Bitcoin Price Technical Analysis for 20/01/2016 – Aiming for Next Area of Interest?

Bitcoin Price Key Highlights

  • Bitcoin price is still on a decline on the longer-term time frames, with downside momentum building up after its recent breaks below a reversal and consolidation pattern.
  • Price might have its sights set on the next long-term area of interest at the $300 level, which coincides with a former resistance level.
  • Volatility is picking up, as evidenced by the technical indicators.

Bitcoin price seems poised for more declines, putting it on track towards testing a major support zone visible on the longer-term time frames.

Technical Signals

The short-term 20 SMA is crossing below the longer-term 50 SMA, confirming that a downtrend is taking place and that selling pressure could pick up. Price recently made a quick bounce off a nearby support zone, as profit-taking took place, but it looks like bears are ready to take control once more.

However, stochastic is already in the oversold region, which means that sellers are still exhausted. Once this oscillator starts moving higher, bullish pressure could stay in play and pave the way for a larger correction, possibly until the $400 mark.

bitcoin price, btcusd trading, bitcoin technical analysis

At the moment, the bottom of the Bollinger Bands is holding as support as well, although bitcoin price is attempting to break lower. If a bounce takes place, though, bitcoin price could retreat to the moving averages around $420 or up to the top of the Bollinger Bands just past $450 and the previous highs near $465.

Current Market Sentiment

At the moment, risk appetite appears to be waning once more, as the IMF recently decided to lower their global growth forecasts for 2016 and 2017. The institution highlighted the risks stemming from the slowdown in China and the slump in commodity prices, particularly to emerging economies.

With that, the safe-haven US dollar is reigning supreme against most of its counterparts, particularly the riskier assets like bitcoin and other cryptocurrencies. This supports the idea of further losses for bitcoin price.

Short-Term Perspective

Zooming into a short-term time frame reveals that bitcoin price may be poised for yet another strong breakout. The Bollinger Bands are getting tighter, indicating that buyers and sellers are still fighting to pick a direction.

bitcoin price, btcusd, bitcoin technical analysis

Stochastic is just moving down from the overbought region, which suggests that bearish momentum is also gaining ground from this perspective as well. Near-term resistance is located at the top of the bands and the moving averages while a close below support at the $350-360 levels could be indicative of further losses.

Catalysts for stronger moves today include the release of UK jobs data, as weak readings could reinforce the BOE’s downbeat outlook and result to more risk-off flows away from bitcoin. Aside from that, the US CPI and building permits data could also influence market sentiment and US dollar demand.

Strong CPI readings could revive hopes of a March Fed rate hike, which could mean higher demand for the US dollar and another set of losses for bitcoin price, while weak data could allow a larger correction to take place.

Intraday support level – $360

Intraday resistance level – $400

Charts from Bitstamp, courtesy of CryptoCompare.com

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Chinese Government Warns Bitcoin Investors About MMM Global Ponzi Scheme

Bitcoin has worn many different labels throughout the years, ranging from “fake internet money” to ‘ponzi scheme” and various other not-so-nice things. The Chinese government warned the public about the MMM Global Ponzi scheme that accepts Bitcoin payments, in an attempt to ensure consumer funds is kept safe from harm at all times. Such risky investments should be avoided at all costs, and this warning is a positive sign for Bitcoin itself.

Also read: Bitalo Simplifies Bitcoin Earning, Launches Multi-Service Platform

The MMM Global Ponzi Scheme and Bitcoin

Anyone who is active on social media may have noticed a strong influx of posts related to this new “money making program” called MMM Global. As the name suggest, this is a scheme through which users have to complete daily tasks to earn money, and they will be paid a small percentage of their referral’s earnings as well. Due to this incentive, the MMM Global project has seen tremendous international growth, luring in unsuspecting investors hoping to make a nice profit.

