accounts for more than 90% of the cryptocurrency’s trades, and has become a natural hedge against the devaluation of the yuan.

In January 2017, the foreign currency cap imposed by the Chinese government for the amount of foreign currency that a Chinese citizen can convert ($50,000) will be reset for the new year. Inevitably, the surge in capital outflows could weaken the yuan further, setting off a market reaction that could lead to further demand for safe value assets, which bitcoin is fulfilling a role as.

What’s Ahead?

Central banks may give up on qualitative easing and negative interest rates, but they are far from being finished with intervention and distorting the allocation of capital and the price of money, according to Steen Jakobsen, CIO at Denmark-based Saxo Bank. Hence, bitcoin’s role as a hedge against volatile currencies remains intact.

Meanwhile, the Trump-promised fiscal spending binge is expected to add to the approximate $20 trillion of U.S. national debt, tripling the current U.S. budget deficit from about $600 billion to $1.2 trillion to $1.8 trillion.

Could the Donald Trump presidency push bitcoin price higher?

The spending could cause U.S. growth and inflation to skyrocket, forcing the Fed to accelerate its hikes and the U.S. dollar to soar to new heights.

This could create a domino effect in emerging markets and China in particular, leading people globally to seek alternative currencies and payment systems that are not tied to central banks.

If the banking system, as well other nations such as Russia and China, moves to accept bitcoin as a partial alternative to the U.S. currency and the traditional banking and payment system, bitcoin’s price could hit $2,100 and beyond as the blockchain’s decentralized system, an inability to dilute the finite supply of bitcoins, and low to no transaction costs gains more traction and acceptance globally.

Images from Shutterstock.Chart from BitcoinChart.

Chris Corey 

CMO Markethive Inc

 

Lester Coleman on 29/12/2016​

TP

Seven Reasons Salespeople Have The Best Job On The Planet

Chris Corey

Seven Reasons Salespeople Have The Best Job On The Planet

I took my first sales job at the ripe age of thirteen. I had been working at the same car wash company since I was eight years old. I started mowing their yard, and then at age 12 they let me vacuum cars. Mowing yards and vacuuming cars is no joke in the 100-degree Texas heat. While working the vacuums, I noticed the guy who sold the washes to the customers got to stay in the shade all day. This was very appealing to me.

After paying closer attention, I also realized the salesman didn’t vacuum or wash cars. He literally had the easiest job on the lot. It was in that moment I knew I was going to be a salesman. A year later, I made it a reality. Funny thing is, I had to really sell myself as a 13-year old capable of communicating to adults. When I closed the boss on it, I proved I was worthy.

Since that moment, I’ve been 100 percent convinced salespeople have the best job on the planet. Nowhere else can you make your own rules, your own money and do your own thing. In sales, it happens every day. I’ve made a list of the top seven reasons working in sales is where it’s at.

SIGN UP FOR E-MAIL UPDATES AND GET A DIGITAL COPY OF MY LATEST BEST-SELLER 'ELEVATOR TO THE TOP' FREE!!!

 

 

SUBMIT

#1: We Make Our Own Rules

Name another job where you can come and go as you please. I’m pretty sure there’s no other position where the employee is above management’s rules either. If you’re a good salesman, you can tell the manager to kiss your ass and they just might have to do it. 

When I worked at Texas Lending, casual Friday was the only day you could wear jeans. I wore jeans every day and even the CEO never said anything. Why? Because I made them $50-100 grand every month. Therefore, they let me make my own rules. It’s a pleasure only top dogs can experience. 

#2: We Have No Income Ceiling

I don’t know about you, but I don’t want anyone telling me what I’m worth. I don’t allow another single person to place value on my worth. Instead, I’ll go out and prove my value to multiple people. I’m the type of person, who, if you put a limit on my income, I’ll put a limit on the production I give you.

Earning what you are worth is way more fun than settling for a salary. Let the salaries go to the people who are afraid to take risks and live by a budget. We salespeople can blow all our money on Friday and make it all back on Monday. Take that HR!

