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Monday, June 27, 2016

Brexit boosts bitcoin price, Is bitcoin a safe haven?


'Brexit' Boosts Bitcoin Price, But Too Early to Call it a Safe Haven


Despite the increase in the price of bitcoin amid the UK’s recent EU referendum, a new research note from Needham & Company asserts it might be too early to call the digital currency a “safe haven” asset.

Global bitcoin prices have risen nearly 6% over the day’s trading to reach a high of $680, a figure up more than $100 from a low of $561.46 on 23rd June. Market observers were quick to assert the increase, which occurred as sentiment in the 'Brexit' vote shifted, was a sign this uncertainty had encouraged new investment in the digital currency markets.

However, Needham said its researchers are "hesitant" to call bitcoin a safe haven alongside gold, US Treasurys, yen and USD.

The note reads:

"For one, calling it such obfuscates the fact that bitcoin is a high-risk and volatile investment and, second, bitcoin's correlation to other traditional safe-haven assets has fluctuated significantly."

Still, Needham called the ‘Brexit’ a positive for the digital currency market, as it shows that bitcoin has the potential to rally around marcoeconomic uncertainty and on developments within its own technical ecosystem.

“On the one hand, bitcoin is performing like a safe-haven asset but, on the other hand, its newness and dynamism do not resemble US Treasurys or gold,” the note reads.

Ultimately, the note concludes bitcoin might not fit into any existing asset definitions, concluding:

"We believe that bitcoin is something entirely different that does not fit into the normal buckets that investments are typically bracketed into." - http://www.coindesk.com

Is bitcoin a safe haven against mainstream money mayhem?

We unlock the mystery of the digital currency with a cult following



bitcoin/ n. A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Eh? No wonder so many people are confused about bitcoin. What you see above is the Oxford Online Dictionary definition of what is probably the most fashionable currency in the world. I realise that’s not saying much: currencies don’t usually have cult followings. But if the euro is the nerd no one wants to be seen with, bitcoin is the coolest kid in the class.

Perhaps part of the attraction of bitcoin for techie types is the very fact that it’s such a mystery to everyone else, accustomed as we are to traditional currencies. That makes the bitcoin club very exclusive.

So what is a ‘digital currency’ anyway? How can any kind of real money exist only in a digital form? Well, the two things that enable it to work are a) the fact that there are a finite number of bitcoins in existence, and b) the clever bit of technology that underpins it: the blockchain.

The blockchain is, in a way, the best thing about bitcoin. Safe to say that whatever may happen to bitcoin in the ephemeral world of digital fads, blockchains have a serious future in the technology of payments and money transmission: central banks are already working on what that future might be. Essentially, a blockchain is a record of digital events: in the case of bitcoin, any change in ownership of any one ‘coin’. This record is impossible to change, so it can’t be edited after it has been confirmed. The only way of altering the blockchain is by adding to it, rather than erasing previous entries. And the record is not stored in just one place, but shared across hundreds or thousands of networked computers, making it harder to hack.

The other interesting thing is that the system is anonymous. Unlike a bank or Paypal, which request all sorts of personal details from you, bitcoin doesn’t care who you are. That makes it popular with people who don’t want their financial activities traced, whether because they are extreme libertarians or because they have something to hide. Many users feel a political affinity with the bitcoin concept of a currency that functions independently of any bank, government or institution full of men in suits. As one user told me: ‘Bitcoin doesn’t have a CEO; it has no ability to care either way about who uses it or why.’

But beyond those who want to hide, is bitcoin flourishing among everyday consumers? Well, it’s certainly a growth market. Plenty of people have given it a shot to see what the fuss is about, but it’s the drug-dealing and cybercrime fraternities that allegedly make up a large proportion of bitcoin turnover.

When, for example, the first Silk Road online market-place (a site which mostly sold drugs on the ‘dark web’, the part of the internet inaccessible through normal search engines) was shut down in 2013 by the FBI, the price of bitcoin saw a short-term crash because so many coins had been seized by the US authorities.

But one aficionado who has lived off bitcoin trading for the last two years told me: ‘It’s very convenient to paint the whole [bitcoin user] group as one homogenous entity. But I’ve met people from all sides of the political spectrum in bitcoin forums on the internet.’

