World Powers Move to Establish Cryptocurrency Safeguards

There is a new objective led by a partnership of 30 nations that have combined their efforts to put a system in place that targets suspicious cryptocurrency transactions to try to prevent financial fraud, money laundering and terrorism. This project would be upheld by the Financial Action Task Force (FATF) and would record and collect data on individuals who perform cryptocurrency transactions, according to the Nikkei Asian Review. The nations backing this project include the G7 nations, Australia and Singapore.

The FATF’s 30 nations have taken a pledge to regulate cryptocurrency transactions, including a call to monitor all crypto activity by reporting suspicious behavior, collecting and distributing crypto-user information to various platforms.

These regulations come in light of widespread belief that cryptocurrencies uncover a threat to global finance as we know it, especially with the release of Facebook’s Libra on the horizon. To respond, the G7 nations are calling for strict responses to suspicious behavior to prevent money laundering and terrorist endeavors. These regulations seek to bring a new era of stability to the crypto space that will relieve hesitation towards its adoption.  Additionally, the FATF assigned Japan permission to be the frontrunner in an effort to create a global crypto payment system that also is committed to squashing money laundering efforts and making just crypto transactions.

Signs of Economic Downturn Indicate Possible Fuel for Bitcoin: What Investors Need to Know

Recent weeks have triggered fears about the possibility of an upcoming global financial crisis. Between Trump’s trade sanctions on China, the stock market hitting year-to-date lows, and the bond market flashing a recession warning, more and more investors are turning to Bitcoin as their safe haven asset.

Earlier this month, China devalued the Yen against the dollar after Trump threatened another 10% tariff on Chinese imports, according to Markets Insider. The decreased value of the Yen and increased tensions between China and the U.S. then became part of the U.S. stock market plunge to the lowest index all year.

The recent plummeting of the stock market has sparked widespread fear that the economy is approaching another recession, especially as last week’s bond market produced an inverted yield curve. What does this mean? Short term bonds are currently returning more than longer term bonds, which is a bad indicator for the current state of your dollar within banks nationwide– they need more money, fast.

What’s the big deal? The sheer fact is that every recession since 1956 has been preceded by an inverted yield curve in the bond market.

So, what happens next? Financial armageddon? There is still hope. These recent events are potential rocket fuel for Bitcoin and cryptocurrencies to thrive off of. As the Bitcoin network grows, it is becoming less and less correlated with the U.S. dollar, and more correlated to safe haven assets like gold, as it has been over the past 100 days, according to Markets Insider. As Investors are being turned away from potential losses within the stock market, they seek an asset that they can depend on, and trends seem to be pointing more towards Bitcoin as a long-term store of value.

In the midst of fears for the worst, Bitcoin continues to push new highs even after the July scare of U.S. crypto-regulation that dropped Bitcoin 18%. In the past two weeks, Bitcoin has recovered back to $12,000 twice and continues to test bullish resistance marks.

As Bitcoin continues to test the market to find a price and value that investors are comfortable with, the asset is becoming more of a widespread store of value, which looks like a promising idea after the recent interest rate cut by the Fed that took value away from the future of your dollar.

What You Need To Know About Bitcoin Temerity

Life in the cryptocurrency space wouldn’t be complete unless its users had the temerity to make high valued cryptocurrency transactions. Temerity means “excessive confidence or boldness,” which is the HODLER’s manifesto and the attitude of most cryptocurrency evangelists. In this article, we will be discussing the intricacies of Bitcoin transactions.

Transactions for Bitcoin are capped at 1 mb per block and will stay that way for the foreseeable future. There is additional capacity to accept more transactions through a soft fork called Segregated Witness. However, Bitcoin has run up to its physical transaction limit on layer one, blockchain, and is looking for its answer to scaling problems in layer 2, which would be through a lightning network. So, how does one know that Bitcoin transactions are exhibiting more temerity?

Below are two charts—the former emphasizing that Bitcoin has reached its limit for the transactions it can handle and the latter emphasizing transaction temerity from its users.

Layer one: blockchain transactions

Bitcoin temerity of its users

Bitcoin temerity from its users is at an all-time high and operating at its maximum transaction capacity. Likewise, the price and security for Bitcoin has also been shooting up from the lows of $3,200 in December to the current price of $10,015 (8/15/19 at 11:15am) and the security of the Bitcoin blockchain (hashing power) just passed its all-time high of 80 exahashes.

Now the question to ponder: Is Bitcoin’s increased transaction volume and temerity due to the increase in Bitcoin price and security? Or did the recent rise in Bitcoin’s price and security cause the transaction volume and temerity to increase?

Please, let me know your opinion on this chicken and egg problem in the comments below.

New Libra Competitor, Venus: Ecosystem of Stablecoins to Emerge?

On August 19th, Binance, the world’s leading crypto exchange, announced that it will be releasing a new blockchain project: Venus. Venus is Binance’s initiative to build a compatible ecosystem of stablecoins that will place the currencies of both developed and developing countries on an equal playing field.

Aimed to rival Facebook’s Libra coin, Venus is a progressive cryptocurrency call-to-action. Venus has the power to unify the digital currency world through its objective to “build a new alliance and sustainable community” on one local platform by partnering governments with powerful corporations, tech giants, and top crypto firms, according to a Cointelegraph article on the project.

Venus attempts to solve value variances and inflation throughout world economies through its stablecoin platform. As an ecosystem of stablecoins, the public chain technology that supports Venus allows for cross-border transactions that will allow for the implementation and development of new stablecoins that can be used anywhere the Venus project is supported.

Venus has the potential to unify the world and its economies as we know it. Although there is a disparity between the world’s richest and least developed countries, the development and implementation of stablecoin cryptocurrencies is actually beneficial for empowering the poorest among us. There are millions throughout the world that have limited to no access to modern technology, but equipping a poor population with assets of any kind provides them the opportunity to develop a financial identity, even if it is through their paper wallets. While there are several hurdles to address before total technological and financial equality becomes a reality, the Venus project provides a first step and a further call-to-action to lessen the global tech disparity.

The announcement of Venus is exactly what the objective behind the blockchain movement is all about: financial freedom and equality. “Financial inclusion is important for reducing poverty, by allowing people to manage savings, receive loans, and build credit,” claims Angela Rastegar of Hackernoon. This blockchain initiative gives the least technologically advanced a new hope for economic and financial freedom.