This warning issued by the Chinese government relates to the Chinese arm of MMM Global, and its founder, Sergei Mavrodi. Even though this marketing scheme is actively looking for investments in China, the company itself is registered in Russia. As a result, Chinese police and government officials have no jurisdiction over the website, and they can only issue stark warnings about the risks associated with MMM Global.

MMM Global has the look and feel of a pure pyramid scheme, as it will only keep paying out for as long as new member funds keep flowing in. Under Chinese law, these types of pyramid schemes are prohibited, although there is very little officials can do about it. Just a few days ago, the Chinese government announced how they are looking into an undisclosed amount of funds funneled from China to a different country through the MMM Global scheme.

As is usually the case with online pyramid schemes such as MMM Global, there are a lot of people who fall for these impossible promises. In fact, all it takes for users to start earning money is to complete one task per day. This does not even require MMM Global users to make a purchase, as they only need to post on social media or various other websites about their experiences with the program, and relevant hashtags.

Keeping in mind how MMM Global operates in 107 countries around the world, it comes as no surprise over 130 million people have invested in this pyramid scheme so far.  Regardless of how small or large, the investment amounts are, there is no legitimate way for users to earn up to 100% additional revenue in thirty days by completing one web task per day.

Some people might be wondering how Bitcoin ties into all of this, and the answer is very simple: MMM Global accepts Bitcoin payments for deposits. Anyone in the world can join this pyramid scheme by making a Bitcoin deposit of US$10 or more. Withdrawing funds can be done in Bitcoin as well, although the system makes mention of a bank account or credit card only. Bitcoin users are advised to steer away from this platform, as the chances of getting one’s money back are slim to none.

MMM Global Issues Since December

Speaking of withdrawals, MMM Global has been facing some issues throughout December 2015 and January 2016 so far. Several investor accounts have been frozen throughout December, and all previous withdrawal requests had been canceled without prior warning. According to the explanation given by the company, the interest rates would be calculated differently from that point forward.

Furthermore, Caixin reports how several investors were still not able to log into their accounts as of yesterday, causing quite a bit of panic. While it is clear for anyone to see MMM Global is a Ponzi scheme waiting to collapse any moment now, a lot of people are still looking for ways to get their funds out before that happens.

These types of Ponzi schemes are running rampant in China for many years now, but law enforcement can offer very little help regarding these matters. As most of these companies are not even registered in China, there is nothing that can be done when an investor loses his or her funds. Especially not where Bitcoin is concerned, as the digital currency operates beyond the control of banks and governments all over the world.

No Negative Impact on Bitcoin

Some people might see this warning by the Chinese government as another way to downplay the success of Bitcoin. But at the same time, the government is warning people about this Ponzi scheme, which is taking deposits in fiat currency, credit card, or Bitcoin, without as much as mentioning the latter.

Depending on whom you pose the question to, some people might argue the recent Bitcoin price increase was due to a lot of people buying into MMM Global with Bitcoin. Although there is no evidence whatsoever to back that claim, it is a possibility nonetheless. If this were to be the case, it would have no effect on Bitcoin itself as the MMM Global pyramid scheme is not openly advertising their acceptance of the digital currency.

Source: Caixin

Image Credits: MMM Global

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Dutch Authorities Arrest 10 Suspects using Bitcoin for Illicit Goods

The investigative department of the tax authorities FIOD stormed into 15 location in the Netherlands to arrest 10 suspects in a fully launched investigation to shut down criminals using Bitcoin to purchase illicit goods over the Dark Web.

The FIOD raided addresses in Rotterdam, Zoetermeer, Almere, Dordrecht, Zaandijk, Schiedam, s-Gravenhage and Putten. The authorities already processed the seizure of luxury items including expensive cars, cash, bank accounts and raw materials utilized to manufacture and distribute ecstasy.

According to the statement of the prosecutor, an increasing number of cyber criminals and drug traders have been using the Dark Web and bitcoin to settle trades of illegal items such as weapons, drugs, and banned substances.

The prosecutor further emphasized that the Dark Web does not guarantee anonymity and that is possible for the FIOD to track down the identities of traders online.

