BIS has long taken a cautious approach

Bitcoin (BTC) and other cryptocurrencies have been regarded with suspicion by the Bank for International Settlements (BIS) for a considerable amount of time. According to the BIS, however, there is no longer any need to exercise care since the “war has been won” between fiat and cryptocurrency.

In an interview with Bloomberg, the general manager of the BIS, Agustn Carstens, who is responsible for making the assertion, emphasized that “technology does not make for trustworthy money,” among other objections of cryptocurrency.

The Bank for International Settlements (BIS), which serves as the central bank for central banks, has emphasized the need for regulation and risk management in the cryptocurrency space. However, the BIS’s assertion that the battle between cryptocurrencies and fiat currencies has been won sparked outrage, satire, and corrections within the Bitcoin and cryptocurrency community.

“Want to irritate those fools to no end? Ignore their fear, uncertainty, and doubt (FUD) bait and put all of your attention on what’s occurring in the global south and on the streets of Nigeria.

In the meanwhile, Lady Anarki, an advocate for Bitcoin who recently shut down a firm that provided Bitcoin Security Education, said that “fiat and crypto are fundamentally the same exact swindle.”

“In the case of fiat currency, it is a group of wicked elite oligarchs who are building a rigged game system in order to benefit themselves at the expense of everyone else. Bitcoin is a system that was created with incentives and good economic concepts in mind, and it is meant to empower anybody who contributes value to the world.

As Carstens said, this is another another allusion to the fact that Bitcoin has been proclaimed dead, dead, and dead again. It is also a reference to the reality that Bitcoin lost the “battle” for money. The bear market in 2022 and 2023 is not going to be any different, and Bitcoin supporters on Twitter have been quick to embrace the chance to ridicule financial gurus who are dancing on the fictitious grave of the decentralized currency.

Despite this, Bitcoin has gained more over forty percent from its lows in 2022, and adoption of the Lightning Network is thriving as the community looks to be becoming more outspoken.

This week, the Bitcoin Information Service (BIS) issued another incendiary remark, and the famous podcast What Bitcoin Did, which is hosted by Peter McCormack, tweeted some helpful numbers to rectify the statement. Notably, the BIS said that “almost all economies incurred losses on their Bitcoin holdings” between August 2015 and December 2022. This is an important point to note.

In spite of the BIS’ best attempts to the contrary, it seems like the price of bitcoin will continue its upward trajectory.

The Bank for International Settlements (BIS) has been an outspoken opponent of cryptocurrencies, expressing worries about the volatility, scalability, and energy consumption of these digital assets. In contrast to Carsten’s statement in the Bloomberg interview that “technology does not make for trustworthy money,” the BIS has conducted research on stablecoins and is leading the creation of central bank digital currencies in conjunction with numerous nations.

Willem Middelkoop, an author and enthusiast for Bitcoin, recently emphasized that the conflict between fiat currencies and cryptocurrencies is not yet resolved. If one were to skim over the comments on the initial tweet from Bloomberg Crypto, one would get the impression that the conflict is just beginning to heat up.


Tagged : / / / / / /

The United Kingdom Tax Reform Council Launches Campaign Against Bank of England

The United Kingdom Tax Reform Council has begun a campaign in opposition to the idea of the Bank of England to develop a digital currency that is controlled by the central bank (CBDC). The charitable organization issues a warning that such a step might pose a significant threat to the privacy of individuals and result in modifications to the taxation system that are too invasive.

On the advisory board of the recently established Tax Reform Council is monetary economist John Chown, who was also instrumental in the establishment of the Institute for Fiscal Studies. The Tax Reform Council is of the opinion that the implementation of a CBDC would result in an increase in the level of government monitoring, a larger level of intrusion by tax officials, and an increased danger of cyberattacks on the monetary system of the country.

The think tank is concerned about the same things as the Bitcoin (BTC) community in the United Kingdom, which has been quite outspoken about its opposition to CBDCs.

The co-founder of the Bitcoin Collective in the United Kingdom, Jordan Walker, said that “the deployment of CBDCs in the United Kingdom is risky on a number of fronts.” If we did this, the government and the central bank would have a greater degree of influence over our monetary system.

