Category Archives: crypto

CPROP Progress Update: Product Re-Design

In recent weeks the CPROP team has held discussions with experts in the real estate space that have sharpened the thinking around CPROP’s go-to-market strategy. In turn, this has led to some exciting developments in how the CPROP product will be designed.

Real estate agents are the single largest customer demographic and we want to ensure our solution addresses their pain points. Despite the high price tags they pay for them, agents are simply not happy with existing collaboration SaaS platforms in the marketplace. Furthermore, there are few workflow management product offerings in the marketplace, and none of them has a dominant position.

Re-designed CPROP product to be more realtor and membership-focused

The re-designed product (shown above) will generate significant buzz within the industry and working with existing real estate portals is a powerful way to scale market penetration.

In light of the redesign of both the token structure and business model, the CPROP website has been entirely re-designed with fresh content and a new look. Check it out here.


CPROP Progress Update: Product Re-Design was originally published in CPROP on Medium, where people are continuing the conversation by highlighting and responding to this story.

CPROP Progress Update: Product Re-Design

In recent weeks the CPROP team has held discussions with experts in the real estate space that have sharpened the thinking around CPROP’s go-to-market strategy. In turn, this has led to some exciting developments in how the CPROP product will be designed.

Real estate agents are the single largest customer demographic and we want to ensure our solution addresses their pain points. Despite the high price tags they pay for them, agents are simply not happy with existing collaboration SaaS platforms in the marketplace. Furthermore, there are few workflow management product offerings in the marketplace, and none of them has a dominant position.

Re-designed CPROP product to be more realtor and membership-focused

The re-designed product (shown above) will generate significant buzz within the industry and working with existing real estate portals is a powerful way to scale market penetration.

In light of the redesign of both the token structure and business model, the CPROP website has been entirely re-designed with fresh content and a new look. Check it out here.


CPROP Progress Update: Product Re-Design was originally published in CPROP on Medium, where people are continuing the conversation by highlighting and responding to this story.

Few thoughts about Deeponion Smart Contracts

Many investors and users are waiting for the long-awaited launch of Deeponion Smart Contracts, the release of which is scheduled for the 2nd quarter of 2018. Up to date, few details are known about the developers’ plans for this technology. Many tend to think that this will be the second Ethereum and anyone can “stamp” their tokens based on Deeponion. This option is also possible, and I must tell you that it would be great! This will allow to start large-scale and widespread use of Deeponion and bring it to a completely different level!

But as we know, our developers tend to be the first in everything! Therefore, I think that in the case of Deeponion Smart Contracts, we will have something more global! After all, “Smart contracts” are not only a function for creating tokens based on the platform. This is a much more cross functional tool, like the whole Blockchain technology. In today’s reality, all this has limited functionality.

I suggest you dream up on this topic!

As we know, smart contracts are the execution of a specified action between the parties, so tell me, what does prevent the implementation on their basis an interaction between any autonomous devices, for example, from the world of smart Internet of things? You say that in this field the position is occupied by IOTA, don’t you? I think that with the volume of devices, which is growing exponentially day by day, there will be enough volumes for all of us. The next decade will be revolutionary for this kind of technology, and the fact that our developers are betting on business use of technologies like DeepVault says that they are interested in developing in this direction! And maybe, Deeponion Smart Contracts will be something other than the expected second Ethereum.

But this is just one hypothesis of one member of the Deeponion community.

How Bots Trick You Into Paying Higher Coin Prices

The video below shows you how to detect automated bots that place orders automatically and trade ahead of you at your expense.

So why is this important?

Because if you aren’t aware of this, you as an investor end up paying a higher price for your coins.

Maybe you’re thinking: my coins are going to the moon anyways, why should I care about overpaying by a few % points?

The answer is everyone is a genius in a bull market — its easy to confuse a market run up with investing skill. But if you’re serious about getting positive expected value from your crypto investments — you need to be looking for positive ROI wherever you can find it so you can trade successfully in bull and bear markets.

Can you imagine professional traders happily paying a few % points extra on each transaction? Of course not, they squeeze out every basis point of cost-reduction they can find.

To find out more about the tools we’re building to help crypto investors like yourself trade more profitably, visit coinfi.com.

Daily technical analysis: Bitcoin — December 10 (Bitcoin/USD)

CoinCheckup Technical Analysis

In order to support you and the crypto community with trading decisions, CoinCheckup is serving you with Daily Technical analysis updates for Bitcoin & other Cryptocurrencies.

Note that this report is written on: Dec 10, 2017 05:18AM GMT

Technical Summary Bitcoin: STRONG BUY

Moving Averages: 10 BUY / 2 SELL | Technical Indicators: 8 BUY / 0 SELL

Bitcoin 24 hour Technical Indicators

What is are these indicators (click for more info):RSI, STOCH, STOCHRSI, MACD, ADX, Williams %R, CCI, ATR, Ultimate Oscillator, ROC, Bull/Bear Power

Bitcoin’s Moving Average indicators

What is “moving average” (more info)?

Bitcoin’s Background, Fundamentals, Investment stats & Long-term indicators

Thanks for reading!

Feel free to share your thoughts, feedback, and suggestions in the comments below. If you like this article share it on social and with your friends! :-)Subscribe and stay tuned for daily updates!You can also get in touch with the CoinCheckup for Feedback or new features you would like to see on the CoinCheckup website.

CoinCheckup | Crypto ark Analysis, Predictions & Investment stats

Disclaimer: Trading and investing in digital assets is highly speculative and comes with many risks. The analysis & stats from CoinCheckup are for informational purposes and should not be considered investment advice. Statements and financial information on CoinCheckup.com should not be construed as an endorsement or recommendation to buy, sell or hold. Please do your own research on all of your investments carefully. Technical analysis stats are out of date the moment we post them. Scores on CoinCheckup are based on common sense Formulas that we personally use to analyse crypto coins & tokens. We’ll open source these formulas soon. Past performance is not necessarily indicative of future results. [Read the full disclaimer here]

Gate.Io is OFFICIALLY supporting SBTC!

We are pleased to announce that Gate.IO is officially supporting Super Bitcoin!

SBTC & GOD is listed on gate.io - Gate.io News

SBTC Information:

SuperBitcoin(SBTC) is a fork of Bitcoin. The fork will take place at block height 498888, after which, new functionalities will be added to the forked chain. The original bitcoin holders will be compensated with one super BTC for every BTC held. SBTC will have a total supply of 21,210,000, of which 210,000 will be pre-mined.

All gate.io users get the equivalent amount of SBTC on a 1:1 base of BTC around block height 498888.
Deposit and withdrawal will be enabled after the official wallet is released. All BTC holders can get SBTC in advance by locking their BTC at
https://gate.io/myaccount/lockbook
Deposit BTC at
https://gate.io/myaccount/deposit/BTC

Trade SBTC at
https://gate.io/trade/SBTC_USDT
https://gate.io/trade/SBTC_BTC

Gate.Io is OFFICIALLY supporting SBTC!

We are pleased to announce that Gate.IO is officially supporting Super Bitcoin!

SBTC & GOD is listed on gate.io - Gate.io News

SBTC Information:

SuperBitcoin(SBTC) is a fork of Bitcoin. The fork will take place at block height 498888, after which, new functionalities will be added to the forked chain. The original bitcoin holders will be compensated with one super BTC for every BTC held. SBTC will have a total supply of 21,210,000, of which 210,000 will be pre-mined.

All gate.io users get the equivalent amount of SBTC on a 1:1 base of BTC around block height 498888.
Deposit and withdrawal will be enabled after the official wallet is released. All BTC holders can get SBTC in advance by locking their BTC at
https://gate.io/myaccount/lockbook
Deposit BTC at
https://gate.io/myaccount/deposit/BTC

Trade SBTC at
https://gate.io/trade/SBTC_USDT
https://gate.io/trade/SBTC_BTC

FREE ETH Bounty Campaign still Ongoing!

Dear friends,

Yesterday we launched our Bounty Campaign and we have reached over 6500 Telegram Users now! The First 10 000 Telegram Users who join our channel are eligible to receive FREE ETH so DO JOIN NOW if you have not already!!

There are ETH bonuses for referring friends to join the group, and a LUCKY DRAW at the end of the campaign with numerous SBTC up for grabs!

JOIN AND REGISTER YOUR DETAILS WITH THE BOT HERE:

https://telegram.me/superbitcoinofficial

LTCUSD RSI, Trend lines & Pattern evaluation

G’day readers, today I am taking a look back to my 100% profit Litecoin forecast. As we can see Litecoin has broken out of the Fibonacci zone, and although we see it residing inside again above the 61.8% line support is developing & I expect to see a new bottom of $100 for Litecoin by the end of 2018, which at this point is not at all far off.
It is worth taking a look at the RSI here as we are re-entering now the 20–80 RSI safety zone.

Following the trend lines we’ve seen a very steady progression for the LTCUSD pair. Right now we’re seeing an insanely strong rally for BTC, which is nothing out of the ordinary but none-the-less takes focus away from the Alt market & of course Litecoin directly. I think we’ll see support building atop this Fib pattern entering 2018, and truly believe that 2018 is the year of Litecoin. A look at Charlie Lee, who has continued to accrue popularity throughout 2017 on Twitter & his Litecoin programming & his intentions to finally up the Litecoin marketing regime, which we truly have seen little of from Lite as of yet.

Here’s a link to the TradingView post for a closer look.
https://www.tradingview.com/chart/LTCUSD/qfojW6zP-LTCUSD-RSI-Trend-lines-Pattern-evaluation/

I also run an open Discord server for Crypto discussion & weekly contests of Fantasy League Crypto. This weeks is a $25BTC reward for the winner. The invite link below
https://discord.gg/ChcZxDa

LTCUSD RSI, Trend lines & Pattern evaluation

G’day readers, today I am taking a look back to my 100% profit Litecoin forecast. As we can see Litecoin has broken out of the Fibonacci zone, and although we see it residing inside again above the 61.8% line support is developing & I expect to see a new bottom of $100 for Litecoin by the end of 2018, which at this point is not at all far off.
It is worth taking a look at the RSI here as we are re-entering now the 20–80 RSI safety zone.

Following the trend lines we’ve seen a very steady progression for the LTCUSD pair. Right now we’re seeing an insanely strong rally for BTC, which is nothing out of the ordinary but none-the-less takes focus away from the Alt market & of course Litecoin directly. I think we’ll see support building atop this Fib pattern entering 2018, and truly believe that 2018 is the year of Litecoin. A look at Charlie Lee, who has continued to accrue popularity throughout 2017 on Twitter & his Litecoin programming & his intentions to finally up the Litecoin marketing regime, which we truly have seen little of from Lite as of yet.

Here’s a link to the TradingView post for a closer look.
https://www.tradingview.com/chart/LTCUSD/qfojW6zP-LTCUSD-RSI-Trend-lines-Pattern-evaluation/

I also run an open Discord server for Crypto discussion & weekly contests of Fantasy League Crypto. This weeks is a $25BTC reward for the winner. The invite link below
https://discord.gg/ChcZxDa

Arbidex is here to disrupt cryptocurrency exchange market

Arbidex is here to disrupt cryptocurrency exchange market

Cryptocurrency and blockchain in 2017 are like a crystal ball: everyone from slack entrepreneurs to corporate giants seems to look into it and see their future business model. If we are to turn to the numbers for cryptocurrency market growth, we have this: in one year the whole industry capitalization exploded from 13 to 300 billion US dollars. Mind-blowing, huh?

But with this exponential growth, cryptocurrency exchange market is still in its infancy and presents a perfect storm for disruption. One of the most common trading instruments is an exchange arbitrage, but the ecosystem now is not providing any user-friendly tools for a trader to apply actually. Hence, a regular trader has to make at least two moves from one crypto exchange to another: first, to buy crypto at one exchange, transfer it to another and then sell it there at a higher rate. And remember there are commissions that every exchange charges, and time and resources that a trader spends on this set of operations. A newbie trader would be facing even more difficulties. Opportunities for an arbitrage appear on-the-spot when you need to quickly assess the situation, calculate the profitability of the strategy, make a series of buying-selling transactions and then build an adequate clearing strategy. Crypto-traders are in drastic need of a solid solution to address all the issues they are facing now that will provide sufficient liquidity with an option to display consolidated data and graphs from multiple exchanges in a single professional interface, thus providing a user-friendly framework for exchange arbitrage.

Unlike many other overhyped blockchain projects, the team behind Arbidex already has an operating platform with a set of technical tools for an exchange arbitrage that is interacting with several cryptocurrency exchanges accumulating about 10 million US dollars in deposits. Technical architecture and the efficiency of arbitration strategy were tested over the 4-month period by the team with their own deposits. Arbidex aspires to minimize trading risks by accumulating liquidity from all major cryptocurrency exchanges and completely automize the arbitration process for the user. Here’s an explanation of how it works. A trader signs up to the platform to start handling transactions with any amount he wants. Deploying a search algorithm for the most favourable exchange rates through multiple exchanges, the platform brings about the opportunity to buy cryptocurrency at a lower rate and sell at a higher rate. Also, trading risks will be insured by shifting them to Arbidex platform.

There are a few cool things about Arbidex. First, it’s built on Ethereum blockchain, which makes it easy and safe to make every cryptocurrency exchange iteration. All the transaction will be stored in a distributed ledger to provide complete transparency for all the stakeholders and verify the profits of the platform. Decentralization here will allow any user to make a cryptocurrency transaction at the most favourable rate. By virtue of integrated automation, a human factor will be completely excluded when making exchange transactions. Each and every exchange transaction will be stored in the blockchain; hence profitability of each transaction will be fixed in the ledger. Distribution of platform commissions will be absolutely transparent too. A portion of commissions will be sent to a common pool that can be distributed among all token holders. Thus, a token holder will be making profits on exchange transactions with an option to get his portion of the platform’s earnings.

Arbidex ICO kicks off on December 11 at 1 pm UTC. The team is looking to raise some funds through an ICO to draw massive audiences and capital to the platform and to get more exposure on the market. The product is already designed and technically executed to maintain liquidity and successful arbitrage strategies.

RAISON platform to hold ICO

RAISON project team announces the launch of ICO (Initial Coin Offering) for the development of RAISON, an AI-based mobile platform designed to handle investments and personal finance (token ticker — RSN).

The RAISON platform is being developed by the joint team of Threesixty Elements S.A. professionals in capital management services under the regulation of the Securities and Exchange Commission (US), “Intelligent Information Systems” (IIS), innovative enterprise, the resident of the ITMO Research University, successfully implementing machine learning and AI-integrated systems, as well as NetBox, a software developer.

In February 2018, RAISON plans to provide investors and the market with a prototype platform. The first product version is scheduled to be presented in the spring 2018.

RAISON’s unique proposal for its users is a number of integrated services:

· Synchronization of all the users’ accounts in one app;
· Development of a personal investment portfolio of cryptocurrencies, shares, bonds and funds;
· Introduction of personal recommendations for financial decisions making based on artificial intelligence technology.

The ICO of the RSN token will be executed in two stages on the decentralized token exchange platform Orderbook. A maximum of 200 000 tokens should be sold during the first round from December 7, 2017 to December 21, 2017; while the total volume of the second round of sales, from February 1, 2018 to February 28, 2018, will not exceed 3.8 million tokens.

RSN token price is nominated in EUR and totals 10 EUR/token. RSN tokens will be available for purchase in both the cryptocurrency and fiat money.

Following discounts are given while purchasing tokens on the corresponding dates:

· December 7, 2017 — December 21, 2017–25% (max 200 000 RSN);
· February 1, 2018 — February 7, 2018–15%;
· February 8, 2018 — February 14, 2018–10%;
· February 15, 2018 — February 21, 2018–5%.

