Bakkt’s Bitcoin and Crypto App Opens its Doors to Early Testers

John P. Njui   •   BITCOIN (BTC) NEWS   •   NOVEMBER 13, 2020

Quick take:

• Bakkt’s Bitcoin and Crypto app is now available to those who signed up for early access
• Current features include cash (USD) deposits/withdrawals and Bitcoin trading
• More features will be added with time
• Early users/testers have been requested to give feedback
• The Bakkt mobile app is one more giant step towards Bitcoin and crypto adoption

The highly anticipated mobile app by Bakkt is now available for those who signed up for early access. Participants of the early access program were notified of the availability of the Bakkt app via an email sent out on the 11th of November.

The email also urged users to provide valuable feedback on the mobile app as soon as they started using it. The team at Bakkt welcomed early access users via the following statement.

We’re excited to welcome you into the Bakkt Early Access Program, which means that you’re getting access to the Bakkt App today! As both an early adopter and one of the first people ever to use the Bakkt App, we hope you will take some time to provide valuable feedback to our team on the Bakkt experience.

Features Currently Available for Early Access Users

The email went on to explain that the development team at Bakkt will be launching new features in the weeks to follow. In the meantime, the Bakkt Bitcoin and Crypto App currently has the following available for early access users.

• Cash (USD) deposits & withdrawals (with a $20 reward for linking a bank account – valid for 7 days)
• Aggregation of participating loyalty & rewards accounts
• Bitcoin (BTC) trading

Additionally, the following features will soon to be added to the Bakkt Bitcoin and crypto app.

• Instant cash deposits (USD)
• Aggregation & purchase of supported gift cards
• Bakkt Cash experience in the Starbucks® mobile app

What this App Means for Bitcoin and Crypto Adoption

The Bakkt Bitcoin and crypto app was slated for a summer launch. One reason for a possible delay in launching the app is the current global situation with respect to COVID19.

However, what matters is that the Bakkt app is now available to those who signed up for early access. The early access program is still open to those willing to try out the Bakkt mobile app by visiting https://www.bakkt.com/signup.

The availability of the Bakkt mobile app was also one day before US PayPal users were granted access to purchasing Bitcoin and crypto on their accounts.

Both PayPal and Bakkt providing investors and traders with an opportunity to invest in BTC and the various cryptocurrencies, is the adoption many crypto enthusiasts have been waiting for for over a decade. Therefore, it is only a matter of time before Bitcoin and crypto are used for the payment of goods and services in a manner more efficient than cold hard cash or even credit/debit cards.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Hedge Fund Titan Ray Dalio Foresees Governments Banning Bitcoin If It Becomes A Roaring Success

By Brenda Ngari – November 12, 2020

Ray Dalio, hedge fund titan, and well-known bitcoin skeptic says governments could potentially “outlaw” bitcoin and other cryptocurrencies should they become too successful.

Dalio is the founder of Connecticut-based Bridgewater Associates hedge fund which has approximately $160 billion assets under management. This technically makes Bridgwater the world’s largest hedge fund.

In conversation with Yahoo Finance, the billionaire investor noted several challenges he sees with the flagship cryptocurrency that will make it not succeed in the way that most people hope.

Governments Won’t Allow Bitcoin If It Becomes “Material”

Governments across the globe have tried to limit the use of cryptocurrencies by their citizens. Perhaps the most notorious case is that of Russia which has imposed several stringent restrictions around cryptocurrencies. Observers have noted that Russia’s salvo against bitcoin is nothing more than a way of eliminating competition as it readies the rollout of its digital ruble. Moreover, there was a shocking revelation in June that incumbent president Donald Trump had tried to kill the top crypto.

Suffice to say, neither of the governments has so far succeeded in banning bitcoin. However, Ray Dalio laughably believes it could happen at some point in the future if the crypto becomes “material”.

“If [Bitcoin] becomes material, governments won’t allow it. I mean, they’ll outlaw it and they’ll use whatever teeth they have to enforce that. They would say, ‘Okay you can’t transact [with] Bitcoin. You can’t have a Bitcoin.’ So then you have to be almost like, ‘Is it a felony and I’m going to have to be a felon in order to transact?’”

Besides being banned by governments, Dalio went on to explain other problems that plague bitcoin. For instance, there are a limited number of vendors that accept bitcoin as payment for purchases made. “I, today, can’t take my Bitcoin yet and go buy things easily with it,” he elaborated.

Additionally, Dalio cited bitcoin’s infamous volatility which makes it an ineffective store of value. According to him, this ruins bitcoin’s image as a tool for transactions owing to the fact that it makes vendors’ income streams unpredictable.

Other Billionaire Investors Beg To Differ

For Ray Dalio, bitcoin and other cryptocurrencies have no future. He, however, believes state-issued digital currencies will gain traction to the extent of even crowding out cryptocurrencies.