What else is bitcoin good for? Charities are keen to use it, especially when transferring money to, say, Africa, because the transaction costs are much smaller than with services such as Western Union. A number of places and websites also accept bitcoin payment (full list at www.wheretospendbitcoins.co.uk), including the Pembury Tavern in Hackney, which was the first British pub to join this new marketplace.

But bitcoin, as with any other currency, is still at the mercy of exchange-rate fluctuations. Even the most dedicated bitcoin users agree on this point: it’s no more reliable than any other currency, and possibly less so. In the past, bitcoin prices against US dollars have fluctuated massively in short spaces of time — and with no central authority in control, its market is vulnerable to manipulation.

The same applies to bitcoin as an investment: will it stand the test of time? One benefit — so it is said — is that once 21 million bitcoins have been released, production will stop, meaning that your virtual cash could hold its value, on grounds of scarcity, more than a traditional currency. But some devotees have already raised the question of removing or raising that cap.

Meanwhile, Wall Street has also been showing more interest in the currency, with a bitcoin index introduced on the New York Stock Exchange last year. It also has been gaining traction in countries with unstable currencies or weak banking systems. If the mainstream financiers who brought the world to its knees in 2008 decide to embrace bitcoin, who knows what will happen to it.

So how about bitcoin as a hedge against the Brexit result, or a safe haven in the current round of financial turmoil? Whichever way the EU vote goes, it looks like sterling is in for a torrid time in the short to medium term, and shares have already gone into a bear market. So if you’re looking for somewhere safer to keep your cash, is bitcoin an option?

It’s certainly a volatile proposition: you might make money if your timing is exactly right but if there’s a sudden panic over bitcoin’s future, the bottom could fall out of this market very quickly indeed. There’s always a risk of cyberattack too, especially given that so many bitcoin users tend to be high-level techies.

It’s also worth bearing in mind that this is the first digital currency to go large — and just look at the fate of other web firsts. Few of the earliest social media networks are still going today; everyone in the digital arena is always looking for the new, new thing.

Bitcoin is an intriguing phenomenon, for sure, but its fate hangs in the balance. Would I risk putting my savings into such a mysterious thing? No, probably not. But a small punt? Well, in an uncertain world, it’s got to be worth a try.

Source: By Camilla Swift The Spectator
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Sunday, June 26, 2016

China's new generation carrier rocket blasts off in Wenchang, Hainan province





A Long March-7 carrier rocket lifts off from Wenchang Satellite Launch Center, south China's Hainan Province, June 25, 2016. [Photo: Xinhua/Li Gang]

Insight: Successful rocket launch gets China one step closer to own space station


WENCHANG, Hainan, June 25 (Xinhua) -- China on Saturday successfully blasted off its new generation carrier rocket Long March-7 from Wenchang space launch center in south China's Hainan province.

In a cloud of white smoke, the rocket ascended against the dark sky, trailing a vast column of flame. Space fans in specially set up viewing areas erupted with applause.

Minutes later, Zhang Youxia, commander-in-chief of China's manned space program, declared the launch a success.

The rocket's payload separated from the rocket 603 seconds after blast-off, and entered an oval orbit with a low point, or perigee, of 200 kilometers, and a high point, or apogee, of 394 kilometers.

The launch is the first by the Wenchang site, and the 230th of China's Long March carrier rocket family.

Its mission is to verify the design and performance of the new carrier rocket, to evaluate mission execution capacity of the Wenchang launch site, and to check coordination and compatibility of project-related systems.

NEW CARRIER

The Long March-7 is a medium-sized, two-stage rocket that can carry up to 13.5 tonnes to low-Earth orbit (LEO).

Earlier reports said the rocket now uses kerosene and liquid oxygen as fuel, rather than the highly toxic propellant, making it more environmental friendly and less expensive.

Experts forecast that the 53.1-meter-long, 597-tonne rocket will become the main carrier for China's future space missions.

Its 13.5-tonne LEO payload capacity means it can carry 1.5 times as much as the country's current launch vehicles.

"The more our rockets can lift, the farther we can venture into space," said Ma Zhonghui, chief designer for the rocket.

"Long March-7's successful maiden flight will greatly lift up China's comprehensive space capacity, and give the country a hefty boost in building itself into a space power," he said.

In many senses, the blast-off of the Long March-7 is of key importance to China's space programs, deemed by many a source of surging national pride and a marker of its global stature and technical expertise.

