Square Sees Profits From Bitcoin Sales Double in Q2

Square Sees Profits From Bitcoin Sales Double in Q2

Mobile payment firm Square said it made $37 million in revenue from bitcoin sales in the second quarter of 2018. The company released an unaudited quarterly financial report on Wednesday, which indicated it made an overall net revenue of $814 million, 6 percent of which came from the cryptocurrency buying service added to its Cash App late last year. However, with the cost of facilitating bitcoin purchases mounting to over $36.5 million in the same period, Square again chalked up a small margin of $420,000. That said, the firm’s bitcoin sales profits nearly doubled compared to the first quarter’s figure of around $223,000, as previously reported by CoinDesk. Meanwhile, Square disclosed that the carrying value of bitcoin held by itself was $0.4 million as of June 30. During a conference call on Wednesday, Square’s chief financial officer Sarah Friar said the goal of the bitcoin buying service on the Cash App is not “trying to push on the monetization of bitcoin today.” Square added the crypto service in November for a testing phase and then opened it up to consumers in January, allowing users in almost all U.S. states to buy and send bitcoins. In June, Square received a so-called BitLicense from regulators in the state of New York, inching a step closer to offering the service to all states in the country. Bitcoin and dollars image via Shutterstock b The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Bitcoin Exchange Sponsoring Premier Soccer Club

Bitcoin Exchange Sponsoring Premier Soccer Club

News English Premier League soccer club Wolverhampton Wanderers (Wolves) are playing their season with a first-of-its-kind left sleeve: cryptocurrency exchange Coin Deal’s logo. While plenty of other examples of the intersection between professional sports and cryptocurrency exist, the arrangement between the exchange and the Wolves is a fairly big step in bringing the crypto idea to a very mainstream audience. Also read: Coinbase Flexes Muscle, Creates Political Action Committee Wolves Lend a Shoulder to Promote Coin Deal Exchange “Looking back at our trip to Molineux Stadium in Wolverhampton,” Coin Deal recently posted, “where our founder and CEO, Kajetan Maćkowiak, signed the historic document making Coin Deal a very first digital currency exchange platform in the Premier League” meant mainstream exposure for the exchange. “We are proud to be a sponsor of such a big football club as Wolverhampton Wanderers FC!” Mr. Maćkowiak stressed. Bringing digital assets into such a market just might be what England’s football fans need to onboard into the broader crypto world. According to Coin Deal’s history of the franchise, the Wolves have been in existence since the late 19th century. The 141-year-old club won the 2017–18 EFL Championship. The stadium where the sponsorship was signed has been the Wolves’ home since 1889. “As an exchange,” Coin Deal explained, “that we ourselves would like to use, we want to be close to our users and their needs; we also share the passion for sport.” The Coin Deal logo appears prominently, pride of place, on the uniform’s left sleeve. An offensive blast, a defensive save, or simply running down the field will be opportunities for soccer fans around the UK to get exposed to a crypto product. According to local media, the team has never worn a sleeve sponsor. Huge Gesture of Goodwill “We are well aware of the impact that football marketing can have on a brand and its community,” Coin Deal noted, “especially in an industry such as ours. We truly believe that Wolverhampton Wanderers participating in a competition as prestigious as English Premier League will help to deliver our message globally. It is an exciting challenge for us and we are proud to be the official partner of Wolves!” The Wolves’ managing director, Laurie Dalrymple, was equally complimentary, praising Coin Deal…

