Cryptocurrency and COVID-19: Bitcoins Path to a Safe Haven – Cointelegraph

Aren't we all searching for a safe haven? Whether we mean literal shelter four walls and a roof over our heads or something more sophisticated, the craving for a dependable defense against random chaos has always been our instinct.

With the COVID-19 pandemic rearranging society at every level, the allure of a safe haven reigns supreme for our battered psyches. In the realm of financial instruments, the search for the safest of safe havens, also known as a store of value, has taken on a new urgency. Is Bitcoin (BTC) a safe haven? Will cryptocurrency prove to be a store of value above all?

Many Bitcoin believers have been confident in crypto's ability to securely serve as a safe haven. But even the most devout blockchain boosters would admit that the coronavirus is betraying their store of value expectations, at least in the short term, as Bitcoins price has not remained resolute since COVID-19 became a global concern. It has exhibited big swings from around $10,000 to a low of near $4,100 in the first quarter of 2020 and now sits at approximately $9,500 at the time of this writing.

While Bitcoin has the potential to shelter value for many more of us than other safe-haven options, we will need a well-coordinated effort among the crypto community and regulators to get us there.

Safe havens have long played a key role in economics and investing. Traditionally, a safe haven has been an investment in an instrument expected to increase its value during market uncertainty. Safe havens add diversification to portfolios and are crucial investment strategy components for retail players and institutional investors alike.

With their deep history in serving humanitys sense of well-being, there is not surprisingly a long list of safe havens that predate Bitcoin. These include commodities, United States Treasurys and select fiat currencies, equity strategies and hedge funds, as well as more tangible assets such as precious metals (gold and silver), real estate and even art.

Now, cryptocurrencies have been added to that list. Although Bitcoins origins are firmly rooted in a peer-to-peer electronic cash system, a funny thing happened on the way to fulfilling those utilitarian aims. Satoshi Nakamotos blockchain-based creation morphed into something much more akin to a security, as long settlement and transaction times make it a less attractive method of payment. Meanwhile, its rise in value over the last decade has far exceeded anyone's expectations: Bitcoin has outperformed every other asset class including real estate, gold and the S&P 500.

Bitcoins financial status has evolved yet another step and is seen in many circles as a safe-haven instrument. Complete decentralization is at its core, keeping Bitcoin away from the whims of central banking and governments appetites for quantitative easing. In a brilliant stroke, digital scarcity is hardwired into its DNA: The supply of tokens is firmly capped at 21 million, a key characteristic that should continue to drive its price higher over time and has led to the widespread perception that Bitcoin equals digital gold.

And as a bonus, Bitcoin trumps all other safe havens as a tool for global trade. While that aforementioned transaction time currently standing at a tick over nine minutes is unacceptable for buying your proverbial cup of coffee, it sure beats trying to transact with gold bullion over the internet.

To be sure, Bitcoin has flaws preventing it from becoming a rock-solid store of value. Global regulation of cryptocurrency is still maturing. With few universal rules on how trades can be executed, there is room for market manipulation, which can lead to questions regarding how authentic some crypto price movements are. And while Bitcoin currently trades at gains that are positively astronomical compared with when it first came online, cryptocurrency remains a very volatile asset class.

That shouldnt stop Bitcoin from succeeding in a big part of its core promise: helping the worlds population to be better prepared for unforeseen global economic crises such as the current market crash that was brought about by the coronavirus pandemic.

In perhaps an ironic twist to Bitcoins borderless ethos, this progress starts at the government level. With solid regulation of blockchain technology and cryptocurrencies, everyday people can be more in control of their wealth. Peer-to-peer lending, instead of loans and mortgage rates from banks, would make loans easier to access for everyone globally, leading to more accessible and affordable credit.

While increased oversight introduces more processes, more regulation also enables the market to progress. A lack of regulation means a lack of trust, which means a lack of adoption and when theres a lack of adoption, theres a lack of markets. Institutional investors stand to see great gains with solid regulation, which will open doors to the mass adoption of products. Investor confidence and trust will naturally follow, as will fresh innovation opportunities, with the overall market capitalization increasing commensurately.

And for a planet under quarantine, crypto only becomes more important. For the 1.7 billion people who are currently unbanked, living under physical mobility restrictions makes sending or receiving money that much harder. Whether they need to transact internationally or with a neighbor, people who are sheltering in place can use layer-two protocols to send crypto payments anywhere and settle within seconds, 24/7. The cost of doing business can also be drastically reduced with crypto, thanks to relatively low fees. In 2019, for example, a $1 billion BTC transaction cost a frugal whale a mere $690 in transaction fees such a low fee would be impossible to achieve in the foreign exchange markets with interbanking rates applied.

Better regulation is just half the battle. As has often been the case with all things blockchain, the bottleneck to wider cryptocurrency adoption therefore making it a safe haven for billions more people is a lack of reliable information.

Were more than 10 years into the blockchain revolution, yet only a very small percentage of the global population understands what it is and even fewer understand its connection to cryptocurrency. When the average person has a firm grasp of the blockchain/crypto ecosystem, adoption will face less friction.

As popular as crypto seems to those of us in the industry, we must exit the echo chamber and accept that it is not in the mainstream. The general public mostly hears about Bitcoins large price fluctuations or negative stories about how it could be used in a money-laundering operation. Very few journalists outside of our vertical know what to make of it.

A lot of people use fiat currency without understanding central banks and monetary policy, but they do know how to spend it and access it. Cryptocurrency faces an extra hurdle in that regard: Not only do people not understand it, they also dont know how to spend or gain access to it.

No wonder, then, that theres insufficient engagement in cryptocurrencies. We suddenly have thousands of currencies on blockchains, but most people cant comprehend how a currency can work, or be worth something, without a bank or a government backing it.

Engagement will require more people to grasp what a blockchain does and what the various cryptocurrencies can accomplish in their jurisdictions. Every person in the industry is responsible as a pioneer to educate as many people as possible on the benefits of crypto and how it can become one of our everyday means of payment and value storage. We also need to take some time out of our busy schedules to pass the message on to regulators as to how they can best manage the role of cryptocurrency in the global economy.

