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How to invest in bitcoin without getting hurt by volatility

The bread blog

Do you think that bitcoin might be a good investment, but don’t want to rail the roller coaster of volatility? Do you wish you could invest in bitcoin while reducing the bite of unexpected swings in price? If so, this post is for you.

Over the last eight years, bitcoin has made headlines for its violent movements in price. With unprecedented impulses, both upwards and downwards, bitcoin tests the emotions of people who own and trade the world’s most popular cryptocurrency. It feels good when your investment goes up 10% in a single day, but terrible when the market moves against you.

We aren’t going to dwell on the reasons for this volatility, but suffice it to say that as bitcoin matures into a globally trusted store of wealth, its volatility should proceed to decrease. But even however the price is much less sensitive today than it was a few years ago, it still bounces around enough to make the average investor dizzy.

Let’s begin by taking a look at an example of what can happen if you don’t have a disciplined strategy to treat volatility. Imagine that it is January 1st, 2013. Bitcoin is trading at about $13 per coin. You determine to speculate a little and buy ten bitcoin for $130. By October 30th, bitcoin is at $194 per coin, netting you a comfy $1,810 build up from your initial investment. Wow, what a rail! You wish you had bought more. You determine to be responsible and sell half of your bitcoin. But the joy isn’t over yet. Despite the incredible rise up to that point, bitcoin hasn’t even gotten began. By November 30th, 2013, bitcoin is now trading at it’s all time high of more than $1,100 per coin.

You begin to fright. Maybe you shouldn’t have sold half of your bitcoin? You still have five BTC, or $Five,500 worth, plus the $970 in cash that you received when you sold the other half. But what if this is only the beginning? What if bitcoin is going to $Ten,000 next?

So you buy. But this time, you empty your entire savings account, and scrape together $20,000. Bitcoin is going to the moon and you are going all in with more than eighteen BTC! Then December 1st rolls around and the price drops 10%. Uh oh. That doesn’t feel good. But the real agony is yet to come. Over the next eighteen months you witness your precious investment leisurely disintegrate, bottoming out at under $200 per coin. Congratulations, you’ve turned $20,000 into $Trio,600, a -82% comeback.

We’ve all very likely heard stories like this one before. Some of us are unlucky enough to have lived through something similar. The bad news is that we can’t switch human nature: people will always buy and sell assets with some degree of emotion involved. The good news is that there is a elementary, time-tested strategy for combating high volatility known as dollar-cost averaging: investing the same amount of money on a regular basis (e.g. buying $50 worth of bitcoin each month, regardless of price). Using this technology permits you to dramatically reduce your risk, while providing up some potential comes back.

Let’s take a look at a brief analysis to demonstrate just how powerful the effect can be. For our comparison, we’re going to model the finances of Jill and Bob. Both have an extra $50 every month that they would like to save or invest. Jill determines to put her money into bitcoin, and Bob, who is a little more risk reluctant, determines to keep his money in cash. We’re going to see who has more in savings after a duo different time frames, to determine whether dollar-cost averaging indeed protects us from troughs and spikes in the bitcoin price.

We’ll examine two different embarking dates, and for our end date, we’re going to roll back the clock seven months ago to September 1st, two thousand sixteen when the price of bitcoin was $450. This is a good place to stop because since then, the price of bitcoin has skyrocketed and a bitcoin holder couldn’t lose money if they attempted.

Very first, let’s have a little joy, and imagine that Jill and Bob began their parallel journeys on August 1st, 2010. The price of bitcoin on that day was $0.05 per coin, and for her very first contribution, Jill collected eight hundred eighteen BTC. No, that’s not a typo! Bob, meantime, stashed $50 under his mattress.

So what happens when we rapid forward to our end date on September 1st, 2016? The bottom line: Jill has $1,540,587 in savings (Trio,432 BTC at $450 per coin), and Bob has $Three,300:

Clearly Jill is the winner, but winning is effortless if we embark the experiment during the early days, when a single bitcoin was worth pennies. You’ll notice that her spectacle (shown in blue) is so good that Bob’s savings (shown in crimson) show up to be plane. But we’re attempting to figure out if dollar-cost averaging works in any situation, including times when the price completes lower than it commenced. Let’s take a look at what happens if Jill and Bob begin their competition at the absolute worst time possible, when bitcoin began its prolonged decline from $1,100 on November 30th, 2013. Here’s what the numbers look like:

Here, the story gets a little more interesting. Instantaneously following the crash in bitcoin price, Bob pulls ahead of Jill, and proceeds to do better for almost two years. But because Jill was accumulating so much bitcoin at depressed prices, when bitcoin began to rise again, the value of her savings tripled. Kicking off at $1,100 per coin, railing the grind to $200 and ending at $450 per coin, Jill’s final balance actually strike Bob’s by $348!

That’s how dollar cost averaging protects you in the long run: you end up buying less of the asset when the price is high, and more of the asset when the price is low. Over time, the dips helped Jill to accumulate more bitcoin, and the deeper the dips, the more upside she realized when the price rebounded.

This mechanism is superb for people who believe in the potential of bitcoin, but don’t want to make a mistake and time the market incorrectly. By setting a regular buy of a immobile dollar amount, you’ll be able to feel comfy with your bitcoin investment despite which direction the price goes in the brief run.

If you liked this post and want to be notified about significant developments in the bitcoin world, subscribe to our mailing list.

How to invest in bitcoin without getting hurt by volatility

The bread blog

Do you think that bitcoin might be a good investment, but don’t want to rail the roller coaster of volatility? Do you wish you could invest in bitcoin while reducing the bite of unexpected swings in price? If so, this post is for you.

Over the last eight years, bitcoin has made headlines for its violent movements in price. With unprecedented impulses, both upwards and downwards, bitcoin tests the emotions of people who own and trade the world’s most popular cryptocurrency. It feels good when your investment goes up 10% in a single day, but terrible when the market moves against you.

We aren’t going to dwell on the reasons for this volatility, but suffice it to say that as bitcoin matures into a globally trusted store of wealth, its volatility should proceed to decrease. But even tho’ the price is much less sensitive today than it was a few years ago, it still bounces around enough to make the average investor dizzy.

Let’s begin by taking a look at an example of what can happen if you don’t have a disciplined strategy to treat volatility. Imagine that it is January 1st, 2013. Bitcoin is trading at about $13 per coin. You determine to speculate a little and buy ten bitcoin for $130. By October 30th, bitcoin is at $194 per coin, netting you a convenient $1,810 build up from your initial investment. Wow, what a rail! You wish you had bought more. You determine to be responsible and sell half of your bitcoin. But the joy isn’t over yet. Despite the incredible rise up to that point, bitcoin hasn’t even gotten began. By November 30th, 2013, bitcoin is now trading at it’s all time high of more than $1,100 per coin.

You commence to scare. Maybe you shouldn’t have sold half of your bitcoin? You still have five BTC, or $Five,500 worth, plus the $970 in cash that you received when you sold the other half. But what if this is only the beginning? What if bitcoin is going to $Ten,000 next?

So you buy. But this time, you empty your entire savings account, and scrape together $20,000. Bitcoin is going to the moon and you are going all in with more than eighteen BTC! Then December 1st rolls around and the price drops 10%. Uh oh. That doesn’t feel good. But the real ache is yet to come. Over the next eighteen months you see your precious investment leisurely disintegrate, bottoming out at under $200 per coin. Congratulations, you’ve turned $20,000 into $Trio,600, a -82% comeback.

We’ve all very likely heard stories like this one before. Some of us are unlucky enough to have lived through something similar. The bad news is that we can’t switch human nature: people will always buy and sell assets with some degree of emotion involved. The good news is that there is a elementary, time-tested strategy for combating high volatility known as dollar-cost averaging: investing the same amount of money on a regular basis (e.g. buying $50 worth of bitcoin each month, regardless of price). Using this mechanism permits you to dramatically reduce your risk, while providing up some potential comebacks.

Let’s take a look at a brief analysis to demonstrate just how powerful the effect can be. For our comparison, we’re going to model the finances of Jill and Bob. Both have an extra $50 every month that they would like to save or invest. Jill determines to put her money into bitcoin, and Bob, who is a little more risk reluctant, determines to keep his money in cash. We’re going to see who has more in savings after a duo different time frames, to determine whether dollar-cost averaging indeed protects us from troughs and spikes in the bitcoin price.

We’ll examine two different commencing dates, and for our end date, we’re going to roll back the clock seven months ago to September 1st, two thousand sixteen when the price of bitcoin was $450. This is a good place to stop because since then, the price of bitcoin has skyrocketed and a bitcoin holder couldn’t lose money if they attempted.

Very first, let’s have a little joy, and imagine that Jill and Bob began their parallel journeys on August 1st, 2010. The price of bitcoin on that day was $0.05 per coin, and for her very first contribution, Jill collected eight hundred eighteen BTC. No, that’s not a typo! Bob, meantime, stashed $50 under his mattress.

So what happens when we quick forward to our end date on September 1st, 2016? The bottom line: Jill has $1,540,587 in savings (Three,432 BTC at $450 per coin), and Bob has $Three,300:

Clearly Jill is the winner, but winning is effortless if we commence the experiment during the early days, when a single bitcoin was worth pennies. You’ll notice that her spectacle (shown in blue) is so fine that Bob’s savings (shown in crimson) emerge to be plane. But we’re attempting to figure out if dollar-cost averaging works in any situation, including times when the price completes lower than it began. Let’s take a look at what happens if Jill and Bob begin their competition at the absolute worst time possible, when bitcoin began its prolonged decline from $1,100 on November 30th, 2013. Here’s what the numbers look like:

Here, the story gets a little more interesting. Instantaneously following the crash in bitcoin price, Bob pulls ahead of Jill, and resumes to do better for almost two years. But because Jill was accumulating so much bitcoin at depressed prices, when bitcoin began to rise again, the value of her savings tripled. Kicking off at $1,100 per coin, railing the grind to $200 and ending at $450 per coin, Jill’s final balance actually strike Bob’s by $348!

That’s how dollar cost averaging protects you in the long run: you end up buying less of the asset when the price is high, and more of the asset when the price is low. Over time, the dips helped Jill to accumulate more bitcoin, and the deeper the dips, the more upside she realized when the price rebounded.

This mechanism is excellent for people who believe in the potential of bitcoin, but don’t want to make a mistake and time the market incorrectly. By setting a regular buy of a immobilized dollar amount, you’ll be able to feel comfy with your bitcoin investment despite which direction the price goes in the brief run.

If you loved this post and want to be notified about significant developments in the bitcoin world, subscribe to our mailing list.

How to invest in bitcoin without getting hurt by volatility

The bread blog

Do you think that bitcoin might be a superb investment, but don’t want to rail the roller coaster of volatility? Do you wish you could invest in bitcoin while reducing the nibble of unexpected swings in price? If so, this post is for you.

Over the last eight years, bitcoin has made headlines for its violent movements in price. With unprecedented impulses, both upwards and downwards, bitcoin tests the emotions of people who own and trade the world’s most popular cryptocurrency. It feels good when your investment goes up 10% in a single day, but terrible when the market moves against you.

We aren’t going to dwell on the reasons for this volatility, but suffice it to say that as bitcoin matures into a globally trusted store of wealth, its volatility should proceed to decrease. But even however the price is much less sensitive today than it was a few years ago, it still bounces around enough to make the average investor dizzy.

Let’s begin by taking a look at an example of what can happen if you don’t have a disciplined strategy to treat volatility. Imagine that it is January 1st, 2013. Bitcoin is trading at about $13 per coin. You determine to speculate a little and buy ten bitcoin for $130. By October 30th, bitcoin is at $194 per coin, netting you a comfy $1,810 build up from your initial investment. Wow, what a rail! You wish you had bought more. You determine to be responsible and sell half of your bitcoin. But the joy isn’t over yet. Despite the incredible rise up to that point, bitcoin hasn’t even gotten began. By November 30th, 2013, bitcoin is now trading at it’s all time high of more than $1,100 per coin.

You embark to fright. Maybe you shouldn’t have sold half of your bitcoin? You still have five BTC, or $Five,500 worth, plus the $970 in cash that you received when you sold the other half. But what if this is only the beginning? What if bitcoin is going to $Ten,000 next?

So you buy. But this time, you empty your entire savings account, and scrape together $20,000. Bitcoin is going to the moon and you are going all in with more than eighteen BTC! Then December 1st rolls around and the price drops 10%. Uh oh. That doesn’t feel good. But the real ache is yet to come. Over the next eighteen months you see your precious investment leisurely disintegrate, bottoming out at under $200 per coin. Congratulations, you’ve turned $20,000 into $Three,600, a -82% come back.

We’ve all very likely heard stories like this one before. Some of us are unlucky enough to have lived through something similar. The bad news is that we can’t switch human nature: people will always buy and sell assets with some degree of emotion involved. The good news is that there is a elementary, time-tested strategy for combating high volatility known as dollar-cost averaging: investing the same amount of money on a regular basis (e.g. buying $50 worth of bitcoin each month, regardless of price). Using this technology permits you to dramatically reduce your risk, while providing up some potential comebacks.

Let’s take a look at a brief analysis to demonstrate just how powerful the effect can be. For our comparison, we’re going to model the finances of Jill and Bob. Both have an extra $50 every month that they would like to save or invest. Jill determines to put her money into bitcoin, and Bob, who is a little more risk reluctant, determines to keep his money in cash. We’re going to see who has more in savings after a duo different time frames, to determine whether dollar-cost averaging indeed protects us from troughs and spikes in the bitcoin price.

We’ll examine two different kicking off dates, and for our end date, we’re going to roll back the clock seven months ago to September 1st, two thousand sixteen when the price of bitcoin was $450. This is a good place to stop because since then, the price of bitcoin has skyrocketed and a bitcoin holder couldn’t lose money if they attempted.

Very first, let’s have a little joy, and imagine that Jill and Bob began their parallel journeys on August 1st, 2010. The price of bitcoin on that day was $0.05 per coin, and for her very first contribution, Jill collected eight hundred eighteen BTC. No, that’s not a typo! Bob, meantime, stashed $50 under his mattress.

So what happens when we quick forward to our end date on September 1st, 2016? The bottom line: Jill has $1,540,587 in savings (Three,432 BTC at $450 per coin), and Bob has $Trio,300:

Clearly Jill is the winner, but winning is effortless if we begin the experiment during the early days, when a single bitcoin was worth pennies. You’ll notice that her spectacle (shown in blue) is so good that Bob’s savings (shown in crimson) show up to be vapid. But we’re attempting to figure out if dollar-cost averaging works in any situation, including times when the price completes lower than it began. Let’s take a look at what happens if Jill and Bob begin their competition at the absolute worst time possible, when bitcoin began its prolonged decline from $1,100 on November 30th, 2013. Here’s what the numbers look like:

Here, the story gets a little more interesting. Instantaneously following the crash in bitcoin price, Bob pulls ahead of Jill, and proceeds to do better for almost two years. But because Jill was accumulating so much bitcoin at depressed prices, when bitcoin began to rise again, the value of her savings tripled. Embarking at $1,100 per coin, railing the grind to $200 and ending at $450 per coin, Jill’s final balance actually strike Bob’s by $348!

That’s how dollar cost averaging protects you in the long run: you end up buying less of the asset when the price is high, and more of the asset when the price is low. Over time, the dips helped Jill to accumulate more bitcoin, and the deeper the dips, the more upside she realized when the price rebounded.

This mechanism is fine for people who believe in the potential of bitcoin, but don’t want to make a mistake and time the market incorrectly. By setting a regular buy of a motionless dollar amount, you’ll be able to feel convenient with your bitcoin investment despite which direction the price goes in the brief run.

If you loved this post and want to be notified about significant developments in the bitcoin world, subscribe to our mailing list.

Related video:

How To Earn Bitcoin – ten Ways – one hundred one Websites

How To Earn Bitcoin: ten Ways & one hundred one Websites

  • Cash Poker Pro: Anonymous, Secure Online Poker [ICO crowdsale] – August 28, 2017
  • Iconomi: The Easiest Way to Invest in Cryptocurrency? – August Two, 2017
  • CoinLend: Earn Interest on CryptoCurrency (& USD) with this Fee Free Lending Bot – July Ten, 2017

Today there are almost as many ways to earn bitcoin as there are ways to earn any other kind of money. In one sense that makes this an effortless article to write – its not difficult to learn how to earn bitcoins. In other ways it makes it very raunchy to write, because there is no ‘one-size fits all’ reaction which is going to suite everybody who might end up on this page.

In all honesty the best way to earn bitcoin is just to stop thinking about it as something different from the regular fiat money that you use everyday. How do you get money usually? Well, that is most likely how you should go about earning digital currency as well. But of course I do realize that its not always that elementary. Perhaps you just want to get hold of a puny amount of Bitcoin to attempt it out before buying some. You may also be fighting to earn money at all, and are interested in exploring fresh opportunities within this arousing fresh economy, or using it to supplement your income. And, of course,not very many bosses are going to be blessed to pay you in BTC, so you may not think it is possible for you to earn bitcoin the same way you earn fiat money (hint: it is possible). If any of those screenplays apply to you, then hopefully this page can be of some help, at least pointing you in the right direction.

Because there are so many different opportunities out there, my guide on how to earn bitcoin will not provide a comprehensive list of every single website. Instead I will introduce you to around ten general strategies with some links to a few of the best websites for each one and information about how to find more. The one hundred one websites from the title includes sites listed in other Cryptorials articles which this page links to.

Get Rewarded in Bitcoin for Your Crypto Investment Intelligence

KoCurrency offers cryptocurrency investors the chance to pledge intelligence on intelligence contracts which ask users elementary yes / no investment questions. The platform, amongst other things, acts as a predictions platform that zero’s in on the prediction patterns of the smartest members of the crowd. Users who continuously pledge intelligence correctly will earn Intelligence Tokens which can later be converted into Bitcoin. Users can pledge intelligence on many different subjects including bitcoin, ethereum, litecoin, ripple and more. Essentially, KoCurrency permits users to sell the value they create within the platform in exchange for bitcoin. Take their cyptocurrency predictions platform for a spin.

Get Bitcoin Tips

You’ll find some other tipping platforms further down the page, but I thought it was worth pointing you to the Cryptorials reviews of BitForTip and Zapchain to kick things off. BitforTip is a Q&A site where the best reaction gets a bitcoin peak, and Zapchain is a reddit style social network where you can earn tips for posting and commenting.

Earn Bitcoins From Faucet Websites

If you are just looking for a quick and effortless way to get a puny amount of bitcoin then faucets might be exactly what you are looking for. A faucet is just a website which gives free coins to every visitor. You will have to pack out a captcha to prove you are a real life human being and not an automated bot attempting to game the system, you may need to let your balance build up to a threshold level before the coins are sent (so they aren’t all eaten up by transaction fees), and there will usually be a limit on how often you can claim from each site; but apart from that its just as ordinary as providing your wallet address and asking for some free coins to be sent to you. Some of these site are set up by enthusiasts who just want to introduce fresh people to digital currency, but today most faucets support themselves using advertising placed on the site.

You are certainly not going to earn a living using faucets – even if you are living in a basic wooden hut in the very cheapest location in the world you would most likely not be able to do that. But you can quickly and lightly get a few coins to get yourself began and make a test transaction or two to get familiar with using digital currency without needing to buy any coins.

Here are some of the best faucet websites:cet

  1. Moon Bitcoin – You can choose to claim every five minutes to maximize your earnings over the day, or claim once per day for the highest payout per claim.
  2. FreeBitco.in – One of the longest running faucet sites around, with a generous hourly payout.

Bitcoin Mining

Unless you have access to the best wholesale tens unit prices in the world, you most likely aren’t going to make a profit from buying mining hardware to run at home, albeit some people still like to do it as a joy way to earn bitcoins which also contributes something to running the network.

For others cloud mining is a more realistic alternative – but beware, there has been a number of instances of con artists setting up a fake cloud mining business which is actually just taking people’s money only for the business’s owners to vanish overnight with all the coins. To help you out with finding the real ones and side-stepping the scams we’ve compiled a comparison of what we think are the best cloud mining sites. Using one of these won’t assure you a profit, there are many factors which influence your earnings including the price per coin, hash rate, electrical play price and so on, so make sure you do your homework, but it should give you the best possible embark. There are also some offers and bonuses listed, such as a free welcome bonus you can get just for registering.

GPT Websites and ‘Microtasks’

One step up from faucets are GPT websites where you ‘get paid to’ do various quick tasks, sometimes called ‘microtasks’. Again, you are not going to make a decent living for yourself by using these websites, but if you have time on your forearms and you are looking for something you can embark straight away and proceed to do whenever you have a few spare minutes, and which will earn you a few more coins that you can get from just claiming from faucets, then these sites may be worth a look.

Typically tasks can range from watching youtube movies that somebody is paying to promote, to clicking ad links and spending thirty seconds on a website, to packing out surveys and completing offers, or even doing a little bit of basic data entry.

Here are some of the best sites to ‘get paid to’ do plain tasks:

  1. CoinBucks – A broad range of surveys as well as various promotional offers, some of which require you to make a purchase and some of which just want you to do things like accept a free thirty day trial or download some free software. You may not find a lot of offers you want to finish, but you do get a truly good amount of BTC per suggest.
  2. CoinAd – Get paid to click advert links and spend a certain amount of time on each site (usually thirty seconds or less). I’ve tested out a few similar services and this one seems to have the highest payments.
  3. BitcoinYellowPages – This directory service pays for the microtask of submitting business listings. If you can do a little bit of research and data entry then it might be worth a look.

Earn Bitcoins as a Content Producer

If you can create premium digital content then you will find that Bitcoin provides the flawless way for you to sell it over the internet.

  1. Bittit – If you have photographs or other pictures to sell then you could do worse than to take a look at this site, which provides a market for both stock photos and pornographic photos.
  2. See My Bit – Upload your movies to this site and select your own ‘pay per view’ price.
  3. Streamium – Stream live movie to your fans, charge per 2nd, and get paid directly via the blockchain with no middlemen.
  4. Pastecoin – You can sell any text paste with this service, but it is most commonly used as a market for code snippets and plain website scripts.

