Category Archives: china

The China Effect on Blockchains and Cryptocurrencies Future

In the past 3 weeks, news that the Chinese government was cracking down on ICOs and forcing cryptocurrency exchanges to halt trading has sent the markets tanking.

Trading volumes on the cryptocurrency exchanges are down significantly, and the pull-back in activity is not just from the Chinese Yuan and exchanges, but across all currencies and global exchanges. (see the following 2 charts, from http://data.bitcoinity.org/)

We can analyse what we know and don’t know, and give some context to these developments.

First, let us be reminded that Chinese regulators and authorities decisions and policy statements are aimed at the Chinese market. They are not directives for the rest of the world to follow. China’s government scope is at the national level.

Second, the timing of this crackdown may be related to the upcoming 19th National Congress of the Communist Party of China (CPP), scheduled to start on Oct 18th 2017 in Beijing. That is one of the most important meetings in China’s political calendar, and it has been widely reported that the latest announcements are politically motivated muscle-flexing by the CPP.

We know the following:

  • Capital flight via cryptocurrency was real, and the Chinese authorities didn’t like that. It wasn’t clear to them where the billions of dollars in crypto gains were going, past the exchanges.
  • The KYC/AML practices of Chinese exchanges were not all up to par with the rest of the world. Previously, many exchanges didn’t require stringent KYC, until AML was strictly mandated by the People’s Bank of China in January 2017.
  • The ICOmania had reached another dimension in China with over zealous promoters and real scams that took place. Although the pace of ICOs has been strong outside of China, there were hundreds of ICOs inside the country that we didn’t even know about.

So it was expected that some kind of order was overdue. The political coincidence made the moons align more squarely for that perfect storm to take hold.

Despite this turmoil, the global fundamentals behind blockchain, cryptocurrency and ICOs are intact. As much as one would like to think that what China does doesn’t matter, the reality is that when China sneezes at crypto, the rest of the world catches the cold.

For one, Chinese partcipants represent 30–35% of many ICOs, so their absence has been felt, even if the ban doesn’t officially affect non-China ICOs. Some ICOs who had Chinese investors on their radar (via KYC pre-registrations or direct contacts), have experienced a downturn in money raised from that specific region.

Second, the share of Chinese exchanges on total cryptocurrency volumes used to be close to 45–50% before the ban, and now estimated to have dwindled to perhaps about 15%. Some Chinese users can still get away with trading by using VPNs and accessing external exchanges.

With all that backdrop, let us be reminded that China has also previously banned Facebook and Google, but those companies continued to thrive, while China promoted their own versions of these services (Weibo, RenRen, Baidu Tieba). Furthermore, China has its own Twitter (Weibo), YouTube (Youku Tudou), Yelp (Dianping), Tinder (Momo), Apple (Xiaomi), Uber (Didi Kuaidi), PayPal (Alipay), eBay (Taobao), and other home-grown social media giants like WeChat and Tencent QQ.

You get the idea? So, why not expect China to have their own cryptocurrency too, not based on Ethereum or Bitcoin, but based on their own currency, the Chinese Yuan?

That brings me to the next big rumor coming out of China, which is the possibility of issuing their own crypto Yuan. This shouldn’t come as a surprise given that reports that China’s Central Bank has been looking at the digital currency have been around for more than 1.5 years.

What remains unknown is if this current hiccup will affect the Chinese Bitcoin miners supremacy, which stands at about 80–85% of total market share. So far, miners have not been affected, but I am sure they are worried. Several questions arise:

  • Will the Chinese government require Bitcoin miners to go through the central switch and have their transactions flagged? That would certainly affect the competitive speeds required for transaction mining.
  • Will Chinese miners start to diversify their operations outside of China? One of China’s largest miners, Bitmain has already started activities and shown interest outside of China.
  • Will other countries or organizations jump on this opportunity and start to increase their Bitcoin mining capabilities? Some candidates include Russia, Iceland and Canada for countries, and why not the large multinational banks, Amazon or Google for that matter?

Going forward, my predictions on China are:

  1. China will update their regulation on crypto-exchanges and ICOs after the Party’s convention. Given the current mess, it was easier to wipe the slate clean, and start from that point forward with new rules.
  2. We will see a Crypto Yuan emerge, but with some peculiar parameters around its creation. It won’t be just like another free floating cryptocurrency, and it may not have all the properties of a cryptocurrency, but maybe only selective ones. Even with some restrictions, that move will be a boon for the crypto-markets, as it will serve to validate the future of cryptocurrencies.
  3. The Chinese share of Bitcoin mining will decrease. Some of the existing miners might be tempted to mine for the crypto Yuan, unless the government decides to monopolize (or not require) that function. Simultaneously, other parts of the world will pick-up some of the Bitcoin mining activity.

In summary, China wants control, and China will get control. That’s their default modus operandi. Crypto-Tech is no different than the Internet and Web businesses.

What happens in China doesn’t always stay in China anymore. We have not seen the last of that whale’s boat capsizing moves.

[Originally published on Startup Management]

The China Effect on Blockchains and Cryptocurrencies Future

In the past 3 weeks, news that the Chinese government was cracking down on ICOs and forcing cryptocurrency exchanges to halt trading has sent the markets tanking.

Trading volumes on the cryptocurrency exchanges are down significantly, and the pull-back in activity is not just from the Chinese Yuan and exchanges, but across all currencies and global exchanges. (see the following 2 charts, from http://data.bitcoinity.org/)

We can analyse what we know and don’t know, and give some context to these developments.

First, let us be reminded that Chinese regulators and authorities decisions and policy statements are aimed at the Chinese market. They are not directives for the rest of the world to follow. China’s government scope is at the national level.

Second, the timing of this crackdown may be related to the upcoming 19th National Congress of the Communist Party of China (CPP), scheduled to start on Oct 18th 2017 in Beijing. That is one of the most important meetings in China’s political calendar, and it has been widely reported that the latest announcements are politically motivated muscle-flexing by the CPP.

We know the following:

  • Capital flight via cryptocurrency was real, and the Chinese authorities didn’t like that. It wasn’t clear to them where the billions of dollars in crypto gains were going, past the exchanges.
  • The KYC/AML practices of Chinese exchanges were not all up to par with the rest of the world. Previously, many exchanges didn’t require stringent KYC, until AML was strictly mandated by the People’s Bank of China in January 2017.
  • The ICOmania had reached another dimension in China with over zealous promoters and real scams that took place. Although the pace of ICOs has been strong outside of China, there were hundreds of ICOs inside the country that we didn’t even know about.

