Japan Might Be Driving Factor For Recent Bitcoin Price Rally: Reasons & Trends

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August 16, 2017

Over the past few months, through previous coverages, Cointelegraph emphasized the importance of the Japanese Bitcoin industry to the Bitcoin exchange market in Asia.

Earlier this week, many analysts and financial news networks including CNBC have noted that Japan has been a driving factor in the recent rally of Bitcoin price.

Japan and Bitcoin’s love story

As Cointelegraph previously reported, throughout the past two weeks, the Japanese Bitcoin exchange market demonstrated a rapid growth rate, overtaking the Chinese and US Bitcoin exchange markets in daily trading volume.

Although Japan only briefly became the world’s largest Bitcoin exchange market, it remains the second largest market behind the US, backed by rising demand from institutional and retail investors.

Earlier this year, the Japanese government fully legalized Bitcoin as an official currency and a store of value. Since then, the Japanese Bitcoin exchange market has appealed to a wide range of investors and traders.

Cointelegraph also revealed that the trading of Bitcoin in Japanese yen has accounted for 46 percent of total trade volume worldwide, while the US only accounted for 25 percent.

Japan remains as one of the few countries that have adopted Bitcoin as a digital currency. The country’s largest companies and conglomerates including retail giant Bic Camera and Peach Airlines have been offering Bitcoin as an official payment method and in the upcoming months, hundreds of thousands of merchants, restaurants, bars, cafes and stores are expected to integrate Bitcoin.

More importantly, leading Japanese Bitcoin exchanges such as bitFlyer and multi-billion dollar technology conglomerates like GMO Group have also started to target institutional and retail investors by providing high liquidity and regulated channels to invest in.

A vital market for Asian Bitcoin traders, institutional investors

In the US, Coinbase and Gemini just began to target institutional investors in August. Coinbase secured a $100 mln funding round to create a more efficient infrastructure for institutional investors, while Gemini partnered with CBOE, the largest options exchange in the US, to increase liquidity for large-scale Bitcoin investors and traders.

As Gemini founder and CEO Tyler Winklevoss noted:

“Gemini’s key concerns in the cryptocurrency ecosystem have always been security, compliance and regulatory oversight. By working with the team at CBOE, we are helping to make Bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors.”

Within the Japanese Bitcoin and cryptocurrency markets, institutional and retail investors have expressed their interest towards the digital currency as early as 2016. With necessary infrastructures in place, mainstream adoption of Bitcoin has drastically increased in the country led by major companies and financial institutions.

However, the Japanese market has dismissed analysts and traders in the past due to its zero-fee policy. Analysts claimed that Japan, similar to China, has demonstrated fake and manipulated trading volumes. In late 2016, the Chinese central bank prohibited the implementation of zero-fee policy to prevent market manipulation and fake or manufactured trading volumes. Currently, Japanese exchanges do not require fees for orders and trades.

The case that trading volumes coming from the Japanese Bitcoin exchange market are inaccurate can certainly be made. But, due to its efficient and cost-effective trading infrastructure, Japan has attracted investors from China and South Korea, serving as a vital market for Asian Bitcoin traders and institutional investors.

Singaporean Shipping Giants Partner IBM for Blockchain Trial

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August 16, 2017

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Two major Singaporean maritime companies have inked a deal with technology giant IBM to explore and trial blockchain technology for supply chain networks.

Singaporean shipping giant Pacific International Lines (PIL), one of Asia’s largest shipowners, and the Port Authority of Singapore (PSA), one of the world’s largest port operators, have entered a memorandum of understanding (MoU) are jumping on the blockchain bandwagon with a memorandum of understanding (MoU) with IBM Singapore.

The three parties will unite to work on proof-of-concept blockchain solutions to enhance the security, transparency and efficiency of the supply chain network in south eastern Asia.

Singapore is among the world’s largest hubs for trade and travelers whilst commonly seen as the gateway to Asia from the west. Any implementation of blockchain technology for regional supply chain operations and trade finance will prove to be a significant endorsement of the decentralized innovation most prominently known as the core technology behind cryptocurrencies like bitcoin.

Tan Chong Mong, PSA Group CEO stated:

Across the global movement of goods and cargo, many activities continue to operate in silos. Blockchain has the potential to reduce inefficiencies and gaps within the supply chain, promote more cost-efficient transactions and facilitate the continued growth in world trade.

As the technology provider, IBM Singapore will use its Hyperledger Fabric platform, an open-source production ready blockchain software which saw its official release in July this year. IBM will also be using expertise from its ‘Blockchain Innovation Center’, a government-supported installation launched in Singapore last year. Incidentally, IBM has already been working with the Port Authority of Singapore for early stage trials of blockchain technology for transnational container shipments.