When Bitcoin and cryptocurrency make sense to everyone, well truly see it as a digital safe haven one that diminishes our fear of the economic impact of pandemics and other disasters. The more we can put our time into education and disseminating clear information, not just perfecting our investing, the sooner we can build a bigger boat with blockchain.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Arthur Wiseberg is the head of institutional sales in Europe at Apifiny, a digital asset marketplace that facilitates institutional access to regulated, global financial markets. He began his career in investment banking, focusing on regulation, portfolio structuring and sales across various traditional asset classes for firms such as BlackRock, Barclays Capital and Societe Generale. Prior to Apifiny, Arthur worked with various digital assets as the head of CIS institutional business for Huobi Global.

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Taxation on the Cryptocurrency – Live Bitcoin News

Cryptocurrencies are gaining popularity with time. And why shouldnt they? After all, cryptocurrencies have given more millionaires than other fields. With so many people coming out of the cryptocurrencies trade with successful trades and profit, it has attracted the Governments attention.

The U.S Government has issued a bill that states that all the people who are making a profit with the cryptocurrency trades, the taxation may be made depending on what you earn on an individual basis and a business level basis.

Individual Taxation

Here are the conditions that will lead to individual taxation.

1.Location

It is very important to have a secure location for your crypto assets because the location of the assets also plays an important role in reducing the amount of taxes that will be paid. The exchange rate of the crypto assets depends on the location. If the crypto asset are being used for something that the government holds authority over it. Then it might happen that your tax payable may be reduced.

2. Income Tax

When you are trading with crypto assets, whatever profit you make with these crypto assets are taxable. However, if you are not doing anything with your crypto assets, then you are not liable to pay any income tax. But the moment you decide to use those assets to earn profits, you become liable to pay income taxes.

3. Capital Gain Tax

If you are using a capital income for buying and selling crypto assets, then the government will feel that you are investing in the crypto assets and will be liable to pay income taxes on the total profit made on the capital income.

Business Taxation

And if the cryptocurrency trade is being done by a group of people then it falls under Business taxation. Here are the scenarios in which cryptocurrency trade falls under Business taxation.

1.Trading in Exchange Token

When there is a group of people who are investing in buying and selling Exchange tokens, then this will be considered a business. Hence, this will be liable to pay income tax as per the business taxation policy. When there is a company that deals with crypto exchanges for goods and services, then it comes under Business taxation.

2. Corporation tax

While calculating all the profit and losses made by the crypto exchanges, you must track down every crypto exchange made over the last year. And whatever the profit you have made, you will be taxed accordingly.

3. VAT (Value Added Services)

There are some cases where you might have to pay a VAT on the cryptocurrency exchanges. These extra products and goods taxes are also considered on the income tax sheet.

Conclusion

If you are among the business owner that are making deals in cryptocurrency trade, then you are liable to pay income tax on the capital profit.

The tax will be accrued on the value of the cryptocurrencies in pounds, as it is the preferred currency in which the value of crypto coins is calculated. Even if you are converting then into other forms of cryptocurrencies, then also the value of the cryptocurrency will remain the same.

Now that you know what are the taxation processes on cryptocurrency trade. You can also start with crypto trade with Bitcoin Lifestyle.

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ZIMBOCASH Lists Cryptocurrency Token, Wants To Be Alternative To ZW$ – Technology Zimbabwe

Earlier this week, ZIMBOCASH a local decentralised cryptocurrency- listed their token ZASH on Bithumb Global (a cryptocurrency exchange headquartered in South Korea).

In marketing material, ZIMBOCASH is marketing the ZASH token as a replacement alternative to Zimbabwes flailing Zimbabwe Dollar. A total of 4.5 billion ZASH tokens have been created with 950 million currently in circulation.

The Zimbabwe dollar was already collapsing with 500% inflation, before this crisis dealt a debilitating blow. We believe that ZIMBOCASH is perfectly positioned to solve this problem by fixing the amount of money in the country using blockchain technology. Our aim is to provide sound-money.

I believe Philips comments about ZIMBOCASH being perfectly positioned to solve the Zimbabwes economic turmoil are a bit premature. We reached out to ZIMBOCASH to understand where Zimbos in possession of the ZASH token will be able to use it and Philip explained to me that they are developing that network and expect organic use of the ZASH network to grow as the currency environment deteriorates in the country.

For ZIMBOCASH, listing with Bithumb offers the digital currency an opportunity to start making the ZASH token more valuable;

Our first step in establishing value is in getting it listed on an international exchange (Bithumb Global), where there is a market of buyers and sellers. On the basis that there is value derived from a market price it can become something that is used in trade

It is important to note however that Bithumb the exchange in question has been hacked a number of times;

A concern I had after going through ZIMBOCASHs marketing material was how they were going to communicate the concept of digital currencies to the ordinary Zimbabwean something theyll have to do if ZASH is to become a compelling alternative to the Zim dollar.

Philip explained that they have been doing some work on that front but believes ultimately the pain that people experience in a collapsing monetary system will cause people to naturally find alternatives that work.

Right now the clearest incentive to get the token is the fact upon signing up for the token youll get 3125 tokens. The issue with that is the value of those tokens will depend largely on the network in which you can use them. If theres nowhere to use them 3 or 4 months down the line are they valuable?

The elephant in the crypto-shaped room has been regulation or lack thereof. Interested parties would want to know what guarantees there are that the tokens would be safe. If they get the token, will ZIMBOCASH turn out to be another Golix? The expectation is that it wont be a problem since they are currently not regulated locally and not making use of local banks at the moment:

We are not operating through the banking system in Zimbabwe. There is no cash-out or cashin. Zimbabweans are allocated the token directly by signing up at our websitewww.zimbo.cash. There is no charge for signing up. It is similar to signing up for Facebook.

For those who have fears regarding volatility, Philip explained that volatility is to be expected with any currency however they belive that as their network grows stability will increase alongside;

There may be volatility in the price however, all currencies have some level of volatility. Ultimately, as a network of scale grows, the price is likely to become more stable. This is why a reference price on a market is used in trade.

