Lots of bad news about China and Bitcoin, and good news about new blog

Lots of bad news about China and Bitcoin, and good news about new blog
I have lots of things to catch you all up on, but let me start with the international news items first. This month, China has basically pulled the plug on Chinese citizens’ easy ability to buy or sell Bitcoins and other cryptocurrencies. It transpired in stages, long before there was any official policy announced from on high. First, an anonymous writer for the respected financial paper, Caixin, wrote late on a Friday evening that the government was planning to ban Initial Coin Offerings (ICOs), which has become a popular (and often abused) method for blockchain projects to quickly raise funds. Prices for digital assets like Bitcoin dropped sharply over the weekend all over China, and to a lesser extent around the world. A few days later, Caixin published another article saying that 60 ICO platforms were being shut down. Further, all ICOs were to be halted immediately, and investors’ funds returned as soon as possible. While those folks were scrambling to comply with the new rules, prices continued to fall. Bitcoin values dropped from the mid-$4,000 range to around $3,000. Then, two major Bitcoin exchanges, OKCoin and ViaBTC, announced they were closing up shop by the end of the month. ...

TFW you see yourself quoted anonymously in a news article 1

TFW you see yourself quoted anonymously in a news article
This morning, while reviewing news from the cryptocurrency world, one article especially caught my eye, so I read it all the way through. And found myself reading my own words. No, it wasn’t plagiarism, but the writer used a comment I had left days ago at a Steemit.com post verbatim, without using my name or Steemit handle. My feelings were a mixture of pride, surprise — and annoyance. Back in my days as a newspaper reporter, we were expected to contact people whom we would quote in a news article. Since the writer made no attempt to contact me, seeing my words in her article ruffled my feathers a bit. Otherwise, I was quoted accurately and appropriately, so my feathers are now back to normal. The subject of the article at Bitcoin.com was American investment in ICOs (initial coin offerings), which have recently become a very common method for cryptocurrency projects to raise money quickly. If you’re familiar with IPOs (initial public offerings) in corporate finance, the idea is the same: to get a boatload of money to help expand a business. As many ICOs are based abroad, Americans are sometimes blocked from investing in them, because of US taxation ...

Bitcoin, Litecoin withdrawals resume at Chinese exchanges — woo hoo!

Bitcoin, Litecoin withdrawals resume at Chinese exchanges -- woo hoo!
JISHOU, HUNAN — After five months of shutdowns, Chinese cryptocurrency exchanges have resumed Bitcoin and Litecoin withdrawals, meaning I could finally move the coins I’ve had at Huobi.com since February to my other wallets. Chinese regulators forced BTCChina, Huobi and OKCoin to halt the withdrawals (but not Chinese yuan withdrawals) in January, pending “investigations.” Basically, it boiled down to the government telling the exchanges to tighten ship, monitor who was moving money through the exchanges, and add policies to limit margin trading and end fee-less trades. Resumption of Bitcoin and Litecoin withdrawals comes a week after the three exchanges announced they would offer trading May 31 in Ethereum and Ethereum Classic — two of the hottest tokens in the markets. Interest in Ethereum has picked up in China, as I’ve mentioned before here. Makes me wonder if the exchanges did some bargaining with the national regulators to allow the new trading platforms in exchange (pardon the pun) for complying with the new rules. In any event, Bitcoin prices rose today over $2,400, perhaps in response to the Chinese exchanges regaining full integration with the world markets. The other two were also trading strongly today.

Another fascinating infographic: the explosion of Bitcoin and the altcoins 2

If you’ve read my blog, you know I’ve been involved with Bitcoin and its progeny since 2013. This month, the cryptocurrency markets have exploded, though there was a market correction a few days ago. To get a handle on what all this means, check this inforgraphic from the Visual Capitalist. Courtesy of: Visual Capitalist If you’re interested in getting started with Bitcoin, Litecoin or Ethereum, you can open an account at Coinbase using my referral link here. We each get $10 in Bitcoin free if you spend more than $100. With Coinbase, you link your bank account, so you can buy and sell those three cryptocurrencies with US dollars. There is also the option to link a credit card, so you can receive the coins instantly, rather than waiting a few days for the ACH withdrawal to clear. I’ve been debating whether to post a tutorial on how to mine, buy, sell and trade Bitcoin and the altcoins, but have hesitated because so many other bloggers have already done the same. Let me know if you want the Wheat-dogg version.