Interestingly, Dalio’s sentiments regarding bitcoin are a stark contrast to what other billionaire investors believe. Fellow hedge fund managers Paul Tudor Jones and Stan Druckenmiller deem bitcoin a viable store of value. 

Jones said buying bitcoin is like investing early in a tech company and Druckenmiller sees bitcoin performing better than gold as it has more risk-return potential than the precious metal. 

Meanwhile, Dalio will choose gold over bitcoin at any time. “Would I prefer Bitcoin to gold?’ No, I wouldn’t prefer Bitcoin to gold. Gold will be the vehicle that central banks and countries will choose as an alternative to the regular cash,” he posited.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Ex-Microsoft Engineer Handed A Nine-Year Prison Sentence For A $10 Million Criminal Scheme Involving Bitcoin

By Brenda Ngari – November 10, 2020

A former software engineer at Microsoft has been sentenced to nine years in prison after he devised a complex scheme, involving bitcoin, to steal over $10 million from his former employer.

Ukrainian national Volodymyr Kvashu, 26, was charged by a Seattle District court with 18 felonies including identity theft and money laundering. According to a press release published by the Department of Justice on Monday, this is the first such case in the United States.

Former Microsoft Employee Orchestrates Elaborate Scheme To Steal Millions

Kvashuk was involved in the testing of an online sales platform for Microsoft from August 2016 till when he was laid off in June 2018. His plan entailed using his employee access to steal “currency stored value” (CSV) which includes digital gift cards.

Currently living in Renton, Washington, Kvashuk then resold the value online and used the ill-gotten proceeds in part to purchase a $1.6 million waterfront home and a $160,000 Tesla automobile.

At first, he stole small amounts like $12,000 using his own account access and identity. But as the theft grew to millions of dollars, he began using the email accounts of his fellow employees to make look like other employees were responsible for the theft.

US Attorney Brian Moran for the Western District of Washington noted:

“Stealing from your employer is bad enough, but stealing and making it appear that your colleagues are to blame widens the damage beyond dollars and cents.”

US’s “First Bitcoin Case That Has A Tax Component”

Kvashuk’s ploy has especially drawn attention due to his use of the world’s largest cryptocurrency in an attempt to obfuscate his tracks.

Within the seven-month period of his theft scheme, roughly $2.8 million was sent to his bank and investment accounts after employing a bitcoin mixing service to hide the source of the funds. He also filed sham tax return forms claiming that he had received the bitcoin as a gift from a relative.

Commenting on the case and, in particular, Kvashuk’s use of bitcoin to commit fraud, IRS-CI Special Agent in Charge Ryan L. Korner stated:

“Kvashuk’s criminal acts of stealing from Microsoft, and subsequent filing false tax returns, is the nation’s first Bitcoin case that has a tax component to it. Simply put, today’s sentencing proves you cannot steal money via the Internet and think that Bitcoin is going to hide your criminal behaviors. Our complex team of cybercrimes experts with the assistance of IRS-CI’s Cyber Crimes Unit will hunt you down and hold you accountable for your wrongdoings.”

Earlier in February, a jury convicted Kvashuk of wire fraud, money laundering, identity theft, filing false tax returns, mail fraud, access device fraud, and access to a protected computer in furtherance of the fraud.

The Ukrainian citizen was ordered to pay $8,344,586 in damages on top of spending nine years behind the bars of federal prison for his role in defrauding Microsoft. He could also be deported from the U.S. following his prison sentence.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

US central banker urges digital dollar development

FOMC member Robert Kaplan believes the Fed should prioritize creating a digital dollar.

Image courtesy of CoinTelegraph

            NOV 10, 2020

President of the Dallas Federal Reserve Robert Kaplan believes the US central bank should begin work on a digital currency immediately, a clear indicator that some policymakers view this as an urgent matter.

Speaking Tuesday at a virtual conference hosted by Bloomberg, Kaplan reportedly said:

“It is critical that the Fed focuses on developing a digital currency in the coming months and years.”

The central banker’s remarks were part of a broader discussion on the economy and fiscal policy.

Kaplan is a member of this year’s Federal Open Market Committee (FOMC), the organization tasked with setting monetary policy. The 2020 Committee slashed interest rates to record lows in March as part of a synchronized policy response to Covid-19. Kaplan and the rest of the FOMC have been instrumental in flooding the market with liquidity since Sept 2019, when irregularities in the overnight repo market caused short-term interest rates to spike.

Blockchain technology is certainly on policymakers’ radar. Last month, Fed Chairman Jerome Powell said that 80% of central banks around the world are exploring the potential utility of a CBDC. While the Fed has given no indication of whether it will pursue a digital dollar, it has deployed economists to explore the subject in greater detail.

On Monday, the Fed released a literature review of central bank digital currencies, or CBDCs, to explore the impact of a digital dollar on commercial banking and monetary policy. The review concluded by recommending additional research be devoted to exploring the “intrinsic” value drivers of a government digital currency.

Back in August, the central bank released a full-length research report comparing a digital dollar with other payment methods.