Make A Website to Earn Bitcoin

Of course if you are going to produce digital content then you may choose to create your own website rather than permitting somebody else to publish it for you. There are explosions of fine ad networks and affiliate programs that will help you to generate bitcoin revenue from your site. Take a look at these articles for more information and ideas about publishing your own website:

Earn Bitcoins on Social Media

You don’t even need to have your own website to embark generating an income – if you are have a strong social media presence or you fancy yourself as a bit of a marketing guru, you can earn some free coins through social media. Here are some of the best websites that may help you do that:

  • Changetip – This is the most popular platform for tipping across many different social media sites, and even provides you with a custom-built link that you can add to your profile page to receive tips. Post fine content, make yourself useful, and wait for the tips to embark rolling in.
  • Coinurl.com – If you are a prolific link sharer who gets a lot of clicks on everything you share then interstitial ad services like Coinurl suggest you a way to earn coins from every link you share with your followers by placing an ad before the content you are sharing.
  • ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ – Check out the referral / affiliate programs mentioned in the previous section – you can promote these and earn using social media too!
  • Re 2et in – Get paid in BTC for retweeting sponsored tweets.

Get A Job Which Pays in Bitcoin

  1. Coinality -Global jobs board and the option to upload your resume
  2. Bit Task – Mostly freelance work
  3. CoinDesk Jobs – Well paid total time positions, including listings from some major employers who are willing to pay you in BTC.
  4. BitcoinTalk Services Board – A good place to look for casual and freelance work within the digital currency industry.

Get Your Regular Wage in BTC

If you have a job then you can get paid in Bitcoin. It doesn’t even matter if your boss has never heard of cryptocurrency or even if they are a strident critic of it – you can get your regular wage paid to you in digital currency without your boss even knowing about it. The following services will take your paycheck and either convert the entire thing, or just convert a portion of it, and automatically send the coins to your digital wallet.

  1. BitWage – This is the best known company providing a service like this. They provide you with bank details to give to your employer, then when you get paid they convert whatever percentage you want and send your money to you the next day.
  2. Get Paid in Bitcoin – An Australian service provider which will work with your employer to let them lightly pay your wage the way you want it to be paid.

Sell Stuff

If you are looking for some spare cash to provide a one-off boost to your finances then digging through your old stuff and picking out a few things that you no longer need to sell on over the internet is a good way to go. But of course you can’t just go to eBay if you want to sell your stuff for BTC. Fortunately, there are some good alternatives out there which let you do exactly that. This may also be a fine way for you to embark off your own business if have something that people want to buy. Here are some of the best sites to earn bitcoin by selling stuff online:

  1. CryptoThrift – This site is amongst the most popular auctions sites which let you sell your things for either bitcoin or one of the supported altcoins.
  2. BidBit – Another good ebay-style auction website for bitcoiners.
  3. Shopify – If you want to go beyond just selling a few old things and actually look into setting up your own retail business then Shopify provides one of the world’s most popular ways to set up an online store, and will let you sell for either bitcoin, fiat, or both.
  4. Open Bazaar – This decentralized marketplace provides a way to buy and sell anything for BTC. Here’s why its better than eBay.

Bitcoin Revenue Sharing

Many website today are based around ‘user generated content’. That means they provide a platform, whether its a social network, a blog publishing site, an picture sharing site, or a thousand other things, and their users actually pack it up with useful stuff. To many people that doesn’t seem very fair, because the site’s users are providing most of the value but getting nothing in come back. Revenue sharing is a way to even out that imbalance by paying part of the advertising revenue generated by a lump of content (which could be anything from a social media post to a movie) o the person who originally posted it. There are fountains of revenue sharing sites out there which pay in bitcoin, but here is a selection of the best ones:

  1. BitLanders – A social media website where it truly does pay to share.
  2. Paste4BTC – Get a share of the ad revenue from your text pastes.
  3. Taringa – A Latin American social media site with digital currency revenue sharing

Earn Bitcoins Playing Movie Games

Yes, you read that right – you can get paid to play movie games. Of course you very likely aren’t going to earn all that much, but I can’t think of a more pleasurable way to get paid.

There are actually dozens of sites in this category so if you are interested please take a look at the total list in our Get Paid to Play Movie Games article!

Become A Bitcoin Broker

If you have a bit of capital to commence off with (you don’t need a fortune, but >1 btc at least) then you can set yourself up as a broker, buying and selling coins with other users in your area. You can do this solo through a peer-to-peer marketplace such as local bitcoins, or you can sign up with LakeBTC which is looking for ‘Lake Bankers’ to operate as a kind of broker through their site.

How To Earn Bitcoin – ten Ways – one hundred one Websites

How To Earn Bitcoin: ten Ways & one hundred one Websites

  • Cash Poker Pro: Anonymous, Secure Online Poker [ICO crowdsale] – August 28, 2017
  • Iconomi: The Easiest Way to Invest in Cryptocurrency? – August Two, 2017
  • CoinLend: Earn Interest on CryptoCurrency (& USD) with this Fee Free Lending Bot – July Ten, 2017

Today there are almost as many ways to earn bitcoin as there are ways to earn any other kind of money. In one sense that makes this an effortless article to write – its not difficult to learn how to earn bitcoins. In other ways it makes it very rough to write, because there is no ‘one-size fits all’ reaction which is going to suite everybody who might end up on this page.

In all honesty the best way to earn bitcoin is just to stop thinking about it as something different from the regular fiat money that you use everyday. How do you get money usually? Well, that is very likely how you should go about earning digital currency as well. But of course I do realize that its not always that ordinary. Perhaps you just want to get hold of a petite amount of Bitcoin to attempt it out before buying some. You may also be fighting to earn money at all, and are interested in exploring fresh opportunities within this titillating fresh economy, or using it to supplement your income. And, of course,not very many bosses are going to be blessed to pay you in BTC, so you may not think it is possible for you to earn bitcoin the same way you earn fiat money (hint: it is possible). If any of those screenplays apply to you, then hopefully this page can be of some help, at least pointing you in the right direction.

Because there are so many different opportunities out there, my guide on how to earn bitcoin will not provide a comprehensive list of every single website. Instead I will introduce you to around ten general strategies with some links to a few of the best websites for each one and information about how to find more. The one hundred one websites from the title includes sites listed in other Cryptorials articles which this page links to.

Get Rewarded in Bitcoin for Your Crypto Investment Intelligence

KoCurrency offers cryptocurrency investors the chance to pledge intelligence on intelligence contracts which ask users ordinary yes / no investment questions. The platform, amongst other things, acts as a predictions platform that zero’s in on the prediction patterns of the smartest members of the crowd. Users who continuously pledge intelligence correctly will earn Intelligence Tokens which can later be converted into Bitcoin. Users can pledge intelligence on many different subjects including bitcoin, ethereum, litecoin, ripple and more. Essentially, KoCurrency permits users to sell the value they create within the platform in exchange for bitcoin. Take their cyptocurrency predictions platform for a spin.

Get Bitcoin Tips

You’ll find some other tipping platforms further down the page, but I thought it was worth pointing you to the Cryptorials reviews of BitForTip and Zapchain to kick things off. BitforTip is a Q&A site where the best response gets a bitcoin peak, and Zapchain is a reddit style social network where you can earn tips for posting and commenting.

Earn Bitcoins From Faucet Websites

If you are just looking for a quick and effortless way to get a petite amount of bitcoin then faucets might be exactly what you are looking for. A faucet is just a website which gives free coins to every visitor. You will have to pack out a captcha to prove you are a real life human being and not an automated bot attempting to game the system, you may need to let your balance build up to a threshold level before the coins are sent (so they aren’t all eaten up by transaction fees), and there will usually be a limit on how often you can claim from each site; but apart from that its just as ordinary as providing your wallet address and asking for some free coins to be sent to you. Some of these site are set up by enthusiasts who just want to introduce fresh people to digital currency, but today most faucets support themselves using advertising placed on the site.

You are certainly not going to earn a living using faucets – even if you are living in a basic wooden hut in the very cheapest location in the world you would very likely not be able to do that. But you can quickly and lightly get a few coins to get yourself embarked and make a test transaction or two to get familiar with using digital currency without needing to buy any coins.

Here are some of the best faucet websites:cet

  1. Moon Bitcoin – You can choose to claim every five minutes to maximize your earnings over the day, or claim once per day for the highest payout per claim.
  2. FreeBitco.in – One of the longest running faucet sites around, with a generous hourly payout.

Bitcoin Mining

Unless you have access to the best wholesale electro-stimulation prices in the world, you most likely aren’t going to make a profit from buying mining hardware to run at home, albeit some people still like to do it as a joy way to earn bitcoins which also contributes something to running the network.

For others cloud mining is a more realistic alternative – but beware, there has been a number of instances of con artists setting up a fake cloud mining business which is actually just taking people’s money only for the business’s owners to vanish overnight with all the coins. To help you out with finding the real ones and side-stepping the scams we’ve compiled a comparison of what we think are the best cloud mining sites. Using one of these won’t assure you a profit, there are many factors which influence your earnings including the price per coin, hash rate, electrical play price and so on, so make sure you do your homework, but it should give you the best possible embark. There are also some offers and bonuses listed, such as a free welcome bonus you can get just for registering.

GPT Websites and ‘Microtasks’

One step up from faucets are GPT websites where you ‘get paid to’ do various quick tasks, sometimes called ‘microtasks’. Again, you are not going to make a decent living for yourself by using these websites, but if you have time on your forearms and you are looking for something you can begin straight away and proceed to do whenever you have a few spare minutes, and which will earn you a few more coins that you can get from just claiming from faucets, then these sites may be worth a look.

Typically tasks can range from watching youtube movies that somebody is paying to promote, to clicking ad links and spending thirty seconds on a website, to packing out surveys and completing offers, or even doing a little bit of basic data entry.

Here are some of the best sites to ‘get paid to’ do elementary tasks:

  1. CoinBucks – A broad range of surveys as well as various promotional offers, some of which require you to make a purchase and some of which just want you to do things like accept a free thirty day trial or download some free software. You may not find a lot of offers you want to finish, but you do get a indeed good amount of BTC per suggest.
  2. CoinAd – Get paid to click advert links and spend a certain amount of time on each site (usually thirty seconds or less). I’ve tested out a few similar services and this one seems to have the highest payments.
  3. BitcoinYellowPages – This directory service pays for the microtask of submitting business listings. If you can do a little bit of research and data entry then it might be worth a look.

Earn Bitcoins as a Content Producer

If you can create premium digital content then you will find that Bitcoin provides the ideal way for you to sell it over the internet.

  1. Bittit – If you have photographs or other photos to sell then you could do worse than to take a look at this site, which provides a market for both stock photos and pornographic pictures.
  2. Observe My Bit – Upload your movies to this site and select your own ‘pay per view’ price.
  3. Streamium – Stream live movie to your fans, charge per 2nd, and get paid directly via the blockchain with no middlemen.
  4. Pastecoin – You can sell any text paste with this service, but it is most commonly used as a market for code snippets and elementary website scripts.

Make A Website to Earn Bitcoin

Of course if you are going to produce digital content then you may choose to create your own website rather than permitting somebody else to publish it for you. There are explosions of good ad networks and affiliate programs that will help you to generate bitcoin revenue from your site. Take a look at these articles for more information and ideas about publishing your own website:

Earn Bitcoins on Social Media

You don’t even need to have your own website to commence generating an income – if you are have a strong social media presence or you fancy yourself as a bit of a marketing guru, you can earn some free coins through social media. Here are some of the best websites that may help you do that:

  • Changetip – This is the most popular platform for tipping across many different social media sites, and even provides you with a custom-made link that you can add to your profile page to receive tips. Post superb content, make yourself useful, and wait for the tips to commence rolling in.
  • Coinurl.com – If you are a prolific link sharer who gets a lot of clicks on everything you share then interstitial ad services like Coinurl suggest you a way to earn coins from every link you share with your followers by placing an ad before the content you are sharing.
  • ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ – Check out the referral / affiliate programs mentioned in the previous section – you can promote these and earn using social media too!
  • Re 2et in – Get paid in BTC for retweeting sponsored tweets.

Get A Job Which Pays in Bitcoin

  1. Coinality -Global jobs board and the option to upload your resume
  2. Bit Task – Mostly freelance work
  3. CoinDesk Jobs – Well paid total time positions, including listings from some major employers who are willing to pay you in BTC.
  4. BitcoinTalk Services Board – A fine place to look for casual and freelance work within the digital currency industry.

Get Your Regular Wage in BTC

If you have a job then you can get paid in Bitcoin. It doesn’t even matter if your boss has never heard of cryptocurrency or even if they are a strident critic of it – you can get your regular wage paid to you in digital currency without your boss even knowing about it. The following services will take your paycheck and either convert the entire thing, or just convert a portion of it, and automatically send the coins to your digital wallet.

  1. BitWage – This is the best known company providing a service like this. They provide you with bank details to give to your employer, then when you get paid they convert whatever percentage you want and send your money to you the next day.
  2. Get Paid in Bitcoin – An Australian service provider which will work with your employer to let them lightly pay your wage the way you want it to be paid.

Sell Stuff

If you are looking for some spare cash to provide a one-off boost to your finances then digging through your old stuff and picking out a few things that you no longer need to sell on over the internet is a good way to go. But of course you can’t just go to eBay if you want to sell your stuff for BTC. Fortunately, there are some superb alternatives out there which let you do exactly that. This may also be a good way for you to begin off your own business if have something that people want to buy. Here are some of the best sites to earn bitcoin by selling stuff online:

  1. CryptoThrift – This site is amongst the most popular auctions sites which let you sell your things for either bitcoin or one of the supported altcoins.
  2. BidBit – Another excellent ebay-style auction website for bitcoiners.
  3. Shopify – If you want to go beyond just selling a few old things and actually look into setting up your own retail business then Shopify provides one of the world’s most popular ways to set up an online store, and will let you sell for either bitcoin, fiat, or both.
  4. Open Bazaar – This decentralized marketplace provides a way to buy and sell anything for BTC. Here’s why its better than eBay.

Bitcoin Revenue Sharing

Many website today are based around ‘user generated content’. That means they provide a platform, whether its a social network, a blog publishing site, an photo sharing site, or a thousand other things, and their users actually pack it up with useful stuff. To many people that doesn’t seem very fair, because the site’s users are providing most of the value but getting nothing in comeback. Revenue sharing is a way to even out that imbalance by paying part of the advertising revenue generated by a chunk of content (which could be anything from a social media post to a movie) o the person who originally posted it. There are fountains of revenue sharing sites out there which pay in bitcoin, but here is a selection of the best ones:

  1. BitLanders – A social media website where it indeed does pay to share.
  2. Paste4BTC – Get a share of the ad revenue from your text pastes.
  3. Taringa – A Latin American social media site with digital currency revenue sharing

Earn Bitcoins Playing Movie Games

Yes, you read that right – you can get paid to play movie games. Of course you very likely aren’t going to earn all that much, but I can’t think of a more pleasurable way to get paid.

There are actually dozens of sites in this category so if you are interested please take a look at the utter list in our Get Paid to Play Movie Games article!

Become A Bitcoin Broker

If you have a bit of capital to embark off with (you don’t need a fortune, but >1 btc at least) then you can set yourself up as a broker, buying and selling coins with other users in your area. You can do this solo through a peer-to-peer marketplace such as local bitcoins, or you can sign up with LakeBTC which is looking for ‘Lake Bankers’ to operate as a kind of broker through their site.

How To Earn Bitcoin – ten Ways – one hundred one Websites

How To Earn Bitcoin: ten Ways & one hundred one Websites

  • Cash Poker Pro: Anonymous, Secure Online Poker [ICO crowdsale] – August 28, 2017
  • Iconomi: The Easiest Way to Invest in Cryptocurrency? – August Two, 2017
  • CoinLend: Earn Interest on CryptoCurrency (& USD) with this Fee Free Lending Bot – July Ten, 2017

Today there are almost as many ways to earn bitcoin as there are ways to earn any other kind of money. In one sense that makes this an effortless article to write – its not difficult to learn how to earn bitcoins. In other ways it makes it very raunchy to write, because there is no ‘one-size fits all’ response which is going to suite everybody who might end up on this page.

In all honesty the best way to earn bitcoin is just to stop thinking about it as something different from the regular fiat money that you use everyday. How do you get money usually? Well, that is very likely how you should go about earning digital currency as well. But of course I do realize that its not always that plain. Perhaps you just want to get hold of a petite amount of Bitcoin to attempt it out before buying some. You may also be fighting to earn money at all, and are interested in exploring fresh opportunities within this titillating fresh economy, or using it to supplement your income. And, of course,not very many bosses are going to be glad to pay you in BTC, so you may not think it is possible for you to earn bitcoin the same way you earn fiat money (hint: it is possible). If any of those scripts apply to you, then hopefully this page can be of some help, at least pointing you in the right direction.

Because there are so many different opportunities out there, my guide on how to earn bitcoin will not provide a comprehensive list of every single website. Instead I will introduce you to around ten general strategies with some links to a few of the best websites for each one and information about how to find more. The one hundred one websites from the title includes sites listed in other Cryptorials articles which this page links to.

Get Rewarded in Bitcoin for Your Crypto Investment Intelligence

KoCurrency offers cryptocurrency investors the chance to pledge intelligence on intelligence contracts which ask users elementary yes / no investment questions. The platform, amongst other things, acts as a predictions platform that zero’s in on the prediction patterns of the smartest members of the crowd. Users who continuously pledge intelligence correctly will earn Intelligence Tokens which can later be converted into Bitcoin. Users can pledge intelligence on many different subjects including bitcoin, ethereum, litecoin, ripple and more. Essentially, KoCurrency permits users to sell the value they create within the platform in exchange for bitcoin. Take their cyptocurrency predictions platform for a spin.

Get Bitcoin Tips

You’ll find some other tipping platforms further down the page, but I thought it was worth pointing you to the Cryptorials reviews of BitForTip and Zapchain to kick things off. BitforTip is a Q&A site where the best response gets a bitcoin peak, and Zapchain is a reddit style social network where you can earn tips for posting and commenting.

Earn Bitcoins From Faucet Websites

If you are just looking for a quick and effortless way to get a petite amount of bitcoin then faucets might be exactly what you are looking for. A faucet is just a website which gives free coins to every visitor. You will have to pack out a captcha to prove you are a real life human being and not an automated bot attempting to game the system, you may need to let your balance build up to a threshold level before the coins are sent (so they aren’t all eaten up by transaction fees), and there will usually be a limit on how often you can claim from each site; but apart from that its just as ordinary as providing your wallet address and asking for some free coins to be sent to you. Some of these site are set up by enthusiasts who just want to introduce fresh people to digital currency, but today most faucets support themselves using advertising placed on the site.

You are certainly not going to earn a living using faucets – even if you are living in a basic wooden hut in the very cheapest location in the world you would very likely not be able to do that. But you can quickly and lightly get a few coins to get yourself commenced and make a test transaction or two to get familiar with using digital currency without needing to buy any coins.

Here are some of the best faucet websites:cet

  1. Moon Bitcoin – You can choose to claim every five minutes to maximize your earnings over the day, or claim once per day for the highest payout per claim.
  2. FreeBitco.in – One of the longest running faucet sites around, with a generous hourly payout.

Bitcoin Mining

Unless you have access to the best wholesale electro-therapy prices in the world, you very likely aren’t going to make a profit from buying mining hardware to run at home, albeit some people still like to do it as a joy way to earn bitcoins which also contributes something to running the network.

For others cloud mining is a more realistic alternative – but beware, there has been a number of instances of con artists setting up a fake cloud mining business which is actually just taking people’s money only for the business’s owners to vanish overnight with all the coins. To help you out with finding the real ones and side-stepping the scams we’ve compiled a comparison of what we think are the best cloud mining sites. Using one of these won’t assure you a profit, there are many factors which influence your earnings including the price per coin, hash rate, electro-stimulation price and so on, so make sure you do your homework, but it should give you the best possible embark. There are also some offers and bonuses listed, such as a free welcome bonus you can get just for registering.

GPT Websites and ‘Microtasks’

One step up from faucets are GPT websites where you ‘get paid to’ do various quick tasks, sometimes called ‘microtasks’. Again, you are not going to make a decent living for yourself by using these websites, but if you have time on your mitts and you are looking for something you can begin straight away and proceed to do whenever you have a few spare minutes, and which will earn you a few more coins that you can get from just claiming from faucets, then these sites may be worth a look.

Typically tasks can range from watching youtube movies that somebody is paying to promote, to clicking ad links and spending thirty seconds on a website, to packing out surveys and completing offers, or even doing a little bit of basic data entry.

Here are some of the best sites to ‘get paid to’ do elementary tasks:

  1. CoinBucks – A broad range of surveys as well as various promotional offers, some of which require you to make a purchase and some of which just want you to do things like accept a free thirty day trial or download some free software. You may not find a lot of offers you want to finish, but you do get a indeed good amount of BTC per suggest.
  2. CoinAd – Get paid to click advert links and spend a certain amount of time on each site (usually thirty seconds or less). I’ve tested out a few similar services and this one seems to have the highest payments.
  3. BitcoinYellowPages – This directory service pays for the microtask of submitting business listings. If you can do a little bit of research and data entry then it might be worth a look.

Earn Bitcoins as a Content Producer

If you can create premium digital content then you will find that Bitcoin provides the ideal way for you to sell it over the internet.

  1. Bittit – If you have photographs or other photos to sell then you could do worse than to take a look at this site, which provides a market for both stock photos and pornographic pics.
  2. Witness My Bit – Upload your movies to this site and select your own ‘pay per view’ price.
  3. Streamium – Stream live movie to your fans, charge per 2nd, and get paid directly via the blockchain with no middlemen.
  4. Pastecoin – You can sell any text paste with this service, but it is most commonly used as a market for code snippets and plain website scripts.

Make A Website to Earn Bitcoin

Of course if you are going to produce digital content then you may choose to create your own website rather than permitting somebody else to publish it for you. There are fountains of excellent ad networks and affiliate programs that will help you to generate bitcoin revenue from your site. Take a look at these articles for more information and ideas about publishing your own website:

Earn Bitcoins on Social Media

You don’t even need to have your own website to embark generating an income – if you are have a strong social media presence or you fancy yourself as a bit of a marketing guru, you can earn some free coins through social media. Here are some of the best websites that may help you do that:

  • Changetip – This is the most popular platform for tipping across many different social media sites, and even provides you with a custom-made link that you can add to your profile page to receive tips. Post fine content, make yourself useful, and wait for the tips to commence rolling in.
  • Coinurl.com – If you are a prolific link sharer who gets a lot of clicks on everything you share then interstitial ad services like Coinurl suggest you a way to earn coins from every link you share with your followers by placing an ad before the content you are sharing.
  • ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ – Check out the referral / affiliate programs mentioned in the previous section – you can promote these and earn using social media too!
  • Re 2et in – Get paid in BTC for retweeting sponsored tweets.