However, with Zimbabwean history, people are used to changing their prices to the market rate. With the current system, people need to mark their prices to a market rate regularly. Our concern isnt what the price will be our concern is that thereisa price. If we get a price, we would have added value to a whole lot of Zimbabweans who have been allocatedZIMBOCASH, who can use it in daily trade.

That has been one of the biggest knocks when it comes to cryptocurrencies. The lack of centralisation seems to come at the price of security and accountability when things go wrong.

At the time of writing ZASH is being distributed solely via internet channels (Bithumb and the ZIMBOCASH website). If ZIMBOCASH is to realize their dream of dethroning the ZW$ as the local currency thats another aspect theyll have to improve to ensure that the Zimbabweans who arent on the internet are also included among those who can transact.

Once you have the currency where will you be able to use it? Right now beyond trading, your options are limited at the time being. In future, ZIMBOCASH will be more useful;

Ultimately, we would like to see people being able to pay for imports denominated inZIMBOCASH. This last step would require a very liquid international exchange where there isnt price slippage when there is acash-out. This is something that needs to develop over time.

Update: An earlier version of this article claimed that ZIMBOCASH was looking to replace the ZW$. This was inaccurate and the intention of ZIMBOCASH is to offer an alternative, NOT a replacement. We apologise to ZIMBOCASH and our readers for the misinterpretation.

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Iran to Apply Currency Smuggling Laws to Cryptocurrency Transactions – Coin Idol

May 23, 2020 at 14:52 // News

The Iranian government has expressed its intention to apply the Prevention of Commodity and Currency Smuggling to cryptocurrency transactions.

Such a move was prompted by the exposure of two cryptocurrency projects as scam schemes. The two exchanges KingMoney and UtByte were advertised for Iranians for international transactions. However, an Iranian cryptocurrency blog IRCC published a warning against these two companies claiming they are fraudsters.

This situation has prompted the government to revise its position about cryptocurrencies as their fear of security issues related to the industry is not groundless.

According to the current regulations, Iranian cryptocurrency exchanges must acquire a license issued by the central banking institution and comply with the current alien exchange trading regulations. It is still uncertain how to apply regulations to exchanges already in operation or exchanges located overseas.

As a result, the risk of the Iranian cryptocurrency industry being subject to legal sanctions by home-grown and US authorities is expected to increase. In the current industry, there is also an interpretation that the regime and legislators are preparing a legal basis to close and punish the Iranian digital currency exchange to control the flow of money.

With the economic situation worsening due to coronavirus pandemic and other trade restrictions, the Iranian administration is concerned about smuggling funds through cryptocurrency and illegal overseas exchange transactions and the US is bypassing Irans international sanctions. That is why the Iranian cabinet issued a proposal to treat digital currency transactions as current regulations on smuggling prevention and overseas exchange transactions.

On the other hand, Iran has conditionally approved cryptocurrency mining operations in the hope of bypassing the sanctions imposed by the US, as reported by coinidol.com, a world blockchain news outlet. The country has even concluded a partnership with a Turkish mining firm, creating favourable conditions for the growth of the industry.

In December last year, the President of Iran Hassan Rouhani together with some Muslim countries including Turkey, Qatar, Indonesia, etc., also promised to create their own central bank digital currency (CBDC) in order to combat the US hegemony. However, they have never gone further with the plan so far despite the growth of interest to CBDC worldwide. Currently, it seems China will be the first country to issue its own CBDC to battle US dominance, as its economy is probably the only one strong enough to combat such a rival.

Nevertheless, the new regulatory framework somewhat contradicts this friendly policy for mining, and now it is also unclear how it will influence the industry and which restrictive measures will be applied to miners for dealing with cryptocurrency.

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Why All Eyes Should Be on the $9,000 Bitcoin Price Level This Week – Cointelegraph

Last week, Bitcoin (BTC) looked poised for a huge move up to $11,000. Instead, we saw a sidewards week of price action coupled with a small pullback. Has Bitcoin topped out? Is there too much selling pressure around $10K?

Let's take a look at what's happening with the largest cryptocurrency by market capitalization, BTC.

Daily crypto market performance. Source: Coin360.com

BTC/USD 1-hour chart. Source: TensorCharts

Bitcoin currently faces huge resistance between $9,500 and $10,005, according to the Binance order book shown on the Tensor Chart heat map above. At present, these sell walls, the bulk of which is represented by the yellow lines, show a total of 1,737 Bitcoin sells vs. 1,351 buys represented by the darker blue lines.

While this data is only on the Binance BTC/USDT chart, it gives us a good indication that at present there is not enough buying pressure to push BTC/USD above $10K. However it's important to note that this data changes constantly, and it should only be relied on as long as its constantly referenced.

That being said, this does explain why the price of Bitcoin is stuck in a tight range between $9-$10K, and until more buyers step in, it's obvious that this wont change.

BTC/USD weekly chart. Source: TradingView

Over on the weekly chart, Bitcoin is currently holding above the previous resistance. However, we are yet to see a full candle body close above this line. At which point, itll be a clear signal for the bears to switch bias, and while it currently looks good at the time of writing, if we close below $9,000 today, itll be a big setback for Bitcoin in the short term.

All eyes should be on the $9,000 level throughout next week, however, as this is a breakout from a descending channel. Each week, this support level goes down by around $100, so a prolonged failure to significantly break through the sell walls could see Bitcoins support slowly fall to $6,400 by the end of the year. That is, of course, until a new path emerges.

(This Week) BTC/USD daily MACD chart Source: TradingView

(Last Week) BTC/USD daily MACD chart Source: TradingView

The moving average divergence convergence (MACD) indicator is continuing its bearish divergence as it played out exactly as expected from last week's analysis. The top MACD image is this week, and its starting to show signs that it has reached its peak divergence denoted by the blue MACD line beginning to curve in slightly.