Each RSN token gives its holder the right to:

· 25% of RAISON-generated revenue: The 4-year aggregate coupon return rate under the adopted financial model averages 276%;
· Guaranteed token buy-back starting from January 2020: The price is calculated by the following formula — number of RAISON users * 500 EUR * 0.25 / total number of tokens, but not less than 11 EUR per token.

“Our company specializes in investment consulting and management of investment portfolios of legal entities and individuals in Europe and the United States, including the cryptocurrencies, and we see that demand for integrated solutions in the field of personal finance management is growing all over the world. According to our forecasts, the number of the RAISON platform users may reach 1 million people by the end of 2021, primarily in blockchain-friendly European countries”, says Andrey Berezin, managing director of Threesixty Elements S.A. and Global Head of Investment Strategies at RAISON.

“The company’s own funds are currently being used to finance the project. Fundraising through the ICO will make it possible to develop platform’s functionality much faster, as well as obtain all the necessary licenses for the product to enter the mass market, primarily the Electronic Money Institution (EMI) license and the investment activity license under the EU’s Markets in Financial Instruments Directive (MiFID)”.

For reference:

Threesixty Elements S.A. is an investment management company specializing in investment consulting, management of investment funds and portfolios of individuals and legal entities, and trusts. Threesixty Elements is registered by the US Securities and Exchange Commission as a registered investment advisor, authorized by the BVI Financial Services Commission as an approved investment manager and is a member of Financial Industry Regulatory Authority (FINRA).

Intelligent Information Systems (IIS) is a research organization at the ITMO University (Russia’s leading national research university in the field of IT). Key areas of research and development: Machine Learning (ML); Big Data; Internet of Things (IoT).

NetBox is a leading company at Russian digital software distribution market. The company operates since 2012 distributing products of top Russian internet services (Yandex, Mail.Ru Group, Opera Software, etc). NetBox Ltd. designs its own solutions in desktop software (web browsers and utilities).

· Learn more about RAISON: https://raison.ai
· Read our Whitepaper
· Follow us on
· Join us on: Facebook, Twitter, TelegramSlack

Stay tuned!

RAISON platform to hold ICO

RAISON project team announces the launch of ICO (Initial Coin Offering) for the development of RAISON, an AI-based mobile platform designed to handle investments and personal finance (token ticker — RSN).

The RAISON platform is being developed by the joint team of Threesixty Elements S.A. professionals in capital management services under the regulation of the Securities and Exchange Commission (US), “Intelligent Information Systems” (IIS), innovative enterprise, the resident of the ITMO Research University, successfully implementing machine learning and AI-integrated systems, as well as NetBox, a software developer.

In February 2018, RAISON plans to provide investors and the market with a prototype platform. The first product version is scheduled to be presented in the spring 2018.

RAISON’s unique proposal for its users is a number of integrated services:

· Synchronization of all the users’ accounts in one app;
· Development of a personal investment portfolio of cryptocurrencies, shares, bonds and funds;
· Introduction of personal recommendations for financial decisions making based on artificial intelligence technology.

The ICO of the RSN token will be executed in two stages on the decentralized token exchange platform Orderbook. A maximum of 200 000 tokens should be sold during the first round from December 7, 2017 to December 21, 2017; while the total volume of the second round of sales, from February 1, 2018 to February 28, 2018, will not exceed 3.8 million tokens.

RSN token price is nominated in EUR and totals 10 EUR/token. RSN tokens will be available for purchase in both the cryptocurrency and fiat money.

Following discounts are given while purchasing tokens on the corresponding dates:

· December 7, 2017 — December 21, 2017–25% (max 200 000 RSN);
· February 1, 2018 — February 7, 2018–15%;
· February 8, 2018 — February 14, 2018–10%;
· February 15, 2018 — February 21, 2018–5%.

Each RSN token gives its holder the right to:

· 25% of RAISON-generated revenue: The 4-year aggregate coupon return rate under the adopted financial model averages 276%;
· Guaranteed token buy-back starting from January 2020: The price is calculated by the following formula — number of RAISON users * 500 EUR * 0.25 / total number of tokens, but not less than 11 EUR per token.

“Our company specializes in investment consulting and management of investment portfolios of legal entities and individuals in Europe and the United States, including the cryptocurrencies, and we see that demand for integrated solutions in the field of personal finance management is growing all over the world. According to our forecasts, the number of the RAISON platform users may reach 1 million people by the end of 2021, primarily in blockchain-friendly European countries”, says Andrey Berezin, managing director of Threesixty Elements S.A. and Global Head of Investment Strategies at RAISON.

“The company’s own funds are currently being used to finance the project. Fundraising through the ICO will make it possible to develop platform’s functionality much faster, as well as obtain all the necessary licenses for the product to enter the mass market, primarily the Electronic Money Institution (EMI) license and the investment activity license under the EU’s Markets in Financial Instruments Directive (MiFID)”.

For reference:

Threesixty Elements S.A. is an investment management company specializing in investment consulting, management of investment funds and portfolios of individuals and legal entities, and trusts. Threesixty Elements is registered by the US Securities and Exchange Commission as a registered investment advisor, authorized by the BVI Financial Services Commission as an approved investment manager and is a member of Financial Industry Regulatory Authority (FINRA).

Intelligent Information Systems (IIS) is a research organization at the ITMO University (Russia’s leading national research university in the field of IT). Key areas of research and development: Machine Learning (ML); Big Data; Internet of Things (IoT).

NetBox is a leading company at Russian digital software distribution market. The company operates since 2012 distributing products of top Russian internet services (Yandex, Mail.Ru Group, Opera Software, etc). NetBox Ltd. designs its own solutions in desktop software (web browsers and utilities).

· Learn more about RAISON: https://raison.ai
· Read our Whitepaper
· Follow us on
· Join us on: Facebook, Twitter, TelegramSlack

Stay tuned!

Bitcoin Price Surges Again as $12,000 Becomes a Likely All-time High Target

TheMerkle Bitcoin Price 12000

The positive Bitcoin price momentum is still in place as we speak. Thanks to some strong gains over the past few days, we are looking at a Bitcoin price of over $11,800 right now. It is only a matter of time until this value surpasses $12,000, which would send some shockwaves throughout the financial sector. The world’s leading cryptocurrency is not done just yet, that much is evident.

Bitcoin Price Trucks Along Nicely

Truth be told, a lot of people had expected a far steeper Bitcoin price correction before we would see any further upward momentum. When the price was rejected from its previous all-time high in rather dramatic fashion, there was a genuine fear we might drop well below $8,000 in the coming days. Surprisingly, things never got that bad, as the value eventually settled at around $9.250.

Although such a $2,000 drop scared a lot of people, it was only a minor blip on the radar when looking at the bigger picture. We now see the Bitcoin price recovering all of those losses and even reach a new all-time high in the process. Things have been especially interesting over the past 24 hours, with a near $1,000 gain across all exchanges. This growth is nothing short of remarkable and astonishing, although it may very well be just the beginning for Bitcoin. Some experts predict a Bitcoin price of around $40,000 by late 2018.

Whether or not that Bitcoin price is achievable in the next 12 months, remains to be seen. The current trend certainly seems to indicate anything is possible when it comes to Bitcoin. With a price change of around $500 in the course of just one hour, there is no reason to think bigger gains are on the horizon for the world’s leading cryptocurrency. An interesting future is ahead, that much everyone can agree on at this point.

Bitcoin once again notes very strong 24-hour trading volume during the weekend. With over $5.4bn worth of BTC changing hands these past 24 hours, the demand for cryptocurrency is not slowing down whatsoever. This current Bitcoin price gain has also pushed the total cryptocurrency market cap over $351bn once again, which is something that shouldn’t be ignored. All cryptocurrencies are flourishing and the majority of them can co-exist with BTC.

Bitfinex is still the go-to exchange when it comes to buying or selling Bitcoin. Their trading volume is almost twice as high as Bithumb’s, and three times as high as HitBTC’s. A remarkable trend that will not change anytime soon. It is also worth noting Bithumb projects a Bitcoin price of over $12,371 at this point in time, which is a pretty interesting gap compared to the rest of the world. Unfortunately, very few people can “exploit” this arbitrage opportunity right now.

How things will play out for the Bitcoin price remains to be seen. The positive momentum is still in place and it seems to grow even more bullish these past few weeks. There is no reason to think the Bitcoin price won’t reach $12.500 before the year is over, but there is never any certainty when it comes to cryptocurrency. Markets can turn sour on a whim’s notice. If that happens, all cryptocurrencies will suffer once again, as Bitcoin drags everything else up or down.

You don’t understand Bitcoin because you think money is fake

As Bitcoin continues its wild roller coaster ride and seems to keep climbing higher, I meet more and more people talking about investing in Bitcoin. There are advocates on both sides, some claiming that fiat currencies are dead and cryptocurrencies will replace all other forms of money, while others state that it is a speculative bubble that will pop when people realize there is no underlying value in this new fangled idea.

Bitcoin travels seamlessly through walls of binary code

In order to understand which perspective has more merit, or more concretely, to determine whether or not to invest in Bitcoin, we must understand two things. The first is how and why fiat currencies work (money backed by governments and banks), and second how Bitcoin works. We can then compare and contrast these to understand their respective merits. Excited? Me too!

A common case against Bitcoin is that it has no intrinsic value, no underlying asset of value to support it. The argument goes that because there is nothing of substance under the hood, it is doomed to fail. In response, some contend that fiat currencies are equally without substance, and rely on the same shared belief in a common fiction, referencing a truly excellent fiction in its own right, the book Sapiens.

Looking first at fiat currencies, I came across a blog post that states “A U.S. dollar is ‘backed by’ ‘the full faith and credit of the United States.’ But what exactly does this mean?” (link). It seems that people are unsure what ‘the full faith and credit’ of US government means, so let’s take a quick tour. The federal government has the power to invest in infrastructure, healthcare, retirement, military, and other services. Infrastructure projects result in very real roads, bridges, buildings, and parks, that benefit society in general. Healthcare accounts for 29% of the federal budget, and social security 24% (that’s more than half of the budget). These services save countless lives and provide for basic needs for millions of retirees. These too seem like very real capabilities to me. The military represents 15% of the budget, and its capabilities are readily apparent (link). So when we say that the U.S. dollar is backed by the full faith and credit of the United States, it means that the single most powerful entity in the world, one that in principle and practice has a real and significant impact on the world, supports the dollar. The guarantee of such an organization to make good on commitments should not be taken lightly and carries extraordinary weight.

What about Bitcoin? What is the foundation that it stands on? By design, it does not rely on any organization or power to make good on its promises, but it does have the blockchain! What is the blockchain again? Okay, grab a cup of coffee and try to stay awake for this part.

The blockchain is a list of records(!). The technology required to create this kind of record has been around years and is used to securely log into bank accounts, among other things. So what makes the blockchain so special? The idea is that no authority manages the integrity of the network. The network manages itself by crowdsourcing decisions. Wait, how does that work if nobody is in charge? Thanks for asking, let’s continue (sip coffee here).

The Bitcoin network agrees on decisions by playing a pointless guessing game that is designed to take about 10 minutes, no matter how many machines play (fun, right?). The winner of this pointless guessing game wins the right to place a new record on the chain. If the network accepts your answer, the record itself is the ‘Bitcoin’. As long as at least half of the computers on the Bitcoin network are well behaved, everyone can trust the registry. Wait what? I’m confused, go back. The ‘Bitcoin’ is a record of the answer to a pointless guessing game. Really? Yup, really. The reason it works is that while it takes billions of guesses to find the right answer, once someone has found it, it is easy for others to check the answer. When a player broadcasts the correct answer to the network, other nodes confirm it and add the record to their chain. The network agrees that the longest chain on the network is the winner, which means the first person to guess the answer will win. So you’ve won… a record on the chain… that is part of the chain… so now you’re part of the chain. Wait what were we talking about? Oh yeah, Bitcoin. So lucky you, you got yourself a Bitcoin (because you won the guessing game).

It’s worth noting that it is trivial to create one of these signed, secure, records. Computers could create billions of signed records at so fast that the network couldn’t possibly keep up. What is the value of a record so easy to generate? I dunno, go ask Nate the Great. In order to counteract the absurdity of this revelation, Bitcoin had the profound insight to agree to play the pointless guessing game (to slow things down). If we slow down how fast records can be created, then the records are now rare. Because the game says so. So it’s still a meaningless record, but you can only make one once every ten minutes. So now it’s valuable. Because it’s rare. Because of the guessing game. By the way, would you like to purchase some bubblegum? I chewed it myself, so it’s one-of-a-kind. I will even provide a certificate of authenticity signed by a private key that only I have so you can be sure that it really is the gum I chewed. Wait where were we? Oh yeah, Bitcoin.

Bitcoin will convert your brain into binary, making it easier to jack into the matrix

So, let’s zoom out for a second. One of my least favorite buzzwords in Silicon Valley is the term disruption, which is the idea that an upstart company provides a service so much better than the current solution that it takes down the multi-billion dollar incumbent that has become fat and slow. And ugly. As coined by Clayten Christensen in his 1997 book the Innovator’s Dilemma the concept is fine, but man do I hate buzzwords. Anyways, disruption. Is Bitcoin disrupting fiat currencies? Common convention within the Valley suggests that a product has to be 10 times better to qualify as a disruption. It has to be so much better, faster, and cheaper, that people will overcome their general tendency to avoid change at all costs, and adopt the new thing. After a while, the disrupting innovation will reach a tipping point where rapid adoption occurs, the new product wins, and David slays Goliath. After that David grows up into a slow, fat, multi-billion dollar incumbent whose products become ripe for disruption. So the cycle goes. What were we talking about again? That’s right, Bitcoin.

Is Bitcoin a disrupter? With regards to speed, costs, and reliability, the answer is no. Remember when we discussed that the network has to artificially slow itself down to make the pointless records rare? Well that same restriction makes actually performing transactions on the Bitcoin network very slow. So slow, in fact, that there is a lively debate going on about ‘scaling’ Bitcoin. I find this idea rather absurd, because the technology has been intentionally hamstrung in order to give itself a (sort of) plausible explanation of value. Don’t worry though, the rock star leadership team over at Bitcoin are sure to come up with a sound solution. Oh wait, who’s in charge of this thing? Oh yeah, nobody. So what if one faction thinks that the Bitcoin network operates too slowly and it should be sped up, while another faction feels like everything is fine? Oh that’s right, that has already happened. In fact, this has already happened. One faction became so convinced of their position that they cut out and made their own, similar-but-faster version of Bitcoin called Bitcoin Cash. Okay let’s make sure you got that. A group of the Bitcoin peeps decided to take their ball and go make a new playground. A faster playground with faster balls. It would be like the president printing his own bills with his head on them and telling everyone that Drumph dollars are better dollars than other dollars. And by design, nobody could stop him. And then somebody could make Hillary dollars. In fact, anyone can make infinity new kinds of dollars (these are called ICOs). So which one is better? Which one should you invest in? Which one represents a better store of value? Is one of them bad? I do not know, go ask your dad.