Although the idea of a CBDC is scoffed at by proponents of truly decentralized digital currencies like Bitcoin, the digital dollar is believed by some to be the natural progression of a cashless society. It may assist governments in supporting financial innovation, boosting payment functionalities and supporting greater financial integration worldwide.

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Original article posted on the CoinTelegraph.com site, by Sam Bourgi.

Article re-posted on Markethive by Jeffrey Sloe

Institutional Investors Are Now More Likely To Choose Bitcoin Over Gold – And Here’s Why

By Bernice Nyambura – November 9, 2020

Institutional investors now prefer Bitcoin over gold, according to a recently published research note by financial analysts at JP Morgan.

The analysts observed that throughout October, Grayscale, the biggest digital assets manager recorded cumulative inflows on its Bitcoin trust. Meanwhile, gold ETFs had “modest inflows” since mid-October, which coincides with the start of the ongoing BTC price rally.

“What makes October flow trajectory for the Grayscale Bitcoin Trust even more impressive is its contrasts with the equivalent flow trajectory for gold ETFs which overall saw modest outflows since mid-October.”

This contrast, according to the analysts is a hint that many institutional investors who previously preferred investments in gold ETFs have shifted to Bitcoin as an alternative to gold.

Both Retail and Institutional Investors Driving Up Demand for BTC

Due to the high demand for BTC from both retail and institutional investors, the result has been an increased demand for Grayscale’s Bitcoin Trust. The latest data by Grayscale shows that Net Assets under management has risen to $9.1 billion with the Bitcoin Trust accounting for $7.65 billion.

The analysts added that this trend has potential positive long-term effects for Bitcoin as a store of value. If Bitcoin is able to continue the fierce competition, this will further establish its recognition as an alternative currency to gold.

However, Bitcoin’s market cap, which is still significantly lower than gold would have to rise as high as ten times from its current $279 billion to level up with its key competitors in the private sector such as gold ETFs, bars, and coins.

Temporary or Permanent Corporate BTC Endorsement?

BTC’s price surge has been driven by a lot of corporate endorsements that started to show in July and August and topped by Square and PayPal’s support for crypto trading and payments.

The analysts however argued that Bitcoin is reaching an overbought price level which could trigger a pullback in the short-term. Other analysts on Twitter have expressed similar sentiments especially with the breaking news of a 90% effective Coronavirus vaccine.

Bitcoin’s price is up 0.25% at $15,265 and falling at the time of press. According to analyst Centering Clark, some of the temporary BTC investors might trigger volatility when they exit the crypto market in favor of stocks, which stand to benefit from positive vaccine news.

“This volatility is just fast money finds that play $BTC as s higher beta $GOLD dumping on vaccine news. The players that enter on behalf of the long-term thesis for Bitcoin are not changing their positions.”

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Bernice Nyambura and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin (BTC) Available For Trading is as Low as it Was in Mid-2017

John P. Njui   •   BITCOIN (BTC) NEWS   •   November 8, 2020

Quick take:

• The amount of Bitcoin available for traders has dropped down to 2017 levels
• Most of the Bitcoin is now held by investors aka hodlers
• Such investors include Grayscale that has added 40k Bitcoin to its holdings in the last 30 days
• $15k might be the tip of the iceberg as Bitcoin could soar further in 2021

The amount of Bitcoin available for trading is currently at low levels last seen in 2017. This is according to an analysis done by the Chief Economist of Chainalysis, Philip Gradwell, who shared his views via the following tweet.

Bitcoin Investors Are Holding BTC Amidst Economic Uncertainty

In his tweet, Mr. Gradwell explains that Bitcoin (BTC) is now viewed as ‘an asset to hold in a world of macro uncertainty’. Therefore, ‘there isn’t much supply available to buy’.

Also part of his analysis is a chart that shows a continual decline in Bitcoin available for trading (yellow line). As this amount drops, the Bitcoin held by investors continues to increase with time (orange line). From the shared chart, it can be observed that an increment in Bitcoin holders has resulted in the price of Bitcoin also rising with time.

GrayScale Continues to Scoop Up Bitcoin

Also worth mentioning is that the Grayscale has continued to accumulate Bitcoin. In the last 30 days, the firm has purchased approximately 40,000 BTC worth more than $600 million. Furthermore, and in their latest market update, Grayscale now has approximately $9.1 Billion in digital assets under its management. Of this amount, $7.648 Billion is allocated to its Bitcoin trust. This information can be found below.

$15k Might Be The Tip of the Iceberg for Bitcoin

Given the information that the Bitcoin available to trade has dropped to early 2017 levels, it can be concluded that BTC has between 6 to 12 months of upward movement. This is given the assumption that the time Bitcoin will take to post a new all-time high, will be similar to that taken in 2017. Therefore, an earlier prediction by Bitcoin Analyst MagicPoopCannon of Bitcoin testing $80k or $90k next year might be a good forecast of what might transpire in the next few months.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe