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Bitcoin Could Be More Resilient to Global Electric Failure Than Banks

In a world without electricity and the Internet, Bitcoin would find alternatives to flourish, argues Andreas Antonopoulos.

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What if the world was hit with another major disaster, but this time, it included global electrical failure? Would Bitcoin (BTC) survive, would it thrive, what about the banks? — We have the answers.

Bitcoin consumes massive amounts of electricity and with the constant growth of the network, this number will only increase. The Bitcoin protocol relies on the internet for communication. Thus, if all of a sudden, if there was a disruption to the world’s electric grids, one might conclude that this would doom the cryptocurrency.

Bitcoin Energy Consumption Relative to Countries. Source: Digiconomist.

Bitcoin Energy Consumption Relative to Countries. Source: Digiconomist.

Bitcoin doesn’t need Internet

However, Andreas Antonopoulos disagrees. He believes that the decentralized nature of Bitcoin in combination with its ability to rely on alternative communication modes, would prove it much more resilient than the traditional banking system:

“In fact, I would predict that if we did have a massive electric failure or natural disaster that damaged infrastructure such as the Internet or the electric grid, Bitcoin would be one of the first things to come back. And the reason for that is because not only is Bitcoin a self funding system, but also because of the decentralization of users, node operators and miners who would have many, many incentives to rebuild local infrastructure in a very decentralized way. Remember, Bitcoin doesn’t need the Internet in order to exchange transactions and blocks.”

Furthermore, Antonopoulos points out that Bitcoin could rely on satellites, radio, or telephone lines for communication, instead. In his opinion, Bitcoin would be the first one to rebound. Whereas for the global financial system to bootstrap itself from the ground up in a world without reliable electric grids, that would likely take months, if not years.

Governments can destroy price, not Bitcoin

Antonopoulos believes that political attacks present a much more imminent danger to Bitcoin, especially the “sneaky” ones:

“I am worried about political attacks, especially sneaky political attacks, like changing the tax status of cryptocurrency in order to drive it underground. And I do think that such a tax could alienate a big chunk of the middle class and speculative investors who will not take the risk to oppose the government in order to use Bitcoin.”

However, he concludes that although this would affect the price and hamper adoption, it would not destroy the “system”:

“The price can be attacked in many different ways. And those attacks can drive the price down quite dramatically and perhaps, even for extended periods of time. But they will not change either the monetary fundamentals or the technical operation of the network.”

Bitcoin has long since proven that its system is robust. In 11 years of operation, the network has seen zero downtime.

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KuCoin to Implement Chainalysis KYT for Enhanced Compliance and Security

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The IDG-backed KuCoin crypto exchange platform has announced its partnership with blockchain analysis company Chainalysis to further enhance the platform’s compliance and security. The partnership is part of KuCoin’s commitment towards promoting compliance-first business practices in the crypto industry as it will be integrating the Chainalysis KYT (Know-Your-Transaction) software to detect and prevent suspicious and illicit transactions on the platform.The KYT software is designed to work in real-time, flagging potential money laundering or other illegal transactions on the blockchain. It also enables further investigation of such transactions with the help of Chainalysis Reactor. The new integration works along with KuCoin’s own fraud monitoring and early warning systems to ensure strict compliance and security of user’s digital assets on the platform.Announcing the latest development, the Global CEO and Co-founder of KuCoin Johnny Lyu said, “We teamed up with Chainalysis to create a safe and compliance trading environment. Through KuCoin’s efforts, the crypto world will combat illegal activities, such as laundering money and financing terrorism.” He further added, “Although KuCoin has already deployed in this aspect, we hope to further strengthen out technical expansion into compliance with our cooperation with Chainalysis. Not only does it provide infrastructure to the blockchain ecosystem, but it also meets regulatory compliance requirements across different countries and regions.”“Chainalysis is thrilled to partner with exchanges like KuCoin that prioritize compliance and the safety of its users,” said Jason Bonds, Chief Revenue Officer, Chainalysis. “Our relationship with KuCoin is also an example of our continued commitment to working with leading exchanges in the Asia Pacific region, an important hub of cryptocurrency activity.”KuCoin offers a suite of financial services including fiat-to-crypto, crypto-to-crypto, futures, staking, borrowing, token launch, and more. It has over 5 million users from over 207 countries and regions around the world. On the other hand, Chainalysis serves as a strategic partner to various financial institutions, governments, and crypto businesses around the world. The Chainalysis KYT offering enables compliance teams to monitor large volumes of crypto transactions and identify high-risk transactions, thereby facilitating the implementation of global AML standards in the cryptocurrency space. Source: https://www.newsbtc.com/2020/06/02/kucoin-to-implement-chainalysis-kyt-for-enhanced-compliance-and-security/?utm_source=rss&utm_medium=rss&utm_campaign=kucoin-to-implement-chainalysis-kyt-for-enhanced-compliance-and-security

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MoneyGram Receives Takeover Offer from Western Union

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According to an article that Bloomberg posted on the 1st of June, the global payments giant, Western Union, has made a takeover offer for Moneygram. Should this be successful, it would stand to combine two of the largest money-transfer companies within the US.