Some people say that Bitcoin is a commodity, others a store of value, others a chance to make mad cash $$$$. So which is it? Well it’s really quite strange, because Bitcoin is a list of records of the answer to a pointless guessing game that was invented to make the records rare, so that they wouldn’t be pointless, which makes them valuable, because they are rare, because we made them slow, because that makes them rare, because that makes them valuable… wait what were we talking about again? A store of value means a place to… well… store value. It’s like the spot in your attic you keep those first edition Star Wars Episode 1 comics that will one day be worth billions. Most people store money in the bank, because the bank offers protections to keep your money safe, with an added promise by good ol’ Uncle Sam to make good on your savings even if the bank does something stupid. Is that a store of value? As long as the full faith and credit of the US means something, which today it really, really does, then yes that qualifies as a store of value. So how about Bitcoin, does that qualify? Well, if it’s the case that society as a whole agrees that Bitcoin has value, then Bitcoin has value, and you can keep it stored. In your Bitcoin wallet. So that’s good. But what kind of guarantees are there? Can I sell my Bitcoin for parts? What if people stop believing in Bitcoin? How will it feel if that today my stored value is worth $1,000, tomorrow $2,000, and the next day $500? What if people decide they like Bitcoin Cash, and switch to the other? I do not know, go ask your mother.

Elon has more important things to worry about than Bitcoin, like how to best serve our new AI overlords

What about the black market? I heard people use Bitcoin on the black market. Sounds pretty legit. Despite being slower, less convenient, less transparent, and providing a mystifyingly circular answer to the question of what value it represents, Bitcoin does have one thing going for it. Bitcoin can be transferred anonymously. The way the cryptography works, everyone can confirm the Bitcoin record is valid, but only the owner can unlock its secrets and see what’s inside (remember there is nothing inside other than the answer to that pointless guessing game). This does provide a truly unique advantage compared to fiat currencies. This is the single strongest use case for Bitcoin and I imagine the black market might be a large market. If you’re interested, my cousin sells cocaine and is looking for a business partner. I hear the margins are excellent!

So let’s wrap this up. What is the intrinsic value of Bitcoin? To find out, collect a small bundle of sticks from a virgin apple tree and cast them into a river under the light of the new moon. Take a picture of their arrangement in the river exactly 13 seconds they cast, and send it to my aunt Margaret for interpretation (she accepts Bitcoin). Personally I’m mystified by the phenomena. It sounds about as ridiculous as if people became obsessed with investing their life savings in tulips, but of course nobody would be foolish enough to do something that crazy.

You don’t understand Bitcoin because you think money is fake

As Bitcoin continues its wild roller coaster ride and seems to keep climbing higher, I meet more and more people talking about investing in Bitcoin. There are advocates on both sides, some claiming that fiat currencies are dead and cryptocurrencies will replace all other forms of money, while others state that it is a speculative bubble that will pop when people realize there is no underlying value in this new fangled idea.

Bitcoin travels seamlessly through walls of binary code

In order to understand which perspective has more merit, or more concretely, to determine whether or not to invest in Bitcoin, we must understand two things. The first is how and why fiat currencies work (money backed by governments and banks), and second how Bitcoin works. We can then compare and contrast these to understand their respective merits. Excited? Me too!

A common case against Bitcoin is that it has no intrinsic value, no underlying asset of value to support it. The argument goes that because there is nothing of substance under the hood, it is doomed to fail. In response, some contend that fiat currencies are equally without substance, and rely on the same shared belief in a common fiction, referencing a truly excellent fiction in its own right, the book Sapiens.

Looking first at fiat currencies, I came across a blog post that states “A U.S. dollar is ‘backed by’ ‘the full faith and credit of the United States.’ But what exactly does this mean?” (link). It seems that people are unsure what ‘the full faith and credit’ of US government means, so let’s take a quick tour. The federal government has the power to invest in infrastructure, healthcare, retirement, military, and other services. Infrastructure projects result in very real roads, bridges, buildings, and parks, that benefit society in general. Healthcare accounts for 29% of the federal budget, and social security 24% (that’s more than half of the budget). These services save countless lives and provide for basic needs for millions of retirees. These too seem like very real capabilities to me. The military represents 15% of the budget, and its capabilities are readily apparent (link). So when we say that the U.S. dollar is backed by the full faith and credit of the United States, it means that the single most powerful entity in the world, one that in principle and practice has a real and significant impact on the world, supports the dollar. The guarantee of such an organization to make good on commitments should not be taken lightly and carries extraordinary weight.

What about Bitcoin? What is the foundation that it stands on? By design, it does not rely on any organization or power to make good on its promises, but it does have the blockchain! What is the blockchain again? Okay, grab a cup of coffee and try to stay awake for this part.

The blockchain is a list of records(!). The technology required to create this kind of record has been around years and is used to securely log into bank accounts, among other things. So what makes the blockchain so special? The idea is that no authority manages the integrity of the network. The network manages itself by crowdsourcing decisions. Wait, how does that work if nobody is in charge? Thanks for asking, let’s continue (sip coffee here).

The Bitcoin network agrees on decisions by playing a pointless guessing game that is designed to take about 10 minutes, no matter how many machines play (fun, right?). The winner of this pointless guessing game wins the right to place a new record on the chain. If the network accepts your answer, the record itself is the ‘Bitcoin’. As long as at least half of the computers on the Bitcoin network are well behaved, everyone can trust the registry. Wait what? I’m confused, go back. The ‘Bitcoin’ is a record of the answer to a pointless guessing game. Really? Yup, really. The reason it works is that while it takes billions of guesses to find the right answer, once someone has found it, it is easy for others to check the answer. When a player broadcasts the correct answer to the network, other nodes confirm it and add the record to their chain. The network agrees that the longest chain on the network is the winner, which means the first person to guess the answer will win. So you’ve won… a record on the chain… that is part of the chain… so now you’re part of the chain. Wait what were we talking about? Oh yeah, Bitcoin. So lucky you, you got yourself a Bitcoin (because you won the guessing game).

It’s worth noting that it is trivial to create one of these signed, secure, records. Computers could create billions of signed records at so fast that the network couldn’t possibly keep up. What is the value of a record so easy to generate? I dunno, go ask Nate the Great. In order to counteract the absurdity of this revelation, Bitcoin had the profound insight to agree to play the pointless guessing game (to slow things down). If we slow down how fast records can be created, then the records are now rare. Because the game says so. So it’s still a meaningless record, but you can only make one once every ten minutes. So now it’s valuable. Because it’s rare. Because of the guessing game. By the way, would you like to purchase some bubblegum? I chewed it myself, so it’s one-of-a-kind. I will even provide a certificate of authenticity signed by a private key that only I have so you can be sure that it really is the gum I chewed. Wait where were we? Oh yeah, Bitcoin.

Bitcoin will convert your brain into binary, making it easier to jack into the matrix

So, let’s zoom out for a second. One of my least favorite buzzwords in Silicon Valley is the term disruption, which is the idea that an upstart company provides a service so much better than the current solution that it takes down the multi-billion dollar incumbent that has become fat and slow. And ugly. As coined by Clayten Christensen in his 1997 book the Innovator’s Dilemma the concept is fine, but man do I hate buzzwords. Anyways, disruption. Is Bitcoin disrupting fiat currencies? Common convention within the Valley suggests that a product has to be 10 times better to qualify as a disruption. It has to be so much better, faster, and cheaper, that people will overcome their general tendency to avoid change at all costs, and adopt the new thing. After a while, the disrupting innovation will reach a tipping point where rapid adoption occurs, the new product wins, and David slays Goliath. After that David grows up into a slow, fat, multi-billion dollar incumbent whose products become ripe for disruption. So the cycle goes. What were we talking about again? That’s right, Bitcoin.

Is Bitcoin a disrupter? With regards to speed, costs, and reliability, the answer is no. Remember when we discussed that the network has to artificially slow itself down to make the pointless records rare? Well that same restriction makes actually performing transactions on the Bitcoin network very slow. So slow, in fact, that there is a lively debate going on about ‘scaling’ Bitcoin. I find this idea rather absurd, because the technology has been intentionally hamstrung in order to give itself a (sort of) plausible explanation of value. Don’t worry though, the rock star leadership team over at Bitcoin are sure to come up with a sound solution. Oh wait, who’s in charge of this thing? Oh yeah, nobody. So what if one faction thinks that the Bitcoin network operates too slowly and it should be sped up, while another faction feels like everything is fine? Oh that’s right, that has already happened. In fact, this has already happened. One faction became so convinced of their position that they cut out and made their own, similar-but-faster version of Bitcoin called Bitcoin Cash. Okay let’s make sure you got that. A group of the Bitcoin peeps decided to take their ball and go make a new playground. A faster playground with faster balls. It would be like the president printing his own bills with his head on them and telling everyone that Drumph dollars are better dollars than other dollars. And by design, nobody could stop him. And then somebody could make Hillary dollars. In fact, anyone can make infinity new kinds of dollars (these are called ICOs). So which one is better? Which one should you invest in? Which one represents a better store of value? Is one of them bad? I do not know, go ask your dad.

Some people say that Bitcoin is a commodity, others a store of value, others a chance to make mad cash $$$$. So which is it? Well it’s really quite strange, because Bitcoin is a list of records of the answer to a pointless guessing game that was invented to make the records rare, so that they wouldn’t be pointless, which makes them valuable, because they are rare, because we made them slow, because that makes them rare, because that makes them valuable… wait what were we talking about again? A store of value means a place to… well… store value. It’s like the spot in your attic you keep those first edition Star Wars Episode 1 comics that will one day be worth billions. Most people store money in the bank, because the bank offers protections to keep your money safe, with an added promise by good ol’ Uncle Sam to make good on your savings even if the bank does something stupid. Is that a store of value? As long as the full faith and credit of the US means something, which today it really, really does, then yes that qualifies as a store of value. So how about Bitcoin, does that qualify? Well, if it’s the case that society as a whole agrees that Bitcoin has value, then Bitcoin has value, and you can keep it stored. In your Bitcoin wallet. So that’s good. But what kind of guarantees are there? Can I sell my Bitcoin for parts? What if people stop believing in Bitcoin? How will it feel if that today my stored value is worth $1,000, tomorrow $2,000, and the next day $500? What if people decide they like Bitcoin Cash, and switch to the other? I do not know, go ask your mother.

Elon has more important things to worry about than Bitcoin, like how to best serve our new AI overlords

What about the black market? I heard people use Bitcoin on the black market. Sounds pretty legit. Despite being slower, less convenient, less transparent, and providing a mystifyingly circular answer to the question of what value it represents, Bitcoin does have one thing going for it. Bitcoin can be transferred anonymously. The way the cryptography works, everyone can confirm the Bitcoin record is valid, but only the owner can unlock its secrets and see what’s inside (remember there is nothing inside other than the answer to that pointless guessing game). This does provide a truly unique advantage compared to fiat currencies. This is the single strongest use case for Bitcoin and I imagine the black market might be a large market. If you’re interested, my cousin sells cocaine and is looking for a business partner. I hear the margins are excellent!

So let’s wrap this up. What is the intrinsic value of Bitcoin? To find out, collect a small bundle of sticks from a virgin apple tree and cast them into a river under the light of the new moon. Take a picture of their arrangement in the river exactly 13 seconds they cast, and send it to my aunt Margaret for interpretation (she accepts Bitcoin). Personally I’m mystified by the phenomena. It sounds about as ridiculous as if people became obsessed with investing their life savings in tulips, but of course nobody would be foolish enough to do something that crazy.

Rhetorical Crypto Thoughts: Crypto Markets, Fri Dec 01 2017.

OBJECTIVE: These Rhetorical Crypto Thoughts snapshots are not so much about reporting facts, i.e. what the market, fund, or I are doing. I do not aim to report facts like a news service. I aim to explain why certain facts matter to me given how I see the crypto market evolving. It’s fundamentally about the logics driving my crypto thoughts and decisions, and when and how my logic applies to particular coins. A rhetorical perspective, in particular, is my targeted value add. Feedback is very welcome.

DISCLAIMER: This is no investment advice. Nothing herein constitutes a direct or indirect offer to purchase a security. All statements are my own personal opinions.

Retail Investors and Bubble Status
Bitcoin broke through USD10k on Nov 29. Rhetoricals around Bitcoin being another tulip bubble don’t get old: billionaire hedge fund manager Ken Griffin, Citadel CEO, chimes into the bits-a-tulip chorus. Bitcoin is almost the highest growth “asset class” ever, now very close to price growth of the famed Semper Augustus tulip from 1934 to 1637. Google search term “buy Bitcoin with credit card” is at an all-time high, up 4x since 12 months ago. Coinbase adds ever-more user, ever-faster: 300k new users over Thanksgiving, for a total of now 13.7M. Coinbase also become the top-trending app on Apple’s iOS App Store for the first time, a top 10 downloaded iOS app, and is trending at #6 on Google Trends. The trend is global, e.g. India’s Coinbase “Unocoin” is now onboarding 100k users a month.

What do this data mean? Cumulative global retail investor adoption is closing in on the collective threshold point where collective acceptance of crypto’s right to exist becomes significantly more self-reinforcing and ultimately taken-for-granted. We are increasingly exiting the bottom of Roger’s S-shaped diffusion curve. Casual non-randomized twitter surveys of retail investors support the idea. Over the past six months the number of people who think Bitcoin is a bubble has decreased from roughly 50% to 40%. Further, 1 out of 3 instead of 1 out of 7 people now believe Bitcoin is undervalued. Current retail money is pushing us into mini-bubble territory, but nowhere close to the top of the real, first truly global, bubble. What I like to call the mother of all bubbles. A rhetorical school of finance and investing makes a series of counter-intuitive predictions about the patterns of bubbles and crashes. I’ll describe and explain that another time. In short — in analogy to what will be seen as the comparatively tiny internet bubble — we’re in 1995.

Heightened Market Volatility and Rhetorically Familiar Crypto-Assets
A correction of the current mini-bubble to 5,000USD wouldn’t make me sweat, and I wouldn’t expect it to last long. A core reason why is institutional and quantitatively eased money. That money is looking for wealth preservation via diversification in uncorrelated asset classes. It is looking for wealth preservation via predictable or known scarcity, which means a zero rate of inflation or deflation as much as any other rate of inflation/deflation. Crypto-assets qualify: they are verifiably, immutably, and predictably scarce, and on top of that they are cheaply transferable and censorship-resistant. In particular, crypto-assets that are rhetorically legitimized as digital stores of value (e.g. Bitcoin) or digital media of exchange (e.g. Litecoin, Dash, but not yet anonymity coins) should be particularly favoured. That’s because these latter crypto-assets have close comparables that are more easily understood than crypto-assets with more distant comparables (such as Ethereum). I expect the type of actor who paid record-breaking USD450M for the currently unique Salvator Mundi to be crypto’s “Salvator Crypto” during upcoming periods of retail investor-driven market panics. Ultimately, while the proportion of new money from retail investors versus institutional investors increases, and while changes in uncertainty on the regulatory fronts increase (e.g. Coinbase having to turn over 14,355 select accounts to the IRS), I expect relatively higher price volatility across the board.

Institutional Actors: Smart Money and Corporate Adoption
Today, much institutional money and much institutional investors are still side-lined. A major challenge are regulatory reasons that limit investment mandates and available financial services for investing in crypto. There’s a lack of proper infrastructure structure such as custodianship solutions. There’s a the lack of sufficient publicly regulated financial instruments. Together, these two factors represent significant barriers to entry to risk-averse investors, and partly explain why GBTC has been continuously trading at irrational premiums to their underlying (40% premium currently). Retail brokers like IG Group who provide crypto CFDs are hitting the limits of the growing amount of long exposure their clients push them to. More institutional brokers a la JP Morgan and Goldman continue to experience huge customer demand for developing trading desks and financial instruments that enable exposure to crypto.

JP Morgan is now seriously evaluating letting clients trade in Bitcoin futures. Following others like LedgerX, CBOE, and CME market-volume leader (~3.9B contracts traded annually), Nasdaq intends to launch is market-leading retail brand behind its own Bitcoin futures in 2018. Meanwhile, traditional, large, and established corporations are starting to move into crypto-assets as well. For example, Hyundai announced a token sale for their IoT blockchain platform. Spearheaded by the grandson of Hyundai Groups’ founder, the token is meant to support a series of IOT-based ecosystems. Meanwhile, starting mid-Dec, 500,000 daily Goto Mall shoppers in Korea can pay in Bitcoin, and Korea’s oldest bank Shinhan Bank will be piloting a virtual currency deposit service for customers, charging a small withdrawal fee but no deposit and storage fees.

