$$ People Love Talking About Bitcoin More Than Using It

$$ People Love Talking About Bitcoin More Than Using It

More than eight years after it started, bitcoin isnt living up to early hype as the payment system of the future. It has failed to emerge as a mainstream payment method among consumers.

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Big Money Made in China as Bitcoin Traders Wait for Withdrawal Announcements

Since the beginning of 2017 bitcoin traders have been focused on the ongoing developments between China’s central bank and bitcoin exchanges residing within the country. Over the past two months, withdrawals have been suspended across nearly every major Chinese bitcoin trading platform with no word on when suspensions will be lifted.

Also read: Japan Declares Sale of Bitcoin Exempt from Consumption Tax

Chinese Bitcoin Traders Deal With Over Two Months of BTC Withdrawal Suspensions

Big Money Made in China as Bitcoin Traders Wait for Withdrawal Announcements2017 has seen quite the shakeup in regards to Chinese bitcoin exchanges as each company has been facing the regulatory wrath of the People’s Bank of China (PBOC). Ongoing inspections and discussions have led to stricter AML/KYC regulation, and Chinese traders have not been able to withdraw bitcoins for over two months. Chinese trading platforms have also revealed new types of KYC verification processes like on-site validation and remote video identification.

This week the Chinese exchange Okcoin has revealed the platform is upgrading to a multi-signature withdrawal system but has not detailed when the company will lift the suspension. After April 23rd the company’s customers will be using a multi-signature controlled wallet for bitcoin and litecoin holdings.

The other two top bitcoin exchanges in China, Huobi and BTCC have recently told the public that all bitcoin exchanges in China are adhering to new regulatory policies and withdrawals should commence after the upgrades are finished. Huobi explains in their most recent announcement stating;

Once approved by the regulatory body, you can resume your digital currency business. Please pay attention to the official announcement from Huobi for when withdrawals will be granted.

Young Traders in China Have Been Making Big Money Trading Bitcoin

Big Money Made in China as Bitcoin Traders Wait for Withdrawal Announcements
27-year old Huai Yang says he makes 1 million yuan a month trading bitcoins.

A recent report has also detailed that young bitcoin traders in China have been making a lucrative living trading the decentralized cryptocurrency. For instance, Huai Yang, a 27-year old living in Beijing says he is making 1m yuan per month trading bitcoins. Yang has been involved with cryptocurrency for quite some time but has been trading bitcoin for a living over the past six months. “I want a more splendid life,” explains the Chinese bitcoin trader.  

Another Chinese trader named Chenxing explains how he quit his government engineering job to trade bitcoin this year. During a good month, Chenxing pockets about five BTC but quickly converts it to yuan. Chenxing details the bitcoin environment in Beijing is growing, and he expects the cryptocurrency phenomenon to continue to prosper in China.

Localbitcoins Continues to Capture the Lion’s Share of Chinese Bitcoin Trading

The Chinese traders highlighted in the report didn’t seem too concerned with the PBOC’s recent regulatory actions. Meanwhile, Bitcoin proponents have noticed a significant influx of traders moving to over-the-counter (OTC) and peer-to-peer (P2P) platforms like Localbitcoins. The P2P trading platform continues to see record volumes within the country. However, some Chinese traders have been afraid of police investigations and fraudsters on Localbitcoins.

Big Money Made in China as Bitcoin Traders Wait for Withdrawal Announcements
Localbitcoin volumes in China continue to grow.

For now, OTC markets and Localbitcoins trades are the only options for big cryptocurrency traders in China, while the entire world wonders when Chinese exchanges will resume withdrawals.

What do you think about the situation in China concerning bitcoin exchanges? Let us know in the comments below.  


Images via Shutterstock, The Guardian, and Coin Dance.


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The post Big Money Made in China as Bitcoin Traders Wait for Withdrawal Announcements appeared first on Bitcoin News.

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How Big is Bitcoin?

Recently Bitcoin.com reported on the release of a comprehensive cryptocurrency study by the University of Cambridge. One area discussed in this report is the number of users of cryptocurrencies and wallets. This article explores how the study derives the number of active Bitcoin users and holders.

Also read: Lots of Data in Cambridge University’s First ‘Global Cryptocurrency Benchmarking Study’

Total Number of Cryptocurrency Wallets

How Big is Bitcoin?Twenty-six wallet providers participated in the survey, including Airbitz, Armory, Bitgo, Blockchain, Coinbase, Greenaddress, Ledger, Jaxx, Mycelium, Samourai, and Xapo. The study defines a wallet provider as “any volunteer project or company that provides a standalone wallet that anyone can use.”

First, the total number of wallets is estimated using data collected from study participants, in addition to “the number of software downloads of major wallet providers and Bitcoin’s reference implementation.” The estimate represents all cryptocurrency wallets, not just Bitcoin.

While citing “a potentially infinite number of wallets could be created from a single software download,” the study uses a conservative assumption that one software download equals one wallet created. Some numbers are unavailable and therefore omitted such as the number of downloads for some open-source wallets, resulting in a “lower bound” estimate. Overall, the report’s authors wrote:

It is estimated that the total number of wallets has increased more than 4x from 8.2 million in 2013 to nearly 35 million in 2016.

