Can Bitcoin be Used as Money?

Money generally refers to the medium “used for buying/selling” or in another words, what we use as a payment for trading goods or service, or settling debts. The most prevalent form of money today is FIAT or paper currency, issued by central banks. Bitcoin, the world’s leader in cryptocurrency market capitalization, is another prime candidate for money. However, how does it compare to FIAT money and can it satisfy the general qualities of money?

From an economic point of view, for an thing or object to be considered as money, it must have the following characteristics. It must be durable, portable, divisible, uniform, supply must be limited and it must be acceptable widely. Let’s examine Bitcoin on each of these characteristics.

Money Characteristic: Durable

A currency must be durable, meaning that it should be able to survive adverse environmental conditions and remain in a usable state for long periods of time, surviving general wear and tear of everyday practical use. FIAT currency is able to remain in service for long time, because of its material choice and manufacturing method, however it still degrades over time. Bitcoin has no such limitation, since its all cryptographic code capable of surviving to indefinite time and not a physical object like paper money.

Money Characteristic: Portable

Any type of money should be portable, should be easy to carry, so it can be used in everyday life. FIAT currency is lightweight and easily carried in pockets and wallets. Bitcoin too, can be carried portably, in hardware wallets (USB size), in mobiles, laptops and even on paper wallets (private key written manually) and brain wallets (deterministic mnemonic phrases remembered by someone which can be used to access a Bitcoin wallet).

Money Characteristic: Divisible

Money also should be divisible, so it can be used for small transactions also. FIAT money is usually divided into 10, 20, 50, 100, 500, 1000 apart from coins. Bitcoin goes several steps further and is divisible upto 8 decimals with the smallest unit being called one satoshi (sat).

Money Characteristic: Fungible

Money should be fungible, meaning that basic units should be identical to one another. For instance, a dollar bill is equivalent, identical and exchangeable effortlessly with another one dollar bill. Bitcoin basic unit which is sat (short for satoshis) is also identical to another sat.

Money Characteristic: Limited Supply

The item or object being used as money should have limited supply, to have a certain value. This is where FIAT money is actually at a massive disadvantage, since it can be printed endlessly by the Central bank, without any specified limit, resulting in paper currency losing value. Bitcoin on the other hand, has a fixed limited supply of 21 million.

Money Characteristic: Wide Acceptance

Any currency has value, because many people consider it to be of value. FIAT currency is same, by itself it doesn’t have any intrinsic value, because its not a valuable object. It has value, because the government allows it to be the legal tender, to settle all debts public and private. Bitcoin has an additional feature, unlike FIAT money which can be printed at a minor cost, it’s expensive and resource intensive to mine Bitcoins, since miners have to process complex mathematical problems to mint it, using specialised hardware and large amounts of electricity. Further, Bitcoin has shown high adoption rates since its inception in 2009 and is the best performing asset of the decade.

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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

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Taha Zafar

A cryptocurrency and blockchain enthusiast by heart. Taha Zafar has been active in this space since 2017, he has experience with both investing and fundamental analysis of crypto assets. He has also worked extensively with deflationary tokens.

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Porn site data breach leaks thousands of cam models’ personal details

Porn site data breach leaks thousands of cam models' personal details

Thousands of adult cam models are now potentially at risk as a massive data breach of a popular porn network resulted in the leak of their personal information and other data.

I.M.L. SLU, the parent company of ImLive and PussyCash, was notified of a data breach earlier this month that resulted in the leak of just under 20 GB of data, encompassing videos, pictures, and very sensitive personal information dating as far back as 2005.

In total, over 875,000 files corresponding to over 4,000 models across 26 countries were leaked. The leaked data includes videos, advertisements, photographs, and chat recordings.

The cam models’ government identifications, driver’s licenses, social security numbers, banking information, body measurements, signatures, and other “sensitive media” are also among the data uncovered through the breach.

These documents are estimated to date as far back as 15-20 years, and as recently as within the past few weeks.

The breach puts models at risk - in more ways than one

The breach puts models at risk – in more ways than one

At face value, it’s clear that there are major security concerns for affected individuals. There is a comprehensive package of information to steal the identity of many of these users. It’s likely that hackers will sell identifying information on the dark web, where their identity can grab several hundred dollars.

With this information in the wrong hands, affected individuals may find thieves attempting to access or leverage their bank accounts and cards. They may additionally use this information to take out credit with the stolen identities.

But that’s just the beginning of it. Those exposed could potentially find themselves extorted, where their sensitive media is leveraged for payment, with the alternative of those photos and videos being sent out to friends, family, co-workers, etc.