The trio’s endeavor will also see work toward connecting the supply chain business with trade finance solutions using blockchain technology for near-instant approval from the financier while avoiding fraud in the shipping industry.

“Blockchain as the foundation of an immutable, security-rich, highly auditable and transparent shared business network, offers improved transparency, data security, and workflow productivity in complex business networks,” added IBM Asia Pacific Chairman and CEO Randy Walker.

Swiss Bank to Sell Ether and Bitcoin Cash to Customers

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August 16, 2017

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A private Swiss bank is expanding a digital asset management service it launched earlier this summer to include new cryptocurrencies.

Falcon Private Bank, as previously reported by CoinDesk, revealed that it would allow its customers to buy and hold bitcoin within their accounts through a partnership with brokerage service Bitcoin Suisse. The launch was said to come after consultations with Swiss regulators, including the Swiss Financial Market Supervisory Authority (FINMA).

Now, that product line is expanding to include ether, litecoin and bitcoin cash. Customers of the bank will be able to start buying and holding those cryptocurrencies from August 22, according to today’s announcement.

It’s a notable development, given that the initial service was brought online just over a month ago, marking the first time a traditional bank has moved to offer cryptocurrency services to its clients. As of last year, Falcon Private Bank had more than $14 billion in assets under its control.

“Falcon Private Bank was the first bank to offer bitcoin directly to its clients, and thus created history,” Bitcoin Suisse CEO Niklas Nikolajsen said in a statement. “Their decision to follow up by adding ether as well as other crypto-assets has made them the go-to private bank for crypto-asset holders and investors.”

At the time of its bitcoin service launch, Falcon also moved to install a bitcoin ATM in its Zurich headquarters.

Satoshi Cycle: Interest in Bitcoin Raises Price, Which Raises Interest

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August 16, 2017

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As Bitcoin price rises, it comes out of the shadows with more people googling the digital currency, and from that rise in interest the price seems to rise again, and so on and so on in what has been coined the “Satoshi cycle.”

Chris Burniske, a Bitcoin expert who was previously a Blockchain analyst at ARK Invest, has noted a high correlation between Bitcoin price and Google search trends for the word “Bitcoin.”

A virtuous Satoshi cycle

In a series of tweets, Burniske theorized that when Bitcoin price spikes, it also drives the interest of the digital currency up, and then that further interest perpetuates as it again drives the price up – something he joked was “a virtuous Satoshi cycle.”

Bitcoin hit a record high of $4,483.55 on Wednesday, and at the same time, the search for Bitcoin was also at its all time high.

In contrast, August has also seen a drop off of searches for the word “Ethereum” in terms of popularity in Google.

Bitcoin in blue, Ethereum in red

Could also be signs of small bubbles

While there are many, including traditional investors, who believe Bitcoin is on its way to a seemingly unlimited upside, Burniske disputes this saying that when Bitcoin has doubled its price in 30 days – six times previously, there has always been a drop off.

“The virtuous Satoshi cycle can overheat though, as Google search activity divorces from its tight tango with Bitcoin’s price,” he tweeted earlier this week.

“After every bubble there’s a crash,” he tweeted, also noting that some of those crashes were as big as 90 percent, but at the same time those were very different Bitcoin markets.

“Thin liquidity, fragile exchanges, and a fraction of the users and investors,” added to big crashes, but the change in the Bitcoin ecosystem is something he suggested could limit downside in the event of another sharp downtrend.

HBO’s $250,000 Bitcoin Parlay Fails as Hackers Continue Thefts

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August 16, 2017

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HBO says they are done playing games following a second hack that stole three more television shows. Hackers had initially stolen episodes of the popular “Game of Thrones” series, demanding a ransom of $6 mln. HBO instead offered a “goodwill” payment of $250,000 to the “Mr. Smith Hackers” in order to placate them.

Looking for attention

Apparently HBO’s ransom payment simply emboldened the hackers, as they have now reportedly stolen three more shows from the company. The latest shows to fall prey to the hackers are “Curb Your Enthusiasm,” “Ballers” and “Insecure.” Additionally, some episodes from yet-to-debut shows “Barry” and “The Deuce” were stolen.

HBO recently commented on the matter, suggesting that the hackers may be more interested in attention than in money:

“It has been widely reported that there was a cyber incident at HBO. The hacker may continue to drop bits and pieces of stolen information in an attempt to generate media attention. That’s a game we’re not going to participate in.”

