Wednesday, July 10, 2019

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📌 U.S. Considers Halting Libra, Holiday Crypto Trends, and Dogecoin Surges

 MUST READS 

Fed Chief Calls for Facebook to Halt Libra Project Until Concerns Addressed


Facebook is facing a growing chorus of doubts about its new Libra cryptocurrency project from authorities around the world, ahead of two congressional hearings on the initiative next week.

Today, the chair of the Federal Reserve, Jerome Powell, said Libra raised a host of "serious concerns" around "money laundering, consumer protection and financial stability."

Additionally, this week Epsilon Theory went in on the this whole Libra thing. Here is the best counter argument to everything you've heard about Libra being good for Bitcoin.
 

Bitcoin, Holidays, and FOMO


Market-wide data analysis suggests that Bitcoin may exhibit a specific, FOMO-influenced pattern of behavior around major holidays...
 

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 DEEP DIVE 

The "Coinbase Effect" is Back With a Bang


The "Coinbase Effect" is back.

The term describes what happens when to the price of a cryptocurrency after it's been listed on the San Francisco-based crypto exchange Coinbase. Though Coinbase isn't the biggest exchange by volume, it has enormous visibility and respectability, especially among U.S. retail investors.

The most recent beneficiary of the Effect? Chainlink (LINK) – a project that was, by the way, highly anticipated from one of our favorite crypto thought-leaders.
 

The Nature of Cryptocurrency Markets: An Analysis of 3 Trend-Based Strategies


In the absence of generally accepted valuation models, more and more BTC price movements observed are due to speculation and trends... as opposed to actual utility.

Here are 3 solid trend-based BTC trading strategies to keep in mind. (TL;DR version here)

Fair warning: As the nature of the crypto market evolves, these strategies could actually do the opposite. Just be careful, everyone.
 

Blockchain 2019 Cryptoasset Investment Thesis


Blockchain just released their 2019 Cryptoasset Investment Thesis. They offer answers as to why billions of people do not yet own crypto, and examine the factors driving crypto adoption.
 

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 REGULATORY FRONT 

Regulatory Overview of Crypto Mining in Different Countries


While the bitcoin mining space has marched on over the last two years, regulatory moves can still hold sway over the use of cryptocurrencies around the world.

This overview from Cointelegraph takes a deeper look at the major countries that have extensive cryptocurrency mining activity and the stances they have taken over the past few years toward the emerging industry.

Need a refresher on mining in general? Here's a recently published crypto mining 101.

 

Cuba Eyes Cryptocurrency as Solution to Sanctions, Financial Woes


Cuba has announced it is considering the use of cryptocurrency to bolster its finances. They intend to use crypto as part of a package aimed to boost incomes for as much as a quarter of Cubans, and assist with market reforms.

Sounds familiar? It almost feels like Cuba may be taking notes from Venezuela and their "petro" cryptocurrency. Consider us skeptical. 😐

 

🏛️ Bill to Provide "Safe Harbor" for Crypto Fork Taxpayers Reintroduced in Congress


A bill aimed at alleviating the tax burden of cryptocurrency investors was reintroduced yesterday by U.S. Congressman Tom Emmer.

The so-called "Safe Harbor for Taxpayers with Forked Assets" bill attempts to bring tax clarity around hard forks. As the name implies, the bill will provide a "safe harbor" for taxpayers when their assets are forked, meaning they won't have to face penalties if they don't pay taxes on forked assets correctly.

This is round two for Emmer, who first introduced the bill in 2018.

 

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Market Watch: The market is red across the board and no coins in the top 22 by market cap have had a positive change over the past 24 hours. 

  • Bitcoin: $12,234.04 (⬇️ 2.59%) // $217.89 billion market cap.
  • Ethereum: $286.69 (⬇️ 7.91%) // $30.63billion market cap.
  • XRP: $0.36 (⬇️8.25%) // $15.44 billion market cap.
  • Litecoin: $107.92 (⬇️ 7.21%) // $6.92 billion market cap.
  • Top 100 Winner: Bezant: $0.09 (⬆️ 106.11%) // $68 million market cap.
  • Top 100 Loser: MadeSafeCoin: $0.16 (⬇️ 17.09%) // $76 million market cap.

