US Federal Reserve Launches Cryptocurrency Index

US Federal Reserve Launches Cryptocurrency Index

This week the Federal Reserve Bank of St. Louis added cryptocurrency to their Federal Reserve Economic Data (FRED) database. It’s a seemingly small gesture, but one that signals to most observers crypto’s maturation, at least in the eyes of arguably the most important central banking institution in the world.  

Also read: Troll Slayer: Derek Magill Defends Peer-to-Peer Electronic Cash Against Defamation

Federal Reserve Bank of St. Louis Adds Four Cryptos to its FRED Database

“FRED has added four series on the prices of different cryptocurrencies,” the St. Louis Federal Reserve posted without much fanfare this week, including “Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. The price data are updated daily and span from as early as 2014 to the present. All data were obtained from Coinbase, a cryptocurrency exchange company, whose overall digital asset performance is depicted in the above graph (Coinbase Index).”

The St. Louis Fed is one of 12 regional banks within the system, collectively constituting the most powerful central bank on the globe. Known to be part of the 8th District, which includes midwestern Fed banks, it is also considered an economic research powerhouse.

US Federal Reserve Launches Cryptocurrency Index

It maintains its FRED database at its famed research division. The bank uses more than half of a million data points, derived from 81 sources. Exchange rates, GDP, interest rates, consumer indexes, banking, producer price indexes, among other sectors, comprise its focus. FRED-published statistics carry massive weight in the professional financial world.

That some government agency creates yet another index isn’t particularly newsworthy. However, that both proponents and opponents frequently set cryptocurrencies such as bitcoin cash (BCH) as distinctly operating in defiance of central banks, and how the Fed appeals to crypto bank Coinbase for its metric, means decentralized currencies have come of age.

Out Ahead

Going forward, it would also appear as Coinbase adds more currencies perhaps FRED would be compelled to monitor them as well. Whatever the case, the St. Louis Fed has been consistently out ahead of most central banks and economists when it comes to crypto.US Federal Reserve Launches Cryptocurrency Index

That’s a marked contrast to its brethren. Atlanta’s Fed bank openly chastised younger investors to steer clear of crypto. The San Francisco branch pegged bitcoin core’s (BTC) price considerably lower than its near $6,000 present figure, insisting one BTC is probably worth around the cost of mining, slightly under $2,000 per coin. Even the Minneapolis Fed, in trying to be charitable, urged ignoring the currency aspect altogether and instead look toward ‘blockchain technology.’

Again, the St. Louis Fed thinks differently. Just a few months ago it caused a stir within the ecosystem by publishing a meditation on BTC, putting forth the idea it can be considered alongside the dollar. Its Governor James Bullard, however, is much more cautious. Acknowledging crypto as being a real future of money, he explained, “Cryptocurrencies may unwittingly be pushing in the wrong direction in trying to solve an important social problem, which is how best to facilitate market-based exchange.”

Is the arrival of a FRED crypto index important? Let us know in the comments. 


Images via the Pixabay, FRED.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

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Mt. Gox Creditors’ Legal Victory: “Enormous Assets” to be Returned

Mt. Gox Creditors' Legal Victory: "Enormous Assets" to be Returned

The Mt. Gox Creditor (mtgoxcreditor) posted Commencement of Civil Rehabilitation Proceedings of Mt. Gox today, indicating a victory for creditors long wondering if an attempt would be made at making them financially whole. The Tokyo District Court ordered commencement of civil rehabilitation proceedings, and as such “enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors.”

Also read: Troll Slayer: Derek Magill Defends Peer-to-Peer Electronic Cash Against Defamation

Gox Creditors Score Victory in Hunt for Recovering Massive Losses

“This is the first time in Japan legal history,” noted attorney Daniel Kelman, “that a liquidation has ever converted into a rehabilitation —it’s always the other way around after a rehab fails. This sort of also made legal history as well.”

Mt. Gox Creditors' Legal Victory: "Enormous Assets" to be Returned

Mr. Kelman is referring to a post today, detailing how the Tokyo District Court, charged with overseeing bankruptcy proceedings in the notorious Mt. Gox crypto scandal of nearly four years ago, seemingly changed how “enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will [now] be returned to creditors of Mt.Gox in civil rehabilitation proceedings.  This is the creditors’ victory,” the blog detailed.