So it was expected that some kind of order was overdue. The political coincidence made the moons align more squarely for that perfect storm to take hold.

Despite this turmoil, the global fundamentals behind blockchain, cryptocurrency and ICOs are intact. As much as one would like to think that what China does doesn’t matter, the reality is that when China sneezes at crypto, the rest of the world catches the cold.

For one, Chinese partcipants represent 30–35% of many ICOs, so their absence has been felt, even if the ban doesn’t officially affect non-China ICOs. Some ICOs who had Chinese investors on their radar (via KYC pre-registrations or direct contacts), have experienced a downturn in money raised from that specific region.

Second, the share of Chinese exchanges on total cryptocurrency volumes used to be close to 45–50% before the ban, and now estimated to have dwindled to perhaps about 15%. Some Chinese users can still get away with trading by using VPNs and accessing external exchanges.

With all that backdrop, let us be reminded that China has also previously banned Facebook and Google, but those companies continued to thrive, while China promoted their own versions of these services (Weibo, RenRen, Baidu Tieba). Furthermore, China has its own Twitter (Weibo), YouTube (Youku Tudou), Yelp (Dianping), Tinder (Momo), Apple (Xiaomi), Uber (Didi Kuaidi), PayPal (Alipay), eBay (Taobao), and other home-grown social media giants like WeChat and Tencent QQ.

You get the idea? So, why not expect China to have their own cryptocurrency too, not based on Ethereum or Bitcoin, but based on their own currency, the Chinese Yuan?

That brings me to the next big rumor coming out of China, which is the possibility of issuing their own crypto Yuan. This shouldn’t come as a surprise given that reports that China’s Central Bank has been looking at the digital currency have been around for more than 1.5 years.

What remains unknown is if this current hiccup will affect the Chinese Bitcoin miners supremacy, which stands at about 80–85% of total market share. So far, miners have not been affected, but I am sure they are worried. Several questions arise:

  • Will the Chinese government require Bitcoin miners to go through the central switch and have their transactions flagged? That would certainly affect the competitive speeds required for transaction mining.
  • Will Chinese miners start to diversify their operations outside of China? One of China’s largest miners, Bitmain has already started activities and shown interest outside of China.
  • Will other countries or organizations jump on this opportunity and start to increase their Bitcoin mining capabilities? Some candidates include Russia, Iceland and Canada for countries, and why not the large multinational banks, Amazon or Google for that matter?

Going forward, my predictions on China are:

  1. China will update their regulation on crypto-exchanges and ICOs after the Party’s convention. Given the current mess, it was easier to wipe the slate clean, and start from that point forward with new rules.
  2. We will see a Crypto Yuan emerge, but with some peculiar parameters around its creation. It won’t be just like another free floating cryptocurrency, and it may not have all the properties of a cryptocurrency, but maybe only selective ones. Even with some restrictions, that move will be a boon for the crypto-markets, as it will serve to validate the future of cryptocurrencies.
  3. The Chinese share of Bitcoin mining will decrease. Some of the existing miners might be tempted to mine for the crypto Yuan, unless the government decides to monopolize (or not require) that function. Simultaneously, other parts of the world will pick-up some of the Bitcoin mining activity.

In summary, China wants control, and China will get control. That’s their default modus operandi. Crypto-Tech is no different than the Internet and Web businesses.

What happens in China doesn’t always stay in China anymore. We have not seen the last of that whale’s boat capsizing moves.

[Originally published on Startup Management]

Market Summary for 24 September 2017

  • Market surged today, with C3 (+5.5%) and C10 (+5.4%) going up
  • Maximum gainer was ETH/USD (+8.6%); Minimum gainer was DASH/USD(+2.3%)l Other coins were between 3% to 7%
  • Charlie Shrem, the head of business developer at Jaxx, has claimed that China has no impact on Bitcoin and its losing relevancy in the market

Market surged today, with C3 and C10 going up by 5.5% and 5.4%.

Maximum gainer was ETH/USD which rose up 8.6%, while the minimum one was DASH/USD which only rallied 2.3%. Other coins were between 3% to 7%.

Charlie Shrem, the head of business developer at Jaxx, has claimed that China has no impact on Bitcoin because Bitcoin is about censorship free and an alternative non government controlled financial system. Governments can either create efficient regulations or losing relevance in the market.

Want to diversify your cryptocurrency portfolio? Visit our website to learn more!


Market Summary for 24 September 2017 was originally published in Cryptomover on Medium, where people are continuing the conversation by highlighting and responding to this story.

Market Summary for 24 September 2017

  • Market surged today, with C3 (+5.5%) and C10 (+5.4%) going up
  • Maximum gainer was ETH/USD (+8.6%); Minimum gainer was DASH/USD(+2.3%)l Other coins were between 3% to 7%
  • Charlie Shrem, the head of business developer at Jaxx, has claimed that China has no impact on Bitcoin and its losing relevancy in the market

Market surged today, with C3 and C10 going up by 5.5% and 5.4%.

Maximum gainer was ETH/USD which rose up 8.6%, while the minimum one was DASH/USD which only rallied 2.3%. Other coins were between 3% to 7%.

Charlie Shrem, the head of business developer at Jaxx, has claimed that China has no impact on Bitcoin because Bitcoin is about censorship free and an alternative non government controlled financial system. Governments can either create efficient regulations or losing relevance in the market.

Want to diversify your cryptocurrency portfolio? Visit our website to learn more!


Market Summary for 24 September 2017 was originally published in Cryptomover on Medium, where people are continuing the conversation by highlighting and responding to this story.

How to Trade China

I’ve been asked a lot about how to think about trading the recent shenanigans in China. While predicting the future is hard, living closer to the present is a function of information. If you are more aware of the present state of the world than other traders, you can contextualize new knowledge faster. Here’s how we think about news abstractly in Cryptocurrency.

News is like Wind

Wind gusts combine to create more powerful gales; so too does the news. While any individual piece on China is likely to be wrong on precise details, a plurality of pieces on similar subject matter suggest the direction the wind blows. In this way, it is not enough to read in-depth reporting, but also reports from many sources. Even a reputable news source should be discounted in a vacuum. A chorus of voices rings louder.

Moral: read more news sources.