Prices are as of 1:46 pm EDT.

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1. In a letter to the Senate Banking Committee on Monday, David Marcus, the head of Libra, stated that Facebook will respect the privacy of its users and personal data would not be attached to transactions. Marcus wrote, "Similar to existing and widespread cryptocurrencies such as Ethereum and Bitcoin, transactions that take place directly on the Libra Blockchain are 'pseudonymous,' meaning that the user's identity is not publicly visible. Regulators of Calibra and other digital wallet services can require them to collect information about the identity and activities of their users and make such information available to law enforcement and regulatory agencies, such as for AML, CFT [counter-financing of terrorism], and sanctions purposes." - COIN DESK

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2. Fed Chairman Jerome Powell said to the House Financial Services Committee on Wednesday that Libra raises serious concerns that include money laundering. Powell said, "Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability. These are concerns that should be thoroughly and publicly addressed. We do support responsible innovation in the financial services industry as long as the associated risks are appropriately identified and managed." Powell also said that his agency is working with other regulators and central banks around the world to work on a consensus regulatory framework regarding Libra. - CNBC

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3. South Korea's financial regulator said Libra could cause instability in worldwide financial markets. The nations' Financial Services Commission took a look at would happen "if 2.4 billion Facebook users worldwide transfer one-tenth of their bank deposits to Libra." The results were that banks' liquidity and solvency would diminish, as well as their loan reserves, causing a threat to emerging nations. The report stated, "If a company such as Facebook buys a bond instead of making a bank deposit with customer funds, the financial condition of the bank may be worsened." - COIN DESK

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4. Peter Van Valkenburgh from Coin Center wrote about the difference between Libra and Bitcoin. 

Bitcoin: purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.

  • Basis of Value - Economic Scarcity
  • Read access to the ledger: Public
  • Write access to the ledger: Permissionless

Libra: The goal of the Libra Blockchain is to serve as a solid foundation for financial services, including a new global currency, which could meet the daily financial needs of billions of people.

  • Basis of Value - Trust in Issuer
  • Read access to the ledger: Public
  • Write access to the ledger: Permissioned - COIN CENTER

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5. Some in the tech industry are doubting Libra will launch in 2020. Bismarck Lepe, CEO of Wizeline, said, "I think two years from now we're going to be like 'Do you remember that Facebook thing? Libra?' Anuj Nayar, financial health officer at LendingClub​​ said​​​​​, "While the innovation in Libra certainly has potential, we should expect increased scrutiny not just from the federal government, but at the state level too, not to mention regulators in many markets outside the U.S." Charley Moore, CEO of Rocket Lawyer, stated, "To successfully launch Libra and Calibra, Facebook will have to overcome numerous financial regulations regarding anti-money laundering, money transfer, securities, and data privacy." - CNBC

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6. Tyler and Cameron Winklevoss may work with Mark Zuckerberg as the Winklevosses' crypto exchange Gemini may join the Libra Association. Tyler said, "Our feeling is, this is the first of many FANG [Facebook, Amazon, Netflix, and Google] companies to have a token project. Our prediction is in the next 24 months almost every FANG company will have a coin or be working on some sort of project." Having the Gemini exchange join the association would back what Libra wrote in its whitepaper saying a competitive network of exchanges buying and selling Libra would create more liquidity and enable holders to more easily convert the coin. - COIN DESK

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Written and curated by Darren Webb. He created Currencylists and has worked in marketing roles for a multitude of cryptocurrency and blockchain projects since 2014. Based in NYC, Darren loves to read and continue to learn about cryptocurrency and emerging technology in his spare time. You can find him on Twitter @Dwebbny.

Editing team: Kim Lyons (Pittsburgh-based journalist and managing editor at Inside), David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology), and Bobby Cherry (senior editor at Inside, who's always on social media).

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