Number of Active Cryptocurrency Wallets

Second, the number of active cryptocurrency wallets is calculated from the total number of wallets. The report notes that estimating the number of active wallets poses a challenge, since publicly reported wallet numbers do not reflect whether or not they are active. In addition, the definition of “active” varies for different wallet providers.

The study, therefore, uses data obtained from survey participants to estimate the number of active wallets instead. This data “suggests that the number of active wallets ranges from 7.5% to 30.9% of the total number of wallets,” the report reveals, adding that:

The number of active wallets is thus estimated to have increased from between 0.6 million and 2.6 million in 2013 to currently between 5.8 million and 11.5 million in 2017.

How Big is Bitcoin?

Number of Unique Users of Cryptocurrency Wallets

Third, the study conservatively derives the number of cryptocurrency wallet users from the number of active wallets, using the assumption that a user holds two wallets on average. Some types of wallet users are also unaccounted for in the study, such as those using exchange accounts as their de facto wallet, or those using payment service providers or platforms that can store cryptocurrencies.

“The total number of active cryptocurrency users is likely considerably higher than our estimate of unique active wallet users,” the report’s authors wrote, noting that:

We estimate that currently there are between 2.9 million and 5.8 million unique users actively using a cryptocurrency wallet.

How Big is Bitcoin?

Number of Bitcoin Holders

How Big is Bitcoin?

Finally, the researchers attempt to find the number of cryptocurrency users and holders. However, they admit that “estimating both the number of cryptocurrency holders and users is a difficult endeavor as individuals can use multiple wallets from several providers at the same time.” In addition, the authors explain how one user may also use different wallets for different cryptocurrencies and be counted multiple times. “Many individuals are using centralised wallet, exchange or payment platforms that pool funds together into a limited number of large wallets or addresses, which further complicates the picture,” they further detail. “It is impossible to know precisely how many people use cryptocurrency.”

Without deriving their own numbers, the authors reference external estimates. The first, but a rather outdated one, is by the Boston Federal Reserve in a 2016 report. It states that 0.87% of U.S. consumers had adopted cryptocurrencies in 2015, which “amounts to around 2.8 million people in the US alone,” the Cambridge authors relay.

A more recent estimate mentioned is an independent research by Coinbase and ARK Invest Research, which covers only bitcoin instead of all cryptocurrencies. In their January report, they wrote:

More than ten million people around the world hold a material amount of bitcoin.

What do you think of these estimates? Let us know in the comments section below.


Images courtesy of Shutterstock and University of Cambridge


Need to calculate your bitcoin holdings? Check our tools section.

The post How Big is Bitcoin? appeared first on Bitcoin News.

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Keynote Announces Annual Blockchain Gala Dinner at European Parliament

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

April 7, 2017 — Keynote today announced the Annual Blockchain Gala Dinner to take place May 10, 2017 in Brussels, Belgium. The Gala will bring together industry leaders and nonprofits with key members of European Parliament for conversations surrounding identity, citizenship, society, trust, trade finance, energy management, fintech and more.

The Gala will feature a gourmet dinner, networking opportunities, and keynote speeches. Speakers will include Eva Kaili (Chair, STOA), Brock Pierce (Managing Partner, Blockchain Capital), Matthew Roszak (Co-Founder, Bloq), Diego Gutierrez (CEO, Rootstock), Jason King (Founder, Unsung), Mattieu Riou (CTO, Blockcypher) and more. Panel topics will explore financial services and the new generation of blockchain-based services.

“Keynote meticulously scouts out the best of the best, choosing fantastic speakers to explore the strategies, technologies, and innovations they’ve developed and mastered,” said Moe Levin, Chief Executive Officer at Keynote. “We’re excited to bring this unique gala event to the European Parliament to discuss how blockchain can truly make an impact on the future.”

There will be a conference held the following day, on May 11, with speakers like Andrus Ansip, (Vice President, European Commission), Jakob von Wiezsacker (Member of Parliament), John Whelan (Director of Innovation, Banco Santander), Cecile Wendling (Head of R&D, AXA), and many more.

Though the majority of guests will be former speakers and sponsors, a limited number of seats will be reserved for the community to purchase. For more information, please visit: http://future.keynote.ae/agenda/. Media interested in attending may contact erika@transform.pr to coordinate.

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post Keynote Announces Annual Blockchain Gala Dinner at European Parliament appeared first on Bitcoin News.