“However, the investigation showed that the Dark Web does not guarantee anonymity and that the FIOD can also do the detective work. FIOD and Public Prosecutor will share their findings with the Authority for Financial Markets and the Dutch Banking Association,” said the prosecutor.

Misconception

There has always been a misconception amongst cyber criminals and cryptocurrency enthusiasts that Bitcoin is anonymous and cannot be tracked. However, Bitcoin by nature is transparent and its transactions can be tracked using analytics tools or blockchain explorers.

For example, in 2012, popular bitcoin trading platform Bitcoinica created by Zhou Tong lost millions of dollars worth of bitcoin in a series of hacking attacks.

After the incident, Zhou Tong immediately announced that he will discontinue all bitcoin-related projects and told its users on a bitcoin forum that he was grateful for the short term success his “experimental project” Bitcoinica was able to accomplish.

“It feels great to have an experimental project become the “best thing since sliced bread”, and run one of the most profitable businesses in a new economy. Bitcoinica has a total historical revenue equivalent to about 0.67% of the whole Bitcoin economy. Not even Apple can match this record in the real world economies,” Zhou announced in 2012.

However, in 2014, Zhou co-founded and launched an Australia-based bitcoin startup Coinjar, introducing various merchant-focused payment and exchange solutions. Since then, Zhou Tong has been heavily criticized for his wrongdoings and was deemed responsible for the theft of bitcoins in his previous venture, Bitcoinica.

On August 16, a new piece of evidence surfaced which provided links of suspicious transactions to Zhou Tong.

According to an analysis made on Blockseer, 40,000 bitcoin stolen from the Bitcoinica wallet which was held by Mt. Gox had multiple outputs which were sent to different addresses. The analysis followed the outputs of these addresses closely. By tracking down the addresses Zhou Tong mentioned on Bitcointalk, the analysis linked the 10,000 bitcoins out of the 40,000 bitcoin stolen from bitcoinica, which were supposedly meant to be used to reimburse the users were actually linked back to Zhou Tong’s personal wallet.

The analyst also published a piece of evidence which linked some transactions from the Bitcoinica theft to current Bitcoin Reddit moderator and the founder of Bitcointalk.org, Theymos. According to the, 15,000 bitcoins out of the total 40,000 bitcoins sent from the original wallet of Bitcoinica was made up of additional outlets.

One of the address or outlets of the transactions Zhou Tong used held 2000 bitcoins. Using that address, Tong sent 80 bitcoins to Theymos and the rest himself. The analyst supports his claim that the bitcoins were sent to Theymos because they were spent by the account of Theymos at Bitcointalk.

The analyst concluded his findings saying that Zhou Tong stole a few bitcoins from his own platform. Like this, Bitcoin transactions can be easily traced with recently developed innovative blockchain tools and technologies.

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HSBC Nudge App Wants To Control Consumer Spending While Bitcoin Gives Complete Financial Freedom

Whenever a major bank advises its customers to spend less and save more, there is always a hidden meaning behind the message. In the case of HSBC, they intend to make consumers more aware of their spending habits and reduce future debts through the Nudge app. But at the same time, money stored in a savings account allows the bank to generate more profit and puts consumer funds at risk. Bitcoin, on the other hand, gives consumers complete financial freedom and does not allow for anyone to create debts in a traditional sense.

HSBC Launches Nudge App To Reduce Consumer Spending

Reading media headlines regarding banks these days can be a source of a lot of confusion and controversy. On the one hand, the banks want consumers to spend more and boost economic growth in just about every part of the world. At the same time, these institutions advise investors to pull their funds out of volatile assets and foreign currencies and either buy bonds or store money in their bank account.

HSBC has taken things one step further by launching a new mobile app, called Nudge. The goal of this application is to reduce consumer spending and get them to save more funds for a rainy day. On paper, there is nothing wrong with this concept, were it not for the profits banks stand to gain from funds “resting” in savings accounts.