Massive Market Cap Growth: New Money Ain’t the Smart Money Yet
Since the last report, the market cap grew by tens of billions of dollars — again. The market grew by over USD170B from less than 30 days ago. Wednesday’s all-time market cap high: USD345B. That’s double the market cap from 30 days ago. Read again: Market cap doubled from 30 days ago, USD170B new money. Trading volume on Sunday reached half the average volume of Nasdag. Gains are being made across the board from this new money flooding into the system. To market participants, the use of old and lack of new theories and methodologies for pricing and valuing crypto-assets are increasingly irrelevant and/or indiscernible. Much of the current short-term market dynamics follow social, mimetic-institutional patterns. People imitate others, buying because others buy. People reflexively adopt the simplest of narratives, infused with pathos rather than logo — such as what many in the space refer to as FOMO (Fear Of Missing Out). Many people do not buy because they actually understand what they are buying. Many people do not even yet buy because they believe they understand what they are buying. People have fragmented narratives around why, and when, crypto-assets may or may not be valuable.

The Social Construction of Crypto Reality
What we observe is the social construction of crypto reality in action by different, necessary types of stakeholders (e.g. retail, institutional, corporate). What we are seeing is classic legitimation dynamics at the market-category level, reifying crypto as a whole, with Bitcoin as the central prototype of the market category. Rhetoric matters even more than usually in this stage. Why? Because phenomenologically the edifice of legitimation is built upon language, and uses language as its principal instrumentality (Berger & Luckmann, 1966: 82). The current regime is focused on advancing the self-fulfilling prophecy of the crypto market as a whole. As crypto matures, we’ll observe a relative switch from market-level to firm-level legitimation dynamics. This switch will lead to a relative switch from advancing the market’s self-fulfilling prophecy towards advancing firms’ individual self-fulfilling prophecies. I’m monitoring the rhetorical signatures predicting this shift. This shift, in turn, will cause an altcoin bull run similar to the bull-run last spring.

Lots of Diffusion, Little Institutionalization
More concretely, we are currently observing classic diffusion via social contagion and and mimetic as well as symbolic isomorphism via market category-level dynamics. A concrete example of symbolic isomorphism might be insightful. Consider naming artefacts. For example, using the word “Bitcoin” in a coin’s name. BitcoinCash is a well-known one. Or most recently BitcoinGold, a Bitcoin fork touting a proof-of-work change to decentralize mining by making it easier for anyone to become a miner. BitcoinGold reached a market cap of USD6B with just 120 nodes and a minuscule hash rate. This is an astounding relative valuation when compared to more nodally decentralized and established yet lower-ranked alternatives such as Litecoin, the rhetorically cast “BitcoinSilver”. BitcoinDiamond forked from Bitcoin this past week. Rhetoricals emphasize the “free money” aspect of BitcoinDiamond more than its scam-like nature — a rhetorical sign of irrational exuberance. What’s next? You guessed it: BitcoinPlatinum, coming to theatres on Dec 12. You think we’re done? Dec 17: SuperBitcoin, just in time for Crypto Christmas. Point made. Overall, a key take-away is that crypto is diffusing much faster than crypto is institutionalizing in the rhetorical sense. Justifications and the ratio of pro versus con arg are increasingly rationalizing crypto adoption in terms of crypto-asset ownership, yet the rate at which comprehension and taken-for-grantedness evolve is comparatively lower. This has a whole number of cascading implications if you think it through.

Crypto-currencies versus Crypto-Assets
Let me elaborate on one obvious implication. People think they understand crypto because they think crypto is only about currencies. After all, everyone calls it “crypto-currencies”. “Crypto” is the same as “crypto-currencies”; in fact, the category exemplar Bitcoin is a crypto-currency. It’s just digital currencies with some cryptography somewhere. Right? No. One neesd to understand the interaction and purpose of digital signatures, digital scarcity, digital economic incentives, and decentralization to understand the novelty and value of certain crypto-assets as technological discontinuities. I mentioned this point to a friend working in the VC industry. Reply: “Crypto-assets are obviously more than currencies: people also think about crypto as securities, just look at how much people talk about and buy into ICOs”. A rhetorical analysis suggests otherwise. A rhetorical analysis separates symbols into signifiers (e.g. a word) and meanings (a word’s meaning), and contrasts it with referents (e.g. the thing a word refers to). Today, the rhetorical meaning of ICOs revolves primarily around implicit notions of get-rich-quick schemes dealing with “something digital” fueled by Ponzi dynamics. Today, the rhetorical meaning of ICOs revolves does not primarily revolve around explicit notions of super high-risk VC-like investments dealing with securities fueled by business dynamics. In short, rhetorically, crypto-currencies are not yet understood as just one subset within the crypto-asset superset.

Nonetheless, rhetoricals about crypto-assets that are securities, and especially rhetoricals about crypto-assets that constitute utility or work tokens for instance, are growing in attention measured in absolute terms. Still, relatively speaking, rhetoricals of crypto-assets as crypto-currencies are vastly dominating. As a consequence, the self-fulfilling dynamics that determine a (crypto-)currency’s success often confuses people about what ICOs and tokens are — currencies not directly based on material referents (e.g. paper in the case of cash) or securities based on direct material referents (e.g. cash flows)? Rhetorically, I get it. South Koreans currently lead the crypto adoption train with absolute volumes disproportionate to their economic purchasing power and crypto knowledge. Korean’s crypto fervour also caused their exchanges to lead Bitcoin’s world-wide surge past the USD10k price barrier last Tuesday. Perhaps more interestingly for the long-term, Korea’s relative volumes are commensurate with their affinity for early tech adoption, reminiscent of Japan’s early adoption of crypto as a legal currency in April. People with tech-affinities will use crypto-currencies first; Argus-eyed I am tracking these types of people, e.g. the crypto-babies who will be using “Kik” — WhatsApp’s tokenized competitor with over 10million users aged between 14–24.

Washed out Fundamentals
Fundamental “fair value” for crypto-assets that are not crypto-currencies is increasingly washed out. Our rhetorical framework above offers insights into current market irrationalities according to fundamental viewpoints. Irrationalities such as BitcoinGold. Irrationalities like Bitconnect, the biggest crypto Ponzi scheme since OneCoin. Bitconnect has a “market cap” (circulating supply x price) of USD900M, sitting around rank 20 on coinmarketcap. In contrast, Factom, a project with actual income and a clear value proposition is worth 1/5 of Bitconnect, sitting around rank 40 on coinmarketcap. Similarly, 0x, a decentralized exchange on Ethereum, and Civic, a digital identity solution, are worth 1/10th of BitConnect and located around rank 80 — despite commitment-intensive adoption signals of key stakeholders, such as developers for 0x and established identity providers for Civic. At the extreme, “fair value” in the “objective” sense is irrelevant to a rhetorician — from a rhetorical perspective what matters is what the market believes matters. At a high level, a rhetorical perspective suggests that rhetoricals about fundamental approaches to crypto-assets lack clear rhetorical signatures and optimal rhetorical diversity. High interpretive complexity in crypto has not yet been distilled into persuasive dominant logics for fundamental approaches, inhibiting comprehension, taken-for-grantedness, and productive long-term collective action.

In the current, short-term market regime, technical analysis and technical traders will likely do better than fundamental investors. Two reasons why. First, market prices are more significantly affected by the psychology of market participants than a project’s viability. Second, market participants are still largely gun-slinging retail investors. A macro-level implication is that more professional traders are likely to enter the market. These more sophisticated traders will exploit irrationalities and volatility from less sophisticated retail investors through systematic trading approaches. There is also a micro-level implication. Together with the rise of large regulated institutions like CME (~3.9B contracts traded last year) offering derivatives on crypto, the inflow of professional traders will likely increase demand for, use of, and attention towards better (e.g. more secure) financial trading tools than before. Undervalued assets like Iconomi at 1.50$ and 0x at 0.2$ should thus approach fair value earlier than Civic (currently at 0.3$). The immediate portfolio-level implication is a reduced Civic position. The interesting dynamic I am watching is whether we get smart institutional money into the space before the less-smart retail money panics and causes more drastic downward price crashes than would otherwise be possible.

P.S.: This one was a bit more theoretical and with fewer concrete examples than usual. Still experimenting, unendingly.

Form ties with DeepOnion

I heard about Bitcoin on the news in 2012, when the bitcoin price was as high as over $ 100, and I found it incredible that it was a joke and did not pay any attention to bitcoin. Until July this year, bitcoin prices rose again and many Chinese invested in cryptocurrency, I joined the ranks now. In September, China promulgated a policy to stop ICO activities in cryptocurrencies, and many suffered losses and sought investment projects abroad.

I registration at Bitcointalk on October 8th, for the first time, I joined the well-known bitcoin community. While examining various coin information, DeepOnion posts and signatures were seen everywhere, as if everyone was talking about it. DeepOnion is very popular, I saw the official post page up to more than 1600 pages, this is what I know most people reply to the post. As a result, I was curious about the information, DeepOnin is an anonymous and 100% untraceable cryptocurrency sent through the TOR network. people predict it will be the next Dash coin, and even comparable to bitcoin.

At the moment I’m excited to sign up for DeepOnion Community, I post the first self-introduction post in the community. This is not easy for me, I use Google translation software to access information and talking only. I tried to join the airdrop and found out that my account was rejected and that I needed to meet the conditions to participate in the airdrop of the onion. I was determined to hold Onion coins, I bought 600 onions at the cryptopia.co.nz exchange, I will waited for DeepOnion airdrop.

I continue to be active at Bitcointalk and DeepOnion, and soon my account level has risen also. At this point, The DeepOnion development team launched a new reward system as a means of showing appreciation to active members of the community who are always offering helpful posts and promotional materials to advance the course of DeepOnion. Over the next few weeks, I was very excited to actively participate in various community tasks, receive DeepPoints rewards, and I get free Onions at every Sunday. After DeepOnion development team changed the airdrop registration time to November 1st, I met all the airdrop conditions. This is my first time joined the airdrop, and I received the Onions at this Friday. I’m so happy.

DeepOnion development team launched DeepPoints, community exceed has more than 5,000 members, the development is very rapid, Onion prices have been rising also. With the power of the DeepOnion community, I believe DeepOnion has lots of potential, It is definitely a coin that is worth investing. Trust me, join the DeepOnion community! https://deeponion.org/community/

Form ties with DeepOnion

I heard about Bitcoin on the news in 2012, when the bitcoin price was as high as over $ 100, and I found it incredible that it was a joke and did not pay any attention to bitcoin. Until July this year, bitcoin prices rose again and many Chinese invested in cryptocurrency, I joined the ranks now. In September, China promulgated a policy to stop ICO activities in cryptocurrencies, and many suffered losses and sought investment projects abroad.

I registration at Bitcointalk on October 8th, for the first time, I joined the well-known bitcoin community. While examining various coin information, DeepOnion posts and signatures were seen everywhere, as if everyone was talking about it. DeepOnion is very popular, I saw the official post page up to more than 1600 pages, this is what I know most people reply to the post. As a result, I was curious about the information, DeepOnin is an anonymous and 100% untraceable cryptocurrency sent through the TOR network. people predict it will be the next Dash coin, and even comparable to bitcoin.

At the moment I’m excited to sign up for DeepOnion Community, I post the first self-introduction post in the community. This is not easy for me, I use Google translation software to access information and talking only. I tried to join the airdrop and found out that my account was rejected and that I needed to meet the conditions to participate in the airdrop of the onion. I was determined to hold Onion coins, I bought 600 onions at the cryptopia.co.nz exchange, I will waited for DeepOnion airdrop.

I continue to be active at Bitcointalk and DeepOnion, and soon my account level has risen also. At this point, The DeepOnion development team launched a new reward system as a means of showing appreciation to active members of the community who are always offering helpful posts and promotional materials to advance the course of DeepOnion. Over the next few weeks, I was very excited to actively participate in various community tasks, receive DeepPoints rewards, and I get free Onions at every Sunday. After DeepOnion development team changed the airdrop registration time to November 1st, I met all the airdrop conditions. This is my first time joined the airdrop, and I received the Onions at this Friday. I’m so happy.

DeepOnion development team launched DeepPoints, community exceed has more than 5,000 members, the development is very rapid, Onion prices have been rising also. With the power of the DeepOnion community, I believe DeepOnion has lots of potential, It is definitely a coin that is worth investing. Trust me, join the DeepOnion community! https://deeponion.org/community/

ICO Alert Report: Bloom

ICO Alert does not endorse or recommend participating in any initial coin offerings. ICO Alert receives a promotional fee for the production of this ICO Alert Report. Please click here for additional important information.

ICO Alert Quick Facts

  • 0.001421 Ether per 1 BLT token; 75,000,000 of 150,000,000 BLT sold
  • Decentralized credit scoring through Ethereum and IPFS.
  • ICO whitelist now available; ICO starts November 30, 2017 and ends January 1, 2018.
  • Luis from Aragon and Joe from District0x in advisory roles.
  • Over 15,000 Ether raised already and the initial live release is three months ahead of schedule

What is Bloom?

Bloom is a protocol and blockchain-powered platform for assessing credit risk through the process of identity verification as well as enabling access to credit staking. The goal of the Bloom network is to securely expose anonymized information about financial networks and historical payments so both lenders and borrowers benefit.
In layman’s terms, Bloom is a global decentralized credit scoring system available to anyone — even the unbanked and underbanked.
Bloom’s flexible ecosystem will allow users to have access to credit services which work globally and are extremely secure and transparent thanks to the blockchain’s inherent features.
Bloom aims to solve several key problems in the credit rating system by:
 — Eliminating the risk of identity theft.
 — Providing an efficient global credit scoring system.
 — Bringing efficiency and improvements to an outdated credit assessment system.
— The Bloom Team

Q&A

ICO Alert: How does the Bloom token (BLT) function within the platform and why is it needed?

Bloom: The Bloom token allows organizations to participate in evaluating user identities and creditworthiness. It also serves as the voting token to guide the evolution of the Bloom protocol.
BLT serves four major functions for the Bloom protocol:
Protocol Voting — BLT will perform the function of a voting token and serve as a proposal mechanism for instituting changes to the BloomScore phases and algorithms. This proposal mechanism allows Bloom to maintain a credit scoring system that evolves according to the needs of its users.
Accrediting Attesters — Payment history providers and lenders will need to submit proposals to the ecosystem regarding why they are trustworthy, what their business does, and why their data should be included in the BloomScore. These organizations pay BLT as an application fee and, in turn, users who vote on their eligibility will receive a portion of that fee.
Network Currency — Identity attesters and risk assessors on the Bloom network will be able to set prices and receive payment for their services in BLT.
Invitation System — While the network is in its infancy without a wide array of attesters, it is more susceptible to attack. In order to increase the immediate resilience of the network, users will be required to put up a small amount of BLT as collateral for users who they invite.
If the Bloom Protocol didn’t have the BLT Token, then it would not be feasible to accredit data providers and identity attesters on a global scale. You need to have an element of decentralized governance in order to actually execute on the long term plan of the Bloom protocol. If there were no BLT Token, then it would be just a single legal entity or person dictating how the scoring mechanism works. With the token mechanism, other key players will be able to introduce new proposals and vote on them to help drive the future of the Bloom protocol.

