Entradas

Mostrando las entradas etiquetadas como economics

Trump Banning Bitcoin Is Feasible But Highly Unlikely, Says Economist

Imagen
By William Suberg   United States president Donald Trump would cause a Bitcoin ( BTC ) price crash if he banned it, but the law would likely prevent him, economist and trader Alex Krueger concluded on Twitter July 15. Trump, who announced his distaste for cryptocurrency in general last week, initially failed to impact market sentiment. A subsequent breakdown over the weekend sent Bitcoin below $10,000 . Publishing a dedicated thread on the chances of Trump banning the cryptocurrency, Krueger argued he could theoretically have some success. By targeting entry and exit points for retail and institutional investors, the president would turn Bitcoin into an isolated, more illiquid asset as it is used by lay consumers.  “Trump could also go after fiat onramps, by simply forbidding banks to service crypto exchanges, or by requiring banks to not service exchanges unless conditions XYZ are fulfilled (and make that practically impossible),” Krueger ...

European Blockchain Institute To Be Established By Germany

Imagen
By Abhimanyu Krishnan The government of German state North Rhine-Westphalia (NRW) has revealed that it will build the European Blockchain Institute to examine blockchain technology. NRW Economics Minister Andreas Pinkwart said that the research institute will be formed in the city of Dortmund, the press release said.  Pinkwart was also positive on how blockchain technology could help economies, but must not be “energy-intensive”, This technology can be safe, decentralized, affordable and, when used properly, not too energy-intensive. Germany recently announced that it would outline a strategy for the digital assets space , and many countries in Europe are doing the same. France has established some crypto-friendly regulation , and has asked other nations in the EU to take after it .  Certainly, several authorities, both governments and financial institutions, have warmed up to cryptocurrencies and are seeking to leverage the benefits ...

South Korea launches task force to fight 800% increase in cryptocurrency crimes

Imagen
  Matthew Beedham South Korea is preparing to come down hard on cyber-criminals with the launch of a new “task force” specifically aimed at fighting cryptocurrency fraud and fintech-related crimes. The launch comes in specific response to the 800-percent increase in cryptocurrency crimes the country has seen over the last few years, local news outlets reports . In 2016, there were just 53 reported cases of such crimes, but in 2017 this figure rose to 453, and it exploded to 4,591 cases in 2018. Professional investigators and prosecuting bodies from around the country came together earlier this week in Seocho-dong, Seoul to mark the launch of the task force. According to the report, the task force will be able to track accounts suspected of harboring illicit funds, although it has not stated how it plans to do this. Naturally, as it’s a matter of public security, it’s likely to be a closely guarded secret. The task force will also be empowered to share info...

What determines the price of Bitcoin?

Imagen
By Moris Beracha Bitcoin has lost over 50% of its value in less than six months. Shortly before Christmas, each token was trading at over $ 19,000. Today it is worth a little over $ 8,400. Bitcoin investors predict a meteoric rise that will recommence any day now. However, Bitcoin has refused to cooperate, by staying stubbornly stuck below 10,000 for the last two months. According to Forbes, the "labor theory of value" essentially says that the price of a good or service is determined by the work required to produce it. But, other schools of economics say that the value of a good or service is whatever someone will pay for it. Moreover, if the producer values ​​the effort more highly than what the market will pay, they will stop producing it. So if prices fall, therefore, marginal producers tend to drop out. But as time goes by, more and more producers drop out until prices rise enough for the market to clear. Something similar h...