Get A Job Which Pays in Bitcoin

  1. Coinality -Global jobs board and the option to upload your resume
  2. Bit Task – Mostly freelance work
  3. CoinDesk Jobs – Well paid utter time positions, including listings from some major employers who are willing to pay you in BTC.
  4. BitcoinTalk Services Board – A good place to look for casual and freelance work within the digital currency industry.

Get Your Regular Wage in BTC

If you have a job then you can get paid in Bitcoin. It doesn’t even matter if your boss has never heard of cryptocurrency or even if they are a strident critic of it – you can get your regular wage paid to you in digital currency without your boss even knowing about it. The following services will take your paycheck and either convert the entire thing, or just convert a portion of it, and automatically send the coins to your digital wallet.

  1. BitWage – This is the best known company providing a service like this. They provide you with bank details to give to your employer, then when you get paid they convert whatever percentage you want and send your money to you the next day.
  2. Get Paid in Bitcoin – An Australian service provider which will work with your employer to let them lightly pay your wage the way you want it to be paid.

Sell Stuff

If you are looking for some spare cash to provide a one-off boost to your finances then digging through your old stuff and picking out a few things that you no longer need to sell on over the internet is a good way to go. But of course you can’t just go to eBay if you want to sell your stuff for BTC. Fortunately, there are some superb alternatives out there which let you do exactly that. This may also be a fine way for you to begin off your own business if have something that people want to buy. Here are some of the best sites to earn bitcoin by selling stuff online:

  1. CryptoThrift – This site is amongst the most popular auctions sites which let you sell your things for either bitcoin or one of the supported altcoins.
  2. BidBit – Another excellent ebay-style auction website for bitcoiners.
  3. Shopify – If you want to go beyond just selling a few old things and actually look into setting up your own retail business then Shopify provides one of the world’s most popular ways to set up an online store, and will let you sell for either bitcoin, fiat, or both.
  4. Open Bazaar – This decentralized marketplace provides a way to buy and sell anything for BTC. Here’s why its better than eBay.

Bitcoin Revenue Sharing

Many website today are based around ‘user generated content’. That means they provide a platform, whether its a social network, a blog publishing site, an pic sharing site, or a thousand other things, and their users actually pack it up with useful stuff. To many people that doesn’t seem very fair, because the site’s users are providing most of the value but getting nothing in come back. Revenue sharing is a way to even out that imbalance by paying part of the advertising revenue generated by a lump of content (which could be anything from a social media post to a movie) o the person who originally posted it. There are fountains of revenue sharing sites out there which pay in bitcoin, but here is a selection of the best ones:

  1. BitLanders – A social media website where it indeed does pay to share.
  2. Paste4BTC – Get a share of the ad revenue from your text pastes.
  3. Taringa – A Latin American social media site with digital currency revenue sharing

Earn Bitcoins Playing Movie Games

Yes, you read that right – you can get paid to play movie games. Of course you very likely aren’t going to earn all that much, but I can’t think of a more pleasurable way to get paid.

There are actually dozens of sites in this category so if you are interested please take a look at the utter list in our Get Paid to Play Movie Games article!

Become A Bitcoin Broker

If you have a bit of capital to begin off with (you don’t need a fortune, but >1 btc at least) then you can set yourself up as a broker, buying and selling coins with other users in your area. You can do this solo through a peer-to-peer marketplace such as local bitcoins, or you can sign up with LakeBTC which is looking for ‘Lake Bankers’ to operate as a kind of broker through their site.

How To Earn Bitcoin – ten Ways – one hundred one Websites

How To Earn Bitcoin: ten Ways & one hundred one Websites

  • Cash Poker Pro: Anonymous, Secure Online Poker [ICO crowdsale] – August 28, 2017
  • Iconomi: The Easiest Way to Invest in Cryptocurrency? – August Two, 2017
  • CoinLend: Earn Interest on CryptoCurrency (& USD) with this Fee Free Lending Bot – July Ten, 2017

Today there are almost as many ways to earn bitcoin as there are ways to earn any other kind of money. In one sense that makes this an effortless article to write – its not difficult to learn how to earn bitcoins. In other ways it makes it very raunchy to write, because there is no ‘one-size fits all’ reaction which is going to suite everybody who might end up on this page.

In all honesty the best way to earn bitcoin is just to stop thinking about it as something different from the regular fiat money that you use everyday. How do you get money usually? Well, that is very likely how you should go about earning digital currency as well. But of course I do realize that its not always that ordinary. Perhaps you just want to get hold of a puny amount of Bitcoin to attempt it out before buying some. You may also be fighting to earn money at all, and are interested in exploring fresh opportunities within this arousing fresh economy, or using it to supplement your income. And, of course,not very many bosses are going to be glad to pay you in BTC, so you may not think it is possible for you to earn bitcoin the same way you earn fiat money (hint: it is possible). If any of those screenplays apply to you, then hopefully this page can be of some help, at least pointing you in the right direction.

Because there are so many different opportunities out there, my guide on how to earn bitcoin will not provide a comprehensive list of every single website. Instead I will introduce you to around ten general strategies with some links to a few of the best websites for each one and information about how to find more. The one hundred one websites from the title includes sites listed in other Cryptorials articles which this page links to.

Get Rewarded in Bitcoin for Your Crypto Investment Intelligence

KoCurrency offers cryptocurrency investors the chance to pledge intelligence on intelligence contracts which ask users elementary yes / no investment questions. The platform, amongst other things, acts as a predictions platform that zero’s in on the prediction patterns of the smartest members of the crowd. Users who continuously pledge intelligence correctly will earn Intelligence Tokens which can later be converted into Bitcoin. Users can pledge intelligence on many different subjects including bitcoin, ethereum, litecoin, ripple and more. Essentially, KoCurrency permits users to sell the value they create within the platform in exchange for bitcoin. Take their cyptocurrency predictions platform for a spin.

Get Bitcoin Tips

You’ll find some other tipping platforms further down the page, but I thought it was worth pointing you to the Cryptorials reviews of BitForTip and Zapchain to kick things off. BitforTip is a Q&A site where the best reaction gets a bitcoin peak, and Zapchain is a reddit style social network where you can earn tips for posting and commenting.

Earn Bitcoins From Faucet Websites

If you are just looking for a quick and effortless way to get a petite amount of bitcoin then faucets might be exactly what you are looking for. A faucet is just a website which gives free coins to every visitor. You will have to pack out a captcha to prove you are a real life human being and not an automated bot attempting to game the system, you may need to let your balance build up to a threshold level before the coins are sent (so they aren’t all eaten up by transaction fees), and there will usually be a limit on how often you can claim from each site; but apart from that its just as plain as providing your wallet address and asking for some free coins to be sent to you. Some of these site are set up by enthusiasts who just want to introduce fresh people to digital currency, but today most faucets support themselves using advertising placed on the site.

You are certainly not going to earn a living using faucets – even if you are living in a basic wooden hut in the very cheapest location in the world you would very likely not be able to do that. But you can quickly and lightly get a few coins to get yourself commenced and make a test transaction or two to get familiar with using digital currency without needing to buy any coins.

Here are some of the best faucet websites:cet

  1. Moon Bitcoin – You can choose to claim every five minutes to maximize your earnings over the day, or claim once per day for the highest payout per claim.
  2. FreeBitco.in – One of the longest running faucet sites around, with a generous hourly payout.

Bitcoin Mining

Unless you have access to the best wholesale violet wand prices in the world, you most likely aren’t going to make a profit from buying mining hardware to run at home, albeit some people still like to do it as a joy way to earn bitcoins which also contributes something to running the network.

For others cloud mining is a more realistic alternative – but beware, there has been a number of instances of con artists setting up a fake cloud mining business which is actually just taking people’s money only for the business’s owners to vanish overnight with all the coins. To help you out with finding the real ones and side-stepping the scams we’ve compiled a comparison of what we think are the best cloud mining sites. Using one of these won’t ensure you a profit, there are many factors which influence your earnings including the price per coin, hash rate, violet wand price and so on, so make sure you do your homework, but it should give you the best possible embark. There are also some offers and bonuses listed, such as a free welcome bonus you can get just for registering.

GPT Websites and ‘Microtasks’

One step up from faucets are GPT websites where you ‘get paid to’ do various quick tasks, sometimes called ‘microtasks’. Again, you are not going to make a decent living for yourself by using these websites, but if you have time on your palms and you are looking for something you can begin straight away and proceed to do whenever you have a few spare minutes, and which will earn you a few more coins that you can get from just claiming from faucets, then these sites may be worth a look.

Typically tasks can range from watching youtube movies that somebody is paying to promote, to clicking ad links and spending thirty seconds on a website, to packing out surveys and completing offers, or even doing a little bit of basic data entry.

Here are some of the best sites to ‘get paid to’ do ordinary tasks:

  1. CoinBucks – A broad range of surveys as well as various promotional offers, some of which require you to make a purchase and some of which just want you to do things like accept a free thirty day trial or download some free software. You may not find a lot of offers you want to accomplish, but you do get a indeed good amount of BTC per suggest.
  2. CoinAd – Get paid to click advert links and spend a certain amount of time on each site (usually thirty seconds or less). I’ve tested out a few similar services and this one seems to have the highest payments.
  3. BitcoinYellowPages – This directory service pays for the microtask of submitting business listings. If you can do a little bit of research and data entry then it might be worth a look.

Earn Bitcoins as a Content Producer

If you can create premium digital content then you will find that Bitcoin provides the ideal way for you to sell it over the internet.

  1. Bittit – If you have photographs or other photos to sell then you could do worse than to take a look at this site, which provides a market for both stock photos and pornographic pics.
  2. See My Bit – Upload your movies to this site and select your own ‘pay per view’ price.
  3. Streamium – Stream live movie to your fans, charge per 2nd, and get paid directly via the blockchain with no middlemen.
  4. Pastecoin – You can sell any text paste with this service, but it is most commonly used as a market for code snippets and ordinary website scripts.

Make A Website to Earn Bitcoin

Of course if you are going to produce digital content then you may choose to create your own website rather than permitting somebody else to publish it for you. There are fountains of superb ad networks and affiliate programs that will help you to generate bitcoin revenue from your site. Take a look at these articles for more information and ideas about publishing your own website:

Earn Bitcoins on Social Media

You don’t even need to have your own website to embark generating an income – if you are have a strong social media presence or you fancy yourself as a bit of a marketing guru, you can earn some free coins through social media. Here are some of the best websites that may help you do that:

  • Changetip – This is the most popular platform for tipping across many different social media sites, and even provides you with a custom-built link that you can add to your profile page to receive tips. Post fine content, make yourself useful, and wait for the tips to begin rolling in.
  • Coinurl.com – If you are a prolific link sharer who gets a lot of clicks on everything you share then interstitial ad services like Coinurl suggest you a way to earn coins from every link you share with your followers by placing an ad before the content you are sharing.
  • ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ ⇧ – Check out the referral / affiliate programs mentioned in the previous section – you can promote these and earn using social media too!
  • Re 2et in – Get paid in BTC for retweeting sponsored tweets.

Get A Job Which Pays in Bitcoin

  1. Coinality -Global jobs board and the option to upload your resume
  2. Bit Task – Mostly freelance work
  3. CoinDesk Jobs – Well paid total time positions, including listings from some major employers who are willing to pay you in BTC.
  4. BitcoinTalk Services Board – A fine place to look for casual and freelance work within the digital currency industry.

Get Your Regular Wage in BTC

If you have a job then you can get paid in Bitcoin. It doesn’t even matter if your boss has never heard of cryptocurrency or even if they are a strident critic of it – you can get your regular wage paid to you in digital currency without your boss even knowing about it. The following services will take your paycheck and either convert the entire thing, or just convert a portion of it, and automatically send the coins to your digital wallet.

  1. BitWage – This is the best known company providing a service like this. They provide you with bank details to give to your employer, then when you get paid they convert whatever percentage you want and send your money to you the next day.
  2. Get Paid in Bitcoin – An Australian service provider which will work with your employer to let them lightly pay your wage the way you want it to be paid.

Sell Stuff

If you are looking for some spare cash to provide a one-off boost to your finances then digging through your old stuff and picking out a few things that you no longer need to sell on over the internet is a good way to go. But of course you can’t just go to eBay if you want to sell your stuff for BTC. Fortunately, there are some fine alternatives out there which let you do exactly that. This may also be a fine way for you to begin off your own business if have something that people want to buy. Here are some of the best sites to earn bitcoin by selling stuff online:

  1. CryptoThrift – This site is amongst the most popular auctions sites which let you sell your things for either bitcoin or one of the supported altcoins.
  2. BidBit – Another fine ebay-style auction website for bitcoiners.
  3. Shopify – If you want to go beyond just selling a few old things and actually look into setting up your own retail business then Shopify provides one of the world’s most popular ways to set up an online store, and will let you sell for either bitcoin, fiat, or both.
  4. Open Bazaar – This decentralized marketplace provides a way to buy and sell anything for BTC. Here’s why its better than eBay.

Bitcoin Revenue Sharing

Many website today are based around ‘user generated content’. That means they provide a platform, whether its a social network, a blog publishing site, an picture sharing site, or a thousand other things, and their users actually pack it up with useful stuff. To many people that doesn’t seem very fair, because the site’s users are providing most of the value but getting nothing in come back. Revenue sharing is a way to even out that imbalance by paying part of the advertising revenue generated by a chunk of content (which could be anything from a social media post to a movie) o the person who originally posted it. There are fountains of revenue sharing sites out there which pay in bitcoin, but here is a selection of the best ones:

  1. BitLanders – A social media website where it truly does pay to share.
  2. Paste4BTC – Get a share of the ad revenue from your text pastes.
  3. Taringa – A Latin American social media site with digital currency revenue sharing

Earn Bitcoins Playing Movie Games

Yes, you read that right – you can get paid to play movie games. Of course you most likely aren’t going to earn all that much, but I can’t think of a more pleasant way to get paid.

There are actually dozens of sites in this category so if you are interested please take a look at the utter list in our Get Paid to Play Movie Games article!

Become A Bitcoin Broker

If you have a bit of capital to commence off with (you don’t need a fortune, but >1 btc at least) then you can set yourself up as a broker, buying and selling coins with other users in your area. You can do this solo through a peer-to-peer marketplace such as local bitcoins, or you can sign up with LakeBTC which is looking for ‘Lake Bankers’ to operate as a kind of broker through their site.

Related video:

Earn 20% More Prize with Bitcoin! Supporters-blog

Benefits to Select Bitcoin

  • STEP 1.Geta BitcoinWallet

If you do not have a Bitcoin Wallet, we recommend you to get one from BitFinance , a Bitcoin agent in Zimbabwe. Visit https://bitcoinfundi.com and go after the effortless steps to sign up.

  • STEP Two. Update yourPrize Payment Info on BFS Page

    Go to BFS Payment Info Page: https://supporters.beforward.jp/bfs/supporter/edit and update your payment information including your Bitcoin Wallet Address

  • STEP Three. Get Rewarded

    Refer your friend/customer to us and you will receive Bitcoin prize automatically once a month!

  • How to Update your BFS Payment Info

    Go to BFS Account Page: https://supporters.beforward.jp/bfs/supporter/edit

    Update your Bitcoin Wallet Information.

    What is Bitcoin Wallet Address?

    There is an unique QR code and Wallet Address for each Bitcoin Wallet holders. The address is used for transaction of Bitcoin. Copy your Wallet Address and paste it in the above field when you register your Prize Payment Information. If you use BitcoinFundi, login to BitcoinFundi and find your Wallet Address from your “BTC Wallet”

    FAQ about Bitcoin Prize

    • Q. How can I receive prizes in Bitcoin?

    A. To receive prizes in Bitcoin, you need to have a Bitcoin Wallet. If you do not have one, we recommend you to create an account at BitcoinFundi.

    Once you create your account, you will be able to access your Bitcoin Wallet through BitcoinFundi. Once you get a Wallet, please update your Bitcoin Wallet Information on BFS Prize Payment Info page. So that your prizes will be paid in Bitcoin automatically from the next month.

    • Q. What is Bitcoin?

      A. Bitcoin is a digital currency that can be used to buy merchandise online or to make international payment that is not governed by a central bank nor any public authority. You can exchange Bitcoin to USD or other currencies if you want. To learn more, please observe this movie.

    • Q. How can I exchange Bitcoin to USD and withdraw it fromEcocash?

      A. You can sell Bitcoin at the under Bitcoin-USD rate suggested on the market. Once you successfully sold your Bitcoins, you can withdraw your funds in USD. If you use BitcoinFundi , you can sell your Bitcoins and withdraw USD from Ecocash.

      To learn how to sell Bitcoin, please click here.

      To learn how to withdraw USD to an Ecocash wallet, please click here.

      A. You can exchange it to USD or other currencies if you like. You can send Bitcoin to your friends or family outside your country. You can even buy merchandise online with Bitcoin. If you would like to make payment in Bitcoin to purchase a vehicle or spare parts from BE FORWARD, please contact us: top@beforward.jp .

      We will explain how to proceed with the payment.

    • Q. How is the exchange rate determined?

      A. We will pay the equivalent amount of Bitcoin to USD under Bitcoin-USD rate at the time of cash out from us.

    • Q. Whatis Bitcoin Wallet Address?

      A. There is an unique QR code and Wallet Address for each Bitcoin Wallet holders. The address is used for transaction of Bitcoin. Please copy your Wallet Address and paste it when you register your Prize Payment Information to avoid typo.

    To learn more how to get a Bitcoin Wallet

    If you are not familiar with Bitcoin or have any questions regarding Bitcoin, please contact BitFinance in Zimbabwe.

    Related video:

    Do you accept Bitcoin (or other forms of virtual currency)?

    Do you accept Bitcoin (or other forms of virtual currency)?

    “Virtual currency” (and Bitcoin in particular) is receiving a lot of attention recently in the financial sector. A virtual currency is a type of unregulated, digital money, which is issued and usually managed by its developers and used and accepted among the members of a specific virtual community. Virtual currency exhibits properties similar to physical currencies but permits for instantaneous transactions and borderless transfer of ownership however it does not have all the attributes of “real” currency or legal tender status.

    Bitcoin is perhaps the best known example of virtual currency. Bitcoin was invented by Satoshi Nakamoto[1], launched in two thousand nine and came to prominence in late two thousand thirteen when the price of a Bitcoin shortly soared to $1,230 from around $Ten only eighteen months previously. The Bitcoin system is an online payment system that uses cryptographic software to generate a digital currency and validate transactions using that currency. Satoshi Nakamoto defined an electronic Bitcoin as a “chain of digital signatures”. Users of the Bitcoin system can mine, buy, sell and accept Bitcoins anywhere in the world so the speed of a transaction is not affected by the geographical location of the payer or payee. The global reach of Bitcoin permits parties to conduct borderless international transactions with greater simpleness and any foreign exchange issues (including foreign exchange cost implications) fall away. The code of each Bitcoin holds the entire history of that Bitcoin, including each transfer from one possessor to the next. The Bitcoin system is designed so that there will never be more that twenty one million Bitcoins in existence. There is presently only around £60m of Bitcoin circulating in the UK.

    1. Is Bitcoin (or similar virtual currencies) acceptable as a form of collateral for lending transactions?

    At present, there are a number of characteristics of Bitcoin (together with legal and practical obstacles) that make it unattractive as a form of collateral for a loan:

    (a) Bitcoin has no intrinsic value and is very volatile as a “currency”. One example of its volatility was in April 2013, when the value of one Bitcoin against the US dollar fell by over $160 (from $266) in one day. [Two]

    (b) There is no existing legal framework which addresses the unique features and functionality of Bitcoin. There is presently no legislation that specifically addresses virtual currencies and their risks and it is difficult to work out where virtual currencies sit within UK financial services regulatory framework.

    (c) Bitcoin is not regulated or backed by any real-world commodity (for example, gold) or central bank or government. The way in which virtual currencies work can be very sophisticated which may make it difficult for regulators to assess how they should be regulated.

    (d) The anonymity of the payment system. The fact that a virtual currency can be held and spent anonymously will appeal to criminals engaged in money laundering, financing illegal activities, fraud and tax evasion and this is why it has attracted the attention of financial regulators.

    (e) The payments made under the system are irreversible.

    (f) How does a creditor maintain control of the ‘wallet’ containing the virtual currency, especially if the Bitcoin is held by a third party wallet provider? If the creditor sought to take security from the Bitcoin proprietor over its rights against a third party wallet provider, it may be difficult to establish who the third party wallet provider is and carry out sufficient due diligence against the provider. In July 2014, the European Banking Authority recommended that national supervisory authorities discourage credit institutions, payment institutions and e-money institutions from buying, holding or selling virtual currencies[Three] so the option of actually transferring title to the Bitcoin to a creditor remains unattractive.

    (g) Virtual currencies, by their nature, are downright dependent on technology and suitable IT infrastructure to support them. The systems are open to attacks by hackers.

    (h) At present, it would be very difficult for a creditor to realise its security.

    Two. The future for virtual currency in the UK

    In a response to the call for information on virtual currencies, HM Treasury issued a report on eighteen March 2015[Four] which addressed the benefits and risks associated with virtual currencies. The report states that the UK government wishes “to foster a supportive environment for the development of legitimate businesses in the digital currency sector so that the UK can see some of the benefits of digital currencies, while also creating a hostile environment for illegal activity”. The UK government’s next steps in establishing this environment will be to:

    (a) apply anti-money laundering regulation to digital currency;

    (b) ensure law enforcement bods have the necessary abilities, instruments and legislation to identify and prosecute criminal activity relating to digital currency;

    (c) work with the British Standards Institution and the digital currency industry to develop standards for consumer protection; and

    (d) develop further the research initiative for digital currency technology.

    The Bank of England announced, at the end of February, that is has begun considering the issue of introducing its own digital currency[Five]. The European Central Bank also recently stated[6] that the technology associated with digital currencies presents a potentially attractive option for both domestic and international remittances.

    Albeit virtual currency is a somewhat fresh concept and is in the process of being understood and analysed by consumers, sellers, investors and regulators worldwide, it remains a hotly debated topic within the tech and financial sector particularly as the level of interest and number of transactions in virtual currencies is enlargening steadily.