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BitHub.Africa Announces African Blockchain Opportunity Crowdsale Campaign to Foster Regions Cryptocurrency Ecosystem

Nairobi-based blockchain startup BitHub.Africa has released its Blockchain Opportunity Campaign. The campaign centers around a…nThe post BitHub.Africa Announces African Blockchain Opportunity Crowdsale Campaign to Foster Regions Cryptocurrency Ecosystem appeared first on Bitcoinist.com.n

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Paybis Makes Buying Bitcoin a Lot Easier with Credit Cards

UK-based digital and cryptocurrency exchange Paybishas announced that it will now support the purchase of…nThe post Paybis Makes Buying Bitcoin a Lot Easier with Credit Cards appeared first on Bitcoinist.com.n

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Russia Set to Legalize Bitcoin by 2018, Track Every Transaction

TheFinance Minister of Russia has revealed state interest in tracking every cryptocurrency transaction just like…nThe post Russia Set to Legalize Bitcoin by 2018, Track Every Transaction appeared first on Bitcoinist.com.n

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2.5 Years, 3.7 Million BTC Gambling is the Dark Horse of Cryptocurrency

Cryptocurrency gambling is traditionally thought of as a marginal industry in fact, it has earned…nThe post 2.5 Years, 3.7 Million BTC Gambling is the Dark Horse of Cryptocurrency appeared first on Bitcoinist.com.n

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Bitcoin Companies Supporting SegWit UASF 12, Opposed 0

These companies are in favor of SegWit via a User Activated Sof Fork UASF. No…nThe post Bitcoin Companies Supporting SegWit UASF 12, Opposed 0 appeared first on Bitcoinist.com.n

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Bitcoin Gamblers Have Wagered $4.5 Billion in BTC Since 2014

Bitcoin gambling has continued to rise in popularity over the years. Many people believe Bitcoin is the perfect currency for online wagers and cryptocurrency-based gambling statistics have shown that the market agrees.

Also read: Lucky Week at Bitcoin Games Roulette Table as Players Win 154 BTC

$4.5 Billion in Bitcoin Wagers Since 2014

It is clear that Bitcoin gambling is just one of many excellent platforms that demonstrates the cryptocurrency’s real-world use cases. Using bitcoin has allowed for more privacy-centric gambling, alongside quicker ways to fund casino accounts, pay out jackpots and reward players. Online gambling is a huge industry with a volume of $45.86 billion in 2016 and Bitcoin has captured just a tiny fraction of this market so far.

Nonetheless, the use of Bitcoin at online casinos has steadily risen every year with many people placing their bets with cryptocurrency daily. Bitcoin gambling has been around since the currency’s inception and in 2013 Bitcoin betting accounted for over 50 percent of all Bitcoin transactions. A research report released that year detailed “online gambling represents at least 10x the transaction volume of Silk Road and the other Bitcoin drug marketplaces.”

Bitcoin Gamblers Have Wagered $4.5 Billion in BTC Since 2014
12/2014 to 4/2017 Gambling statistics according to the Bitcoin Strip.

According to the Bitcoin Strip, a website that tracks online Bitcoin casino statistics, over 24.5 billion bets have been placed with bitcoins over the past two years. In 2017, the popularity of Bitcoin gambling continues to grow as there are now hundreds of cryptocurrency gaming destinations on the web. According to statistics throughout sixty cryptocurrency-based gambling sites, people are placing 337 bets per second and are wagering three BTC per minute. Moreover, since 2014, roughly 3.7 million BTC has been wagered equating to $4.5 billion USD at the time of writing.

Bitcoin Gamblers Have Wagered $4.5 Billion in BTC Since 2014
According to Bitcoin Strip the total BTC wagered over the past two years is 3,750,898 BTC.

Bitcoin Gambling Site Domains Sell for Big Money  

Last month a domain called “bitcoin.casino’ sold for a record sale of $28,000 for the .casino extension portal. A Florida-based firm called Casino Holdings bought the bitcoin.casino domain and the website hosts reviews of Bitcoin gambling sites found online. According to statistics, searches for .casino domain extensions have been on the rise this year. Furthermore, Bitcoin based casino-style gaming sites have been selling like hot cakes for quite some time. Shapeshift founder Erik Voorhees sold his website, Satoshi Dice, for over $11.5 million (126,315 BTC) back in 2013.

Regulatory Restrictions

Bitcoin Gamblers Have Wagered $4.5 Billion in BTC Since 2014Bitcoin and online gambling has increased in nearly every country in the world bar the U.S., Russia and a few other regions. Currently the U.S. has significant regulatory policies against online gambling in general throughout the country. Most of the restrictions stem from the Unlawful Internet Gaming Enforcement Act (UIGEA) that was created back in 2006. According to the act, the UIGEA “prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law.” As a result the vast majority of Bitcoin casinos and cryptocurrency wagering sites refuse to operate in the U.S. to this day.

Hurdles Aside Bitcoin Gambling Continues to Grow Beyond 2017

Using Bitcoin to play classic casino games such as blackjack, roulette, dice and more will likely continue to increase as statistics have shown. Some residents from countries with stricter regulation may not be able to participate, but many other regions are seeing a lot of growth in the gambling market. 

Regardless of regulation issues, cryptocurrency gambling continues to rise every year, and 2017 is no different. Three bitcoins gambled per minute over the past two years shows cryptocurrency and online wagers are working quite well together.

What do you think about bitcoin and gambling? Let us know in the comments below.


Images via Pixabay, the Bitcoin Strip, and Bitcoin.com.


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The post Bitcoin Gamblers Have Wagered $4.5 Billion in BTC Since 2014 appeared first on Bitcoin News.

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