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Wear-to-earn NFTs: For Real?

Julie-Anne Chong — Fri, 18 Feb 2022 02:18:00 +0000

When I was a child, I remembered playing with paper doll cutouts. The doll was printed on thick cardboard, usually in her undies. Her clothes and accessories are printed separately, also on relatively thick cardboard, with tabs sticking out on the side. This is so that the clothes can stay on her in a clipped manner.

Now imagine that paper doll stood up and became a 3D version. All the clothes also “stood up” and could magically glide themselves onto the paper doll, who’s become an avatar. Those clothes have now become NFTs. Welcome to the world of wear-to-earn (W2E) NFTs. We’re about to dip our toes into this new sub-sector of NFTs, go through its inner workings, and surface with whatever gleanings we can get. Let’s go!

The progenitor of an avatar

The origin of Wear-to-Earn NFTs

The impetus for W2E may have been inspired by the NFT craze currently circulating the globe, especially when looking at the amount of revenue for digital purchases and the success of the play-to-earn (P2E) model. However, unlike the latter, which is firmly rooted in the gaming community where gamers are used to upgrading their characters with skins and all kinds of accessories, real-life had little use for digital accessories until the pandemic came along and we landed in the era of Zoom calls and on-camera interactions.

Being presentable online became a challenge during the lockdown. Aside from not being able to get a haircut (unless you happen to live with a hairdresser), working from home also puts us in a more relaxed mode when it comes to our appearance or clothing. At first, it’s the novelty of being able to walk around in a dressing gown or pj’s while doing actual work. However, after a few months, what was novel quickly became old-hat. In this kind of environment, where is there space for fashion to survive, much less thrive?

When NFTs came into general awareness, there were a few in the fashion world who started to explore possibilities of how to marry the two together. What they came up with is the concept of Wear-to-Earn NFTs. Part of the inspiration might have come from Snapchat, where people can apply filters when taking pictures for various digital looks that are impossible to replicate in real life. What if, instead of just taking silly pictures, we can “wear” digital accessories as if they are real? How about posting them on any multitude of favoured social media channels as a means of self-expression? How about making it happen in real life?

Banking on Augmented Reality

It’s one thing to be walking around with your phone catching Pokemons on the street (hopefully avoiding any oncoming traffic!). It’s another to walk around the street wearing nothing but a bodysuit because the design of the clothes is just like those Pokemons – they’re not real but projected onto the body. Yet this is precisely what the Wear-to-Earn crowd is betting on. In the future, instead of buying physical clothes, we also have the option to have the clothes projected onto ourselves.

The strongest case is that it will clear the fashion industry’s name as one of the top 10 polluters in the environment. Instead of harvesting raw materials to create “trashable” clothes, we can flip through a digital lookbook online and decide what we want to be seen in instead of rifling through a closet of unworn clothes destined for the trash pile. Walk-in closets will be a thing of the past seen only in movies made before 2020. I’m guessing the bodysuit will be made from some kind of synthetic material that has mini sensors embedded in it so that when one is moving around, it will be able to capture the body’s movements and have the “clothes” move in sync. The biggest faux pas would be to have one’s bodysuit visible, I’d imagine.

A few industry pioneers are jumping in head-first to lead the charge.

Popular W2E Projects and Pioneers

DressX

If you want to experience digital fashion right now, head over to DressX, a website/shop that offers some fascinating looking garments for what looks like very reasonable prices. The catch? It’s only for the camera, not in real-life. All you have to do is upload a picture of yourself in fitting clothes (swimsuits and bodysuits work best) to the website, select the piece you want to “wear”, and match it against the photo. Voila, you’re now wearing an illusion. Take a few pictures, upload them to your social media, and wow your friends with your new outlook.

This dress is not real! Image via DressX

Founded by Natalia Modenova and Daria Shapovalova and launched in August 2020, the company has managed to raise a total of $3.3 million in funding from VCs led by The Artemis Fund, a VC specializing in investing in female-led ventures “who build companies that democratize access to wealth, encourage sustainability, and reduce friction in the care economy.”, according to the press release. Featuring boatloads of designers eager to dress us in the metaverse, DressX has plans to launch an NFT marketplace for their pieces in 2022. They’ve already successfully collaborated on some NFT drops with Crypto.com, Balmain and Binance, to name a few.

Megan Kaspar and Red DAO

Earlier in the year, Megan Kaspar, cofounder and managing director of Magnetic Capital, a private investment firm in crypto projects based in Grand Cayman, was interviewed by Haute Living, a fashion magazine for high society, and “digitally dressed” by DressX mentioned above. As one of the angel investors for the project, she has been a strong champion of digital (“meta fashion”) fashion and sees a very bright future ahead.

Megan Kaspar wearing digital accessories from DressX Image via Yahoo!Finance

She first became aware of cryptocurrency back in 2010 but did not give it full attention until 2013 / 2014, when she had her “aha” moment. “Over time, it became increasingly obvious to me how this technology could upgrade global capital markets and the financial industry, with an improved, secure technology layer added. And that was when I realized I would be spending the rest of my career in this space,” she said in her interview. She is also a member of Red DAO, a fashion-focused DAO that recently made headline news by winning the Doge Crown designed Dolce & Gabbana (D&G) as part of their NFT collection for 423.5 ETH (worth about $1.275 million). The DAO has about $7.5 million in its treasury, based on the wallet data listed of its members on their website.

“Brands will compensate customers for wearing pieces by giving them access to exclusive items or airdropping fashion pieces to virtual wallets or by paying them a fungible token,” says Megan in another interview with Cointelegraph.com. I have to say, I’m quite sceptical about this because I don’t see your average customer getting this kind of treatment. Influencers maybe, since they can be seen as another sales channel for the brands. It could also be a marketing ploy. There might only be limited pieces airdropped to perhaps randomly-selected customers, like trying to win a lottery ticket. This would undoubtedly drive sales up if the companion perception is that the airdropped pieces can be flipped on the secondary market to sell to a thirsty buyer or fan.

Joining Red DAO requires an upfront investment of 100,000 Red DAO tokens priced at 50 ETH with a max of 300,000 tokens for 150ETH. The purpose of the DAO is to “support, purchase, archive, collect, invest in items, and digital garments in the emerging world of digital wearables and fashion.” according to their website.

NFT Runway

On its website, NFT Runway positions itself as “a first-of-its-kind phygital fashion project, using patented 3DReal technology to bring designer fashion into the Metaverse as wearable NFTs.”. In collaboration with Ohzone Inc, the project broadcasted a live fashion show in Decentraland back in December, using NFT versions of the physical items through patented 3DRealM technology, as reported by Cointelegraph.com. NFT Runway also works with charities to program a portion of its auction sales to benefit them. Known as “NFT endowments”, these charities can receive royalties in perpetuity from every sale of the NFT.

Dunno whether to find this funny or disturbing Image via NFTrunway

Space Runners

Space Runners feature an NBA Champions Sneaker collection created in collaboration with Kyle Kuzma and Nick Young. These sneaker NFTs can be plugged into the metaverse or games. Aside from moving into the AR space, these NFTs also unlock exclusive benefits to their holders, such as access to the celebrities associated with the project. Expect to see more of this coming in the near future.

Snazzy sneaks for the discerning avatar Image via Space Runners

Dolce & Gabbana (D&G)

Known to be one of the top luxury brands in the fashion industry, D&G announced its entry into the world of NFT by dropping its first-ever NFT collection known as Collezione Genesi (“Genesis Collection”, if you haven’t guessed yet). Partnering with UNXD, a luxury-based NFT market on the Polygon network, the nine pieces came with both an NFT and its physical counterpart. The auction was held in September 2021 and netted a cool $6 million, with the Doge Crown taking top price as mentioned above. The crown was personally designed by Domenico Dolce and Stefano Gabbana, founders of the D&B brand named after them.

The crown of the D&G NFT Collection Image via Coindesk.com

The success of this auction heralded the lucrative potential of fashion NFTs and the possibilities that could be conceived from them.

Fashion + Games

Not content to market digital wear, some fashion brands are also looking to encroach into the world of gaming, either through collaboration with big-name games or venturing out on their own.

GAP

The pandemic years have not been kind to GAP as many of their physical stores were shuttered due to decreasing foot traffic and demand. Seeing the surge in demand for NFTs, the brand teamed up with Frank Ape artist Brandon Sines to design an NFT collection on the Tezos blockchain, perhaps hoping to capture a younger crowd and revitalise its brand. As part of the NFT experience, they also added a gamified component where users can collect digital art by the artist and the physical Gap x Frank Ape by Sines hoodie.

Get yer GAP hoodie for your avatar Image by GAP

Burberry + Mythical Games

It would’ve been difficult for an established brand like Burberry to imagine they’d want anything to do with the gaming world. Times have since changed. Keeping up with a younger generation to maintain its position as a trendy luxury item, the move to collaborate with a game is undoubtedly a surprise to many. The Burberry team chose Blankos Block Party to be its first collaboration. A limited-edition character called Sharky B “is an NFT that can be purchased, upgraded, and sold within the Blankos Block Party marketplace.” The shark can be trained and upgraded with special powers while its accessories, such as the jetpack, armbands and pool shoes, can be applied to any Blanko owned by the user.

Ger ready for a shark attack attired in the latest luxury Burberry accessories Image by Burberry

Louis Vuitton

“Louis: The Game” was launched as part of the 200th anniversary of its founder and is LV’s first attempt to dip its toes into the NFT world. The game features Vivienne, the company mascot, searching for 200 candles. That’s one for each year since the brand was established. These candles are found in various cities together with an accompanying postcard, some of which are collectible NFTs.

The LV brand is usually associated with adults and does not appeal to the younger generation. However, by associating a cute mascot with the brand and putting it in a video game that randomly drops NFTs, perhaps this is a subtle way to influence the younger generation when it’s time to make a purchase? Out of the 30 NFTs featured in the game, 10 were created by Beeple.

Wander through this idyllic game for a chance to collect NFTs accompanied by the LV logo Image via PCMag

Fortnite x Balenciaga

One of the most high-profile successful collaborations is the Fortnite x Balenciaga project. The latter set up a virtual store in the game, replicating physical retail spaces in the real world. Avatars in the game browse the store, just like their owners could in real-life. The items sold in the shop, such as skins and items, melds perfectly with the Fortnite world. Some of the items have a physical counterpart with eye-watering high prices that did nothing to deter the enthusiasm of the diehard fans.

This is an attempt to introduce a new way to shop online by making it an immersive experience, rather than just the point-and-click of Web2 that we’re familiar with. So you’re looking at another way for a luxury brand to target youngsters, whom they hope, will be the next generation of luxury shoppers after the wealth transfer happens from Boomers to them. Whether this will play out in the way Balenciaga hopes, it’s certainly helping to propel the popularity of fashion NFTs.