ICO Alert: Describe BloomScore and what are some of the similarities, differences, and advantages it will offer over current credit scoring such as FICO?

Bloom: BloomScore is a dynamic and inclusive indicator of an individual’s likelihood to pay debts that adapts to the maturity of a user’s credit history. This score feeds in from the user’s BloomID as well as the data stored as part of the BloomIQ system.
The initial release computes a simple score based on past debt obligations and payment history. As the network grows with time, we expect to increase the sophistication of the score based on what usage best predicts outcomes. Proposed improvements will be vetted and voted on by the participants in the ecosystem in response to how real-world use of the protocol unfolds.
This means that the Bloom Score will evolve far more rapidly than legacy, highly centralized credit scoring systems.

ICO Alert: Describe BloomID and how it plans to address global identity. What are some of the problems that it will be solving?

Bloom: BloomID lets users establish a global, federated identity with independent third parties who publicly vouch for their identity information and legal status. These are some of the core elements of BloomID:
All of BloomIDs are federated: The creation of a BloomID must be tied to a real world identity.
Trusted attesters verify identities: The Bloom protocol relies on established nodes to “attest” to a user’s identity information. These verification providers are not anonymous and are the same verification providers that financial institutions and governments currently use.
Trusted attesters verify identities: The Bloom protocol relies on established nodes to “attest” to a user’s identity information. These verification providers are not anonymous and are the same verification providers that financial institutions and governments currently use.
BloomID is designed to mitigate fraud in the network:
Fake identity creation is mitigated: While a user could apply for a BloomID with fake information, it would not receive attestations. Just as a transaction without confirmations may not be valid, an ID without attestations may not be legitimate. It also isn’t a guarantee that a transaction is valid if just one or two confirmations are present. Similarly, one attesting node does not necessarily guarantee a valid ID. However, for every attestation that an identity receives, the probability of that Identity being fake drops.
The costs to attack the Bloom protocol exceed the financial gain from a loan: Each identity attestation requires payment of BLT. This means that brute forcing PII until an attestation is received would require exponential cost and would be easily detectable.
A brute forced identity will not have credit or payment data: In the event that a fraudster successfully generates a fake ID on the Bloom protocol, they would not be able to import any payment history. Payment history is pulled in from different attesters (cell phone companies, utility bill companies). This means that even in the worst case outcome of a fraudulent BloomID, the financial impact on the Bloom protocol would be minimal as this user would not qualify for any loan of financial substance.
There are many kinds of identity attestations that can be supported by BloomID. Below is a non-exhaustive list of attestation types:
1. Electronic ID Verification: Verification of an identity data by cross-checking supplied information with a multitude of public records, private records and governments from around the world.
2. Documentary Verification: Verification of an identity document, like a passport or a driver’s license, and whether the image of the person on the document matches the user submitting the scan of the document.
3. Social Verification: Verifying the identity information of users via social networks like Facebook and analyzing their friend graph to help reduce fraud.
4. Sanction Screening: Ensuring that a user is not on one of the many global sanction programs operated by various governments around the world.
5. Politically Exposed Persons: Ensuring that a user is not considered to be a politically exposed person (someone with a prominent political function who is at high risk of potential bribery or corruption involvement).

ICO Alert: Describe the current problems involved with cross-border credit scoring and how the Bloom protocol plans to solve them?

Bloom: The problem is simple, but devastating: credit histories are not portable across countries, forcing individuals to re-establish their credit track records from scratch when they relocate. The Bloom protocol starts with communities within the U.S. who are underrepresented in the credit system to hone the initial score. Internationally, we are looking at inferring different lending properties for a given person by looking at the larger overall network they seem to be a part of.
For example, as you crawl through the connected nodes on a user’s graph of peer-to-peer credit vouchers on Bloom, if a user has 25 edges/stakes, you end up visiting approximately 300,000 nodes by extending three or four nodes out. Each of these nodes will have their own reliability score, a certain peer score, a certain number of loans, different repayment characteristics, and even unique sizes of loans. At a global level, this influences what a risk evaluator can assume from your history and that risk makeup will change based on the country in which you’re currently located. This would form the basis of a more in-depth analysis that will be conducted on a market-by-market basis to help shape the score on a global level.

ICO Alert: What is BloomIQ and can you walk us through a potential use case?

Bloom: BloomIQ is a system for reporting and tracking current and historical debt obligations that are tied to a user’s BloomID and encrypted and stored on IPFS.
The primary use case of BloomIQ is to allow a user to import existing credit history to this decentralized system, reducing the need for credit-established users to build up their credit quickly.

ICO Alert: How far along is the project today and when can contributors expect to use the platform? What does the roadmap look like for the rest of 2017 and 2018?

Bloom: Development is progressing incredibly quickly. We are pleased to announce that the first four major milestones have been completed ahead of schedule. The initial live release of the platform will launch in December, three months ahead of schedule.
UI and Interface for Bloom Invitation & Voting System
Status: Complete
Original Timeline: January 2018 (Completed ahead of schedule)
Begin Working with Five Initial Lending Partners
Status: Complete
Original Timeline: March 2018 (Completed ahead of schedule)
We’ve announced a number of lending partners, including: ETHLend, Fundary, Everex, Lendoit, Self Lender. We will continue to publicly highlight partners we are working with over the next few months. We are onboarding early data providers and lending partners from now through next year.
Secure Protocol Expansion Outside of Lending
Status: Complete
Original Timeline: April 2018 (Completed ahead of schedule)
Traditional credit reports are used outside of lending for ID verification, anti-fraud, mitigation of Sybil attacks, etc. Bloom is a protocol-level solution for all dApps, not just lenders. While our initial focus is lending, we have secured our first trials for mainstream applications.
Decentralized micro-task protocol, Gems is using Bloom to prevent Sybil attacks and ensure a high quality user base.
Bloom Invitation System & Voting
Status: Complete
Timeline: Deployment will occur in mid-to-late December
Original Timeline:
April 2018 (Completed ahead of schedule)
Voting with a Bloom account
Phase 1 will allow for users to use BLT to invite their friends and colleagues to seed the initial network securely. Users with BLT will be able to vote on early development-related proposals for the future of the network.
Timeline: In progress
Bloom Token Sale
Status: Ready
Timeline: November 30, 2017, 9 a.m. PT — January 1, 2018, noon PT
Bloom is fundamentally a network. To reach its full potential, it is critical that the community is strong from the beginning. We’re building a multi-sided protocol, with lenders, borrowers, and data providers. If any of those three aren’t there, the value is eroded for everyone else. We’re creating something novel, and it’s going to impact all kinds of people from all around the world — it’s vital that many perspectives and interests are taken into account as we build out the protocol.
Tokens Become Transferrable & Usable in the Network
Status: Ready
Timeline: January 1, 2018
Following the completion of our token sale, the BLT tokens will be transferable and able to be used in our voting dApp.
BloomID: Identity Matching
Status: Currently ahead of schedule
Timeline: Q1 2018
Phase 2 will deploy an application allowing users to verify their identity and get matched with their BloomID. During this phase, users will be able to confirm identity information and connect data for BloomIQ.
Credit Staking
Status: On schedule
Timeline: Q1 2018
Peer to Peer staking modules will be built first, followed by organizational staking. We are working with a number of peer-to-peer lenders and data providers to collect the data and partners needed.
BloomScore and BloomIQ: Creditworthiness Assessment
Status: On schedule
Timeline: Q2 2018
This phase will allow users to check their score, as well as open up a developer ecosystem to lenders to check a given user’s BloomScore, providing sufficient privileges are granted from the loan recipient. BloomIQ will launch alongside this.
Lending Tests for Lender Partners
Status: On schedule
Timeline: Early Q2 2018
In early Q2, we will start doing live tests with select lenders to offer trial loans to borrowers on the Bloom network. These will not be tied to real fiat.
Live Loan Trials for Lender Partners
Status: On schedule
Timeline: Mid-late Q2 2018
We have secured initial lenders interested in processing live loans through Bloom network. We expect this to begin immediately following our lending tests in early Q2.
Bloom User App Release
Status: On schedule
Timeline: Late Q2 2018
We will release the first version of the Bloom app, enabling a easy, secure, mobile interface for network participants. This will also allow users to check their score and participate in the ecosystem even easier.
Eventually, this will expand to a fully decentralized lending ecosystem.
Lender Partnership Program Open
Status: On schedule
Timeline: Early Q3 2018
By Q3, there will be general availability for anyone to do loans. This will be a developer ecosystem for the network to accept lenders that do not necessarily need to go through approval of the Bloom team.
Bloom Credit Protocol Launch + BloomCard
Status: Preliminary work under way
Timeline: Q3 2018
Once the risk assessment and scoring protocol is complete, Bloom will launch the BloomCard. The BloomCard will serve as a brand new way for individuals to display creditworthiness and improve their BloomScore.
Democratized Autonomous Credit Infrastructure
Status: Preliminary work under way
Timeline: Q4 2018
Over time, BLT flows through the network. Lenders, data attestation providers, and borrowers will all own Bloom Network Token and their amount acquired will correlate to their influence on the network. We will make moves towards international expansion at this point, upon establishing a robust credit framework.

ICO Information
The ICO will begin on November 30, 2017 at approximately 9 a.m. PT and ends on January 1, 2018 at noon PT. These times are approximate because of the way the smart contracts handle block times. According to the Bloom website, the sale may start a few hours earlier or later. For the most up to date start time on November 30, 2017, visit the Bloom website.

There is a whitelist that can be applied for here. BLT is an ERC-20 token, so it’s important that contributors use ERC-20 compatible wallets to send funds to the ICO smart contract, and to receive the BLT tokens.

There is no individual cap on contribution and there is a minimum contribution amount of 0.001 Ether. The hard cap of the ICO is $50,000,000 and Ether is the only accepted form of contribution.

The price is 0.001421 Ether for each 1 BLT token. For more information on the ICO visit this Bloom blog post.

Token Distribution Information
There are a total of 150,000,000 Bloom tokens (BLT) being created, with 75,000,000 available during the ICO. Tokens will be distributed when the ICO ends on January 1, 2018.

The allocation of the 150 million BLT tokens is as follows:

50%: ICO (75,000,000 BLT)
40%: The Bloom company (60,000,000 BLT)
10%: Community programs (15,000,000 BLT)

Use of Crowdsale Proceeds
Funds will be used primarily for the methodical orchestration of business development, user acquisition, legal, and compliance work in each of the new markets we enter. For more detail on our use of funds, please read this blog post from the team.

Team
Jesse Leimgruber, Founder
Linkedin
Jesse studied computer science at Stanford University and is an advisor to The Alchemist Accelerator, a Thiel Fellow, and a mentor at the European Innovation Academy. He’s served as a guest lecturer at Stanford University, The University of Southern California, and DePaul, among others. Prior to Bloom, Jesse founded enterprise analytics software, NeoReach. NeoReach provides analytics for Fortune 500 brands including Microsoft, Citrix, and Walmart, among others.

Alain Meier, Founder
Linkedin
Alain Meier studied computer science at Stanford University and served as a research scientist for Stanford Bitcoin Group. Founded by 21 CEO, Balaji S. Srinivasan, The Stanford Bitcoin Group is Stanford University’s blockchain research organization. Alain developed a number of open source cryptography projects including CryptoNote.me, an open-source service allowing users to send encrypted, single-view messages in seconds. Following his work at Stanford, Alain is serving as the CEO of compliance and identity verification company, Cognito (formerly BlockScore).

John Backus, Founder
Linkedin
John is a founding research scientist at Stanford Bitcoin Group and studied computer science at Stanford University. He is a Thiel Fellow and co-founder and CTO of the identity verification company, Cognito. John is an expert at identity infrastructure, previously engineering data preprocessing algorithms for large-scale entity extraction for deterministic and probabilistic record linkage. This is currently implemented into Cognito’s core identity resolution and record linkage infrastructure, now processing identity and compliance for tens of millions of cryptocurrency users globally.

Ryan Faber, Founder
Linkedin
Ryan Faber developed a behavioral recognition methodology designed to leverage online psychographic data for user acquisition. Using his research, Ryan launched Flatiron Collective. Flatiron now manages over $100 million annually in digital marketing spend. His developments in user acquisition have allowed him to become a 3x Webby Award winner and his methodology has been attributed to the exponential growth of numerous billion dollar brands.

Daniel Maren, Founder
Linkedin
Daniel Maren studied computer science at Stanford University. He founded the solar power electronics company, Dragonfly Systems, which was acquired by SunPower Corporation in 2014. Daniel remains an advisor to SunPower, guiding solar and storage product efforts and international business development. He has expertise in international infrastructure development, finance, and energy, where he is a recipient of a Forbes 30 under 30 award. Previously, he architected a biofuels program for Indonesian farmers, who struggle with seed and equipment financing.

Social Media
Website
Slack
Twitter
Blog
Telegram

View the Bloom Website here.

View the only comprehensive list of active and upcoming ICOs here.

References
(1) Bloom Website, Bloom, (2017)
https://hellobloom.io/

(2) Bloom Whitepaper, Bloom, (2017)
https://hellobloom.io/whitepaper.pdf


ICO Alert Report: Bloom was originally published in ICO Alert on Medium, where people are continuing the conversation by highlighting and responding to this story.

Crypto20 ICO Opportunity

As it stands there are 19 hours left in the C20 token sale and investors are presented with a unique opportunity to enjoy flip returns along with potential hodl returns.

How is a token tied to a ‘stable’ index fund flippable? More value than just an index fund?

The reason I say C20 is flippable is because it differs heavily, in a good way, from your standard index fund. With your average index fund you would throw say $1000 at it and the fund would then take that money to re-balance portfolios and grow the fund size.

However in the case of C20, when that ICO timer reaches zero contributions will cease and the fund will never accept new contributions. Instead opting to simply let the fund ‘sit and grow’. This means that anytime an investor cashes out their C20 they will be taking tokens out of circulation. And until another competing index fund emerges (quite likely), any investor craving such an offer will need to purchase tokens from users directly off of the exchanges.

What we will get is a situation where the tokens base price is tied to the assets, and its value is allowed to run up above the underlying assets due to its current monopoly on the index fund market. Obviously this will all come undone when another competing index fund offers its’ services (assuming they are better or comparable) and new investors choose to invest their instead of paying a premium.

Looking back this section covers a bit more than just flipping, so I altered the title to suit.

But won’t this mean I have to wait for the fund to start performing before taking profits?

The only time restriction before you could feasibly take a nice amount of profits is the time before trading is enabled (according to devs this will happen in December or early January, I believe they’re locked due to audits and security).

As soon as trading and buybacks are unlocked you will be able to trade back to your original investing currency most likely at a profit. This is because the presale marines locked up their 90c token prices a month ago and since then the market bull run has cause the funds value (measured through NAV) to peak at $1.30. So essentially main sale participants will buy $1.30 worth of assets for $1.10, now this has of course been reduced due to the market correction we experienced but the principles should remain.

If at the closing time of the ICO the NAV exceeds the buy in price by a decent enough margin (minimum 5c) you will be rewarded with much more bang for your buck. Consider it a ~5% bonus except the token you’re buying is tied directly to real assets.

My Concerns and What Could Go Wrong

While the fundamentals are very strong and I believe in C20 as a solid investment there are a few points of concern to be noted:

  1. If crypto crashes your funds are stuck in an ICO.

While this is true for all ICOs, an ICO that is tied directly to market performance is much, much more perceptible to market swings.

2. You have to trust the individuals running the ICO.

This is true for every ICO, but still is the main weakness in this project if I were to place one. All the individuals involved seem to have reputable LinkedIn projects, but due diligence is highly advised.

