Although Not Regulated, Colombian Cryptocurrency Ecosystem Is Reliable, according to Alejandro Beltrán

The regulatory landscape for cryptocurrencies in Colombia is still ambiguous. Bitcoin is gradually ceasing to associate with scams.

Alejandro Beltrán is the Country Manager of the exchange platform Buda.com in Colombia. He considers that Bitcoin and companies in the cryptocurrency ecosystem are reliable even if they are not regulated.

Beltrán mentions a belief rooted in the culture of Hispanic countries, according to which the law does not regulate is neither safe nor reliable. He assures that this premise is not always true.

In that sense, he explains the current situation of cryptocurrencies in Colombia. He says that, despite initial criticism and resistance, the ecosystem is beginning to receive recognition from the country’s authorities and financial sector.

The executive notes that there are no more discussions about whether Bitcoin is a scam or not, as was the case a few years ago, and there are signs of greater respect. He adds that even bitter detractors have realized that cryptocurrencies have a technical foundation and well-structured mathematical support.

“However, the landscape of cryptocurrency regulation in Colombia is ambiguous. The financial system still does not understand the adoption process and is not clear about the importance of the development of the Colombian ecosystem.” Beltrán refers to the difficulties that exchanges face when operating in Colombia since it is impossible to open accounts in banks.

Colombia’s Bitcoin Ecosystem Strengthens

Beltrán points to the growth of the cryptocurrency sector in the South American country. In this way, while authorities debate the rules that they can apply, the risks of regulation, and the fear of possible scams, the cryptocurrency movement is booming.

He says that when he entered the cryptocurrency world five years ago, people were just talking about scams. However, he notes that the discussion has now a different tone since the ecosystem has strengthened.

He tells about the process of conversations with the managers of the central bank and the supervisory agencies of Colombia, to demonstrate the validity of Buda and the companies that operate in the ecosystem. The exchange platform was forced to close in August 2018 but reopened its operations in 2019 after negotiations with authorities.

When talking about regulation, Beltrán also refers to the existing inaccuracies. Bitcoin has been declared as an unregulated asset in Colombia, since “it does not have a vice of legality and is not prohibited.” However, supervisory entities sometimes go too far and take liberties in a prohibitive tone.

Regarding the tax issue, Beltrán says that some users have expressed the need to declare their investments in cryptocurrencies before the Colombian treasury as part of legal compliance. He also cites a guide to cryptocurrency tax return that Buda published, with guidelines for several Latin American countries.

In another order of ideas, Beltrán highlights the role of education in this ecosystem. He says that this is the best promotional tool, a job that he has been doing from Buda. “By educating users and teaching them what cryptocurrencies are and how they work, it is possible to create the best sales force.”

Finally, he expresses his interest in integrating cryptocurrency technology with existing advances in artificial intelligence, machine learning, and the Internet of Things.

Furthermore, he believes that the ecosystem is heading towards a maturation stage. However, he thinks that further progress is necessary for terms of adoption to achieve greater use of cryptocurrencies as a means of payment.

By Alexander Salazar

Cryptocurrency Users Will Be Monitored by Coinbase and the U.S. Secret Service

The platform monitors transactions on Bitcoin to reveal illegal operations. Coinbase also negotiated its services with entities such as the DEA and the IRS.

Once again, Coinbase is in the eye of the hurricane due to its specialized software for blockchain analysis, which allows monitoring transactions on Bitcoin and other networks.

The controversy has raged after the exchange agreed on last May a government contract with the US Secret Service, an agency that is part of the Department of Homeland Security.

The agreement will allow the Secret Service to use Coinbase’s analysis software, a tool that could help them with their investigations against financial crimes. According to public records, the contract will grant the company around USD 183,750 for its services, which will be enabled until 2024.

The exchange already faced strong criticism in early July, due to two government offers that it received from the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS). Both entities were interested in using Coinbase’s blockchain analysis software, even negotiating a USD 250,000 contract.

Currently, these negotiations are dormant, possibly due to the closing of a contract with the US Secret Service. However, it is not the first time that one of these authorities has tried to contract services to monitor networks such as Bitcoin. The IRS recently stated that it was seeking tools focused on tracking private transactions on the Lightning Network.

Uncomfortable Blockchains Analysis, according to Coinbase CEO

Blockchain analysis services are not new in the cryptocurrency market since there are companies specialized in tracking transactions and spying on networks like Bitcoin. However, due to the privacy principles with which Satoshi Nakamoto created this blockchain, many members of the community are against this type of practice.