Fortnite characters decked out in the latest schwag from Balenciaga Image via YouTube from Highsnobiety.com

Conclusion

Let’s be honest: only so much money can be made with just NFTs dressing avatars in the metaverse. Without any ties to the real world, its use-cases are only limited to the fashion-conscious and avid gamers. Moreover, the “earn” part of the equation is mainly centered on the secondary market of reselling, which is easily speculative at best. Therefore, for NFTs to successfully cross over into the real world, the supporting technology also needs to be developed, mainly augmented/virtual reality and how this reality can be perceived. (Will we all walk around wearing some kind of hi-tech glasses?)

Yet, with so much emphasis on the visual aspect, which is where the metaverse seems to be heading towards for the moment, what about the loss of the tactile sensation? Aren’t we missing out on something else in our headlong pursuit of gratifying our visual sense? After all, our eyes aren’t able to enjoy the luxury of silk.

While waiting for the AR/VR tech to be developed, the only thing we can do with fashion NFTs is use them like Snapchat filters to show off to the world in a virtual manner. While looking presentable is important online, what does it do to our self-esteem if we feel beautiful or desirable only in the virtual world, surrounded by these digital items, yet in real life, our closet is bare?

As enticing as it may seem, fashion NFTs feels more like a gimmick now and not necessarily something seen as a must-have. So I’m cautiously sitting on the sidelines, waiting to see if any other kinds of earning models will emerge as this space continues to grow. If not, it will just be one more frivolous thing to spend money on.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Wear-to-earn NFTs: For Real? appeared first on Coin Bureau.

Will GameFi be Bigger than DeFi? Blockchain Gaming Levels Up

Nikolas Ketonen — Fri, 28 Jan 2022 02:03:14 +0000

Most of those who follow cryptocurrency will remember, or at least have heard, of the DeFi summer. This happened in 2020, and at that time, it looked like DeFi would be the prevailing use case for crypto and blockchain. However, a year later, some game resembling Pokémon took off. I believe everyone knows what I’m talking about, but to make sure, I’m talking about Axie Infinity. The native token of AXS went from a $200 million market cap to almost $10 billion market cap in under six months. At that time, the market cap was about one-fifth of Activision Blizzard’s market cap, which is crazy considering Axie Infinity is only one game while Activision owns games like Call of Duty, Candy Crush, World of Warcraft, and many more.

This, plus all the metaverse hype after Facebook’s rebranding, has made crypto people question whether GameFi could surpass DeFi. But, depending on which metrics you use, it already has. In this article, I’ll go over some basics of GameFi and DeFi and look at which of these will be the true winner.

What Are DeFi and GameFi?

Decentralized finance is meant to replace centralized intermediaries in the financial sector. The thesis is that instead of a bank, you can have a smart contract that assures both parties play according to the rules. With these smart contracts, you eliminate the cost of using a centralized party. The best example is borrowing and lending. Currently, if you deposit to a bank, you’ll receive almost no return while the bank makes money lending your assets. With DeFi, you can lend your assets peer-to-peer and receive the full interest directly. The rates are set directly by demand rather than by a central bank. Another heavily employed use case of DeFi is decentralized exchanges like Uniswap, where you can trade assets from one to another without relying on a centralized party like a broker. Currently, these are used mostly for swapping one crypto to another, but Kevin O’Leary did mention in an interview that the whole foreign exchange markets could be replaced with DeFi to make it both cheaper and more efficient. If you want to learn more about DeFi, you can start with this video by Coin Bureau.

Here’s another good video on defi. Image via Finematics YouTube

GameFi resembles DeFi in many ways, but the most significant difference is that all of it happens in a game. Essentially all games that have some economic ecosystem are included in GameFi. Often GameFi is linked to blockchain and crypto, but some could argue that it’s far older than that. However, the problem with GameFi without blockchain has been if you don’t own it, you’re not allowed (by the game companies) to sell it. Markets that have formed around selling in-game items have also been highly illiquid and, in many cases, untrustworthy. With crypto and NFTs, all of this has changed. Looking at what Axie Infinity has done, as an example, and the amount of popularity it has gained shows that it’s here to stay. But essentially, in one sentence, GameFi is gaming combined with finance (as the name implies).

GameFi vs DeFi: Follow the Money

When comparing two things and their popularity, two aspects often dominate – money and users. Let’s begin with money, how much is invested and how much can be ultimately. The fast and easy answer would be that DeFi will dominate since, as its definition implies, it’s here to take out the banks and all other financial intermediaries. However, no matter how bullish you are on cryptocurrencies, you need to understand that it’s not going to happen, at least for a while. Therefore, it’s a lot tighter if we think about how much capital each of these industries could realistically gather. There are just a few problems. First, where is the line drawn between GameFi and DeFi?

This is something I can’t figure out, and let me elaborate on this. Think of The Sandbox, and think of The Sandbox as fully decentralized. Now on The Sandbox, you can buy land, lease land, show your NFTs, and more. Now, if I buy land through a decentralized platform (OpenSea isn’t) and start leasing this to companies or private people who want to host events on my land (again through a decentralized service utilizing smart contracts), then is this DeFi or GameFi? I’m doing everything that DeFi represents, but because I’m doing it in a game, then it’s GameFi? I don’t think this is a problem per se since what does it matter what it classifies as, as long as I can make money doing it. It isn’t easy to compare these two without a clear line. However, hopefully, you see my point in the difficulty of drawing a clear line between these two.

This is a metaverse only real estate company. Didn’t think you’d see that did you. Image via Metaverse Property.

Another problem we have is the measurement we use. In DeFi, measuring the popularity in total value locked (TVL) is typical, while GameFi often looks instead at transaction volume. However, we’ll make the best of it and start with TVL. According to this article by Bloomberg, the top five DeFi dapps had a TVL of $130 billion, while the top 5 games only had $14 billion. Clearly, DeFi takes the edge here, but it’s not an entirely fair comparison since the structure and meaning of these two services isn’t the same. It’s reasonable for someone to put millions in stablecoins and lend them to generate interest payments, but putting millions in Axies isn’t something people do, or at least it’s not that common and probably won’t be anytime soon either.

Comparing transactions, it’s also a win for DeFi. GameFi has about $100 million transactions per day. In comparison, Raydium (an automated market maker on Solana) has over $800 million transactions in the last 24 hours at the time of writing, according to Dappradar. Also, it doesn’t look like GameFi will surpass DeFi anytime soon. That’s because the volume of game transactions hasn’t grown at all since August 2021. There have been peaks with up to $350 million transactions per day, but any sustainable levels like this haven’t occurred.

Here’s a look at the statistics of GameFi from Dappradar. Image via Dappradar.

However, one thing not counted in GameFi transactions, which at least to some extent should be included, is NFT sales. NFTs have seen massive growth, and many of them are game related. Just take a look at Gala Games, which consistently sells huge amounts of in-game NFTs. Some of these transactions are made via the game’s native NFT market, while some trade on second-hand markets like OpenSea. It’s hard to guess how much of all the NFT sales are game-related, but I would imagine that if OpenSea sees billions in volume each month, at least a few hundred million are game related. The Sandbox NFTs alone has over 24,000 ETH ($5-10 million depending on the ETH’s price) of volume in the last 30 days.

We can see that DeFi dominates GameFi in terms of money, but what about the future? Now, let’s look at traditional banks. The annual revenue is an estimated $2.3 trillion for retail banks, and it does make it seem impossible for some games to overtake that, if DeFi were to overtake traditional banks. However, as I mentioned earlier, it looks improbable that the underlying companies that run the world’s money markets get entirely overtaken by smart contracts in the coming years. GameFi, on the other hand, has unimaginable potential, and all the trends are looking positive. For example, look at this metaverse report by Grayscale, which predicts revenue of up to $1 trillion for the metaverse sector in the future. Now I can’t say for sure what’s going to happen, but looking at all of this, I would say that while GameFi has a long way to go to catch up to DeFi (in money terms), it’s not impossible.

GameFi vs DeFi: Users and Popularity

DeFi might have won the competition regarding money, but users and popularity is an entirely different game. Simply by reading the news, you might have noticed that the trend is clearly on GameFi’s side. There are consistently new articles about how GameFi and NFTs are growing, while articles about DeFi are about how all the tokens haven’t moved anywhere in the last year. GameFi is the new hot thing, which can be seen in the number of users.

According to this Bloomberg article from the 7th of December 2021, GameFi has already surpassed DeFi in user popularity. Bloomberg used Dappradar as their source, so I will do the same and look at their most recent report from the 13th of January. According to the report, games now account for 52.4 % of all dapp user activity compared to DeFi, which only stands at 34.7 %. Another interesting statistic from the report is that DeFi has followed the global macro trend with reduced activity. On the other hand, game activity doesn’t seem to be bothered by the plunge in both crypto and equity prices; they just keep on growing. This is also one of the beauties with GameFi; it’s not meant for the elite to make more money. It’s just a way for average people who like to play games to enhance their gameplay by ownership and play-to-earn potential.

Here you can see how games keep growing despite everything else taking a beating. Image via Dappradar.

Using Dappradar again, we can see that in the last seven days, GameFi does have more users than DeFi. Especially if you were to remove PancakeSwap from the count, it would be absolute dominance by GameFi. In the last 30 days, the victory has gone to DeFi, but that’s primarily because of the tremendous activity on PancakeSwap. However, in these statistics, there are some things I find a bit sketchy so let’s look at something else too.

According to Dune Analytics, the total number of DeFi users is a little over 4 million. This same statistic can’t be found for GameFi or blockchain games but let’s look at Axie Infinity alone. On November 14, 2021, Axie Infinity tweeted that over one million unique wallet addresses had interacted with the Ethereum sidechain Ronin created for Axie Infinity. That’s just one day and one game, and it pretty much shows the popularity and potential for GameFi.

The last thing I want to talk about regarding users and popularity is the potential if compared to their traditional equivalents. DeFi is currently used to leverage your capital for additional income, which restricts the number of users it will attract. It’s true that many people use banks and have investments, although they don’t have much capital. However, I would argue that the threshold to dabble in DeFi is, for the time being, is quite high. There’s not much point in lending out $1000 in USDC and going through all the trouble and risk for a max $100 annual reward. GameFi, on the other hand, has the beauty of being available for anyone. Many games do require initial investments in the form of an NFT, but that too is being solved with scholarships and other options. According to Statista, there are over 3.2 billion gamers around the world. That’s a massive market and shows the potential of how many users this could reach.

GameFi vs DeFi: Development

Suppose we compare the traditional equivalents of GameFi and DeFi in development and the number of products out there. In that case, I could make an educated guess that there are more games than financial products out in the world (hopefully, I’m right, usually not). That’s because it’s easy to create a game, and there aren’t any rules or restrictions stifling creativity. Look at games from only a couple of years back, and you’ll see the massive development we’ve made. Not only have the graphics gotten better, but everything else is being improved too. This also ties back to the users. If you have a market of over 3.2 billion people, there’s no wonder developers and creators are rushing in to create the next hit. And while it’s true there’s a massive market for financial products, it’s a lot more difficult to serve these people due to the many regulations and laws.