All of the funds stored in a savings account gives the bank an extra opportunity to lend that money to other financial players in exchange for hefty profits. While there is such a thing as a ”bank deposit guarantee”, very few people will ever recoup their full amount of money once the institution goes bankrupt. Needless to say, more funds stored in a savings account is not doing the consumer any favor, and only the bank stands to gain from this course of action.

That being said, the Nudge app presents a convenient way for consumers to keep an eye on their spending habits. Furthermore, users will be able to keep track of their income on their mobile devices, and see how both balances correlate over time. Even though Nudge is not available to the public just yet, a select group of 500 people is currently testing the application and providing feedback.

Despite best efforts by HSBC, the Nudge app might not be as useful for some bank customers compared to others. There is a certain percentage of the population who would benefit from this concept, though, and reap the rewards by creating less debt to pay off in the long run. Overdraft charges need to be avoided by consumers at all costs, and various banks have started to take action by texting customers regarding these impending charges.

Bitcoin Grants Financial Freedom With No Room For Debt

Unlike the traditional financial world, popular digital currency Bitcoin offers all of its users complete financial control and freedom at any given time. By putting the end user in full control of their funds – without intermediate oversight – Bitcoin is all about using funds when people want, where people, on any device people want.

But there is another major difference between banks and Bitcoin, and that is how the latter doesn’t allow consumers do go into debt or be charged overdraft fees. Once a person’s Bitcoin wallet is empty, there is no option to spend more funds until they acquire more bitcoins. Plus, a Bitcoin user can never spend more than their wallet balance either.

Looking at things from a consumer spending behavior point of view, Bitcoin is a clear example of how people can be put in full control of their finances, without risking debt. In the traditional financial ecosystem, there is no alternative that offers both freedom and prevents debt at the same time. The Nudge app is an intermediary tool on top of an intermediary network to give banks more control over users’ finances.

Source: Telegraph UK

Image Source: HSBC

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Bitcoin Price Tight; Big Move On

Yesterday we went into quite a bit of depth concerning our interpretation of the action in the bitcoin price so far this week. We noted that the action represented a consolidation of bullish and bearish sentiment, and that this consolidation could act as a sort of winding up before a big move. Action has now matured throughout last night’s Asian session, and we are mid way through today’s European session, and things haven’t (as yet) worked out according to our thesis. We did get a little bit of movement, and our range support (which we predefined as 375.75 in yesterday’s analysis) has been tested a few times, but our strategy has just been chopped around. As such, we haven’t been able to draw a profit from the bitcoin market overnight, and we are going to switch up our approach fro this afternoon and, beyond, in to this evenings Asian session.

To reiterate, the action we are seeing at the moment has come as a result of the fundamental uncertainty surrounding bitcoin’s viability and, in turn future. Things like this happen across all asset markets, and chance are we will be looking back thinking the whole industry overreacted by the end of this month. At that point we will probably return to the intraday volatility we are used to, and our breakout and intararange strategies will be more effective.

Today, however, and as mentioned, we’re going to switch things up. How? By tightening our levels right up and playing a pure scalp breakout strategy. Tight targets, even tighter stops, and small, sharp positions. At its core, our scalp strategy is no different to our standard breakout strategy – only the risk reward differs.

So, with this said, let’s get to our key levels and defined today’s range. As ever, take a quick look at the chart below to get an idea of the levels in question.

Screen Shot 2016-01-20 at 13.58.59

As you can see from the chart, the levels we are watching today are in term support at 372.51 to the downside and 378.70 to the upside. The former was tested twice overnight and held firm, while the latter is a level that has been tested on numerous occasions over the last week or so, and has – just as has its support counterpart – held firm.

We’ve got about a six dollar range to play with here, so intarrange is not really an option. Instead, we are going to focus purely on our breakout strategy with a – as mentioned- scalp target.

So, the upside first. If we get a break and a close above in term resistance it will give us an opportunity to enter a long position towards an initial upside target of 387 flat. A stop loss will define our risk, and somewhere around 376 looks attractive.