#3: Our Clients Love Us

One thing I love about sales is there are other departments that deal with complaints. The only time we hear from our clients is when they thank us and tell us how much they love what we sold them. We don’t have to do anything but solve problems and close.

When you’re a Grade A problem solver, your clients love you. Who doesn’t love someone who helped them fix an issue? If there’s a problem, they still don’t complain to us. They take it out on the operations and support staff.

#4: Our Employers Love Us

When you make the person or company you work for a lot of money, they love you. It’s simple math. You + Sales = Happy Employer. Yeah, the boss may have taken Dorothy from accounting to lunch that one time she uncovered a huge error that saved the company, but he’ll take someone in sales out often.

I’ve never seen a manager or CEO walk into a company and high five the operations department. I have seen them take shots at 10am with the sales team, though!

#5: We Travel Often

When you’ve got the killer instinct and the company knows it, they want you to be the face of the enterprise any chance you get. This means when they have meetings, events, conventions and the like, you’re the go-to person. If they know you can sell, they will send you to tell.

They can’t send Dorothy and Harold off to some convention as the face. They need a salesperson to do that. Nobody buys from the accounting department. So, Harold and Dorothy can just stay behind at the office, while we salesmen handle the big boy business.

#6: We Meet New People Constantly

If you’re in sales and you’re not a people person, you’re not really in sales. You have to know and like people in order to sell to them. By liking people, I mean the idea of bonding and solving another human’s problem. Every day, we are looking for new people to meet. From cold calls to networking events to inbound leads, we are constantly meeting and helping new, cool people.

A good salesman knows that when you meet people, you ask those new people to introduce you to more people…AND repeat. New people are key to growing a sales pipeline. Getting to learn more people’s stories is exciting to most of us. It’s a blast to help someone with a problem and then convert them from stranger to client.

#7: We Have Connections Everywhere

No one calls Harold in HR when they need a hook-up somewhere. They call the guys down in the sales department for that. All those new people I mentioned previously come with connections—who are eager to help a salesman.

Plus, everyone wants to know a salesman they can trust. They know trustworthy salespeople also have other trustworthy salespeople in their network. When I was a LO, people asked me to connect them with car people, clubs and pretty much anything. They knew I knew people, that the people I knew were good.

CMO Markethive Inc

Chris Corey

RYAN STEWMAN | 1.10.2016

TP

Microsoft Announces Availability of R3’s Corda Blockchain Platform on Azure

Microsoft Announces Availability of R3’s Corda Blockchain Platform on Azure

R3’s blockchain software Corda, developed by the Fintech startup alongside 70 of the world’s biggest banks forming the R3 consortium, is now available on Microsoft’s cloud computing platform, Azure.

Announced quietly last week, the revelation comes soon after Corda’s code was contributed to the Linux Foundation-led Hyperledger Project on November 30. R3 first announced its decision to go open-source with Corda, the product of its Concord blockchain product, in October this year.

Elaborating on R3’s year-long development, Richard Brown, technology chief at R3 claims:

Corda is a distributed ledger platform designed from the ground up to record, manage and synchronize financial agreements between regulated financial institutions. It is heavily inspired by and captures the benefits of blockchain systems, without the design choices that make blockchains inappropriate for many banking scenarios.

Corda’s availability is the latest offering and addition of Microsoft’s blockchain services toolkit called Project Bletchley. First announced in June 2016, Project Bletchley is Microsoft’s endeavor to push for “an open, modular blockchain fabric powered by Azure.” Fundamentally, Microsoft is looking to provide comprehensive solutions with blockchain technology for customers on various platforms, as Blockchain as a Service (BaaS).

R3’s Blockchain Demo Available

Microsoft’s announcement includes a demo offering of Corda via virtual machine image. While this author hasn’t tried the demo prior to publishing, Microsoft claims the demonstration will showcase Corda’s capabilities through real-world scenarios such as interest rate swap deals. Details reveal that deployment will take 3-5 minutes for the virtual machine to be created, one which will deploy a multi-member Corda demo network. The demo isn’t charged, but usage of Microsoft’s resources including storage, networking and computing will be billed.

R3’s blockchain software Corda is now available on Microsoft’s clould computing platform, Azure.

