IMF Chief Envisages Large-Scale Shift Towards Cryptocurrencies

IMF Chief Envisages Large-Scale Shift Away From Government Fiat Towards Cryptocurrency

IMF chief Christine Lagarde has dedicated her latest two blog posts on the official IMF website to cryptocurrencies. In her latest post, she outlines multiple benefits of crypto and envisages a large-scale shift away from government-issued currencies towards cryptocurrencies.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

2 Blog Posts Dedicated to Crypto

IMF Chief Envisages Large-Scale Shift Away From Government Fiat Towards CryptocurrencyThe managing director of the International Monetary Fund (IMF), Christine Lagarde, dedicated a blog post on the IMF website to the benefits of cryptocurrencies on Tuesday. This positive post follows her other post last month which she outlined the drawbacks from her viewpoint. Citing that she previously “looked at the dark side of crypto-assets, including their potential use for money laundering and the financing of terrorism,” Lagarde proceeded to say:

Here, I want to examine the promise they [cryptocurrencies] offer. A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria.

IMF Chief Envisages Large-Scale Shift Away From Government Fiat Towards CryptocurrencyShe acknowledged the many cryptocurrencies in circulation and said, “it seems inevitable that many will not survive the process of creative destruction.” According to Coinmarketcap, there are currently 1,568 cryptocurrencies.

“The crypto-assets that survive could have a significant impact on how we save, invest and pay our bills,” the IMF chief believes. “That is why policymakers should keep an open mind and work toward ­­an even-handed regulatory framework that minimizes risks while allowing the creative process to bear fruit.”

Lagarde Explores Benefits of Crypto

The first benefit Lagarde pointed out was:

Crypto-assets enable fast and inexpensive financial transactions, while offering some of the convenience of cash.

IMF Chief Envisages Large-Scale Shift Away From Government Fiat Towards CryptocurrencyShe emphasized that “Some payment services now make overseas transfers in a matter of hours, not days,” adding that “If privately issued crypto-assets remain risky and unstable, there may be demand for central banks to provide digital forms of money.”

The next point Lagarde discussed was a potential balance in the financial landscape brought about by cryptocurrencies. While emphasizing her belief that “the fintech revolution will not eliminate the need for trusted intermediaries, such as brokers and bankers,” she detailed:

There is hope, however, that decentralized applications spurred by crypto-assets will lead to a diversification of the financial landscape, a better balance between centralized and decentralized service providers, and a financial ecosystem that is more efficient and potentially more robust in resisting threats.

No Immediate Danger

Regarding financial stability, Lagarde revealed, “Our preliminary assessment is that, given their still-small footprint and limited links to the rest of the financial system, crypto-assets do not pose an immediate danger.” Nonetheless, the IMF chief calls for regulators to remain vigilant of the potential of cryptocurrencies “to magnify the risks of highly leveraged trading, and to increase the transmission of economic shocks should they become more integrated into mainstream financial products.” She further described:

Moreover, banks and other financial institutions will face challenges to their business models, should there be a large-scale shift away from government-issued currencies toward crypto-assets. Regulators might find it harder to ensure the stability of a more diffuse and decentralized financial system. Central banks might have more trouble acting as the lender of last resort in case of a crisis.

What do you think of Lagarde’s latest assessment of cryptocurrencies? Let us know in the comments section below.


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PR: Digital Ticks Just Launched First Look of Their Mobile App

Digital Ticks Launches Mobile App

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Digital Ticks, the hot, new ICO in town is out with their First Look of Mobile app of their exchange well ahead of their schedule!

This is very exciting news as this is no ordinary crypto exchange. Digital Ticks is the first ever Commodity Crypto exchange. Users will be able to trade all the different types of crypto assets as well as commodity to crypto assets.

Why Digital Ticks?
The platform is the first ever commodity to crypto exchange to be built by the traders for the traders. With a simple to use User interface, it is designed to be used by both the novice as well as experienced traders.

The team believes in helping the investors make their decisions based on the work done and not based on plain statements.

The CCO of Digital Ticks, Mayur Poddar quoted saying
“We want people to see the results and our progress first-hand, and we want to enable them to make an investment choice based on statistics rather than statements.” This is again reassuring each and every participant of the ICO that their team is dedicated and will get the job done.