This might have been made possible, ironically, by bitcoin core’s (BTC) appreciating price since losses first surfaced. As Mr. Kelman explains, “That’s the main reason. At the initial creditor meetings at Tokyo District Court, the creditors demanded the trustee return bitcoins as bitcoins. Until then he was intent on selling them, but he agreed to look into it. The Coinlab case stalled everything for a couple years and creditors ended up in the 2017 bull market as a massive hodler, until the trustee started market selling in January this year, greatly contributing to the current bear market.”

Mt. Gox Creditors' Legal Victory: "Enormous Assets" to be Returned

Might Be a Chance for Those Who Have Yet to File Claim

The victory post was careful to emphasize how “this victory has not been realized yet.  The victory will come to creditors when Mt. Gox makes payment to creditors and creditors actually receive such payment.” It will take at least three additional steps, today’s post insists, to get there: “promptly realize creditors’ rights […], [approval] at the creditors’ meeting, and [finally approval] by the court.”

For those who lost BTC in the Gox affair but haven’t yet filed a claim, Mr. Kelman muses “there might be another chance to file in rehab. Stay tuned. We are trying to avoid having to redo the whole claims process, which will cost money, take time and be at the expense of the creditors who timely filed. But things will still take a while as there is the Coinlab case to grapple with still.”

One possible side benefit might be the market fluctuations caused by the Gox Trustee dumping coins. Mr. Kelman noted in a Tweet, “Trustee won’t be market selling again any time soon. Our motion worked.”

What are your thoughts on Mt. Gox? Let us know in the comments. 


Images via the Pixabay and Mtgoxprotest.com. Daniel Kelman first brought this to our attention.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

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Only a Third of the Richest Informed on Bitcoin

Only a Third of the Richest Informed on Bitcoin

Despite seeing their investment return above 20% in 2017 for two consecutive years, the richest people in the world say they are not fully satisfied with their asset managers and want to learn more about crypto.

Also read: At Least $20 Billion in Crypto Investment Awaits Custody Streamlining, Approval

Only a Third of the Richest Were Informed on Crypto

The collective wealth of the world’s millionaires went up to US$70 trillion for the first time, and they will have amassed US$100 trillion by 2025, a survey released earlier this week revealed. The Capgemini World Wealth Report 2018 found that rich people are increasingly interested in cryptocurrencies, but only about half of them are happy with their wealth managers, Reuters reported. Only a third of these millionaires said they got information about cryptocurrencies from their asset managers.

Twenty nine percent of these “high net wealth individuals,” (HNWIs) defined by the Capgemini investigation reportedly expressed a high interest in buying or holding cryptocurrencies, and twenty seven percent said they were just overall interested in the topic. Although the general public is still skeptical about cryptocurrencies like bitcoin, an increasing amount of people express a wish to understand it better.

Only a Third of the Richest Informed on Bitcoin

“I am surprised how many of my younger friends are now involved with cryptocurrencies. I wanted to buy some myself, but I don’t understand it well enough to make major investments,” a business woman in Tokyo said. Sally Young (34), who already made millions in real estate investments in the U.S. and in the Philippines, says she is reluctant to invest in crypto at the moment because she doesn’t know enough about them. “When I invest my money, I need to know exactly what I’m investing in,” she said. “With bitcoin, it seems way too difficult to understand how the system really works, and the stories I hear just sound too good to be true,” she explained.

The Bank for International Settlements (BIS), which is the coordinating agency for the world’s central banks, is by definition conservative. In its 2018 annual report released on June 17th, the agency said that “Bitcoin and other cryptocurrencies are a poor substitute for dollars, euros and other central bank-backed [currencies], because they don’t scale with growing demand, require excessive amounts of energy and fluctuate greatly in value.”

Report: Richest Young People Want Crypto

In a recent analysis, the BIS also said that digital coins “come up short on all three measures of usefulness as currency,” Reuters reported. “Their prices can fluctuate wildly, making them poor substitutes for fiat currencies for transactions, which require relative stability for price comparison. For similar reasons, they fall short for investing purposes because they cannot be relied upon a store of value.”