Confluence of Forces

When we first started hearing rumors of Chinese exchanges closing down, we dismissed it as ludicrous since so many members of the communist party own crypto assets. When we began to hear rumors of Chinese citizens with large crypto holdings being detained at the airport, it sounded unreasonable. When reports started to surface suggesting that mining could be banned, we thought it was simply impossible for such a rule to come to pass. At the same time, upon hearing about all of these separate but interleaved events purportedly taking place, we had to trade. It turned out that all of these events, in retrospect, are obviously related to a central government crackdown on crypto due to capital control fears. China sees cryptocurrency as a method of expatriating money with little oversight and wants cash to stay at home. In this way what might at first look like a series of impossible events might just turn out to be related.

Moral: keep an open mind; unrelated events may turn out to have shared causality.

Talk to People

I start making phone calls as soon as news begins to appear. It’s always surprising to me how much information people surrender on phone calls or in person compared to email or SMS. Synchronous communication methods leave no room to hide intonation or awkward pauses which often provide more information than the words shared. I try to key into places where things feel uncomfortable. Simply put, if you ask a question and your counterparty has to sit with it for a while before they can answer, that means something. Many people make the mistake of disarming the tension before it resolves which may result in a lower quality answer.

Moral: let conversations breathe, you might be surprised by what bubbles up.

How to put this into Action

We decided to trade on the news coming out of China before the Wall Street Journal report hit because of the increase in drama in articles on the subject, the increasing number of articles with loosely correlated subject matter, and personal reports from the ground in China. While we expect that the long term prognosis for cryptocurrency may still be interesting, the short term market dynamics remain complicated. One suggestion is to only trade when you can predict the future, but that is admittedly a significant feat.

How to Trade China

I’ve been asked a lot about how to think about trading the recent shenanigans in China. While predicting the future is hard, living closer to the present is a function of information. If you are more aware of the present state of the world than other traders, you can contextualize new knowledge faster. Here’s how we think about news abstractly in Cryptocurrency.

News is like Wind

Wind gusts combine to create more powerful gales; so too does the news. While any individual piece on China is likely to be wrong on precise details, a plurality of pieces on similar subject matter suggest the direction the wind blows. In this way, it is not enough to read in-depth reporting, but also reports from many sources. Even a reputable news source should be discounted in a vacuum. A chorus of voices rings louder.

Moral: read more news sources.

Confluence of Forces

When we first started hearing rumors of Chinese exchanges closing down, we dismissed it as ludicrous since so many members of the communist party own crypto assets. When we began to hear rumors of Chinese citizens with large crypto holdings being detained at the airport, it sounded unreasonable. When reports started to surface suggesting that mining could be banned, we thought it was simply impossible for such a rule to come to pass. At the same time, upon hearing about all of these separate but interleaved events purportedly taking place, we had to trade. It turned out that all of these events, in retrospect, are obviously related to a central government crackdown on crypto due to capital control fears. China sees cryptocurrency as a method of expatriating money with little oversight and wants cash to stay at home. In this way what might at first look like a series of impossible events might just turn out to be related.

Moral: keep an open mind; unrelated events may turn out to have shared causality.

Talk to People

I start making phone calls as soon as news begins to appear. It’s always surprising to me how much information people surrender on phone calls or in person compared to email or SMS. Synchronous communication methods leave no room to hide intonation or awkward pauses which often provide more information than the words shared. I try to key into places where things feel uncomfortable. Simply put, if you ask a question and your counterparty has to sit with it for a while before they can answer, that means something. Many people make the mistake of disarming the tension before it resolves which may result in a lower quality answer.

Moral: let conversations breathe, you might be surprised by what bubbles up.

How to put this into Action

We decided to trade on the news coming out of China before the Wall Street Journal report hit because of the increase in drama in articles on the subject, the increasing number of articles with loosely correlated subject matter, and personal reports from the ground in China. While we expect that the long term prognosis for cryptocurrency may still be interesting, the short term market dynamics remain complicated. One suggestion is to only trade when you can predict the future, but that is admittedly a significant feat.

中國政府將從礦工手中拿回數位貨幣主導權?

2017/9/19 中國財聯社報導一項新聞

【比特币交易平台出海梦碎 矿机厂商谋转型】财联社19日讯,一位北京的平台人士称,监管层对平台海外业务也会进行一定的干预,“币币交易的路子也行不通了。”该人士表示,在当前的技术手段下,比特币海外交易通道确实可以被阻隔,这意味着,届时国内所有比特币转账交易都没法确认了。与此同时,矿机制造厂商也在谋求转型。“如果真的切断国内比特币交易通道的话,矿工损失最大。届时,矿工的记账和海外同步不了,就拿不到工资,等于挖不出币了。”一家大型网络企业区块链负责人表示。

這意味中國正啟用國家級的計畫來限制、管理一切區塊鍊有關的技術。

中國將從一切的源頭,"礦工"開始著手管制,首先第一步就是收回所有大型礦場,中國政府為何能有效回收呢?

係因中國大型礦場十分集中化。礦場的設立主要受制於兩項因素,電力與散熱。
1.電力:中本聰在創造比特幣時,就把挖礦時所耗費的電力視為一項資源,內含在礦工所獲得的報酬內。而在挖礦進行的運算時需耗費大量的電力,所以一個大量穩定且便宜的電力來源,對礦場來說是必須要的存在。中國的大型礦場大部分集中於四川,沿著河邊發電站建立,電力接近免費,展現了強大的競爭力。

2.散熱:由於挖礦效率化的原因,大多數都是一機多卡運算,就產生了另一個問題,容易過熱,故礦場需要建立在一個空曠、通風良好,最好是地稀人寡的地方。承上述,四川的河邊正巧也符合了這個條件,故大部份大型礦場坐落於此,並非巧合。

基於上述2點,讓中國礦工獲得了強大的武器,讓中國在比特幣的算力上,成為了世界的霸主,一直以來,中國算力站比特幣的總算力高達50%~60%,霸主兩個字,並非虛名。

而從這則新聞,以及先前關閉交易所的消息,我們能怎麼解讀官方的想法呢?