After the success and the huge participation received during the pre-sale whole team was extremely geared up to deliver a quality product ahead of the timeline.

“The pre-sale contributions and the overwhelming response of the contributors are both exciting and ensuring that Digital Ticks is on the right path in the journey to make every commodity tradable using crypto. And we believe that we are stepping into the future of cryptocurrency with a new dream and our footsteps would be followed by all others who share the same dream.”
– Quoted by CEO of Digital Ticks- Jitu Bajaj.

Company’s decision to launch First look of Mobile App Interface at the same time as its Public token sale starts in fact prior to it is in contrast to most other companies which only have a white paper and website at the time of their public sale. Fuelled by the huge success of the pre-sale, the team went on to deliver Apps for both Android and IOS platform along with multiple Blockchain smart contracts. This gives public token sale participants confidence in the ability of the team behind the project.

Closing Thoughts
With their Public token sale started on 15th April 2018, the team has worked day and night and have already released their Mobile App’s First Look well before their planned release date. At this current pace, they will be able to get the entire platform up and running well before the deadline and might just end up being one of the greatest ICO’s.

To be a part of this revolution and experience it, you can download App through google play store for Android and Apple App Store for IOS version.

Download Digital Ticks – First Ever Commodity Crypto Currency Exchange Mobile App
For Android :- click here
For IOS :- click here
Crypto enthusiasts can participate in DTX public token sale by sending Bitcoin / Ethereum / Bank Wire Transfer directly to their Dashboard of Digital Ticks by just signing up on https://www.digitalticks.com

Website: https://www.digitalticks.com/
Facebook: https://www.facebook.com/DigitalTicksExchange
Telegram: https://t.me/digitalticksexchange
Twitter: https://twitter.com/DigitalTicks

Contact Email Address
marketing@digitalticks.com
Supporting Link
https://www.digitalticks.com/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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These Are the Best Performing Cryptocurrencies of 2018

These Are The Best Performing Cryptocurrencies of 2018

Picking a winner in this year’s crypto markets has been a tough task. With assets deprecated across the board, even the best performing coins are in the red. To put it more accurately then, these are the least worst performing cryptocurrencies of 2018.

Also read: Eight Ways to Profit in a Crypto Bear Market

None of the Top 20 Cryptos Have Held Their Value This Year

Bitcoin is down 58% in three months and down 66% from its all-time high. Most cryptocurrencies have shed even more since January, but a few have outperformed bitcoin. The handful that are in the green, such as ontology (up 110%) are only up because they weren’t introduced until 2018 was well under way. Had ontology, which was airdropped to NEO holders, been launched last year, there’s every likelihood it too would be in the red.

Of the cryptocurrencies that were trading at the start of this year, just two assets are in the green. Digixdao, a gold-backed token, is up 12% in three months, and bytom, a Chinese altcoin is up 2%. Neither of these two coins has produced the sort of return that the hodl strategy was conceived for. In fact, hodling through 2018 is one of the worst strategies a trader could have plumped for. That’s easy to say in hindsight of course. Short of sitting in tether for months, the most effective buy-and-sell strategy would have involved one of the following altcoins.

These Are The Best Performing Cryptocurrencies of 2018
The majority of this year’s best performing coins were listed only recently.

Meet 2018’s Least Worst Performers

Aside from digixdao and bytom, Binance Coin (BNB) has produced the best three-month return, down just 3%. In addition, Coincodex lists 29 crypto assets that have outperformed bitcoin. The likes of luminocoin and compcoin aren’t exactly household names, and with returns of -12% and -20% respectively, holding them would have brought little satisfaction. A look at the cryptocurrency top 20, based on market cap, reveals which recognizable altcoins have outperformed bitcoin in the past three months. Litecoin, EOS, NEO, monero, binance coin, vechain, and omisego are the only coins to pass this test, and both litecoin and monero are within a percentage point of bitcoin.

These Are The Best Performing Cryptocurrencies of 2018

On the balance of probability, if you’d attempted to counteract bitcoin’s decline by switching to altcoins, you’d have lost, and lost heavily. Ripple and cardano are down 84% in three months, and NEM has fallen further still. Unless you’re a margin trading demon, your best bet is to keep the majority of your portfolio in bitcoin and forget about it. When the curtain falls on 2018, it’s safe to assume the year’s top performing crypto assets will look very different.

