Reconciling Blockchain Technology With California Consumer Privacy Act

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Coinbase: Institutional Folks Buying $200-400M Worth Crypto A Week

Brian Armstrong talked about institutional investors in the cryptocurrency space on Twitter earlier this week, saying the question of whether or not institutions will adopt cryptocurrencies has been answered. Coinbase is reportedly seeing hundreds of millions of dollars per week pouring in from legacy financial institutions.

Custody Woes

The main issue cited by institutions looking to get into Bitcoin and cryptocurrencies is of custodianship. Getting a hardware wallet is a good idea for the average user with a few hundred dollars invested, but when it comes to massive financial institutions, they’re looking to invest anywhere from hundreds of thousands to hundreds of millions of dollars. With those kinds of numbers, extreme care needs to be exercised in the storage of coins.

Most financial institutions simply don’t have the infrastructure for a robust security system, equipped with the tools needed to properly safeguard any coins they are responsible for.

This issue paved the way for companies like Xapo and Coinbase, to offer custodianship to those firms looking for a safe way to invest big amounts in Bitcoin or other crypto-currencies.

Finance firms hopping on the Bitcoin Bandwagon

Coinbase Custody is currently the largest custodian of cryptocurrencies. Officially launching their services in July of last year, they slowly built their customer base up, reaching $1 billion in assets controlled in April of this year. With Bitcoin’s bull run seen earlier this summer, it prompted many fence-sitters to finally jump into the market and invest. Within just five months of reaching $1 billion, Coinbase now controls over $7 billion in assets, and that trend seems to be continuing.

The biggest issue with crypto adoption at the moment is the lack of infrastructure surrounding these payment networks. Companies like Coinbase that are building out the framework that will allow the legacy financial institutions to easily use cryptocurrencies will foster the next wave of adoption, allowing more and more people all over the world to take back control of their finances and enjoy more economic freedom.

How long until Bitcoin price breaks $20k again? Are institutional investors the answer? Let us know your thoughts in the comments down below!

Images courtesy of Bitcoinist Media Library, Twitter: @brian_armstrong

Crypto Tidbits: Bakkt’s Bitcoin Futures, Coinbase & Xapo, IRS Cryptocurrency Crackdown

Another week, another of Crypto Tidbits. While this week was crazy bearish for the Bitcoin price, the fundamental developments seen made up for the market collapse. Bakkt revealed that it will be finally launching its Bitcoin futures product; Coinbase made a large acquisition of a facet of Xapo; and Binance revealed that it will be taking its formal step into the U.S. market in the coming months.

It wasn’t all sunshine and rainbows, however. A massive cryptocurrency scam trended on Crypto Twitter and a number of verdicts on Bitcoin exchange-traded funds (ETFs) were put off once again.

Related Reading: Crypto Tidbits: Bitcoin Mining by Blockstream, Ripple Investment Plans, Binance US Unveils Altcoin Lineup

Bitcoin & Crypto Tidbits

  • Bakkt Cleared by NDFS, Will Launch Bitcoin Futures in September: That’s right folks, Bakkt is finally ready to (fully) launch its Bitcoin futures contract to the world. Announced via a surprising blog post on Friday, the cryptocurrency exchange, which has been backed by players like the New York Stock Exchange, Microsoft Ventures, and Starbucks, has received NYDFS and CFTC — the two financial regulators involved in such cryptocurrency vehicles — clearance to offer its physically-deliverable Bitcoin futures to clients. The prominent startup is eyeing a September 23rd launch date. Analysts have stated that the product is likely to see mass adoption from the get-go, and might be the catalyst that slingshots the industry into its next round of rapid growth.
  • IRS Continues Crypto Crackdown… And It’s Not Done Yet: The Internal Revenue Service of the U.S. has continued its crackdown on American crypto investors, recently issuing yet another round of letters. The letters, according to CoinDesk, were sent to those that the IRS believes are skirting taxes on cryptocurrency trades. This comes shortly after the tax agency sent a preliminary warning to thousands of Coinbase users. A slide deck leaked on Twitter suggested that the IRS is likely to only expand its cryptocurrency-related collection efforts.
  • PlusToken Scam Trends on Twitter, Causes Mass Panic in Bitcoin Markets: This week, prominent cryptocurrency venture capitalist Dovey Wan issued dozens of tweets about a scam called “Plus Token”. As this scam originated and operated in Asia, it caught a large portion of Crypto Twitter by surprise, despite the fact that the scheme had been going on for just around a year. Wan claimed that while the ringleaders of the $3 billion scam had been caught, blockchain evidence suggested that PlusToken’s wallets, which contains hundreds of thousands of Bitcoin and Ethereum, was sending capital to exchanges. This result in fears that the market was going to dump.
  • Institutions Are Foraying Into Crypto: According to a recent tweet from Brian Armstrong, the chief executive of Coinbase, there is no question that institutions are starting to make bonafide forays into “crypto”. Citing data from his firm’s deposits, there is around $200 million to $400 million worth of cryptocurrencies deposited into Coinbase’s coffers each week from “institutional customers”.