And in countries where this line of sex work is restricted our outlawed, they may be blackmailed under the pretense that their data will be forwarded to law enforcement.

If they engaged in same-sex activities in jurisdictions where that engagement is banned, they may face even more drastic punishments.

A preventable security failure

A preventable security failure

The data was leaked through an Amazon Simple Storage Service (S3 bucket) hosted in Virginia, USA, and utilized by the company to store user information.

According to the cybersecurity research team at VPNMentor, the S3 bucket was completely unsecured and unencrypted, enabling hackers to easily access the server.

Per the report, this breach would have been prevented if I.M.L. had taken proper measures to secure their servers, implement proper access rules, and leave unauthenticated systems disconnected from the internet.

VPNMentor noted that the breach was discovered as part of a web mapping project in which the team used “port scanning to examine particular IP blocks and test open holes in systems for weaknesses.”

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Gemini lanza su propia empresa de seguros

Hacer negocios en el cripto mundo puede ser riesgoso a veces. Tal como lo hemos reportado en repetidas ocasiones aquí en CriptoTendencia. Los exchanges son habitualmente objeto de ciberataques por parte de varios criminales del mundo digital. Lo que vuelve muy interesante el lanzamiento de una compañía aseguradora por parte de los gemelos Winklevoss, para asegurar su propio exchange, Gemini.

La inseguridad de los exchanges

Los inversionistas son adversos al riesgo. Antes de colocar su capital en un nuevo negocio. Cualquier inversor analizará la situación social, económica, política y reguladora. Para así saber si su dinero se encontrará a salvo una vez invertido en una empresa. O si por el contrario, hay un alto riesgo de que ocurra algo que ponga en peligro su capital.

Y este ha sido uno de los principales obstáculos del cripto mundo, a la hora de atraer grandes inversionistas. Pues, la situación de alegalidad que suelen tener los criptoactivos en la mayor parte del mundo. Hace que la situación legal de los inversores y su capital. Sea difícil de predecir en el mejor de los casos, y completamente riesgosa en el peor.

Esta situación se vuelve todavía más patente, debido a los constantes robos sufridos por los exchanges de criptomonedas. Las cuales afrontan ataques por varios millones de dólares prácticamente de forma mensual. Lo que no le da a los potenciales inversionistas en criptomonedas, seguridad en torno a sus potenciales inversiones.

El seguro de Gemini

Esta es una situación que conocen sobradamente los hermanos Winklevoss. Y que los ha impulsado a crear su propia compañía de seguros, llamada Nakamoto LTD. Con el objetivo de asegurar hasta 200 millones de dólares de Gemini. Así como ofrecer la opción a sus clientes para que aseguren también su patrimonio.

Para el lanzamiento de Nakamoto, los Winklevoss se han asociado con dos brokers de seguros, Aon y Marsh. Permitiendo además que los inversionistas que han colocado su dinero en la plataforma de Gemini. Puedan también adaptarse a las regulaciones de sus respectivos países. Los cuales les pueden solicitar que un porcentaje de sus inversiones estén aseguradas.

Según el Jefe de Riesgos de Gemini, Yusuf Hussain, este movimiento de los hermanos Winklevoss. “Es consistente con el enfoque de Gemini de ser un exchange y custodio amigable con la seguridad, el cumplimiento y la regulación“. Siendo una continuación además, de la decisión de Gemini de asegurar en 2018 wallets online.

Todos estos serían pasos innovadores dentro del cripto mundo. Que tienen el potencial de atraer una mayor cantidad de inversiones al mercado de criptoactivos. Al proporcionar mayores seguridades a los inversionistas. Así como facilidades reguladoras de todo tipo. Lo que hace de la decisión de los Winklevoss nuestro Dato del Día aquí en CriptoTendencia.

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Estudiante de Estudios Internacionales, interesado en temas de economía y política internacional. Apasionado por los avances de la Cuarta Revolución Industrial en general y las criptomonedas en particular.

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Anchorage, Bison Trails Execs to Helm Libra’s New ‘Technical Steering Committee’

The Libra Association announced Thursday it had formed a technical steering committee to coordinate the design of the Libra platform.

The new committee, composed of Anchorage co-founder Diogo Monica, Calibra core product lead George Cabrera III, Bison Trails founder Joe Lallouz, Union Square Ventures partner Nick Grossman and Mercy Corps emerging technology director Ric Shreves, was formed on Dec. 16, 2019, according to an announcement on the Libra developers page. It’s the latest incremental update to the Libra roadmap following a wave of founding member defections last October.