Brown’s comments above point to a marked difference in the ‘design choices’ made by Corda compared to a public blockchain, like bitcoin’s ledger. These choices include developing the Corda blockchain platform within the confines of legal and regulatory frameworks, a focus on privacy and the means to achieve a modular consensus.

R3’s CTO added:

By making simple Corda demos available on the Azure Marketplace, R3 and Microsoft are making it easy for newcomers to experience Corda for themselves before joining the community.

R3’s efforts to push its blockchain product for wider adoption (with its notable call to go open-source) comes during a time when the New York-based startup is losing some of its notable banking members. The likes of Goldman SachsMorgan Stanley and Banco Santander have all decided to exit the consortium after a year’s membership.

Images from Shutterstock.

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Chris Corey 

CMO Markethive Inc

 

TP

Bitcoin Latency Solved!

Bitcoin’s Big Problem: Transaction Delays Renew Blockchain Debate

Bitcoin is facing a major problem as the time it takes transactions to be processed has increased dramatically leading businesses to stop accepting the cryptocurrency and others to issue warnings that the problems could be terminal.

The problem is not something that has come out of the blue with those within the bitcoin community as well as researchers pointing to this looming issue for some time. The problem relates to how transactions are processed on the blockchain, the decentralized, distributed ledger technology that underpins bitcoin.

The average time it takes for a bitcoin transaction to be verified is now 43 minutes, and some transactions remain unverified forever. Some of the problem stems from the fact that anyone can add a fee to every bitcoin transaction, which bumps that transaction up in the queue, meaning that those who didn’t pay such a fee — or didn’t pay a sufficiently big fee — may be waiting hours and sometimes even days for a transaction to complete.

This is how it works. When someone uses bitcoin to pay for an item in a shop, that transaction needs to be verified on the blockchain. This is done by what are known as miners, individuals or groups who use massive computing power to solve increasingly complex mathematical equations to mine new bitcoins, which come in “blocks” and are mined about every 10 minutes. These blocks are used to record all transactions made on the bitcoin network, and have a maximum size of 1 megabyte (MB), meaning they can record just seven transactions per second at most.

To put this in context, Visa says its payment system processes 2,000 transactions per second on average and can handle up to 56,000 transactions per second if needed.

The result of the slowdown in transaction clearance rates has led some businesses to give up on bitcoin completely while others are recommending users to switch from bitcoin to alternative cryptocurrencies like litecoin.

The problem grew so large this week that at one point there were 40,000 bitcoin transactions waiting to be cleared — though at the time of writing, that figure has dropped to under 10,000. This drop has mirrored a drop in bitcoin’s dollar value this week, going from over $917 on Friday to under $863 yesterday, according to Gemini's tracker.

The bitcoin community has split into two distinct groups over the past years. The first group is known as Bitcoin Core, the network’s volunteer developers who want to change the way the signatures are stored on the blockchain rather than increase the size of the blocks. The other is known as Bitcoin Classic, a group comprised of developers and enthusiasts who propose the adoption of an alternative blockchain (incompatible with the original) that would increase the block size to 2 MB, a move it believes would increase user adoption.

Bitcoin’s architecture worked well when it was not widely used, but with over 200,000 bitcoin transactions processed every day and a market capitalization of over $14,588,828,445, the system is beginning to creak.

The problem was flagged up earlier this year  by one of the main developers of bitcoin over the last five years, Gavin Andresen, who told MIT Technology Review at the time that the problem with bitcoin’s limited transaction rate "is urgent."

"Looking at the transaction volume on the bitcoin network, we need to address it within the next four or five months,” Andresen said.

Then last January, another core bitcoin developer Mike Hearn penned a widely read missive on Medium, which declared bitcoin a failure. “[Bitcoin] has failed because the community has failed,” Hearn said. “What was meant to be a new, decentralized form of money that lacked ‘systemically important institutions’ and ‘too big to fail’ has become something even worse: a system completely controlled by just a handful of people in China.”

These concerns were backed up last month with the release of a research paper from a large group of researchers mostly affiliated with Cornell University, titled “On Scaling Decentralized Blockchain.” The research suggests that bitcoin would need a complete redesign if it is to support a much larger network of users and transactions.

In a blog post this week, Andresen said that the block size limits are there to protect the network from attacks — and so far that method has been effective. He added that the current problems could be highlighting an underlying problem. “In my view, people are using the block size limit for something it was never meant to do — to influence how people use the bitcoin blockchain, forcing some users off the blockchain,” he said.

It is time for a new evolved enterprise solution.

Enter the impending launch of a new type blockchain that is a POS (Proof of Stake) in contrast to Bitcoins POW (Proof of Work).  A truly exponentially expanded distribution that has no latency and gets even faster as it grows.

The technology is in the phone apps, not big cumbersome Mining Computer systems.

And this prevents the density of miners in one area or country as Bitcoin is mostly mined in China. And there are many reasons to have concerns in that regard.

A new type of Blockchain coin that delivers a wallet that transacts all fiat and crypto currency, comes with a VISA debit card and is part of the POS system, thereby earning you money on an ongoing basis.

MCC (My Crypto Coin)

Launches January 10th on to all the exchanges, it will be exciting to watch how this progresses.  MCC is in the final days of a Crowd Funding where you could fund at any level and find yourself holding a fortune as a result. Do not delay. Come to our meetings. There are only a few days left.

To get going join our group in Markethive
https://markethive.com/group/cryptocoin

Thomas Prendergast
Founder and CEO
Markethive Inc.

TP

Bitcoin has had quite a month, rising from $725 to a high of $911 today.

Bitcoin has had quite a month, rising from $725 to a high of $911 today.

Part of what is driving bitcoin's price movement is the financial turmoil in China. A weakening yuan in combination with increasingly strict capital controls in the country have driven investor's capital out of mainland china and into bitcoin.

Likewise, since the Chinese government considers bitcoin to be a commodity rather than a currency, it is impervious to foreign exchange regulators – meaning that it is nearly impossible for them to limit its upside.

But, in my opinion, China is only one of numerous reasons bitcoin has been rising.

The Trump effect as well and his embracement of the Blockchain apparent in his cabinet appointments as Kim Dotcom has also predicted Bitcoin to hit $2000 next year giving Trump much of the credit.

But, with it breaking out to all-time highs now, it begs the question, how high can it go?

Let's look at the total market cap compared to other money and sectors.

Bitcoin is currently near $14 billion of total market cap.  If you multiply the total amount of bitcoins available (currently just above 16 million) by its current price you get its market cap near $14 billion.

At $14 billion, bitcoin has nearly the same market cap as silver.

But, when compared to Bill Gates, with a worth of $75 billion, bitcoin is still worth much less than the world's richest man.

When comparing it to companies, like Apple, the world's highest market cap company at $620 billion, bitcoin is still only worth 2% of the value of Apple.

And, compared to the total value of all gold in the world of $7.8 trillion, bitcoin is only 0.17% of that value.

Gold is likely the most similar item to compare bitcoin to.  Like bitcoin, it is a store of wealth and considered by many to be money.

And given the ease of use of bitcoin and how digital the world is becoming, it is fair to posit that at some point bitcoin may be worth as much as gold.

If that were to happen the price of each bitcoin would have to be valued at $487,500.

Another item that could be compared to bitcoin is the value of all fiat money in the world.  It is estimated, by the CIA Fact book, that there is about $28.6 trillion of coins, bank notes and bank deposits in the world.

If bitcoin were to replace all fiat currencies, something in which we speculate is certainly a possibility, the value of each bitcoin would be worth $1,787,500.

Will that happen anytime soon?  Of course not.  Could it happen?  Absolutely.

So, if you think you have missed the boat on bitcoin by not buying it earlier… there are plenty of reasons to think that it hasn't even begun yet.

 

Will Latency Slow Bitcoin Rise

Yes bitcoin has doubled in value over the past year, however as more people turn to bitcoin then more miners are required to ensure transactions are completed quickly. China has a large share in mining pools, however in the past months some of them have been shut down for stealing electricity to power the computers required to solve the mathematics which builds blocks in the blockchain. the longer it takes to produce blocks the slower the transaction becomes.

There has been talk of fork to update the blockchain but there is no consences for this. Implimentation might also prove challenging due to its widespread distribution which perversly adds to it security.

Waiting in the wings is a new coin Mycryptocoin (MCC), which brings together the best of bitcoin and ether, but using Proof Of Stake(POS) to replace mining as all coins will be allocated at launch.

Smart contract and application can be run on the blockchain. Owners walletscan hold MCC and these can be bought and sold within the wallets with links to all other ccyptocurrencies, bank accounts, cards and other payments systems such as paypal. Truly a one stop wallet complete with its own Visa card.

Are you interested to join a brave new world, if so you are just in time to join an Initial Coin Offering (ICO) cloud funding project which is about to close.

MyCryptoWorld, has a lucrative offer at the moment which is going to be explained TODAY

Take the first step now by joining me at  https://markethive.com/group/cryptocoin

Then remember to come to our webinar today at 12 noon MT on Friday 23rd December (Use http://www.timeanddate.com/worldclock/meeting.html enter Denver as location 1 and your own location to check your local time)

Join our live Webinars Every Day: For times and Webinar logins on go to the Markethive calendar: https://markethive.com/calendar

Direct access to our webinar room is at: https://www.ivocalize.net/#room/TheHive

Thomas Prendergast
Founder and CEO
Markethive Inc.

TP

Experts Predict Bitcoin Hits 1 Million Next Year

Experts Predict Bitcoin Hits 1 Million Next Year

We have the opportunity right now to take a very good risk to acquire results into the millions of dollars.

Here me out and come to our live webinars. Time is running out.

The lessons learned in business. Paying attention and seeking knowledge. Pursuing wisdom and mentors with wisdom and experience

Case in point, Bitcoin 2009, where were you?

You see back in 2012 when Bitcoin was trading around a penny, I was aware of the new revolutionary tech called Blockchain. Aware, but very ignorant. I had $50,000 invested in bulk silver coin and gold 1 ounce Maple Leafs. I was totally focused on the wrong preparations for the immediate future

I am a smart, experienced, entrepreneur and have been my entire life. I created and built Veretekk with nothing more than my visions, and my bare hands. There was no one before me to teach me. I joined UCSD’s Super Computer center to learn how to build the tools I envisioned and with the help of George Kremeneck and the partnership I built with Jeff Balmeo, we, laid the foundations, for what is now Markethive, the first off, Market Network (evolving from the Social Networks). I invented Inbound Marketing in the mid 1990’s Way way to early.

Markethive is a new wave technology, born from 20+ years of endeavor, innovation and dedication. It’s time has come. Why? And why am I discussing the summary history of and birth of Markethive?

Because it needed the Blockchain to morph into the most powerful social network what the pundits have identified as the new Market Networks that will dwarf the “Social Networks” and we are the first to produce one.

But Markethive needs a Blockchain to produce a shopping platform that every single human could utilize to build wealth regardless of nationality or residency. That is our mission, and MCC’s blockchain has given us the foundation to do it.

So, how in the world did I miss it in 2009-2012? I was not “Paying Attention” If I had paid attention, I would have liquidated my small holding of silver and gold, and purchased $50,000 worth of Bitcoin at less than a penny per coin.

Segway to the near completion of Markethive, discovering that Markethive was actually a Market Network, a new market to supersede the Social Networks, as has begun recognition of this new burgeoning  SAAS, Social Network, market platform predicted to eclipse the Social Networks and become the first Quadrillion dollar market.

Markethive (over 20 years in development) is ready to launch, as the new Market Network.

In that process we are seeking capital investors. And along came MCC, as this new emerging Blockchain company, they see the future and raw power potential in Markethive.

So James Wilfong and I talked about their investing into Markethive. We negotiated 5% of the Markethive stock for $5 million. This comes about in January after their ICO (Initial Coin Offer).

A few weeks after the negotiations I started really looking at the bitcoin market, educating myself, researching etc. As I did so, it started to form from the fog, that perhaps MCC (MyCryptoCoin) was more then I realized at first.