BTC/BCH Payment Service Bitpay Reports Growing Usage Processing $1.2 billion USD

BTC/BCH Payment Service Bitpay Reports Growing Usage Processing $1.2 billion USD

Economy & Regulation Bitpay’s chief operating officer, Sonny Singh, recently attested to the efficacy of bitcoin as a means of payment, stating that “bitcoin is being used all around the world for things other than speculation and trading.” The COO also reported that Bitpay processed $1.2 billion USD worth of bitcoin payment in 2018. Also Read: Swissquote Reports 44% Increase in Profit After Adding Cryptocurrency Services  It Does Not Matter To Bitpay Whether It’s ”Crashing” Sonny Singh, the chief operating officer of Bitpay, recently discussed the use of bitcoin as a means of payment. Mr. Singh stated that “Bitcoin is actually working,” adding that when “people say ‘wow the price has gone down so much, it’s crashing’ – that’s not relevant to what I’m doing.” The Bitpay CEO asserted that “The key thing is that bitcoin is actually being used all around the world for things other than speculation and trading.” Mr. Singh claims that Bitpay “did 1.2 billion dollars last year in payments,” adding that such “means people spent $1.2 billion dollars of payments using bitcoin.” Need for Greater Crypto Education to Foster Adoption Despite his belief that bitcoin is currently “working” as a means of payment, Mr. Singh emphasized the need for greater education regarding the benefits of cryptocurrency in order to foster adoption. “In America, everyone’s so used to credit cards or goes online and types credit card numbers. But it’s safer and easier to do this through QR code because you don’t have to give your credit card numbers. […] The merchants save money in America by paying with bitcoin, because they pay 1% of the transaction fee, but with credit cards, that’s 4%. So the merchants can make a lot of money if you are paying with bitcoin. But yet they don’t understand it, they have to be educated about it. And the consumers have to get the habit of spending with bitcoin. For them, it’s better and quicker than credit cards, and better for privacy,” he stated. Mr. Singh added that the typical American cryptocurrency-user is principally concerned with speculation rather than the utility of bitcoin, stating: “A lot of people in America have heard of bitcoin, but not a lot of them own bitcoin. Even the tech people and…

Square Sees Bitcoin Sales Profits Double in Q2

Square Sees Bitcoin Sales Profits Double in Q2

Mobile payment firm Square said it has made $37 million in revenue in the second quarter from its offering of bitcoin sales. The company released an unaudited quarterly financial report on Wednesday and stated it made an overall net revenue of $814 million, 6 percent of which came from the cryptocurrency purchase service enabled on its Cash App late last year. However, with the cost of facilitating bitcoin purchases mounting to over $36.5 million in the same period, the report indicted Square again booked a small margin of $420,000 for its bitcoin service. That said, the firm’s bitcoin sales profits nearly doubled compared to that in the first quarter, which was around $223,000 as previously reported by CoinDesk. Meanwhile, Square disclosed that the carrying value of bitcoin held by itself was $0.4 million as of June 30. During a conference call on Wednesday, Square’s chief financial officer Sarah Friar said the goal of the bitcoin purchase service on the Cash App is not “trying to push on the monetization of bitcoin today.” Square added the service in November in a testing phase and opened it up to consumers in January, through which users in almost all states in the U.S. can buy and send bitcoins. In June, Square received a BitLicense from regulators in the state of New York, inching a step closer to offering the service to potentially all states in the country. Bitcoin and dollars image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Korean Crypto Exchange Bithumb Suspends Opening New Virtual Accounts