As you can see the revenue is growing at a rapid rate too for the gaming industry in general. Image via Statista.

Creativity in the gaming industry was something Jason Brinks, the face of Gala Games, mentioned in an interview. He said that he joined a gaming company because he saw the industry as leading in creativity and with unprecedented growth potential. The funniest thing is that he actually had philanthropic ideas and still joined a gaming company. Philanthropy and gaming might not be something people often associate but just look at Axie Infinity. People in the Philippines who’ve lost their jobs due to the ongoing pandemic have had the chance to earn their income by playing the game. And not just some minimum salary, many earned substantially more than the average wage in the Philippines.

Then lastly, here are some statistics to back my claims. A few weeks ago, Coindesk reported about the growth of DeFi dapps. At that time, there were 400 active blockchain games and a total of almost 1200 games, including those that didn’t have activity within the previous 24 hours. This might not seem like a lot, but it’s important to remember that GameFi and blockchain games have only recently become a thing. The growth was also remarkable, with 91% year over year. Also, another factor to point out is that last year blockchain games gathered a total of $4 billion in venture capital. Not too bad.

Decentralized-Gaming-Finance (DeGameFi)

Although I’ve mentioned this multiple times in the article, I want to highlight it again: drawing a line between the two terms discussed is hard. It’s also unnecessary. Both of these are terrific use cases for blockchain technology, and by blending them, we have the opportunity to gather the best of both. Yes, I want to stake my in-game currencies for more rewards and then purchase some NFTs with it. Then maybe I want to borrow against that NFT to get some other currency. Or perhaps I want to lend out my rare NFT since I know I won’t be playing for a while. The possibilities are endless.

There’s so much that can be done with GameFi and Axie Infinity and it’s whole ecosystem with scholarships and everything else is a great showcase of that. Image via Arcadarena

The combination might be a huge deal for crypto. First, gaming is something many people understand, and it might be a thing that draws the masses to cryptocurrency and blockchain. Then if there’re built-in DeFi features in these games, it’s an opportunity for DeFi to attract people from the inflowing masses. And after that, we have people using and familiarizing themselves with crypto, which is what we want in the end.

Conclusion

GameFi is huge, and it will be even more prominent in the future. However, there are a few closing things I want to address. Not so many days ago, Coindesk published an article with the TL;DR that traditional game developers hate NFTs and crypto. This may seem like something which could significantly restrict the growth of GameFi, but I doubt it. That’s because the gamers like the ownership aspect of NFTs and the play-to-earn from crypto. If enough people want it, someone will do it since you make money by making things the consumer wants. 3.2 billion gamers who want NFTs and crypto will eventually get it.

Another thing that I didn’t mention is the amount of capital flowing into companies aimed at investing in GameFi. Popular exchanges like Binance and Crypto.com have unveiled funds that will be either fully or partially aimed at funding GameFi projects. On top of that, we have Solana Ventures, Galaxy Interactive, Gala Games and many more who have unveiled their own funds. Most of these funds are between the sizes of $100 million, and $500 million is quite a lot, even if you only count those I mentioned. And to top it all off, we have Animoca brands who raised a total of $360 million at a valuation of $5 billion.

After all these facts and statistics I’ve provided, it’s up to you to decide what you believe about the future of GameFi. There’s no denying that on many levels, it looks terrific, so good it has even managed to pass DeFi in users. It is hard to say whether it will pass in monetary terms, but it’s definitely not impossible. And lastly, why not check out this article we’ve written about the top blockchain games with huge potential. It might give you a better understanding of where the GameFi industry is headed.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Will GameFi be Bigger than DeFi? Blockchain Gaming Levels Up appeared first on Coin Bureau.

Tech Giant Samsung to Use Cardano Blockchain for Reforestation Program

News Desk — Wed, 05 Jan 2022 20:16:12 +0000

Multinational manufacturing conglomerate Samsung will be using Cardano’s blockchain for a new project to plant millions of trees.

The tech giant is launching an initiative to help reforest Madagascar in an effort to fight climate change and improve the natural environment. Samsung will rely on Veritree, a blockchain-based, Cardano-powered platform meant to provide a toolkit to environmental restoration specialists and help them collect and manage data.

Mark Newton, Head of Corporate Sustainability at Samsung Electronics America, said they would be using Veritree to plant over two million mangrove trees. Mangroves are highly effective carbon sinks. They capture CO2 from the air and then store it in their roots, branches, and the sediment that collects around them, making them one of the more efficient mechanisms for removing CO2 from the atmosphere.

“Samsung’s sustainability journey is an ongoing and multi-faceted one. Investing in tech innovations, such as those that create efficiency improvements and minimize waste, in combination with nature-based solutions, are vital in the fight against climate change… Drawing on our history of open collaboration, we’re teaming up with Veritree for the tree-planting initiative as an added way to contribute to a better global society.”

Image via Shutterstock

According to Samsung’s announcement, Veritree “utilizes blockchain technology to provide Samsung with a fully integrated platform to support field-level data collection, site planning, inventory (tree) management, and impact monitoring.”

Veritree’s system was built to “gather data from day one of tree planting and provide greater transparency into the entire process.”

Derrick Emsley, Co-Founder and CEO of Veritree said, “Our mission is to make it simple to incorporate nature-based solutions into any business model and we’re excited by our strategic partnership with Samsung.”

Really cool https://t.co/O5CdTyVzS4 thanks Samsung!
— Charles Hoskinson (@IOHK_Charles) January 4, 2022

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Tech Giant Samsung to Use Cardano Blockchain for Reforestation Program appeared first on Coin Bureau.

How Safe is Decentralized Finance?

Tayler McCracken — Fri, 31 Dec 2021 20:37:50 +0000

Decentralized Finance is considered by many to be “the ultimate solution.” DeFi was born out of a necessity to end the corruption that exists in the traditional financial sector and create a fair and unbiased financial system that can be enjoyed by, and benefit everyone regardless of where they are in the world or their social status. Many consider DeFi as the ultimate utopian financial system that has the ability to dethrone the seriously broken traditional financial system and bring financial health and freedom to the masses in ways that aren’t possible with the current banking system.

Like a knight in shining armour, DeFi is saving the world from the widely considered “evil,” banks and similar to Robin Hood, DeFi is taking money away from the overly greedy rich bankers and giving money back to the fair people of the planet. All this is made possible by a decentralized blockchain infrastructure that supports a true peer-to-peer payment system that cuts out third-party intermediaries who charge fees out the wazoo and take their cut from each transaction and providing the ability for users to access lending products for much lower interest rates and less red tape, while also providing investors and those willing to lend with significantly higher returns than any bank will ever give their customers.

What is DeFi?

DeFi applications aim to recreate and improve upon traditional financial systems, offering all the benefits of financial products such as lending, borrowing, investments, payment systems, mortgages, and even insurance without many of the downsides present in the traditional financial system. Many of those downsides are a direct result of bankers exploiting the general population and syphoning trillions of dollars directly out of the pockets out of average folks like you and me in the form of high-interest rates and insultingly low returns on savings accounts and investments while simultaneously charging fees for every little service.

The Decentralized Financial System allows for digital currencies to be created, traded and managed on a blockchain network. This results in everything within the blockchain ecosystem being shared across multiple computing nodes which can be run by anyone that verify transactions rather than needing to be verified and overseen by banking overlords. People do not need to provide proof of their identities, nor go through tedious KYC processes to use DeFi, and there are no centralized parties that can come in and stop peer-to-peer transactions. DeFi is a revolutionary concept as it gives users anywhere in the world access to a financial system, provided that they have a simple internet connection without the need for a bank and funds can be sent anywhere nearly instantaneously and for fractions of a cent on some networks.

Decentralized finance also provides a financial system where every transaction is publicly viewable and verifiable, creating non-alterable records supporting the idea that if governments and institutions adopted blockchain technology it would result in less corruption and fraudulent activity as everyone would have full transparent access and able to view transfers. Blockchain could also reduce criminal activity as using traceable transactions for illicit purposes is just not a smart way to do crime which is why, despite the ridiculous narrative that that Bitcoin is only used by criminals, suitcases full of untraceable dollar bills is still the preferred method enjoyed by criminal kingpins everywhere.

Some of the Benefits of DeFi Image via apriorit.com

Though, like everything in life and in true Yin and Yang fashion, DeFi also has its share of downsides.

What are the risks in DeFi?

It is not completely Anonymous

Contrary to what many people believe, DeFi and Cryptocurrency transactions are not as anonymous as everyone once thought, or hoped they were. While decentralized financial transactions can be made with no KYC needed, government agencies, you know those ones with the scary three-letter acronyms like FBI, CIA and DEA can quite easily follow crypto transactions from address to address to exchange, then to a bank account. Of course, there are privacy coins such as Monero, and as long as you can find a way to spend your crypto without it needing to touch an exchange or deposit into a bank account then you may be able to bypass this but I certainly am not recommending or suggesting using crypto for criminal purposes, the Coin Bureau does not provide financial advice and certainly does not provide advice on how to be a criminal!

Law Enforcement and Governments are Able to Track Down Some Crypto Criminals Image via cellebrite

Blockchain transactions do not eliminate personal risk

Another misconception is that decentralized finance is safer than centralized systems run by a single institution as DeFi transactions need to pass through multiple nodes, miners and sources to verify and authenticate transactions. It is true that blockchain tech can help protect against administrative and accounting errors and things like bank and economic failures if the financial institution or financial infrastructure fail.

Another crypto feature is that crypto transactions cannot be reversed by anyone, which is a double-edged benefit with a nasty downside. If you accidentally hit a comma instead of a period and send way too much, or send funds to the wrong address, there is no financial institution that is able to reverse the transaction or help you get those funds back. That is one of the reasons I highly recommend using a blockchain domain name to transact with your crypto to minimize risks and wouldn’t you know it, I happen to have an article that teaches you everything you need to know about crypto domain names here.

Another way that blockchain does not eliminate personal risk comes in the form of those pesky hack and scam cases which gives the entire crypto industry a heck of a black eye. Scammers and hackers are the worst, is it really that difficult to be an honest and decent human being and not ruin other people’s lives? Anyway, banks often have comprehensive insurance plans and if your bank account suffers a hack, the financial institutions can often get those funds returned, or at least reimburse you if the hack was found to be a fault in their shoddy security systems. The same safety nets do not apply to crypto, especially with non-custodial wallets. If someone hacks a DeFi platform or wallet, there is a very small likelihood that you will ever see those funds again.