The rocket's payload includes a scaled-down version of "a reentry module of a multi-function spacecraft," said Wu Ping, a deputy director with China's manned space program.

Wu said the 2,600-kg re-entry module is expected to return to Earth on Sunday afternoon, some 20 hours after the Long March-7 launch.

It is expected to land in a desert in China's Inner Mongolia Autonomous Region, close to the Jiuquan Satellite Launch Center.

Data collected from the re-entry experiment will help with future research on a new generation manned spacecraft, Wu said.  

WHAT'S ABOARD

Also onboard the Long March-7 rocket are an "Aolong-1" space debris clearer, two "Tiange" data relay spacecraft, a CubeSat designed to study Earth's gravitational field and space radiation, and a space refueling device that could be used to resupply satellites and space stations to extend their operating life spans.

After being separated from the Long March-7, they will be carried into different orbits onboard an upgraded "space shuttle bus" Yuanzheng-1A, tasked to send these spacecraft in the next 48 hours using its own power system.

Saturday's launch also marks a key step towards China's plan to eventually operate a permanent space station in the final step of the country's three-phase manned space program.

The country launched its first manned spaceflight in 2003, and blasted off its first space lab Tiangong-1 in 2011.

The next and final step will be to assemble and operate a 60-tonne space station around 2022.

To do that, Chinese engineers have planned four space launches within ten months till April next year, of which the Long March-7 mission is the first.

A second mission in late September will put the Tiangong-2 space lab into orbit, and the third one will see the Shenzhou-11 spacecraft, which will carry two Taikonauts, dock with Tiangong-2 in October.

In April 2017, the country's first cargo ship Tianzhou-1, which literally means "heavenly vessel," will be sent to dock with Tiangong-2 in the final mission.

NEW LAUNCH SITE

Wenchang will be the main launch site for future space station missions, including the launch of Tianzhou-1.

Completed in 2014, the Wenchang launch site is the the fourth of its kind in China.

Among the other three, Jiuquan Satellite Launch Center in the Gobi Dessert is currently the nation's only manned spacecraft launch center, while Xichang in southwest China's Sichuan Province is mainly used to launch powerful-thrust rockets and geostationary satellites.

The third, Taiyuan Satellite Launch Center in north China's Shanxi Province, is capable of launching satellites into both medium and low orbits.

Being the closest site to the equator, Wenchang boasts considerable latitudinal advantages - Satellites launched from low latitudes are expected to have a longer service life as a result of the fuel saved by a shorter maneuver from transit to geosynchronous orbit. That extra fuel can later be used to regulate and sustain orbit.

This means rockets launched in Wenchang could will allow their payload to be increased by more than 300 kg, 7.4 percent more than from any of the other three centers.

By Wang Cong, Fu Shuangqi Xinhua

China's New Carrier Rocket to Launch 1st Cargo Spacecraft in 2017


The latest version of China's carrier rocket, the Long March-7, has been successfully launched from the Wenchang launch center in Hainan.

Long March-7 is going to be used mostly to transport cargo to China's future space stations, as well as satellites and other spacecraft.

Saturday's launch marks a key step towards China's plan to eventually operate a permanent space station, which is the final step of China's three-phased manned space program.

The Long March-7 rocket has been designed as a cargo spacecraft, and is set to haul most of the components for China's planned space station.

Wu Ping is deputy director of the China Manned Space Engineering Office.

"The Long March-7 project began in January 2011 as a baseline model for China's latest generation of medium-sized carrier rockets. According to the plan, the Long March-7 is expected to launch China's first cargo spacecraft in April 2017. During the construction and operation of the space station, the rocket and the cargo spacecraft will serve as a transport system to replenish supplies and propellant for the station."

The 53-meter, 597-ton, liquid-fueled rocket can carry up to 13.5 tons into low-Earth orbit.

Wang Xiaojun, General Director of the Long March-7 Project, says getting the Long March-7 active is critical in meeting the goal of getting a space station running by 2022.

"The Long March-7 carrier rocket uses kerosene and liquid oxygen as fuel and a low-temperature pressurization system. Powered by six engines, it has a takeoff thrust of 730 tons and can carry 1.5 times as much as the current launch vehicles, which means a significant step forward in our country's rocket development project."