False concerns

One concern may be that the token price will remain parallel on the exchanges, or may even drop below. This is unlikely as, should it happen, every man and his dog will want to buy those tokens and go trade them in. When they get traded in the C20 token will be removed from circulation and thus it will push up scarcity and price.

I predict after the first month we will see very few tokens burnt as they should be selling for premiums on the exchanges.

Note: I will edit for grammar later, this was rushed. Sorry.

PS: I don’t know if this is really necessary, seeing as all my calls are gold, but — this is not financial advice, utilize your own brain power before acquiring your bags.

xCHAINge — the future is approaching

xCHAINge is your best choice for anonymous and secure token exchange and storage. It is 100% decentralized and offers the best UI/UX features of modern online banking apps.

User-friendly interface

xCHAINge is based on the best examples of mobile banking applications to offer you one of the simplest UI and make your work with our wallet easy and user-friendly.

Complete security

Due to the Proof-of-Snitch protocol your assets are in absolute security. Other users or Matchers cannot cheat you or threaten your deals in any way. All your transactions are insured by Arbiters, Notaries and Matchers` security deposits.

Fastest transactions

With xCHAINge you can be sure to have almost the same transaction speed as at centralized exchangers due to our unique Matcher nodes. You will not have to spend time anymore waiting — your transaction times are now kept to minimum.

Lowest prices

There are no operational costs at xCHAINge, only standard transaction fee. Matchers and Mediators have their own prices providing a fair competition and lowest prices.

Anonymous

Unlike many other online applications you do not have to sign up to xCHAINge or provide any of your personal data. All your transactions are still anonymous no matter who you are.

First decentralized system

Ariadna network, which is the foundation of the xCHAINge system, provides completely decentralized transactions without any external regulation. It is 100% risk-free giving you a perfect opportunity to get all your storage and exchange deals safe and anonymous.

Features

  • Storing your ERC-20 tokens in the autonomous wallet
  • Trading P2P on-chain and cross-chain with any crypto or offline asset
  • Build custom Smart Contracts
  • Creating and trading crypto-derivatives
  • Intensive trading ERC-20 tokens and crypto currencies
  • Exchange physical goods for cryptocurrency without the need to trust your assets to a third party

User-friendly interface

Members of the ×CHAINge team were involved in creating the interface of modern online banking apps such as “Tinkoff Investments”* and the QIWI Wallet, which are considered to be among the most user-friendly and easy-to-use digital financial products. The interface of ×CHAINge will be intuitive and entirely familiar to anyone who used an online banking app before.

Tinkoff Bank was named the largest independent global direct bank by Frost & Sullivan, in Oct. 2016, and the Best Digital Bank in the CEE by Euromoney.

Modern Technologies

  • Ethereum
  • 0x Protocol
  • Ariadna Architecture
  • Proof-of-Snitch protocol

Hakuna Matata Altcoins

The state of the Altcoins market in this bitcoin rally first gets me singing hakuna matata!

Then singing the chorus of Faith Evans in ‘hopeful’.

Which goes…

Cuz I’m hopeful, yes I am, hopeful for today,
Take this music and use it
Let it take you away,
And be hopeful (hopeful) and he’ll make a way
I know it ain’t easy but that’s okay.
Cause we hopeful

Because each time a breakout wants to happen, Bitcoin rally keeps killing shines.

But we hopeful!

Cryptoweek 24.10.2017

Another week in the wake of negative correlation with bitcoin making new all-time-highs and the rest of the crypto space showing up in red territory vs. BTC on very low volumes. This has made Bitcoin reach again a market cap of 58% of all Crypto currencies, the highest value since May. Some reasons behind this Bitcoin rally are Investors switching from Alts into BTC with the hope to get hold of some Bitcoin Gold after the fork on 18th November. Also new capital has most recently flown into Bitcoin rather than Alts. Light in the tunnel for Altcoins could be that similar patterns with Bitcoin decoupling from the rest was observed already a couple of times before, most prominently in September 2013 and November 2015. Each Bitcoin rally was then followed by a massive bounce in Alt Coins. If Tuesday’s move is a turn in the general trend and the start of the anticipated Alt Coins run has to be confirmed yet. Nevertheless a shaky period is expected to be ahead of us until the scheduled Bitcoin fork on 18 November.

ETH/EUR
ETH fully in the hands of two forks (Byzantium and BTC Gold). After Tuesdays bounce above 258 we target the 285 and a break out of the most recent negative trend.

BTC/USD
Massive rally and chase for new ATH’s possibly to continue short term. Most important support at 5114 USD, last week’s low.

IOTA
After being beaten down massively we see a potential bottom. Solid fundamentals with several new partnerships announced and the biggest upgrade since inception scheduled for early Dec are expected to support the story.

ICOs highlights:
Dragonchain (https://dragonchain.com) was originally developed at Disney’s Seattle office in 2015 and 2016 as the Disney Private Blockchain Platform. The platform was later taken over by the non-profit Dragonchain Foundation as open source software.

Dragonchain simplifies the integration of real business applications onto a blockchain and provides features such as easy integration, protection of business data and operations, currency agnosticism, and multi-currency support.

Tokensale started Oct. 2nd and ends Nov 2nd. 433’494’437 tokens to distribute.

Events:
24 October — Bitcoin Meetup with Dr. Craig S Wright, Zurich
25 October — Regular Zurich Bitcoin Meetup
18 November — Bitcoin Fork


Cryptoweek 24.10.2017 was originally published in visionandblog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Stellar Crypto Investments: How to Get There First

There’s a rumble in the virtual jungle. The smoke signals are beginning to soar, and the drums are pattering out a rumour. X, Y, or Z’s crypto tokens are about to get HOT.

You head across to the website; you’ve missed the ICO.

You head across to your usual exchange; the tokens cost how much?

And next to nobody is selling.

The moment has passed. You’re still one step away from your goal of doubling your income through clever investment. But next time… Next time, you’ll be there; leading the charge at the launch of the next big ICO before anyone else has even thought about it.

Why? Because next time you’ll have the knowledge to find the next big crypto investments before they start to become popular.

Let’s start at the beginning.

What are Crypto Assets?

A crypto asset, or currency, is a medium of online exchange akin to fiat currency in traditional commerce. Created by individuals, but given value by others, crypto assets are based upon the use of cryptography to produce extremely secure digital units, which can then be bartered for services, goods, or other forms of currency.

The first crypto asset to be produced — and still the best-known outside of the technical community — is Bitcoin. ‘Coined’ in 2009, Bitcoins were originally intended to be used simply for streamlining digital transactions. They are now known and used throughout the world, and at the time of writing, one Bitcoin is worth £6,232 (or UD$8,000): not a bad exchange rate! The Bitcoin early investment bird has well and truly flown, but while it used to be unique, there are now more than 1,100 cryptocurrencies available, each purchasable for a different rate, and each attracting different markets. Investing in them — and the companies that use them — is fast becoming big business, but it’s a business that anyone with access to the internet can join in.

How Can You Invest in Crypto Assets?

There are two solid ways to become involved in the crypto investment movement: you can buy the currencies and trade them as they rise and fall, or you can buy the currencies and invest them in companies via an ICO (initial coin offering). If you’re feeling confident, you could also create your own crypto money, but unless you already have a strong digital asset (a business, for example) to use as a form of virtual collateral, you probably won’t get anywhere fast, so we’ll stick to the first two options here!

Anyone can purchase cryptocurrency, you just need to know how to do it, and that’s becoming easier by the day. Simply visit a reputable online exchange — such as Etoro, Plus500, or Avatrade — open an account, create a virtual wallet and select your currency of choice. Once you’ve paid down your fiat funds, the cryptocurrency is yours to do with what you will, although your first action should be to securely store it — a high-quality USB stick and a fireproof strong box are usually advisable, with a paper trail of serial numbers, just in case.

Once you have your currency, you can either just sit on it — those people who bought Bitcoin when it was going for just US$12 a pop and didn’t let go, are certainly sitting pretty just now! — or trade it.

Trading cryptocurrency on the open exchange can become a full-time job. China’s Millennials are leading the way in this, starting low and trading themselves out of poverty, one crypto asset at a time. If you have an eye for numbers, it’s possible to make a profit in a very short space of time, but you do need nerves of steel as the world of crypto trading is far from stress-free.

An alternative option is to invest your funds in a company’s ICO. An ICO is similar to a bricks and mortar business floating on the stock exchange; in return for your investment, you gain a stake in the business; a token which you can later trade with other investors for a crypto or fiat return. The majority of ICOs are used to help with the launch of a business; turning dreams into a reality, and they carry all of the attendant risks that you would associate with helping out a new venture. However, there are occasional examples of going concerns — such as FastInvest — launching an ICO in order to facilitate company growth.

Beginning with a short pre-ICO on December 1st 2017, and continuing with a month-long ICO, commencing on January 4th 2018, the FastInvest ICO is to help with the funding of new products — such as the FastInvest app and crypto payment card — and the opening of new offices, including the company’s first in America. Established in 2015, with more than 8,500 customers under its belt, FastInvest presents a rare opportunity to become part of something already successful, and consequently, the 666 000 000 FIT (FastInvest Tokens) are expected to fly.

It’s this kind of opportunity that you need to look out for.

How Can You Find Crypto Assets Before They Become Popular?

To start with, you need to get yourself in a position where you can really hear those jungle drums so you can start your research as soon as the first beat sounds and before anyone else even gets a whiff of smoke in the air. To do this, you need to join crypto communities and sign up for message boards, such as Crypto Community, CryptoCurrencyTalk, and Slofile. This is where you will hear about up and coming ICOs, crowd sales, and new currencies emerging on to the market.

Now, you’re obviously not going to leap into action and start investing in every ICO that makes the message boards, so this is where you need to put in a bit of effort, but if it helps you to find a mortgage deposit, or feel a bit more comfortable in retirement, then it’s surely worth that effort.

Thoroughly analyse the asset and the underlying business before you invest. Read the White Paper and ask the following questions: Is the business viable? Is the valuation reasonable? Are they offering a product that you might be interested in yourself, as a customer? If not, do you know anyone else it might appeal to? In other words, is there a ready-made market for this business; is it likely to make money?

Next, you need to look at the foundations of the business: who is behind the scheme? Do they know what they’re doing? Do they have any business acumen, or is there a string of failed enterprises behind them? Are there enough people with the relevant skills involved to make the venture a success?

Then we get down to the economics. Are the tokens being sold at a rate that leaves room for appreciation? FIT, for example, will be sold at a rate of 1,000 tokens for ETH1 (one Ethereum) during the January ICO, but early pre-ICO buyers have the opportunity to gain a 40% bonus, which obviously presents an increased potential for future profit.

Something else to look for is whether the tokens are integral to the function of the network — if you’re investing in something that has an innate value and can be used as an independent asset, perhaps to access certain areas of service within the ICO-issuing company, or to purchase products, rather than just acting as a stock would in established business, then it is liable to assume greater value and be in greater, later demand.

Finally, once you’ve invested,you need to take a breath and be patient. ICOs are not the same as a day trade; you can’t make a profit from a quick exchange. The FastInvest ICO, for example, launches in January 2018, and although the FIT will be exchangeable as soon as the ICO closes on February 4th, 2018, it’s not expected to make the major exchanges until September of that year, and that’s where the potential to really make gains on your investment lies. Whichever ICO you put your funds into, if you’re glued to your screen, watching the fluctuations in value during the first couple of months you’re going to spend the time lurching from depression to elation and back again, on a regular basis. ICOs need time to establish and prove their worth. Once they’re showing that they are doing what they said that they would do — in the case of FastInvest, that’s launching the P2P lending investment app, opening the American office, and releasing the very exciting payment card, which will allow holders to use their cryptocurrency out in the real world — that’s when the big players will become interested, and token prices will rocket. Until then, keep your sanity and hold fire; keeping a weather-eye to make sure that the business isn’t about to tank is a good idea, but don’t become obsessive.

In the grand financial scheme of things, crypto assets are still in their formative years, but with the crypto market growing 1,200% this year alone and experts agreeing that this isn’t just a temporary bubble waiting to burst, if you keep your ear pressed to the virtual jungle floor, research potential ICOs and invest wisely, you could soon find yourself with a crypto nest egg of far greater value than all of your fiat assets.

Stellar Crypto Investments: How to Get There First

There’s a rumble in the virtual jungle. The smoke signals are beginning to soar, and the drums are pattering out a rumour. X, Y, or Z’s crypto tokens are about to get HOT.

You head across to the website; you’ve missed the ICO.

You head across to your usual exchange; the tokens cost how much?

And next to nobody is selling.

The moment has passed. You’re still one step away from your goal of doubling your income through clever investment. But next time… Next time, you’ll be there; leading the charge at the launch of the next big ICO before anyone else has even thought about it.

Why? Because next time you’ll have the knowledge to find the next big crypto investments before they start to become popular.

Let’s start at the beginning.

What are Crypto Assets?

A crypto asset, or currency, is a medium of online exchange akin to fiat currency in traditional commerce. Created by individuals, but given value by others, crypto assets are based upon the use of cryptography to produce extremely secure digital units, which can then be bartered for services, goods, or other forms of currency.

The first crypto asset to be produced — and still the best-known outside of the technical community — is Bitcoin. ‘Coined’ in 2009, Bitcoins were originally intended to be used simply for streamlining digital transactions. They are now known and used throughout the world, and at the time of writing, one Bitcoin is worth £6,232 (or UD$8,000): not a bad exchange rate! The Bitcoin early investment bird has well and truly flown, but while it used to be unique, there are now more than 1,100 cryptocurrencies available, each purchasable for a different rate, and each attracting different markets. Investing in them — and the companies that use them — is fast becoming big business, but it’s a business that anyone with access to the internet can join in.

How Can You Invest in Crypto Assets?

There are two solid ways to become involved in the crypto investment movement: you can buy the currencies and trade them as they rise and fall, or you can buy the currencies and invest them in companies via an ICO (initial coin offering). If you’re feeling confident, you could also create your own crypto money, but unless you already have a strong digital asset (a business, for example) to use as a form of virtual collateral, you probably won’t get anywhere fast, so we’ll stick to the first two options here!

Anyone can purchase cryptocurrency, you just need to know how to do it, and that’s becoming easier by the day. Simply visit a reputable online exchange — such as Etoro, Plus500, or Avatrade — open an account, create a virtual wallet and select your currency of choice. Once you’ve paid down your fiat funds, the cryptocurrency is yours to do with what you will, although your first action should be to securely store it — a high-quality USB stick and a fireproof strong box are usually advisable, with a paper trail of serial numbers, just in case.

Once you have your currency, you can either just sit on it — those people who bought Bitcoin when it was going for just US$12 a pop and didn’t let go, are certainly sitting pretty just now! — or trade it.

Trading cryptocurrency on the open exchange can become a full-time job. China’s Millennials are leading the way in this, starting low and trading themselves out of poverty, one crypto asset at a time. If you have an eye for numbers, it’s possible to make a profit in a very short space of time, but you do need nerves of steel as the world of crypto trading is far from stress-free.

An alternative option is to invest your funds in a company’s ICO. An ICO is similar to a bricks and mortar business floating on the stock exchange; in return for your investment, you gain a stake in the business; a token which you can later trade with other investors for a crypto or fiat return. The majority of ICOs are used to help with the launch of a business; turning dreams into a reality, and they carry all of the attendant risks that you would associate with helping out a new venture. However, there are occasional examples of going concerns — such as FastInvest — launching an ICO in order to facilitate company growth.

Beginning with a short pre-ICO on December 1st 2017, and continuing with a month-long ICO, commencing on January 4th 2018, the FastInvest ICO is to help with the funding of new products — such as the FastInvest app and crypto payment card — and the opening of new offices, including the company’s first in America. Established in 2015, with more than 8,500 customers under its belt, FastInvest presents a rare opportunity to become part of something already successful, and consequently, the 666 000 000 FIT (FastInvest Tokens) are expected to fly.