Characteristics of Crypto Scams Image via hackernoon

Regulatory Crackdowns

This is probably the biggest risk and that is the government stepping in to crackdown and impose restrictions on DeFi protocols and stablecoins. While many DeFi enthusiasts will state that it is impossible for the government to stop DeFi as there is no centralized entity to shut down, governments can impose such harsh penalties for using these platforms that it could drive people away from DeFi, preventing new innovation in the industry and agencies can go after the founders and the teams behind these platforms, even the people who make up DeFi DAO’s. I think it is a bit naïve to think that it is impossible to stop users from using DeFi as we have seen entire nations such as China and North Korea block their people from accessing the internet itself, so while it is unlikely that western nations would take such extreme draconian measures to stop crypto innovation, I certainly don’t think it is, “impossible.”

We have seen DeFi users experience multiple scares in 2021 as the SEC issued a threatening warning against Coinbase for wanting to offer DeFi services and launched an investigation against Uniswap Labs which had a ripple effect through the entire DeFi market, driving an exodus of users away from the DeFi world. Regulatory crackdowns on centralized stablecoins such as USDT and USDC also pose a large risk as these stabelcoins provide the majority of the liquidity in DeFi markets and act as common on and offramps to DeFi, a stablecoin drought could also significantly dry up the world of DeFi.

After the SEC Crackdown on Coinbase’s DeFi Offering, DeFi Investors were Spooked and Removed Funds From DeFi Platforms. Image via qz.com

Vulnerabilities in the Code

I have already briefly mentioned hackers and the world of crypto. While many DeFi protocols are coded by some of the most brilliant minds and are often run through plenty of third-party audits to ensure the security of the code, hackers are often one step ahead of the original developers and can find ways to exploit holes and vulnerabilities in the code and run off with thousands if not millions of dollars. It is always very sad to see but not uncommon as we have seen dozens of hacks on DeFi protocols in the past year alone such as the Cream Finance hack where hackers made off with a hundred and thirty million dollars and the Compound Finance hack where hackers made off with eighty million dollars.

A Sad Timeline Telling a Story of All the DeFi Hacks in 2021 Image via cryptosec

Lack of Liquidity

With DeFi applications becoming a dime a dozen, there is only so much liquidity in crypto to go around and it is being spread thin across all the Uniswap clones and Aave, Compound Finance and Maker wannabe’s, not to mention the introduction of lending platforms such as Celsius and BlockFi have taken some market share away from DeFi. This leaves many investors facing liquidity risks in the form of not being able to sell out of their assets as there is no money left or people available to take the other side of the trade. We saw this earlier in 2021 after Shiba Inu skyrocketed turning many people into millionaires on paper, but unable to sell and lock in their sky-high returns as there was not enough liquidity in the market to convert the Shiba into other assets. This can leave many investors stuck holding the bag and unable to dump assets as they plummet in price.

Being a Billionaire on Paper is One Thing, Being Able to Cash Out is Another Image via vice

Impermanent Loss

Impermanent loss is a risk involved when a user provides liquidity to dual-asset pools in DeFi protocols. It is the difference in value between depositing 2 cryptocurrency assets within an Automated Market Maker (AMM) based liquidity pool vs simply holding the asset in a cryptocurrency wallet.

Essentially, if the price of an asset drops as you lock your funds in a protocol, you experience an unrealized loss in the value of the asset and you are at the mercy of price volatility until you can withdraw the funds at a later date. You may not actually lose any money, but rather your gains may be less relative to if you had just left your assets untouched. Inversely, losses can be amplified depending on how the market moves.

The phrase earns its name because any losses are only accepted once the funds are withdrawn from the liquidity pool. Until then, any losses are only on paper and may reduce or disappear completely depending on how the market changes. A more in-depth explanation of impermanent losses can be found here.

Impermanent Loss Explained Image via blog.bancor.network

Flash Loan Attacks

Flash loans are a type of uncollateralized lending that is unique to DeFi. Flash loans are a type of unsecured loan that uses smart contracts to mitigate risks associated with traditional banking. A borrower can receive hundreds of thousands of dollars in crypto assets without putting up any collateral, with the catch being that the borrower needs to pay back the full amount within the same transaction it was sent which is normally within a few seconds. The attack comes when bad actors borrow massive sums of money and uses it to manipulate the market or exploit DeFi protocols to their own personal gain. This recently happened against the yield farming aggregator PancakeBunny as attackers flooded the protocol with capital causing the value of the PancakeBunny’s token to rise, then sold it all at once dumping the price resulting in a drop of 95%, crashing the price and leaving investors at a massive loss as the attackers walked away with about 3 million in profit.

Flash Loan Attack Caused Bunny to Crash over 95%. Image via coindesk

Rug Pulls

A rug pull is a type of exit scam where users create a crypto token, pair it to a leading cryptocurrency such as Tether or Ethereum and entice people to buy the token by promising some utility in a DeFi protocol or high yield returns. The people add the funds to the liquidity pool expecting high returns and once enough wealth is generated into the pool, the DeFi developers take advantage of a malicious back door that they intentionally coded into the smart contract and sell the popular cryptocurrency that the new token was paired with, leaving millions of worthless tokens in the pool.

Blockchain Fraud Exceeded Hacks and Thefts in 2020 Image via coindesk

Asset Risk

When borrowing funds on a DeFi application, users need to put up crypto as collateral and lock it in for a period of time, which is normally the duration of the loan. As cryptocurrencies are inherently volatile, if there is a sharp and significant downturn in value of the token that was put up as collateral, DeFi users can see their funds get liquidated.

Well, all that was depressing, but fear not, there are some ways to make the world of DeFi a safer place.

How to Minimize DeFi Risk

Stick to Tried and Tested DeFi Platforms

There are many DeFi platforms out there that have withstood the test of time and are still standing after an onslaught of hack attempts. This is always a good sign and it shows how robust and comprehensive the code is behind the platform. A good place to check is DeFi Pulse and stick to the top DeFi protocols as it is easier to be confident in the “blue chips,” of DeFi Platforms. This is comparable to thinking: what is a safer investment? Putting your funds into Bitcoin or some meme or food inspired coin that doesn’t even appear on Coinmarketcap with no whitepaper or information about the team? Blue chips and highly reputable projects are always the safer bet.

DeFi Pulse is a Great Place to Check out the DeFi Leader Board Image via defipulse.com

Look for Independent Audit Checks

There are many Blockchain security companies that offer audit services for crypto companies and platforms. These guys are essentially super-nerds, true coding experts who will meticulously comb through the programming code that make up DeFi protocols and ensure that there are no weaknesses that hackers could exploit or malicious back door clauses. When I am considering a DeFi platform, or any crypto platforms to park my funds, I always check to make sure they have passed external audits.

Consider Centralized Decentralized Finance (CeDeFi)

Huh? I know it is a bit of an oxymoron, centralized decentralized finance has caught the attention of many enterprises, investors and crypto enthusiasts. The primary goal for CeDeFi focuses on bringing together the best that centralized finance and decentralized finance has to offer. This model allows for traditional financial institutions to offer the same benefits as DeFi, while also providing the safeguards of traditional finance such as consumer protection, verified regulation, and insurance. The most prominent example of this is the world’s largest crypto exchange Binance offering DeFi services on their platform and the introduction of the Binance Smart Chain network. Binance was arguably the first platform to offer CeDeFi, but it opened up a world of possibilities for traditional financial systems to also be able to get involved and offer their clients DeFi comparable products and features.

Binance’s CeDeFi Diagram Image via 101blockchains

This is a good alternative as Binance offers a level of protection to investors and are willing to pull from their own treasury to reimburse clients who suffer hacks, and there is always a customer service rep available 24/7 to help users get back into their accounts if they forget their password. This is beneficial for anyone who does not trust themselves with all the responsibility involved in taking self-custody of their funds and managing their own private keys as is the case with non-custodial wallets and traditional DeFi. Though, of course, the biggest downside being anytime there is a centralized entity involved, they ultimately have full control of your funds and what the user holds is essentially an IOU from the exchange.

Another advantage of CeDeFi is that the exchange will vet the projects to ensure authenticity, there is no need for complex integrations between wallets and DeFi protocols, the DeFi benefits are more easily accessible, and there can often be lower transaction costs and faster transaction speeds.

Simple Chart Showing the Contrast Between CeFi and DeFi Image via cleo.one

Using CeFi platforms like Celsius and Blockfi and CeDeFi can also often help reduce liquidity risk as there are often millions, if not billions of dollars revolving around the ecosystem meaning that trying to unload and sell crypto positions will likely not be a problem. And that Segway leads us into the next way you can reduce some risk.

Check for Liquidity and Total Value Locked (TVL)

This brings us back to our friend DeFi Pulse where we can find out the financials behind DeFi platforms. The more money locked up and liquid floating around in a platform the better chances that you will be able to lock in profits when the time comes. If you are a bit unclear on why this is important, say you and I are the only two people who hold dog coin number 54 on a DeFi platform. Elsewhere, a whale comes in and buys up dog coin 54, skyrocketing the price of dog coin to a kajillion dollars. Now you and I are both kajillionaires which is great!….. on paper. But who are you going to sell your coins to? I’m not buying your dog coin 54 at a kajillion dollars and you aren’t buying mine so neither of us can realize our profits. That of course is a very dumbed down and simplified explanation of liquidity but you get the point. You can find out more about the importance of liquidity here.

DYOR (Do Your Own Research)

Before putting money into any DeFi platform it is always a good idea to do your own research. A great place to start is by looking into the project, have a browse through its website, check the whitepaper, and this is just a personal opinion, but I do not invest in any platform that has an anonymous team. I want to know who the team is behind a project, ensure that they are qualified to make a great and safe DeFi platform and being known to the public makes the platform less likely to be a rug pull.

Check for community discussions and reviews on sites like Reddit and check out DeFi Safety which is an independent rating organization that evaluates DeFi products and platforms providing a security score based on transparency and adherence to best practices.

DeFi Safety Provides Trustworthy Reviews of DeFi Platforms Image via defisafety.com

Open Source is a Good Sign

While you don’t need to understand programming code, one really positive sign of confidence is code that is open source, available for anyone to go in and verify. Open source code means that the team has used code to build a platform that anyone can go in, scour through and verify to ensure that there is nothing malicious hidden in there, and coding experts can verify for themselves that there are no holes that can be easily exploited or flaws in the program. While this is by no means a bulletproof method, I would rather invest in a DeFi protocol that had its code criticized and combed through by thousands of programmers checking for authenticity and security as opposed to a project that doesn’t allow their code to be seen by anyone external.

Keep Your Wallet Safe

Of course, keeping your wallet safe is like crypto 101 and stands true with DeFi. It is very important that your private keys remain private, and your recovery phrase is written down, NOT stored online where hackers can get access, but written down and kept someplace secure. If a user loses access to their device, their computer or phone crashes or gets stolen or they are logged out of their non-custodial wallet, there is no force on earth that will be able to help get you back into your wallet nor recover your funds without your password and/or recovery phrase. It is also important to be aware of scams such as sim swapping and airdrop scams that trick people into approving transactions on scam websites or falling for bad actors pretending to work as a member of customer support for a crypto company. Remember that nobody will ever ask for your private recovery phrase, aka secret phrase, aka seed phrase, nor password or private keys, make sure that information is always kept private. Check out Guy’s comprehensive video on safe crypto storage here.