    Given the potential benefits associated with the use of virtual currency, by providing the legitimacy and confidence that may presently be lacking with respect to virtual currency, any bank backed digital currency (together with sufficient regulation and legislation) could accelerate the use of virtual currency.

    For the reasons set out above, Bitcoin and virtual currencies presently pose a number of risks as a potential form of security. Whether these concerns can be overcome remains to be seen but it seems unavoidable that virtual currency will proceed to grow.

    [1] It is not known whether the name Satoshi Nakamoto is real or a pseudonym.

    Related video:

    http://www.youtube.com/watch?v=tdr74bcJr8w

    Digital currency, Learning Bitcoin: BitxBit

    Learning Bitcoin: BitxBit

    Day thirty – Mister B is Missing.

    Since the Holiday Season has begun, I’ve stopped receiving assignments from Mister B.

    I’m still reeling a bit from Assignment #6: Greed. The different levels of greed associated with money — consumerism, controlling wealth, politics, energy, etc — are a lot sickening. It got me thinking about how the latest interest in Bitcoin (including my own) have been largely based on greed.

    No one cared about Bitcoin when it was worth $Three or even $100 (again, myself included). Even however it is designed to alleviate a bit of this control of wealth, bank greed and be a precursor for economic freedom from our current economic system, the majority of people didn’t pay attention until it was surging with monetary value. And still then, no one cared about its other values.

    Everyone was interested because they dreamed to know how they could make money from it. People witnessed it as an investment scheme; they eyed it as a way to make a quick buck. This is part of the reason Bitcoin is being looked at as a commodity instead of a currency.

    Actually, I shouldn’t say everyone. People who are in absolute economic despair, like Argentina and other countries, have commenced to faithfully adopt this “Crimson Cross of Currencies” for use as a real alternative currency. Because they have to. But we shouldn’t have to totally lose trust and faith in our current systems, before we embark looking for redemption. Right?

    You can see how up-in-arms I get when I get going. So, I’m okay with not hearing from Mister B at the moment. Besides, I’ve got some stuff to catch up on and Christmas presents to buy (Hey there, Consumerism)– with Bitcoin, of course!

    Buying Bitcoin via Coinbase

    At some point in this Bitcoin game, I’m guessing you will want to buy and/or sell BTC. Maybe you’ve had enough of the acute ups and downs; maybe you want to buy more while the price is down. Unlike what my friend thinks — that it’s a confusing and complicated process — it’s actually super-duper effortless. If you now how to transfer money online, use Paypal or use online bill pay, You Got This.

    Firstly, let me explain something. While I know there are numerous ways to buy/sell/trade BTC on the interwebs, I use Coinbase. It’s plain, effortless and my bank accounts are already linked. There’s not crazy hoops to hop through, or other weird shit like I’ve heard happens on Mt. Gox. I suggest this to anyone who, like me, is a bit of a Bitcoin novice.

    Buying the Bitcoin via Coinbase

    It’s indeed just three steps:

    1. Log-in to Coinbase.

    Two. Click the link to buy BTC and inject how many BTC you want to buy.

    Four. Confirm your purchase.

    Step 1: Log-in to Coinbase.com

    Instantaneously after logging into Coinbase, the home screen for your wallet pops up. The majority of the screen lists the transactions to/from your specific account. If you haven’t made any, then it will look something like this:

    You can click on the very first link in the Quckstart Guide to embark buying BTC!

    Step Two: Figure Out How Much You Want to Buy

    You can either click on the “Buy your very first bitcoin” link in the Quickstart Guide or head over to the left screen and click “Buy/Sell” under the General menu heading. Welcome to the purchase screen!

    You MUST verify and link a bank account to purchase Bitcoin. You can also link your credit card for later purchases.

    Here is what I think is the thickest misconception of buying Bitcoin.

    YOU DO NOT HAVE TO BUY ONE Entire BITCOIN!

    We think in terms of round numbers: $1 or 5¢, but Bitcoin is different. They are very divisible. So, maybe you don’t want to spend $657 (or whatever the exchange is) to get embarked in Bitcoin. YOU DON’T HAVE TO. Feel free to buy some random fraction of a Bitcoin. Buy .187 BTC or .666 BTC — whatever you want.

    If you aren’t near a calculator, once you’ve entered an amount, they will automatically calculate its equivalent in USD — and showcase you all the ugly fees that come with your purchase.

    But I thought BTC didn’t charge fees?

    It doesn’t but since we are using Coinbase, a third-party service, so they can charge whatever they want. And it actually finishes up seeming like a lot if you ask me. But what do I know?

    Step Three: Confirm & Wait.

    Before you confirm your purchase, a screen will pop up with your purchase details and the planned date of deposit into your wallet. It is usually inbetween 3-4 business days, which is annoying because I don’t truly see what the hold up is.

    It’s significant (and maybe evident) to note that you are paid out on the value of the BTC at the time of purchase. Which can be excellent if the value drops and a bummer if it goes higher. Thems the cracks!

    Joy Fact! Coinbase calculates the value of exchange at the EXACT time of purchase. For example: Inbetween the time I plugged in my purchase amount to the five or ten seconds it took for me to go through the confirmation process my BTC were worth $Ten more! And the amount was adjusted and once again confirmed with me.

    Want to know about Selling Bitcoin through Coinbase?

    Update: There are thresholds to how many BTC you can buy and sell within a day, so be sure to check that out before you attempt being a large baller.

    Day nine – Assignment #Two – Creating A Blockchain Wallet

    This is not my wallet, but I wish it was.

    When I very first looked at the Blockchain site, I almost instantaneously closed the browser tab. It looked so plain to me, but the kind of elementary that seemed to warn, “You better know what you are doing if you are going to use this site!”

    It took me a duo days, and the promise of delicious BTC being transferred to me, to embark my Blockchain wallet. After a fairly brief drop over the weekend, the value of BTC seemed to be climbing up again.

    I dreamed to get my forearms on some as soon as possible.

    Turns out, setting up an online wallet on Blockchain was like a bazillion times lighter than on Coinbase. Who knew?

    Embark a fresh wallet: They make it a little too effortless here providing you two lightly accessible buttons to click, both directing you to the fresh wallet set up. So, take the crimson pill or the blue pill, both the “Create My Free Wallet” and the “Commence a Fresh Wallet” button end up in the same place. How comforting.

    That’s About It: Just pack in your email* and a password and capatcha — deciphering this sonofabitch can be the hardest part of all this — you get an email link to your shiny fresh wallet!

    * If you want to stay a little anonymous, just for the mystery of it, get a “fake” BitMessageaccount and commence the undercover party.

    Once you log-in to your account, your BTC address is lightly found (along with its lifemate, a matching QR code).

    Like it says, this is your BTC address. So store it away, send it away and see the BTC come rolling in (hopefully). Note: This is a DEMO address.

    To Link Accounts or To Not Link (Bank) Accounts?

    I chose to NOT link my bank account to this address — mostly in spirit of the game/experiment/just ’cause. My Coinbase account is already linked to my bank account so I don’t see the need. Personally, I’d rather just remain mysterious on Blockchain. Why? Because I can, I guess. But you can do whatever you want.

    I get it, some of you are visual learners. Check out Blockchain.info’s Demo Account with working links within the site to help you get a feel for the site’s user-friendliness and look.

    Day four – Assignment #Two // Creating a Coinbase Account

    Day four – Thursday, November 7th, 2013

    Mister B assumed (correctly) that I would want to get my grubby forearms on some Bitcoin (BTC) ASAP. I recall back a few months ago when they spiked up to around $200 each, I miraculously found this old sheet of paper, folded once, still crisp from neglect. I was attempting to find out how many Bitcoin he had given me back in 2011, and how much they were worth now. I dreamed to cash them, at least some of them, out so I could, you know, pay my bills.

    Unluckily, when I opened the folded sheet of paper, I had no idea what I was looking at. It was a bunch of different random coded lines and QR codes. I didn’t even know what to Google to attempt to figure out what it all meant. Instead, I sadly folded my unknown possible fortune back up and hid it away. There must be a simpler way, I thought.

    Assignment #Two – Research How to Receive Bitcoin. Make Two Online Wallets And Send Mister B the Addresses.

    My help this time:

    My suggestion is to set up a coinbase.com account and a blockchain.info [wallet]. Once you have set up the wallets send me the bitcoin addresses.

    Well, you can’t receive Bitcoin without a place to have them sent.

    I instantly typed in coinbase.com and blockchain.info into my browser. I was both excited and a little frightened, maybe paranoid. The blockchain website looked scary and confusing, so I headed to Coinbase. The very first thing I noticed on Coinbase was the price of exchange. My eyes widened. It was dancing unbelievably close to $250. (I wouldn’t realize until later that Coinbase’s value charts are usually always less than other sites like the Bitcoin exchange site, Mt. Gox. To learn about Bitcoin value, read this.)

    Coinbase.com is a good introductory site for people wanting to ease into the world of Bitcoin transactions. It is a type of online “wallet” for your Bitcoin account. I didn’t need any prior Bitcoin anythings — no address, no account, no nothing — to get commenced. I just simply signed up for an account. It is the Apple computer of internet wallet sites.

    Register: After you’ve entered your email address and preferred password on the homepage, waited for and then clicked on the verification link in your email, and accepted the user agreement, you are taken straight to a Transactions page where a handy Quick Commence Guide can walk you through linking Coinbase to your bank account, a necessary evil to buy Bitcoin or exchange it into regular spending cash.

    Link Your Bank Account: I was a little hesitant at very first to be linking anything to my bank account, but I figured I would have to take th e plunge eventually and there’s no time like the present, so… I linked both my checking and savings account via the instructions in the Buy/Sell menu link. As of now you can link a checking, savings and business checking account to the site. I was even more hesitant to link my phone number, but I realized it was also for security purposes. Adding a phone number* permits for two-factor authentication which adds an extra layer of protection against people attempting to build up access to your account. You can learn more about it here.

    *I actually had an annoying time getting my verification code sent to me via text. I just wasn’t receiving the texts. However, once I requested a phone call for the verification code, it was sleek sailing.

    Create a Bitcoin Address: So, you can’t do much without a Bitcoin address — which should be looked at as an account number. It’s the place your Bitcoins hangout and wait to be spent or hop up and down in value. Coinbase makes creating an address super ordinary, so even however I had some crazy confusing address on that sheet of paper from years back (and since I had no clue how to get it inwards the computer), I created a fresh one. That’s one of the beauties of Bitcoin — you can have as many addresses as you want. Make one for everything you do if you want, bounce as many as your nimble arms can treat, if you want. Since I’ve never been excellent at bouncing, I determined to commence with just the one.

    On the left menu, under Account Settings, I clicked under the visible tab of Bitcoin Addresses. There was a bunch of stuff on there that I overlooked (like the “callback urls”) because I figured I should wait to use them until I knew what they were for. So, I lodged for clicking the +Create Fresh Address button. And Bam! I had a Bitcoin address. Display me the money.

    If you are an organization enthusiast or generally nosey, clicking the Details button to the right of the Bitcoin address will pop open a screen that permits you to label your Bitcoin address. This is very recommended to keep track of your accounts. No one wants to stare at a string of random letters and numbers, attempting to recall which one is which.

    The only weird thing I notice so far with Coinbase is that I’m not fairly sure where my private key is. And this worries me. But more importantly, I copied my shiny fresh address into a BitMessage and patiently waited to receive my very first transaction.

    Update: Your private key is like the password to your address. It is required to spend your Bitcoin. You should never share this information. And unluckily, some sites, like Coinbase, keep this information stored on their server — whether or not you create your address with them — causing your wallet to be less secure.

    Day one – My Secret Message

    I woke up in the middle of the night to urinate. As habit dictates, I grab my phone to check my messages along the way. My eyes scarcely open, they bashful away from the light of my phone. There is a message from a weird address containing nonsensical order of characters and with an offensive subject line.

    My very first Bitmessage.

    I press on the email and am expecting to find a jumbled set of characters that I have to break like the da Vinci code, but its just a regular email. Part of me is disappointed, part of me is eased its lighter than I thought to send an encrypted message, and the last part of me is still half sleeping and wants to come back to bed.

    I skim the paragraphs of words. Even tho’ I am tired, I have no idea what I am reading. The jargon is foreign, the concepts twist my brain. I determine that right now, on the toilet, mid-pee, is no way to attempt to decypher this message. I go back to bed and leave behind all about it.

    I wake up and don’t recall my mysterious email until about an hour or two. I grab my phone, and check again. Its no lighter to comprehend than a few hours earlier. But my mission is clear, if I choose to accept it: Create a Bitmessage account and send an encrypted message to a different weird looking address listed in the email. Listen to a Udemy.com lesson on Bitmessage and familiarize myself with the concept of crypto.

    I feel shocked. I feel like a lab rat. The articles idea has now been switched for an experiment on instructing the luddite monkey how to learn Bitcoin.

    But I also, as I stared at this weird email I didn’t truly understand, I felt like a secret agent.

    Day zero – Life Before Bitcoin

    I have a friend who has been into Bitcoin for the last few years. Before the blogs, before the news coverage, before they were mentioned on Prime Time television dramas. He got in on them at $.Ten each. He told me to buy some.

    A few years ago, I found myself crashing on his couch after a long time spent oversees. And he was still rattling on about this bitcoin business. It had come a long way over the last five or six years, but I just associated it with computer geeks, or experimental nerds. People that sat hunched over at their computer screens in the pitch black of 4am except for the dim glow of a PC monitor illuminating their face. Illuminating a secret world.

    Bitcoin was so far off my radar that from the beginning even the most rudimentary information bounced of my brain like a nickel. Duo my lack of technical understanding with my embarrassingly low level of economics skill and you’ve got one dumb idiot blankly staring back at you. But he never gave up. He kept talking. Things kept bouncing. He even bought me $25 dollars worth of Bitcoin, five at $Five each — always looking out for me.

    A few months later they rose to $8.

    He called me. “You should indeed buy more Bitcoin. They are going up in value.” I didn’t understand how. But again armed with my keen understanding of basic economics, I rationed that since they had already almost doubled in price, I most likely couldn’t afford to buy any. “I think I missed the boat on them”, I said into a silent phone.

    A few weeks ago, Bitcoin reached $200 each. Fuck me.

    Today they are almost at $350. I still don’t know how. I still don’t understand why. But I do know this world is switching, and I damn sure better know a bit more about Bitcoin if I am going to get through.

    So I wrote this friend tonight. I wrote because he mentioned wanting me to write Bitcoin articles for him. And since I could use the money, because I “missed the boat” way back when, I asked him if he still dreamed to hire me to write for his blog. I wasn’t sure how I could write anything about something I fresh so little about, but I was up for the challenge. Or I could attempt and fake it.

    What did I know about Bitcoin? Well, I knew it was a digital currency created out of lean air. I knew it was used on the internet to buy drugs or something. I knew it had substantially risen in value over the last few years. But that’s about it.

    I shoved send feeling like a failure. I shoved send and had no idea what a rail I would be taken on over the next few months as BitXBitcoin took form.

    Related video:

    Digital Currency Deep Dive: Is Bitcoin Cheaper and More Efficient than Traditional Payments

    Digital Currency Deep Dive: Is Bitcoin Cheaper and More Efficient than Traditional Payments?

    Reminisce the day when a coin was just a bothersome lump of metal that you were glad to throw in the peak jar to benefit the underpaid baristas at your local coffee shop? Well no more. Now a coin might be worth more than many people make in a week. Over the next few weeks Economist David Evans will be taking a deeper look at bitcoin–why it is so special, whether it can provide stable value for investors and if it has a future far beyond its embryonic phases as a digital currency.

    Missed the very first three editions? Don’t worry, you can read the very first installment of the Digital Currency Deep Dive: What Makes Bitcoin So Special here, the 2nd installment It’s The Protocol Stupid here, and the third installment Digital Currency Deep Dive: Hey Who’s In Charge Around Here? by clicking here. You can also get a look at Dr. Evans’ technical paper on his SSRN page here.

    Is Bitcoin Cheaper and More Efficient than Traditional Payments?

    Bitcoin is going to clean the clocks of the traditional payment providers because it eliminates the middleman and it’s indeed cheap. That’s a frequent claim among advocates for bitcoin and the other public ledger digital currencies. As Bitcoin Daily, echoing many others, put it:

    “Bitcoin’s efficiency and low cost compared to the traditional payment methods that we are using today will ultimately prove too tempting to merchants, businessmen, and individuals. Bitcoin processors only charge one percent for bitcoin transactions, compared to the 2-3percent ‘standard’ fees paid by merchants for credit card processing. Bitcoin permits for the elementary and secure transfer of value online, without the need for intermediaries. These include credit card network, card-processing companies, or money transfer agencies that rely on skimming transaction fees for their revenue.”

    Is this true, and how would we know? That’s the subject of this edition of the Digital Currency Deep Dive.

    Deep Dive into Traditional Payments

    To get an understanding of how Bitcoin could disrupt traditional payments let’s embark by describing how traditional payments presently work.

    The basic building block of payments involves sending and receiving money. That’s effortless with cash: I give you cash, you get cash. It is much more complicated with electronic payments.

    Electronic payment systems typically have a computer network for sending and receiving funds. Some are closed private networks. A remittance provider such as Western Union, for example, usually sends money to, and receives money, from its agents using its private money transfer network. Others, such as those networks used by banks domestically and internationally, are multilateral systems with clearing and lodging. They may send messages concerning debits and credits and periodically lodge accounts based on net positions. Four-party payment networks such as MasterCard work this way too. The network operates a clearing and settlement system for card issuers and merchant acquirers. In all these cases, the network ultimately enables people, businesses, and other entities to send money to, and receive money from, each other.

    Many payments businesses wrap a diversity of other services around the elementary function of sending and receiving money. In some cases the entity that operates the core network provides other services; in other cases third-party businesses provide other services relying on the system for moving funds.

    Consider some examples.

    Remittance companies usually operate networks of agents around the world, often in poorer neighborhoods and remote locations, that enable people to send and receive funds in cash, which is what many people need in many lesser-developed parts of the world. Credit card companies like American Express provide consumers (senders) with a bundle of services including credit lines, fraud protection, and a dispute process for charges from merchants and provide merchants (receivers) with useful data for marketing and a pre-qualified group of consumers. Banks include the capability to receive money into an account and the capability to send money out of an account through ACH-type systems as part of the basic checking account that people and businesses have.

    Many other payments businesses provide services that concentrate only on either the sending or receiving part of the transaction. In the payment card industry, card issuers specialize in servicing senders of funds (typically consumers) and merchant acquirers specialize in servicing receivers of funds (typically merchants). In the banking industry some banks have businesses that concentrate on originating the transfer of funds such as bill pay services. And still other businesses provide services to these other specialized businesses.

    I said above that the basic cash transaction is very straightforward. But even the cash business has a relatively complicated ecosystem built around sending and receiving funds. The ATM system, including ATM/debit cards, enables consumers to get cash from their banks accounts. Cash-in-transit businesses such as Loomis stir cash inbetween banks and inbetween merchants and banks. Then there are businesses that concentrate on providing the paper stock for the currency, printing it, providing machines for counting, and cash registers for accepting it.

    The bottom line is that most senders and receivers of money are not just obtaining a ordinary payment service. They are usually getting an extensive bundle of services that includes, and is ultimately predicated, on sending and receiving funds. Moreover, payments-related businesses may specialize in different elements of this bundle. As a result one must be careful in making sure that comparisons are apples-to-apples.

    Government regulation is the other factor to consider. It bites different players differently. Governments around the world have imposed many regulations involving sending and receiving money to prevent money laundering and funding terrorism. Those regulations are particularly onerous for international money transfers. Governments also have many regulations for the various services such as lending that are bundled with sending and receiving money.

    But one thing is true for sure: as Bitcoin Daily says, there are many intermediaries in the payments business and they all charge something to make money.

    Large Computerized Networks Do The Sending and Receiving of Funds

    Domestic or international computer networks are typically the workhorses of sending and receiving money. The computers are usually linked together through private communication networks. These networks face the usual path dependence problem of computer systems. They have been built over time and therefore include elements that are far from the frontiers of information technology. They are kludgy.

    Nevertheless, inbetween scale economies and efforts to operate them efficiently these specialized computer networks are able to send and receive money at far less than two percent of the transaction amount. There isn’t publicly available data on this but based on my conversations with people in the business the average cost of moving money over these networks is trivially petite on a per transaction basis. That’s demonstrable from considering how these systems are run. They are sophisticated computer systems involving little manual intervention that are moving massive sums domestically and globally.

    But as evidence of the low cost, here are some examples. The cost to financial institutions of transactions by one of the ACH operators in the U.S. is less than two cents. In fact, the low cost of these networks is one of the reasons that banks in developed countries typically provide direct debit and credit transfers at a very low cost, if not for free. Merchants that belong to MCX, the fresh merchant-run ACH-based debit card system in the U.S., are paying only four cents per transaction to FIS, which is operating the system, as a result of being able to rely on low-cost ACH.

    Visa and MasterCard, based on data they reported to the Federal Reserve Board, charged acquirers and issuers an average of .Trio percent of purchase volume (Ten.Four cents per transaction) in 2009. Reminisce, in the case of Visa and MasterCard, that revenue covers the cost of the entire brand positioning and marketing these networks do on behalf of their customers – the issuers – as well as operating the clearing and settlement network. The PIN debit networks in the US were even cheaper. They charged a total of .1 percent or purchase volume (Four.1 cents per transaction).

    The traditional payments industry therefore has inexpensive methods for moving money—at least compared to the 2-3 percent figure that is sometimes thrown around. The frictions that people complain about generally come from the various intermediaries that ass-plug into the clearing and settlement systems and, significantly, from the regulations these intermediaries have to obey with. They also come from the cost of dealing with fraud and disagreements among merchants and consumers.

    The Bitcoin Ecosystem

    At the heart of the Bitcoin ecosystem is the decentralized digital public ledger (aka the blockchain). That is the network that provides authentication, clearing, and settlement. It consists of decentralized servers operated by individuals around the world for hosting the blockchain and a labor force of “miners” who provide the processing services that results in authentication (is it a valid “non-double” transaction) and clearing and settlement (bitcoins are effectively moved from the sender to the receiver). The miners have formed “pools” which in some cases control a significant amount of the processing capacity. In fact Ghash has just acquired fifty one percent of network power.