The bottom MACD image shows last week's positioning where it looked prime for the signal line to fall to around 400 and the MACD line to 200. This is exactly where it sits today, and what is needed for a bullish reversal is for both lines to converge around 350.

Should the MACD start to move in this direction then its a clear sign for bulls to step in, and I would expect the level of buyers to increase. However, should the MACD and signal lines continue to diverge in this manner then dont expect fireworks anytime soon.

BTC/USD Daily chart. Source: TradingView

Moving down to the daily timeframe, and another path for Bitcoin opens up. At present, we are hovering just above the support of around $9,100, which shows the midpoint resistance of this channel around $10,500 by the middle of next week.

The midpoint level also matches up with a 100% Fibonacci retracement. So should Bitcoin reach this level, it will most likely be met with a lot of selling pressure where a pullback to the support would be expected before seeing any substantial moves.

However, by the end of the week the support of this channel will be around the $10K level, and this dare I say it could be the last time you will be able to buy Bitcoin below $10,000 (yes, slap yourself now).

BTC/USD Daily chart. Source: TradingView

Finishing up on the hourly chart, and Bitcoin looks primed for a breakout to $9,400. This could close the week in a very bullish fashion. However, as I see it, even breaking down from this point to $9,000 would still leave bulls in control for the time being.

But breaking below $9K at this point would change everything, and as this is Bitcoin, be prepared for both eventualities as anything can, and usually does happen.

A close above $9,000 is bullish. From here, I will be looking at first breaking past the sell walls that start at $9,500 to $10,005. Should we get past this, then I expect major resistance at $10,500 before $11K-$12K can even start to be considered as possibilities.

Falling below $9,000 opens up the .618 Fib on the daily of $7,890 as a stark reality. This would also completely invalidate both channels Im looking at this week. From this level it would be time to break out the $6,400 and $4,000 charts again. But with that said, my personal outlook is another sideways week for Bitcoin.

The views and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Spiritual Reflections on the Bitcoin Halving – CoinDesk – CoinDesk

Allen Farrington writes at Quillette, Areo and Merion West, as well as extensively on Medium, where he has several much longer essays on Bitcoin, finance, economics and related topics. His collected writings can be found here. He lives in Edinburgh.

At approximately 8:23 p.m. GMT on Monday, May 11, the 630,000th Bitcoin block was mined, the first to offer the reward to its successful miner of 6.25 bitcoin rather than 12.5, as has been the case for the past four years. You may have caught wind of this, what with #BitcoinHalving briefly trending on Twitter, an uptick in coverage of Bitcoin in the media over the past few days, or for some other reason.

There are good ways and bad ways to describe the halving. Or rather, there are ways that are factually true and then there are ways that are spiritually true. Whatever mainstream coverage you read on this if you found any at all I would bet took the factually true route. They will have told you something like the following:

Miners secure the network by wasting electricity solving useless mathematical puzzles. Whoever solves the puzzle first gets a reward and all the pending transactions get logged. The reward just halved, meaning the supply to the market will likely contract, leading many to suspect the price will go up, while others disagree. So far markets have done

Then whatever markets did in the following hours, which I really dont think is important at all. It is factually important, for sure. But it is not spiritually important. And to ignore the spiritual importance is to misunderstand the halving entirely, just as it is to misunderstand Bitcoin. It is only spiritually important what happens to the price of Bitcoin over years, decades, and centuries.

The halving was not just the mining of the 630,000th block. It was a social event perhaps unlike any other in history, and perhaps even never to be repeated. Previous halvings (this was the third) were celebrated in bars, beaches, and barbecues, as I am sure this one would have been in normal times. But given the lockdown, the celebrations were migrated to Zoom, YouTube and Twitter, for the most part.

Many thought this a shame, reminisced spending previous halvings or previous get-togethers of any kind in person, and looked forward to being able to do so once again whenever normality returns. But I think the circumstances forced their own beauty, their own poignancy. Not everybody can afford to go to New York on a random Monday in May, but everybody can afford to turn on YouTube. The lockdown meant everybody in the world celebrated the halving in the same place: on the internet. In Bitcoins home.

And so rather than take planes, trains, and automobiles to the bars, beaches, and barbecues, tens of thousands of individuals tuned in live from all over the world for what factually was little more than a countdown. Many likened it to New Years Eve, but it was different for at least two reasons, one factual and one spiritual.

Factually, the event itself can only be said to exist on the Internet. It was not in a place, except insofar as it was in every place. Unlike New Years, therefore, it happened for everybody at the same time.

But spiritually, the importance of this universality really cannot be overstated. The Bitcoin halving happened at the same time for everybody because the Bitcoin protocol is the same thing for everybody. It knows no borders and no nationalities. It knows no time zones. One might say it is its own reference time. The halving didnt happen at 8:23 p.m. GMT 8:23 p.m. GMT happened at block 630,000.

Similarly, the halving didnt happen at ~$8,500 BTC:USD, it happened at 1 BTC:BTC. There will be a time when no exchange rates matter or are even meaningful. In anticipation of this, I would encourage the adoption of a different, more consistent metric perhaps Bitcoins share of the aggregate global capitalization of currency? Bitcoin is its own reference value.

Bitcoins reference time is the same for everybody, as is its reference value, as is its reference software, as indeed are its engendered social celebrations. Provided you have an internet connection you can use Bitcoin to tell the time, to transfer value, to inspect its code, and to join the party.

Moreover, these must be the same for everybody, because they exist as references in the first place because Bitcoin, the ecosystem, strongly encourages nonviolent agreement. Bitcoin has elevated the importance of the word consensus in the English language, and its translations in every language, for that matter. Bitcoin is written in C++. This is the factual reason that everybody can read it. The spiritual reason is that it is open source, and that it must be open source for consensus to form and be maintained.

