The state of the world economy just over a decade ago was not a pretty picture. A solution was needed and one was offered in the form of a decentralized peer-to-peer digital monetary system. Bitcoin was born and a decade on it appears to be déjà vu for the global economy.This Crash Worse Than 2008The previous economic crisis was caused largely by banks engaging in hedge fund trading with derivatives then demanding more mortgages to support the profitable sale of these derivatives. Essentially the bankers brought down the economies of the world and everyone suffered.Banks have proved that they cannot be trusted and Bitcoin was created out of that notion. As Nakamoto himself wrote;“The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”US debt has escalating to unprecedented levels and all signs are pointing to another imminent economic collapse. With a national debt approaching $23 trillion, the situation has clearly spiraled out of control and America, being one of the world’s largest economies, will drag the rest of the planet into the financial quagmire again.Goldbug Peter Schiff has predicted this collapse time and time again and asserts that it will be far worse than the last.“The economic collapse that is going to follow the bursting of this bubble is going to be far more dramatic than ’08.”Naturally Schiff wants to plug his gold funds which do provide a relatively stable store of wealth in times of economic despair. Gold prices rose sharply from 2009 to 2011 as the world picked up the pieces from the last crisis and they are likely to do so again.Bitcoin is Digital GoldBitcoin, which has often been referred to as ‘digital gold’ is also seen as a store of value and that narrative is now stronger than ever. The majority of millennials will remember the last crash and will be wary of banks and their meddling. Bitcoin is likely to be the choice for them above gold simply because they have been raised with technology and the internet, unlike the generations before them.The sentiment has been echoed by Weiss Ratings in a recent tweet which sums up the current situation.“Bitcoin was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $BTC is evolving into a store of value like gold.”#Bitcoin was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $BTC is evolving into a store of value like gold.#BTC #crypto #cryptocurrency— Weiss Crypto Ratings (@WeissCrypto) October 17, 2019
The clock is ticking and with the US, and now China, starting to inject cash back into their financial systems in order to keep them afloat, the writing may already be on the wall for the economies of the world.Image from Shutterstock
Go to Source
Author: Martin Young
Global crypto exchange Huobi plans to roll out a fiat gateway in Turkey that could increase access to more than 250 cryptocurrencies for local investors.
The move comes as Turkey puts forward a clearer legal framework for the crypto market in a country where many people already hold cryptocurrencies, Mohit Davar, Huobi’s EMEA regional president, told CoinDesk.
The company is announcing the project at the Eurasia Blockchain Summit in Istanbul on Friday.
Huobi announced in June that it intended to get more involved in the Turkish crypto market, but did not disclose details about the expansion at the time.
Davar said the exchange has partnered with one of the largest local banks to build the infrastructure and compliance standards for the fiat gateway, but declined to name the local bank partner.
He said Huobi would announce the partnership at a launch in December, at the latest, as the actual date could be earlier given as they have already started testing the gateway platform.
Huobi started to establish a partnership with the bank in June, he said, and has since been trying to address some of the biggest concerns voiced by Turkish banks.
“I think generally where there is not a clear regulatory framework in the market, it’s been left to the discretion of the banks to make their own decision,” Davar said. “That is always to make sure that we have the right checks and balances, particularly when it comes to KYC and AML.”
“The banks want to make sure when they face off with us as a partner, that they are actually fulfilling their obligations,” he said.
The fiat gateway would enable transactions between local fiat currency Lira and dollar stablecoin Tether (USDT). Once users purchase tether through their bank account, they could trade it with any other cryptocurrencies on Huobi Global.
The company believes that the Lira-USDT pairing makes transactions in the local market much easier, compared to offering hundreds of pairing between Lira and the other cryptocurrencies.
“It’s very difficult for any exchange to offer liquidity in the 250 coins that we hold against the local currency,” Davar said.
One could also convert Lira to dollar-pegged tether at the rate they are comfortable without worrying volatility of cryptocurrencies during the transaction, he added.
The exchange has also revealed its “aggressive” fee structure, Davar disclosed.
Turkish users will be able to trade at a 50% discount with 0.1% transaction fees, and even lower transaction fees by holding Huobi Token (HT). Another program would open up for professional traders in Turkey to trade with low fees across Spot and Margin trades.
The exchange has launched a mobile app and a Turkish version of Huobi’s trading website to help local customers. The next step is to onboard the local team and start the operation, including four full-time staff members, Davar said.
Davar said the banking partnership being worked on now is non-exclusive, meaning Huobi could sign up more banking institutions and non-bank investors as it expands its services in Turkey.