Closing Thoughts

The world of DeFi is a wonderful place, providing people with opportunities to achieve a level of financial health not possible in the traditional financial system, and providing millions of people anywhere in the world access to a financial system where they have no access to banks. Though, like any technological innovation, this revolution is not without its risks. While nothing in the financial world, traditional or decentralized is ever 100% risk-free and there are always risks present, by being careful, doing your research, being skeptical and using due diligence and not falling for things that are, “too good to be true,” you can take the reasonable steps necessary to navigate DeFi with as little risk as possible. DeFi is enjoyed by millions of users every year, with the majority of people never falling victim to the risks that are present. I have been using DeFi without issues for a long time now and I am certainly no genius, in fact, many who know me would laugh at the very concept as I am about as average as they come. Maybe even below average as I was well into my adult life when I found out that yoghurt was a diary product and I thought the word “height” was spelled “hight” for an embarrassing number of years, and one time I was walking around the house looking for my toothbrush….as I was brushing my teeth. If I have been able to navigate DeFi successfully for this long, I am confident that anyone can!

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post How Safe is Decentralized Finance? appeared first on Coin Bureau.

Crypto Charities and Donations: Embrace The Gift of Giving

Nikolas Ketonen — Fri, 24 Dec 2021 17:20:46 +0000

What a wonderful time, Christmas is right around the corner (might be after Christmas when you read this) and 2022 is getting closer and closer. When looking back at this year it’s safe to say that at least for those who invested in cryptocurrencies it’s been a great year. Bitcoin is up 100%, Ethereum over 500%, and Solana a whopping 11,000%. Now if you’re one of the lucky ones to have invested in these in the beginning of 2021 you might be thinking of something to do with all the money. What I would suggest and what I think each and every one of us should do if in a position where it’s possible is donating some to those in need.

There’re so many people in this world in need of help and I think it’s all our responsibility to take care of those in need. By all means we should enjoy our success and not try to carry the weight of the world on our shoulders but when you make money it’s important to give back. It’s also important for the sake of the whole cryptocurrency sector. There’s so much negativity surrounding the space whether it be about environmental concerns or that only criminals use cryptos. That’s why we need to rise above and show the world wrong by doing some good. Also, Christmas is coming up and what better gift than the gift of giving.

To make this easier for you to choose where to give and how to donate I’ve gathered a small list with both crypto native charities as well as traditional players accepting cryptos. Also, I’ve included some ways to send crypto to your friends and family in order for you to bootstrap their crypto journey too.

The Giving Block

The Giving Block is a nonprofit organization founded in 2018 by Alex Wilson and Pat Duffey. After the 2017-2018 bull market they saw the need for a way to make it easy for nonprofits to accept crypto donations. Since then, they have without question become the number 1 crypto native charity platform that provides an important service.

The Giving Block allows nonprofits to register at the site and start accepting donations in cryptocurrency. What’s great for nonprofits is that most of the time crypto donations are cheaper for them than traditional ways. For donors there are a few particularly great features which separates The Giving Block from many traditional charities. When donating you can naturally directly give to a nonprofit of your choice on the site, or you can choose to donate to The Giving Block’s crypto adoption fund or crypto cause fund. These automatically distribute the funds to those included in the fund. The first includes all US-based nonprofits from the site and the cause funds depend on which you choose to donate to. Those who have donated or even thought about donating know the struggle of deciding where to donate when there are infinite possibilities, thankfully The Giving Block Solves this. And, although the funds are distributed to US-based nonprofits they have a global impact. Many of the nonprofits aim at solving global problems.

If you’re someone that needs a special occasion to donate The Giving Block provides that to you. The Giving Block organizes different campaigns including #TheGivingTuesday and #NFTuesday. I’ll talk later about NFTs but a few words about The Giving Tuesday. This year it was organized on the 30th of November, it’s meant to become a yearly thing to get people to donate. This year there was an astonishing amount donated, a total of $2.4 million and there were more than a thousand nonprofits participating, up from just 120 a year ago.

Currently they have the Bag Season going on to boost this years donations. Image via The Giving Block.

Another feature on The Giving Block is they have great tools to help you with taxes. In some cases, you can lower your tax liability by donating. However, keep in mind that The Giving Block is based in the US and the tax laws are different in each country, so make sure to check which things apply to your country. Still, it’s a great feature for those who are looking to get some personal gain when doing good.

Lastly about this site, if you’re thinking about donating here, you’ll be happy to hear that they support a wide variety of cryptos. These include big names like Bitcoin, Ethereum, and USDC as well as some smaller coins like metaverse projects Mana and Sand. So, if you had some money in the metaverse tokens before the big rise then maybe donating some Mana or Sand would be nice to do.

Giveth

Giveth is another crypto native project that has a few features I like and wanted to highlight. First of all, anyone can create a project here to raise funding for a cause. This can be risky since certain people could just be scamming to try and get easy money. However, since Giveth uses the Ethereum blockchain they can trace the funds donated to verified projects. This is great and solves one of the biggest problems in traditional charities and donations.

Here’s what Giveth is. Image via Giveth.

The second great feature I wanted to point out is about Giveth’s structure. Giveth is open-source and governed by a DAO and the GIV token holders. You receive GIV tokens when donating, which means you become part of the community and can stake your tokens in order to receive additional rewards. However, for a project like this I don’t see earning rewards as the main driver. Rather you get to participate on the ground level in a growing philanthropy project. Giveth has an active discord group and they urge people to join and discuss ideas.

This project, although being in early stages, really solves many problems of traditional entities and takes philanthropy to a whole new level. I believe that a project like this has tremendous opportunity to grow since there is a huge underlying demand for the afore mentioned traceability. The community governance is also great and that’s why next up I’ll be looking at DAOs.

DAOs for Philanthropy

The possibilities are endless. Some DAOs aim at buying an NFT and donating future profits to charities like PleasrDAO or then the projects can be more directly linked to philanthropy like the one Giveth aims for. I’ll quickly introduce you to a few but there are many more out there and nothing is stopping you from creating your own if you so like.

PleasrDAO

While this is not a project you can join or have access to it’s still worth a mention. This is a DAO consisting of DeFi enthusiasts and early NFT adopters and their idea is to buy rare NFTs, make profits from them, and then distribute those to the community. The best example here is the original Doge meme. PleasrDAO won the bid for this piece for a massive $4 million, however, rather than just keeping it, they fractionalized the NFT so that the community can be a part of it. Then with the money made here some amount goes to charities. This can actually be seen in The Giving Blocks CryptoGivingTuesday since @ownthedoge was the single biggest donor donating over $900k.

Nothing beats the good old Doge meme. Image via PleaserDAO.

Endaoment

This is a project that in 2021 raised a total of $2.5 million from various investors. Endaoment aims at allowing the community to create funds for different causes. The fund allocates resources to different organizations listed in the description based on a smart contract running the fund. On top of that you can donate to certain organizations directly. Currently you need to be US based to create a fund and I don’t know whether that’ll change any time soon. What’s great though is that a fund can be created for something you’re passionate about and feel the need to make better. For example, there’s a fund to improve basketball playing opportunities via different approaches where one is to renovate public basketball courts. This fund has already raised over $900k. The total donations on Endaoment are however much higher than that and is sitting at almost $12 million. For those looking to donate you’ll be happy to know that they support many different cryptocurrencies.

Earth Fund

Earth Fund is still in its early days but it does deserve to be mentioned. From all of these mentioned projects Earth Fund most resembles any other crypto project. How it works is that there is a token called 1Earth which can be bought on KuCoin and it can be staked to earn gov1earth tokens which grants you a voice in the community. Why you’ll want this is that you’ll get to decide which causes get supported with the treasury. The treasury currently consists of 150 million 1Earth tokens (15%) and it will grow once people start to donate to causes since 1% of donations will go to the treasury. This is at least how I interpreted what I read. However, they have a 50-page whitepaper so I might have missed or misinterpreted something.

This is how the ecosystem works. Image via Earth Fund.

This sounds like a wonderful project but there’s one concern I have and it has to do with the token allocation. For a philanthropic project I would have liked to see the treasury a bit bigger. Currently advisors, investors and the team hold 23% and there’s 21% for platform reserves. No idea what those platform reserves are intended for but I would have hoped for a more charitable allocation. That’s why buying 1Earth tokens won’t be that big of a charitable thing to do. However, this project sounds great and once you’ll be able to donate to causes through the site I’ll be there.

NFTs

As with DAOs the possibilities here are endless. We have seen both those who donate everything from a certain NFT sale to charity as well as those who create entire projects with the sole purpose of raising money for charities. NFTs are also an innovative way for existing nonprofits to raise funding.

To take an example of the first case I mentioned, take a look at Jack Dorsey’s first tweet. He sold his first ever tweet as an NFT for $2.9 million and gave it all to charity. Now for a person like Jack Dorsey giving away $2.9 million dollars isn’t a big deal but still it’s a lot of money for the charities. Also, for the buyer of the NFT I think it feels a lot better knowing that the money goes into good use rather than in the already overfilled billionaire’s pocket.

As the next example I have one that somehow has stuck to my brain and still amazes me every time I read or hear about NFTs. This is a story of a 14-year-old girl who made a million in 10 hours by selling 8000 beluga whale NFTs called Belugies. She did this since she wanted to raise funds for the endangered beluga whales. After making that much money she donated $100k to two different foundations helping the whales and another $100k to an organization that supports children hospital programs in UK. Now I know that this wasn’t the best example since for a project to truly be charitable you could have donated a bit more than 20 %. However, I think it shows how impressive amounts of money can be made with a good cause and project. It shows the potential of using NFTs as a fun and easy way to raise money. Yes, in this example she had help from her older brother who’s familiar with the tech but still, mind blowing how something like this can happen from everyday people and make such a huge impact.

There’s still some left if you want to get your hands on a cool looking beluga whale. Image via Belugies

What’s great to see is that traditional organizations have noticed the NFT sector. Recently Unicef announced that they’ll be minting 1000 NFTs to celebrate their 75th anniversary. I think this is great. It’s understandable to think that if you purchase these NFTs you won’t make any money, but when it comes to charity NFTs that’s not the point. For you as a donator I would look at it more as a proof-of-donation and a memory of doing something good. Not every NFT has to be an investment.

Super interesting to see how well they do with this. Image via Unicef.

Lastly on NFTs I wanted to tell you about one interesting project called DoinGud. This is an NFT marketplace that will have a charitable aspect to it. When a creator issues an NFT a minimum of 5% of the earnings will go to charity and with second-hand sales a minimum of 2.5% also goes to charity projects. The project is still in beta mode but I have high hopes since the project has received huge amounts of funding and is backed by some big names like Alameda Research and Sandeep Nailwal the co-founder of Polygon (Polygon is also a partner of DoingGud).