Every block has a field called coinbase, which the lucky miner may fill with a limited string of text that has no strictly functional purpose in terms of the code, but, due to the open source nature of the blockchain, anybody can read, and hence can be used as a kind of meta-tool for signaling purposes. The very first block ever mined by Satoshi Nakamoto was given the following text as its coinbase:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

Factually, this served as a timestamp. Spiritually, it served as a statement of purpose: a call to arms that cheekily elucidated why this radical experiment was even being attempted. It was soon discovered after the halving that the coinbase of the 629,999th block, the last to reward 12.5 BTC, was filled by mining pool f2pool with the text:

NYTimes 09/Apr/2020 With $2.3T Injection, Feds Plan Far Exceeds 2008 Rescue

I wont insult this astonishing gesture by explaining its content. I wish merely to draw attention to its beautiful duality; factually, this achieves nothing. It is a throwback: an impressively well-executed meme.

But spiritually, this is a battle cry. Because here we are again, twelve years and goodness knows however many trillions of unbounded dollars later. Bitcoin is no longer an experiment. It is a nonviolent revolution against financial tyranny, led by nobody, fought by anybody and everybody. And it is literally trolling its way to victory.

A version of this post originally appeared on Medium.

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.

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Reddit CEO: Bitcoin Is Here to Stay Because of Wall Street Involvement – Bitcoinist

When Bitcoin crashed to $3,700 in March on the back of a global liquidation in financial markets, there were many throwing in the towel.

At the time, there were prominent analysts calling for the cryptocurrency to fall under 2018s lows, while critics doubled down on their assertions that BTC was a scam and an asset for criminals.

Just two months later, a prominent Silicon Valley entrepreneur and investor has asserted that Bitcoin isnt going anywhere going as far as to say that the crypto winter has become a crypto spring.

Some think Bitcoin is on its way out, but Alexis Ohanian the co-founder of Reddit and a managing partner at Initialized Capital begs to differ.

Speaking to Yahoo Finance in an interview published this week, the Silicon Valley investor said that he thinks the recent developments in the industry make it fair to say that we are now in the midst of crypto spring:

I try not to track prices, I cant predict any of that stuff. What I can say is we really do see a crypto spring right now in terms of top-tier engineers, product developers, designers, building real solutions on top of the blockchain. And that to me is the most interesting part Were seeing really top-tier talent building on the infrastructure.

On Bitcoin specifically, Ohanian explained that the flagship cryptocurrency is here to stay because of the growing involvement of Wall Street OGs in this nascent market:

I do think its a prudent hedge. Its interesting to see OGs of Wall Street now getting into crypto and buying bitcoin. Its increasingly showing that its here to stay.

The past few weeks and months have seen prominent names on Wall Street express interest in Bitcoin.

Just weeks ago, billionaire hedge fund manager Paul Tudor Jones announced that his fund will be allocating a small portion of its portfolio to Bitcoin futures. Jones said that he sees the cryptocurrency as a hedge against the inflation of fiat money.

Corporations like Fidelity Investments and the Intercontinental Exchange have jumped into the game too, announcing cryptocurrency platforms in response to institutional interest.

Importantly, it is not like Ohanian is all talk, no game when it comes to cryptocurrency.

In the same interview with Yahoo Finance, the Reddit co-founder asserted that he has a material percentage of his wealth in cryptocurrency:

Ive had a percentage of my wealth in crypto for quite some time now and I still feel pretty good about it, I dont want to change too much of it.

This point was not elaborated on but his fund, Initialized Capital, has a number of Bitcoin and cryptocurrency centric investments. These include but are not limited to Coinbase (Initialized Garry Tan was one of Coinbases first investors), Polychain Capital, and Bison Trails.

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Masked Up Roger Stone Breaks His Silence, Says He Was the Victim of a Witch Hunt and Legal Proctological Exam – Law & Crime

Longtime Trump confidant and recently convicted felon Roger Stonebroke his silence during a Friday interview with BizTVs Liquid Lunch, wearing a Roger Stone Did Nothing Wrong mask and Roger Stone Still Did Nothing Wrong shirt as he did so. Stone, who was famously gagged during the pendency of his criminal trial, told host John Tabaccoand co-host Frank Moranothat he was the victim of a witch hunt and political prosecution.

Stone began the interview by speaking through his mask. Then he removed it and declared he was unmasked like Michael Flynn.

First of all, much like General Flynn Im going to be unmasked, Stone said, when asked about former White House Chief StrategistSteve Bannonallegedly perjuring himself. Secondarily, its great to be with you guys because, as you know, for 16 solid months Ive been under what I believe to be an unconstitutional gag order. I havent able to say everything Id like to say. I havent been able to defend myself. I havent been able to correct the tsunami of disinformation from people like Ari Melber, and Rachel Maddow, and Don Lemon, and Chris Cuomo, and so many other of my good friends.

Interestingly, Stone said that any misstatements he made to Congress were immaterial. Why is that relevant? Because the Department of Justice just backed Michael Flynn with a motion to dismiss, saying that it couldnt prove that Flynns false statements were materialwhich is an element the government needs to prove in false statements cases.

At the end of April, Stones lawyers filed a notice that they were appealing their clients conviction and sentence forwitness tampering, obstruction and lying to congressional investigators. Notably, Attorney General William Barr has said on national television that he believes the Stone case was a righteous prosecution, which is in stark contrast to what President Donald Trump has said.

After the FBI raid of Stones Florida home, for example, Trump tweeted that the Russia probe was the Greatest Witch Hunt in the History of our Country!

After Stone was convicted but on the day the Stone was sentenced to three years in prison, Trump asked: what about James Comey, Hillary Clinton and Andrew McCabe?

As recently as Wednesday, the president quoted Stones remark that he would never give false testimony against [Trump]. In the past, Trump said it was [n]ice to know that some people (Stone) still have guts not to make up lies about him.

Stone repeated the presidents preferred phrasing during his Friday interview, saying he was the victim of a witch hunt and that there was no underlying crime. Stone also said the aforementioned Steve Bannon lied under oath in court when Bannon said that he and Stone repeatedly discussed WikiLeaks and Julian Assange.

[H]e told the [House] Committee, correctly, he and I never discussed WikiLeaks at any point whatsoever, Stone asserted. That was the truth.