    As with traditional payments, many other businesses drape off of this network and provide value-added services. During its early stages of development, people sent and received bitcoins directly over this network. But as Bitcoin has attempted to stir into the mainstream, wallet providers have arisen to make it lighter for nontechnical consumers to use bitcoin.

    Wallet providers enable consumers to put bitcoins in a wallet—much like putting dollars on a prepaid card. They then enable consumers to pay with those bitcoins at participating merchants who accept the wallet for payment. Like traditional payment intermediaries, wallet providers bundle many services in addition to facilitating the sending and receiving of funds. Coinbase, for example, insures merchants against exchange risk by paying US merchants in dollars rather than bitcoins and they provide consumers a presumably safe place to store their bitcoins and replenish their stocks of bitcoins.

    Many other businesses have formed as complements to the public ledger. These include most exchanges, vaults, manufacturers of mining equipment, and many other specialized value-added service providers.

    Like traditional payments, bitcoin is evolving into an ecosystem with many specialized players.

    Comparing Apples to Apples

    Unluckily, The Bitcoin Daily comparison—and one that is commonly heard in discussions of the advantages of bitcoin over traditional payment methods—is an apples-to-kumquats comparison. To indeed compare transactions across payment methods you have to make sure that the comparison includes the costs incurred by both the sender and the receiver and that they are for the same things. Bitcoin Daily compares the cost to the receiver for bitcoin with the cost to the sender and the receiver combined for credit cards and then further overlooks the differences in the services provided.

    Consider Coinbase. This bitcoin wallet charges the merchant one percent of the transaction amount. But that doesn’t include the round journey for the transaction. Coinbase also charges one percent of the dollars loaded into the wallet plus fifteen cents. The round excursion cost of a transaction that starts with the consumer buying bitcoins for the wallet is therefore two percent, overlooking the 15-cent fee.

    In the Bitcoin Daily example, the merchant card processor charges 2-3 percent. But that fee, which presumably refers to a credit card given its size, is predominated by revenue that the merchant processor passes on to the card issuer. The card issuer, in turn, offers various services to the consumer including dealing with merchant disputes, insurance for fraud, float inbetween the time of the charge and the time of the bill, and possibly prizes for using the card.

    If we consider the round journey cost of the transaction (the total charge to the merchant and the consumer) Coinbase is presently charging fees that are harshly in the same range as credit and debit cards. A large merchant would typically pay less than two percent as the blended rate for credit and debit cards and the consumer would typically get some value back in prizes for credit cards. The round tour transaction fee is therefore less than two percent for credit and debit cards. In addition the merchant and consumer are receiving other valuable services that Coinbase isn’t suggesting.

    Of course, Coinbase is still very petite and it is possible that its fees will decline as it realizes scale economies.

    Nevertheless, it would seem that Coinbase would have a long way to go to challenge with ACH-based transactions. In the U.S., it is possible by linking one’s bank account to do person-to-person transactions for free using PayPal or SquareCash, and in the U.K. with Paym. Even for international remittances, PayPal linked to a bank account results in less than a one percent total fee (sender plus receiver) inbetween many developed countries. Of course, perhaps these fees will go up as these services build up more traction, but the fact that domestic transactions are free now confirms the lost cost of sending and receiving funds using ACH-type systems.

    How Efficient is Bitcoin Public Ledger?

    The decentralized digital public ledger performs similar clearing and settlement functions as traditional payment networks. Wallets and other value added service providers then rely on the public ledger to support the services they provide senders and receivers of bitcoin.

    While the public ledger may support product innovations that traditional payments can’t it is not at all visible that the blockchain is a more efficient technology for processing transactions at least as it is presently organized. The public ledger is operated by a global network of miners, who are paid transaction fees for doing the processing work as well as randomly generated prizes that increases the supply of bitcoins. There is nothing inherent in that system that makes it obviously more efficient than a centrally managed computer network.

    In fact, as of now the bitcoin public ledger is a far more costly system for processing transactions than other networks for sending and receiving funds. Miners prioritize transactions based on the fees suggested for a transaction. That results in senders having to pay fees in order to make sure their transactions get processed quickly. Coinbase reportedly pays .002 btc per transaction (toughly eleven cents as of today). One report from early February two thousand fourteen indicated that processing fees were less than forty cents, which implies they were sometimes almost as high as forty cents.

    People often claim that with Bitcoin “you can send money inbetween any two points on earth for free”. While that is true in some cases, sometimes a transaction fee is required. The fee, when it is required, is usually worth less than forty U.S. cents.

    If we take the Coinbase eleven cent per transaction—much less than the almost forty cent max reported above–then the Bitcoin public ledger presently charges around the same price for clearing and settlement as Visa does (Ten.Four cents as of 2009). But as I noted Visa’s fee covers the cost of running a global branded payments network that provides significant brand and marketing support for issuers and acquirers and makes a significant operating margin on the transaction fee. If Visa broke out the fee for simply moving money, independent of other things it does, it would almost certainly be less than Ten.Four cents even with a nice profit margin.

    And that’s the most favorable comparison for the public ledger transaction fee. The eleven cent per transaction fee for the miners is also almost three times higher than what PIN debit networks charge in total. More importantly, the eleven cent bitcoin per transaction fee is an order of magnitude greater than the prices for clearing and settlement systems for banks. For example, we know that the clearing and settlement system operated by the Federal Reserve Board costs less than one cent per transaction (based on data here).

    Over time it is possible that the Bitcoin blockchain will become more efficient as the volume of transactions increases. It is also possible that the distributed labor force of miners will be substituted by enormous processing companies that can get operate less labor-intensive and more efficient operations. Ghash evidently has gotten to fifty one percent of network power through operating efficiencies. Then one could imagine that the costs could decline to at or below the levels that existing clearing and settlement entities incur. But since the cost of processing transactions is already enormously low it also isn’t clear how much that would matter in the end.

    The Potential for Disruption is at the Edge

    It is very difficult to make a case for bitcoin as a more efficient method for sending and receiving money once one makes apples-to-apples comparisons that account for differences in services and compliance with government regulations. It is also difficult to make a case for bitcoin as having an inherently superior technology for sending and receiving money.

    That doesn’t mean that bitcoin isn’t a disruptive technology. It could very well be. But the proof will be whether this crypto-currency can enable fresh products or services that existing payment systems can’t. Some have argued, for example that bitcoin could enable the conditional transactions such as shutting down my leased Tesla if I haven’t paid my bill or support sophisticated derivatives. There could also well be ways in which some variant of bitcoin could eliminate inefficiencies in cross-border transactions. Creative minds will surely do more with the blockchain innovation.

    There are also use cases for which bitcoin could well be more efficient than existing payment methods. Bitcoin, for example was originally conceived as a method for supporting puny value transactions. That, in fact, has been one of the weakest parts of existing payment systems because it is hard to develop a pricing and business model that works for very puny transactions. As is well known, bitcoin was a particularly useful currency for entrepreneurs operating dark websites engaging in illegal activities. Similarly bitcoin could be a very efficient payment system for gamers and others who live in a relatively closed ecosystem for which a standard electronic currency makes it lighter to transact.

    Meet the Fresh Boss, Same as the Old Boss

    An oft-made claim about Bitcoin, reflected in the Bitcoin Daily quote above, is that it dispenses with the need for intermediaries (aka middlemen). That would indeed be miraculous since every payment method since barter has had intermediaries of one form of another.

    I’m afraid there are no miracles here. The public ledger, and the miners who operate it, stand inbetween the senders and receivers of bitcoin. And that intermediary charges senders and receivers for transactions as we’ve seen. Over time the decentralized miners, who have already formed pools that control a significant fraction of transactions, could be organized into even more formal intermediaries similar to Visa and MasterCard if Bitcoin becomes successful.

    Many other intermediaries are emerging. Bitcoin wallets are intermediaries inbetween merchants and consumers. Exchanges are intermediaries inbetween buyers and sellers of bitcoin. In fact, if Bitcoin were to evolve into a fully functioning financial services system we would expect the same kinds of intermediaries, and perhaps others, to emerge in the Bitcoin ecosystem as in the traditional payments ecosystem. Clearly, however, the Bitcoin ecosystem is awash with middlemen.

    Some supporters of Bitcoin seem to believe that this crypto-currency will dispense with the need for banks—and those greedy bankers—and other financial intermediaries who “skim” transaction fees, as Bitcoin Daily put it. Maybe if Bitcoin is successful it will, indeed, kill off banking as we know it today. But fresh middlemen will populate the fresh ecosystem, and those intermediaries will perform many functions similar to traditional financial services.

    Moreover, those intermediaries will be seeking fees. And why shouldn’t they? They are in the business of making money and their VC investors are looking for a come back on their investment. We already see this with the fees being charged by all the fresh players in the Bitcoin ecosystem including the miners (up to forty cents), wallet providers (Two percent roundtrip for Coinbase), the exchanges and so forward.

    In fact, we have seen the emergence of superior intermediaries—Mt. Gox before its collapse—and Ghash now, all in the very early days of Bitcoin. This is an ecosystem that is ripe for large scale-based intermediaries.

    Thus, some of the claims for the Bitcoin revolution should remind us of the sage lyrics by The Who:

    I’ll peak my hat to the fresh constitution

    Take a bow for the fresh revolution

    Smile and smirk at the switch all around

    Pick up my guitar and play

    Just like yesterday

    Then I’ll get on my knees and beg

    We don’t get fooled again

    I’ll peak my hat to the fresh constitution

    Take a bow for the fresh revolution

    Smile and sneer at the switch all around

    Pick up my guitar and play

    Just like yesterday

    Then I’ll get on my knees and plead

    Related video:

    Digital Currencies: International Deeds and Regulations, Perkins Coie

    Digital Currencies: International Deeds and Regulations

    Last updated: 05.2017

    No Legal Advice or Attorney-Client Relationship: This chart is provided by Perkins Coie LLP’s Blockchain Technology & Digital Currency industry group for informational purposes only and is not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Recipient should not act upon this information without seeking advice from a lawyer licensed in his/her own state or country.

    P lease click a link below to view the corresponding section:

    Developments Over Time

    Virtual currencies are not legal tender under the country’s National Constitution, which designates the Central Bank as the only authority that may issue legal tender. Albeit not specifically regulated, latest statements by government officials suggest an enhanced interest in virtual currency transactions, including issuing warnings about their use and requiring financial institutions and other entities to report virtual currency transactions.

    Austria has not regulated virtual currencies and has not issued a cohesive policy on how to treat virtual currency.

    The Financial Markets Authority (FMA) of Austria issued a warning advising the country’s consumers to exercise utmost caution in relation to virtual currencies, particularly when related to business and investment models based on virtual currencies. Further, the FMA explicitly advised consumers that such offerings are not subject to any form of regulation, and in particular are not subject to supervision by the FMA. Source.

    Austrian ministers emerge to have given conflicting guidance on the tax treatment of Bitcoin during a parliamentary Q&A session. The finance minister reportedly stated that Bitcoin is not a financial instrument, and that capital gains tax would apply to bitcoin holdings sold within a year of purchase, while the minister for science, research and economy reportedly referred to German policy recognizing bitcoin as a unit of account. Source.

    Virtual currency transactions are subject to goods and services, incomes, and capital gains taxes. Further regulation is unlikely for now.

    The Australian Attorney-General’s Department issued a Consultation Document stating that the government wants to begin drafting legislative proposals to regulate digital currencies by the middle of 2017. The aim is to begin finalizing that legislation in 2018. To that end the government solicited public comment on the proposal that looks to include digital money in the laws against money laundering. Source.

    The Australian Department of Treasury issued a white paper listing crypto-currencies, such as bitcoin, as a challenge in determining how to appropriately tax companies and could provide a company with the capability to relocate profits to minimize their taxes. Source.

    The Australia Taxation Office issued guidance on the tax treatment for Bitcoin. The ATO concluded that Bitcoin is neither money nor a foreign currency, but is an asset for capital gains tax purposes. However, capital build up or loss from using bitcoin to purchase goods or services for private use or consumption will be disregarded, provided that cost of the bitcoin is $Ten,000 or less. Source.

    Bank of Australia governor Glenn Stevens stated that, while virtual currencies pose regulatory questions, he believes that investors who are ready to accept the risk in speculating in virtual currency should be permitted to do so. Source.

    Interview with Bank of Australia governor Glenn Stevens suggests that Australia sees potential risk and volatility with bitcoin, but did not, for the time being, indicate an intent to regulate. Source.

    Australian Taxation Office (ATO) confirms Bitcoin transactions are subject to goods and services (GST) and income tax and says that speculators should keep records for capital gains taxes and that bitcoin is expected to be means of electronic payment or money. Source.

    Bangladesh Bank issued a warning against conducting transactions in cryptocurrency, and reportedly stated that such use is punishable by up to twelve years in jail

    Bangladesh Bank issued a warning against conducting transactions in cryptocurrency, and reportedly stated that such use is punishable by up to twelve years in jail. Source.

    The National Bank of Belgium has warned investors and the public of the dangers of virtual currencies and announced that they are not legal tender, but there is no current indication that regulation is forthcoming.

    Federal Public Service Finance reportedly issued a statement that bitcoin trading transactions are not subject to VAT, however, its position is subject to switch pending the position taken by the European Committee. Source.

    National Bank of Belgium (NBB) and Belgian Financial Services and Markets Authority (FSMA) warned investors that virtual currencies are not issued by a central bank; there is no current regulation; risks associated with security, hacking, and fraud; value fluctuates; exchange rate is variable; and they are not legal tender. Source.

    NBB does not have plans for financial regulations to regulate Bitcoin (not an official position, but voiced in a meeting inbetween the bank and industry reps). National Bank likely to issue warnings similar to those issued by the EBA and other European nations. Source.

    Minister of Finance Koen Geens commented that Belgian National Bank does not object to Bitcoin, which was being used by only a handful of traders at this time, and that there was no indication that Bitcoin was being used for money laundering. Source.

    The Central Bank of Brazil has not yet regulated virtual currencies, but has issued the now-standard warnings about their use.

    Brazil’s House of Representatives held a public hearing to discuss a bill that would give the country’s central bank oversight of digital currency activity in the country. Source.

    Brazilian tax authority requires reporting of bitcoin holdings and payment of capital gains taxes for holders of bitcoin over certain value thresholds. Source.

    Central Bank of Brazil says that virtual currencies are not “electronic currency” under Brazilian law. It warned that virtual currencies are not ensured or issued by a central authority, are not assured by real assets, may be subject to volatility and total loss of value, can be used in illegal activities, and may be insecure due to the possibility of hacking. Eventually, the Bank said that it was following the evolution of virtual currencies, and would consider adopting measures. Source.

    Brazil adopted Law No. 12,865, which specifically referenced regulation of electronic currency. While the definition of “electronic currency” appeared to cover virtual currency, the Central Bank of Brazil later distinguished electronic currency from virtual currency. Source.

    Virtual currency has been explicitly banned.

    The Central Bank of Bolivia banned any currency or coins not issued or regulated by the government, including a list of virtual currencies. The Bank’s resolution states that citizens are prohibited from denominating prices in any currency that is not previously approved by its national institutions. Source.

    Private income from the sale or exchange of bitcoin is taxable, and will be treated as income from sale of financial assets.

    The Bulgarian Revenue Agency determined that income from the sale of bitcoin will be treated as income from sale of financial assets. Source.

    Virtual currencies are not legal tender in Canada and, reportedly, virtual currency exchanges are not subject to money laundering regulations. Virtual currencies, however, are subject to goods and services and capital gains taxes, and money laundering and terrorist financing laws.

    The central bank of Canada published a fresh working paper suggesting its researchers believe digital currency exchange rates will become less volatile should adoption increase. Source.

    The central Bank of Canada’s Senior Deputy Governor, Carolyn Wilkins, voiced the need for radical switch in the treatment regarding traditional finance and emerging technology at a speech at Toronto’s Rotman School of Management. Concerning disruptive technologies such as distributed ledgers and bitcoin, Wilkins said “[w]e have to envisage a world in which people mostly use e-money, perhaps even one that’s not denominated in the national currency, like Bitcoin.” Source.

    The Canadian Standing Senate Committee on Banking, Trade and Commerce released a report calling for limited regulatory control over digital currencies. Source.

    The Canadian central bank released a working paper examining the effects of competition inbetween different cryptocurrencies and the exchanges. The authors conclude that there is no clear evidence that Bitcoin will keep its superior position in the market, and that exchanges will be able to coexist and possibly contest on fees. Source.

    The Canadian parliament passed a bill amending its money laundering and terrorist financing act. The act now applies to persons in Canada engaged in the business of dealing in virtual currencies, as well as persons outside of Canada that provide such services to customers in Canada. Source.

    The Canadian Federal Budget included a reference to intended legislation regarding anti-money laundering and anti-terrorist financing that would apply to virtual currencies. Source.

    Official from the Office of the Superintendent of Financial Institutions says that virtual currencies are not “legal tender.” Source.

    Financial Transactions and Reports Analysis Centre (FinTRAC) reportedly wrote to several prominent Bitcoin exchanges that they are exempt from Canadian money laundering laws. Source.

    Canada Revenue Agency says barter transaction rules apply to use of Bitcoin for goods or services and are subject to tax. Also, Bitcoin bought or sold as a commodity is subject to capital gains taxes. Source.

    Financial institutions and third-party payment providers are banned from accepting, using, or selling virtual currencies. Albeit its use remains legal, the People’ s Bank of China has required exchanges to register with the adequate regulatory authorities and has suggested it will closely witness the markets. The People’s Bank of China has allegedly warned banks from working with virtual currency-related businesses.

    Chinese fattest bitcoin exchanges unveiled they will impose trading fees, as the government is tightening control over digital currency. Source.

    China’s central bank issued a recruitment ad (in Mandarin) published by the bank on Nov. Nine in connection with hiring blockchain experts to help it develop its own digital currency, Based on the information that has been released by the Central Bank, under this digital currency project the Central Bank would still retain control over the country’s money supply. Source.

    The People’s Bank of China (PBOC) is conducting a digital currency examine and is reportedly considering issuing its own digital currency. Source.

    Reports from a meeting with the People’s Bank of China (PBOC) indicate that PBOC has warned banks to cease doing business with virtual-currency-related businesses. Source.

    In wake of 12.Five.13 PBOC statement, BTC China no longer accepts yuan. PBOC extends ban on accepting, using, or selling bitcoin to third party payment providers. Bitcoin remains legal, however, for individuals to use but without providers, is effectively unlikely. Source.

    PBOC says that bitcoin is not currency, that financial institutions and payment institutions cannot be involved in bitcoin-related transactions, websites.exchanges that deal in bitcoin-related services need to register with adequate regulatory agencies, PBOC will pay close attention to potential uses of bitcoin for money laundering, and PBOC will educate the public about the risks of using, trading, or dealing in bitcoin (specifically, the lack of a central authority that administers or provides redress). Source.

    Colombia’s financial regulatory figure (SFC) has prohibited banks from working with virtual currency. The SFC and the Central Bank have also indicated that bitcoin is not a currency.

    In a press release, the Colombian Central Bank indicates that bitcoin is not a currency, and cannot be used in connection with Colombia’s exchange rate regime. Source.

    Colombia’s financial regulatory assets issued a resolution prohibiting financial institutions from holding virtual currency. The release also discussed a number of risks associated with virtual currency. Source.

    Informal statements by the Croatian National Bank are favorable regarding the legality of bitcoin.

    The Croatian National Bank indicated in an informal discussion that the use and sale of virtual currency would not be unlawful in Croatia. Source.

    Virtual currencies are not illegal in Cyprus, but Central Bank has warned about their use.

    Central Bank acknowledged that virtual currencies are not illegal, but reiterated earlier warnings about their use and exchange. Source.

    Central Bank issues warnings like those of the EBA and Bank of France that virtual currencies have no ensure of reimbursement, are inherently speculative, pose money laundering and other criminal activity risks, and are risky speculative investment vehicles. Source.

    Czech Ministry of Finance has indicated that virtual currency transactions are subject to anti-money-laundering laws and reporting requirements.

    A guidance note from the Ministry of Finance of the Czech Republic’s Financial Analytical Unit indicates that purchase and sale of virtual currencies in excess of 1,000 euros is subject to suspicious activities reporting under the Czech Republic’s anti-money-laundering laws. Source.

    Financial Supervisory Authority has issued warnings about the risks of virtual currencies, similar to other European nations, and has suggested there may be amendments to regulations regarding virtual currencies. Presently, it does not emerge that virtual currencies are regulated, at least under money laundering or financial institution regulations.

    The Danish Assessment Board (Skatterådet) gave its ruling on twenty five March two thousand fourteen in the case of SKM2014.226.SR (published on one April 2014).

    The board ruled that bitcoins are not considered an official currency for tax and VAT purposes, as bitcoin is not a currency that:

    • Is regulated by the operators on the global currency markets
    • Is subject to regulation by a central bank
    • Can be withdrawn from circulation
    • Is affiliated to a state or currency area

    Furthermore, fluctuation in the value of bitcoins is not taxable as gains or losses on currency covered by the Tax Act on Capital Gains and Losses on Debt and Claims. This conclusion is based on the description of the bitcoin system according to which purchase and ownership of bitcoins does not involve a debtor or creditor and, thus, neither a claim nor debt exists for tax purposes. Source.

    On March Legal, 2014, the Danish Central Bank issued a statement proclaiming that Bitcoin is not a currency. The Bank went on to explain, “Bitcoin does not have any real trading value compared to gold and silver, and thus is more similar to glass beads. The Danish Central Bank went on to point out that Bitcoins are not protected by any national laws or ensures, such as a deposit assure. Source.

    Chief Legal Advisor to FSA says that most likely development will be to amend existing financial regulations to cover exchanges and to have money laundering regulations cover cryptocurrency transactions. A member of Parliament suggested, however, that this would be done on a European-wide basis, not just in Denmark. Source.

    Financial Supervisory Authority (FSA) releases statement re: risks for cryptocurrencies: (1) losing money to exchanges, (Two) theft from virtual wallets, (Trio) might not be able to exchange it for fiat currency, (Four) rapid price fluctuation, (Five) links to criminal activity and (6) taxes. FSA also provides that cryptocurrencies are not covered by existing regulatory framework for electronic money, currency exchanges, brokerages, or deposit services. They are unregulated electronic money and there is no permission needed to run an exchange there. Source.

    Ecuador has banned issuance, promotion, or circulation of virtual currencies, and plans to issue its own digital currency for use as legal tender.