個人淺見會按照下列情況進行:

  1. 中國收回所有大型礦場,國家主導採礦權:

應該係由中央政府要求地方政府負責管理監督,並確實執行中央政策。

2. 由目前開採比特幣(BitCoin),轉為開採比特幣現金(BitCoin Cash):

(1)BCC是由中國礦工所主導分岔出來的幣種,中國在該幣種上具主導地位。
(2)日本目前暫比特幣的持有率,已接近50%,美國持有約30%,對於中國政府來說,並不是這麼樂見。此情況的產生,代表中國無法操作任意比特幣的價格,將受制於日、美。

(3)關閉中國所有比特幣算力,藉由算力關閉攻擊比特幣,藉此拉抬BCC價格。同一時間,算力損失將造成比特幣不穩,導致跌價,間接引發日、美兩國經濟損失,宣示意味濃厚。

後續發展:經過此次事件後,比特幣與BCC價格將會重新整理,個人推測,失去的比特幣算力會將由俄羅斯取代,成為比特幣新的算力,在西伯利亞的冰原裡,繼續挖礦。

China no quiere al bitcoin

La avanzada represiva de China contra la criptomoneda más popular del mundo es probable que sea permanente. A pesar que muchos creen que las nuevas regulaciones impuestas a los mercados de intercambio de bitcoin es temporal, la industria no tiene tanta esperanza y se asienta la creencia que se cerrará en el país indefinidamente.

“Veo que el control del Bitcoin como parte de este programa multi-agencia para reducir el riesgo del sector financiero se desarrollará durante meses y probablemente años”, dijo el analista Jim Stent. Por su parte, Charlie Lee creador de Litecoin, señaló que con este movimiento China ya no tiene poder sobre el mercado de las criptomonedas, lo que le permite avanzar sin mayores interrupciones.
CNBC


China no quiere al bitcoin was originally published in futurya on Medium, where people are continuing the conversation by highlighting and responding to this story.

Australia Ends Double Taxation of Bitcoin, Cryptocurrencies

Australia Ends Double Taxation of Bitcoin, Cryptocurrencies

The Australian government has finally and conclusively provided a legislative end to the double taxation of Bitcoin and other cryptocurrencies. The bill will retroactively be enforced to July 1 of this year, as had been promised earlier in the year.

to follow — http://cur.lv/16o47f

If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or send me a few of the following currencies for continuity — thanks

Bitcoin — 13bDLfhm3zVc5a9beUAqsiNFSfkdHPpjCU
Litecoin — LL7eLHeg2qHhRVMyLcnGoLfUsEmhM8AB5P
Dash — Xjn1kKvPtxYMCaYRHwqaekgZNPm4janM5h
Neo — AbUPbDUnxgS5NN3A7vgZJQAmwo8qsjy1BF
Ethereum — 0xedcc3ce5a5a42a1d81f86ec4bff0995bb696766a
Ethereum Classic — 0x28891d4dacabd78a58e2c1ac598e375c90229002

shares to friends

Australia Ends Double Taxation of Bitcoin, Cryptocurrencies

Australia Ends Double Taxation of Bitcoin, Cryptocurrencies

The Australian government has finally and conclusively provided a legislative end to the double taxation of Bitcoin and other cryptocurrencies. The bill will retroactively be enforced to July 1 of this year, as had been promised earlier in the year.

to follow — http://cur.lv/16o47f

If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or send me a few of the following currencies for continuity — thanks

Bitcoin — 13bDLfhm3zVc5a9beUAqsiNFSfkdHPpjCU
Litecoin — LL7eLHeg2qHhRVMyLcnGoLfUsEmhM8AB5P
Dash — Xjn1kKvPtxYMCaYRHwqaekgZNPm4janM5h
Neo — AbUPbDUnxgS5NN3A7vgZJQAmwo8qsjy1BF
Ethereum — 0xedcc3ce5a5a42a1d81f86ec4bff0995bb696766a
Ethereum Classic — 0x28891d4dacabd78a58e2c1ac598e375c90229002

shares to friends

What is NEO, and what is GAS?

An introduction to the cryptocurrency formerly known as AntShares, and it’s friendly sidekick.

Where did it come from!?

There’s a fair amount of confusion surrounding the Neo platform. Not surprising when you consider the project’s complicated history.

Neo began life as AntShares (ANS) in 2014. AntShares, founded by Da Hongfei and Erik Zhang, has been referred to as China’s first blockchain platform. In 2016, supposedly in response to growing interest in AntShares, and a need for blockchain solutions that meet the requirements of both government regulators and private companies, Da and Erik founded Onchain, a venture-backed company that provides blockchain-based financial services. In 2017, AntShares was rebranded as Neo.

Neo and OnChain are based in Shanghai. It’s certainly the case that Chinese regulation can have far-reaching effects on cryptocurrency markets and development. Neo is equal parts vulnerable to, and well-positioned to inform and cooperate with, Chinese oversight.

A Smart Economy

The Neo white paper is our key resource in understanding the platform. unfortunately, aspects of Neo are still in development, and certain details are unclear. At times, the white paper reads more as an overview of smart contracts in general than a specific guide to Neo’s inner workings.

In concept, Neo is a smart contracts ecosystem, similar to Ethereum. It allows users to automate the storage and exchange of digital assets. In order to compete with more established smart contracts implementations, Neo takes advantage of evolving technology and cooperation with Chinese authorities towards the stated goal of a ‘smart economy’.

Digital Identity

In 2005, China’s ‘Digital Signature Act’ allowed digital signatures to be legally binding in theory. The trouble here is that a means of digital identification that meets the requirements of this regulation has been hard to come by. In 2016, partnering with Microsoft China, OnChain founded Legal Chain with the goal of providing this means of identification. Legal Chain intends to apply the immutability and transparency of blockchain systems to meet these requirements, with the aim of integrating face and voice recognition along the way.

This concept of digital identity is a key feature in Neo’s proposed smart economy. Maintaining a trusted link between digital and physical entities means that you should be able to follow abuse of the system right back to a legally-binding identity.

Consensus

Neo employs a consensus mechanism called Delegated Byzantine Fault Tolerance (dBFT). Participants in the system are able to designate certain nodes as bookkeepers. A bookkeeper node must maintain a minimum balance of NEO and meet certain performance requirements.

Bookkeepers are tasked with verifying the blocks that are written to the blockchain. If two-thirds of the nodes on the network can agree with a bookkeeper’s version of the blockchain, consensus is achieved and the proposed version of the blockchain is validated. If consensus fails, an alternate bookkeeper is called and the process is repeated.

Because this consensus only needs to be replicated across a subset of the network, it is said to be more efficient than classic Byzantine Fault Tolerance. The network as a whole consumes fewer resources and can handle higher transaction volumes.

With dBFT and some other key optimizations, Neo claims to be able to handle over 1,000 transactions per second, with a goal of optimizing to over 10,000 transactions per second. Compare that to Ethereum’s current rate of 15 transactions per second.