Another case of high ransom

The news has been filled lately with reports of hackers holding data for ransom. Most of these incidents were due to the WannaCry and Petyamalware. One such incident involved the UK’s National Health Services, where patient data was encrypted by malware pending payment of a $300 ransom. In the wake of these attacks, many businesses in the UK have preemptively purchased Bitcoin in case they should need to pay a ransom to unlock time-sensitive files.

Experts say the cyber thieves could have stolen even more sensitive data from HBO, including personal information of employees and other unaired episodes, which they may still be holding as leverage.

Gartner analyst Avivah Litan explained:

“It’s kind of like kidnap and ransom and torture…Eventually HBO may have to give in.”

Ripple Confirms China Expansion Plans, Shoots Down Alibaba Rumor

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August 16, 2017

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Ripple is opening up about its plans to enter one of the world’s largest markets.

In new statements to CoinDesk, the San Francisco blockchain startup aimed to address rumors that first appeared last Thursday on XRP Chat, a forum dedicated to gossip and commentary on both the company and its technology.

In short – yes, the blockchain company is planning to set up operations in China, but no, it’s not doing so with the help of one of the region’s e-commerce giants.

Emi Yoshikawa, Ripple’s director of joint venture partnership, told CoinDesk:

“China is a key market for a global payments network, which is why we are looking to build a presence there. Total cross-border [business-to-business] payment value involving China is $5 trillion annually, and the large Chinese e-commerce market currently lacks a highly efficient and low-cost solution.”

Most recently, Ripple added 10 new financial institutions to its blockchain network, including MUFG in Japan, BBVA in Spain and SEB in Sweden, but membership by Chinese firms has so far been absent.

And it appears it will have to keep working on adding a big name from China to that impressive list of collaborators. Ripple also put to rest speculation that Alibaba was already running a validator node on the Ripple network.

Images in the post showed a node that appeared to be operating in Hangzhou, China, with an address linking it to Alibaba Advertising Co., Ltd.

This led some to believe the Chinese mammoth would be help Ripple maneuver its way into the country, though a Ripple spokesperson said such an effort is not in the works:

“Alibaba (the company) is not running a validator.”

Bahrain Bank First in MENA Region to Join R3 Blockchain Consortium

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August 16, 2017

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Bank ABC, an international banking group headquartered in Bahrain is the latest financial institution to join the global banking-centric blockchain consortium led by New York-based startup R3.

Bank ABC, formerly known as the Arab Banking Corporation, has become the first financial institution in the MENA (Middle East and North Africa) region to join the R3 blockchain consortium. The Bahrain-based bank joins over 80 global financial institutions among the member ranks at R3 to research and develop blockchain-based solutions in financial services.

“We are privileged to be part of this prestigious consortium of international banks and financial institutions, which is spearheading a pivotal change in the industry,” stated Sal Al Waary, deputy group CEO of Bank ABC in an announcement.

The executive added:

DLT and blockchain technology has added a new dimension to the evolving FinTech landscape and we are confident that this alliance will propel us further to achieve our strategic goals.

A Hotbed

For R3, the addition of Bank ABC marks its presence in the region with its first member in the Middle East. Any introduction of blockchain-based financial services by Bank ABC could ultimately see the innovative decentralized technology put to use by a retail bank with services in a number of countries including Jordan, Egypt, Tunisia, Algeria and Bahrain.

Earlier this year, Qatar-based Commercial Bank completed an international money transfer pilot over a blockchain, with the aim to enable cross-border remittances between a number of regional nations. Elsewhere in the Middle East region, the National Bank of Abu Dhabi – the Emirate’s largest bank – launched cross-border payments powered by Ripple earlier in February this year.

Nationwide Blockchain Adoption

Meanwhile, Bahrain could become one of the earliest nations in the world to incorporate blockchain technology on a national scale. Earlier this year, the country’s Economic Development Board, a government agency tasked with formulating the nation’s economic development strategy, hinted at plans toward a “country level” adoption of blockchain technology.

Revealing talks with representatives from the central bank of Singapore, Bahrain EDB CEO Khalid Al Rumaihi stated:

The ability for blockchain to be adopted at [a] country level is a huge opportunity for Bahrain to move into the spotlight as a pioneer in this space.

WannaCry Aftermath: IoT Gets Blockchain Security Consortium

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August 16, 2017

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A UK university has partnered with an Indian tech institute to examine Blockchain protection against future cyberattacks like WannaCry.

City University London and Indian Institute of Technology Kharagpur will work together via a consortium which will focus specifically on arming health care entities and Internet of Things (IoT) components against the effects of international cybercrime.