Looking the other way, if the bitcoin price closes below in term support on the intraday chart we will look to enter short towards a downside target of 368. Again this is a pretty tight target, so a tight stop is necessary. We’re looking at circa 374 on this one.

Charts courtesy of Trading View

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Best Bitcoin Games Guarantees Fair and Fresh Casino Information and Reviews

It might be their first attempt at leading a casino review website, but the creators of Best Bitcoin Games (BBG) are very much clear about how they want to remain simple and better in their approach.

The Bitcoin games directory, which lists and reviews gaming websites from the Bitcoin/altcoin space –  online casinos, slots, dice, poker, roulette, betting and other games, focuses principally on protecting its visitors from online swindlers. It has particularly stressed on one particular aspect of reviewing online casinos – the community’s response. Often players are found to be misled by reading outdated and biased reviews: Best Bitcoin Games ensures them with an up-to-date and genuine criticism of these websites.

“We will take care of is protection of our visitors: we will be active in crypto community forums, on social networks, and we will read all messages sent to us – especially taking care of community warnings if some of listed websites are suspicious and people have their doubts about them,” the casino critic added.

“If such websites are proven to be misleading, cheating or unfair in any other way, we will remove them (or even better – place them in separate category “approach with care”?).”

BBG aims to be an all-in-all people’s website. In addition to listing the fairest Bitcoin casino reviews, the website plans to add additional features that engage visitors into providing their own views and scores for the listed Bitcoin casinos. In the near future, BBG’s priority will be spreading its presence in public forums and social networks.

The website, at the same time, will also provide a reliable platform for Bitcoin gaming websites to showcase their new offers and services. It has already listed a number of leading casinos and their reviews, including LimoPlay, RioBet, Betchain Casino, and many others.

Besides their website with Bitcoin game directory and reviews, BBG are also active on their Twitter profile where they post about the most attractive bonuses, free spins and occasional raffles where players can win free Bitcoins.

Website: www.bestbitcoingames.com

Twitter: @Bitcoin_Games

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China Set to Develop its Own Digital Currency

Over the past few hours, the bitcoin price has gained close to 10%. At current levels, it is now trading at a 20% premium to the lows seen over the weekend – lows carved out in the wake of Hearn’s resignation announcement. These gains aren’t purely speculative. They represent a bolstering of industry support, and a reversal in general sentiment surrounding the cryptocurrency space. What drove this reversal? In a word, China.

The People’s Bank of China (PBOC) just released an announcement detailing the topics of discussion, and the conclusions, of its latest digital currency meet up – the PBOC Digital Currency Seminar in Beijing. The meeting took place today (well, last night for those of us in the West) and the report hit press just before 19:30 China Standard Time (CST). With a bitcoin price hike coming shortly after the release, that the contents of the report are a positive development for the bitcoin sphere goes without saying. Let’s have a look at the specifics.

Back in 2014, the PBOC set up a special advisory board with one primary remit – research the implications of digital currency for the Chinese economic system. In early 2015, the bank focused this remit into a number of specific research areas, including legal issues, distribution, the underlying framework and technology, and initial issuance. The latest seminar gave the research team the opportunity to present their findings. The outcome? That the PBOC (as a quick note, for those not familiar with the PBOC, it is China’s central bank – think the Federal Reserve in the US or the ECB in Europe) wants to issue its own digital currency with the macro goal of replacing fiat Yuan.

The PBOC justifies this decision with a variety of reasons. First, it will eliminate the cost of fiat circulation. Exactly what this cost is in China is unclear – the nation is notoriously cagey with these kind of numbers – but to get an idea we can compare with the equivalent cost in the US, which comes in at close to $500 million a year for coins and a little over $800 million for paper notes. Second, and assuming effective implementation, it will virtually eliminate money laundering, tax evasion and forgery. Finally, it will promote settlement efficiency and, in turn, reduce the cost to all parties involved in any transaction.