Now understand; as I did this research it dawned on me that back in 2008 when I started buying up Gold and Silver bulk coins (not collector coins) at around $800 per ounce. About $50,000 worth.

If I had paid attention to the Bitcoin revolution and bought the same amount I would have over $4.5 billion today. This caught my attention. I have seen a similar event with the Internet, but this is actually hundreds of times more intense. In fact, this trend (revolution) will likely be bigger than any other event in the history of mankind.

I started to realize that what MyCryptoCoin was doing was not just another coin, MyCryotoCoin’s DAO (Do you know what that is?), Their own Blockchain, their own proprietary Wallet, all developed with engineers that came from Bitcoin and Etherium, are about to launch the next level in this revolution. I call it bitcoin V2 and will address and solve the latency of Bitcoin, will give Markethive the ability to offer an Ebay type shopping platform that will allow all forms of live payment processing within 2nds.

Listen carefully, Markethive will be able to offer an Ebay type shopping platform that will accept all forms of payment. With MyCryptoCurrency over coming Bitcoins bottle neck of latency, transactions in crypto coin, fiat accounts (ACH), credit cards, 3rd party wallets like Payza, and Paypal will all be accepted with instantaneous transactions. Instant, no waiting (like) occurs with today’s crypto coins.

This is a substantial technical advancement that will both catapult Markethive becoming a trillion dollar Market Network, eclipsing LinkedIn (A social network) with monthly profits in the billions. Think I am kidding?

Fueled by MCC (mycrytocurrency) another huge disruptive company poised to launch, which I am convinced will eclipse Bitcoin, because they will be launching the “Latency” solution Blockchain, an advanced Wallet that solves the online Merchant Account issues and a series of other proprietary technology that will bring the CryptoCurrecy revolution into the main stream.

Did I mention? No I did not. Until the year end, we are offering you the option to purchase 3 million coins and $500,000 worth of Markethive stock for a ridicules low cost. We have other incredible packages that I can personally embrace as being one of those once in a lifetime events were you can leap from your financial level into wealth. Making literally millions even billions in dollars in profits.

I missed the first wave with Bitcoin in 2009 but I am firmly paying attention this time.

Come to the meetings! Do not miss this!
CHECK THE CALENDAR

Join our group
https://markethive.com/group/cryptocoin

Thomas Prendergast
Founder and CEO
Markethive Inc.

TP

Trump Picks Cryptocurrency and Blockchain Advocate as Budget Chief

Trump Picks Cryptocurrency and Blockchain
Advocate as Budget Chief

Bitcoin Caucus co-founder Mick Mulvaney is the US'
next Director of Office of Management and Budget.

It seems the election of Donald Trump could spell great news for American blockchain startups and cryptocurrency users. President-elect Trump has added to his cabinet an active and vocal supporter of cryptocurrencies and blockchain which means that there will be at least one powerful voice in the US government that will resist further efforts to legislate the technology into oblivion.

Trump picked Congressman Mick Mulvaney, Tea Party Republican, as his administration’s Director of Office of Management and Budget. He is considered a staunch fiscal conservative that wishes to drastically limit the federal government’s spending on social programs.

Just this September he was among the founders of the bipartisan Blockchain Caucus. Commonly called the Bitcoin Caucus by American media, it is meant to help congressmen stay up to speed on cryptocurrency and blockchain technologies, and develop policies that advance them.

Mick Mulvaney

“Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and I am proud to be involved with this initiative,” Mulvaney said in a statement back then.

Mulvaney is also a supporter of Coin Center, a non-profit research and advocacy center focused on public policy issues facing cryptocurrency technologies, which raised over $1 million earlier this year.

“For the past two years we have worked with Representatives Mulvaney and Polis to educate their colleagues through briefings and other events, and the new Congressional Blockchain Caucus will be a wonderful new platform to continue these efforts,” Jerry Brito, executive director of Coin Center said at the time. “Their forward-thinking leadership on blockchain technology in Congress is unmatched.”

 

Thomas Prendergast
CEO
Markethive Inc.

Join our Bitcoin Group. Time is running out.

https://markethive.com/group/cryptocoin

TP