What’s your trading strategy for this year? Let us know in the comments section below.


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Slump Begone: What’s Next For Cryptocurrencies? Tokens & Purpose

I know most of you are worried about price and the recent slump in the overall market valuation. Personally speaking, that does not concern me one bit as I believe this price and volume downfall is just temporary. As I mentioned before the market is no-where near maturity as the basis technology – distributed ledgers

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G20 Argentina Ends With No New Cryptocurrency Regulation

G20 Argentina Ends With No New Cryptocurrency Regulation

Nations forming the Group of 20 (G20) summit in Argentina this week issued Comunicado oficial de la primera reunión de ministros de Hacienda y presidentes de Bancos Centrales del G20, or first communication from the world’s central bankers concerning their work. The two page document is crammed with statements, and on the final page bankers seemed to table cryptocurrency regulations, while acknowledging both their potential for “efficiency and inclusiveness” but also “tax evasion, money laundering and terrorist financing.” Bankers urged the Financial Action Task Force (FATF) to apply their standards to “crypto-assets” in order to “advance global implementation.”

Also read: Bitcoiners Demand More Crypto CFDs and Spread-Betting in the UK

G20 Will Tackle Crypto Regs Mañana

“We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly,” G20 central bankers noted in their publication, Communiqué: Finance Ministers & Central Bank Governors,19-20 March 2018, Buenos Aires, Argentina. “Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. Crypto-assets lack the key attributes of sovereign currencies. At some point they could have financial stability implications.”

G20 Argentina Ends With No New Cryptocurrency Regulation

The G20 is an international forum for governments and central bankers from Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, the Russian Federation, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union, (plus Spain as a permanent guest member). Collectively, they represent two-thirds of the world’s population and over 80% of the globe’s economic output.

“We commit to implement the FATF standards as they apply to crypto-assets,” the online posting continued, “look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”

Crypto Enthusiasts Breathe a Sigh of Relief

The FATF ahead of this week’s meeting issued their own report, FATF Report to G20 Finance Ministers and Central Bank Governors March 2018. The 12 page document discusses standards for “virtual currencies,” noting “Virtual Currency Payment Products and Services (VCPPS)” will continue to be monitored, especially “particular methods of terrorist financing activity that pose an emerging threat, as well as at products and services that may represent an emerging vulnerability.” Later, they describe the current state of crypto as a patchwork of “regulatory framework across different countries” which “can be exploited by criminals, stifle innovation and create uncertainty,” stressing the how “FATF will continue its work on FinTech and virtual currencies, including considering how to promote and ensure a more coherent and consistent approach by countries to mitigating the risks and supporting financial innovation.”

G20 Argentina Ends With No New Cryptocurrency Regulation
Mark Carney

The Paris-based FATF is an intergovernmental organization (also known as Groupe d’action financière) focused mainly on money laundering with a particular emphasis on terrorism financing. Its jurisdiction is among 37 member states, operating a blacklist of uncooperative nations … which can amount to severe financial pressure without formal sanction.

Overall, cryptocurrency enthusiasts took a giant breath of relief. Prior to the meeting, crypto markets were tanking. The run-up to Argentina was largely seen as a black cloud, as many member nations had openly called for tighter crypto restrictions on a global level. But then, seemingly out of nowhere, a letter from the chair of the Financial Stability Board (FSB), Mark Carney, advised the G20 against new rules regarding crypto, suggesting what eventually became evident: there is no consensus among global leaders with regard to regulation. News sent markets into bull mode with bitcoin’s price rising above 9,000 USD as of this writing.

Do you think crypto is headed for another bull run? Let us know in the comments!


Images via Pixabay, G20. 


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G20 Watchdog Says Cryptos Not a Risk, Resists Calls for New Rules

G20 Watchdog Says Cryptos Not a Risk, Resists Calls for New Rules

The Financial Stability Board, G20’s global watchdog, does not consider cryptocurrencies a risk to financial stability. In a letter to the Group of 20 central bankers and finance ministers, its Chair Mark Carney said FSB was pivoting away from designing new policies and focusing on reviewing existing rules. His comments suggest there is no G20 consensus on common crypto regulations, despite calls from member-states for adopting global guidelines.