Despite regulatory uncertainty and firm caution currently preventing cryptocurrencies from penetrating the wealth management industry, the strong demand for information on crypto from younger HNWIs around the world may force wealth management companies to “at least develop and offer a point of view” in the near future, the World Wealth Report said.

Nearly 50% Japanese Say They Won’t Invest in Crypto

When cryptocurrencies boomed in Japan in 2017, the Japanese crypto investors were mainly people in their 20s and 30s, a survey reported by Nikkei Newspaper this week has showed. By the time the survey was conducted in April of 2018, 17.2% of Japanese people had invested in cryptocurrencies. Although many saw their assets swell by 2 to 5 times their investment at the peak, it was reported that sixty percent people actually suffered  losses. Looking closer into those Japanese people who invested in crypto, it was found that more than half of them were under the age of thirty and 52.3% among those have invested less than JPY5 million (US$45,500). Nearly fifty percent responded to the survey that they will not invest in cryptocurrencies in the future.

Do you think average poorer people and older people will invest in crypto? Let us know in the comments. 


Images via the Pixabay.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

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Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-No

Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-No

From the serious to the ridiculous, today’s edition of Bitcoin in Brief has got it all, and by “all” read “a varied selection of crypto-related topics numbering no less than four and no more than six.” That doesn’t sound nearly as alluring though, does it? All it is then. Take a deep breath and let’s dive right in.

Also read: Craig Wright Referenced as Satoshi in Chinese University Textbook

Oh No Nano!

Yesterday was a big day for free transactions altcoin Nano: its Android wallet was released. Shortly after being unveiled, however, a small problem was detected. Okay, make that a pretty big problem:

Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-No

For the record, Nano is the coin synonymous with the collapse of Bitgrail exchange and that was trading for $33 late last year, versus under $3 today. Nano holders have been hurting enough, in other words, without this latest debacle to deal with.

Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-No
Nano dropped in price following news of its wallet fail.

Everything Is a Copy of a Copy

With the launch of Tron’s mainnet in progress, it seems a good time to revisit claims of plagiary surrounding Justin Sun’s much hyped altcoin. Technically these claims aren’t being revisited in fact, since they’re fresh ones, not to be confused with the original claims of Tron having plagiarized large chunks of its whitepaper. Digital Asset Research have been poking around in Tron’s codebase and what they’ve found looks very familiar. They write:

While copying code without attribution opens the project up to some legal risks, they pale in comparison to the technical risks that the project faces. EthereumJ [which Tron is based on] is known to be unreliable and has issues like memory leakage.

As a parting salvo, they add: “The TRX token is one of the most centrally owned large cap ERC20 tokens”.

A Quick Look at Crypto Funds

ICOrating has released a detailed report on crypto funds. Its findings? 17% of all funds are tokenized (i.e. deploy a native token for profit sharing), 42% of all funds are based in the US, and the number of funds being founded has declined since 2017, which mirrors their declining returns as the crypto markets have went south. Most crypto funds don’t publish their ROI, but of the 8% ICOrating could find numbers for, the median ROI this year is just 14% versus 600% in 2017. It’s true what they say: any idiot can make money in a bull market. Most of the funds studied were under $100m, but ICOrating also found 15 funds of between $100-500m and nine whale-sized funds of over $500m.

Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-No

Another One in the Basket

Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-NoAs we reported earlier this month, cryptocurrency baskets are growing in popularity. Two more noteworthy baskets that never made that list have since emerged. The first is Iconomi, whose digital asset management platform allows for “one-click diversification.” And the other is a newcomer to the scene, Bitdiem. It’s an ethereum-based payments and savings protocol for setting up recurring and conditional payments. One of the tools it provides is the means to create customizable token baskets that “enables users to build an inflation-resistant basket of goods, minimizing volatility and serving as a lasting store of value. Essentially, the basket can serve as the token equivalent of a mutual fund or 401k.”