Crypto As a Gift For Newcomers

After going on a donation rampage on the sites I just listed you might want to give some to family and friends, if you have any left. Crypto is a fun and valuable gift since you’re setting someone up to become financially free. Okay, 10 bucks in Bitcoin won’t make anyone financially free but it’s a start.

When you get that 0,0001 BTC you wished for.

For most of you reading this piece I suppose cryptos are fairly familiar and you know that sending cryptos isn’t a big deal. Basically, you just need to get the wallet address of your friend and make sure it supports the tokens you’re sending and that’s it. However, what do you do when you want to gift crypto for someone who doesn’t have a wallet address?

There are a few ways you could to this and the first option would be to buy them a wallet. Buying your friend or family member a hardware wallet and setting it up with some crypto is a great way to start. Not only do they get to store their cryptos in one of the safest way possible but also, I would argue that they are less likely to sell them. If you don’t know which hardware wallet you can look at our hardware wallet review for some guidance. The one downside that I immediately think of with this is unfortunately cost. Hardware wallets can be a bit expensive, and depending on the amount you planned to spend on that gift the cryptocurrency portion might be quite small. However, as pointed out earlier maybe the point isn’t to make them financially free but rather to just get them started. Therefore, the amount you give isn’t the most important part, it’s already a big thing that you set them up with a wallet and show them how it works.

Highly recommend this to anyone lookin into buying a hardware wallet. Image via Coin Bureau

Another more cost-efficient way to send crypto to beginners is with centralized entities like Coinbase and the Cash App by Block (formerly known as Square). They both allow you to gift cryptocurrencies even without the receiver having an account on their sites. Naturally though, in order to redeem these cryptocurrencies, you need to create an account. When sending cryptocurrency like this you only need the receivers email address or phone number. The receiver will get instructions on how to set up an account as well as how to redeem the gift. A good thing is that the gift, at least for Coinbase, can be cancelled at any time and if the receiver doesn’t redeem the gift in 30 days it will automatically cancel, but hey who would say no to free crypto?

Conclusion

Hopefully I managed to inspire you to at least consider sharing some of your gains with those in need. I think it’s amazing to see cryptocurrencies take such a significant role in working for a better future. Of course, there are flaws in this sector too but the many projects that came across me while doing research for this piece made me further believe in the good this sector and technology can do. There are so many projects already and even more in the pipeline. Also, what amazes me is how relatively simple it’s to create your own project if you so like. Nothing stops you from creating NFTs with a philanthropic twist or setting up a DAO for a noble cause. Maybe you won’t make $1 million with your first NFT launch but every penny counts.

To end this piece, I’ll quote a tweet I saw just before writing this conclusion by non-other than MicroStrategy CEO Michael Saylor “Give a gift that no one else can take away #Bitcoin”.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Crypto Charities and Donations: Embrace The Gift of Giving appeared first on Coin Bureau.

Top 9 Projects In The Solana Ecosystem: Huge Potential!

Nikolas Ketonen — Thu, 23 Dec 2021 23:58:43 +0000

The performance of Solana in 2021 has been astonishing. Unless you’ve been living under a rock there’s no way that Solana’s rapid growth has gone unnoticed to you. Not only has the price of Solana risen, the whole ecosystem has seen massive developments. I have to say looking into it has been a thrill and there are so many projects that I could have included in this list. The speed and low-cost offered by Solana have made it a great place for many projects to build and this is just the beginning. In this article I’ll take a look at some of them.

Then before getting into this list if you aren’t familiar with Solana, I suggest watching Coin Bureau’s videos where Guy explains why some even call Solana the Ethereum killer. Also, as said there were so many good projects, I could have picked many more but since this is not meant to become a 200-page book I had to narrow it down to these 9. I tried to pick projects with a different use case to show how broad the ecosystem is and provide you with a few things for everyday use.

1. Audius

If Solana is dubbed the Ethereum killer, then here you have the Spotify killer. Audius is a decentralized streaming platform for musicians. Audius has incorporated a social media style approach and allows anyone to post music to start gaining an audience and interact with them. Audius is powered by the AUDIO token that has a market cap of almost $900 million at the time of writing. According to the Audius dashboard they have over 6 million unique users this month, up from just 1.8 million a year ago.

I highly recommend taking a look at Audius. It’s a great example of how crypto can disrupt our current applications. Image via Audius.

I’m not going to go too much into detail since the team at Coin Bureau has done that and you can find an amazing video about Audius there. However, what’s interesting is that Audius started on Ethereum but has since migrated to Solana. This is because when Audius needed scaling Solana was reportedly the only one that could support this due to Solana’s low gas fees and speed. This shows the strength of the whole Solana blockchain when big name projects like Audius choose them. Audius even conducted extensive research on over 20 layer-1 and layer-2 scaling solutions before concluding that Solana is the best.

What makes Audius unique from anything we’ve ever seen is its creator friendliness. You might have read about how poorly artists on Spotify get compensated for their work. This isn’t a problem on Audius since artists can set their own payment model. It can be a subscription, one-time fee, or a combination of both. You can soon even set restrictions that your music can only be heard at a certain altitude or location, anything is possible. Then we’ve got the whole NFT side which makes up more opportunities to further engage the fanbase through Audius.

Here are some statistics about Audius. Image via Audius Dashboard

There’s so much to say about Audius and I really suggest you watch the CB video I told you about since I can in no way include everything in this short section. However, as a last piece of information, Audius earlier this fall made a partnership with the popular mobile application TikTok which further proves legitimacy and demand. So before continuing with this article maybe you want to go download the Audius app and put on some background beats.

2. Raydium

Next up we have a project which I’m sure many have heard of. Raydium is an AMM (Automated market maker, that provides many use cases. This is also the DeFi project with highest Total value locked (TVL) – currently $1.65 billion according to DeFi Llama ($1.8 billion according to Raydium). On Raydium you can access four different services, Trade, Yield, Pool, and AcceleRaytor. Many of these are self-explanatory but let’s go through them along with some benefits of Raydium.

This is what they have to offer. Image via Raydium.

Since Raydium is built on Solana it allows for much faster and cheaper transactions when compared to its Ethereum based competitors. However, what Raydium hasn’t managed to build is the best DEX for Solana which is why trades occur on Serum when using Radium’s swap and trade features. What’s great about trading on Raydium is that it has all the nice features of a centralized exchange while still remaining decentralized. These features include order books, charting, and even limit orders. The fees here depend on whether your order is filled through Raydium’s own liquidity pools or Serum’s order books, but they are from 0.22-0.25 %.

If you prefer passive income instead of trading, then you could try yield farming or liquidity providing. Yield farming opportunities on Raydium are great and there are many pools with high TVL while still offering yields of over 65%, not too shabby. When it comes to liquidity providing it’s extremely easy to do and you’ll be able to withdraw your funds at any time. Liquidity providers will earn a cut from the trading fees.

Here’s a look at the Raydium trading dashboard. Good looking and simple, just the way we like it. Image via Raydium.

Lastly there’s the Raydium launchpad. I’m not going to cover this in depth since there aren’t any upcoming projects and not that many which have been done. Second of all I’ll be covering a few launchpad projects later. However, if you use Raydium’s other services then I would keep an eye out for any interesting IDOs, they have hosted one for the much-anticipated metaverse project Star Atlas.

3. Serum

Since I mentioned Serum in the previous section it’s only fair to cover it next. Serum is a DEX and provides the back end for multiple products on Solana. Serum enables projects to build applications using the Serum on-chain central liquidity pools. Using Serum’s order book guarantees great liquidity, low-costs, and speed. On top of that it allows developers to share middleware, which is extremely helpful.

To learn more about the project I suggest you head to Serums website and read their docs . Image via Serum.

Serum isn’t anything you’re going to use directly. Instead it’s the ecosystem powering many of the projects you’ll use. These include the afore mentioned Raydium as well as Mango Markets, Oxygen, Star Atlas, Solrise Finance and many more. Why Serum has managed to become so successful might have something to do with its creator. The person behind the project is FTX exchange founder Sam Bankman-Fried. Serum also has investments from many big names including Alameda Research, and Multicoin Capital. Nowadays Serum is governed by its own token SRM and a DAO.

4. Star Atlas

This is a project that I’m not going to go too much into detail on since we’ve already covered it in depth in our great article on blockchain gaming gems. However, since I’m someone who prefers to play some video games when taking a break from crypto rather than watching Netflix, I got really excited when reading about this project. Long story short, Star Atlas will be a game incorporating all the benefits of crypto and NFTs to create a full digital ecosystem where you’ll be able to choose your path and play like it’s your real life.

Why I said “going to be” is because currently it looks like the full game launch is years away. However, to make the waiting more pleasant they will be launching the game in small pieces which will enable you to play some parts of the game and maybe get a head start on others. Also, you can already trade both the Star Atlas token as well as Polis which is going the be the governance token, and even some in-game items as NFTs.

The graphics are amazing! Take a look at this trailer. Image via Star Atlas YouTube

Hopefully, this project will live up to expectations since a game like this would not only revolutionize blockchain gaming but gaming in general. There’re even rumors that when battling in the game you can lose your battle ships or other loot as they will be NFTs. Also, if you look at the trailer I linked to you’ll see that the graphics and the feel of the game is honestly one of the best I’ve ever seen. So, if you’re a fan of games I suggest you keep an eye on this project and try to get gaming early since I believe Star Atlas has some insane potential if they can live up to expectations.

Besides Star Atlas there are many other great games on Solana. A few more popular titles include Aliens VS People and the upcoming Genopets. It’s no coincidence that many upcoming games are based on Solana. To my understanding, as with Audius, the devs at Star Atlas did extensive research on where to build the project only to conclude that Solana is the only one capable of meeting the demanding needs of Star Atlas.

5. Tulip Protocol

After losing all your battleships in the Star Atlas universe it might be wise to come back to the ground and look for some income possibilities. For this yield aggregators might come in handy. Tulip Protocol is the yield aggregator on Solana with the highest TVL at just over $800 million according to DeFi Llama. Tulip has partnered with Solana Foundation, Raydium and Serum.

Here’s a look at some yields on lending offered by Tulip. Image via Tulip Protocol.

Tulip offers vaults and pools from three different protocols that are from Raydium, Orca, and Saber. The yields here are good and astronomical if you go for leveraged yield farming. BUT, as always when you hear the word leverage you need to be careful although it says that the highest APY is 8000% you can’t be entering without knowing what you’re doing. So, this introduction to Tulip was quite short but those that are into yield farming I would suggest Tulip as the go to place on Solana.