MoneyGram Buckling Under Pandemic Pressure

Many businesses have been forced to close off due to the COVID-19 pandemic and the many lockdowns and shelter-in-place orders that were given out as a response. MoneyGram itself was also affected by this, being forced to close off its local branches.

However, the number of digital transactions taking place has risen immensely due to the fact that everyone needs to stay at home. Even so, they only accounted for 18% of the money transfers within Q1 2020, according to Bloomberg. Even after the company partnered up with Ripple back in 2019, MoneyGram was forced to report a “quiet” first quarter for 2020

A Bit Of A Leak

This information was revealed by a person familiar with the matter, according to Bloomberg. This anonymous individual asked for their identity to be hidden from the public, due to the fact that the matter hasn’t been made public yet. This source explained that no decision had been made yet, but Western Union could opt to push on with its takeover without a deal, as well.

As one would imagine, neither company gave comment at a private matter being leaked.

MoneyGram, compared to Western Union, is but a small fish, with its stock price closing at $2.59 a share. This gives MoneyGram a market value of $164 million, but also holds approximately $878 million in debt. Western Union, by contrast, has its stocks being traded at $20.71 per share, totaling in the market value of a staggering $8.5 billion.

A Small History

Ant Financial Services Group, one of China’s financial services conglomerates, had also made plans to acquire MoneyGram. This occurred back in 2017 but was subsequently abandoned after the agreement was made. This is due to the fact that the national security regulators of the US had started to push back against the idea, in fear that the China-based conglomerate would leverage its position in order to compromise the security of US citizens.

As it stands now, it’s unclear whether or not this deal will come to fruition. This is especially so due to the companies not having planned to reveal it to the public, but it leaking out regardless. Either way, the world’s at a very turbulent time, and with hope and luck, things will improve.

Source: https://insidebitcoins.com/news/moneygram-receives-takeover-offer-from-western-union

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Bitcoin Hits above $10k and Appears Strongly Bullish in the intraday

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Bitcoin price hits above $10k yesterday, just at the onset of the month after an almost flattish trend in the previous month. Moreover, the currency in the previous month was trading on a mixed note and had breached above $10k briefly in the first week of the previous month. Just when the price of BTC had hit above $10k momentarily in May 2020, we also saw an immediate price dump in the same week when the Bitcoin price retested the support around $8.1k.

However, it was just yesterday when the BTC price touched above $10k after almost 30 days of pullback and the global crypto exchange, Coinbase with massive networkers on board went offline. Moreover, it has not been once that Coinbase lost its network in the nearest time. We have heard many instances from the recent past about the crashing of the exchange at an imminent point of time. However, for crypto traders, there happens to be no fixed time when the market is open, and the traders can trade. Since the market is open 24*, the traders do not afford to lose any instance of missing the right opportunity to long or short.

But, the crash of Coinbase is something that may trigger a lot of networkers. This takes us to raise questions such as any spam activity or any whale movement, thereby on the exchange, which has led to the crash of the system or a technical glitch?

Moreover, it was just towards the end of the previous month when the massive investment bank, Goldman Sachs has commented, “Cryptocurrencies including Bitcoin are not an asset class,” to which many crypto proponents commented that it is much more and in that lieu, many commented that it is a sovereign currency.

One of the BTC Whales, Changpeng Zhao, CEO of the globally renowned crypto exchange Binance considers Bitcoin as sovereign currency, and he also publicly tweeted about the same. To everyone echo doubts the capability of what Bitcoin is and what it can do, it is simple yet complex—Bitcoin is power that is likely to drive the entire financial system if centralized with stated norms and regulations.

Bitcoin Price Analysis

Bitcoin News

BTC/USD Chart By TradingView

On the 4-hourly chart, Bitcoin exhibited a steep rise above $10k against the US Dollar and was trading above $10k at the time of penning down. While its intraday recovery, it took at stall around the major resistance of $10.5k at $10,443 and pulled back at the beginning of the day, today. BTC is retaining steady support from 50-day and 200-day MA against the greenback and is ready for an amazing month after a flattish and mixed momentum throughout the previous month.

The technicals of Bitcoin are hitting the bullish extremities, and the MACD is crossing above the signal line, and the RSI already hints about the increasing demand of the crypto as it lies at 69.78.

Source: https://www.cryptonewsz.com/bitcoin-hits-above-10k-and-appears-strongly-bullish-in-the-intraday/

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