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The Libra technical steering committee plans to publish a governance framework before the end of March 2020, according to the announcement, which “will include the process by which the open source community can propose technical changes to the network and a transparent process for evaluating those proposals.”

While Libra originally envisioned a launch by mid-2020, regulatory pushback may delay this, Facebook CEO Mark Zuckerberg said during an interview late last year.

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Deribit Takes On New Trading Tools to Capture ‘Exploding’ Options Market

Amid increasing activity within the crypto derivatives market, software maker Trading Technologies (TT) announced Wednesday it would provide trading tools to users of leading crypto exchange, Deribit.

Included in the suite are advanced order types, charting and analytics as well as access to a feature allowing users to create algorithms for bot trading.

TT users eligible to trade on Deribit will be able to access all listed products, including bitcoin (BTC) and ether (ETH) futures, perpetual and options contracts. Dutch-based (for another month) Deribit, founded in 2016, is now the fifth crypto-only exchange that TT supports, alongside BitMEX, CoinFLEX, Coinbase and Bakkt.

TT’s vice president of cryptocurrencies, Michael Unetich, said demand for crypto derivatives was strong in regions such as the U.S., Asia and Europe.

“We hope to provide trading access to the highest volume derivatives exchanges in the world. CME is one leading derivatives venue, while others are located in Asia.” Unetich said.

Trading Technologies creates professional trading software, infrastructure and data solutions for a wide variety of users, including proprietary traders, brokers, money managers, chartered tax advisors (CTAs), hedge funds, commercial hedgers and risk managers. Traditional financial institutions like Goldman Sachs; stock exchanges like the Johannesburg Stock Exchange; and Europe’s largest derivatives exchange Eurex also use the 25-year-old firm’s tools.

Jehan Chu, co-founder and managing partner of Kenetic, a Hong Kong-based blockchain investment and trading firm said TT’s connection to Deribit was a “massive show of confidence” for the “exploding” options market. 

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Su Zhu, co-founder at Singapore-based crypto investment firm Three Arrows Capital, told CoinDesk the new options exchanges such as OKEx, CME and Bakkt are driving more volume to Deribit as the central primary liquidity venue for options.

“This month is shaping up to be the largest volume month ever for options,” Zhu said.

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Huobi Joins Blockchain Turkey Platform to Boost Local Ecosystem

Major crypto exchange Huobi becomes a member of the Blockchain Turkey Platform to cooperate with local players on blockchain efforts.

Five months after officially entering the Turkish market, Huobi joined the Blockchain Turkey Platform as a “Platinum” member, the global crypto exchange announced on Jan. 15, according to a press release shared with Cointelegraph Turkey. Founded by the Turkish Informatics Foundation in 2018, the Blockchain Turkey Platform (BCTR) is an independent, non-profit organization that aims to create a healthy blockchain ecosystem in Turkey. The platform has members from banking and finance, venture capitalism, technology, and crypto industries.

Huobi has become the first global exchange to become a member of BCTR, according to the press release. Huobi Turkey General Manager Alphan Gogus remarked that they believe in the importance of maintaining blockchain-driven development together. “We support BCTRs vision to secure Turkey’s regional leadership in a decentralized system,” he added.

Global initiatives are on the way to Turkey

Huobi’s Turkey efforts began when the company announced the establishment of a local office at the Eurasian Blockchain Summit last October. The crypto exchange brought many global blockchain experts to the summit, first signaling their desire to support Turkey’s blockchain efforts. 

Gogus told Cointelegraph Turkey that they are also looking forward to cooperating with Blockchain Turkey Platform via Huobi University, Huobi Research and Huobi Capital:

“Huobi supports the growth of crypto and blockchain ecosystems globally. Turkey has the potential to become a pioneer in blockchain technology, both regionally and globally. By joining The Blockchain Turkey Platform, which drives local efforts in a cross-industry approach, we aim to exchange our global expertise and knowledge with key local players to boost the blockchain ecosystem.”

BCTR creates a multidisciplinary environment to enable key players from different industries to speed up the adoption of blockchain in Turkey, BKM CEO and a founding member of the platform Soner Canko told Cointelegraph Turkey in an early interview.

When asked for a comment, Canko explained:

“BCTR boosted the cooperation on the adoption of blockchain between public institutions, including the Turkish Ministry of Commerce, academics, and NGOs. With 70+ members from different industries, Blockchain Turkey Platform aims to produce blockchain success stories in Turkey. […] BCTR also plans to support startups, small and medium-sized companies with more business opportunities on the blockchain.”


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