Also read: Japan to Call for Crypto Rules at the G20 Summit

No Consensus for Global Crypto Regulations

G20 Watchdog Says Cryptos Not a Risk, Resists Calls for New RulesThe Financial Stability Board (FSB), the body that coordinates financial regulation for the G20 countries, has effectively dismissed calls from member-states to adopt global cryptocurrency rules. “The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” its Chair Mark Carney said in a letter to central bankers and finance ministers, Reuters reported.

Representatives from G20 countries are meeting today in Argentina. Statements in several member-states suggested that crypto regulations would be on the agenda of the summit. In February, high-ranking French and German officials issued a letter urging their colleagues to discuss the implications of cryptocurrencies, like bitcoin, within the G20 format. According to recent reports from Tokyo, Japanese representatives intended to push for global rules on cryptocurrencies.

Carney’s comments suggest, however, that there is not enough consensus for a common approach to cryptocurrency regulation. The Financial Stability Board insists on more international coordination in monitoring the rapidly evolving crypto sector. “As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms,” its Chair said.

G20 Watchdog Says Cryptos Not a Risk, Resists Calls for New Rules
Mark Carney

Mark Carney, the serving governor of the Bank of England, recently called for greater regulation of cryptocurrencies. “The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system,” he stated in a speech earlier this month. Carney described the volatility associated with crypto markets as “speculative mania”. Commenting on the possibility of adopting global crypto rules, he admitted the regulation would likely be on a country-by-country basis.

“I would have a greater expectation for a series of national steps rather than some big coordinated approach,” the central banker said. He also voiced support for the idea to regulate some elements of the crypto-asset ecosystem to “protect the safety and soundness of the financial system”.

Carney will stand down as FSB’s Chair next year, when his term as Governor of the Bank of England ends. The G20 summit will take place in the Argentine capital Buenos Aires on March 19-20.

Do you think it’s possible to adopt global cryptocurrency regulations? Share your thoughts in the comments section below.  


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Data Reveals the Reasons Behind Bitcoin’s Big Dip

Data Reveals the Reasons Behind Bitcoin’s Big Dip

As everyone knows, bitcoin has dropped roughly three-fold from its December peak. At the height of the mania it touched $20,000 but has since fallen to as low as $6,000. The question of what caused the great decline is one that most bitcoiners have an opinion on. In a bid to settle the matter once and for all, Chainalysis has pored over the data to determine what happened.

Also read: South Korea Planning to Formally Allow ICOs

Bitcoin and the Bottomless Dip

Chainalysis is a respected research team whose data scientists and blockchain analysts have previously claimed to have worked out where Mt Gox’ missing bitcoins wound up. In “The Great Bitcoin Price Dip: Its Causes and a Way Forward”, Chainalysis turns its attention to BTC price action over the past three months. A lot of what’s in the report could have been deduced without glancing at a graph, but it’s interesting to see these observations backed by evidence.

According to Chainalysis, bitcoin’s big sell-off was a result of “Regulatory news driving trading volumes and a peak of positive sentiment pushing price; and a lack of fundamentals resulting in herding behaviour across increasingly correlated exchanges and cryptocurrencies.” Basically, we’re all just a bunch of herd animals driven by our emotions, and when one of the flock gets spooked, we all do.

Data Reveals the Reasons Behind Bitcoin’s Big Dip

How Much Is a Bitcoin Worth?

Determining a “fair” valuation for the price of 1 BTC has kept the brightest cryptonomists up at night. Chainalysis acknowledges the difficulty of valuing bitcoin, part of a new asset class, writing “Traditional markets have an established set of market fundamentals that help investors understand and contextualize price and volume fluctuations. The cryptocurrency world is still figuring out the correct fundamentals to use in situations of massive price volatility.” It then adds: “Trading volumes were sensitive to regulatory news, while price was driven by sentiment.”

Anyone who followed bitcoin’s trajectory throughout 2017 will have been aware of bitcoin’s susceptibility to regulatory news; the cryptocurrency saw a major sell-off following news that China was to ban bitcoin, but made a full recovery within weeks. In its report, Chainalysis also references other commonly used markers to denote the mania phase that bitcoin settled into through the latter half of last year, Google searches climbing faster than the price. Bitcoin couldn’t maintain its insane upward trajectory and something had to give:

In the stock market, a price correction is defined as a decline of at least 10% and a bear market is a decline of over 30%. Between 17 December and 6 February, the Bitcoin price declined by 70%.