That’s where things stand at the moment. The PBOC has now tasked its research team with putting together a plan to cover design, implementation and maintenance. In short, the bank has decided it is economically viable, and is now moving forward with execution.

It’s worth pointing out that this development far from guarantees positive implications in the bitcoin space. That China is utilizing bitcoin’s underlying principles doesn’t mean it is embracing bitcoin – just the digital currency concept. Regardless, this represents the first development on a macroeconomic scale that validates the concept, and thus has collateral benefit for bitcoin; collateral benefit that is driving the current gains in its per coin price.

We’ve not got any news on exactly when the PBOC plans to bring its digital currency to market, but we’ll monitor any developments and let you know as things progress.

You can read the original seminar report announcement here.

 

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Russia to Host Bitcoin Conference in April

Moscow-based exhibition company Smile-Expo is all set to host a Bitcoin Conference in Russia, an event that will attract participants from government, bank, legal, FinTech and payment sector. The upcoming event aims to discuss the future of Bitcoin and blockchain technology in Russia through constructive dialogues and debates.

Russia perhaps is the least friendly country for Bitcoin thanks to its biased announcements against the digital currency in recent times. But the digital currency’s growing popularity among the international circuits have always been a hot topic among the country’s leading finance and tech institutions.

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As Smile-Expo noted in its press document, a number of leading Russian companies, which have banking partners outside the country, have always expressed their interests in the blockchain technology. Like their counterparts in western world, they too believe that the technology is able to simplify remittance and record-keeping methods. An excerpt:

“The financial industry experts were able to see the potential of blockchain technology as a decentralized platform for various social projects. It is worth noting that the authorities are not so categorical in their statements with respect to the crypto-systems.”

Smile-Expo said it believes Bitcoin Conference Russia will utilize people’s interest in Bitcoin and blockchain to create a constructive atmosphere for discussion. It also presented the key topics that will going to be discussed in the upcoming conference. They are:

  • block chain in banking system: why is it disruptive?
  • what to expect from the authorities when it comes to Bitcoin?
  • alternative application of blockchain technology (payment systems, retail chains, supply chains etc.)
  • cyber crime: how to avoid fraud?
  • real cases: how Russian companies are working with Bitcoin and block chain technologies

Bitcoin Conference Russia is scheduled to take place on April 8th 2016 at Digital October, Moscow, Bersenevskaya naberezhnaya, 6, str. 3.

For more information, please visit this link.

Image Source: Smile-Expo

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Dragons.tl: Zodiac Fire Replaces Slot Machines and Its Really Fun

Dragons.tl has changed the dynamics of Bitcoin casino community with its range of innovative and fun-filled online games. The MMORPG platform is proudly unusual and promises an altogether distinctive experience to players when it comes to offering interactive betting games — the ones with higher Bitcoin payouts.

Zodiac Fire also joins the list of Dragons.tl’s most innovative and attractive games. The game, according to the casino’s official guide page, features a brilliant pyrotechnic display of five different zodiac elements: rooster, monkey, sheep, snake, and dragon. When a player places his bet, it launches five fireworks into the sky that illuminates the virtual town of Dragons.tl. And if three or more elements match, he gets attractive returns.

“To play, you bet anywhere from 100 BTM to 900 BTM which launches 5 fireworks that represent the various zodiac elements,” the casino elaborated. “To win, you must get a certain combination of elements. For instance if you get 4 shee you win 8 times your bet (e.g. 800 BTM for a 100 BTM bet).”

The casino added: “The current betting levels and payouts for the zodiac fire game on Zhifu are shown on the right. Because it is a luck game, there are no “tips” on how to play zodiac fire. You bet… you pray… and you either win or lose!”

One of the best — and perhaps the smartest — things about Dragons.tl’s Zodiac Fire is its ability to imitate the traditional slot machine concept such beautifully. Hats off to the creators who were able to utilize the widely-loved concept into a much-more attractive format.

Dragons.tl meanwhile ensures 100% security of players’ Bitcoin funds.