Chinese regulators may finally permit Bitcoin, Litecoin withdrawals

Chinese regulators may finally permit Bitcoin, Litecoin withdrawals
JISHOU, HUNAN — Word has it that the People’s Bank of China — China’s central bank — will finally allow exchanges to allow users to once again withdraw Bitcoin and Litecoin, possibly next month. Such withdrawals were halted in January as regulators examined the business practices of China’s major cryptocurrency exchanges. The supposed rationale was to limit fraud and criminal activity, but the basic reason was to stem a possible means of capital flight. The ban did not affect withdrawals to Chinese bank accounts, however. It applied specifically only to Bitcoin and Litecoin, the gold and silver of the cryptocurrencies. Other crypto-coins, like Ether and Zcash, were not included in the ban, as I later discovered. Anyway, as I’ve blogged earlier, the freeze on withdrawals closed off the principal method I used to transfer my monthly pay (in Chinese yuan) to my US bank account (in dollars). Bitcoin enabled me to move money quickly and cheaply. But since January, I’ve had to be more creative in transfers. A larger result of the withdrawal ban was to depress the market price of Bitcoin in China, sometimes by as much as $200, compared to the prices at foreign exchanges like Coinbase or ...

Loose change found in a sticky note on a wall

Loose change found in a sticky note on a wall
JISHOU, HUNAN — Last month I reported I had found “loose change” in a hard drive backup, but regretted losing the password to free some of it from captivity. I found the password today, and in the nick of time, too. What I had found in a backup were the wallet files for two cryptocurrencies I had bought in 2014, then eventually forgot about. One of the files held about $2.50 of Namecoin, while the other (at the time) held about $8 of PeerCoin. Trouble was, the PeerCoin wallet was encrypted with a passphrase I had long since forgotten. After wracking my brain for a few days and trying different possible passphrases, I gave up on the project, assuming those $8 would be forever out of my reach. Then today I learned PeerCoin’s value had shot up from 80 cents to $2, making my tiny holding worth $20. Once again, I attempted to guess the long lost passphrase, to no avail. Just before I had classes this afternoon, I went over to my desk to fetch something and noticed one of the sticky notes on the wall behind my computer screen had curled up enough to hide the note written ...

Bitcoin, Litecoin and Ethereum — oh my!

Bitcoin, Litecoin and Ethereum -- oh my!
JISHOU, HUNAN — It may seem like this blog is swinging toward the intensely techie, but bear with me. I’m your surrogate in the ever-changing financial technology (fintech) landscape. Government regulators required China’s Bitcoin exchanges to halt Bitcoin and Litecoin withdrawals back in January, and that situation still remains. But, when one door closes, another opens, as the saying goes. It turns out Bitcoin and Litecoin are not the only cryptocurrencies being traded in China. Yunbi.com is a Hangzhou-based exchange specializing in Ethereum, Zcash, Bitshares, and several other cryptocoins, as well as Bitcoin. I only learned about it a week ago, as it is relatively new. Curiously, government regulators have basically ignored Ethereum, which at this writing has the second-largest trading volume worldwide after Bitcoin, and just about every other token besides Bitcoin and Litecoin. Not that I’m complaining. Once I realized Yunbi would allow withdrawals of not-Bitcoins to recipients outside the exchange, I applied for an account. Yunbi required me to submit photos of my passport, bank card, and a selfie of me holding them, and within two days, I had opened an account there. While I may not be able to send funds outside China with Bitcoin or ...

Trying out Abra, a new mobile payment app 1

Trying out Abra, a new mobile payment app
JISHOU, HUNAN — While exploring ways to move my money more easily around, I stumbled across Abra, a mobile phone app that transfers funds using the Bitcoin network. I gave it a try, and I like it. For one thing, it simplifies my transfers from China to the USA. Before Abra, there were several steps to transfer money from my bank in China to my bank in the USA, whether I used PayPal or Bitcoin. Abra reduces that number, and removes some fees in the process. There still remains one major drawback: Abra has no working relationships with banks in China. So, I still need to jump through a few hoops to buy Bitcoin to drop into my Abra wallet, but once it is there, it’s a breeze to send it to my bank account in the States. I’ve done all sorts of stories about moving money across borders, but to review, here are the main steps. For PayPal: Log into my China PayPal account. Send funds from my Chinese bank to my American PayPal account. PayPal charges a 4% foreign exchange fee. Log into my American PayPal account. Transfer funds to my bank account. Not bad, right? Unless you ...