6. Maps.me

This is a project that’s downloading on my phone as I’m writing this. Maps.me provides both online and offline maps, and after an update and a $50 million funding round led my none other than Sam Bankman-Fried they now support DeFi. Maps.me isn’t a new project but after integrating DeFi by building on Solana and Serum it has enhanced the user experience. They have over 140 million downloads and 60 million users.

Currently the Maps.me wallet is in restricted beta mode which means not everyone can start using it. However, the plans are to create a full travel service where you can easily book hotels, restaurants, museum visits, and even pay for your coffee. For merchants this is great since their fees are lower than what is traditionally charged, and the wallet will support over 35 different currencies. For consumers it will make traveling a lot easier since you’ll be able to use the app for everything you need. On top of that there will be a way to directly lend your funds to earn yield as well as earning cash back on purchases made. Maps.me will be governed by the Maps token and 100% of earnings will go to token holders. These earnings will not only include transaction fees but also advertising earnings, meaning merchants can advertise on the platform and you as a holder will benefit from that.

A look at some of the benefits up Maps.me Wallet. Image via Maps.me.

On top of the cut holders earn from earnings there will be additional rewards levels you can access by holding a certain amount of the token. These rewards will include higher cash back and discounts to selected merchants and partners. So next time you go traveling make sure to check out Maps.me and not only to find your way around the city in offline mode but also to get some sweet cashbacks and make your traveling seamless.

7. Bonfida

Here’s another project built using the Serum DEX. Bonfida advertises itself as the graphical user interface of Serum. Bonfida allows trading using Serum, trading bots, perpetual swaps, name service, and an API to get access to data from Serum. This project is backed by some heavy names including Alameda Research and Three Arrows Capital. They have a daily transaction volume of about $70 million and an all-time volume of $12 billion.

Visit Bonfida.org if you want to learn more. Image via Bonfida.

I picked this project because I think some of you might be interested in the trading bots and also the naming service. When entering the trading bot site, you can find a few existing strategies and also see their performance. For those who like to create their own bots that should be easy since Bonfida supports TradingView. The naming service might be interesting, especially after the ENS airdrop. However, don’t expect a similar since Bonfida already has its native token which I’ll talk about in the next section. If you like the Solana ecosystem and want a custom domain, then to my understanding Bonfida is the go-to place.

This is the pool where Bonfida is burned and there you have the total amount burned. However, the Fida token isn’t available for US residents. Image via Bonfida.

As mentioned, Bonfida has its native toke called Fida. Fida is used for governance as well as staking. Staking rewards will come when Fida fees are collected and then burned. More clearly explained, all fees gathered will go to a pool which can only do two things, buy Fida and burn Fida. I’m not completely aware how this works but essentially anyone can choose to burn Fida when there’s available Fida in the pool and of that burnt Fida 10% will go to stakers. When staking Fida you’ll also gain access to the API as well as advanced analytics.

8. Solanium

If the projects so far have sounded good and have gotten you to trust the Solana ecosystem even more perhaps you’d like to know how you can get in on the next hot project early? For this we have launchpads and perhaps the best one currently on Solana is Solanium. Solanium has so far completed multiple IDOs where the smallest return (measured from ATH) is currently 1.43x while many projects have returns of 100x and even 200x. Now these returns might make your mouth water so let’s go over how the platform works.

This is Solanium. Image via Solanium.

Solanium has a native token called Slim and in order to participate in IDOs you need to be staking these tokens. When you stake Slim, you’ll be receiving xSlim and the amount you receive depends on how long you lock up your staked tokens. The default is to lock up for 365 days which will get you the same amount of xSlim as you have Slim. If you choose to opt for a shorter lock up period you will receive less xSlim. The system has 5 different tiers depending on the amount of xSlim you have, the two highest tiers provide you guaranteed participation in IDOs while the three lowest tiers only get you certain amounts of lottery tickets. The tiers require the following amounts of xSlim:

Tier 1 – 100 – 1 lottery ticket

Tier 2 – 1000 – 12 lottery tickets

Tier 3 – 5000 – 100 lottery tickets

Tier 4 – 10000 – Guaranteed allocation

Tier 5 – 50000 – Guaranteed allocation

The price of Slim at the time of writing is $2.65 so you can do the math on how much each tier will cost. Naturally, getting a higher tier will help you since there are lots of demand for these projects. Of the current active projects three out of four have over 100,000 people interested. The price action of Slim has been quite good with a 5x increase since it began trading in June 2021.

Some active, upcoming, and finished pools for those of you who are interested. Image via Solanium.

Another launchpad project worth looking into once it launches is Solstarter. It’s backed by Alameda Research (as apparently is every project on my list) and a few more institutions. Solstarter will be launching in Q1 of 2022 and be fully in operation in Q3 of 2022. What differentiates Solstarter is that it’ll be completely lottery based.

9. Media Network

This is a project which I hadn’t heard about earlier and it actually came across my radar by accident when I was looking at Solanart which is the biggest NFT marketplace on Solana. But as it turns out, they are powered by Media Network. So, what is it?

Here are some of the Benefits of Media Network. Image via Media Network.

Media network is a decentralized content delivery network (CDN). As the name implies CDNs deliver content from databases to the users to make it faster and better quality (I’ll leave a picture and explain it down below). This can be done from all storages and all of you reading this know that we have decentralized storage services like Arweave, IPFS (Filecoin), and BTFS (BitTorrent). However, although projects like Audius use these (Audius uses IPFS) they need a centralized CDN in order to distribute their content fast and in good quality. Currently Audius uses Cloudflare which is controlled by Amazon. That means that using IPFS doesn’t solve the problem of centralization and that’s what Media Network is trying to solve by being the first of its kind.

This how the CDN tech works. You can probably guess that when decentralizing it those CDN servers will be run by the Media community and they will be rewarded in Media token for their bandwidth. Image via Media Network Whitepaper

On Media Network itself anyone can start streaming which means it’s both a consumer platform as well as a protocol that can be integrated to an existing project. Currently Media Network has integrations with a few projects including Livepeer which I’m sure many are familiar with, and Handshake that provides a naming service. Also, as mentioned Media Network powers Solanart. For those interested in NFTs I’ll tell you a bit more about Solanart.

Solanart is the biggest NFT platform on Solana and given the recent growth of the sector it wouldn’t be fair not to talk about this. Currently most of the famous NFT projects are minted using Ethereum but the growth of other blockchains hosting NFTs can’t be ignored. The Ethereum gas fees can get so high that many are reluctant to participate in launches. That’s why projects are looking for other blockchains and Solana has proved to be a great alternative. We have already seen many projects on Solana like Degenerate Ape Academy which can be traded on Solanart. I’m sure that as time passes more and more projects will deploy on Solana to avoid paying expensive fees. Solanart’s daily volume is already over 7000 Sol, that’s a lot. The whole site and marketplace is also great and I really like the feel to it.

Bored Ape or Degenerate Ape? Image via Solanart.

Lastly, to wrap up Media Network I thought I’d mentioned that it’s governed by the Media token holders. The Media token is also used for transactions on the network and that means projects wanting to use Media Network will need to purchase the token. When it comes to who’s backing the project I think you can already guess, yes you guessed it, Alameda Research.

Conclusion

There’s no doubt that Solana is a real competitor to Ethereum. When doing research for this article I came across so many interesting projects that could have been mentioned in this piece. As I mentioned in the beginning, what I tried to do was pick projects from different sectors and with different use cases. That’s why I can’t guarantee you that these are the “best” projects but they are good projects. Some projects left out of this list which if you’re interested in the Solana ecosystem are worth checking out are: Oxygen, Orca, Solrise Finance, Mango Markets, and to be real, many more.

Furthermore, I must remind not to confuse a good project with a good investment. Being on this list doesn’t mean they would be on my list for best projects to invest in. That’s because there are many things that determine whether a project is a good investment or not, one of them being valuation. Is a market cap of over $200 million correct for a game which is years away from launch. I can’t answer that since it’s for you to decide but for me the risk/reward ratio doesn’t seem attractive. However, that doesn’t mean that the project isn’t amazing and that I wouldn’t want to play the game the second it’s released.

Lastly, I feel the need to tell that while I’m not currently holding any of the projects on this list, I do hold the Sol token which might make be a bit biased when talking about the whole ecosystem. Still, I hold other layer 1 projects too and feel that Solana is a great project that will grow fast in the coming years. That’s already seen just look at the number of projects (good projects) out there.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Top 9 Projects In The Solana Ecosystem: Huge Potential! appeared first on Coin Bureau.

What is Web 3.0 and Why it Has Insane Potential

Tayler McCracken — Fri, 10 Dec 2021 22:17:10 +0000

Web 3.0 is a buzzword that has been floating around the depths of the internet in recent years and is a term that is often used synonymously with Blockchain technology. I remember when I had first started seeing and hearing, “Web 3.0,” tossed around in various publications and articles, I didn’t fully grasp or comprehend what on earth people were referring to. I remember thinking, “Web 3.0? I’ve never even heard of Web 1.0 or 2.0, what happened to those and how are we already onto Web 3.0?”

With literally no idea what Web 1.0 or 2.0 were, wondering if I had missed out on something important, sort of like accidentally stumbling into Lord of the Rings 3 without witnessing the magic of the first two, the FOMO was strong in me and I knew I had to do some digging to learn more. So, if you are in a similar position wondering just what all this talk is about “Web 3.0,” and if it is all making about as much sense to you as trying to watch the Elf scenes in LOTR without subtitles then you have come to the right place as I am going to break it all down here and get everyone all caught up and up to speed.

History of the Web

When people talk about Web 1.0, 2.0 and 3.0 it is important to make a distinction that there are about as many different explanations, understanding and definitions of these terms as there are people who use them. It is sort of like if you walked up to 100 different people at a Crypto conference and asked them what cryptocurrency means to them, each person is going to give a different answer which is personal to them. There is no universally agreed on, nor “one size fits all,” description for these terms.

What is Web 1.0?

To understand Web 1.0, we need to crank the clocks way back to the inception of the internet itself. Believe it or not, the internet was created for a completely different purpose than watching cat videos, shopping and reading memes as we use it today. The origins of the internet begin with the Defense Advanced Research Project Agency (DARPA) in the United States in 1969, where some of the most brilliant minds from across the globe came together to work on what was initially conceived as a military communications project. The early internet was mostly comprised of web pages that were joined together by hyperlinks, mainly text only without any visuals and the pages were “read-only,” without the ability to interact with anything in any significant capacity. Essentially, the early internet was basically just a giant depository of ebooks.

Web 1.0 became an incredible resource for the sharing of information, with early government branches, research laboratories, educational facilities and institutions accessing web pages and sharing information as they were able to connect via commercial servers. People would mainly log on just to read about things as there was no read/write functionality and much of the content populating the internet was generated offline first before being uploaded and shared. It wouldn’t be until a few years later where basic chat functionality through a bulletin board system (BBS) would be implemented allowing for the interaction between users.

