- Chinese Regulators Target Bitcoin to Curb Capital Outflow
China’s central bank stepped up supervision of bitcoin trading as it escalates a battle to curb capital outflows and stabilize the yuan. The move sent the virtual currency into a tailspin Wednesday.
In separate statements, the Shanghai and Beijing branches of the People’s Bank of China said they conducted spot inspections of the major exchanges of bitcoin, which many analysts have said has been used by investors to move money out of the country as the yuan falls in value.
Following the PBOC’s announcements, bitcoin dropped more than 13% against the dollar on the day. The virtual currency surged last year, and the major exchanges have claimed that China accounted for more than 90% of its global trading.
Representatives at the bitcoin exchanges cited by the regulator—BTCC, Huobi and OKCoin—didn’t immediately respond to requests for comment.
The inspections came after warnings by the central bank last week about the risks associated with bitcoin trading and come as Chinese authorities are ramping up efforts to police the movement of capital offshore and ease pressure on the yuan. Latest official data shows that China’s foreign-exchange reserves fell to the lowest in nearly six years last month, to $3.011 trillion, highlighting accelerated outflows and the central bank’s intensified spending to defend the local currency.
In recent months, Beijing has tightened capital controls, making it more difficult for companies to invest overseas and for individuals to convert their yuan funds into foreign currencies. With bitcoin trading increasingly popular among Chinese investors, regulators are trying to close what analysts say is a channel that could contribute to more outflows.
Over the past few years, China has become a hub for bitcoin. Three of the largest exchanges are located in the country, which is also home to the largest “miners”—businesses that process transactions and maintain the network in return for newly minted bitcoin.
Two trends are driving bitcoin in China. One is its usefulness in getting money out of the country. Traders buy bitcoins on a Chinese exchange using yuan and then sell it on a foreign exchange using dollars. The other is simply speculation by active Chinese traders.
According to the PBOC’s statements, the purpose of the inspections was to look into possible market manipulation, money laundering, unauthorized financing, currency conversion and other issues.
Last Friday, the central bank’s Shanghai branch said it had met with executives of BTCC, one of the exchanges, warning them about potential risks in its operations and urging it to comply with rules and regulations. The central bank didn’t elaborate.
“BTCC regularly meets with the People’s Bank of China and we work closely with them to ensure that we are operating in accordance with the laws and regulations of China,” the exchange said in a statement on its website Friday.
Elon Musk Promises to Reward Best Carbon Technology $100 Million
The Chief Executive Officer (CEO) of Tesla Inc. has announced that he will donate $100 million in reward for the best carbon capture technology.
The richest man in the world disclosed this in a tweet on Thursday.
“Am donating $100M towards a prize for best carbon capture technology,” Musk tweeted. “Details next week.”
Elon R Musk gained +$375 million in the last 24 hours to take his total gain in net worth this year to $32 billion and $202 billion total net worth.
Musk, who worth just about $27 billion in January 2020, has risen through the rank to top the world’s richest billionaire index.
The $100 million would be Musk’s largest known donation to date and represents around 0.05 percent of his net worth.
In 2012, Musk signed “The Giving Pledge” to join the list of billionaires that promise to donate half of their fortune to charity in their lifetime or in their wills.
Musk worth just $2 billion when he signed the pledge.
YouTube Suspends Trump Channel
YouTube Suspends Trump Channel
Google-owned YouTube on Tuesday temporarily suspended President Donald Trump’s channel and removed a video for violating its policy against inciting violence, joining other social media platforms in banning his accounts after last week’s Capitol riot.
Trump’s access to the social media platforms he has used as a megaphone during his presidency has been largely cut off since a violent mob of his supporters stormed the Capitol in Washington DC last week.
Operators say the embittered leader could use his accounts to foment more unrest in the run-up to President-elect Joe Biden’s inauguration.
“In light of concerns about the ongoing potential for violence, we removed new content uploaded to Donald J. Trump’s channel for violating our policies,” YouTube said in a statement.
The channel is now “temporarily prevented from uploading new content for a ‘minimum’ of 7 days,” the statement read.
The video-sharing platform also said it will be “indefinitely disabling comments” on Trump’s channel because of safety concerns.
Facebook last week suspended Trump’s Facebook and Instagram accounts following the violent invasion of the US Capitol, which temporarily disrupted the certification of Biden’s election victory.
In announcing the suspension last week, Facebook chief Mark Zuckerberg said Trump used the platform to incite violent and was concerned he would continue to do so.
Twitter went a step further by deleting Trump’s account, depriving him of his favorite platform. It was already marking his tweets disputing the election outcome with warnings.
The company also deleted more than 70,000 accounts linked to the bizarre QAnon conspiracy theory, which claims, without any evidence, that Trump is waging a secret war against a global cabal of satanist liberals.
Trump also was hit with suspensions by services like Snapchat and Twitch.
The president’s YouTube account has amassed 2.77 million subscribers.
The home page of the Trump channel featured a month-old video of Trump casting doubt on the voting process in November’s presidential election, and had logged some 5.8 million views.
On Tuesday, an activist group called on YouTube to join other platforms in dumping Trump’s accounts, threatening an advertising boycott campaign.
Analysts Predict 1,137% Earnings Per Share Growth for Shopify’s Full Year 2020
While the pandemic has devastated countless businesses, it has provided a major boon for eCommerce platform Shopify.
Shopify’s stock rallied by 169.9% in 2020 compared to the industry’s 26.6% growth. As of mid-December 2020, according to the research data analyzed and published by Finnish site Sijoitusrahastot, it had a 90 RS rating, which means that it had outperformed 90% of stocks during the year.
Based on the Zacks Consensus Estimate, its Q4 earnings per share (EPS) are set to jump by 188.37% to $1.24 while its sales will grow by 78% to $899.2 million. For the full year 2020, analysts project a massive 1,137% jump for the Shopify EPS.
Shopify Merchants Sell Over $5.1 Billion on Black Friday, Cyber Monday
Since Shopify went public in 2015, its stock has risen over 40-fold to more than $1,200 at the end of December 2020. Between 2016 and 2019, it skyrocketed by over 1,400%.
The eCommerce platform’s earnings for Q1 to Q3 2020 grew at an average of 552%. That was well above the 101% three-year average. In Q3 2020, its revenue nearly doubled from $390.6 million to $767.4 million.
Earnings in Q3 2020 rose from a net loss of 29 cents to $1.13 per share. Gross Merchandise Volume (GMV) soared by 109% reaching $30.9 billion, compared to 46% in Q1 2020 and 119% in Q2 2020. For the first nine months of 2020, there was a revenue increase of 82%.
For the first time, Shopify’s GMV surpassed that of eBay in Q2 2020, doing it again in Q3 2020. It claims to have a 6% share of the US market, higher than eBay’s but lower than Amazon’s 37%.
During the Black Friday Cyber Monday weekend, merchants on the Shopify platform sold goods worth $5.1 billion. Compared to 2019, this marked a 76% uptick and set a new record. Comparatively, independent businesses on Amazon sold goods worth $4.8 billion. The number of buyers on Shopify increased by 50% year-over-year (YoY) to 44 million during that weekend.
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