    Ecuador has mandated that all banks and “entities of the public, private, and cooperative financial sectors” must accept the country’s digital currency within the next three hundred sixty days. Ecuador’s official fiat currency is the U.S. dollar, and the digital currency under Ecuador’s Electronic Currency System will be “equivalent and convertible to US dollars.” Source. Source.

    Congress reportedly approved legislation to issue a digital currency for use alongside the U.S. dollar, which is presently the only legal tender in Ecuador. A monetary authority will be established to regulate the digital currency, which will be backed by liquid assets. Source.

    Ecuador’s Congress reportedly approved extensive reforms to its financial system providing for, among other things, the creation of a digital currency and financial regulation system managed by the executive. In connection therewith, it reportedly also banned the issuance, promotion or circulation of all digital currencies. Source.

    Estonian Supreme Court Rules Against Bitcoin Trader. The Supreme Court determined to apply extra regulation to Bitcoin trading, including the requirement to meet customers in person as well as the requirement keep IDs of all customers and report those who trade more than 1,000 Euros more per month.. This ruling not only applies to Bitcoin, it applies to all blockchain tokens and assets. Source. Source.

    The Estonian Supreme Court asked various government agencies and officials, including the Ministry of Finance, the Interior Ministry, the Estonian Central Bank and the Estonian Financial Supervision Authority, to reaction questions regarding the government’s stance on the legality of bitcoin as it considers arguments in a two thousand fourteen case filed by the operator of a bitcoin trading company, BTC.ee. Albeit the response was due by January 11, 2016, as of March 21, two thousand sixteen the Court has yet to publish its findings. Source.

    The Estonian Tax Authority stated that income derived from Bitcoin transactions constitutes capital build up subject to taxation. Source.

    Head of the Estonian central bank payment and settlement system voices concerns in an email about risks associated with bitcoin, including the nature of the decentralized system and the potential for a Ponzi scheme. Source.

    European Banking Authority issued warnings to the public about the risks associated with virtual currencies, and recently indicated it will apply anti-money laundering and anti-terrorist financing rules to virtual currencies.

    EU ministers met in December following the terrorist attacks on Paris and agreed to tighten checks on payment methods used by terrorist organizations. The European Commission is presently conducting a risk assessment on terrorist financing and money laundering, paying particular attention to virtual currencies. Documents recently released indicate the Commission will propose stricter rules involving virtual currencies and prepaid cards by June 2016. Source. Source.

    European Court of Justice ruled that the value-added tax (VAT) will not apply to purchases of bitcoin through exchanges. This ruling flows from a VAT provision for excepts related to currency, bank notes and legal tender. Source.

    Europol issued an internet organized crime threat assessment, which examines the various technologies and services used by cybercrime organizations. The assessment includes a discussion of the use of virtual currencies, including Bitcoin, in laundering the proceeds of cybercrimes. Source.

    The European Commission indicated that it will impose anti-money laundering and anti-terrorist financing rules on virtual currencies. Source.

    Sweden reportedly asked the European Union to provide definitive rules on the VAT treatment of cryptocurrencies, voicing concern over the inconsistencies in treatment among member states. Source.

    European Banking Authority (EBA) warns consumers on virtual currencies because (1) consumers can lose value, (Two) can be stolen from virtual wallets, (Trio) EU refund rights do not protect, (Four) value can switch quickly, (Five) can be used for criminal activity, including money laundering, and (6) consumers may be subject to tax liability. Source.

    The European Central Bank releases a detailed report regarding virtual currency and its potential for regulation under EU regimes. Source.

    F inancial Activity Task Force

    The Finnish Central Board of Taxes judged Bitcoin to be a financial service in ruling 034/2014, making Bitcoin exempt under the EU VAT directive. Source.

    Bank of Finland says, through interview with head of oversight Paeivi Heikkinene, that Bitcoin is not “currency” or a “payment instrument,” but is “more comparable to a commodity.” Source.

    The Finnish Tax Authority released tax interpretations regarding bitcoin, indicating that capital gains treatment would be given to an exchange of bitcoin for another currency, but that losses would not be deductible. Source.

    In television interview, Finnish Central Bank says that bitcoins are legal and can be invested in and used however people would like. There are no ensures, however, that unregulated virtual currencies can be exchanged back into traditional money. Source.

    Bank of France has issued warnings similar to other European nations. There were informal indications that France might have been willing to permit virtual currency companies to operate as payment service providers under French law, and France has now indicated it will implement customer identity verification rules for virtual currency platforms.

    France’s Central Bank (The Banque de France) issued a press release indicating that it has tested the blockchain technology for hypothetical use in the management of SEPA Credit Identifiers, or identification markers used to establish the identity of creditors within the Single Euro payments Area. Source.

    The French Senate released a report focusing on the type of regulation the government should apply on bitcoin transactions. and refers to Bitcoin as a type of virtual bartering instrument, and calls cryptocurrencies a “long-term trend raising significant legal and economic matters, that can no longer be disregarded by public authorities”. Source.

    The finance ministry reportedly announced that it plans to implement customer identity verification rules for bitcoin distributors and other platforms by the end of the year. It also reportedly implemented tax rules classifying bitcoins as property subject to capital gains and asset taxes. Source.

    Police reportedly shut down a bitcoin exchange operating illegally in France, seizing three hundred eighty eight bitcoins in the process. The site’s operators are reportedly being examined on potential charges of illegal banking, money laundering and operating an illegal gambling website. Source.

    The senate committee on finance heard testimony on the issues raised by the development of Bitcoin and other virtual currencies. The committee concluded that the rise of virtual currencies is a long-term trend that can no longer be disregarded by public authorities. It further noted that despite its risks, bitcoin offers numerous opportunities for the future and that public authorities should work on a balanced regulatory framework. Source.

    The French Ministry of Economy stated that revenue from sales of virtual currency is taxable income. The French Banking Federation indicates that wiring revenue from the sale of virtual currency to a individual bank account may require the bank to file a declaration with the French anti-money-laundering agency. Source.

    Bank of France warns about risks associated with virtual currencies: (1) security risks, (Two) absence of central regulatory authority, (Trio) speculation and big volatility, (Four) legal risk, and (Five) use of currencies for illegal and illicit activities. Source.

    Bitcoin Central, an exchange operating through a partnership with Aqoba, reportedly was approved by French regulators to operate as a “bank” (actually a payment services provider) under French law. Source.

    Virtual currencies are financial instruments under German law and, more specifically, are a form of “private money” that can be taxed as capital. Certain uses may also require a license or permit. Earlier guidance from the German financial supervisory authority also suggested virtual currencies are commodities, and are subject to taxation both upon sale of bitcoin and sale of goods in exchange for bitcoin.

    The Austrian and German governments are funding a research effort focused on the use of digital currencies in organized crime.: “BitCrime”. The initiative, is split into two sub-projects: (1) the German sub-project, primarily supported by the German Federal Ministry of Education and Research, and (Two). the Austrian sub-project, backed primarily by the Austrian Federal Ministry for Transport, Innovation and Technology, the Austrian Institute of Technology, and the Federal Ministries of Finance and the Interior. Source.

    The German Ministry of Finance has reportedly published a letter ruling that the commercial sale of bitcoin is a “miscellaneous service.” Retailers accepting bitcoin would be taxed on the sale of goods and upon selling any bitcoins they accept in purchases. Source.

    BaFin releases an overview of risks related to virtual currency, and indicates that commercial use of BTC may require licensure and permitting in certain circumstances. Source.

    German Finance Ministry says that virtual currency is not e-money or foreign currency but is still a financial instrument under German banking rules. Virtual currency is therefore more akin to “private money” that can be used in “multilateral clearing circles” (suggesting that virtual currency would be taxed as capital). Source.

    BaFin (German financial supervisory authority) says that Bitcoins are exempt from definition of e-money because they are not tied to legal tender currency. Instead, it is a commodity subject to taxation. Source.

    The Bank of Greece has adopted the EBA warnings regarding virtual currencies.

    Bank of Greece adopted the EBA’s warnings to consumers regarding virtual currencies. Source.

    See Denmark, above; autonomous country but under Kingdom of Denmark

    Informal guidance suggests that regulatory authorities are monitoring virtual currencies, particularly with regard to money laundering. Virtual currency considered a virtual commodity and not legal tender.

    The Hong Kong Monetary Authority (HKMA), ,in partnership with the Hong Kong Applied Science and Technology Research Institute (ASTRI). published a white paper on distributed ledger tech. The paper presents blockchain as a contraption that “carries enormous potential” depending on the kind of application but highlights that from the regulatory perspective, risks remain. Source.

    A senior Hong Kong official indicated, in response to a question submitted during a meeting of the Legislative Council of Hong Kong, that the government does not see a need for legislation that would regulate or ban bitcoin activities. The statement indicated that bitcoins are not a legal tender, and their value is not backed by any physical items, issuers or the real economy. Source.

    The Hong Kong Monetary Authority issued a statement warning the public about the risks involved in virtual currency trading after a a bitcoin exchange allegedly stole its clients’ funds. The statement also stated that Bitcoin is a virtual “commodity” and not legal tender. Source.

    Secretary for Financial Services and the Treasury says that there are high risks in exchanging, trading, and holding bitcoin; there are no physical currency assures; and its value is very speculative. Also suggested that Hong Kong was monitoring the virtual currency market and was particularly worried about money laundering. Source.

    The National Bank of Hungary has issued warnings similar to those of other countries.

    The National Bank of Hungary (MNB) issued a public statement warning citizens who use or invest in cryptocurrencies such as bitcoin, citing their unregulated nature amid enhancing instances of high-return investment schemes manhandling the cryptocurrency. The warning also reminded users that there is no institution ensuring the execution of a transaction or the reimbursement of payment. Source.

    National Bank of Hungary warns about the use of virtual currencies, including that they are not issued or assured by a central authority, the possibility of loss of value or theft, their volatility, and the inability to seek recourse or refund. Source.

    Regulates virtual currencies as electronic currency through the Icelandic Exchange Act, which effectively prohibits entities from engaging in the exchange of virtual currency.

    Icelandic Exchange Act applies to bitcoin exchanges, and bitcoin is not exempt as a good or service. Therefore, one cannot engage in foreign exchange that involves the electronic currency, bitcoin. Source.

    Reserve Bank of India has issued warnings to the public about the risks associated with virtual currencies and has suggested it is examining virtual currencies under India’s existing legal framework.

    The Reserve Bank of India’s governor and two deputy governors made statements about bitcoin. He indicated that while the technologies have the potential to be disruptive they could also have undesirable consequences if left unchecked. He also acknowledged that the technology can assist financial inclusion, that Cryptocurrency can help alleviate transaction settlement concerns. Source.

    Reserve Bank of India issues warnings to customers who buy, sell or trade in virtual currencies about security risks, absence of regulatory authority, speculation and volatility, legal risk, and use of currencies for illegal activities. Also says it is “presently examining” issues associated with using, holding, and trading VCs, including regulations for foreign exchanges and payments systems laws. Source.

    India’s Enforcement Directorate raided the offices a virtual currency exchange, reportedly in response to violations of India’s Foreign Exchange Management Act. Source.

    Virtual currencies are not legal tender, and using virtual currencies violates the country’s information and electronic transaction laws and currency laws.

    Bank Indonesia issued a statement on virtual currencies stating that these are not considered to be currency or legal payment instruments in Indonesia, and warned the public that the user/proprietor of bitcoins bears all risks related to their ownership/use. Source.

    Deputy Governor of Indonesian Central Bank says that using bitcoin violates information and electronic transaction laws and currency laws. DG also strongly urged Indonesians not to use bitcoin as a means of payment, and highlighted security risks of bitcoin too. Source.

    The Central Bank of Ireland does not regulate bitcoin. Ireland’s Revenue Commissioners are monitoring bitcoin for tax-related developments.

    The Central Bank of Ireland was cited by the Minster for Finance as stating that it does not regulate bitcoin or consider it to be legal tender. The Minister for Finance also referenced a statement by the Revenue Commissioners that they are monitoring development of virtual currency and its tax implications, albeit they do not believe virtual currency represents a significant risk for tax evasion. Presently, implications for taxation are varied, as bitcoin has elements both of a commodity and a currency. Source.

    The government intends to put in place a regime promoting virtual currency business, subject to anti-money-laundering requirements.

    The Gambling Supervision Commission Officials weighing regulatory switches that would permit gambling services to accept digital currencies “as if they were cash”. They issued a “public consultation” that was open from Four/26/16 until 05/20/16. Source. Source.

    The Isle of Man Department of Economic Development announced plans to run a trial of the very first government-owned blockchain project. Source.

    Effective April 1, 2015, virtual currency businesses, including those that exchange, sell, buy, or store virtual currency, must serve with the Isle of Man’s anti-money laundering laws. Source.

    The Isle of Man Department of Economic Development announced that it intends to take activity in the coming months to implement a regime that promotes business opportunities in digital currency but also applies suitable anti-money laundering requirements. Source.

    The Israeli central bank and Finance Ministry has issued warnings to the public about the risks associated with virtual currencies.

    Israel’s government is set to apply capital gains tax to bitcoin sales, categorizing digital currencies as a type of property. According to a statement published on 12th January, the Israel Tax Authority (ITA) said that it would consider bitcoin and other digital currencies as a kind of intangible asset rather than a foreign currency. Individuals involved in the sale or mining of digital currencies would be subject to business tax rates. Further, any commercial sales of bitcoin or transactions involved with trading are subject to value-added tax (VAT), the agency said. Source.

    Central Bank and Finance Ministry warns against the use of virtual currencies, similar to those of the European Banking Authority. It warned that virtual currencies are not legal tender, may be subject to volatility, can be used for money laundering or terrorist financing, and are subject to loss via a technical attacks by hacking. Source.

    Reportedly, the Bank of Israel and the Israel Securities Authorities, and justice and finance ministries are waiting to see how other countries address virtual currencies before taking act. Source.

    A law requiring identification of parties in bitcoin transactions has been proposed in the Italian Parliament, but no regulation yet.

    Agenzia delle Entrate, Italy’s top tax authority, released fresh information about its treatment of digital currencies, stating that purchases and sales made with bitcoin remain exempt from VAT. Source.

    The Central Bank of Italy issues a directive warning that virtual currency could be used for money laundering and terrorist financing, but that businesses that store and exchange virtual currency for fiat currency, among other virtual currency-related businesses, are not required to conform with AML/KYC requirements. Source.

    The Central Bank of Italy issues two directives warning about the use of virtual currency and agreeing with the EBA’s stance that financial institutions should not buy or invest in virtual currency until a formal legal framework is established. Source.

    The attorney general of Rome and an officer of the Italian financial police reportedly warned in separate interviews that Bitcoin could be manhandled by criminals, and called for regulations to combat criminal activity involving virtual currency. Source.

    A law is proposed in the Italian Parliament to require identification of a sender in a transaction involving more than 1,000 euros. Source.

    Japan approved a law regulating Virtual Currencies on May 25, two thousand sixteen which was promulgated on June Trio, 2016. The law was enacted and came into effect on April 1, 2017.

    Japan passed a bill that includes amendments to the Payment Services Act (the PSA) and the Act on the Prevention of Transfer of Criminal Proceeds (the “Criminal Proceed Transfer Act”), both of which provide for virtual currency exchange transactions to be regulated by the relevant authorities.

    The following persons or entities will fall under the category of a virtual currency exchange operator (VCEO): a person or entity that, in the course of trade, engages in (i) purchases and sales of the virtual currency or exchanges the virtual currency for another virtual currency; (ii) an intermediator or agent of the above transactions; or (iii) custody or safekeeping services in relation to a dealing or broking transaction set forward in (i) or (ii) above. Such person or entity is required to register with the Prime Minister as a VCEO.

    A foreign entity that engages in the virtual currency exchange business outside of Japan and does not obtain such registration with the relevant regulator shall be prohibited from making solicitations of the businesses indicated in (i) through (iii) above to a resident in Japan. Further, a VCEO is now categorized as a “Specified Business Operator” under the Criminal Proceed transfer Act. Accordingly, a VCEO is required to confirm the identities of its customers at the time of any transaction and to report any suspicious trading to the relevant authorities. Eventually, the amendments left unclear whether the elementary purchase of virtual currencies would be subject to Japanese tax. Source. Source.

    The legislation was promulgated on June Three, two thousand sixteen and it is expected to be enforced within one year from the promulgation date.

    On March Trio, two thousand sixteen Japan very first bill regarding cryptocurrencies was submitted to the Diet. The bill (i) provides definitions of Virtual Currency and Virtual Currency Exchange Services, (ii) requires registration of Virtual Currency Exchange Services (iii) sets forward the regulations regarding the business of Virtual Currency Exchange Service Providers, and (iv) imposes certain obligations (including customer identification obligations) by designating Virtual Currency Exchange Service Providers as “specified business operator” within the meaning of the Act on Prevention of Transfer of Criminal Proceeds. Source. Source.

    The Financial Services Agency (FSA) has proposed legislation that would recognize virtual currencies as equal to conventional currencies. If passed, virtual currency companies would be required to register with the FSA. Regulators hope to have the legislation passed before the end of the current Diet session. Source.

    Japan’s Liberal Democratic Party reportedly stated that Japan has determined against regulating bitcoin for now, but will proceed to assess the possibility of regulation. Source.

    Virtual Currencies under threshold amount are subject to “light touch” regulatory scheme.

    Authorities in the State Assembly, the legislature of the British Crown dependency of Jersey, published an order on 23rd September, stating that anyone operating as a digital currency exchanger is exempt from registration requirements if their annual turnover is less than £150,000. The order came into force on 26th September. The Jersey legislature also approved a switch to the dependency’s money laundering statutes, which would apply to digital currency exchangers. The orders reflect the outcome of a consultation process begun last year by Jersey’s government. Source.

    The States of Jersey government released a regulatory scheme for virtual currency exchangers. As companies grow, regulatory requirements increase, with those companies exceeding 150,000 GBP facing higher reporting and registration requirements. Source.

    Virtual currencies are not legal tender in Jordan and the Central Bank has warned against their use. Banks, currency exchanges, financial companies, and payment service providers operating in Jordan are prohibited from dealing in virtual currencies.

    Reportedly, the Central Bank of Jordan warned against the use of virtual currencies and said they are not legal tender. The warnings were similar to those issued by other countries: that there is a high risk of devaluation, that their value is very volatile, that virtual currencies can be used for criminal activities, and that there is a risk of total loss because it is not backed by a central authority. Further, the Central Bank reportedly told all banks, currency exchange companies, financial companies, and payment service providers, that they are prohibited from dealing in virtual currencies. Source.

    Bank of Lebanon has issued warnings to the public about the risks associated with virtual currencies, and has said that financial institutions and exchanges cannot, be decree, deal in virtual currencies as “e-money.”

    Bank of Lebanon has warned about risks of digital currencies, including that transactions made through unregulated networks cannot be ensured and losses not recoded; transactions may be irreversible; the currencies are very speculative and volatile; and can be used for criminal activities. It also reminded financial institutions and exchanges that “e-money” is prohibited by decree. Source.

    Central Bank of Lithuania has issued the standard EBA warnings but is holding off on further regulations for now.

    Central Bank of Lithuania clarifies that regulation of virtual currencies is under discussion but that it is likely to wait until further activity from EU countries before pursuing regulation. Source.

    Extra warnings issued regarding virtual currency and fluctuations in value of virtual currency. Source.

    Central Bank of Lithuania adopts the EBA warnings to consumers. Source.

    The issuance of virtual currency is not regulated “from a monetary point of view.” Financial services providers, which could include virtual currency businesses, must receive authorization from the Minister of Finance.

    The Luxembourg financial regulatory commission (CSSF) has issued a statement concludes that virtual currencies are not legal tender. It warns that virtual currencies entail risks for their holders, and reminds financial services providers that carrying out activities of the financial sector requires an authorization by the Minister of Finance and subjecting themselves to CSSF supervision. Source.

    Virtual currencies are not legal tender, are unregulated, and are risky.

    Central Bank of Malaysia has said that “The bitcoin” is not legal tender in Malaysia, that is does not regulate the operations of bitcoin, and that the public is advised to be cautious of the risks associated with the use of digital currencies. Source.

    Malta’s government is reportedly developing a broad national strategy that will see the government embrace bitcoin and blockchain innovation to promote and adopt the technology.

    Malta’s government is reportedly developing a broad national strategy that will see the government embrace bitcoin and blockchain innovation to promote and adopt the technology. The island nation’s Cabinet has approved the very first draft of a national strategy to promote blockchain. The revelation was made by Malta’s Prime Minister Joseph Muscat, speaking at an official financial conference. Source.

    Virtual currencies are not legal tender currency, and the Bank of Mexico has warned of risks of using virtual currencies.

    Mexico’s Secretariat of Finance and Public Credit clarified its stance on bitcoin, stating that virtual currencies will be included in the prohibitions of article thirty two of Mexico’s LFPIORPI, its federal law that is meant to prevent and identify operations transacted with illicit goods. Source.

    The Bank of Mexico has issued a press release warning of the risks of using virtual currencies, which also indicates that virtual currency is not legal tender. The release notes that presently virtual currencies do not presently have significant invasion in Mexico, however, the Bank in coordination with other authorities is monitoring their development and will issue regulations if necessary. Source.

    The Netherlands do not regulate bitcoin under its Act on Financial Supervision, but its national bank has released consumer warnings regarding the use of virtual currency. One court has ruled that it is a “medium of exchange” but not electronic money and another court has classified virtual currency as an “object” subject to seizure.

    The Dutch central bank has committed to developing an internal blockchain prototype dubbed “DNBCoin”, according to a latest publication. The development signals a desire on the part of the Dutch central bank to explore blockchain tech as an avenue for exchanging physical cash with digital replacements. Source.

    Based on unofficial statements, the Ministry of Finance is reportedly considering exempting bitcoin transactions from VAT, treating bitcoins similarly to payment instruments. Source.

    Dutch prosecutors released a document describing their response to Project ITOM, which involves collaboration inbetween EU and U.S. law enforcement, financial intelligence and monetary agencies to tackle illegal trade on the dark web. The Dutch prosecutors identified cryptocurrencies as one of their priorities for deterrent act, and emphasized the need for law enforcement to be able to obtain more information on Bitcoin transactions. Source.

    Courts reportedly ruled that bitcoins are objects, and the public prosecution department can therefore legally seize virtual currency from criminals and place them in its own digital purse. Source.