It’s this kind of opportunity that you need to look out for.

How Can You Find Crypto Assets Before They Become Popular?

To start with, you need to get yourself in a position where you can really hear those jungle drums so you can start your research as soon as the first beat sounds and before anyone else even gets a whiff of smoke in the air. To do this, you need to join crypto communities and sign up for message boards, such as Crypto Community, CryptoCurrencyTalk, and Slofile. This is where you will hear about up and coming ICOs, crowd sales, and new currencies emerging on to the market.

Now, you’re obviously not going to leap into action and start investing in every ICO that makes the message boards, so this is where you need to put in a bit of effort, but if it helps you to find a mortgage deposit, or feel a bit more comfortable in retirement, then it’s surely worth that effort.

Thoroughly analyse the asset and the underlying business before you invest. Read the White Paper and ask the following questions: Is the business viable? Is the valuation reasonable? Are they offering a product that you might be interested in yourself, as a customer? If not, do you know anyone else it might appeal to? In other words, is there a ready-made market for this business; is it likely to make money?

Next, you need to look at the foundations of the business: who is behind the scheme? Do they know what they’re doing? Do they have any business acumen, or is there a string of failed enterprises behind them? Are there enough people with the relevant skills involved to make the venture a success?

Then we get down to the economics. Are the tokens being sold at a rate that leaves room for appreciation? FIT, for example, will be sold at a rate of 1,000 tokens for ETH1 (one Ethereum) during the January ICO, but early pre-ICO buyers have the opportunity to gain a 40% bonus, which obviously presents an increased potential for future profit.

Something else to look for is whether the tokens are integral to the function of the network — if you’re investing in something that has an innate value and can be used as an independent asset, perhaps to access certain areas of service within the ICO-issuing company, or to purchase products, rather than just acting as a stock would in established business, then it is liable to assume greater value and be in greater, later demand.

Finally, once you’ve invested,you need to take a breath and be patient. ICOs are not the same as a day trade; you can’t make a profit from a quick exchange. The FastInvest ICO, for example, launches in January 2018, and although the FIT will be exchangeable as soon as the ICO closes on February 4th, 2018, it’s not expected to make the major exchanges until September of that year, and that’s where the potential to really make gains on your investment lies. Whichever ICO you put your funds into, if you’re glued to your screen, watching the fluctuations in value during the first couple of months you’re going to spend the time lurching from depression to elation and back again, on a regular basis. ICOs need time to establish and prove their worth. Once they’re showing that they are doing what they said that they would do — in the case of FastInvest, that’s launching the P2P lending investment app, opening the American office, and releasing the very exciting payment card, which will allow holders to use their cryptocurrency out in the real world — that’s when the big players will become interested, and token prices will rocket. Until then, keep your sanity and hold fire; keeping a weather-eye to make sure that the business isn’t about to tank is a good idea, but don’t become obsessive.

In the grand financial scheme of things, crypto assets are still in their formative years, but with the crypto market growing 1,200% this year alone and experts agreeing that this isn’t just a temporary bubble waiting to burst, if you keep your ear pressed to the virtual jungle floor, research potential ICOs and invest wisely, you could soon find yourself with a crypto nest egg of far greater value than all of your fiat assets.

Cash Is King, Is Bitcoin Cash King?

They say it’s lonely at the top and it’s hard to stay there.

Bitcoin Cash price went up to 0.55 BTC or $2300 USD and now hovering around $1400. WTF is going on? Is it going to replace BTC?

Warren Buffet assigns himself a story similar to a journalist to figure out what is going on (Watch this interview, at 11:20).

I assigned myself the task of writing a story about BTC and BCH. Below are some of my findings weaved with two important technicals, some drama, and embellishment. It’s an exciting deep dive. Some level of technical understanding is required. I have written a simple explanation of these concepts to help you grasp the story. Enjoy and let me know what you think!

Technical Primer #1

Hash

A hash is like a fingerprint. I don’t know who’s fingerprint it is, but if the guy shows up I can verify that it is him.

Bitcoin’s blockchain simplified

A Bitcoin block has 6 elements, 3 of which are: A hash of all of the bitcoin transactions since the beginning of the system. A bundle of transactions to be confirmed within this block. A nonce. Think of it like a Russian doll. The outer layer contains the inner layers. A new block contains a fingerprint of all previous transactions.

Nonce and Bitcoin Mining

A random piece of data. The Bitcoin miners are looking for that nonce. When added with the hash (fingerprint) of all previous transactions and the bundle of new transactions to be recorded and the results are something like this:

000000000000000000117b008122e193f274c6d53b0c229bfe6281c5906ad2c4 (this is block #495184)

You just won the bitcoin mining lottery. Notice the number of leading zeros, this is used by Bitcoin’s software to adjust the mining difficulty level. More 0s means harder to find the right nonce (A random piece of data).

51% attack simplified

This means some miners control directly or indirectly more than 51% of the hashing rate (read guessing rate). Which means that miner wins the lottery more than 50% of the time and can attack the network by messing with what to include and what not to include in the blockchain. Here is the current hash rate distribution.

Immutability

cannot be modified after it is created.

Bitcoin’s value proposition

Decentralized immutable ownership records (read: nobody can f*** with my bitcoins).

Bitcoin is valuable because there are hundreds and thousands of miners out there securing the network in a distributed fashion supporting Bitcoin’s value proposition. The more hashing rate behind the network, the more secure and immutable the blockchain and the historical transactions are, the more valuable bitcoins become. Bitcoin’s total hash rate went higher and higher away from the theoretical and the practical possibility of a 51% attack. Here we can see a chart that is best viewed in a logarithmic format.

Here’s a November 2013 article that says Bitcoin’s network computing power is 256 times faster than top 500 supercomputers combined. It has since grown more than 100,000 times.

As Bitcoin’s hash rate went higher and higher, the value proposition of bitcoin increased. The market recognized that and paid more for coins. Price of coins went up, mining becomes more profitable. Bitcoin value proposition increases, more people pay attention and come into the market. It’s cycles of self-fulfilling prophecy.

Technical Primer #2

Transaction Malleability simplified

this basically means people can mess with the transactions that they send out, tricking the recipient thinking that they got the coins but they actually didn’t. It’s fixed now. The Segwit update fixed it.

Segregated witness simplified

All you really need to know here is that the message structure of your transactions to the bitcoin’s network has been modified to make the size of that message smaller. Smaller messages mean more messages can fit into the same block.

Block size with Segwit

Bitcoin’s block size limit right now is 1mb. Can’t fit too many transactions in 1mb of data. Segwit is an on chain scaling solution and a soft fork which increases the block size to 1.6mb.

Hard fork

Changing old rules. Old and new are not compatible. Think VHS versus DVD.

Soft fork

Adding new rules. The new can still handle the old. Think DVD to Blu-ray.

ASICBOOST

Basically a “hack” in bitcoin mining which gives the user more efficiency, up to 30% more efficient. This translates to over $100m a year in profit. This hack is patented by CoinTerra, now a defunct bitcoin mining operation.

Transaction fees

The way miners sort which transactions to fit into the 1mb block is to sort by highest to lowest transaction fees. It’s also important to note that miners are incentivized to want bigger blocks if the demand for transactions is there. This is because a new block is found every 10 minutes, if the blocks are bigger and are utilized to capacity, they get more transaction fees every 10 minutes.

Full Bitcoin Node

For those who have used torrents before, this is like hosting the movie file for the torrent network. You allow others to download from your computer. For Bitcoin, a full node has the full version of Bitcoin’s blockchain. If the node is a mining node, it can also process transactions.

Scaling Bitcoin

For all the hype surrounding Bitcoin, it is a fairly inefficient system. Currently, bitcoin does less than 10 transactions per second. VISA does more than 25k transaction per second. For a global currency to be, we still have ways to go.

There are mainly two ways to scale bitcoins. One is on chain scaling solutions, and the other is off chain scaling solutions.

On-Chain Scaling Solution

An immediate example of on chain scaling solution is to increase the block size. Think of block size as a frame from a polarizing picture. The larger the frame of the picture the more people you can reasonably fit in there. In this case, instead of people fitting into the picture, it’s a number of transactions that one can fit into the block. Right now for bitcoin, the block size is 1mb. With Segwit, the block size is increased to about 1.6mb.

From an economic incentive perspective, miners like on chain scaling solutions. Bitcoin Cash’s block size is 8mb. This means it can process 8 times more transaction per second than Bitcoin. 50 transaction per second is still not a big deal. If the only solution is to scale on-chain, we would have to see block size of over some gigabytes.

The second order consequence of big block sizes beyond just allowing people to send more transactions per second is that amateurs will not be supporting a full bitcoin node. They will get pushed out of the full node game because the blockchain will grow by more than 1mb every 10 minutes. If the block sizes are 1GB each, it’s easy to see how that might blow up their hard drive in a day!

The third order consequence of big blocks is that Bitcoin becomes more centralized. This is actually a good thing for the miners. It is good because they have a bigger say in what kind of features they want to add and remove from the blockchain for their benefit. There’s an incentive for the miners to politically navigate towards this goal.

Off-Chain Scaling Solution

The Lightning network is a second layer scaling solution. Think about the Brink’s trucks that move money around at the end of business day. The transaction was already made, now they have to move the money into the bank and settle it on the account. The cost of using Brinks truck is really high if we wanted to settle every transaction right away, money in the bank style. Instead of doing that, the merchants accounting system acknowledge the receipt of money for goods and then settles with the bank later in a big chunk. Instead of saying Joe gave me a $1 for a piece of gum, it says received $12,384 worth of sales on that day.

The Lightning Network is similar to that. It doesn’t settle every single transaction on the blockchain. It allows for a channel to be open between parties and they can transact as they wish. Then when they are done, they can lock in the final statement and send that to the blockchain. For the merchant’s example, maybe it receives bitcoins on a daily basis for customer purchases, and the merchant will send that to a cryptocurrency exchange. If there is a lightning channel open between the exchange and the merchant, the merchant does not have to pay transaction fees for every transaction. He can keep sending money without a final settlement until later. Miners don’t like this because they get paid fewer fees.

Brief summary before the main course

If you have read this far and followed along, I can honestly say that you now know more than 95% of the people who got into cryptocurrency this year.

We talked about the fundamental value proposition of Bitcoin’s blockchain. The value is that we have a decentralized way of securing the network and it’s history of all transactions ever made. This is made possible because of all the miner’s and the hashing power that they bring to the network.

Then we talked about two ways to scale the Bitcoin network. On chain and off-chain. Miner’s like bigger blocks because it means potentially more fees. Miner’s don’t like off chain scaling solutions because they make fewer fees.

Now, what does all of this have to do Bitcoin Cash?!?

We need two more pieces before we can see the whole puzzle…

The main players and drivers

Jihan Wu

Jihan Wu runs Bitmain. Bitmain produces about 70% of the bitcoin miners out there and has about 20% of bitcoins hash rate. They fought hard to block Segwit from being intergraded into Bitcoin’s blockchain as a soft fork because it fixes transaction malleability and patches the ASICBOOST hack.

He was also a big proponent of bigger blocks and hard forks with features that favor Bitcoin miners.

Roger Ver

He is an early bitcoin adopter. Old-timers remember him as Bitcoin Jesus. These days he looks more like Judah. He runs a mining pool at Bitcoin.com

We got most of the pieces now to see the puzzle.

Blowing life into Bitcoin Cash (read Kish)

If we agree to that mining and hash rate contributes to the value proposition of Bitcoin then it’s easy to reason that if that hash rate is put behind another blockchain, that chain’s value proposition just increased.

It’s harder to conceptualize how it would start. If there is no usage, then there is no price level, if there is no price level, then no mining profit. No mining profit means no miner and no chain.

Only if we could bootstrap and leverage something that already exists…

Bootstrapping Bitcoin Cash (read Kish)

If I were a miner with a few friends and controlled a big % of hashing power, this is how I would do this:

I would first spam the original chain with microtransactions to clog up the blockchain. It’s cheaper for me and my miner friends to do this because we get a percentage of those fees back plus ASICBOOST also gives me an advantage.

On average we would get back a percentage of the fees we use proportional to our mining power. We also receive normal transaction fees. Basically, we use the transaction fees that we make to fund the attack. We can see transaction fees increased significantly since the beginning of the year. Recently, before Bitcoin Cash’s run-up, it reached an all-time high:

I would sustain this attack for a while to make a point and give the illusion to users that Bitcoin’s blockchain is really slow. As a matter of fact, most of the public actually have no idea of confirmation time, block size debate, on-chain, and off-chain scaling solutions. What the public sees is what the public knows. I remember when I first got into bitcoin and just the QR code scared me.

So I spam the network because I want to clog it up. After I clog it up I will push for a hard fork of Bitcoin’s blockchain and call it Bitcoin Cash (Read Kish). Since I forked the chain, from day one, my potential users are everyone who owned coins in the previous chain.

This means from day one, I have users and a chain that I can support with my miner buddies. These users don’t have to buy my coins because they already have them. Now the only thing left to do is to influence public opinion.

The way I would influence public opinion is to keep spamming the original blockchain, making it slow and expensive to use. While making sure that they hear that my new chain does not have these problems.

Then one day I decide to push for a statement and move my mining power and my friends’ mining power behind Bitcoin Cash to blow life into it. While at the same time pump up the prices on the Korean Exchanges trading with myself because there are no transaction fees.

In the graph below we can see that Bitcoin Cash’s hash rate went over Bitcoin’s. That is also the day when Bitcoin Cash went all the way up to 0.55BTC.

Once the hash rate crossed, it created this impression in those people who value Bitcoin based on total hash rates.

I always thought that bitcoin was people’s money, but it is really just miner’s money. I say this because I do not run a full node, hence I am just paying lip service when I say I believe Bitcoin more than Bitcoin Cash. Miners, on the other hand, are financially motivated to support whichever coins that pay more. They also run a full node which means they participate in the network and can vote on features changes by running the software version of their choice.

Bitcoin Cash is now a real player in the game.

The evidence for this story is circumstantial at best. I cannot get into people’s mind but I can follow them on Twitter. Read Roger Ver’s and Jihan Wu’s tweets with your new found understanding of the political landscape. This will give you an idea behind the motivation of the stuff they say.

Is This Bad?

Here is a good concept and support for fragmentation of Bitcoin, it’s a religious one. Basically, Christianity started and Jesus had a bunch of disciples. Then Jesus went away and his disciples stewarded what Jesus has built for a while, and then went off on their own and started many other religions.

We are seeing something similar to Bitcoin and Bitcoin Cash. I’m sure that in the beginning all of the miners got together to support Satoshi’s vision, then human nature caught up with them.

From a technical perspective, 10 transaction per second, versus 80 transactions per second is not a big change. This is not scaling.

Personally, I don’t think it’s a bad thing. I also don’t believe that Bitcoin Cash will destroy Bitcoin. It’s a new flavor on the shelve. Some people might like it, some people might not. Most people don’t care besides that it might make them some money.

The great thing about this whole blockchain evolution is that if at some point people figure out what’s going on, and realizes that they are been manipulated, they will just fork off and do something by themselves.

Plug for others

This piece was made possible by James Hapak, who is a good friend and financial industry veteran that found some of the pieces and helped me elevate my view of the situation to put them together into a story.

Plug for Self

If you liked this article, please like, comment and share! Also, I contribute to KoinTap, which is a site full of more awesome content.

Cash Is King, Is Bitcoin Cash King?

They say it’s lonely at the top and it’s hard to stay there.