“This binds the monetary system even closer to the political system, which is a system that has produced big issues in the past and that continues to bring considerable problems in the present. Instead, we need to make it our goal to keep money and politics completely distinct.

“the choice of the Bank of England to pursue a British CBDC poses a number of very significant issues,” as noted by the advisory board economists, who include Patrick Minford, Julian Jessop, and Chown. The goal of the organization is to educate people about the potential for “greater government monitoring” offered by CBDCs.

CBDCs make the claim that they can improve financial inclusion, lower costs for both firms and consumers, and boost consumer and employee safety. Bitcoin, on the other hand, already provides these benefits and many more: By passing the Bitcoin legislation, El Salvador was able to bank large portions of its population, and Bitcoin also gives a path to freedom for those who are now living in oppressive regimes.

Both the Treasury and the Bank of England in the United Kingdom have been conducting recruitment for CBDC posts. In spite of opposition from the wider crypto community, the Bank of England has emphasized the “need” to develop a digital counterpart of the British pound.

According to the Tax Reform Council, every personal transaction carried out with the use of a CBDC would be logged on the private blockchain ledger maintained by the Bank of England. This would provide the tax collector with unparalleled access to the individuals’ financial histories. According to the press release, this is something that has already begun to occur in China with the renminbi CBDC.

Walker raised the alarm, stating, “I believe we are closer to the rollout than many realize, and until we have more education around this issue, we’ll see many individuals in this nation become dragged into this computerized monetary tyranny without ever realizing it.”


Tagged : / / / / /

The Importance of Community in Bitcoin’s Success

Although Satoshi Nakamoto is credited with being the anonymous creator of Bitcoin (BTC), what frequently goes unnoticed are the altruistic contributions made by members of the Bitcoin community, such as miners, developers, designers, hodlers, and investors, which help make the original vision a reality. Nevertheless, it was discovered that one of these substantial contributions had concealed a defect for more than a decade that was not obvious to the human eye.

On November 12, 2010, a member of known as bitboy (not to be confused with the YouTube user known as BitBoy Crypto) shared the vector files of the now-iconic Bitcoin logo, which is well recognized all over the globe. Zooming in on the original Bitcoin logo reveals that there is a thin orange line running from the background into the white colored “” in the middle of the design, whereas Bitcoiners preach the “zoom out” narrative during bad times in the cryptocurrency market.

The disclosure does not have any effect on the functioning of Bitcoin, and members of the community have not expressed any worry over it. Even if anyone were to generate new vectors after resolving the faults, it would not become widely accepted until the community as a whole thinks that it should.

CleanSpark, a Bitcoin mining company, is continuing to acquire equipment from mining firms that are in financial difficulties even as the markets maintain a good trajectory toward recovery.

According to Gary Vecchiarelli, chief financial officer of CleanSpark, the firm plans to achieve “explosive growth” in 2023 via a combination of mergers and acquisitions.

“With regard to our strategy regarding M&A, we have been one of the most active miners to date in purchasing infrastructure and machines, and we will continue to be active,” he said. “We have been one of the most active miners to date in acquiring infrastructure and machines.”


Tagged : / / / / /

Billionaire Ray Dalio believes that fiat is in jeopardy

Although the billionaire Ray Dalio feels that fiat currency is in danger, he is also of the opinion that neither Bitcoin (BTC) nor stablecoins are the solution to the problem. As a kind of reaction, individuals of the cryptocurrency community have taken to Twitter to share their thoughts on the matter.

During a recent appearance on the show Squawk on CNBC, Dalio was asked about his thoughts on Bitcoin as a possible solution to the issues that are caused by fiat money. The billionaire claimed that it would not be useful as a means of commerce or as a place to keep riches. In addition to this point, Dalio emphasised that stablecoins are only imitations of state-backed currencies and hence would not be an efficient form of currency.

Bitcoin users were quick to reply to the interview, stating that Dalio’s definition of what money should be is already reflected in Bitcoin. Additionally, a Twitter user identified many intrinsic properties of Bitcoin and pointed out that it provides the answer Dalio is seeking for. A member of the community tweeted: One member of the community believes that Bitcoin is the solution to the monetary issue that Dalio outlined because of the cryptocurrency’s resilience to censorship, neutrality, openness, limited supply, and freedom from control.

While this was going on, a different member of the Bitcoin community said that Dalio had “orange pilled” them with his views on the history of money. The opinion of the Twitter user is that the interview demonstrates that the billionaire is getting closer and closer to “really understanding Bitcoin.”

His view on Bitcoin has traditionally shifted back and forth between bullish and bearish for Dalio. In 2021, he moved from characterising Bitcoin as “one heck of an innovation” to adopting a more pessimistic storyline, during which he discussed the possibility of a ban on Bitcoin being enacted in the United States and said that he would prefer gold over Bitcoin as a medium of exchange.

In 2022, the billionaire advocated for an allocation of between one and two percent of investor portfolios to Bitcoin. Back then, Dalio lauded Bitcoin for its resistance to hackers and said that there is no other cryptocurrency that can compete with it on the market.


Tagged : / / / / / /

The launch of a nonfungible token protocol on the Bitcoin mainnet

The cryptocurrency community is currently split on the question of whether the recent implementation of a nonfungible token (NFT) protocol on the Bitcoin mainnet would be beneficial to the Bitcoin ecosystem.

The software programmer Casey Rodarmor is responsible for the creation of the protocol, which is known as “Ordinals.” He is also the one who formally debuted the programme on the Bitcoin mainnet after writing a blog post on January 21.

On the Bitcoin network, NFTs are referred to as “digital artefacts,” and the protocol effectively enables the creation of Bitcoin’s own version of them.

These “digital artefacts” might be in the shape of JPEG photographs, PDF documents, or even audio or video formats.

The introduction of the protocol, on the other hand, has caused discord within the Bitcoin community. While some claim that it expands the financial applications of Bitcoin, others argue that it moves Bitcoin further from Satoshi Nakamoto’s original vision of the cryptocurrency as a decentralised peer-to-peer cash system.

Dan Held, a Bitcoin bull, was one among many who supported the idea. He pointed out that it would boost demand for block space — and hence costs — while also adding additional use cases to Bitcoin.

Some people have pointed out that the block space on the Bitcoin network has been taken up by structures that are similar to NFTs, which might cause transaction costs to increase.

A person on Twitter with the handle “Bitcoin is Saving” is one of such individuals. On January 29, they claimed to their 237,600 followers that “privileged affluent whites” who wish to utilise JPEGs as status symbols may restrict marginalised people from participating in the Bitcoin network.

Eric Wall, a researcher in the field of cryptocurrencies, was of the other opinion and said that Bitcoin’s built-in block size restriction would prevent an increase in transaction costs.


Tagged : / / / / / / /

The U.K. government is recruiting for a head to its central bank digital currency project

The economic and financial ministry of the United Kingdom’s government, known as His Majesty’s Treasury, is in the process of hiring a head of central bank digital currency (CBDC) to oversee the creation of a digital version of the pound.

It has been said that the task is “important, difficult, and cross-cutting,” and that it would “need considerable collaboration within and beyond the HM Treasury.”

The argument for a digital pound is being investigated, as stated in the LinkedIn post, by the CBDC Taskforce, which is a collaboration between the Bank of England and the Treasury of the United Kingdom.

It is possible that the position of head of CBDC will bring the government of the United Kingdom one step closer to achieving its goal of implementing a CBDC.

A CBDC, often known as a digital pound, is not too distant from this.

Numerous nations all over the globe are investigating this and attempting to comprehend the advantages of this system in comparison to the one that is now in place; it is reasonable to assume that this will eventually take place.”

Indeed, the shift toward a digital pound is consistent with the trend of central banks all over the globe to investigate the possibilities presented by CBDCs.

The European Central Bank (ECB) has been doing extensive research on the possibility of a digital version of the euro, and many countries, like Sweden and Denmark, are also investigating the possibility of developing their own national digital currencies.

CBDCs make the claim that they can provide a variety of advantages, such as expanded financial inclusion, decreased costs for companies and customers, increased security and efficiency in the payment system, and so on.

Tony Yates, who served in a senior advisory role at the Bank of England in the past, has expressed his opposition to CBDCs.

We are concerned that there may be political pressure brought to the process that ignores or significantly downplays the risks that a CBDC poses to society. Resonating the thoughts of Dewar, he questioned the motivations behind the global rollouts of CBDCs, calling them “suspect”. In general, we are concerned that there may be political pressure that is brought to the process.”

The “digital” nature of money is another component that is called into question.

The United Kingdom is becoming an increasingly cashless and digital society: According to the Bank of England, less than 15% of payments are done using physical cash, and as many as 23 million individuals, which is almost one-third of the population in the United Kingdom, did not use cash at all in the year 2021.

When Scott questions the Treasury about a digital pound, Scott says, “Don’t we already have one?” 

Therefore, as soon as they have completed their exploratory phases, I would love to see a list of the advantages and new features that a CBDC will provide to the general population.”

Scott will “continue to concentrate on Bitcoin and establishing a worldwide, interoperable system that everyone can participate in” in the interim.

Dewar suggested that there is still a chance for Bitcoin and the government of the United Kingdom by saying, “The role description notes that the emergence of private sector money—such as Bitcoin—offers exciting opportunities for U.K. businesses and consumers, and we would very much agree with that at Bridge2Bitcoin.” There is still a chance for Bitcoin and the government of the United Kingdom.

Although there is currently no formal timetable in place, the Bank of England CBDC is intended to be made accessible to citizens of the United Kingdom.


Tagged : / / / / / /

Brazil and Argentina explore a common currency

The CEO of Coinbase, Brian Armstrong, suggested that Brazil and Argentina should switch to Bitcoin (BTC) as their national currency as Brazil and Argentina were beginning preparatory work for a potential common currency. This sparked a variety of discussions over the viability of Bitcoin (BTC) as a national currency. The Argentine peso and the Brazilian real will continue to be legal tender in both countries until a single currency can be established between them. The two nations in South America made the announcement on January 22 that they are beginning to plan for the creation of a joint currency.

The action may result in the formation of the world’s second-largest currency bloc.

Armstrong immediately rushed to Twitter when the news emerged to propose that Bitcoin would be the “perfect long-term bet” and to query whether or not the two governments would take it into consideration.

Raoul Pal, founder and current CEO of Global Macro Investor, was against the plan.

According to Pal, it is not optimal to have a national currency that “down 65% during the weak portion of the economic cycle and appreciates 10 times during the strong half of the cycle.”

The CEO pointed out that firms would have trouble preparing and hedging in this case because of the current climate. There were just a few others in the town who shared Pal’s opinion.

One person on Twitter claims that the only viable use for bitcoin is as a store of wealth, comparable to gold.

They posted the following on their Twitter account: Meanwhile, another Twitter user brought up the poor pace of transactions on the Bitcoin network and complained that they would take too long for everyday usage.

However, this was swiftly refuted by another community member who asserted that Bitcoin would become the “best means of trade” after the Lightning Network is completed. Armstrong’s statement may have been motivated by the fact that El Salvador, another Latin American nation, acknowledged bitcoin as a form of legal money in the year 2021.

The action resulted in several positive outcomes for the nation, one of which being an increase in tourism the next year, which totaled 1.1 million visitors to the nation.

In addition, El Salvador was able to use the revenues from its Bitcoin purchases to fund the construction of schools as well as a veterinary hospital.

Brazil and Argentina are no strangers to digital assets.

On November 29, the Chamber of Deputies in Brazil passed a bill that makes it possible to use cryptocurrencies as a form of payment in the nation.

Although the new legislation acknowledges cryptocurrency as a mode of payment, it does not make any particular cryptocurrency legal tender inside the nation.


Tagged : / / / / / /

The Bitcoin logo lights up Berlin

The Bitcoin (BTC) logo was placed atop Germany’s tallest tower over the weekend in Berlin, Germany. The logo took the shape of a gigantic orange letter B and lit up the night sky. On January 21st, the Bitcoin logo was shown on the Berliner Fernsehturm tower, which is more commonly known as the TV Tower.