Brian Armstrong, CEO of Coinbase, highlighted this ambivalence on his Twitter account in response to the controversy. The businessman stated that platforms to monitor networks like Bitcoin have existed for a long time. However, he said that Coinbase decided to develop its software a few years ago to avoid sharing sensitive information with third parties.

Armstrong thinks that it is necessary to meet all the basic requirements of the Anti-Money Laundering (AML) standards since the exchange operates under a license in the USA. For this reason, they hired the services of companies dedicated to analyzing transactions to avoid illegal operations on their platform, until they acquired the intelligence agency Neutrino.

The purchase of Neutrino in 2019 also caused a stir of opinions in the ecosystem, since several of its members received accusations of participating in the spyware firm Hacking Team. That same year, Coinbase decided to separate from these professionals and develop the Coinbase Analytics service on their own.

Brian Armstrong adds that the information on this software has always remained separate from Coinbase’s internal data since it only monitors public data from networks such as Bitcoin. In this way, he says that anyone can monitor transactions and that this is the “true privacy of private currencies”.

By Alexander Salazar

Bullish Run for Bitcoin Price Is Predicted by Analysts

Robert Breedlove believes that Bitcoin will break the USD 100,000 barrier. Tuur Demeester believes that economies will grind to a halt in 5 to 10 years.

In recent days, four influential analysts gave their opinion on the use of Bitcoin, its price, and the global economic situation. Each of them has his perspective of what is happening and will happen with Bitcoin. However, all of them consider that the price of Bitcoin will rise rapidly and soon.

Nic Carter, a partner at Castle Island Ventures, stated that monetary failures will occur in several countries of the world in the next two years. He believes that the world will witness the bankruptcy of several fiat currencies as a result of the debt that has been rapidly accumulating since the COVID-19 pandemic began.

Carter considers that this situation will lead people worldwide to seek new ways to avoid losing value for their money. For that reason, he believes that many will choose to take shelter in Bitcoin or the US dollar to escape their local currency. By the law of supply and demand, the more people want to buy Bitcoin, the more its price must increase.

Tuur Demeester, Founder of Adamant Capital, believes that rising debt will cause the economies of several countries to stall in 5 to 10 years. In that sense, he said that Bitcoin operators must prepare for a massive demonstration that will cause a stir among everyone.

Demeester views Bitcoin as a self-directed insurance policy. He explained that users must interact with technology to learn how to use the cryptocurrency safely and legally. Furthermore, he stated that there is a possibility of seeing a bullish run in which the price of Bitcoin will increase by between 10 and 100 times its value in a short period.

Adoption as a Bitcoin Price Driver

Robert Breedlove, CEO of Parallax Digital, also believes that a massive bullish run for the price of Bitcoin is coming. He explained that political uncertainty and monetary expansion are generating the perfect storm.

Breedlove believes that the world will be able to see Bitcoin worth above USD 100,000 in around 5 years. The fact that Bitcoin reaches that price will inevitably draw the attention of thousands of new users, who will be interested in the cryptocurrency.

Alex Leishman, Founder of River Financial, noted that he has observed how a large number of new users are taking an interest in Bitcoin. From investors on Wall Street to 65-year-old women from the Midwest, people are showing increasing intention to know the cryptocurrency.

Of course, what these analysts said about the price of Bitcoin are just opinions, but not exactly what will happen. However, it is striking that several ecosystem analysts have a similar opinion.

For instance, a Bloomberg study suggests that the price of Bitcoin could reach USD 28,000. This analysis indicates that the COVID-19 pandemic has accelerated Bitcoin’s maturation and only something disastrous could prevent the cryptocurrency from appreciating.

On the other hand, Robert Kiyosaki, businessman, and writer, stated that the current economic situation worldwide could lead to Bitcoin being worth USD 75,000. He also thinks that the decisions that the U.S. Federal Reserve (FED) made are not competent enough in light of the situation.

By Alexander Salazar

Value of Latin American Fiat Currencies Concerning Satoshi

Venezuela, Colombia, and Chile have fiat currencies whose value is the closest to that of Satoshi. Peru, Brazil, and Bolivia have the most valuable currencies concerning the smallest unit of BTC.

An analysis of the price of some fiat currencies in Latin America indicates that five of them are closer to the value of 1 satoshi, while others far exceed that value.

Satoshi is the smallest unit of measurement of Bitcoin (1 satoshi = 0.00000001 BTC), with a current value of USD 0.00009; therefore, when the price of the first cryptocurrency changes, so does the value of Satoshi.

By taking the value of 1 satoshi as an indicator, it is possible to come to understand how strong Latin American fiat currencies are.