Everyone’s Raising Money

The bear market doesn’t seem to have dented the ability of crypto projects to raise vast amounts of money – and then rapidly start redistributing it. Over in Santa Monica, STO incubator Start Engine, responsible for nurturing the likes of free speech network Gab.ai, has closed a $5m funding round and is preparing a $10m sale of tokenized common stock. It’s also revealed plans to build a decentralized application on the Ethereum blockchain called LDGR to increase liquidity in the secondary marketplace for trading securities. Meanwhile, over in Europe, Essentia, fresh from raising $21m in its pre-sale, has announced a $1m hackathon to fuel projects built on its open source protocol.

Fun with Numbers

Bitcoin in Brief: Plagiary, Numerology, and Nano Does a No-NoFinally, following on from yesterday’s post about an unusual block header starting with 18 zeros, all sorts of crypto figures have been weighing in with their 10 sats on the matter. Nic Carter decided to spend the evening calculating how many bitcoin blocks reference their own block height in the corresponding hash. There are apparently seven five-digit blocks in which this occurs. He also investigated whether supposed Satoshis “CSW” or “Hal” appeared in any block hashes in hexadecimal form. Hal does but the initials of Craig Wright do not, confirming absolutely nothing. The point is, people will see anything they want to in numbers, including evidence of divine creation and giant quantum leaps. Still, though, those 18 zeros…it’s got to be aliens, right?

Do you think there’s something funny with all those zeros in that block header, or is it much ado about nothing? Let us know in the comments section below.


Images courtesy of Shutterstock, ICO Rating, and Twitter.


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At Least $20 Billion in Crypto Investment Awaits Custody Streamlining, Approval

At Least $20 Billion in Crypto Investment Awaits Custody Streamlining, Approval

Rumor has it vaunted, long awaited institutional money, big investment in crypto is coming. One of the many holdups involves custody regulation, as both large funds and those ecosystem companies best poised look for a smooth way to guard cryptocurrency holdings securely, alleviating whales’ greatest fears: theft and loss.

Also read: Troll Slayer: Derek Magill Defends Peer-to-Peer Electronic Cash Against Defamation

Investment Whales Want Custody Assurance

“There are a lot of investors where custodianship was the final barrier. Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital,” hedge fund Multicoin Capital’s Kyle Samani told Olga Kharif and Sonali Basak by phone.

Custodial arrangements in traditional, legacy finance are well understood and regarded. Precious metals, diamonds, and even cash are carefully guarded by trusted institutions such as JP Morgan. The brave new world of cryptocurrency scares the hair off of big finance, so a regulated, risk averse arrangement, complete with liability insurance, is, some professionals feel, key to big money entering the space in a substantial way.

At Least $20 Billion in Crypto Investment Awaits Custody Streamlining, Approval

Popular ecosystem bank, Coinbase, is among those who’ve announced movement in this area. As these pages reported last month, it “announced a new suite of services meant to attract more big money players such as the many new crypto hedge funds that pop up all the time. It will launch a cryptocurrency custodian in partnership with an SEC-regulated broker-dealer to a group of initial clients that include 1confirmation, Autonomous Partners, Boost VC, Meta Stable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital.”

About the same time, Tokyo-based investment bank Nomura announced its new venture, Komainu. It was “established to help overcome barriers for institutional investment in crypto-assets with a custody solution and offering new services, standards and best practices.” Jez Mohideen of Nomura explained, “Global investment managers have long been held back from full participation in digital asset markets, limited by operational and regulatory risk. Our new partnership will set the required standards that will bring peace of mind to digital asset investors, and provide tools and products to enable better integration with more traditional investment vehicles such as mutual funds.”

When Lambo?

Coinbase estimates $20 billion worth of crypto is sidelined until custody solutions make sense. Crypto assets will flow into custody services once they’re available, estimates Sam McIngvale, who’s leading Coinbase’s project — and that number is probably considerably higher with the ubiquity of initial coin offers, for example. At Least $20 Billion in Crypto Investment Awaits Custody Streamlining, Approval

“Such projects would pave the way for vast tracts of investors to expand into crypto,” Bloomberg claims, “potentially reviving prices in markets that have tumbled in recent weeks. Regulated crypto custody would allow more institutional buyers — such as hedge funds and pensions — to invest in Bitcoin, Ether and a multitude of other coins. Retail brokerages would have a safer way to let clients add crypto to portfolios stuffed with stocks and bonds.”