Korean Crypto Exchange Bithumb Suspends Opening New Virtual Accounts

Exchanges Bithumb has suspended issuing new virtual accounts to crypto traders starting on August 1 after failing to renew the contract with its bank. These accounts are part of the real-name system enforced by the Korean government earlier this year. Only three exchanges in the country are now reportedly able to open new virtual accounts for their customers. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Bithumb Halts Issuing New Virtual Accounts Crypto exchange Bithumb has announced the suspension of new virtual account issuance starting on August 1. With a 24-hour trading volume of $245,786,110 at the time of this writing, Bithumb currently ranks as South Korea’s largest cryptocurrency exchange by trading volume, according to Coinmarketcap. Business Korea elaborated: Bithumb, one of South Korea’s four biggest cryptocurrency exchanges, will stop issuing new virtual accounts from August as it has failed to renew a contract with NH Nonghyup Bank. However, the news outlet noted that “customers who already have virtual accounts can use them for deposit and withdrawal services.” For Bithumb customers, virtual accounts are needed to deposit or withdraw Korean won. According to Etoday, the bank has given Bithumb a one-month grace period. During this time, it will continue to provide deposit and withdrawal services for existing accounts. However, the publication noted that “it will become difficult to use existing virtual accounts if the contract renewal is finally terminated.” Using the Real-Name System Real-name virtual accounts are part of the system aimed at preventing money laundering and increasing transparency, implemented by the Korean government at the end of January. The regulators want all crypto trading accounts to be real-name ones but are met with a number of challenges. The biggest problem is that banks only offer this service to four of the country’s largest crypto exchanges. The rest of the exchanges still use corporate accounts which the regulators are trying to phase out citing that they are more prone to money laundering. The four exchanges receiving real-name services were Upbit, Bithumb, Coinone, and Korbit. Each had been increasing its efforts to comply with the anti-money laundering (AML) regulation. In May, Bithumb said it will lower withdrawal limits for traders not using the real-name system. “We have decided to gradually reduce the withdrawal amounts in…

BTC/BCH Payment Service Bitpay See Increased Usage Processing $1.2 billion USD

BTC/BCH Payment Service Bitpay See Increased Usage Processing $1.2 billion USD

Economy & Regulation Bitpay’s chief operating officer, Sonny Singh, recently attested to the efficacy of bitcoin as a means of payment, stating that “bitcoin is being used all around the world for things other than speculation and trading.” The COO also reported that Bitpay processed $1.2 billion USD worth of bitcoin payment in 2018. Also Read: Swissquote Reports 44% Increase in Profit After Adding Cryptocurrency Services  It Does Not Matter To Bitpay Whether It’s ”Crashing” Sonny Singh, the chief operating officer of Bitpay, recently discussed the use of bitcoin as a means of payment. Mr. Singh stated that “Bitcoin is actually working,” adding that when “people say ‘wow the price has gone down so much, it’s crashing’ – that’s not relevant to what I’m doing.” The Bitpay CEO asserted that “The key thing is that bitcoin is actually being used all around the world for things other than speculation and trading.” Mr. Singh claims that Bitpay “did 1.2 billion dollars last year in payments,” adding that such “means people spent $1.2 billion dollars of payments using bitcoin.” Need for Greater Crypto Education to Foster Adoption Despite his belief that bitcoin is currently “working” as a means of payment, Mr. Singh emphasized the need for greater education regarding the benefits of cryptocurrency in order to foster adoption. “In America, everyone’s so used to credit cards or goes online and types credit card numbers. But it’s safer and easier to do this through QR code because you don’t have to give your credit card numbers. […] The merchants save money in America by paying with bitcoin, because they pay 1% of the transaction fee, but with credit cards, that’s 4%. So the merchants can make a lot of money if you are paying with bitcoin. But yet they don’t understand it, they have to be educated about it. And the consumers have to get the habit of spending with bitcoin. For them, it’s better and quicker than credit cards, and better for privacy,” he stated. Mr. Singh added that the typical American cryptocurrency-user is principally concerned with speculation rather than the utility of bitcoin, stating: “A lot of people in America have heard of bitcoin, but not a lot of them own bitcoin. Even the tech people and…