Stone said that despite the legal proctological examination that was performed on him, the best investigators could come up with was flimsy lying to Congress charge.

Im finally able to say for the first time since the beginning that I am the victim of a witch hunt. I am the victim of a political prosecution, he said.

Watch the rest of the interview above via Liquid Lunch TV.

[Image via Liquid Lunch TV/screengrab]

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Masked Up Roger Stone Breaks His Silence, Says He Was the Victim of a Witch Hunt and Legal Proctological Exam - Law & Crime

Coronavirus tests the value of artificial intelligence in medicine – FierceBiotech

Albert Hsiao, M.D., and his colleagues at the University of California, San Diego (USCD) health system had been working for 18 months on anartificial intelligence programdesigned to help doctors identify pneumonia on a chest X-ray. When thecoronavirushit the U.S., they decided to see what it could do.

The researchers quickly deployed the application, which dots X-ray images with spots of color where there may be lung damage or other signs of pneumonia. It has now been applied to more than 6,000 chest X-rays, and its providing some value in diagnosis, said Hsiao, director of UCSDs augmented imaging and artificial intelligence data analytics laboratory.

His team is one of several around the country that has pushed AI programs developed in a calmer time into the COVID-19 crisis to perform tasks like deciding which patients face the greatest risk of complications and which can be safely channeled into lower-intensity care.

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The machine-learning programs scroll through millions of pieces of data to detect patterns that may be hard for clinicians to discern. Yet few of the algorithms have been rigorously tested against standard procedures. So while they often appear helpful, rolling out the programs in the midst of a pandemic could be confusing to doctors or even dangerous for patients, some AI experts warn.

AI is being used for things that are questionable right now, said Eric Topol, M.D., director of the Scripps Research Translational Institute and author of several books on health IT.

Topol singled out a system created byEpic, a major vendor of electronic health record software, that predicts which coronavirus patients may become critically ill. Using the tool before it has been validated is pandemic exceptionalism, he said.

Epic said the companys model had been validated with data from more 16,000 hospitalized COVID-19 patients in 21 healthcare organizations. No research on the tool has been published, but, in any case, it was developed to help clinicians make treatment decisions and is not a substitute for their judgment, said James Hickman, a software developer on Epics cognitive computing team.

Others see the COVID-19 crisis as an opportunity to learn about the value of AI tools.

My intuition is its a little bit of the good, bad and ugly, said Eric Perakslis, Ph.D., a data science fellow at Duke University and former chief information officer at the FDA. Research in this setting is important.

Nearly $2 billion poured into companies touting advancements in healthcare AI in 2019. Investments in the first quarter of 2020 totaled $635 million, up from $155 million in the first quarter of 2019, according to digital health technology funderRock Health.

At least three healthcare AI technology companies have made funding deals specific to the COVID-19 crisis, includingVida Diagnostics, an AI-powered lung-imaging analysis company, according to Rock Health.

Overall, AIs implementation in everyday clinical care is less common than hype over the technology would suggest. Yet the coronavirus crisis has inspired some hospital systems to accelerate promising applications.

UCSD sped up its AI imaging project, rolling it out in only two weeks.

Hsiaos project, with research funding from Amazon Web Services, the UC system and the National Science Foundation (NSF), runs every chest X-ray taken at its hospital through an AI algorithm. While no data on the implementation have been published yet, doctors report that the tool influences their clinical decision-making about a third of the time, said Christopher Longhurst, M.D., UCSD Healths chief information officer.

The results to date are very encouraging, and were not seeing any unintended consequences, he said. Anecdotally, were feeling like its helpful, not hurtful.

AI has advanced further in imaging than other areas of clinical medicine because radiological images have tons of data for algorithms to process, and more data make the programs more effective, said Longhurst.

But while AI specialists have tried to get AI to do things like predict sepsis and acute respiratory distressresearchers at Johns Hopkins Universityrecently won a NSF grantto use it to predict heart damage in COVID-19 patientsit has been easier to plug it into less risky areas such as hospital logistics.

In New York City, two major hospital systems are using AI-enabled algorithms to help them decide when and how patients should move into another phase of care or be sent home.

AtMount Sinai Health System, an artificial intelligence algorithm pinpoints which patients might be ready to be discharged from the hospital within 72 hours, said Robbie Freeman, vice president of clinical innovation at Mount Sinai.

Freeman described the AIs suggestion as a conversation starter, meant to help assist clinicians working on patient cases decide what to do. AI isnt making the decisions.

NYU Langone Healthhas developed a similar AI model. It predicts whether a COVID-19 patient entering the hospital will suffer adverse events within the next four days, said Yindalon Aphinyanaphongs, M.D., Ph.D., who leads NYU Langones predictive analytics team.

The model will be run in a four- to six-week trial with patients randomized into two groups: one whose doctors will receive the alerts, and another whose doctors will not. The algorithm should help doctors generate a list of things that may predict whether patients are at risk for complications after theyre admitted to the hospital, Aphinyanaphongs said.

Some health systems are leery of rolling out a technology that requires clinical validation in the middle of a pandemic. Others say they didnt need AI to deal with the coronavirus.

Stanford Health Careis not using AI to manage hospitalized patients with COVID-19, saidRon Li, M.D., the centers medical informatics director for AI clinical integration. The San Francisco Bay Areahasnt seen the expected surge of patientswho would have provided the mass of data needed to make sure AI works on a population, he said.

Outside the hospital, AI-enabled risk factor modeling is being used to help health systems track patients who arent infected with the coronavirus but might be susceptible to complications if they contract COVID-19.

At Scripps Health in San Diego, clinicians are stratifying patients to assess their risk of getting COVID-19 and experiencing severe symptoms using a risk-scoring model that considers factors like age, chronic conditions and recent hospital visits. When a patient scores seven or higher, a triage nurse reaches out with information about the coronavirus and may schedule an appointment.

Though emergencies provide unique opportunities to try out advanced tools, its essential for health systems to ensure doctors are comfortable with them and to use the tools cautiously, with extensive testing and validation, Topol said.