  • Coinbase Picks up Xapo’s Institutional Custody Division: According to Fortune, Coinbase has acquired Xapo’s institutional custody business. for $55 million, outbidding Wall Street’s Fidelity Investments It isn’t clear if any of Xapo’s employees or executives will be jumping ship. But, it has been confirmed by a source that a “majority of Xapo’s largest clients” will be transferring their assets to Coinbase’s custody unit, which now owns over 514,000 BTC — wow. It is important to note that with this deal, Xapo isn’t leaving the crypto custodian business. Far from, in fact. Speaking with Fortune, Casares has stated that it will still have control over its famous Swiss vault, which he claims will be used to store Bitcoin on behalf of Xapo’s retail clients.
  • Binance to Launch U.S. BranchSpeaking to Cheddar, Binance’s Changpeng Zhao revealed that his company will likely be launching the U.S. branch of its service, which was launched to combat regulatory concerns, by November.
  • NBA’s Dallas Mavericks Now Accepts Bitcoin: Despite the fact that it may be just a PR stunt, the NBA’s Dallas Mavericks, owned by Mark Cuban, will now be accepting Bitcoin as a method of payment for game tickets and merchandise. Announced via a press release on August 13th, the Dallas Mavericks has become the second team in the NBA to directly accept Bitcoin. Per the release and tweets posted by those involved in this sudden move, BitPay will be the payment processor in this move.
  • Ciphertrace Finds Cryptocurrency Crime is Still a Massive Industry: According to a recent report from industry analytics firm Ciphertrace, bad actors online have managed to make billions through digital asset-related crime in 2019 alone. The report, which is titled “Q2 2019 Cryptocurrency Anti-Money Laundering Report”, found that aggregate losses incurred by investors and firms due to cryptocurrency crime has reached $4.3 billion in the first half of 2019. 5% of the sum was sourced from hacking. Around 20% of the illicit gains were a result of misappropriated funds. And these rest of the gains were stolen through exit scams, like the aforementioned Plus Token.
  • Bitcoin ETF Proposals Delayed… Again: The U.S. Securities and Exchange Commission (SEC) has delayed its verdict on proposals in this class for the umpteenth time. On Monday, it simultaneously issued a delay verdict on three Bitcoin-backed funds from Bitwise Asset Management, VanEck and SolidX, and Wilshire Phoenix.
Featured Image from Shutterstock

South Korean Crypto Exchange Coinone Releases Criteria for Crypto Listing

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Passing the Burden of Negative Rates to Bank Clients Opens Door for Cryptocurrencies

Passing the Burden of Negative Rates to Bank Clients Opens Door for Cryptocurrencies

Record low and negative interest rates have put commercial banks in a difficult spot. Across Europe, they have been passing the burden to their clients. Some have introduced fees for those with large account balances, while others are punishing everybody equally. In any case, some bankers fear this could lead to withdrawal of large amounts in cash, jeopardizing the cashless society traditional financial institutions have been building. Cryptocurrencies and their users have a lot to win in this situation.

Also read: EU Members Adopt Tougher Crypto Rules Than AML Directive Requires

Danske Bank Sees Risks for Society

Danske Bank, the troubled Danish institution which is struggling to overcome the consequences of a large money laundering scandal, is among those European banks that have been dealing in negative interest rates the longest. Denmark was arguably the first country on the continent to introduce them after the 2008 crash. In the summer of 2012, the central bank lowered its benchmark rate to -0.2% and has kept it around or below zero ever since.

Passing the Burden of Negative Rates to Bank Clients Opens Door for Cryptocurrencies
Benchmark interest rate in Denmark

With unprecedented low interest rates in Europe, many financial institutions have made a decision to pass the burden on to their account holders and even introduce fees on large cash balances. However, Danske has recently vowed not to punish its wealthy depositors with additional charges, unlike other major banks in the region. Chief Financial Officer Christian Baltzer warned in a recent interview with Bloomberg that charging customers with large deposits could pose a risk to society, as he put it.

