Archive for the ‘bitcoin’ Category.

Blockchain Interview on CEO Money TV

Interview for CEO Money TV

Ukraine: Bitcoin’s are financial assets

bitcoin ukraineRecent disclosures by members of Ukraine’s legislature revealed that three lawmakers have a combined wealth in bitcoin of almost $50 million. According to a report from RIA Novosti, Russia’s international news service, the three lawmakers are all members of the “Petro Poroshenko Block,” which constitutes the largest group of legislators within the Parliament.

Of the three named by the report, Dmitry Golubov possesses the most bitcoin: 8,752 BTC, an amount worth roughly $37 million at current prices. Alexander Urbansky possesses 2,494 BTC while Dmitry Belotserkovets owns 398 BTC, worth approximately $10 million and $1.6 million, respectively.Two bills to provide legal frameworks for cryptocurrencies including Bitcoin have now been submitted to the Ukrainian parliament. The latest one proposes recognizing them as financial assets. It also defines cryptocurrency derivatives, market of cryptocurrencies and their derivatives in Ukraine,” Bill No. 7183-1 was submitted last week.

And, other report confirmed that 150 Bitcoin machines will be installed in Ukraine later this year.

US falls further behind in emerging cryptocurrency market

While US regulators keep making anouncements with little content in reference to the treatment of cryptocurrencies, countries like Switzerland are moving fast to embrace these new financial tools

The national railway company of Switzerland, Swiss Federal Railways (SBB), recently announced a new service. Starting on November 11, Swiss customers will be able to buy bitcoins from over 1,000 SBB ticket machines.

And, Swiss private bank Falcon is now offering their clients to store and trade bitcoins direclty via their cash holdings. A clear move that signals the traction the virtual currency is gaining even in slow-changing asset management.

The group’s new blockchain asset management service is being offered in partnership with cryptocurrency broker Bitcoin Suisse.

Nevada bans the banning of blockchains

Existing law gives legal recognition to electronic records, signatures and contracts that comply with certain requirements and allows an electronic record or signature to satisfy a requirement for a written record or signature in certain circumstances. (NRS 719.240-719.350) Sections 2-10 of this bill provide similarly for the legal recognition of the use of blockchain technology for similar purposes. Section 11 of this bill prohibits a local government from: (1) imposing a tax or fee on the use of a blockchain; (2) requiring a certificate, license or permit to use a blockchain; and (3) imposing any other requirement relating to the use of a blockchain.

FULL DOC

IMF Analysis of Virtual Currencies

I am in the process of fact-checking the ‘IMF Staff Discussion Note on Virtual Currencies‘. Only 14 pages into it there are already strange and pretty obvious factual shortcomings. So far, the most blatant one is that the International Monetary Fund characterizes the ‘Cost of Production’ for bitcoin (lowercase for the “currency”!) as high while assigning the value ‘low’ to the US Dollar’s production cost. Needless to say, this is an oversimplification but also hints at the fact that the researchers did not actually get into the math of the matter which would seem like an important fact when dealing with “money”.

Current bitcoin production cost can be calculated here. As everybody familiar with the matter knows: Bitcoins are being ‘mined’ by individuals for a profit – so there’s an actual marketplace for it. And, these miners also mine transactions – actually mostly, by now.

Below are the production costs for US Dollar bills and coins as provided by the “Federal Reserve Bank“. Of course these numbers do not account for driving these things around town in armored cars or the fact the JPMorgan alone employs 250,000 people (I assume they all use computers – not sure though). It should be easy to see that not a single miner would ever consider turning on his rig for such a poultry outcome.