Regulatory clarity in this area seems to also be paramount for future growth in professional circles. Literally hundreds of funds have popped up in recent years, touting crypto toe-dips of one kind or another, and managers worry the, at times trigger happy, US Securities and Exchange Commission could very well fire first with prosecutions, asking questions later. Coinbases of the world, pending formal approval, would go a long way toward easing those concerns.

Do you expect major institutional money to enter the crypto market soon? Let us know in the comments. 


Images via the Pixabay.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

The post At Least $20 Billion in Crypto Investment Awaits Custody Streamlining, Approval appeared first on Bitcoin News.

Craig Wright Referenced as Satoshi in Chinese University Textbook

Craig Wright Referenced as Satoshi in Chinese University Textbook

According to reports a Chinese economics textbook that’s used in some of China’s leading universities states that the notorious Dr. Craig Wright is Satoshi Nakamoto, the creator of Bitcoin. The university textbook authored by Frederic Mishkin calls Wright an “Australian geek” who invented the cryptocurrency bitcoin almost ten years ago.

Also Read: “I Am the Real Satoshi” Claims Hawaiian Man After Filing Bitcoin Cash Trademark

Dr. Craig Wright is Referenced as Satoshi Nakamoto in a Chinese University Textbook

Dr. Craig Wright is an interesting man, and he is well known for publicly identifying himself as the creator of Bitcoin not long ago. Multiple news publications and key members of the Bitcoin community such as Gavin Andresen and Jon Matonis say that Wright has signed messages using Satoshi Nakamoto’s keys. Although during that time, and even now, that topic has been a contentious issue amongst the cryptocurrency community, and since then Wright has stopped discussing the claim.

Craig Wright Referenced as Satoshi in Chinese University Textbook
Not long ago Dr. Craig Wright publicly identified himself as Satoshi Nakamoto.

However, Wright has remained very noticeable within the crypto-ecosystem and now works as the chief scientist for the blockchain firm Nchain. Wright is also a staunch supporter of the decentralized currency bitcoin cash (BCH) and believes it is the ‘true bitcoin’ that’s intended to be a peer-to-peer currency, as opposed to a store of value.

Now, this week the journalist Jasmine Solana discovered a Chinese economics textbook that states Dr. Craig Wright is Satoshi Nakamoto. The economics textbook, “The Economics of Money, Banking, and Financial Markets (sixth edition),” was written by an American economist and writer Frederic Mishkin.

Craig Wright Referenced as Satoshi in Chinese University Textbook
Image and translation via Coingeek journalist Jasmine Solana.

The Economics Textbook Calls Wright an ‘Australian Financial Geek’ While Another Individual Recently Claimed to be the Creator of Bitcoin

The book was originally written in English and has been translated to Chinese, and on page 11 the authors say Wright is an “Australian financial geek” who created the peer-to-peer electronic cash network. The textbook was approved and translated by the Wuhan University Press, and one of China’s largest educational institutions the Department of Finance of the Economics and Management School (EMS) uses the text.

There are other school textbooks worldwide like universities such as Princeton, MIT, and other well-known colleges that reference the creator, but only identify him/her/group as a pseudonym called ‘Satoshi Nakamoto.’ Lately, Wright and his company Nchain has been releasing a series of academic papers on certain subjects like ‘selfish mining’ and other technical topics. Alongside this, the London-based firm has launched a programmers’ toolkit called Nakasendo built primarily for BCH developers.   

The Chinese textbook news also follows the recent claim from a Hawaiian man who has attempted to trademark the words ‘Bitcoin Cash.’ An individual named Ronald Keala Kua Maria from Hawaii says he is the ‘real’ Satoshi Nakamoto and has been purchasing domains and IP rights, including an attempt to trademark the BCH name.

What do you think about Craig Wright being identified as Satoshi Nakamoto in the Chinese textbook? Let us know your thoughts on this subject in the comment section below.


Images via Shutterstock, Pixabay, and Coingeek.  


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