    A district court in a civil suit involving an uncompleted bitcoin transaction inbetween two parties ruled that bitcoin is a medium of exchange that is an acceptable form of payment in the country but that cannot be defined as legal tender, common money, or electronic money. Source.

    The Dutch Central Bank issues extra warnings relating to use of virtual currency, including statements that virtual currencies are not a viable alternative for legal tender. Source.

    Virtual currencies such as bitcoins presently do not fall within the scope of the Act on Financial Supervision of the Netherlands, as the Dutch Minister of Finance recently emphasized. Source.

    The Dutch Central Bank released a warning listing risks of usage of virtual currency and stated that it does not supervise virtual currencies. Source.

    A transcript of a question and reaction section with the Dutch Minister of Finance regarding risks of using bitcoin. The Q&A indicates that bitcoin is not a financial product for the purposes of the Act on Financial Supervision and that bitcoin transactions are taxable on an as-converted to legal tender basis. Source.

    Informal warnings about the risks associated with virtual currencies; suggestion from Commerce Commission that virtual currency may be regulated.

    The Deputy Governor of Fresh Zealand’s Reserve Bank (RBNZ) reportedly likened Bitcoin to a commodity rather than a realistic cash substitute, and stated that a switch in regulatory treatment was needed to manage the enhanced operational risk caused by the rise of online and mobile payments. Source.

    Reserve Bank of Fresh Zealand Gov. John McDermott warned people to “tread cautiously” because of supply, controls, and monitoring. Also warned of risks from volatility in pricing and speculation. Source.

    Fresh Zealand’s Commerce Commission reported as stating that bitcoin is covered by Fresh Zealand’s Fair Trading Act and Commerce Act. Source.

    Indications are that virtual currencies are not “money” or “currency” but are assets subject to capital gains taxes.

    Following a latest European Court of Justice ruling, the Directorate of the Norwegian Ministry of Finance reviewed its position on the applicability of VAT exemptions to Bitcoin, and recently concluded that services relating to the exchange of Bitcoin are covered by the VAT Act’s exemption for financial services. Source.

    Norwegian Director of General Taxation says that virtual currencies are not “money” or “currency” (a widely accepted and agreed upon method of exchange for goods and services). Virtual currencies are, however, assets subject to capital gains taxes. Source.

    Exchanges are not regulated by the Philippines Central Bank or other regulatory authorities in the country.

    Establishing itself as one of the very first governments in Southeast Asia to formally regulate digital currency, the Bangko Sentral ng Pilipinas (BSP) issued Circular No. 944, regulating digital currency exchanges as remittance and transfer companies. Digital currency exchanges must obtain a Certificate of Registration (COR) and serve with annual filing and reporting obligations. The regulatory framework requires digital currency companies to implement adequate risk management and security controls, and restricts “pay-outs” greater than $Ten,000 to checks and direct deposit. Source.

    The Central Bank of the Philippines has issued a press release describing virtual currencies and the risks of buying, holding or trading virtual currencies. The release indicates that the Central Bank is monitoring developments and may adopt adequate regulatory measures as needed. Source.

    Virtual currencies are not illegal, but are also not legal tender. They are subject to capital gains taxes and value-added tax.

    Poland’s Financial Ombudsman has called on the country’s Ministry of Finance to regulate the local cryptocurrency industry, claiming that as Poland’s cryptocurrency market is experiencing rapid growth, it should be subject to regulations that would protect customers of cryptocurrency exchanges. The appeal urged the Finance Ministry to evaluate and compare the best practices from those countries that have regulated cryptocurrencies, and implement the best instruments. Source.

    Poland’s Central Statistical Office (GUS) has recognized the trading and mining of virtual currencies as an official economic activity. As a result, companies active in the industry will now be able to register with the agency. The development marks a significant advance for industry players in Poland where, to date, the state has not issued any specific legislation that regulates bitcoin and other virtual currencies. Source.

    A draft bill introduced in Poland aims to create a create a Central Database of Accounts to be maintained by the Ministry of Finance, which would provide authorities rapid and effortless access to information on the locations of certain funds and other liquid assets. The draft bill would apply to banks, credit unions, payment services providers, and “entities that suggest products or services that enable storage of authentication data required to access virtual currencies,” Covered entities would be required to notify authorities within twenty four hours of the opening or closing of an account, or a switch to account information, with penalties of up to PLN 1.Five million or up to three years in prison. The bill marks Poland’s very first attempt at regulating the digital currencies market.

    The Grind Ministry of Finance concluded that, while virtual currencies are not subject to any separate regulation under Grind legislation, and while their use in Poland is fully legal, they are subject to income tax. Source.

    Poland’s Ministry of Digital Affairs announced an expansive digitization plan which seeks to promote digital public services, the development of cashless solutions and the implementation of electronic identification (eID). Source.

    The deputy finance minister reportedly released a statement that options and futures contracts based on bitcoin can be considered as financial instruments. The statement also concluded that Bitcoin is not legal tender in Poland or elsewhere. Source.

    The Lodz provincial office of the Grind Tax Administration issued an opinion stating that the sale of mined bitcoins is subject to Grind value-added tax of 23%, based on the rationale that bitcoin mining is a service with a set service fee, and mined bitcoins will be subject to VAT as a result. Source.

    Ministry of Finance announces that it does not consider bitcoin illegal, albeit it is not a legal currency either. Also clarified that profits from virtual currencies are subject to taxation as gains. Source.

    Informal warnings from the Bank of Portugal about the risks of virtual currency, while clarifying that the Bank does not monitor bitcoin.

    The Bank of Portugal issued a consumer alert warning of the risks of use of virtual currencies such as Bitcoin. The warning states that virtual currencies are not safe, and cautions that users bear the risks of using virtual currencies due to their lack of legal tender status and consumer protection regulation. Source.

    The Bank of Portugal issued a press release highlighting the risks of using bitcoin and stating that the Bank of Portugal does not oversee or supervise the issuance or use of bitcoin. The Bank concluded the release by indicating that banks are aware of the need to monitor and may eventually recognize and act on bitcoin. Source.

    Virtual currencies are banned as money surrogates under the federal law “On the Central Bank of the Russian Federation.” Stiff criminal penalties have been proposed for conversion of virtual currencies into rubles

    Russia’s government is said to be moving ahead with plans to introduce rules for blockchain use by 2019. According to state-owned news service TASS, the disclosure came from a report from the Ministry of Communications, which was not publicly accessible. TASS reports that the documents touch on “the adoption of legal acts” related to blockchain, positing two thousand nineteen as the time framework for the update. Source.

    Russian bitcoin ban faces an uncertain future after a draft of the bill was withdrawn. The bill – popularly known as the “Russian bitcoin ban” – received some negative feedback after the Justice Ministry is said to have objected to the bill on the grounds that its comments were not incorporated. The national legislature, the Duma, has been deliberating the bill since earlier this year. Source.

    The Finance Ministry in Moscow is planning to submit legislation next month which would penalize those using digital currencies. The proposed legislation would prohibit the issuance of digital currencies, as well as their use in exchange for goods and services in Russia. The range of penalties is commensurate with the level of usage. Russia joins Bolivia, Iceland, and Vietnam in taking steps to criminalize digital currency use. Source.

    Lawmakers submitted a fresh draft bill to Russia’s legislative assembly, the Duma, proposing a ban on virtual currencies. The law would impose imprisonment and civil penalties ranging from $265 to $66,000 for those who crack the law. The bill prohibits “malevolent issuance of money surrogates,” which may include miners as well as exchangers, “assistance in money surrogates circulation,” which captures virtual currency wallets, and “circulation of money surrogates” which includes those who purchase goods and services using virtual currency. The bill goes so far as to prohibit advertising virtual currencies in mainstream media and online, by prohibiting “intended distribution of information sufficient and necessary for issuance of money surrogates in media and information and communications networks.” Source. Source.

    Deputy Finance Minister Alexey Moiseev voiced support and appreciation for blockchain technology, while maintaining the Ministry’s stance on bitcoin as a danger to the banking system. The Ministry of Finance seeks to criminalize bitcoin conversions through a proposed draft law that would subject those who convert the virtual currency to up to four years in prison. Source.

    The Ministry of Finance revised its proposed legislation banning virtual currency activity, reducing the applicable fines by approximately 20-50%. Source.

    Deputy Finance Minister reportedly announced that a law will be passed by next spring banning transactions in virtual currencies. The law will reportedly provide for criminal penalties against miners of virtual currency, and ban access to exchanges and online stores accepting bitcoin. Source.

    The finance ministry is reportedly preparing a bill prohibiting transactions with “money substitutes,” including cryptocurrency. The ministry reportedly believes that virtual currencies are attractive to the shadow economy due to their lack of regulation. Source.

    Central Bank of Russia says that, under existing regulations, virtual currencies are a money surrogate, not an official currency, and are prohibited. Entities that use or exchanges that trade in virtual currencies will be subject to suspicion based on the potential use of virtual currencies for money laundering or other criminal activities. Source.

    Former economy minister and current chief of state-run OAO Sberbank Herman Gref says that banning virtual currencies in Russia would be a “colossal step backward” and had sent letter to the Kremlin, central bank, and Finance Ministry regarding the same. Source.

    The Security Committee in the lower house of parliament, the State Duma, approved a draft counterterrorism bill that included limitations on anonymous transactions, including virtual currencies. Source.

    Banque Régionale de Marchés (BRM) announced that it partnered with eCurrency Mint Limited (eCurrency) to provide a digital currency in the WAEMU. BRM will issue the digital tender, eCFA, in compliance with e-money regulations of BCEAO. The eCFAs will be transacted across all existing payment platforms and will be equivalent to physical legal tender. The eCFA distribution will begin in Senegal and will be extended in a 2nd phase to Cote d’Ivoire, Benin, Burkina Faso, Mali, Niger, Togo and Guinea- Bissau. Source.

    The National Bank of Serbia issued a statement that Bitcoin is not legal tender in Serbia or any other country, and cannot be subject to sale and purchase by banks and licensed exchange dealers. The statement further warns that due to the lack of legal protections, investing in bitcoin and other similar virtual currencies not issued or backed by a central bank constitutes a risk and may result in financial losses. Source.

    Virtual currencies are not “money” or “currency.” However, virtual currency businesses may be subject to anti-money-laundering regulations. Informal reporting suggests that virtual currency sales are taxed as income, investments are taxed as capital gains, and may be subject to goods and services tax.

    The Monetary Authority of Singapore announced the development of a blockchain proof-of-concept pilot project that will facilitate inter-bank payments, globally. The project aims to develop a payment system that will enable banks to transact inbetween global markets at any hour, with instant transfer of funds inbetween participants. Source. Source.

    The central bank of Singapore has proposed a fresh regulatory framework for payments providers in the city-state, a budge that would bring digital currency exchanges under its oversight. The proposed framework would require applicable companies to obtain a license from the Monetary Authority of Singapore (MAS), and divides payment activities into several categories. Digital currency exchanges would be covered by a provision overseeing startups that provide “money transmissions and conversion services.” Source.

    Monetary Authority of Singapore states that it will regulate virtual currency intermediaries to address money laundering and terrorist financing risks. Planned regulations include requirements to verify customer identities and reporting suspicious transactions. Source.

    Inland Revenue Authority of Singapore (IRAS) reportedly responds to request about taxation. Companies will be taxed on income based on virtual currency sales. When used as an investment, taxed as capital gains. Further, GST could vary depending on the level of services. Reminded that virtual currencies are not “money” or “currency” so they are a good or service for taxation. Source.

    Monetary Authority of Singapore cautions consumers regarding risks of trading in bitcoin. Source.

    Bank of Slovenia has issued warnings to the public about the risks associated with virtual currencies. Slovenia has also indicated that certain activities, including mining, would be subject to taxation.

    The Slovenian Ministry of Finance indicated that individuals selling bitcoin for capital gains would not pay income tax, but bitcoin miners would pay income tax. Overall, Slovenia intends to review bitcoin taxation on a case-by-case basis. Source.

    Bank of Slovenia reiterated EBA warnings about virtual currencies: (1) can lose money, (Two) money may be stolen from virtual wallet, (Three) EU refund rights do not protect when VC for payment, (Four) value can switch quickly, (Five) can be used for criminal activity, including money laundering, and (6) consumers may be subject to tax liability. Source.

    South African Reserve Bank has warned that virtual currencies have no legal status and are subject to lack of security, may lose value, and may not be convertible to legal tender.

    South Africa’s central bank is “open” to cryptocurrencies and blockchain, according to fresh statements from its governor. Governor Lesetja Kganyago indicated that the South African Reserve Bank is exploring the technology and interested in innovations that may stem from its development. The remarks suggest a greater degree of interest on the part of the central bank in the technology, coming less than two years after it released a position paper on digital currencies. Source.

    South African Reserve Bank issues warning similar to those of other countries that virtual currencies have no legal statute and cannot assure “security, convertibility, or value.” Source.

    Virtual currencies are not legal currency, are volatile and risky, and have no intrinsic value.

    Financial regulators in South Korea launched a fresh digital currency task force, with the purpose to introduce fresh regulations for exchange. Source.

    Ministry of Strategy and Finance, Bank of Korea, Financial Services Commission, and Financial Supervisory Service said that “cyber currency” is not a “real legal currency” and does not meet the standard regulations governing currency transactions, either via the Internet or commercial institutions. Also warned about the high volatility in the value of bitcoin, and about its lack of intrinsic value. Source.

    Virtual currencies are reportedly taxable as an electronic payment system under gambling law, but its treatment under other areas of law is unclear.

    The Ministry of Treasury confirmed that cryptocurrency is exempt from VAT in Spain. Source.

    Ministry of Treasury and General Government reportedly issued a ruling that it will treat Bitcoin as an electronic payment system for purposes of gambling law. It is unclear whether the Ministry’s interpretation is applicable to other areas of laws. Source.

    Informal statement from a tax official suggests that virtual currencies are not currencies in Sweden but instead will be treated as assets.

    Sweden’s central bank is considering the possibility of issuing its own digital currency, tho’ the exact technology it will use is yet to be determined. The Riksbank said it is facing pressure to make the switch following a decline in domestic cash use. With the news, Sweden becomes the latest nation to see its central bank consider a digital currency, a process that for most has included at least some exploration of blockchain-based digital currencies. Source.

    Sweden announced that it will treat income generated from certain bitcoin mining activity as income from employment. Source.

    The Swedish central bank published an article in its biannual economic review journal describing Bitcoin and other virtual currencies, their benefits and risks, use in Sweden and future outlook. Source.

    The Swedish Central Bank issued a commentary analyzing whether virtual currencies have affected the retail payments market, which noted that there are significant risks associated with virtual currency, as it is not subject to regulation. Source.

    Swedish Tax Agency official says that Sweden is likely to view virtual currencies as an asset, like art or antiques, and not a currency. Source.

    Swiss financial regulator has defined licensing requirements for bitcoin kiosk operators and said that virtual currency platforms are subject to anti-money laundering act, but other regulation unlikely because virtual currencies are perceived as a marginal phenomenon.

    The Swiss Federal Department of Finance (FDF) outlined its plan to regulate fintech with the aim of introducing draft legislation to parliament by mid-2017 after a public consultation. The plan’s stated aim was to help the country draw in more fintech companies by virtue of an accommodative stance aimed to reduce barriers to market entry for fintech firms. Source.

    The Swiss Federal Tax Administration confirmed that bitcoin is exempt from Value Added Tax (VAT) in Switzerland. Source.

    The Swiss federal council issued a report on virtual currencies examining the economic significance, legal treatment and risks of virtual currencies. The report concludes that there is no present need for legislative measures to be taken given that virtual currencies are a marginal phenomenon and many of their applications are covered by existing financial, criminal and contract laws. Source.

    The Swiss Financial Market Supervisory Authority issued a fact sheet clarifying that the purchase and sale of bitcoins on a commercial basis, and the operation of trading platforms used to transfer money or bitcoins from a platform’s users to other users, are subject to Switzerland’s anti-money laundering act. Notably however, a banking license is required by providers who accept bitcoins from clients and administer bitcoin holdings for clients. Source.

    The Swiss financial market regulator gave its approval for a bitcoin kiosk operator to operate a kiosk network, two weeks after delaying the launch of a different bitcoin kiosk. The regulator’s response also set forward the money transmitter licensing and self-regulatory organization membership requirements for operating a Bitcoin kiosk network in Switzerland. Source.

    Central Bank and Financial Supervisory Commission warned that virtual currencies are not currencies, but commodities and have no legal protection. Both plan to regulate virtual currencies.

    The Financial Supervisory Commission (FSC) released a statement to CoinDesk reiterating an earlier statement defining bitcoin as a “virtual commodity” and refusing to acknowledge it as a currency. The FSC stated “At the end of 2013, the Central Bank of the Republic of China and the FSC has [sic] released a joint statement that defines Bitcoin as a ‘virtual commodity’. Considering the non-currency nature and risk of Bitcoin, the FSC has required banks in Taiwan not to receive or exchange Bitcoin. At present, the FSC’s position on this issue remains the same as before.” Source.

    Taiwan’s Financial Supervisory Commission Chairman recently stated at a legislative hearing the opinion that virtual currencies were illegal. Commission plans to work with the Central Bank to regulate virtual currencies. Source.

    Central Bank and Financial Supervisory Commission warned against use because virtual currencies do not have legal protection. Suggested they may regulate virtual currencies if country financial institutions begin to engage with virtual currencies. Source.

    Thai law most likely does not regulate virtual currencies, but that does not mean that exchanges are free to operate in Thailand.

    A senior director of the Bank of Thailand reportedly stated that a company providing bitcoin exchange against the baht does not require approval or a license from the central bank. However, exchanging bitcoin for foreign currency would require an operating license granted by the central bank. The official also stated that exchanges also have to serve with related commercial, consumer and anti-money laundering laws. Source.

    Reportedly, the Bank of Thailand concluded that Thai law does not regulate virtual currencies, but that exchanges still cannot operate to the extent that they cannot prevent virtual currencies from being exchanged for currencies other than the baht. Source.

    Bank of Thailand reportedly said, in a meeting with a Bitcoin company, that there is an absence of applicable laws and capital controls and that, buying or selling bitcoin, buying or selling goods or service for bitcoin, or receiving bitcoin from outside Thailand is illegal. Source.

    The Central Bank of Tunisia exerts, on the State’s behalf, the special privilege of issuing on the territory of the Republic bearer banknotes and metal coins which are the only legal tender in the country.

    It is illegal to import or export Tunisian dinars. As a result, many converting ATMs exist across the country for tourists.

    The currency for Tunisia is the Dinar. The Dinar is the official currency of several countries including Libya, Algeria, Iraq, Jordan, and Tunisia. The common currency symbol for the Tunisian Dinar is TD.

    Tunisia has been reported to be substituting its self-created eDinar digital currency with a blockchain-based version, making it the world’s very first country to issue national currency using advanced blockchain technology. Source. Source.

    Tunisia agreed to become the very first nation to suggest its national currency for transmittance through cryptographic technology. Source. Source.

    Turkey’s recently enacted law on payment services and electronic money does not apply to bitcoin.

    Turkey’s Banking Regulation and Supervision Agency announced in a press release that bitcoin is not covered by Turkey’s “Law on Payment and Securities Reconciliation Systems, Payment Services and Electronic Money Institutions” and is therefore not subject to regulation under the Law. The Agency cautioned bitcoin users about risks associated with volatility and anonymity within the bitcoin system. No apparent switches in this position as of April 2015. Source.

    The UAE’s recently enacted regulatory framework on Stored Values and Electronic Payment Systems does not apply to bitcoin.

    On January 1, 2017, the Central Bank of the UAE issued a Regulatory Framework for Stored Values and Electronic Payment Systems, prohibiting “all Virtual Currencies (and any transactions thereof). The Central Bank of the United Arab Emirates (UAE) has clarified its past statements about a prohibition on “virtual currencies”, confirming that rules released last month do not apply to bitcoin. Caution is advised until a formal statement is released by the Central Bank. Source.

    Reportedly, exchanges do not have to register under money laundering regulations. Virtual currencies are taxed under goods and services taxes based on profits from a sale.

    The Governor of the Bank of England stated that the fintech sector did not need the same level of regulations as banks. Britain has seen a large boom of business from fintech firms, which employ more than 60,000 people there and is a business worth almost seven billion pounds (for companies providing services like contactless payments, banking apps and online crowd sourcing). Source.

    The UK’s government-owned Royal Mint plans to use blockchain technology to operate a fresh gold-trading system. The Royal Mint is working to put $1 billion worth of gold on a blockchain sometime next year to permit customers to own and trade fractions of gold, stored in the Royal Mint’s vaults, using a digital token called Royal Mint Gold (RMG). Each RMG holds the value of one gram of gold. Source.

    Light touch regulation of virtual currency exchanges have come into effect on the autonomous island of Jersey in the UK. The fresh laws make virtual currency exchange a supervised business and require exchange businesses with an annual turnover threshold of £150,000 or more to register with the Jersey Financial Services Commission (JFSC). Digital currency service providers will be sanctioned if they fail to register within three months of crossing that threshold. Source.

    The UK Treasury published a report last week describing the government’s plans to stop money laundering and terrorist financing risks. As part of the plans, the government will implement AML regulation. However, it will not seek to impose these AML regulations on virtual currency wallet providers. Source.

    The UK Treasury published a risk assessment in October two thousand fifteen of money laundering and terrorist financing. According to the report, the majority of the illicit transactions involving virtual currencies involve online markets and the sale and purchase of managed substances and firearms, rather than terrorism and money laundering. The report noted that “[t]here is little evidence to indicate that the use of digital currencies has been incorporated into established money laundering mechanisms […] [and] little evidence to indicate that the use of digital currencies has been adopted by criminals involved in terrorist financing.” Source.

    In a Treasury report released in late March, the UK Government announced plans to regulate bitcoin exchanges with anti-money laundering regulations, while at the same time committing significant funds to research and probe of Bitcoin technology. Source.

    Bank of England issued a report assessing the macroeconomic effects of digital currencies. The report concludes that digital currencies do not presently pose a material risk to monetary or financial stability in the U.K. Source.

    HMRC reportedly considering categorizing virtual currencies as a “private currency,” which would eliminate profits taxes. Source.

    HMRC reportedly wrote to FYB-UK that there is no requirement for an exchange to register under UK money laundering regulations. Source.

    Her Majesty’s Revenue & Customs (HMRC) says that digital currencies are covered by the UK tax system and, when used to pay someone for goods and services, the profits are taxable. Source.