Before the ‘Bomb’ Hits: Why the Race Is on to Alter Ethereum’s Economics

Before the ‘Bomb’ Hits: Why the Race Is on to Alter Ethereum’s Economics

The proposals just keep piling in. At press time, a total of six ethereum improvement proposals (EIPs) have emerged, each hoping to alter the project’s code ahead of an upcoming software update (scheduled for October). Driving the debate is ethereum’s so-called “difficulty bomb,” a piece of code locked into the $45 billion platform that makes it so a steadily increasing amount of computing power is needed to mine its blocks and unlock its rewards. As designed, the code would eventually push the blockchain into an “ice age,” where no further blocks can be formed – that is, if left untouched. Originally added to ease a transition in which ethereum would change how participants on its blockchain come to agreement – migrating from bitcoin’s pioneering proof-of-work algorithm to an alternative called proof-of-stake – the difficulty bomb is set to reactivate in early 2019. With no proof-of-stake migration in sight, steps must now be taken to delay the bomb — as well as reconfigure how ether rewards are released so as to ensure incentives are aligned to properly secure the blockchain. But delaying the bomb brings its own problems. For one, it will make blocks easier for miners to find, meaning ether rewards (currently at 3 ETH) must be decreased along with the delay to ensure that the cryptocurrency is produced at the same rate. However, because ethereum lacks a formal agreement on its rewards model — unlike bitcoin, whose code caps its creation at 21 million units — there are differing perspectives on how much supply should be reduced, with many calling for a further reduction (and some for an increase) of the quantity of ether that is distributed to miners. Further, having such a debate in a decentralized network brings added obstacles. Users, for example, could vote according to how many coins they own — a popular signaling method, but one that has been criticized as too informal a metric. But miners (the individuals dedicating computing power to the software) aren’t guaranteed to support a vote. It’s worth noting that debates concerning ethereum’s undefined issuance model, as well as the difficulty bomb, have emerged several times throughout ethereum’s three-year history. As detailed by CoinDesk, it’s a difficult topic because when it comes to monetary policy,…

Denver-Based Healthcare ICO Issued Cease and Desist for Offering Securities

Denver-Based Healthcare ICO Issued Cease and Desist for Offering Securities

Crowdfunding Colorado Securities Commissioner, Gerald Rome, has issued a cease and desist order to Florida based Linda Healthcare Corporation and its founder, Arturo Devesa, halting the company’s initial coin offering (ICO) due to the token sale being deemed an offering of an unregistered security. The cease and desist is a reaffirmation of a previous ruling made in July by administrative Judge, Matthew Norwood. Also Read: Markets Report: July Posts Second Strongest Monthly BTC Performance of 2018 Linda Healthcare Corporation Issued Cease and Desist The Colorado Department of Regulatory Agencies’ Division of Securities first became aware of Linda Healthcare Corporation’s “Linda Health Coin” (LNDA) in April. A press release published by the Colorado Department of Regulatory Agencies states that the LNDA token was advertised to “be used to purchase specific ‘Linda Health Insurance’ covering telemedicine through an artificial intelligence chat services that creates medical solutions through use of blockchain technology.” The release asserts that “Potential buyers of LNDA coin are not provided disclosures of the risks of investing in cryptocurrency and a pop-up that states that this particular ICO constitutes a security in the state of Colorado can be closed and easily ignored.” LNDA ICO Determined to Comprise Securities Offering The company claimed that it’s offering resembled a “crowdfunding campaign,” however, Judge Norwood found that the offering as detailed in the company’s white paper and website falls under the classification of an “investment contract.” Judge Norwood determined that a “LNDA token is a security in that it meets all three prongs of the [Howey] test. It is 1) a contract, transaction, or scheme whereby a person invests his or her money in 2) a common enterprise and 3) is led to expect profits solely for the efforts of the promoter or a third party.” Commissioner Rome stated: “ICOs are highly risky and should only be undertaken by sophisticated investors with the understanding that they may lose most or all of their funds. Most ICOs meet the terms of a securities transaction and carry with them all of the same risks when it comes to losing money. […] Investment opportunities being sold through ICOs over the internet need to be approached with the same level of caution as any high-risk investment venture. If you are investing money in…

Australian State Government Invests in Crypto Startup to Promote Regional Tourism

Australian State Government Invests in Crypto Startup to Promote Regional Tourism