That’s a big advantage but but it can be argued that these gains come at the cost of centralization. Digital Identification and dBFT may serve to limit control of the system to a select group.

NeoContracts

Neo’s smart contracts are called NeoContracts. One of the big obstacles to designing smart contracts is that their results need to be reproduced reliably across a network.

If a contract is referenced on a blockchain and it yields different results on different systems, the network can’t reliably agree on what the blockchain looks like and blocks will be stalled. But a smart contract can’t perform meaningful operations without accessing some variables.

Timestamps — Maybe you want to use smart contracts to automate weekly payments to an employee or settle an account with a distributor every 30 days. Your contract will need to know what time it is. To provide consistent access to time data, Neo registers a timestamp to every new block that is generated. A new block is added every 15 seconds, so contracts can access the current time to within 15 seconds.

Randomness — Also useful is the ability to generate random numbers. But how do you provide a random number while still ensuring that the same random number is identified across the network? To provide smart contracts with access to randomness, a random number is inserted into the Nonce field of every new block. Contracts can reference this Nonce field to access this random number.

Data Storage- Data in NeoContracts can be stored privately, accessible only to the contract with which it is associated. Data may also be stored in a global context, accessible to all of the contracts on the network. External data must be transferred to the Neo blockchain and passed on to these private or public data stores in order to be referenced by contracts.

The Tokens

The platform involves 2 different tokens. NEO and GAS are the cryptographic currencies that drive the Neo network. Both NEO and GAS are capped at 100 million tokens each.

The NEO token is representative of shares in the NEO market. NEO holders get voting rights in the NEO ecosystem, as well as rights to dividends in the form of GAS. 50 million NEO were distributed through initial crowd funding. These tokens are fixed with a 1-year lockout period, expiring October 16, 2017. The remaining 50 million tokens are managed by the NEO Council (A group of the project’s founders) to support development and maintenance of the NEO ecosystem. NEO tokens cannot be divided.

GAS is generated at a rate of 8 GAS per block with the construction of the NEO blockchain. The rate of production is reduced by 1 token for every 2 million blocks generated. Sometime around 2039, GAS circulation will reach 100 million and production will cease. Unlike NEO, Gas can be divided.

GAS dividends also accumulate as fees to the network. Users pay in GAS to deploy and run smart contracts. Fees are proportional to the computing resources consumed by the contract. These fees are distributed to ‘bookkeepers’ as reward for their activity on the network.

Special Features

In addition to the core protocol, the Neo team champions a handful of side projects that bring various benefits to the Neo Ecosystem.

Superconducting Transactions

In a traditional currency exchange, orders are placed and matched in a centralized marketplace. The process is efficient, but it requires that the user release control of their funds to the exchange.

By automating the placement and matching of orders across a consensus network, you can ensure that orders are matched and processed fairly and transparently, effectively creating a decentralized exchange. But this results in slow transactions, as adjustments must to be validated across the network.

Neo proposes a system whereby exchange transactions are settled on the blockchain, but order matching is handled off-chain by a central exchange. This is intended to provide the efficiency of centralized exchanges with the security of a decentralized exchange. Neo calls these transactions ‘Superconducting Transactions’.

NeoX

NeoX allows transactions to traverse blockchains. I can’t find much in detail about his protocol. Similar protocols involve generating smart contracts that tie up funds on one blockchain in return for access to funds on an alternate chain.

NeoFS

NeoFS allows large files to be divided and distributed across the network. Users can specify the level of reliability they expect of a file. Files with low reliability requirements can be stored and retrieved at minimal cost. For a higher fee, data can be stored on more reliable nodes.

NeoQS

Quantum computers threaten the security of certain cryptographic techniques. Neo uses a lattice-based cryptographic mechanism that it calls NeoQS (Quantum Safe) which is theoretically resistant to attacks from quantum computers. Not likely that quantum computing will affect cryptographic systems in the near future, but it does offer some peace of mind.

Further Reading

https://steemit.com/cryptocurrency/@basiccrypto/almost-everything-you-wanted-to-know-about-neo-part-1-of-2

https://bitcoinmagazine.com/articles/op-ed-chinas-ico-ban-characteristic-not-catastrophic/

https://cryptoinsider.com/byzantine-fault-tolerance-blockchain-systems/

https://steemit.com/neo/@basiccrypto/neo-s-consensus-protocol-how-delegated-byzantine-fault-tolerance-works

NEO, Onchain and its ultimate plan — DNA

https://cityofzion.io/

Chinese Users Ditch WeChat for Telegram to Conduct Bitcoin Trades

No one will be surprised there is still a big interest in Bitcoin as far as China is concerned. More specifically, enthusiasts are no longer using state-sanctioned messaging apps for this activity. Instead, they are now flocking to Telegram, a messaging app providing end-to-end-encryption. Rest assured Chinese users are not done with Bitcoin just yet. … Continue reading Chinese Users Ditch WeChat for Telegram to Conduct Bitcoin Trades

The post Chinese Users Ditch WeChat for Telegram to Conduct Bitcoin Trades appeared first on NEWSBTC.

Token Report: Kik’s Inflation Slope & 19 More ICOs

This post first appeared Monday in our investor newsletter. Every week, we cover the news of the past week in crypto assets and offer a list of upcoming ICOs to watch, pulled from Token Tracker, the world’s most comprehensive free ICO listing. Forward this to your friends and tell them to sign up for the next Token Report.

Last week saw a wave of precautionary actions by ICOs a week after the People’s Bank of China announced that it considered fundraising via ICOs to be illegal. The two ICOs we’re watching this week — KIN and Ambrosus — all made last-minute changes and announcements regarding legality and security. We’ve also listed all this week’s ICOs.

Last Week in Crypto Assets

  • Following the People’s Bank of China’s ICO ban last week, more than 40 blockchain projects had suspended their ICO plans according to Bitcoin News. Last Tuesday, China Daily reported that some were blocking registration while others were permanently ceasing operations.
  • CoinList’s distributed data project, Filecoin, broke the all-time ICO fundraising record, with 257 million USD, according to Coindesk. This amount included 52 million USD raised in a private pre-sale which included the likes of USV and a16z. At the time of closing it had added approximately 205.8 million USD in its public sale, surpassing Tezos’ 232 million USD record, set in July. Filecoin has yet to publish its final numbers.
  • Malaysia’s Securities Commission on Thursday issued a statementcautioning investors on ICOs and making note of the variety of ways in which “ICO scheme operators” seek to raise funds. The commission listed potential risks, including limited legal protection for investors, insufficient liquidity and opaque pricing and the difficulty in verifying authenticity of projects that do not have a domestic presence.
  • Global chat app Kik announced on Friday that their token, KIN, will not be available to Canadian buyers in its ICO scheduled to begin Sept. 12. “We, a Canadian company, have decided to move forward without Canada,” said Kik’s CEO Ted Livingston in a blog post announcing the decision.
  • Just a week after China called for a ban on ICOs in the country, cryptocurrency exchange Bitfinex announced that it was listing Chinese open-source blockchain project NEO’s token to trade against USD, BTC and ETH. The news caused NEO to rebound after dropping to 19 USD after the announcement by the People’s Bank of China.