    Please refer to the Perkins Coie Virtual Currency Report for analysis of U.S. law.

    Virtual currencies are not money nor legal tender in Vietnam and the State Bank of Vietnam warns against investing in, holding, or transacting in virtual currencies.

    State Bank of Vietnam recommends not investing in, holding, or transacting in virtual currencies because of harm and risks of use for criminal purposes, lack of technical security and vulnerability to hacking, price volatility, and lack of a central government authority. It also determined that virtual currencies are not money nor are they a form of legal payment in Vietnam. Source.

    Related video:

    Data industrialization on our way to marketing in a blockchain world – Chief Marketing Technologist

    Data industrialization on our way to marketing in a blockchain world

    DON’T MISS A CHANCE TO HEAR JEREMY SPEAK. He will be presenting at the MarTech Conference in Boston, October 2-4, with an in-depth talk on Blockchain and the CMO: The Next Era of Marketing. Register now for the “alpha” rate discount on tickets to ensure your seat.

    We live in a world of “big data.”

    It’s pretty much common skill that an organization’s data sets are the source of competitive advantage. For example, if McDonald’s knows you go there once a week, that lump of information is something they can use to keep you a customer, instead of you switching to Burger King.

    But what happens when this world of proprietary data systems goes away?

    The potential of blockchain-based or decentralized systems offers two challenges to our current reality:

    1. The data doesn’t belong to McDonald’s. It belongs to you.
    2. Anyone can access the data about the transactions that occur on a given blockchain. (For example, here are the latest Bitcoin transactions.)

    Let’s tackle #Two in this post, as I think it forms the basis of “data industrialization.” But very first, let me explain what data industrialization is (at least as I understand it).

    Data Industrialization Primer

    I didn’t invent the term data industrialization. I heard it from Robbie Mehler. He’s your culprit, but here are the basics.

    The era of physical industrialization was marked by humans’ ever-increasing capability to find, extract, manufacture and sell physical resources. Coal, oil, natural gas, diamonds, tungsten — you get the picture. We’ve done that exceedingly well. Very likely too well when you think about the climate switch influence, but that’s a different story. We’re getting better and better at this.

    The next era of human existence, according to Robbie, is how we do the same with vast amounts of data.

    To some extent, this is what Big Data is about. How do you find the right information (insights, truly) from within a hefty pool and extract it so that you can manufacture it, creating value for someone else?

    Then, how do you operationalize the process of finding insights so you can systematically create value at scale?

    (Robbie: how am I doing so far?)

    Where Blockchains Meet Data Industrialization

    As you know, a blockchain, at its core, is truly a distributed database where no one can modify or delete past entries and there are rules — the protocol — for how fresh entries are made to the ledger.

    That ledger is available to everyone. We’re all looking at the same Google Sheet or Excel document. Anyone can provide an interface to that ledger. That’s relatively effortless. That’s what you see here for Ethereum or zCash.

    A lot of people can also provide applications that enable you to interact with the protocol so you can participate. This is what Jaxx or BitPay do, for Bitcoin. They are software wallets.

    But very few people provide a set of analytic capabilities that suck up all of this data and tell you what it all means and what you should do about it. Fewer still have figured out the scalable process for doing this.

    That’s the chance.

    In fact, I think that is what Jamie Burke is referring to when he talks about blockchain-enabled convergence. Blockchains are the mechanism through which 3D printing, drones, and more hit global scale. They are also the foundation for an entirely fresh set of AI solutions.

    The Data Industrialization Chance in a Blockchain World

    Putting Jamie and Robbie together, I think you embark looking at the question of: who can put the best AI/machine learning solution on top of open, collective, blockchain-based data layers? Whoever does that gets some degree of competitive advantage.

    If your Bitcoin wallet, for example, instead of being “dumb” (as it is now) is actually “clever” — in the sense that it can advise/help you make sense of the world — you’ll use that one versus a competitor.

    You’ll also stay with them. In this world, customer lock-in doesn’t come from the idea of “let’s make it truly difficult for people to leave.” It comes from “how well can we mine, extract, and produce insights and value from the collective data layer so that people don’t want to leave.”

    If a dApp (distributed application) provider, like a Bitcoin wallet, is incapable to do that, the switching costs become an issue, because there basically are none. You’ll simply go somewhere else.

    The Trillion Dollar Opportunities

    The world’s top fifty mining (physical) companies are worth about $700 billion dollars. I suspect that we’ll see blockchain-based data mining companies that will lightly take us into trillions of dollars of market cap.

    Blockchains are step 1. Understanding what’s going on and turning that into insight systematically, that’s value creation.

    Reminder: Jeremy will be speaking at the MarTech Conference in Boston, October 2-4, with an in-depth talk on Blockchain and the CMO: The Next Era of Marketing. Register now for the “alpha” rate discount on tickets to assure your seat.

    Data industrialization on our way to marketing in a blockchain world – Chief Marketing Technologist

    Data industrialization on our way to marketing in a blockchain world

    DON’T MISS A CHANCE TO HEAR JEREMY SPEAK. He will be presenting at the MarTech Conference in Boston, October 2-4, with an in-depth talk on Blockchain and the CMO: The Next Era of Marketing. Register now for the “alpha” rate discount on tickets to assure your seat.

    We live in a world of “big data.”

    It’s pretty much common skill that an organization’s data sets are the source of competitive advantage. For example, if McDonald’s knows you go there once a week, that lump of information is something they can use to keep you a customer, instead of you switching to Burger King.

    But what happens when this world of proprietary data systems goes away?

    The potential of blockchain-based or decentralized systems offers two challenges to our current reality:

    1. The data doesn’t belong to McDonald’s. It belongs to you.
    2. Anyone can access the data about the transactions that occur on a given blockchain. (For example, here are the latest Bitcoin transactions.)

    Let’s tackle #Two in this post, as I think it forms the basis of “data industrialization.” But very first, let me explain what data industrialization is (at least as I understand it).

    Data Industrialization Primer

    I didn’t invent the term data industrialization. I heard it from Robbie Mehler. He’s your culprit, but here are the basics.

    The era of physical industrialization was marked by humans’ ever-increasing capability to find, extract, manufacture and sell physical resources. Coal, oil, natural gas, diamonds, tungsten — you get the picture. We’ve done that exceedingly well. Most likely too well when you think about the climate switch influence, but that’s a different story. We’re getting better and better at this.

    The next era of human existence, according to Robbie, is how we do the same with vast amounts of data.

    To some extent, this is what Big Data is about. How do you find the right information (insights, truly) from within a massive pool and extract it so that you can manufacture it, creating value for someone else?

    Then, how do you operationalize the process of finding insights so you can systematically create value at scale?

    (Robbie: how am I doing so far?)

    Where Blockchains Meet Data Industrialization

    As you know, a blockchain, at its core, is indeed a distributed database where no one can modify or delete past entries and there are rules — the protocol — for how fresh entries are made to the ledger.

    That ledger is available to everyone. We’re all looking at the same Google Sheet or Excel document. Anyone can provide an interface to that ledger. That’s relatively effortless. That’s what you see here for Ethereum or zCash.

    A lot of people can also provide applications that enable you to interact with the protocol so you can participate. This is what Jaxx or BitPay do, for Bitcoin. They are software wallets.

    But very few people provide a set of analytic capabilities that suck up all of this data and tell you what it all means and what you should do about it. Fewer still have figured out the scalable process for doing this.

    That’s the chance.

    In fact, I think that is what Jamie Burke is referring to when he talks about blockchain-enabled convergence. Blockchains are the mechanism through which 3D printing, drones, and more hit global scale. They are also the foundation for an entirely fresh set of AI solutions.

    The Data Industrialization Chance in a Blockchain World

    Putting Jamie and Robbie together, I think you commence looking at the question of: who can put the best AI/machine learning solution on top of open, collective, blockchain-based data layers? Whoever does that gets some degree of competitive advantage.

    If your Bitcoin wallet, for example, instead of being “dumb” (as it is now) is actually “clever” — in the sense that it can advise/help you make sense of the world — you’ll use that one versus a competitor.

    You’ll also stay with them. In this world, customer lock-in doesn’t come from the idea of “let’s make it indeed difficult for people to leave.” It comes from “how well can we mine, extract, and supply insights and value from the collective data layer so that people don’t want to leave.”

    If a dApp (distributed application) provider, like a Bitcoin wallet, is incapable to do that, the switching costs become an issue, because there basically are none. You’ll simply go somewhere else.

    The Trillion Dollar Opportunities

    The world’s top fifty mining (physical) companies are worth about $700 billion dollars. I suspect that we’ll see blockchain-based data mining companies that will lightly take us into trillions of dollars of market cap.

    Blockchains are step 1. Understanding what’s going on and turning that into insight systematically, that’s value creation.

    Reminder: Jeremy will be speaking at the MarTech Conference in Boston, October 2-4, with an in-depth talk on Blockchain and the CMO: The Next Era of Marketing. Register now for the “alpha” rate discount on tickets to ensure your seat.

    Related video:

    Column: Is the boom of bitcoin a bubble that – s about to burst, PBS NewsHour

    Column: Is the boom of bitcoin a bubble that’s about to burst?

    Making Sen$e columnist Vikram Mansharamani assesses whether the latest digital currency’s boom is bubble about to bust. Photo by George Frey/Getty Pics

    The rapidly rising price of bitcoin is leading many to question if the digital currency’s boom is about to bust. Strategist Peter Schiff, for example, recently warned “today’s bitcoin could be tomorrow’s beanie babies.” As of this writing, bitcoin is up almost thirty percent in the past month and over one hundred percent in the past year. It has been hitting fresh highs on an almost daily basis and recently crossed the $1,200 mark. So is there a bitcoin bubble about to burst?

    To attempt to reaction this question, let’s apply the framework for spotting bubbles that I articulated in my two thousand eleven book, “Boombustology: Spotting Financial Bubbles Before They Burst.” The treatment is based on the application of five lenses and generates a probabilistic assessment of a forthcoming bust.

    Most mainstream economic theories utilize a supply and request driven price determination model that generally results in prices tending toward equilibrium. I say “tending” because most serious scholars admit that behavioral and informational issues can contort the price at any one point in time, but there exists an overarching belief that such distortions are rapidly ironed out. Markets are, according to this view, basically efficient. Higher prices dampen request, and lower prices disincentivize supply.

    But what if that’s not true? What if higher prices increase request? Such a dynamic might arise for many reasons, but one eloquent explanation is the “Theory of Reflexivity,” as proposed by George Soros. Albeit it has many subtleties beyond the “self-fulfilling” logic that many ascribe to it, the underlying implication is that prices can and do tend away from equilibrium. The result: booms and busts.

    So has the higher bitcoin price been accompanied by higher request? It’s unclear. The evidence is mixed. On the one arm, it sure seems that as news about and interest in bitcoin rises, so does its price. It’s been seen as a safe-haven asset during times of elevated geopolitical, financial or regulatory risk and may even attract price-insensitive buyers at those times. But on the other forearm, the volume of trading has not gone up as prices have. And while volume is at best a crude proxy for request, it tells us about the general activity level. Lens one: half-check.

    Another telltale sign of a bubble is the presence of significant leverage supporting lofty prices. And while it’s unclear if bitcoin prices are bubbly or not, I don’t see any evidence that leverage is fueling the potentially elevated prices. There are no futures contracts that enable large exposures with minimal collateral. There are no options that provide de facto leverage. Sure, some investors may be utilizing other collateral to secure credit that is in turn used to buy bitcoin, but this is unlikely to track.

    But more importantly, perhaps, we can look at the amount of debt that has been holding up many of the countries that back traditional fiat currencies. (Hint: it’s not a puny number!) In addition, the fact that printing presses around the world proceed to print more and more money implies that traditional currencies are being debased at an alarming rate. With a motionless algorithmic release of extra bitcoins into the market and a cap on the total number that will ultimately be issued, the cryptocurrency represents a non-printable currency (similar in this respect to gold). Lens two: blank.

    Overconfidence and new-era thinking are the hallmarks of my third lens, psychology. Whenever individuals develop a devout belief that “it’s different this time,” buyers beware. It is infrequently different, and asset prices have never risen indefinitely. Rather, they generally go up and down, and in this regard, bitcoin prices are no different.

    It’s also clear that there is enhancing agreement that cryptocurrencies are the “new fresh thing” and suggest the promise of freedom from authoritarian manipulation of monetary instruments. Even investor Peter Thiel noted the promise of bitcoin by highlighting his own failure: “Paypal had these goals of kicking off a fresh currency. We failed at that, and we just created a fresh payment system. I think bitcoin has succeeded on the level of fresh currency.”

    And like gold bugs, bitcoin believers tend to exhibit religious conviction in the cryptocurrency’s capability to store value. They often go further, suggesting the amazing upside potential they exhibit. Internet analyst Henry Blodget has even suggested bitcoins could be worth $1 million per coin. In fact, CNBC’s Brian Kelly described bitcoin as “not just digital gold … it is a once-in-a-generation investment chance, similar to the internet, growing just as quick, if not quicker … it’s the internet of money.” Lens three: check.

    My fourth lens is politics, broadly defined to include both regulations and moral hazards. As with any asset, regulations can contort prices by either artificially enlargening or dampening supply or request.

    Just think of what happened when political motivations to increase home ownership in the United States nudged more and more people into houses. Without the political incentives, prices may not have risen as handsomely as they did during the housing bubble. Further, the moral hazard endemic in the use of government sponsored mortgage finance enabled lenders to play a game of “heads I win, tails you lose.” If loans worked out, the lender profited. If it didn’t, Fannie Mae or Freddie Mac bore the losses.

    When it comes to bitcoin, are there any artificial government interventions that are supporting bitcoin prices? No. On the contrary, regulators are attempting to discourage interest in bitcoin. Just look to China, where its major bitcoin exchanges were effectively shut down last month by government officials. But as noted by Elaine Ou in Bloomberg View, “even China can’t kill bitcoin.” Bitcoin prices shortly fell upon the news, but quickly recovered and marched higher. They’re up more than twenty five percent in the three weeks since China attempted to control trading.

    And when it comes to moral hazard, there are no signs of it in bitcoin land. No one bailed out those who lost millions when bitcoin exchange Mt. Gox filed for bankruptcy. No regulator prevented or intervened to manage the governance disputes that arose on the bitcoin algorithm. Many bitcoin market participants are transacting with open eyes, fully aware of the risks of doing so. There is no FDIC protection, no Federal Reserve put. Lens four: blank.

    Kolin Burges, a self-styled cryptocurrency trader and former software engineer who came from London, holds a placard to protest against Mt. Gox. Tokyo-based Mt. Gox was a founding member and one of the three elected industry representatives on the board of the Bitcoin Foundation. Photo by Toru Hanai/Reuters

    An application of epidemic logic to the investigate of financial bubbles can help gauge the relative maturity of manias. If we analogize an investment hysteria to a fever or flu spreading through a population, the variables of concern to us would include the infection rate, the removal rate, and perhaps most importantly, the percentage of the population not (yet) affected. The last metric can be thought of as the fuel available to keep the fire searing. Once we run out of people to infect, so to say, the party’s over. Fresh request will vanish. Prices will fall.

    When it comes to bitcoin, the number of potential buyers (that is, those still vulnerable to infection) is very large indeed. To begin, it’s not particularly effortless to buy bitcoin, and that’s deterred institutional investors. Specialized exchanges, online wallets and the need to protect private keys create thick friction in transactions, keeping many potential bitcoin buyers away. There isn’t an ETF, at least not yet. Stay tuned, however, as an ETF is in the works. And if approved (we’ll know more later this month), the Wall Street Journal notes it might generate a buying madness with up to $300 million of inflows during the very first week alone, a volume that dwarfs the presently traded daily value of any bitcoin exchange.

    And with a current market capitalization of around $20 billion, the bitcoin market is miniscule relative to its potential. Consider that the value of privately held gold is in the trillions of dollars or that the global remittances (a potential use for cryptocurrencies like bitcoin) presently tally into the hundreds of billions of dollars. The bottom line is that bitcoin just isn’t as widely held or used as it could be. There is still an enormous population of potential buyers waiting on the sidelines. And in a latest Twitter poll conducted by investor Mark Hart, only twenty two percent of respondents indicated that they were “Max Long” bitcoin, with forty nine percent “Planning to buy/add” or “Curious.” Lens Five: blank.

    So on my five-point scale, with five being a “virtually certain bubble likely to burst imminently,” bitcoin only registers one and half points. On the margin, this means that the stage may be set for it to become a bubble, but it doesn’t emerge to be one yet. It may one day become a full-blown bubble with high bursting risk, but the evidence doesn’t suggest we’re there yet. Recall that government attempts to contain bitcoin have failed, anointing the cryptocurrency with a “forbidden fruit” status and driving fresh request. Or that the possibility of an ETF or other investment instrument may emerge to ease the frictions of purchasing bitcoin.

    And the promise of clever contracts inspires visions of unprecedented request for digital currencies. In fact, just yesterday, a collection of large companies including Microsoft and JP Morgan announced they would be forming the Enterprise Ethereum Alliance. Ethereum is a distributed computing platform based on blockchain technologies that features the capability to design clever contracts. The cryptocurrency native to Ethereum is ether, and it’s been called “the greatest fresh thing in digital currency.” As the standard-bearer for cryptocurrencies, bitcoin will benefit from any attention ether generates. (Utter disclosure: I own both bitcoin and ether.)

    While short-term price corrections are always possible, there are compelling reasons to believe the long-term outlook for blockchain-enabled currencies like bitcoin is bright. If you’re looking for beanie babies, you best look elsewhere.

    Related video:

    Can I buy bitcoin with euro or do I need to switch it to dollars?

    Без кейворда

    Yes certainly, You can use any currency whatever you like. That's how powerful the bitcoin is. You need not to switch your currency. It's just an effortless peasy!

    My advise you must pick of your choose of local bitcoin websites. It's also your choice if you pick more that one.

    Choose whatever you think that is established enough. That has a good feedback, reliable and effortless to access

    In my private practice, I picked randomly.

    I have been in a bitcoin for duo of months now. The progress is superb.

    I eyed I site that has excellent feedback to all its clients. I'm interested to begin with a fresh one. I think they are superb. Here is their website; https://paxful.com/

    You can buy using any currency.

    • Coinbase (worst exchanger ?)
    • cexio (horrible customer service and two weeks verification delay)
    • bitstamp (takes time to verify your account, and to credit deposits, slow support)
    • paxful (you do not want to know that website)

    Yes you can. You can buy Bitcoin and Ethereum from International Exchanges like Bitcoin Exchange, Trading BTC USD, BTC EUR – CEX.IO ,Lake BTC , HitBTC , using your Credit Card / Debit Card / Wire Transfer / Paypal / Skrill .

    Bitcoin Exchange, Trading BTC USD, BTC EUR – CEX.IO is the best Destination to buy Ethereum. The Current price is 353$ , it is growing like anything.

    You can buy Ripple from Kraken .

    If you want to convert BTC to Ethereum/Monero/Ripple then use Changelly or Cryptonator .

    Yes, you can buy Bitcoins with Euro on CEX.IO Bitcoin exchange. For that, you can use your VISA/MasterCard payment card in Euros and buy Bitcoins for Euro right on the website, just like any good on the web.

    Our exchange possesses PCI DSS certificate that ensures safety of payment card data.

    We’ll be glad to see you among our customers!

    You can buy Bitcoin with euro and many other currencies at SpectroCoin . They even suggest Bitcoin debit card that permits you to spend bitcoin in all places that accept VISA or MasterCard.

    You can buy it with the currency that you want, but it’s lighter with CAD, Euro, GBD, NOK and maybe with other currencies, but for those it’s effortless.

    I give an example.

    I can buy Bitcoin with CAD with Coinbase or Quadriga CX in Canada.

    It costs me 3–5% with Coinbase to buy bitcoins and I can’t sell it (for cash) in Canada, but you can in the USA and in some countries.

    With Quadriga (Only in Canada), it costs 0.5% to buy in 3–7 days or 2% to buy and get your bitcoin instantaneously, to sell your bitcoins for cash, it costs 0.5% and you get the money in 2–5 days.

    I can send you my bitcoins from Coinbase to your Coinbase Account and you can see the balance in bitcoin and Euro (or the currency that you want).

    You can receive the bitcoin instantaneously and for free inbetween Coinbase member.

    But you sell your bitcoins for cash in Europe, so you withdraw your bitcoins on LocalBitcoins and sell them for 3–12% or for bounty cards for 20–50% fees.

    So you can say, hey I need a fresh TV, I need 700$, so you sell your bitcoins for 700$ Amazon Bounty cards, you take 35% fees, so it costs you 455$ in Bitcoins, you did 245$ in fees or profit.

    You can also sell your bitcoins for another currency on Poloniex, you have two choices.

    You buy a fresh cryptocurrency with your bitcoins like Golem, Stellar, Ripple, Siacoin, Burstcoin, ShadowCash, Ethereum, Dash, Litecoin, UBQ, if you don’t want to wait, you pay 0.02% fee, if you wait that someone take your suggest, you pay nothing.

    With another cryptocurrency that is at like 0.Ten cent or 1$, if it goes up to 100$, you made 1000x or 100x your cash, if it goes up to 1000$, you made ten 000x or 1000x your cash.

    You can also go in an ATM,

    You can also lend your bitcoins

    If you are in the Philippines, you can use Coin.PH , I think it’s the best Bitcoin company I eyed, the only issue is that it’s the best company but in Phippilines not outside, they need to expand.

    You can also buy a Bitcoin Card with Spectrocoin and buy and sell bitcoins for 1%, they have a card in US, Euro and GBP.

    The other card that are also good is Cryptopay and Coinbase in the US.

    The fresh cards are going to be indeed nice, Token and Monaco.

    You can also ask who want to buy or sell bitcoins on your Facebook wall, a lot of people are interested, especially when you are Truly in this world for more than three months, your friends switches.

    You can also use BitStamp in the Euro Zone, otherwise it costs too much, it’s truly cheap with SEPA transfer, but it takes time 1–3 days, with Credit card it costs too much according to me, 8% and 5% if you buy 5000euro and more.

    The debit card costs truly too much, it’s not an good option according to me, I choose the other cards and the only service that I found to buy bitcoins at good price with a credit card is Coinbase, otherwise it’s 7% and more.

    …I don’t buy bitcoins and get them from my company, so I sell them, I choose to use a way that I make money when I sell them :P.

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