The Wenchang Satellite Launch Center is the fourth of its kind in China, after the Jiuquan Satellite Launch Center in Gansu, the Xichang Satellite Launch Center in Sichuan and the Taiyuan Satellite Launch Center in Shanxi.

Located on China's southernmost point, the Wenchang center allows better access to geostationary orbit for Chinese satellites.

It will be the main launch site for most future space station missions.

Wang Jingzhong, CPC chief of the Xichang Satellite Launch Center in Sichuan, says the Wenchang launch site in Hainan will help relieve a lot of pressure off their facility.

"The center will be used for the launch of geosynchronous satellites, large polar orbiting satellites, low and medium Earth orbit spacecraft, cargo spacecraft, space stations, as well as deep space exploration and other missions. It will also be used during the third phase of China's lunar exploration program and the launch of the Chang'e-5 probe."

Meanwhile, Chinese space officials are suggesting the Long March-5 rocket series is also going to make its debut later this year from the Wenchang facility.

Those rockets are designed for long-range space missions.

It's expected to carry the Chang'e-5 lunar probe into space sometime next year, which will finish China's three-step -- orbiting, landing and return -- moon exploration program.

China will also send its second orbiting space lab Tiangong-2 into space this year, as well as launch the Shenzhou-11 manned spacecraft.

As part of China's space lab program, the Shenzhou-11 spacecraft will carry two astronauts on board to dock with Tiangong-2.

The two astronauts have already been chosen and are currently under intense training. - (CRI Online)

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Saturday, June 25, 2016

Britain steps backward as EU faces decline: chaos but no negative impact, a windfall for children studying in UK



Britain steps backward as EU faces decline


The UK voted to leave the EU, with the Leave supporters beating Remain by 51.9 percent to 48.1 percent. The slight victory is likely to have opened a Pandora's box in Europe, pushing the continent into chaos.

A lose-lose situation is already emerging. The British pound fell 10 percent at one stage on Friday. The euro fell 3 percent.

David Cameron announced he would quit as British prime minister. Scotland may start a new independence referendum.

There are also calls in the Netherlands and France for a similar exit referendum.

The UK is just over 300 years old. In its heyday it was known as an empire on which the sun never set, with colonies all over the world (Britain was the former imperial power - whose military forces repeatedly invaded China in the 19th century - and the rising Asian giant, now the world's second-largest economy)

Now it is stepping back to where it was.

Britons are already showing a losing mind-set. They may become citizens of a nation that prefers to shut itself from the outside world.

The Leave advocates had been calculating whether their pensions were guaranteed or migrants were encroaching on their neighborhood. Bigger topics such as the country's aspirations or its global strategy were overlooked.

Britain has been a special member of the EU. It has not joined the eurozone, nor adopted the Schengen agreement. France and Germany have been resentful of Britain's half-hearted presence in the EU. In a sense, Britain's exit may be a relief for both sides.

However, such relief is in effect a major setback for European integration. Such setbacks don't happen in good times. Britain's exit reflects the general decline of Europe.

The world's center used to lie on the two sides of the Atlantic. Now the focus has shifted to the Pacific. East Asia has witnessed decades of high-speed growth and prosperity. Europe stays where it was, becoming the world's center of museums and tourist destinations. Unfortunately, Europe is also close to the chaotic Middle East. Waves of refugees flood into Europe, coinciding with increasing terrorist attacks.

Europe is not able to resolve the problems it is facing. The public are confused and disappointed and extremism is steading.

The Leave grouping beat out the Remain supporters by only 4 percentage points, which could have resulted from some temporary reasons. Is it really fair to decide Britain's future this way?

Such changes will benefit the US, which will lose a strong rival in terms of the dominance of its currency. Politically it will be easier for the US to influence Europe.

There is no direct political impact on Russia and China. For the Chinese people, who are at a critical time to learn about globalization and democracy, they will continue to watch the consequence of Britain's embracing of a "democratic" referendum. - Global Times.

No negative impact from UK vote for Malaysia



Britain is still a hugely important economy in Europe, says Liew

KUALA LUMPUR : Malaysian property firms with developments in the United Kingdom say that their ventures will not be negatively impacted as a result of the June 23 referendum whereby British citizens voted to exit the European Union.

Eco World International Bhd executive vice-chairman Tan Sri Liew Kee Sin said that while the decisive win by the Brexit camp was unexpected, the group is optimistic that the results hold a silver lining going forward.