Kin (KIN)
Documentation
Open Date: Sept. 12, 09:00 EDT
Hard cap: 125M USD

The crypto community yearns to rebuild the internet according to its original egalitarian ideals; that’s what drove the success of projects like the Brave Attention Token (BAT, 35 million USD) and SingularDTV (SNGLS, 7.5 million USD). Direct that idealism at a venture-backed unicorn and it’s a potent recipe for exuberance. Case in point: Kik, a Canada-based messaging platform with an ICO this Tuesday. Over a typical recent day in Kik’s Slack forum, Token Report’s forum analysis found 47% of messages focused on one topic only: How to get in.

Kik touts its past experience with a virtual currency it called Kik Points: “Kik Points showed that users did not need to be technologically savvy to use digital currency,” the company writes in its white paper. Actually, airline mileage points programs showed that. Kik Points was a loyalty program that rewarded its most active users for watching ads, playing games or inviting friends. Points were then used to buy virtual goods and other forms of entertainment.

Presumably, Kik Points’ success or failure would have hinged on advertiser and publisher demand for a new way to engage Kik users, and that demand doesn’t seem to have materialized. Kik Points ended in Q3 2016 and Kik “has been searching for a sustainable monetization model,” according to the white paper.

That’s hardly surprising. Kik reports it has 15M monthly active users, mostly Americans under age 24. It states in its white paper that it handles over 250M messages a day and that the average user sends 55 messages daily. Those numbers only make sense if the 55-message average is based on a daily active user (DAU) base of 4.5M. By comparison, Snapchat has 173M DAUs and a revenue growth problem that’s been well-documented since its IPO in March.

Will users transact in KIN, and will those transactions carry more value than Kik Points did? Some of the 17K potential buyers who made it through Kik’s registration process are hoping they will. Users will have to transact a great deal to counteract the inflationary force of Kik’s token issuance: The company is minting 10 trillion coins and floating 1 trillion, with plans to disburse most of the remainder over the coming years as economic stimulus for its fledgling crypto network. As many as 2.4 trillion will hit the market in its first year.

Kik’s ICO price is 1 ETH = 1,973,581 KIN, for an implied market cap of 152M USD. In 2017 to date, Ethereum’s transaction volume in USD has grown at roughly twice the rate of its market cap, according to data from CoinMarketCap. Meanwhile, Ethereum’s supply is growing at a sedate 14.75 percent per annum. KIN must climb a steep user adoption hill to beat its own inflation rate and deliver a better long-term return than an investor might expect by hodling onto her ETH.

Ambrosus (AMB)
Documentation
Open Date: Sept. 15
Hard cap: 100M CHF

Ambrosus is building a supply chain ecosystem using data processing and sensors to govern the quality, safety and origins of food and medicines on the blockchain. Its moonshot goal is to create a network of interconnected quality assurance sensors that record entire histories of a product, with smart contracts used to govern supply chains and manage commercial partnerships between the parties involved.

To make the Ambrosus network a reality, it is developing hardware sensors to analyze and measure biological samples as well as tag and monitor objects to transmit data about them. Information is sent from a device to the Ambrosus network, with the data then bonded to a token, Amber.

Ambrosus’ Amber token will act in place of a centralized actor in the network to provide the functions needed to record and update information on the ledger. As products move through the supply chain, a set number of Amber are bonded to the product until a defined termination date defined by a purchase, delivery or other event in the chain. Tokens are also split and merged along the system as ingredients turn into processed materials and final products. End users are customers that are rewarded in Amber for buying the product. Any tokens unclaimed by consumers in the system are burned.

Ambrosus says it has a functioning prototype of the ecosystem, a demo of which is viewable at ambrosus-demo dot com. Originally set to open on Sept. 13, Ambrosus has delayed its ICO by two days to Sept. 15 due to security precautions, it announced in a blog post over the weekend.

Team
Ambrosus was founded by Angel Versetti, a former project lead at the United Nations Division of Technology, Industry and Economics. He runs a Geneva, Switzerland-based, blockchain-focused VC fund, Versetti & Co., of unknown size. Advisers include Vlad Trifa, an early contributor to the Web of Things, and David Drake, president of LDJ Capital. Ambrosus’ core technology partner is Parity Technologies.

Scam of the Week

Chinese blockchain protocol Qtum, which held a crowd sale in March and released its completed main network last week, announced on Twitter that it had identified a fake website that was advertising a token airdrop. Scammers took advantage of an ERC20 swap Qtum is organizing for its token holders.

LOL

Jesus Coin is starting an ICO on Sept. 12, developing “the currency of God’s son,” promising record transaction speeds between token holders and Jesus, outsourcing sin forgiveness and achieving a market cap of 50 billion USD — as predicted by Peter (but “not the disciple”). Can someone say, cloud-based, trustless entity?

ICOs Opening This Week

Thanks for reading Token Report. Reply to tell us what you think. Then forward this to your friends and tell them to sign up.

Token Report is an independent financial information service founded by Galen Moore and Peter Vessenes. Galen is a financial journalist with a background in startups, venture capital and launching news sites. Peter is a co-founder of the Bitcoin Foundation, and launched the first VC-backed Bitcoin company in 2011. He is managing director at New Alchemy, a boutique consulting and investment group based in Seattle, Wash., that is making a pre-seed investment in Token Report.​

Nothing contained in Token Report materials or posted at tokenreport.com constitutes an offer or a solicitation of an offer to buy or sell a security, financial instrument, or other category of asset, or investment advice or recommendation of a security, financial instrument or other category of asset. Tokens involve risk and are not suitable assets for everyone. Token Report believes its information was obtained from reliable sources but does not guarantee its accuracy or completeness and accepts no liability for losses arising from the publishing of this information. The information provided by Token Report is not a substitute for financial, legal and other professional advice. Each individual should always consult his or her own financial, legal or other professional advisors and discuss the facts and circumstances that apply to the individual.


