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Africa: New Cryptocurrency Regulations: Bitcoin to take over fiat currency

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Across Africa, we can certainly see some countries that are getting way more involved in crypto. We hear a lot from Zimbabwe, Nigeria, and South Africa.

Africa is a large place with a wide range of currencies. Basically, we have 50+ countries and a whole host of different currencies. But the thing is that we don’t need more fiat run by bankers and corrupt politicians in Africa. Bitcoin is perfect for Africa with so many countries, economies and borders that can be crossed permissionless and censorship resistance. When we look at the banking infrastructure in different countries of Africa, we see widely differing amounts of banking infrastructure. While South Africa has a very good infrastructure, Central Africa has a very different situation.

Bitcoin, of course, is a real threat the money issuing monopolies of governments. This monopoly over the money system means that there is no competition of money. That is problematic. Once cryptocurrency really off across the African continent, it’s getting more and more adoption every day. The day may not be far when fiat will be unable to compete because it is inherently inferior to cryptocurrency. We see mobile phone adoption exploding across Africa.

Across the continent, we can certainly see some countries that are getting way more involved in crypto. We hear a lot from Zimbabwe, Nigeria, and South Africa. Google trends show that bitcoin searches are often dominated by Africa which means that the interest is real but there are a lot of countries where we hear nothing about crypto adoption. So we still have a lot of work to do. But if we can get these strong footholds in places like Nigeria and South Africa, that would be amazing as it can spread from there.

 

Nigeria:

Over in Nigeria, we have Atiku Abubakar, who is the presidential hopeful and pro crypto politician. He wants to really see crypto become an important part of the future of Nigeria. He is just a presidential hopeful at this point and the elections will happen in mid-February but currently, Atiku does stand a really good chance of winning. This could really put Nigeria on the crypto map even more than it already is if he can win.

Uganda is very open to crypto hosting Binance’s first fiat onramp was a very important thing and is proving to be very popular amongst Ugandian population who want to buy bitcoin. Kenya’s government has launched the first fintech regulatory sandbox in Africa.

 

South Africa:

Over in South Africa, the government has established a crypto assets regulatory working group. South Africa’s reserve bank has released a paper looking to eliminate fraud and protect investors interested in cryptocurrencies but importantly make it easier to track transactions and levy taxes. Now the move deanonymizes cryptocurrency transactions in South Africa which is indeed bringing bitcoin closer to the traditional banking framework. The report does say that the new laws would essentially make it so that the exchanges and wallet providers have to trace transactions and will be held responsible for their customer’s usage of cryptocurrencies which is basically the role that the banks are playing in the current financial environment. So the exchanges, wallet providers, bitcoin ATMs, payment processors etc. all have to register with the government in 2019 which is not a piece of really good news.

 

Zimbabwe:

Over in Zimbabwe, the government has shut down the internet. There is a protest over 150% fuel price hike due to which the internet is shut down for some days but it just made the blockstream satellites in space really useful. As the awareness of these kinds of services grows, governments are really quickly going to realize that they cannot shut it down.

 

Binance also has been doing some PR work in Africa. They unveiled a blockchain donation project for a landslide that happened in Uganda and they are also aiming to feed a million children in Africa in 2019.

 

What do you think about the future of cryptocurrencies in Africa? Tell us in the comments section below.

#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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