Lessons Learned

The broad conclusions drawn by Chainalysis – that regulatory events and emotions drive the markets – are not surprising. The report does contain some interesting findings however, such as the fact that trading volume across major exchanges became increasingly correlated through December and January compared to the whole of 2017. This meant that what happened on one exchange would be mirrored almost instantly on another. If one whale got spooked and dumped – say, the Mt Gox trustee for example – everyone got spooked.

Data Reveals the Reasons Behind Bitcoin’s Big Dip
Cryptocurrencies are more closely correlated than ever before.

As bitcoin mania reached fever-pitch in December, exchanges experienced a “new in-flow” of bitcoin: investors were depositing more crypto than they were withdrawing. “As a consequence, supply was increasing at a greater rate than demand, and therefore the high price levels could not be sustained,” notes Chainalysis. The report concludes by providing evidence that altcoin prices are “increasingly correlated with Bitcoin prices”. There might be more altcoins and tokens than ever before, but some things never change: what happens to bitcoin happens to them all.

Do you think Chainalysis’ findings are accurate, or do you think other factors contributed to bitcoin’s big sell-off? Let us know in the comments section below.


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France Warns of 15 Unauthorized Cryptocurrency Investment Platforms

France Warns of 15 Unauthorized Cryptocurrency Investment Platforms

The French financial regulator has issued a warning and published a list of 15 unauthorized cryptocurrency exchange and investment platforms. These companies keep marketing to the French public despite the agency’s warnings.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

France Warns of Unauthorized Crypto Platforms

France Warns of 15 Unauthorized Cryptocurrency Investment PlatformsThe Autorité des Marchés Financiers (AMF) issued a warning on Thursday regarding cryptocurrency platforms that have been blacklisted by the agency. The AMF is France’s stock market regulator, an independent public body responsible for safeguarding investments in financial instruments and other savings as well as maintaining orderly financial markets.

France Warns of 15 Unauthorized Cryptocurrency Investment PlatformsAlong with the warning, the agency published a list of 15 cryptocurrency companies, which, it says, are “unauthorized companies proposing atypical investments without being authorized to do so.” Examples of such investments are “Diamonds, rare earths, wine or ‘crypto assets,’” the AMF wrote, adding that it has been providing a list of unauthorized diamond investments platforms since July of last year. In December, it decided to add “other miscellaneous assets” to this list, which includes “companies proposing to invest in ‘crypto assets’, some of which are presented as cryptocurrencies.”

Recently, Belgium’s Financial Services and Markets Authority (FSMA) also issued a similar warning, listing 19 cryptocurrency platforms that it had received complaints about and show signs of fraud. Like FSMA, the AMF emphasized that its list is neither complete nor exhaustive of all platforms that do not comply with the country’s regulations.

Approval by AMF Required

The addition of cryptocurrency platforms to AMF’s list is in accordance with “Law No. 2016-1691 of 9 December 2016 on transparency, the fight against corruption and the modernisation of economic life (the ‘Sapin II’ law),” the regulator explained, adding that:

Consequently, no offer [of miscellaneous assets] can be directly marketed in France on without prior allocation by the AMF of a registration number.

France Warns of 15 Unauthorized Cryptocurrency Investment PlatformsThe regulator says that the 15 companies it has listed “keep advertising and/or marketing to the French public” despite “the warning of the AMF regarding this new regulation.”

They are akj-crypto, bank-crypto, bcoin-bank, bit-crypto, boursebitcoin, crypteo, cryptobankweb, crypto-major, cryptopartnersinvest, crypto2.bnd-group, crypto.private-finances, ecs-solutions, ether-invest, krakenaccess, and minedecrypto.

Safety Investing Guidelines

The AMF also reminds investors of various safety guidelines before investing. “No advertising materials should make you overlook the fact that high returns always involve high risk,” the regulator began, adding that investors should:

Learn as much as you can about the company or intermediary trying to sell you a product (authorisation/certification, company history, location of head offices, etc.)…only invest in a product you understand.