“Now that the results of the EU referendum are known, the long uncertainty which has caused many investors to hold back on decision making is finally over. Britain is still a hugely important economy in Europe with highly principled, professional and competent leaders,” he said in a statement.

Liew added that he has every confidence that the British government will do their utmost to take proactive measures to assuage post-Brexit concerns and move the UK forward on every front.

London’s position as a prime destination for global real estate investment is unlikely to change given that many of the fundamental drivers of demand are still intact. Chief among them are transparency of laws, sesurity and ease of ownership, and shortage of supply, among others, Liew noted.

EWI, which is en route to listing on Bursa Malaysia, has three projects in London, namely the London City Island Phase 2 in East London, Embassy Gardens in Nine Elms, and Wardian London facing the Canary Wharf. All three were launched last year.

“For EWI specifically, it should be noted that through our proposed initial public offering we will be raising equity in ringgit. Now that the sterling has dropped it means that the cost we have to inject into the UK to pay for the developments there will be lower,” he points out.

Meanwhile, in a statement reacting to the results of the UK referendum, Sime Darby Bhd, which is undertaking the Battersea Power Station project has reiterated its long term commitment to the venture.

“The results of the referendum is not expected to impact the viability of the project.

“We are confident the iconic development will continue to generate interest in the longer term and that London will continue to remain a key investment destination and financial centre,” it said.

Sime Darby has a 40% stake in Battersea. The other joint venture partners are SP Setia Bhd and the Employees Provident Fund with 40% and 20% respectively.

A research note by MIDF Research said global capital markets may take some time to adjust to the Brexit vote which could have adverse repercussions on businesses.

Its group managing director Datuk Mohd Najib Abdullah said that as a result of Brexit, the world is moving into a period of elevated uncertainty, with risk appetite plunging in a flight to safety and security.

As the UK is an important market for Malaysian exporters and an important source of foreign direct investments, any economic malaise from Europe will inevitably affect Malaysia in the longer term, Aboth directly and indirectly, MIDF said. - By afiq Isa The Star

Windfall for Malaysian parents of children studying in Britain 


Parents with children studying in Britain are heaving a sigh of relief because the pound has weakened following Brexit.

The ringgit closed at RM5.66 to the pound yesterday, a drop of 4.67% compared to a month ago when it was RM6.03.

Parent Action Group for Education Malaysia chairman Datin Noor Azimah Abdul Rahman said tuition fees would be more affordable.

“For parents who couldn’t afford it initially, they may change their minds now,” she said when contacted.

She added that one should look at the positive instead of focusing on the negative implications.

A parent, who asked to be identified only as Auntie Chris, has a son studying biotechnology at Imperial College London, and said: “We are liquidating our accounts to take advantage of the drop in the pound, which is great news.”

She said her son, who is in his second year, planned to pursue his master’s in Britain after graduation but had put his plan on hold due to the strong pound.

“We asked him to work first, after graduating, due to the financial constraints but with the pound dropping significantly, going for his master’s may be back on the table,” she said.

Another parent, Azura Abdullah, said she did not expect her son’s tuition fees to increase any time soon.

Her son is a second-year law student at University of Exeter.

Some parents were fearful of Britain’s exit from the European Union.

Despite the weakened pound, Azura felt the price of goods may increase in the short term because Britain could no longer leverage on EU trade deals, which could increase the cost of living there for her son.

“But we hope to offset this with the lower currency rate as the pound will devalue in the short to middle term,” Azura added.

Auntie Chris said she was worried that Britain’s decision may affect job prospects for Malaysians over there.

“If Britain goes into recession, it will affect job prospects for new graduates,” she said, adding that immigration controls may also be tightened following Brexit.

Chief executive officer and provost of the University of Nottingham Malaysia campus Prof Christine Ennew said parents should expect cheaper education.

“Students should be able to do more with their money in the UK, at least in the short term, say over the next couple of years,” she said.

Prof Ennew admitted that there could be some concerns over the issuing of student visas.

“However, Boris Johnson, one of the leading figures in the Brexit camp, has always been very supportive of international students and this should give some reassurance that the visa regime will not necessarily become harder for students from outside the EU,” she said.

She added that it was likely that EU students would be more affected than those from outside the union. - The Star

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