About Dragons.tl:

Dragons.tl is unlike any other online casino game in the market. So there might be a learning curve for those not used to navigating an MMORPG. Since Dragon’s Tale is an immensely social game, simply asking other players or taking on a mentor, might help guide you to the answer faster.

To know more about Dragons.tl and its services, please visit here.

The opinions expressed in this article do not represent the views of NewsBTC or any of its team members.  NewsBTC is not responsible for the accuracy of any of the information supplied in Sponsored Stories such as this one. 

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Bitcoin Offers Better Rewards Than A Chromecast For Android Pay Users

There is a lot of excitement in the world of payments these days, especially now that so many companies are focusing their attention on the mobile space. With so many consumers owning a mobile device that has Internet connection capabilities, contactless payments are evolving to this new medium. Android Pay is Google’s answer to mobile payments, and users can now get a free Chromecast when using the option. Bitcoin, on the other hand, offers proper incentives and rewards that are not tangible.

Get A Chromecast For Paying With Android Pay

In the mobile payment sector, a war is going on between manufacturers and operating system creators. Everyone wants to be the top payment method for mobile users around the world, and Google has entered the arena by releasing Android Pay to US customers. Keeping in mind how Android is the largest mobile operating system in the world, there is a large potential customer base for this feature.

But Google wouldn’t be Google without a proper marketing strategy for their new mobile payment solution. Under the Tap 10 rules and guidelines, anyone who uses Android Pay in the US and other eligible territories will be rewarded for doing so. As a reward, they can either choose the one-time free Google Music code for a track of their choice, of obtaining a Chromecast. Participants must be aged 13 or older and reside in the US to be eligible for either reward.

For those Android Pay users who want to obtain a free Chromecast, they will need to create or own a Google Payments account. This step is required to redeem the gift code Google will send out, which can then be redeemed with the purchase of a Chromecast at participating Google Stores. Keeping in mind how this device costs US$35, the offer by Google is a nice gesture, and will help them tie users into their ecosystem even further.

Giving customers a physical reward for trying out a new payment option is a smart move by Google. Unlike Apple Pay – where customers got no reward for testing out the payment method other than a potential double-charge – Android Pay could be getting a lot of attention in the US in the next months. With the offers ending on February 29th, the question then becomes how many people will keep using Android Pay once they received their rewards.

This brings us to the major problem of mobile payments: they are initially greeted with excitement, yet usage of the payment options drops off after a few months. Most consumers simply forget the option is even there in the first place, or it turns out to be more of a hassle than they bargained for. Making a good first impression is critical, but in this day and age, it is all about making a lasting impression.

Bitcoin Offers Users Lasting Rewards

Rewards can come in many different forms, and receiving a code for a free item or song is a good way to incentivize users to give Android Pay a try in the US. At the same time, Bitcoin has been providing its users with non-tangible rewards over the past seven years, which have done more good in the long run.

For the consumer and merchant, convenience and low transaction costs are of the utmost importance. Whether or not Android Pay will be able to provide this service, remains to be seen, as users will need to link a credit card to make purchases. Unfortunately for them, credit card transactions are subject to hefty fees, ranging from 1% to 3.5% per transaction.

Bitcoin transactions, on the other hand, cost far less for the retailer. In fact, all of the transaction fees are paid for by the sender, not the recipient. Plus, merchants can then convert the Bitcoin transfer to fiat currency if they desire to do so, or just keep the funds in Bitcoin and convert it a later date. Plus, Bitcoin is the only global currency in existence today, whereas mobile payments have to tread carefully regarding jurisdiction and regulation.

In the end, Android Pay will not be a major competitor for Bitcoin in its current, despite offering tangible rewards to its users. With such a limited availability right now, there is very little reason to sue Android Pay other than for US residents to get a free Chromecast. Whether or not this offer will be available to international customers in the future, remains unknown. Bitcoin’s benefits are available to everyone on this planet and make a lasting impression.

Source: Android

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