Baltzer said that Danske acknowledges the difficult conditions in the financial sector, but emphasized Denmark’s leading bank does not plan to impose negative interest rates on personal savings or current accounts. In his opinion, charging private customers to hold money in their accounts could add new risks, one of which would be the erosion of the progress toward developing a cashless society. He further commented:

Doing so could have a negative impact at the societal level, including the risk of customers withdrawing more deposits in cash.

Negative interest rates are becoming the norm in Denmark, and corporate clients have already felt the brunt of the shift. Some banks admit they are about to pass the costs to retail depositors as well, something Danske views as a risky move and states they’re not even considering. Also, the Danish bankers association is now trying to convince Denmark’s central bank to introduce measures mitigating the pain for account holders.

Sub-zero rates have left investors in the Nordic country and elsewhere in Europe with very few options. Denmark’s government debt is currently trading at negative yields across all maturities. For example, the yield on the 10-year bonds has dropped to -0.6%. By the way, that’s not a phenomenon isolated only to the Scandinavian region. Bond yields in the rest of Europe and in industrialized countries elsewhere have been close to zero or negative for some time.

Big Banks Impose Fees on Big Deposits

In these unfavorable circumstances, Danske Bank, which has been dogged by various problems, is trying to avoid a move other banks have already decided to make. Starting from November, UBS, the largest Swiss banking group with global presence, is going to apply an interest rate of -0.75% to CHF deposits of more than 2 million francs (approx. $2.04 million) and charge an annual fee of 0.6% on deposits of €500,000 ($550,000) or more.

Passing the Burden of Negative Rates to Bank Clients Opens Door for Cryptocurrencies

The adjusted fees will be paid by the bank’s individual clients who hold Swiss francs with the Group’s bank in Switzerland, where other financial institutions like Julius Baer have already imposed similar rates and fees on cash deposits, Reuters reported last month quoting an official UBS statement. Another giant, Credit Suisse, also revealed it might do the same in regards to wealthy customers. Banks operating in the Eurozone are charging corporate depositors to cover the cost of negative rates but most large institutions have not levied such fees on private accounts yet.

Benchmark interest rates in the developed world remain historically low as central banks stubbornly insist on applying the same old recipe against recession. It’s a recipe that in an atmosphere of uncertainty and looming trade wars has largely failed to stimulate tangible economic growth but has instead inflated new bubbles, in the property market for instance. The Swiss National Bank policy rate and the rate it charges on commercial banks’ sight deposits remain in negative territory at -0.75%. The European Central Bank is expected to cut its deposit rate by 10 basis points to -0.5% next month. Denmark has its main interest rate set at -0.65%.

A Chance for Cryptocurrencies

A decade after the 2008 global financial crisis, banks are once again facing serious challenges. Beside Danske, other prominent European banks like Deutsche Bank, Raiffeisen, and KBC also had to deal with money-laundering accusations last year. In a first sign of what may be the next big financial meltdown, several banks in the U.S., Europe and China have already failed and had to be bailed out. The wave of job cuts in the industry is another indication the banking sector is struggling to overcome major problems.

In this situation, passing the burden of low rates on to bank account holders is going to hurt the traditional financial system. Even if wealthy depositors aren’t charged with additional fees, the negative interest rates are enough of a punishment for all clients in general. And it would be much easier for ordinary Europeans who keep billions in numerous small accounts to cash out their money, or even switch to alternative digital assets.

Passing the Burden of Negative Rates to Bank Clients Opens Door for Cryptocurrencies

Such transition would happen even faster if people take a minute and think about what cash deposits really are. When you give your money to the bank, it becomes an asset of the financial institution and your account is only a liability. From a legal standpoint, you no longer own the money, just the right to withdraw under the terms agreed to with the bank for your checking or savings account. These terms define your rights when it comes to accessing what used to be your funds.

Things work differently in the world of cryptocurrencies where you are the sole owner of your holdings. The troubles of the traditional financial system have reignited interest in decentralized digital coins, the prices of which do not depend on benchmark interest rates determined by central banks. But at the same time, in case you prefer to receive stable income for your crypto assets, new platforms have emerged offering banking services in this space and the interest rates are in fact much higher.

If you are looking to securely acquire bitcoin cash (BCH) and other leading cryptocurrencies, you can do that at And thanks to a new partnership between and Cred, you can now earn up to 6% on your BCH holdings. The offer shows that saving in digital assets can be much more profitable than keeping fiat in a bank account. This not only when prices are going up, but also through newly developed crypto banking services introducing more traditional products to the nascent industry.