In addition, the regulator urges investors to ask themselves “how, and by whom, the purchase price or selling price of the advertised product is set, and find out the precise terms and timeline for selling the product, especially in cases where the product invests in an asset class with low liquidity.”

What do you think of France warning and publishing a list of unauthorized crypto platforms? Let us know in the comments section below.


Images courtesy of Shutterstock and AMF.


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Circle Acquires Poloniex, to Focus on Crypto Assets and Bringing Fiat Pairs

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Circle, a payments and cryptocurrency company that raised over $100 million from leading venture capital firms and financial institutions like Goldman Sachs, has acquired cryptocurrency exchange Poloniex to serve the token market. Crypto Assets, Fiat Pairs Sean Neville and Jeremy Allaire, the co-founders of Circle, officially announced the acquisition of Poloniex by Circle on February

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British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up

British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up

Divorce is never fun and rarely simple, but when one party – generally the male – owns cryptocurrency, there’s an added layer of complexity. With cryptocurrency still relatively new as an asset class, there have been very few cases to date in which the unhappy couple have squabbled over altcoins. A British law firm professes to be handling three such cases at present, with the largest involving a tug-of-war over crypto valued at $840,000.

Also read: Divorce is Messy – Especially When You Own Bitcoin

Kissing Goodbye to the Ball and Blockchain

It was only a matter of time until a high profile, high value crypto divorce grabbed the headlines. In the event, it was Britain that claimed the dubious honor of hosting the world’s largest cryptocurrency untethering to date. “Crypto cash divorce nightmare looming” reads the cheery press release published by UK law firm Royds Withy King, on Valentine’s Day no less. Bolstering the stereotype about opportunistic lawyers, it reads:

Royds Withy King is acting on three separate high value divorce cases where spouses are seeking the disclosure and a potential share of cryptocurrency assets.  These are a first wave of cases that the firm is expecting. The three cases all involve husbands that have invested in or have purchased cryptocurrencies, including Bitcoin, Litecoin, Ripple and Ethereum.

The most lucrative of these cases – for all parties – concerns “an original investment of £80,000 [of cryptocurrency] in November 2016, which was valued at £1m in December 2017 and is now worth £600,000 [$840,000]”.

British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up
Vandana Chitroda of Royds Withy King

One of the firm’s partners speaks of there being “a traceability nightmare” in cases where a spouse hasn’t disclosed their assets. One partner’s nightmare, of course, may be another’s dream. As previously ventured on news.Bitcoin.com, “Parting with half of one’s cryptocurrency collection doesn’t come easy…Progressive males let their wife keep her surname and give up half their crypto come the divorce. Patriarchal oppressors put it all in monero and deny everything.”

British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats UpWhile onlookers who aren’t embroiled in a crypto divorce may derive a degree of schadenfreude from such cases, there are serious issues at stake. In many countries, a 50% division of assets is awarded, despite the husband often being the main breadwinner, because the wife’s contribution is recognized in other domains, including caring for their children and supporting his career. Making money from cryptocurrency calls for shrewdness, foresight, and iron hands, but qualifying it in the same bracket as a 40-hour-per-week job may be stretching it. Unless the husband embroiled in the $840k case is a full-time crypto trader, he likely made his money simply from buying early and hodling.

Always 50/50 In Relationships?

Even if the man’s spouse isn’t seeking an equal division of cryptocurrency, he may, for various reasons, begrudge parting with a portion of his portfolio. As Vandana Chitroda, a partner at Royds Withy King, points out: “[Volatility] presents a real challenge when valuing cryptocurrencies. Valuations will have to be carried out a number of times during the divorce process as the case progresses.”

If the couple are to reach an amicable resolution, the wife may find her husband more willing to come to an agreement in a bear market than during a bull run. Whether she’d be willing to accept a payoff while the crypto markets are mired in the red is another matter entirely. In the years to come, divorce courts may be prove to be a prime testing ground for determining how cryptocurrencies are classified and valued.

Do you think crypto assets should be equally apportioned in the event of a divorce? Let us know in the comments section below.