Go to Source
Author: David Pan
Ripple price started a fresh increase and it surged above $0.3000 against the US dollar.The price is currently correcting higher after trading to a new monthly high near $0.3040.Earlier, there was a break above a declining channel with resistance near $0.2860 on the hourly chart of the XRP/USD pair (data source from Kraken).The price is slowly correcting lower and it could find bids near the $0.2940 and $0.2920 levels.Ripple price is moving nicely in a positive zone against the US Dollar and Looking at the chart, ripple price is showing a lot of positive signs above the $0.2920 support area. Therefore, there are high chances of a decent upward move above the $0.3000 in the coming sessions. Only a close below $0.2880 may perhaps negate the current positive bias and start a fresh decline.Technical IndicatorsHourly MACD – The MACD for XRP/USD is gaining strength in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting lower towards the 50 level.Major Support Levels – $0.2940, $0.2920 and $0.2880.Major Resistance Levels – $0.3000, $0.3020 and $0.3040.
Go to Source
Author: Aayush Jindal
Ethereum price is currently correcting higher, but it is facing a strong resistance near $180 against the US Dollar.Bitcoin price is up more than 1.5%, but it is also facing resistance $8,120 and $8,200.This week’s followed major bearish trend line was breached with resistance near $174 on the hourly chart of ETH/USD (data feed via Kraken).The pair is clearly facing a strong resistance near the $180 level and the 100 hourly SMA.Ethereum price is currently recovering higher versus the US Dollar, similar to Looking at the chart, Ethereum price is facing a strong resistance near the $180 level and the 100 hourly SMA. If there is a successful close above $180, the price could recover towards the $185 level. An intermediate resistance is near the 61.8% Fib retracement level of the last decline from the $188 high to $171 low.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is likely to move into the bearish zone.Hourly RSI – The RSI for ETH/USD is currently moving lower towards the 50 level.Major Support Level – $170Major Resistance Level – $180
Go to Source
Author: Aayush Jindal
Sydney-based financial services licensee Lime FS has agreed to voluntarily shut down two of its robo-advice tools after concerns were raised by Australian Securities and Investments Commission (ASIC).
The robo-advice tools owned by Lime FS — Plenty Wealth and Lime Wealth — are authorised to provide automated personal financial advice to consumers about life insurance, budgeting, tax, investments, and superannuation. Both tools operate using algorithms and technology, without direct involvement of a human adviser.
However, ASIC said after reviewing a sample advice file from Plenty Wealth and Lime Wealth, the quality of advice generated by the automated online tools were “inadequate”. In some instances, the advice generated by the tools conflicted with client goals or other recommendations also generated by the tools.
“Digital advice tools offer a convenient and low-cost alternative to consumers who may otherwise not seek personal financial advice. However, the advice provided through these tools must meet the same legal obligations required of human advisers — the advice must be appropriate to the client and comply with the best interests duty,” ASIC commissioner Danielle Press warned.
ASIC said it was also concerned by Lime FS’ ability to monitor the advice generated from these tools.
“ASIC expects AFS licensees and financial advisers using or recommending digital advice tools to ensure that they adequately monitor and test the advice for quality and appropriateness,” Press said.
See also: Artificial intelligence ethics policy (TechRepublic)
It’s cases such as these that have sparked the likes of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) into calling for the development of artificial intelligence (AI) with a sufficient framework to ensure nothing is set onto citizens without appropriate ethical consideration.
Data61, CSIRO’s digital innovation arm, published a discussion paper in April on the key issues raised by large-scale AI, seeking answers to a handful of questions that are expected to inform the government’s approach to AI ethics in Australia.
Conceding that there is no one-size-fits all solution to the range of legal and ethical implications issues related to AI, CSIRO identified nine tools it says could be used to assess risk and ensure compliance and oversight.
These were impact assessments, reviews, risk assessments, best practice guidelines, industry standards, collaboration, monitoring and improvement mechanisms, recourse mechanisms, and consultation.
The Australian National University recently launched a research project to focus on designing Australian values into AI systems.
The humanising machine intelligence (HMI) project will see 17 core researchers involved in building a design framework for moral machine intelligence (MMI) that can be widely deployed.
Head of School of Philosophy at the ANU Seth Lazar previously told ZDNet the need to develop moral AI comes off the back of recent concerns about existing AI systems.
“The thing that triggers my concern about AI is there [are] so many ways in which we could use AI for social good but over the last year or two it has become apparent that there are potentially a lot of unintended consequences in which AI could potentially be made for bad reasons,” he said. “So there’s huge demand and interest for developing AI with moral values.”
Go to Source
Author: Team E-crypto News