Users of Bitcoin in Germany raced to Twitter and other social media sites to upload images and films of the illumination. Notable Bitcoin Twitter accounts then shared these photographs and videos with their followers.

“To put it more simply, we would want to draw your attention to bitcoin!

We believe in using subversive strategies such as this one, and we are going to carry out our plans as intended.”

Tilo is the Chief Executive Officer of an events firm that is in charge of organising the “Best of Blockchain” conference that will take place this year. The conference is scheduled to take place in this year.

In one of the comments, he outlined how simple the process is for making light displays, adding that all that is necessary is “a mixer, power station, and customised Bitcoin logo.” He went on to explain how straightforward the operation is. Tilo made an effort to carry out the operation towards the tail end of the year before. However, the beamer that I used was insufficient, as he said. It is not the first time that the Bitcoin logo or themes associated with it have been projected onto well-known buildings.

May of 2021 was the month when London saw the projection of the statement “Fiat is the bubble, Bitcoin is the pin” onto the Bank of England. This took occurred in London.

Tilo has in the past beamed Bitcoin words onto the world-famous Berlin wall and had offered an inventory of the supplies required to organise illuminations with others who were interested in doing it themselves.

On the other hand, he insists that “advertisements” of this sort are not absolutely authorised, and as a result, it is preferable to approach with utmost caution in regard to this topic.


Tagged : / / / / /

Satoshi Nakamoto’s Bitcoin white paper is now a 13-year-old teenager

The iconic Bitcoin (BTC) white paper celebrates thirteen years of financial disruption after being first published on Oct. 31, 2008, by an anonymous person or entity named Satoshi Nakamoto.

The white paper, titled Bitcoin: A Peer-to-Peer Electronic Cash System, foresaw the need for a peer-to-peer online payment system that is self-governing, secure and limited in quantity. The Bitcoin network was launched on Jan. 03, 2009, having each Bitcoin priced at $0.0008.

While Bitcoin was initially perceived as a threat by traditional financial institutions, thirteen years of community support and a growing user base have made Bitcoin one of the most profitable investments for the Internet age. Today, Bitcoin maintains a stable trading value well above $60k after experiencing a gradual appreciation of 7,749,999,900% ever since its launch. 

The Bitcoin white paper proposes a solution to prevent double-spending without the risk of trusting a third party. To do this, it mentions the use of ‘honest’ nodes that confirm transactions by overpowering the bad actors in terms of raw central processing unit (CPU) power of computers.

Interestingly enough, the Bitcoin white paper has 15 ‘honest’ and one ‘dishonest’ mentions, explaining the need for honest nodes to ensure the credibility of each transaction. In the words of Satoshi Nakamoto:

“We have proposed a system for electronic transactions without relying on trust. They [honest nodes] vote with their CPU power, expressing their acceptance of valid blocks by working on extending them and rejecting invalid blocks by refusing to work on them.”

The Bitcoin blockchain has mined block number 707542, which offered a mining reward of 6.25000000 BTC. 

As the Bitcoin ecosystem slowly approaches its hard cap or maximum supply of 21 million BTC, the developer community will need to modify the existing rules to incentivize the miners that confirm Bitcoin transactions on the blockchain. The white paper suggests:

“Any needed rules and incentives can be enforced with this consensus mechanism.”

Prominent entrepreneurs from Crypto Twitter such as Anthony Pompliano join in on the celebrations.

Despite the ongoing resistance from numerous governments and authorities such as China, this year marks the beginning of Bitcoin’s legacy as a legal tender in El Salvador. The long-term effect of Bitcoin on El Salvador’s inflated economy will determine the asset’s mainstream adoption among other jurisdictions.

Related: Crypto is impossible to destroy, says Tesla CEO Elon Musk

The success of Bitcoin and the crypto ecosystems as viable investments continue to attract investors from all walks of life. The world’s richest man, Tesla CEO Elon Musk, recently showed support for cryptocurrencies at the Code Conference in California:

“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.”

Musk also believes that “cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” which can be one of the main reasons for Bitcoin’s slow mainstream adoption rate.

Musk has also been highly influential in affecting the market price of other cryptocurrencies such Dogecoin (DOGE).