When people are in the heat of battle and overstretched, it would be great to have an algorithm to support them, he said. We just have to make sure the algorithm and the AI tool isnt misleading, because lives are at stake here.

Kaiser Health News(KHN) is a national health policy news service. It is an editorially independent program of theHenry J. Kaiser Family Foundationwhich is not affiliated with Kaiser Permanente.

ThisKHNstory first published onCalifornia Healthline, a service of theCalifornia Health Care Foundation

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Coronavirus tests the value of artificial intelligence in medicine - FierceBiotech

Playing God: Why artificial intelligence is hopelessly biased – and always will be – TechRadar India

Much has been said about the potential of artificial intelligence (AI) to transform many aspects of business and society for the better. In the opposite corner, science fiction has the doomsday narrative covered handily.

To ensure AI products function as their developers intend - and to avoid a HAL9000 or Skynet-style scenario - the common narrative suggests that data used as part of the machine learning (ML) process must be carefully curated, to minimise the chances the product inherits harmful attributes.

According to Richard Tomsett, AI Researcher at IBM Research Europe, our AI systems are only as good as the data we put into them. As AI becomes increasingly ubiquitous in all aspects of our lives, ensuring were developing and training these systems with data that is fair, interpretable and unbiased is critical.

Left unchecked, the influence of undetected bias could also expand rapidly as appetite for AI products accelerates, especially if the means of auditing underlying data sets remain inconsistent and unregulated.

However, while the issues that could arise from biased AI decision making - such as prejudicial recruitment or unjust incarceration - are clear, the problem itself is far from black and white.

Questions surrounding AI bias are impossible to disentangle from complex and wide-ranging issues such as the right to data privacy, gender and race politics, historical tradition and human nature - all of which must be unraveled and brought into consideration.

Meanwhile, questions over who is responsible for establishing the definition of bias and who is tasked with policing that standard (and then policing the police) serve to further muddy the waters.

The scale and complexity of the problem more than justifies doubts over the viability of the quest to cleanse AI of partiality, however noble it may be.

Algorithmic bias can be described as any instance in which discriminatory decisions are reached by an AI model that aspires to impartiality. Its causes lie primarily in prejudices (however minor) found within the vast data sets used to train machine learning (ML) models, which act as the fuel for decision making.

Biases underpinning AI decision making could have real-life consequences for both businesses and individuals, ranging from the trivial to the hugely significant.

For example, a model responsible for predicting demand for a particular product, but fed data relating to only a single demographic, could plausibly generate decisions that lead to the loss of vast sums in potential revenue.

Equally, from a human perspective, a program tasked with assessing requests for parole or generating quotes for life insurance plans could cause significant damage if skewed by an inherited prejudice against a certain minority group.

According to Jack Vernon, Senior Research Analyst at IDC, the discovery of bias within an AI product can, in some circumstances, render it completely unfit for purpose.

Issues arise when algorithms derive biases that are problematic or unintentional. There are two usual sources of unwanted biases: data and the algorithm itself, he told TechRadar Pro via email.

Data issues are self-explanatory enough, in that if features of a data set used to train an algorithm have problematic underlying trends, there's a strong chance the algorithm will pick up and reinforce these trends.

Algorithms can also develop their own unwanted biases by mistake...Famously, an algorithm for identifying polar bears and brown bears had to be discarded after it was discovered the algorithm based its classification on whether there was snow on the ground or not, and didn't focus on the bear's features at all.

Vernons example illustrates the eccentric ways in which an algorithm can diverge from its intended purpose - and its this semi-autonomy that can pose a threat, if a problem goes undiagnosed.

The greatest issue with algorithmic bias is its tendency to compound already entrenched disadvantages. In other words, bias in an AI product is unlikely to result in a white-collar banker having their credit card application rejected erroneously, but may play a role in a member of another demographic (which has historically had a greater proportion of applications rejected) suffering the same indignity.

The consensus among the experts we consulted for this piece is that, in order to create the least prejudiced AI possible, a team made up of the most diverse group of individuals should take part in its creation, using data from the deepest and most varied range of sources.

The technology sector, however, has a long-standing and well-documented issue with diversity where both gender and race are concerned.

In the UK, only 22% of directors at technology firms are women - a proportion that has remained practically unchanged for the last two decades. Meanwhile, only 19% of the overall technology workforce are female, far from the 49% that would accurately represent the ratio of female to male workers in the UK.

Among big tech, meanwhile, the representation of minority groups has also seen little progress. Google and Microsoft are industry behemoths in the context of AI development, but the percentage of black and Latin American employees at both firms remains miniscule.

According to figures from 2019, only 3% of Googles 100,000+ employees were Latin American and 2% were black - both figures up by only 1% over 2014. Microsofts record is only marginally better, with 5% of its workforce made up of Latin Americans and 3% black employees in 2018.

The adoption of AI in enterprise, on the other hand, skyrocketed during a similar period according to analyst firm Gartner, increasing by 270% between 2015-2019. The clamour for AI products, then, could be said to be far greater than the commitment to ensuring their quality.

Patrick Smith, CTO at data storage firm PureStorage, believes businesses owe it not just to those that could be affected by bias to address the diversity issue, but also to themselves.

Organisations across the board are at risk of holding themselves back from innovation if they only recruit in their own image. Building a diversified recruitment strategy, and thus a diversified employee base, is essential for AI because it allows organisations to have a greater chance of identifying blind spots that you wouldnt be able to see if you had a homogenous workforce, he said.

So diversity and the health of an organisation relates specifically to diversity within AI, as it allows them to address unconscious biases that otherwise could go unnoticed.

Further, questions over precisely how diversity is measured add another layer of complexity. Should a diverse data set afford each race and gender equal representation, or should representation of minorities in a global data set reflect the proportions of each found in the world population?

In other words, should data sets feeding globally applicable models contain information relating to an equal number of Africans, Asians, Americans and Europeans, or should they represent greater numbers of Asians than any other group?

The same question can be raised with gender, because the world contains 105 men for every 100 women at birth.