Token Report: Kik’s Inflation Slope & 19 More ICOs was originally published in Token Report on Medium, where people are continuing the conversation by highlighting and responding to this story.

60个国家对加密货币监管态度热点图

文章作者:Blackmoon 投资总监 Sergey Vasin

截至2017年7月21日, 60个国家中已有63%对加密货币进行了有利或非常有利的监管。这对该行业来说是非常好的现象,但仍然有很大的增长空间。

加密货币监管友好国家

从地图上可以看出,日本,美国,加拿大以及欧洲大多数国家对加密货币进行了有利的规制。这些国家明白,这个新的资产种类有一切的资质成为全球经济不可分割的一部分。例如,在美国,比特币由财政部定义为虚拟货币;被商品期货交易委员会(CFTC)认为是商品。例如,比利时根据数字货币的法律规定约束加密货币。德国基本认可令牌是私人资金,而瑞典将加密货币视为传统货币。

南美情况

南美洲情况相反,除阿根廷之外,其他国家不鼓励加密货币; 在玻利维亚,中央银行在2014年禁止了比特币的流通;而在厄瓜多尔当局发行自己的区块链货币,为保护它免受市场竞争,禁止所有其他加密货币。巴西现在选择不采取行动,由于区域块状市场和社区欠发达 。阿根廷鼓励加密货币,因为其总统毛里西奥·马克里(Mauricio Macri)是一位知名的比特币支持者。

亚洲态度不一

亚洲文化,政治制度和经济增长一直密不可分。加密货币监管也不例外。巴基斯坦选择先立法,再发展。在台湾,监管因惧怕比特币贿赂而禁止金融机构与任何加密业务合作。在马来西亚,利用发展fintech来建立首个伊斯兰金融体系是大热议题,所以加密货币在这个国家有很大的潜力;新加坡以政府监管一向受好评,他们正在致力于创建国家支付委员会和灵活的法律框架,给加密货币流通发许可证。中国是最有趣的国家,因为它似乎发展加密货币有得天独道的优势:一方面,比特币只能由私人而不是组织使用,另一方面,它是世界领先的加密开采国家。

这份分类和地图是经过研究论文“加密货币的法律地位(数字货币) — 国际和俄罗斯经验”,由Itsynergis.ru,即Vladimir Popov作出的。

On the Chinese ICO Ban

China’s central banking authority has banned ICOs. This decision seems to be very much a signal to Chinese crypto investors that China is opposed to the future narratives of cryptocurrency, but what does it say about the current state?

For China, cryptocurrency is a very complicated asset. On the one hand, provincial and state bureaucrats receive cryptocurrency as payments for allowing crypto miners to use state assets to further their economic systems (we see this in the case of governors who allow miners to receive power from a hydroelectric dam in exchange for a portion of the crypto-assets mined). This symbiotic relationship stretches far up the governance structure. On the other hand, the rulers of monetary policy see high net-worth individuals as using cryptocurrency to evade taxation and export money beyond the border of the republic in stark contrast to the decree of the ruling party. Exporting money from the mainland is strictly frowned upon but it’s next to impossible to isolate crypto to crypto movements to a physical location.

If I send money from one bitcoin address, let’s say at Huobi, to another address, it’s actually impossible for Huobi to verify where that address physically lives unless it’s on a list of known addresses. It’s totally possible that Huobi could maintain a list of known addresses, but for various technical and political reasons, that’s hard. The best effort most places can make is a checkbox pushing the assertion of the location of the destination onto the user, but that’s about as effective as coinbase’s famous “check this box if you’re a qualified investor” which was part of the problem with their flash crash (and now a defunct feature in their system). In short, tracking the movement of bitcoins beyond the addressing of the network is really hard.

Getting back to the narrative of why China banned ICOs, it seems that the rulers of monetary policy wish to impose a chilling effect on the movement of currency out of China, but not to the point of outright banning all cryptocurrency because of how much investment those same rulers have in the asset class. In short, Chinese state actors own too much cryptocurrency to outright ban it, but they want to stop more money from fleeing the country (and new actors from becoming members of the ruling class). It is this catch-22 that leads them to impose what is essentially a meaningless ban on new ICOs, since the wealthy will still be able to invest in new ICOs, while still allowing exchanges to traffic in the very assets which allow the movement of value out of the country.

It seems likely that what will happen is that exchanges will remain active in China and ICOs will move out of China. The net effect will simply be that China does not recognize any net economic benefit from the establishment of new currencies and, at the same time, does almost nothing to stem the movement of value from their shores. This decision is, in effect, the worst of both worlds.

Even if China were to ban exchanges from trading anything except Bitcoin and Ethereum, it would still do nothing to stem the flow of value from the mainland. Anything short of a full ban on cryptocurrencies is effectively missing the forest for the trees and it seems, given how many cryptoassets are owned by the ruling party, extremely unlikely that such a ban would ever come to pass. That is to say, Bitcoin and Ethereum are synonymous with the ruling class of China, so why allow any new currency to threaten the embedded power structures?

On the Chinese ICO Ban

China’s central banking authority has banned ICOs. This decision seems to be very much a signal to Chinese crypto investors that China is opposed to the future narratives of cryptocurrency, but what does it say about the current state?

For China, cryptocurrency is a very complicated asset. On the one hand, provincial and state bureaucrats receive cryptocurrency as payments for allowing crypto miners to use state assets to further their economic systems (we see this in the case of governors who allow miners to receive power from a hydroelectric dam in exchange for a portion of the crypto-assets mined). This symbiotic relationship stretches far up the governance structure. On the other hand, the rulers of monetary policy see high net-worth individuals as using cryptocurrency to evade taxation and export money beyond the border of the republic in stark contrast to the decree of the ruling party. Exporting money from the mainland is strictly frowned upon but it’s next to impossible to isolate crypto to crypto movements to a physical location.

If I send money from one bitcoin address, let’s say at Huobi, to another address, it’s actually impossible for Huobi to verify where that address physically lives unless it’s on a list of known addresses. It’s totally possible that Huobi could maintain a list of known addresses, but for various technical and political reasons, that’s hard. The best effort most places can make is a checkbox pushing the assertion of the location of the destination onto the user, but that’s about as effective as coinbase’s famous “check this box if you’re a qualified investor” which was part of the problem with their flash crash (and now a defunct feature in their system). In short, tracking the movement of bitcoins beyond the addressing of the network is really hard.