Do you think banks should pass the burden of interest rates onto their clients? Share your thoughts on the subject in the comments section below.

Images courtesy of Shutterstock, Tradingeconomics.

Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Bulgaria, which sometimes finds itself at the forefront of advances it cannot easily afford. Quoting Hitchens, he says: ”Being a writer is what I am, rather than what I do.“ International politics and economics are two other sources of inspiration.

A Different Look at Crypto Market and Top Assets, How Dominated Is It?

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Former U.S. Presidential Candidate Ron Paul: “I’m All for Cryptocurrencies”


Former U.S. Presidential Candidate Ron Paul: “I’m All for Cryptocurrencies”


Texas Libertarian Dr. Ron Paul, who is a former U.S. presidential candidate (three times, in 1988, 2008, and 2012), discussed his views on blockchain technology and cryptocurrencies in an interview on Thursday (August 15). Also, a day earlier, he issued a statement on the Federal Reserve’s upcoming FedNow Service.

Blockchain and Cryptocurrencies

Dr. Paul’s comments came during an interview on Thursday on CNBC’s “Squawk Alley”

When asked about Facebook’s proposed cryptocurrency Libra, Paul said that he did not know what was going to happen with Libra, but had this to say about blockchain and crypto in general:

I’am all for cryptocurrencies and blockchain technology because I like competing currencies… I’m for the least amount of regulation. I don’t know what’s going to happen to cryptocurrencies. I think it’s great idea. And I only have one rule: no fraud.

The FedNow Service

America’s central bank, the Federal Reserve, announced via a press release issued on August 5 that Federal Reserve Banks “will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States.”

On Wednesday (August 14), Campaign for Liberty, a nonprofit political organization founded by Ron Paul that promotes respect for the U.S. Constitution, issued a statement (posted on its national blog) by its Chairman, Ron Paul, about the proposed FedNow Service:

“Consumers already have numerous options to make real-time payments, so the Federal Reserve’s decision to begin work on a central bank-run and controlled real payments system—what Competitive Enterprise Institute Senior Fellow John Berlau calls “FedNow”—is baffling.

“A Federal Reserve-run real payments system will crowd out private alternatives, leaving consumers with one government-run option for real-time payments. This will be bad for consumers and real-time entrepreneurs but good for power-hungry Federal Reserve bureaucrats who will no doubt use FedNow to help “protect” the Federal Reserve’s fiat currency system from competition from crypto currencies.”

South Korea’s ‘Bit-Island’ Jeju Announces New Blockchain Initiative

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于泽万:行情还未走出,压迫继续进行 日线走势并未发生大的变化,保持着十字星的走势,行情还未走出,局势难分难舍,资金量依旧保持萎靡的状态,仅场内资金在运作,各方保持观望的状态,大的方向依然是偏空的趋势,节奏还是在空头市场中,如果近期能反弹保持上行的趋势,突破到10800上方区域,行情方能形成反转,但以目前的压力来看,上方阻力重重,场外谁也不愿意做出头鸟,所以局势出现胶着的姿态,短期走势存在上攻的需求,但处于压力的范围,难以形成较强的突破行为,所以震荡还将延续;

​ 连续多日的下跌触及底部支撑发难,反弹上行到10000上方,成功带动场内多头资金的跟进,但30日均线与60日均线位置的套单过于强大,靠短期集齐的多头力量来推动上涨是可行的,但突破重阻确实难以行得通的,如果走势继续上行拉升,那么很容易遭遇到上方压盘的抛压,导致走势大幅回落,所以谁也不愿意做出头鸟,若主力机构想要强行拉升上去,势必要和其他大户一起拉升,但投资就是一场心理博弈战,谁也不能确保其他人会不会掉链子,而最好的做法是,就是用少量的资金拉升后,引发上方压盘进行抛压,在底部完成吸筹,不但能做到洗盘,还能减小自己的成本,可以说一举二得,所以今日晚间或者明日早间,应该会存在上破10600的走势,但不会过强,引发多头跟随后,走势也将会继续下压,所以关注10700附近,期货的朋友可以在该标附近跟进空单,而现货的朋友做好底部区域的接单即可; 上方给到的是最合适的一个建议,其实无论局势会怎样变化,我们只要把握有效的机会,均可以进入到获利的节奏中去,如果今日走势能在10500附近调整企稳,明日上攻后顺势突破了10800位置,那么说明多头有崛起的机会,站稳11000位置基本上局势就稳定了,这一次反弹带来的效果就体现出来了,但以目前的局势来看,走势还需真正的企稳,没有量能支撑,很难出现有效的上攻,所以行情还是更偏空一点; 无论行情怎么走,笔者给到的建议都是较好的时机且能获得不错的收益,近期跟进的朋友都已经得到了验证,当前日线级别MACD还未跌破0轴,所以反弹还是存在一线机会,若明日给到强有力的突破姿态,则MACD指标将在0轴形成金叉,多头行情就会出现,所以目前只看短期的反弹,操作上以空为主,毕竟是偏压制的姿态,保留空单的思路,10500-10700附近是有不错的入场机会,震荡趋势偏震荡,所以获利后及时离场,把握有效的获利节奏;文/公