Good news from Huobi.com about my Bitcoin account 2

Good news from Huobi.com about my Bitcoin account
JISHOU, HUNAN — The Bitcoin winter in China may be thawing finally. I can use my bank card at the Huobi.com Bitcoin exchange once again. As I related earlier, the new national regulations concerning Bitcoin exchanges seemed to have shut me, and other foreigners, out of the exchanges indefinitely. BTCChina told me flat out that foreigners would not be allowed to trade with them anymore. Huobi did allow me to re-register with my name exactly as it is listed on my passport, but I could not bind my Chinese debit card to the account because I had no Chinese ID number. That ended Monday, when I got a call from Huobi saying I could again use my Chinese Unionpay card. Huobi’s system now accepts my US passport number as a proper form of ID to be linked with the card. I also had to do a “video verification” by participating in a video call on the QQ messaging client with a Huobi agent. She asked me a few questions, like my name, the source of the funds I would be using, and my reasons for trading in Bitcoin. I also had to show her my passport and my debit card. ...

Loose change found in a backup

Loose change found in a backup
JISHOU, HUNAN — You know that nice feeling you get when you reach into a pocket and find a $20 bill you’d forgotten all about? Imagine it happening while you’re rooting around a computer backup file. I’ve been dabbling in cryptocurrencies, like Bitcoin, since 2013. At the beginning, I was pretty much at sea, and in any event it was hard to see which of the several cryptocoins back then would really catch on. Then, as now, I had small caches of Bitcoin and Litecoin on my computer. But I also had even smaller amounts of two other lesser known tokens, Namecoin and Peercoin. Neither of these seemed to be catching on, so over time I just forgot about them. Day before yesterday, a friend asked me if I could send her some photos I took in 2015. This required me to hunt through my backup drive for the pics. After I found the photos and emailed them, I decided to poke around my backups a little more. Scrolling through the list of program files, I came across Namecoin and Peercoin wallets. Hey, I asked myself, I wonder if there’s any money still in those wallets? Really, I had no ...

Epilogue to my Bitcoin dilemma: I got my money back

Epilogue to my Bitcoin dilemma: I got my money back
JISHOU, HUNAN — So, after three telephone calls and four chat sessions on Huobi’s customer service chat window, I finally got my 500 yuan ($73) deposit back two weeks after I sent it. All is well now. I won’t bother you with all the details, but bank-to-bank transfers in China are persnickety affairs. The sender has to specify the exact bank branch at which the recipient opened his or her account. And my branch at the university is a sub-branch of another branch, so the system was not allowing the transfer to go through. Or something. Anyway, I got my money back. I am still unable to bind my bank card at Huobi without a national ID number, so obtaining Bitcoin using Huobi or BTCChina, despite my previous relationships with them, is impossible for the foreseeable future. In education news, I am spending this weekend recreating my lesson plans and syllabi for courses I taught in 2014-15 to submit to the college. Why, you ask? Well, the college needs to get accreditation (if that’s what it’s called here) from the provincial education bureau. To get it, each instructor has to provide detailed lesson plans and syllabi for courses taught in ...

Revisiting Ripple (not the wine) amid China’s Bitcoin clamp-down

Revisiting Ripple (not the wine) amid China's Bitcoin clamp-down
JISHOU, HUNAN — Out of curiosity yesterday, I checked up on Ripple, a cryptocurrency I honestly had not used or paid much attention lately, just to see what all the buzz about it was. I was pleasantly surprised for two reasons. One, the value of Ripple against the dollar (well, cents, really) has more than doubled since last year. It seems Bitcoin’s inherent limitations have encouraged investors to look at altcoins — the bazillions of alternative electronic currencies to Bitcoin — resulting in sharp price spikes for several since January. Second, it’s once again possible to buy Ripple tokens (XRP) using the Chinese shopping website, Taobao, or payment processors like Alipay. So, I gave it a try and it worked! I’ll explain why this is noteworthy later on. Since I’ve been focusing on Bitcoin in China lately, I’ve been spending more time reading up on Bitcoin and the other cryptocurrencies, including Ripple. A lot has been happening there, and not just because of China’s regulation of Bitcoin. Bitcoin and similar electronic currency tokens verify transactions using a public electronic ledger, called the blockchain. In other words, if I send you some Bitcoin, it is entered on the blockchain, as is ...
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