Cryptocurrency backed by gold being developed by Perth Mint to entice investors back to precious metals
Australia’s biggest gold refiner, the Perth Mint, is developing its own cryptocurrency backed by physical precious metals. The ambitious plan, which is subject to a confidentiality agreement, will make it easier for consumers to buy gold. The mint also plans to make use of blockchain technology, first used as the core component of the digital currency Bitcoin, where it works as a public ledger for transactions. In the 10 years since its inception, blockchain has been used to track transactions in industries from agriculture to land registration and the music recording industry. For the Perth Mint, the need to bring investors back to precious metals after a boom in alternative […]
Could cryptocurrencies be a serious alternative to the dollar?
With its wild fluctuations, which even created some “Bitcoin billionaires”, the cryptocurrency craze that has swept the financial world over summer is hard to ignore. Yet for all the hype about the Bitcoin roller-coaster, is there any chance we will one day be doing the shopping with Bitcoin, or some other crypto-dollar? This question has the potential to affect all of us, not to mention the core institutions at the heart of our financial system. And it’s not quite as far-fetched as it may sound. At the moment Bitcoin looks to have taken off as a highly speculative asset, rather than a realistic alternative to money. In the longer term […]
The search for bitcoin’s founder: who invented cryptocurrency?
The identity of the pioneering cryptocurrency’s founding father(s) has remained a mystery since a whitepaper published by a programmer going by the pseudonym Satoshi Nakamoto surfaced in 2008. However, there are plenty that have worked with the bitcoin founder to make it a success. Satoshi Nakamoto ‘What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party’ – Satoshi Nakamoto, 2008. For a cryptographically secured digital currency built on a system that requires no central authority, it is unsurprising that its creator has stayed in the shadows. […]
Why Bitcoin’s price is so volatile
In 2017, Bitcoin’s value soared from $1,000 to just under $20,000 before dropping down to around $13,000 at the end of the year. Since then, it’s value has risen and dropped sporadically from day to day, dragging smaller cryptocurrencies like Ether and Ripple along with it. If you’re new to cryptocurrencies, this kind of volatility can be dizzying (and painful if you invest at the wrong time), but if you take a closer look it starts to make sense. Here’s why Bitcoin’s price keeps changing so drastically, and why it may get more stable in the future. Bitcoin Is Still Very New Bitcoin was first released in 2009, but it […]
‘I actually don’t quite care’: Australian bitcoin investors hang tough
Australian bitcoin investors are refusing to be spooked by the cryptocurrency’s wild volatility, saying its steep drop in value was a “healthy step” in the virtual currency’s brief history. Bitcoin – the world’s largest digital coin – fell below $US10,000 ($A12,500) on Wednesday, continuing its month-long slide. Bitcoin peaked in December, at nearly $US20,000 but has since dropped by 50 per cent. Wednesday’s price drop was sparked by a record sell-off after the South Korean government flagged a crackdown on cryptocurrency trading. South Korea is one of the world’s biggest cryptocurrency markets. Bitcoin is one of nearly 1400 different types of cryptocurrency. China has also recently flagged a crackdown on […]
Why investor Steve Baxter’s changed his tune on the blockchain, but warns current hype levels are “dangerous”
Last year, prominent Australian investor and Shark Tank judge Steve Baxter told StartupSmart in an interview he believed the blockchain was “overhyped”, and he had no blockchain-focused startups in his portfolio, nor was he “in a hurry to find any”. Since then, blockchain startups and cryptocurrencies such as Bitcoin and Ethereum have seen an astounding boom in both popularity, recognition, and price, with multiple success stories locally and abroad. Asked if he’s changed his tune just over six months later, Baxter told StartupSmart this week he now owns “a bit” of second-largest cryptocurrency Ethereum and appreciates the tech more. “I bought $500 bucks of Ethereum to get a sense of […]
Bitcoin tumbles as fears of cryptocurrency crackdown linger
January’s cryptocurrency selloff got fresh impetus on Tuesday when Bitcoin slumped as much as 20 percent, as the prospect of regulatory crackdowns appeared to spread. While the largest digital coin trimmed its loss and was down 18 per cent at $11,444 ($14,378) at 5am AEDT, it was still at the lowest level since late December, according to composite pricing on Bloomberg. As Bitcoin halted its two-day rally, rival cryptocurrencies also tumbled. Ripple sank as much as 33 percent and Ethereum dropped 24 percent, before both tokens pared some declines. Speculators across the globe are struggling to determine when or how market watchdogs may rein in an industry that’s decentralised and […]
AUSTRAC opens consultation on new rules for digital currency exchange providers
Australia’s financial intelligence agency AUSTRAC has earlier today provided another update to digital currency exchange providers. Somewhat later than initially planned, the agency published its draft AML/CFT Rules for consultation. The draft amendments result from the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017, which is also known as the “Bitcoin bill”. In December last year, the legislative piece passed both Houses and got Royal Assent. Today, AUSTRAC opened a public consultation into the draft AML/CFT Rules. The period of the consultation lasts until February 13, 2018. The rules, inter alia, provide detailed information on the Digital Currency Exchange Register, as well as requirements for information to be reported about […]