For example, the Venezuelan bolivar (VES) has a value of about USD 0.0000049, which is equivalent to about 0.05 satoshis. The bolivar is the only Latin American currency whose value is lower than 1 Satoshi. Inflation of 9.585%, in 2019, and the increase in the price of Bitcoin have made the fiat currency of the Caribbean country the least valuable in the entire region.

In Paraguay, the guarani (PYG) has a value of about USD 0.00015, which is equivalent to 1.65 satoshis. This is the Latin American country with the second weakest fiat currency concerning the smallest unit of Bitcoin. In the case of Colombia, people need 3 satoshis to acquire 1 Colombian peso (COP), which currently has a value of about USD 0.00027.

Fiat Currencies worth Close to 1 Satoshi

Venezuela and Colombia are among the Latin American countries with the highest number of users of Bitcoin and other cryptocurrencies. Venezuela leads the trading of Bitcoin in the region on the P2P platforms Paxful and LocalBitcoins, with a large 39% of the volume. Colombia is in second place, handling 29% of the Latin American volume, according to data from UsefulTulips.

Even though the Paraguayan fiat currency is worth close to 1 satoshi, the trading of Bitcoin in this country is low. Currently, Paraguay handles a weekly Bitcoin trading volume of just USD 4,973. This means that the country is handling 0.05% of Latin American trading on Paxful and LocalBitcoins.

In economies with stronger fiat currencies, it is possible to see that Bitcoin trading volume is low compared to that in Colombia and Venezuela. For example, Chile only handles 3.35% of Bitcoin trading volume on Paxful and LocalBitcoins, which could relate to greater savings capacity in the country.

Fiat Currencies Worth between 10 and 500 Satoshis

Then there is the Costa Rican colon (CRC), which is worth 18 satoshis (about USD 0.0017). As in Chile, Bitcoin trading in Costa Rica is relatively low. They handle only 1.89% of the total Latin American volume on Paxful and LocalBitcoins.

The value of Argentina’s fiat currency is much higher than the smallest unit of Bitcoin. The Argentine peso (ARS) is equivalent to 156 satoshis or USD 0.014. A bit higher Bitcoin trading volume adds to the health of the Argentine peso, compared to Satoshi.

Argentina handles around 5.44% of the Bitcoin trading volume on Paxful and LocalBitcoins, which has increased since the application of exchange rate controls in the country. This South American country has more operating cryptocurrency exchanges and a higher level of activity than others in the region.

The Bolivian peso (BOP) has a value of USD 0.14, which is equivalent to 1,548 satoshis. Although the figure is considerably higher than that of its neighboring countries, the Central Bank of Bolivia prohibited the use of cryptocurrencies in the national territory. This could be the reason why Bolivia handles just 0.33% of Bitcoin trading volume in Latin America.

Fiat Currencies Worth above 1,000 Satoshis

In Brazil, the real (BRL) has a value of 2,102 satoshis, which is equivalent to USD 0.19. Brazil is in fourth place in the Latin American trading ranking, handling 4.99% of the total volume on the platforms Paxful and LocalBitcoins.

Finally, Peru is the Latin American country whose fiat currency is ahead in terms of its value compared to Satoshi. The Peruvian sol (PEN) is worth around 3,075 satoshis, about USD 0.28. Peru handles 9.08% of Latin American Bitcoin trading volume. This places the Inca country in third place in the Latin American trading volume ranking.

This analysis reveals the possibility to use Satoshi as a unit of measurement to assess the performance of countries’ fiat currencies. The contrast with Bitcoin allows for more transparent studies, given the well-known scheduled issuance of new coins on this network, as well as a price that fluctuates freely in the market.

By Alexander Salazar

Bitcoin prices have changed and this is what we know about it

Bitcoin prices and regulations have changed, yes, exactly as I’m saying it. This is not simple speculation. The truth is in the numbers, waiting for Bitcoin to climb suddenly from a standard price to a higher number in a short amount of time is a dream of the past, and the records-high in a week have notably declined.

After April, the halving has not gone that well. Bitcoin has been trading largely sideways without surprising or sudden changes. At this very moment, Bitcoin is being traded at $9,242.90, down 0.10%.

Why those beautiful moments when bitcoin used to climb up from $9,000 to more than $15.000 are simply gone?

Volatility adapts to the evolution of the market, the spikes will show up constantly but it will never get back as it used to be. Despite this, Bitcoin is now in a more solid position than some years ago, and this is very refreshing news.

In general lines, Bitcoin puts its feet heavily on the ground for the first time, and it is important to understand that those aggressive fluctuations are over; we must adapt to it due to this global pandemic. Bitcoin has not fared well enough in the market since the COVID-19 gave birth to a massive amount of restrictions around the world.