The UK’s National Health Service was a major victim of WannaCry earlier this year after hackers found easy prey in the state-run network’s legacy operating systems.

“Our consortium will be exploring the use of a privacy-preserving Blockchain architecture for IoT applications in healthcare data-sharing, using attribute-based encryption (ABE) to provide greater security for the devices,” Muttukrishnan Rajarajan, professor of network engineering at City University said, quoted by local news resource Internet of Business.

Research into the capabilities of WannaCry internationally cast further doubt on the ability of certain countries, India among them, to resist infection.

In particular, India’s ATM network could have succumbed to the malicious parties, reports suggested at the time.

Rajarajan said that security of IoT devices used in health networks and elsewhere would also form an area of investigation.

Other countries have been experimenting with Blockchain healthcare for some time, notably Estonia, which has sought to put its records on the Blockchain to increase both flexibility and security.

The NHS also faced calls to meet attackers with Blockchain tools immediately following the hack.

Square CEO: Blockchain Can Help Solve ‘So Many Problems’

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August 16, 2017

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Jack Dorsey, the CEO of both Twitter and Square, recently said he believes blockchain can be used to solve problems in a range of different areas.

Speaking in an interview with tech media publication The Verge, Dorsey described the technology as the “next big unlock”, arguing that it has a plethora of applications beyond payments and the like.

“There are so many problems we can help solve [with blockchain] that are not just related to finance, but finance is an obvious one,” he told the site.

That said, Dorsey cautioned against trying to reach too far in applying the tech, decrying the push to try and solve “every single problem with it.

He went on to say:

“I think we need to be more thoughtful. What are people struggling with? How does the technology help them progress or does it distract them?”

Speaking about bitcoin specifically, Dorsey said that he’s hearing from a number of people close to him about investing in those markets, expressing surprise at the degree of interest.

“It’s not about the currency at all to these people who asked me. It’s about the investment,” he concluded.

Key Russian Institution Plans Deposit and Settlement Services for Digital Currencies

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August 16, 2017

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Russia has recently announced several initiatives aimed at rivaling China’s current lead in Blockchain technology. The Russian National Settlement Depository (NSD) made another such announcement today, advancing a Blockchain-based platform which will offer deposit and settlement services for digital currencies. The NSD is the central depository for the Moscow Exchange, the biggest exchange group in Russia.

According to the NSD, the prototype of the service will be launched in the first half of 2018. NSD will be collaborating with the Waves Platform for this launch. Using Waves, the NSD will create a digital currency wallet that will be available for banks, pension funds and retail investors.

In his statement, NSD Executive Board chairperson Eddie Astanin outlined their goals:

“Our goal is to create a secure and user-friendly accounting infrastructure for digital assets. We consider the platform would not only provide technological and legal protection of all parties involved but also extend a variety of post-trade services for investors, custodians and new institutions emerging in this sector of the economy.”

Possible challenges to the project’s implementation

Waves Platform officials claimed that the scheme is technologically feasible, but there are regulatory uncertainties that could temporarily or permanently prevent its deployment.

According to Wave’s founder and CEO, Sasha Ivanov, one of the key challenges is whether the NSD would be lawfully authorized to deal with digital assets. This is a crucial question because there is little concrete regulation in Russia, with much being left open to interpretation. Ivanov says:

“Project implementation depends not only on technical development but on the development of a legislative framework that mitigates the risks of crypto asset ownership and ensures that the service is user-friendly.”

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Japan Might Be Driving Factor For Recent Bitcoin Price Rally: Reasons & Trends

Japan and Bitcoin’s love story

A vital market for Asian Bitcoin traders, institutional investors

Singaporean Shipping Giants Partner IBM for Blockchain Trial

Swiss Bank to Sell Ether and Bitcoin Cash to Customers

Satoshi Cycle: Interest in Bitcoin Raises Price, Which Raises Interest

A virtuous Satoshi cycle

Could also be signs of small bubbles

HBO’s $250,000 Bitcoin Parlay Fails as Hackers Continue Thefts

Looking for attention

Another case of high ransom

Ripple Confirms China Expansion Plans, Shoots Down Alibaba Rumor

Bahrain Bank First in MENA Region to Join R3 Blockchain Consortium

A Hotbed

Nationwide Blockchain Adoption

WannaCry Aftermath: IoT Gets Blockchain Security Consortium

Square CEO: Blockchain Can Help Solve ‘So Many Problems’

Key Russian Institution Plans Deposit and Settlement Services for Digital Currencies

Possible challenges to the project’s implementation

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Cyprus registers Binance as a cryptocurrency service provider.

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