The state government of the Australian province of Queensland will issue a grant to a crypto startup as part of over $8.3 million of innovation funding, according to an official announcement published August 1. According to the government statement, the TravelbyBit digital currency payments platform for the travel and tourism industry is one 70 companies that will receive Advance Queensland Ignite Ideas funding, which supports entrepreneurs in Queensland in developing their businesses. The company’s objective will be to boost the number of tourists to Central Queensland through selling travel offers with cryptocurrencies and creating more jobs. Innovation Minister Kate Jones said: “TravelbyBit has devised a clever way to make it easier for visitors to our state to pay for their purchases with a growing number of local businesses accepting cryptocurrency payments… I understand TravelbyBit is specifically targeting places like Bundaberg (along the Great Barrier Reef) – using cryptocurrency to make it easier for tourists to book holidays.” Co-founder and CEO of TravelbyBit Caleb Yeoh said that the company has partnered with Brisbane Airport Corporation to launch the “world’s first digital currency friendly airport” and has already implemented a blockchain-backed point-of-sale system in regional tourist towns. According to Yeoh, travelers can pay with Bitcoin (BTC), Litecoin, Dash, Ethereum, XEM and soon BNB. Yeoh said: “We have more than 150 merchants across Australia using our system and this funding, to develop a purpose-built platform that will accept digital currencies from anywhere in the world, will allow us to add jobs not only directly to our team but also across the broader tourism industry.” Australia is not the first country to integrate digital currencies into the tourism sector. Earlier this spring, the German National Tourist Board (GNTB) announced that it started to accept BTC and other cryptocurrencies as a form of payment for its services. In June 2014, IrishCoin was launched to boost the tourism sector in Ireland. The coin aimed to promote tourism by acting as a discount voucher at participating bars, restaurants, hotels, and tourist attractions. At press time, IrishCoin is trading at $0.0065 with a market capitalization of $231,648, or 30 bitcoins (BTC).

Bitpay COO Believes Bitcoin is “Working” as Means of Payment

Bitpay COO Believes Bitcoin is “Working” as Means of Payment

Economy & Regulation Bitpay’s chief operating officer, Sonny Singh, recently attested to the efficacy of bitcoin as a means of payment, stating that “bitcoin is being used all around the world for things other than speculation and trading.” The COO also reported that Bitpay processed $1.2 billion USD worth of bitcoin payment in 2018. Also Read: Swissquote Reports 44% Increase in Profit After Adding Cryptocurrency Services  Bitpay COO Promotes Bitcoin as Means of Payment Sonny Singh, the chief operating officer of Bitpay, recently discussed the use of bitcoin as a means of payment. Mr. Singh stated that “Bitcoin is actually working,” adding that when “people say ‘wow the price has gone down so much, it’s crashing’ – that’s not relevant to what I’m doing.” The Bitpay CEO asserted that “The key thing is that bitcoin is actually being used all around the world for things other than speculation and trading.” Mr. Singh claims that Bitpay “did 1.2 billion dollars last year in payments,” adding that such “means people spent $1.2 billion dollars of payments using bitcoin.” Need for Greater Crypto Education to Foster Adoption Despite his belief that bitcoin is currently “working” as a means of payment, Mr. Singh emphasized the need for greater education regarding the benefits of cryptocurrency in order to foster adoption. “In America, everyone’s so used to credit cards or goes online and types credit card numbers. But it’s safer and easier to do this through QR code because you don’t have to give your credit card numbers. […] The merchants save money in America by paying with bitcoin, because they pay 1% of the transaction fee, but with credit cards, that’s 4%. So the merchants can make a lot of money if you are paying with bitcoin. But yet they don’t understand it, they have to be educated about it. And the consumers have to get the habit of spending with bitcoin. For them, it’s better and quicker than credit cards, and better for privacy,” he stated. Mr. Singh added that the typical American cryptocurrency-user is principally concerned with speculation rather than the utility of bitcoin, stating: “A lot of people in America have heard of bitcoin, but not a lot of them own bitcoin. Even the tech people and college…