If it starts its move down, we can find a balance

September seems to be a good month for big numbers; October has the potential to see some spikes until January when everything is expected to be set up and more balanced.

Investors can start to see good chances at that time because physical money is going to be more available to speculate with. Besides, the aggression in the Bitcoin market at the end of January will come back when the second waves of the pandemic decrease in almost every country with a solid bitcoin market.

Bitcoin slowly upwards in September if every economy, especially that of the U.S. recovers, they both will improve in parallel. Until that time, bitcoin prices remain stable, but be sure you will not see any instant climb up until everything gets back on the trail, which includes every sector in the economy of the United States of America.

Bitcoin is being seen as a secondary option

As we know, there is still a large group of investors that firmly believe that cryptocurrency is totally against financial traditions. This happens because people who dare to invest in Bitcoin mining get extremely worried about their cash flow.

With all this instability, Bitcoin is starting to be seen as an alternative chance to invest in. The concerns are now centered on stock prices and the attention on Bitcoin has decayed a lot. This reflects the disappearing of the sudden aggressive spike on its prices.

Jenson Nuñez

Fundamental Metrics Indicate that Bitcoin Is Still Healthy

The growth in the number of active addresses has exceeded the record levels of July 2019. The coupling of Bitcoin with traditional markets makes it more sensitive to contingencies.

Bitcoin’s price continues to be stable, after fluctuating between USD 9,000 and USD 10,000 for over two months. Despite the uncertainty of the global economy, the first cryptocurrency shows several favorable aspects, according to renowned market analysts.

In recent days, a Bloomberg Intelligence report stated that several metrics and indicators favor Bitcoin. According to the document, the cryptocurrency can transcend from being “a highly speculative asset to the crypto equivalent of gold.” Although Bitcoin’s volatility may even decrease in the immediate term, Bloomberg hopes that the recent period of stability will resolve with higher prices.

To support this thesis, the financial company mentions that both Bitcoin’s primary demand and adoption have increased. There are indicators that institutional demand for Bitcoin is comparable to gold-based exchange-traded funds (ETFs), according to the report, an example of which is Grayscale’s Bitcoin-based fund, GBTC.

Additionally, Bloomberg lists other factors that underpin the original cryptocurrency. Among these are the increasing number of used addresses, investment products with more capital flows, and the open interest in futures.

Boom of Gold and Its Correlation with Bitcoin

Last July 8th, there was a record rise in gold prices, to the same levels as in September 2011. In addition to western investors’ demand for gold-based ETFs, the deputy director of the Fed spoke about continuing federal aid as the cause of the abrupt rise in prices.

That same day, Bitcoin recorded a steep rise, confirming that its correlation with gold continues to increase. Even after the crash of the markets on March 12th, Bitcoin has entered a new phase of coupling with traditional markets. In addition to the coincidences with gold, there have been coincidences with the S&P 500 index.

Many bitcoiners consider that the risk of this coupling is that Bitcoin could become more sensitive to external geopolitical and economic events. Along with the negative impact on traditional markets due to a resurgence of COVID-19 infections in the USA, Bitcoin also recorded a sudden, albeit moderate, drop.

DeFi in Full Swing

In recent days, the total value of funds blocked by decentralized finance (DeFi) platforms has exceeded USD 2 billion. In February this year, the level had been above USD 1 billion, but DeFi activity also fell sharply in mid-March. However, the recovery accelerated from USD 1.05 billion on June 15th to USD 2.25 billion on July 10th, a jump of 114%.

This increase in blocked capital reflects that loans on these platforms have become very popular in recent months. The loan dynamic of Yield Farming is such that the platforms offer incentives even to those who apply for loans. The latter can use part of the blocked funds as collateral for ultra-fast loans, which further increases their profits.

Auspicious Bitcoin Trading Volume in Argentina

Bitcoin trading volumes on the P2P platforms LocalBitcoins and Paxful reflect a large rebound between January and June of this year in Argentina. Last January, there was a trading volume in that country equivalent to USD 1.34 million on LocalBitcoins. In June, the trading volume exceeded USD 2.2 million, recording an increase of 64%.

Although the trading volumes on Paxful are much lower, they went from USD 9,986 in January to USD 70,987 in June, which represents an increase of 700%. Exchanges also had a significant increase in the trading volume, according to Matías Bari, CEO, and co-founder of SatoshiTango. The executive said that growth in this market has been around 500% since isolation for the COVID-19 pandemic began.

By Willmen Blanco