Getting back to the narrative of why China banned ICOs, it seems that the rulers of monetary policy wish to impose a chilling effect on the movement of currency out of China, but not to the point of outright banning all cryptocurrency because of how much investment those same rulers have in the asset class. In short, Chinese state actors own too much cryptocurrency to outright ban it, but they want to stop more money from fleeing the country (and new actors from becoming members of the ruling class). It is this catch-22 that leads them to impose what is essentially a meaningless ban on new ICOs, since the wealthy will still be able to invest in new ICOs, while still allowing exchanges to traffic in the very assets which allow the movement of value out of the country.

It seems likely that what will happen is that exchanges will remain active in China and ICOs will move out of China. The net effect will simply be that China does not recognize any net economic benefit from the establishment of new currencies and, at the same time, does almost nothing to stem the movement of value from their shores. This decision is, in effect, the worst of both worlds.

Even if China were to ban exchanges from trading anything except Bitcoin and Ethereum, it would still do nothing to stem the flow of value from the mainland. Anything short of a full ban on cryptocurrencies is effectively missing the forest for the trees and it seems, given how many cryptoassets are owned by the ruling party, extremely unlikely that such a ban would ever come to pass. That is to say, Bitcoin and Ethereum are synonymous with the ruling class of China, so why allow any new currency to threaten the embedded power structures?

China Forbidding ICOs: Why This Is A Good Thing For The Crypto Ecosystem

A couple of days ago, PBOC (People Bank Of China) announced that they will not only forbid any new ICO but will also ask the ones who already took place in China to refund the contributors.

As a result, the entire market is in red. Bitcoin lost almost 10%, Ethereum more than 15% and some of the altcoins lost as much as a quarter of their value. The most prominent example being NEO, the so-called “Ethereum of China” which lost over 26%.

But as red as the market looks right now, I think this is a good move. It may have come with a dash of centralization, it may have come at the “wrong” moment, when the market was booming and Bitcoin was ready to pierce the $5000 level, but it’s a good thing.

Here’s why.

1. First of all, there is a contextual situation.

During the last few months, hundreds of so called ICOs emerged out of nowhere. Most of them didn’t have more than a one-page website, with a few paragraph of text and a couple if images. Yet, they expected to receive millions of dollars. This is pure speculation. It doesn’t do good to anyone, except, probably, the beneficiaries of these ICOs. So, first of all, the inflation of ICOs must be stopped somehow.

2. Second, an ICO is not a cryptocurrency.

These two activities were so tied together during the last few years, that in the collective consciousness they tend to blend. Wrong. An ICO is just a way of asking money upfront, for something that may, or may not go as expected. A cryptocurrency is a very complex project, requiring a significant amount of human resources, and, most important, time, to get to maturation. Satoshi Nakamoto didn’t have any ICO, AFAIK.

3. The fact that this regulation comes from China is very significant.

As you know, a lot of Bitcoin mining power, probably more than 50%, is coming from China. This puts a big question mark on the term “decentralization”. If all the mining power is concentrated in the hands of a single community (being it a country, or a government) then Bitcoin is no longer decentralized. So, despite the temporary dive of the price, I consider the dumping of Bitcoin from China, to be a good thing. Please note that I have no proof that the majority of the dumping is coming from China, it’s just a hunch.

4. I’ve been in the position of taking money from investors before, and, although it sounds great, it’s not as good as you think.

Of course, if things go well, everybody is happy. But if things don’t go well, well, it’s shitty. So purely from an entrepreneur perspective, the fact that many crypto enthusiasts will work without the pressure of the ICO (I’m talking about the genuine developers, not ICO scammers) may lead to better products in the future.

All in all, this measure, as strange as it is, and as upsetting as it may be for those who had plans these days with their tokens, it’s a good one.

So, hodl! :)
 — 
I’m a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. On Steemit you may stay updated by following me @dragosroua.

China Forbidding ICOs: Why This Is A Good Thing For The Crypto Ecosystem

A couple of days ago, PBOC (People Bank Of China) announced that they will not only forbid any new ICO but will also ask the ones who already took place in China to refund the contributors.

As a result, the entire market is in red. Bitcoin lost almost 10%, Ethereum more than 15% and some of the altcoins lost as much as a quarter of their value. The most prominent example being NEO, the so-called “Ethereum of China” which lost over 26%.

But as red as the market looks right now, I think this is a good move. It may have come with a dash of centralization, it may have come at the “wrong” moment, when the market was booming and Bitcoin was ready to pierce the $5000 level, but it’s a good thing.

Here’s why.

1. First of all, there is a contextual situation.

During the last few months, hundreds of so called ICOs emerged out of nowhere. Most of them didn’t have more than a one-page website, with a few paragraph of text and a couple if images. Yet, they expected to receive millions of dollars. This is pure speculation. It doesn’t do good to anyone, except, probably, the beneficiaries of these ICOs. So, first of all, the inflation of ICOs must be stopped somehow.

2. Second, an ICO is not a cryptocurrency.

These two activities were so tied together during the last few years, that in the collective consciousness they tend to blend. Wrong. An ICO is just a way of asking money upfront, for something that may, or may not go as expected. A cryptocurrency is a very complex project, requiring a significant amount of human resources, and, most important, time, to get to maturation. Satoshi Nakamoto didn’t have any ICO, AFAIK.

3. The fact that this regulation comes from China is very significant.

As you know, a lot of Bitcoin mining power, probably more than 50%, is coming from China. This puts a big question mark on the term “decentralization”. If all the mining power is concentrated in the hands of a single community (being it a country, or a government) then Bitcoin is no longer decentralized. So, despite the temporary dive of the price, I consider the dumping of Bitcoin from China, to be a good thing. Please note that I have no proof that the majority of the dumping is coming from China, it’s just a hunch.

4. I’ve been in the position of taking money from investors before, and, although it sounds great, it’s not as good as you think.

Of course, if things go well, everybody is happy. But if things don’t go well, well, it’s shitty. So purely from an entrepreneur perspective, the fact that many crypto enthusiasts will work without the pressure of the ICO (I’m talking about the genuine developers, not ICO scammers) may lead to better products in the future.

All in all, this measure, as strange as it is, and as upsetting as it may be for those who had plans these days with their tokens, it’s a good one.

So, hodl! :)
 — 
I’m a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. On Steemit you may stay updated by following me @dragosroua.