1. 实际市值的意义

创建实际市值(Realized Cap)指标的原因是我们发现将市值(Market Cap)应用于加密货币时通常是一个无效指标。借用股票市场的市值概念,加密货币市值通常计算为:货币流通供应量 * 最新的市场价格。


从设计上来讲,加密货币领域不存在存管信托或结算机构,来负责追踪每个人的存款。因此,一旦代币或虚拟币丢失,它们就会一直处于丢失状态。以比特币为例,这意味着发行总量的大约 15% 已永久丢失且无法流通。但市值指标没有考虑这些细微差异,而是汇总所有已挖出的币的价值并以最新的市场价评估它们。因此,我们希望创建一个反映这些差异的指标,至少对于 UTXO 区块链是如此。

2. 需要考虑的问题





当 Pierre Rochard 要求提供有关比特币历史加权 UTXO 市值指标的数据时,Coin Metrics 工程师 Antoine Le Calvez 灵机一动,他找到了一个合适的方法,并将其称为实际市值(之前称为有效市值(Effective Cap))。



它可以简单地推广到 UTXO 链,稍作修改便可推广到基于账户的区块链



当我们 9 月份首次计算出这些数据时,比特币的市值为 1,150 亿美元,而实际市值为 880 亿美元。看起来已经有效果了。从头开始创建的新指标存在众多问题,因此它们也需要通过测试。实际市值的作用似乎就像罐头瓶上的声明那样:根据比特币在其经济体中的实际存在来衡量它们的价值(市值仅供参考,请以实际为准)。它是将市场和链上数据混合的新一代经济指标之一。

3. 一些难点





首先,想象一下中本聪的大约 70-100 万个的比特币真的只是被深度储存了,且他正计划在比特币的 10 周年纪念日那天(2019 年 1 月 3 日)将它们全部花掉。这种情况下,实际市值将严重削弱比特币在流通中的经济权重,因为对于这些遗失已久的币来说,它将以 2009 年的价格为其估值,即每个 BTC 的价格为 0 美元。实际市值很难区分哪些币是真正丢失或遗弃了,哪些币是被深度冷储存多年的。然而,即使是最冷的储存方案也需要被定期唤醒,以更新多签方案、领取分叉币或兑现一部分。无论如何,这些账户中有一大部分都会发生一些币的流动。


4. 如何计算


对于 UXTO 币种,这需要用首次被产出时的价格来为每一个输出(output)估值。例如,对于供应量为 10,市场价格为 10 美元的 UTXO 币种,其市值将为 100 美元。

如果 UTXO 集状态如下:

实际市值为:$0 + $1.2 + $5 = $6.2,或其市值的 6.2%,因为有 83% 的币多年来没有变动。



相比于 UTXO 模型,这种情况下无法锁定每个余额对应的产出时间,因此也就无法确定当时的价格,从而很难计算实际市值。

我们来看一个帐户的历史交易记录,看看可以使用哪些方法来准确评估其市值。我们假设当前时间是 2018-11-01,市场价格是 150 美元



我们使用账户最后一次交易时的价格,这里是 200 美元,实际余额为 194,000 美元。



为了避免已丢失的账户在收币时被重新估值,我们可以使用上次向外转币时的价格(如果没有发过币,则默认为创建账户时的价格)。在我们的例子中,这个价格是 1200 美元,实际余额是 1,164,000 美元。

虚拟 UTXO 价


虽然这是我们想要的效果(毕竟,我们只想忽略已丢失的币),但对于 UTXO 链来说这不公平。因为 UTXO 中,一个地址的整体余额并不被实际市值考虑在内,而只考虑已花费的币。

为了减少这种不良影响,我们可以为基于帐户的系统模拟一个 UTXO 集:



现在我们用虚拟 UTXO 的方法来重新回顾一下这个账户的历史,我们选择币的原则是最多的币优先:

因此,该账户实际余额为 1,025,000 美元。