The challenge facing those whose goal it is to develop AI that is sufficiently impartial (or perhaps proportionally impartial) is the challenge facing societies across the globe. How can we ensure all parties are not only represented, but heard - and when historical precedent is working all the while to undermine the endeavor?

The importance of feeding the right data into ML systems is clear, correlating directly with AIs ability to generate useful insights. But identifying the right versus wrong data (or good versus bad) is far from simple.

As Tomsett explains, data can be biased in a variety of ways: the data collection process could result in badly sampled, unrepresentative data; labels applied to the data through past decisions or human labellers may be biased; or inherent structural biases that we do not want to propagate may be present in the data.

Many AI systems will continue to be trained using bad data, making this an ongoing problem that can result in groups being put at a systemic disadvantage, he added.

It would be logical to assume that removing data types that could possibly inform prejudices - such as age, ethnicity or sexual orientation - might go some way to solving the problem. However, auxiliary or adjacent information held within a data set can also serve to skew output.

An individuals postcode, for example, might reveal much about their characteristics or identity. This auxiliary data could be used by the AI product as a proxy for the primary data, resulting in the same level of discrimination.

Further complicating matters, there are instances in which bias in an AI product is actively desirable. For example, if using AI to recruit for a role that demands a certain level of physical strength - such as firefighter - it is sensible to discriminate in favor of male applicants, because biology dictates the average male is physically stronger than the average female. In this instance, the data set feeding the AI product is indisputably biased, but appropriately so.

This level of depth and complexity makes auditing for bias, identifying its source and grading data sets a monumentally challenging task.

To tackle the issue of bad data, researchers have toyed with the idea of bias bounties, similar in style to bug bounties used by cybersecurity vendors to weed out imperfections in their services. However, this model operates on the assumption an individual is equipped to to recognize bias against any other demographic than their own - a question worthy of a whole separate debate.

Another compromise could be found in the notion of Explainable AI (XAI), which dictates that developers of AI algorithms must be able to explain in granular detail the process that leads to any given decision generated by their AI model.

Explainable AI is fast becoming one of the most important topics in the AI space, and part of its focus is on auditing data before its used to train models, explained Vernon.

The capability of AI explainability tools can help us understand how algorithms have come to a particular decision, which should give us an indication of whether biases the algorithm is following are problematic or not.

Transparency, it seems, could be the first step on the road to addressing the issue of unwanted bias. If were unable to prevent AI from discriminating, the hope is we can at least recognise discrimination has taken place.

The perpetuation of existing algorithmic bias is another problem that bears thinking about. How many tools currently in circulation are fueled by significant but undetected bias? And how many of these programs might be used as the foundation for future projects?

When developing a piece of software, its common practice for developers to draw from a library of existing code, which saves time and allows them to embed pre-prepared functionalities into their applications.

The problem, in the context of AI bias, is that the practice could serve to extend the influence of bias, hiding away in the nooks and crannies of vast code libraries and data sets.

Hypothetically, if a particularly popular piece of open source code were to exhibit bias against a particular demographic, its possible the same discriminatory inclination could embed itself at the heart of many other products, unbeknownst to their developers.

According to Kacper Bazyliski, AI Team Leader at software development firm Neoteric, it is relatively common for code to be reused across multiple development projects, depending on their nature and scope.

If two AI projects are similar, they often share some common steps, at least in data pre- and post-processing. Then its pretty common to transplant code from one project to another to speed up the development process, he said.

Sharing highly biased open source data sets for ML training makes it possible that the bias finds its way into future products. Its a task for the AI development teams to prevent from happening.

Further, Bazyliski notes that its not uncommon for developers to have limited visibility into the kinds of data going into their products.

In some projects, developers have full visibility over the data set, but its quite often that some data has to be anonymized or some features stored in data are not described because of confidentiality, he noted.

This isnt to say code libraries are inherently bad - they are no doubt a boon for the worlds developers - but their potential to contribute to the perpetuation of bias is clear.

Against this backdrop, it would be a serious mistake to...conclude that technology itself is neutral, reads a blog post from Google-owned AI firm DeepMind.

Even when bias does not originate with software developers, it is still repackaged and amplified by the creation of new products, leading to new opportunities for harm.

Bias is an inherently loaded term, carrying with it a host of negative baggage. But it is possible bias is more fundamental to the way we operate than we might like to think - inextricable from the human character and therefore anything we produce.

According to Alexander Linder, VP Analyst at Gartner, the pursuit of impartial AI is misguided and impractical, by virtue of this very human paradox.

Bias cannot ever be totally removed. Even the attempt to remove bias creates bias of its own - its a myth to even try to achieve a bias-free world, he told TechRadar Pro.

Tomsett, meanwhile, strikes a slightly more optimistic note, but also gestures towards the futility of an aspiration to total impartiality.

Because there are different kinds of bias and it is impossible to minimize all kinds simultaneously, this will always be a trade-off. The best approach will have to be decided on a case by case basis, by carefully considering the potential harms from using the algorithm to make decisions, he explained.

Machine learning, by nature, is a form of statistical discrimination: we train machine learning models to make decisions (to discriminate between options) based on past data.

The attempt to rid decision making of bias, then, runs at odds with the very mechanism humans use to make decisions in the first place. Without a measure of bias, AI cannot be mobilised to work for us.

It would be patently absurd to suggest AI bias is not a problem worth paying attention to, given the obvious ramifications. But, on the other hand, the notion of a perfectly balanced data set, capable of rinsing all discrimination from algorithmic decision-making, seems little more than an abstract ideal.

Life, ultimately, is too messy. Perfectly egalitarian AI is unachievable, not because its a problem that requires too much effort to solve, but because the very definition of the problem is in constant flux.

The conception of bias varies in line with changes to societal, individual and cultural preference - and it is impossible to develop AI systems within a vacuum, at a remove from these complexities.

To be able to recognize biased decision making and mitigate its damaging effects is critical, but to eliminate bias is unnatural - and impossible.

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Playing God: Why artificial intelligence is hopelessly biased - and always will be - TechRadar India