Bitcoin Cash price went up to 0.55 BTC or $2300 USD and now hovering around $1400. WTF is going on? Is it going to replace BTC?

Warren Buffet assigns himself a story similar to a journalist to figure out what is going on (Watch this interview, at 11:20).

I assigned myself the task of writing a story about BTC and BCH. Below are some of my findings weaved with two important technicals, some drama, and embellishment. It’s an exciting deep dive. Some level of technical understanding is required. I have written a simple explanation of these concepts to help you grasp the story. Enjoy and let me know what you think!

Technical Primer #1

Hash

A hash is like a fingerprint. I don’t know who’s fingerprint it is, but if the guy shows up I can verify that it is him.

Bitcoin’s blockchain simplified

A Bitcoin block has 6 elements, 3 of which are: A hash of all of the bitcoin transactions since the beginning of the system. A bundle of transactions to be confirmed within this block. A nonce. Think of it like a Russian doll. The outer layer contains the inner layers. A new block contains a fingerprint of all previous transactions.

Nonce and Bitcoin Mining

A random piece of data. The Bitcoin miners are looking for that nonce. When added with the hash (fingerprint) of all previous transactions and the bundle of new transactions to be recorded and the results are something like this:

000000000000000000117b008122e193f274c6d53b0c229bfe6281c5906ad2c4 (this is block #495184)

You just won the bitcoin mining lottery. Notice the number of leading zeros, this is used by Bitcoin’s software to adjust the mining difficulty level. More 0s means harder to find the right nonce (A random piece of data).

51% attack simplified

This means some miners control directly or indirectly more than 51% of the hashing rate (read guessing rate). Which means that miner wins the lottery more than 50% of the time and can attack the network by messing with what to include and what not to include in the blockchain. Here is the current hash rate distribution.

Immutability

cannot be modified after it is created.

Bitcoin’s value proposition

Decentralized immutable ownership records (read: nobody can f*** with my bitcoins).

Bitcoin is valuable because there are hundreds and thousands of miners out there securing the network in a distributed fashion supporting Bitcoin’s value proposition. The more hashing rate behind the network, the more secure and immutable the blockchain and the historical transactions are, the more valuable bitcoins become. Bitcoin’s total hash rate went higher and higher away from the theoretical and the practical possibility of a 51% attack. Here we can see a chart that is best viewed in a logarithmic format.

Here’s a November 2013 article that says Bitcoin’s network computing power is 256 times faster than top 500 supercomputers combined. It has since grown more than 100,000 times.

As Bitcoin’s hash rate went higher and higher, the value proposition of bitcoin increased. The market recognized that and paid more for coins. Price of coins went up, mining becomes more profitable. Bitcoin value proposition increases, more people pay attention and come into the market. It’s cycles of self-fulfilling prophecy.

Technical Primer #2

Transaction Malleability simplified

this basically means people can mess with the transactions that they send out, tricking the recipient thinking that they got the coins but they actually didn’t. It’s fixed now. The Segwit update fixed it.

Segregated witness simplified

All you really need to know here is that the message structure of your transactions to the bitcoin’s network has been modified to make the size of that message smaller. Smaller messages mean more messages can fit into the same block.

Block size with Segwit

Bitcoin’s block size limit right now is 1mb. Can’t fit too many transactions in 1mb of data. Segwit is an on chain scaling solution and a soft fork which increases the block size to 1.6mb.

Hard fork

Changing old rules. Old and new are not compatible. Think VHS versus DVD.

Soft fork

Adding new rules. The new can still handle the old. Think DVD to Blu-ray.

ASICBOOST

Basically a “hack” in bitcoin mining which gives the user more efficiency, up to 30% more efficient. This translates to over $100m a year in profit. This hack is patented by CoinTerra, now a defunct bitcoin mining operation.

Transaction fees

The way miners sort which transactions to fit into the 1mb block is to sort by highest to lowest transaction fees. It’s also important to note that miners are incentivized to want bigger blocks if the demand for transactions is there. This is because a new block is found every 10 minutes, if the blocks are bigger and are utilized to capacity, they get more transaction fees every 10 minutes.

Full Bitcoin Node

For those who have used torrents before, this is like hosting the movie file for the torrent network. You allow others to download from your computer. For Bitcoin, a full node has the full version of Bitcoin’s blockchain. If the node is a mining node, it can also process transactions.

Scaling Bitcoin

For all the hype surrounding Bitcoin, it is a fairly inefficient system. Currently, bitcoin does less than 10 transactions per second. VISA does more than 25k transaction per second. For a global currency to be, we still have ways to go.

There are mainly two ways to scale bitcoins. One is on chain scaling solutions, and the other is off chain scaling solutions.

On-Chain Scaling Solution

An immediate example of on chain scaling solution is to increase the block size. Think of block size as a frame from a polarizing picture. The larger the frame of the picture the more people you can reasonably fit in there. In this case, instead of people fitting into the picture, it’s a number of transactions that one can fit into the block. Right now for bitcoin, the block size is 1mb. With Segwit, the block size is increased to about 1.6mb.

From an economic incentive perspective, miners like on chain scaling solutions. Bitcoin Cash’s block size is 8mb. This means it can process 8 times more transaction per second than Bitcoin. 50 transaction per second is still not a big deal. If the only solution is to scale on-chain, we would have to see block size of over some gigabytes.

The second order consequence of big block sizes beyond just allowing people to send more transactions per second is that amateurs will not be supporting a full bitcoin node. They will get pushed out of the full node game because the blockchain will grow by more than 1mb every 10 minutes. If the block sizes are 1GB each, it’s easy to see how that might blow up their hard drive in a day!

The third order consequence of big blocks is that Bitcoin becomes more centralized. This is actually a good thing for the miners. It is good because they have a bigger say in what kind of features they want to add and remove from the blockchain for their benefit. There’s an incentive for the miners to politically navigate towards this goal.

Off-Chain Scaling Solution

The Lightning network is a second layer scaling solution. Think about the Brink’s trucks that move money around at the end of business day. The transaction was already made, now they have to move the money into the bank and settle it on the account. The cost of using Brinks truck is really high if we wanted to settle every transaction right away, money in the bank style. Instead of doing that, the merchants accounting system acknowledge the receipt of money for goods and then settles with the bank later in a big chunk. Instead of saying Joe gave me a $1 for a piece of gum, it says received $12,384 worth of sales on that day.

The Lightning Network is similar to that. It doesn’t settle every single transaction on the blockchain. It allows for a channel to be open between parties and they can transact as they wish. Then when they are done, they can lock in the final statement and send that to the blockchain. For the merchant’s example, maybe it receives bitcoins on a daily basis for customer purchases, and the merchant will send that to a cryptocurrency exchange. If there is a lightning channel open between the exchange and the merchant, the merchant does not have to pay transaction fees for every transaction. He can keep sending money without a final settlement until later. Miners don’t like this because they get paid fewer fees.

Brief summary before the main course

If you have read this far and followed along, I can honestly say that you now know more than 95% of the people who got into cryptocurrency this year.

We talked about the fundamental value proposition of Bitcoin’s blockchain. The value is that we have a decentralized way of securing the network and it’s history of all transactions ever made. This is made possible because of all the miner’s and the hashing power that they bring to the network.

Then we talked about two ways to scale the Bitcoin network. On chain and off-chain. Miner’s like bigger blocks because it means potentially more fees. Miner’s don’t like off chain scaling solutions because they make fewer fees.

Now, what does all of this have to do Bitcoin Cash?!?

We need two more pieces before we can see the whole puzzle…

The main players and drivers

Jihan Wu

Jihan Wu runs Bitmain. Bitmain produces about 70% of the bitcoin miners out there and has about 20% of bitcoins hash rate. They fought hard to block Segwit from being intergraded into Bitcoin’s blockchain as a soft fork because it fixes transaction malleability and patches the ASICBOOST hack.

He was also a big proponent of bigger blocks and hard forks with features that favor Bitcoin miners.

Roger Ver

He is an early bitcoin adopter. Old-timers remember him as Bitcoin Jesus. These days he looks more like Judah. He runs a mining pool at Bitcoin.com

We got most of the pieces now to see the puzzle.

Blowing life into Bitcoin Cash (read Kish)

If we agree to that mining and hash rate contributes to the value proposition of Bitcoin then it’s easy to reason that if that hash rate is put behind another blockchain, that chain’s value proposition just increased.

It’s harder to conceptualize how it would start. If there is no usage, then there is no price level, if there is no price level, then no mining profit. No mining profit means no miner and no chain.

Only if we could bootstrap and leverage something that already exists…

Bootstrapping Bitcoin Cash (read Kish)

If I were a miner with a few friends and controlled a big % of hashing power, this is how I would do this:

I would first spam the original chain with microtransactions to clog up the blockchain. It’s cheaper for me and my miner friends to do this because we get a percentage of those fees back plus ASICBOOST also gives me an advantage.

On average we would get back a percentage of the fees we use proportional to our mining power. We also receive normal transaction fees. Basically, we use the transaction fees that we make to fund the attack. We can see transaction fees increased significantly since the beginning of the year. Recently, before Bitcoin Cash’s run-up, it reached an all-time high:

I would sustain this attack for a while to make a point and give the illusion to users that Bitcoin’s blockchain is really slow. As a matter of fact, most of the public actually have no idea of confirmation time, block size debate, on-chain, and off-chain scaling solutions. What the public sees is what the public knows. I remember when I first got into bitcoin and just the QR code scared me.

So I spam the network because I want to clog it up. After I clog it up I will push for a hard fork of Bitcoin’s blockchain and call it Bitcoin Cash (Read Kish). Since I forked the chain, from day one, my potential users are everyone who owned coins in the previous chain.

This means from day one, I have users and a chain that I can support with my miner buddies. These users don’t have to buy my coins because they already have them. Now the only thing left to do is to influence public opinion.

The way I would influence public opinion is to keep spamming the original blockchain, making it slow and expensive to use. While making sure that they hear that my new chain does not have these problems.

Then one day I decide to push for a statement and move my mining power and my friends’ mining power behind Bitcoin Cash to blow life into it. While at the same time pump up the prices on the Korean Exchanges trading with myself because there are no transaction fees.

In the graph below we can see that Bitcoin Cash’s hash rate went over Bitcoin’s. That is also the day when Bitcoin Cash went all the way up to 0.55BTC.

Once the hash rate crossed, it created this impression in those people who value Bitcoin based on total hash rates.

I always thought that bitcoin was people’s money, but it is really just miner’s money. I say this because I do not run a full node, hence I am just paying lip service when I say I believe Bitcoin more than Bitcoin Cash. Miners, on the other hand, are financially motivated to support whichever coins that pay more. They also run a full node which means they participate in the network and can vote on features changes by running the software version of their choice.

Bitcoin Cash is now a real player in the game.

The evidence for this story is circumstantial at best. I cannot get into people’s mind but I can follow them on Twitter. Read Roger Ver’s and Jihan Wu’s tweets with your new found understanding of the political landscape. This will give you an idea behind the motivation of the stuff they say.

Is This Bad?

Here is a good concept and support for fragmentation of Bitcoin, it’s a religious one. Basically, Christianity started and Jesus had a bunch of disciples. Then Jesus went away and his disciples stewarded what Jesus has built for a while, and then went off on their own and started many other religions.

We are seeing something similar to Bitcoin and Bitcoin Cash. I’m sure that in the beginning all of the miners got together to support Satoshi’s vision, then human nature caught up with them.

From a technical perspective, 10 transaction per second, versus 80 transactions per second is not a big change. This is not scaling.

Personally, I don’t think it’s a bad thing. I also don’t believe that Bitcoin Cash will destroy Bitcoin. It’s a new flavor on the shelve. Some people might like it, some people might not. Most people don’t care besides that it might make them some money.

The great thing about this whole blockchain evolution is that if at some point people figure out what’s going on, and realizes that they are been manipulated, they will just fork off and do something by themselves.

Plug for others

This piece was made possible by James Hapak, who is a good friend and financial industry veteran that found some of the pieces and helped me elevate my view of the situation to put them together into a story.

Plug for Self

If you liked this article, please like, comment and share! Also, I contribute to KoinTap, which is a site full of more awesome content.

Daily technical analysis: Ethereum — November 20 (Ethereum/USD)

CoinCheckup Technical Analysis

In order to support you and the crypto community with trading decisions, CoinCheckup is serving you with Daily Technical analysis updates for Ethereum & other Cryptocurrencies.

Note that this report is written on: Nov 20, 2017 02:06AM GMT

Technical Summary Ethereum: STRONG BUY

Moving Averages: 12 BUY / 0 SELL | Technical Indicators: 9 BUY / 0 SELL

Ethereum 24 hour Technical Indicators

What is are these indicators (click for more info):RSI, STOCH, STOCHRSI, MACD, ADX, Williams %R, CCI, ATR, Ultimate Oscillator, ROC, Bull/Bear Power

Ethereum’s Moving Average indicators

What is “moving average” (more info)?

Ethereum’s Background, Fundamentals, Investment stats & Long-term indicators

Thanks for reading!

Feel free to share your thoughts, feedback, and suggestions in the comments below. If you like this article share it on social and with your friends! :-)Subscribe and stay tuned for daily updates!You can also get in touch with the CoinCheckup for Feedback or new features you would like to see on the CoinCheckup website.

CoinCheckup | Crypto  ark   Analysis, Predictions & Investment stats

Disclaimer: Trading and investing in digital assets is highly speculative and comes with many risks. The analysis & stats from CoinCheckup are for informational purposes and should not be considered investment advice. Statements and financial information on CoinCheckup.com should not be construed as an endorsement or recommendation to buy, sell or hold. Please do your own research on all of your investments carefully. Technical analysis stats are out of date the moment we post them. Scores on CoinCheckup are based on common sense Formulas that we personally use to analyse crypto coins & tokens. We’ll open source these formulas soon. Past performance is not necessarily indicative of future results. [Read the full disclaimer here]

Daily technical analysis: Ethereum — November 20 (Ethereum/USD)

CoinCheckup Technical Analysis

In order to support you and the crypto community with trading decisions, CoinCheckup is serving you with Daily Technical analysis updates for Ethereum & other Cryptocurrencies.

Note that this report is written on: Nov 20, 2017 02:06AM GMT

Technical Summary Ethereum: STRONG BUY

Moving Averages: 12 BUY / 0 SELL | Technical Indicators: 9 BUY / 0 SELL

Ethereum 24 hour Technical Indicators

What is are these indicators (click for more info):RSI, STOCH, STOCHRSI, MACD, ADX, Williams %R, CCI, ATR, Ultimate Oscillator, ROC, Bull/Bear Power

Ethereum’s Moving Average indicators

What is “moving average” (more info)?

Ethereum’s Background, Fundamentals, Investment stats & Long-term indicators

Thanks for reading!

Feel free to share your thoughts, feedback, and suggestions in the comments below. If you like this article share it on social and with your friends! :-)Subscribe and stay tuned for daily updates!You can also get in touch with the CoinCheckup for Feedback or new features you would like to see on the CoinCheckup website.

CoinCheckup | Crypto  ark   Analysis, Predictions & Investment stats

Disclaimer: Trading and investing in digital assets is highly speculative and comes with many risks. The analysis & stats from CoinCheckup are for informational purposes and should not be considered investment advice. Statements and financial information on CoinCheckup.com should not be construed as an endorsement or recommendation to buy, sell or hold. Please do your own research on all of your investments carefully. Technical analysis stats are out of date the moment we post them. Scores on CoinCheckup are based on common sense Formulas that we personally use to analyse crypto coins & tokens. We’ll open source these formulas soon. Past performance is not necessarily indicative of future results. [Read the full disclaimer here]