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World Central Banker to Central Banks: Bitcoin Is a Bubble, Ponzi, and Disaster

World Central Banker to Central Banks: Bitcoin is a Bubble, Ponzi, and Disaster

General Manager of the Bank for International Settlements (BIS), Agustín Carstens, gave a talk at Goethe University in its House of Finance, Tuesday, 6 February in Frankfurt. Titled Money in the Digital Age: What Role for Central Banks?, the talk saw Mr. Carstens acknowledge “We have seen a bit of a shift, to issues at the very heart of central banking. This shift is driven by developments at the cutting edge of technology. While it has been bubbling under the surface for years, the meteoric rise of bitcoin and other cryptocurrencies has led us to revisit some fundamental questions that touch on the origin and raison d’être for central banks.”

Also read: Market Risk Advisory Committee: Bitcoin Futures Self-Certification Works

World’s Central Banker: Bitcoin Challenges Heart of Central Banking

As the central banker to the globe’s central banks, the BIS special drawing rights balance nears a quarter trillion in reserves. The body is made up of 60 member states, heavily weighted toward Europe with over half its membership. The Depression-era organization in its current incarnation is a collaborative body issuing stress tests, acting as a prime counterparty, and a trustee to the world’s central banks.

Mr. Carsten’s appearance is part of a lecture series sponsored by Sustainable Architecture for Finance in Europe, the Center for Financial Studies, and the Deutsche Bundesbank. At issue to the GM were three principal questions: “What is money? What constitutes good money, and where do cryptocurrencies fit in? And, finally, what role should central banks play?,” he asked.

World Central Banker to Central Banks: Bitcoin is a Bubble, Ponzi, and Disaster
Mr. Carstens

Money, he asserts, is flatly connected to government, “an indispensable social convention backed by an accountable institution within the State that enjoys public trust.” Setting the tone, he immediate claims, “Private digital tokens posing as currencies, such as bitcoin and other crypto-assets that have mushroomed of late, must not endanger this trust in the fundamental value and nature of money.”

After a brief discussion of money’s history, he stumbles upon what amounts to patting himself on the back, insisting “laissez-faire is not a good approach in banking or in the issuance of money. Indeed, the paradigm of strict bank regulation and supervision and central banks overseeing the financial and monetary system that has emerged over the last century or so has proven to be the most effective way to avoid the instability and high economic costs associated with the proliferation of private and public monies,” which sets up a dramatic conflict with cryptocurrency such as bitcoin.

Basically Just Mega-Sudokus

Dismissing almost out of hand the distributed ledger technology undergirding bitcoin, he waxes, “Who would have thought that having people guessing solutions to what was described to me by a techie as the mathematical equivalent of mega-sudokus would be a way to generate consensus among strangers around the world through a proof of work? Does it thus provide a novel solution to the problem of how to generate trust among people who do not know each other?,” he asked rhetorically.

He then characterizes bitcoin as having three “obvious flaws.” Debasement, trust, and inefficiency are hallmarks of what Mr. Carstens views as “novel technology.” Debasement, he contends, happens through forks, creating seemingly endless versions of bitcoin which he believes are essentially inflationary, contrary to its claim of being scarce. “After all, it just takes a bunch of smart programmers and a catchy name. As in the past, these modern-day clippings dilute the value of existing ones, to the extent such cryptocurrencies have any economic value at all,” he warns.

World Central Banker to Central Banks: Bitcoin is a Bubble, Ponzi, and Disaster

Any trust crypto has garnered has come through centralization, through trading with fiat currencies on exchanges, he argues. “More generally,” Mr. Carstens continues, “they piggyback on the same institutional infrastructure that serves the overall financial system and on the trust that it provides. This reflects their challenge to establish their own trust in the face of cyber-attacks, loss of customers’ funds, limits on transferring funds and inadequate market integrity.”

Bitcoin in particular seems wholly inefficient as he understands it, and “while perhaps intended as an alternative payment system with no government involvement, it has become a combination of a bubble, a Ponzi scheme and an environmental disaster,” he urged. “Accordingly, authorities are edging closer and closer to clamping down to contain the risks related to cryptocurrencies. There is a strong case for policy intervention. As now noted by many securities markets and regulatory and supervisory agencies, these assets can raise concerns related to consumer and investor protection. Appropriate authorities have a duty to educate and protect investors and consumers, and need to be prepared to act,” he said ominously.

What do you think about the General Manager’s talk? Let us know in the comments section below.


Images courtesy of Pixabay, BIS.


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