Eventually, dynamic URLs and further innovation and advancements would evolve the internet and its capabilities, transitioning Web 1.0 to 2.0. The transition between these webs was a gradual process that took place over time as new features and functions were added on top of already existing infrastructures so there is no clear definition or time frame for when Web 1.0 officially became Web 2.0. One tidbit of information that I found interesting, feel free to bust out this fun fact at your next cocktail party to impress most likely nobody, is that advertising was actually banned on Web 1.0 and it would be years until any advertisements at all were allowed to exist on the internet. Difficult to imagine that today.

What Websites Looked Like During Web 1.0 Image via The Finanser

What is Web 2.0?

Web 2.0 is where things get exciting and is basically the internet as we know it today, featuring our favourite shopping websites, video streaming platforms, Crypto articles, video games, social media sites, you name it! A simple example that helps visualize the transition from Web 1.0 to 2.0 can be explained through an example of what it would have been like for an eCommerce store. An eCommerce store built on Web 1.0 would have been like a shopping magazine with some basic images and text that a user could scroll and read through but that would be about it. Web 2.0 is what enabled all the additional integrations and features like being able to add items to a shopping cart, check out, pay by credit card, and leave a review for others to read. Web 2.0 would also bring about the revolution of user-generated content in which everyday end-users such as you or I could create things and have them posted to the internet such as this article, or those embarrassing and cringy Facebook posts from back when we were in high school. Who reading this remembers MySpace?

The concept of Web 2.0 was coined by web pioneer Dale Dougherty, an O’Reilly VP (the media company, not the auto parts store) in 2004. Web 2.0 is often referred to as the “Social Web”, “Wisdom Web”, “People-Centric Web”, “Participative Web”, and “Read/Write Web” as this would be the first time that humanity could share information on a global scale and easily socialize and pass wisdom, (or cat videos) to anywhere in the world nearly instantaneously. This era ushered in user-generated content on a scale that was never before possible with things like blogging, video sharing, chatting, voice messaging, emails and social media posts. The “Social Web,” reached mass scale adoption quicker than any other technological advancement in history and would hold that claim until Bitcoin would come along a number of years later.

One of the key driving factors behind the development of Web 2.0 was the creation of new generation Web-related technologies. Ajax, JavaScript, Cascading Style Sheets (CSS), Document Object Model (DOM), Extensible HTML (XHTML), XSL Transformations (XSLT)/XML, and Adobe Flash which provided users with an immersive and entertaining way to interact with websites. Much like the gradual transition between Web 1.0 to Web 2.0, we are already in the middle of the transition to Web 3.0.

Basic Example of one of the Differentiating Factors Between Web 1.0 and 2.0 Image via Myeltcafe

What is Web 3.0?

The concept of Web 3.0 isn’t exactly new as early pioneers who were present from the transition from Web 1.0 to Web 2.0 had the foresight to know that the evolution to Web 3.0 would eventually happen, just as even now there are already early discussions about Web 4.0 and 5.0 though we have barely broken into Web 3.0. The first concept of Web 3.0 comes from Bernes-Lee, a British computer scientist who is credited with the invention of the World Wide Web, coining the concept of Web 3.0 all the way back in 1999. As Web 2.0 is often referred to as the “Social Web,” Web 3.0 is often referred to as the “Semantic Web.”

Bernes-Lee had a vision that the Semantic web would be capable of analyzing all the data on the internet, allowing machines to handle many tasks without human intervention. Much of the capabilities that Lee had imagined the internet would develop back in 1999 have already come to fruition, though a more recent denomination for what Web 3.0 would comprise of came to light in 2006 by John Markoff of the New York Times. Instead of the “Semantic Web,” Markoff would refer to Web 3.0 as “The Intelligent Web,” and would state that it would have 5 characteristics.

The 5 Characteristics of the Intelligent Web:

Semantic Web – Web 3.0 goes beyond focusing on keywords and numeric values so that it understands content like photo, video, or audio and more complex associations between products, locations, and specific behaviours.
Artificial Intelligence – Artificial intelligence software is able to decrypt natural language and understand intention. It can also recognize real from fake and provide more reliable data.
3D Graphics – The third generation of the internet should integrate the use of 3D graphics and VR technologies to provide results regarding real-life places, diverse products, and objects of interest.
Connectivity – Within web 3.0, information is more connected through semantic metadata, leveraging all the available information.
Ubiquity – Data silos are eliminated. Every device should be connected to the network and content is operable by different applications.

It is quite clear that all five of those characteristics are currently evolving and shaping the internet as we know it. Technological advancements are happening in each of those areas to create a more advanced version of the internet from the one we use today.

Differences Between Web 1.0, 2.0 and 3.0 Image via geeksforgeeks

One of my favourite descriptions of the internet was explained simply as being the entire combined knowledge of humanity accessible to everyone. Web 3.0 promises to establish this information in a more reasonable way than is currently possible with the limitations that exist within the current engine schema for companies such as Google. Web 3.0 necessitates the use of declarative ontological languages like Web Ontology Language (OWL) to produce domain-specific ontologies that machines can use for intelligent reasoning; making conclusions and not just matching keywords, enabling machines to process content in a more humanlike way.

Microsoft is Advancing Virtual Reality, Augmented Reality and the Metaverse Bringing Web 3.0 to Mainstream Adoption. Image via Microsoft

But what does Web 3.0 have to do with Blockchain Technology and Crypto?

For the first time in human history, Blockchain technology provides a reliable mechanism that is based purely on clearly defined and indisputable mathematics rather than erroneous, frail and emotionally biased human nature. This allows for the trust and integrity behind the critical systems and functions that run our daily lives. We already trust calculators over our own mental arithmetic capabilities, Blockchain is kind of like that, but for many other and higher impact areas of our lives with use cases ranging across all industries such as finance, health care, supply chain logistics, gaming, farming and agriculture and more. Blockchain technology is already being interwoven into traditional Web 2.0 with an entirely separate Web 3.0 framework being built on networks such as Ethereum.

Evolution of the Web. Image via medium.com/fabric-ventures

The rise of technology such as distributed ledgers and Blockchain allows for data decentralization and an environment for transparent, verifiable, tamper-proof and secure data transmissions and transactions. Blockchain integration into Web 3.0 will allow for the ability to overcome Web 2.0’s current issues with centralization, surveillance and exploitative/manipulative advertising, while also providing the framework to support a decentralized infrastructure that will have the ability to displace centralized tech giants, meaning that individuals will be able to rightfully own their own data.

Some of the Advantages of Blockchain and Distributive Ledger Technology. Image via medium.com/kalyanicynixit

If Web 3.0 adopts and utilizes Blockchain technology and infrastructure in a decentralized manner on a mass scale, this will enable individuals to be truly sovereign, owning and controlling who profits from their time online. A decentralized web will allow users to dictate how they wish to be compensated for their time and data, removing the previous, less than ethical practices from tech giants who are profiting, making billions each year off the exploitation of user data.

We are already seeing early progress in this area with the millions of users (myself included) who have migrated browsers from Google Chrome to the Brave Browser which incorporates elements of Web 3.0 and Blockchain capabilities which allows users to be compensated fairly for their time watching adverts or can choose to turn off tracking cookies and advertisements altogether, freeing them from the surveillance and manipulative practices of tech giants.

Brave Browser Takes the Stalker-like Behaviour out of Web Surfing. Image via bitpartikel

It is important to clarify that Web 3.0 does not automatically mean decentralization, and there is going to be a serious uphill battle if this utopian dream shared by millions will make it to fruition.

Web 3.0 and Decentralization

As I mentioned earlier, Web 3.0 and Blockchain technology are often used synonymously which can be misleading and not exactly accurate. There is nothing in the technological framework of Web 3.0 that states that it has to be built on, nor utilize Blockchain technology at all. Though I think it is a fair assumption that Blockchain technology will continue to further develop, be integrated into, and play a massive role in the advancement of Web 3.0 as we have already seen happen across many industries.

Web 3.0 Networks Such as Ethereum Have the Ability to Decentralize Pretty Much Every Industry Image via prsarahevans.com

This brings us to another disconnect in understanding and that is that many people assume that Blockchain technology automatically means decentralization. Many people are currently under the incorrect assumption that Web 3.0 + Blockchain technology = decentralization, which is not the case. On the contrary, it could actually lead to the complete opposite!

While many of us appreciate that Blockchain technology has the capability of creating a decentralized, true peer-to-peer framework, the opposite is also true. Blockchain technology can also lead to the opposite of freedom and decentralization and lead to authoritative control and centralization on steroids! This is why one of the biggest concerns in the Blockchain space is a government-backed and controlled central bank digital currency (CBDC). Be sure to check out Guy’s video on why this is such a dire concern that is shared by many. This brings me to the next segment, and that is, “the problem.”

Industries That are Leading in Blockchain Adoption. Image via The Blockchain Academy

Why the Push for a Decentralized Web 3.0?

While Blockchain does have the ability to free us from authoritarian regimes and tech giants that monitor and manipulate every aspect of our online presence, it also has the capability of putting us under the thumbs of governments more than ever before. If the government decided to do away with cash and only utilize a central bank digital currency or adopt a centralized internet infrastructure, they could have full control over every penny that goes into your bank account, monitor every penny that leaves your bank account, track every single purchase you make, or website you visit. In an extreme but possible scenario, they could even have full control over what information a nation is allowed to access on the internet or control the entire monetary supply. Sounds like a world that I would certainly not want to live in. Starting to sound like George Orwell’s 1984 to anyone else?

“Big Brother is Watching You” George Orwell’s Terrifying Classic about Government Manipulation and Control in the famous novel 1984. Image via massacinzentadotblog

Many people may be reading this thinking, “oh well, I don’t do anything illegal nor have anything to hide,” but it isn’t just about legalities. This could give the government the power to restrict basic freedoms that we take for granted. You want to attend a protest or speak out about something you believe in? Well, the government could step in and block funds from your account for a month for something as little as not liking your political post on social media. What if they decided that every adult can only have two pints of beer a week? (Tragic!) They could automatically block payments to any alcohol-related purchases. If they controlled centralized access to the internet they would surely block an article like this from being written and block you from reading it, suppressing free speech similar to what we have already seen on a mass scale in North Korea and China. Have I painted a dire enough picture yet? I think you get the point.

As if that isn’t enough of a reason to push for a decentralized Web 3.0, as I have already briefly touched on, many of the exploits of tech giants are downright creepy and unethical, damaging society by furthering social divides between opposing viewpoints, and manipulating outcomes of major events such as political elections and Brexit. Big tech companies have overstepped their boundaries and these perversions affect all of us, with many articles now being released on how social media giants are exploiting and undermining democracy. There have been some very insightful and deeply disturbing documentaries come to light recently that show how people are essentially being used as livestock, being manipulated and exploited by big tech companies such as Facebook, Google and Amazon. Companies like Facebook, (who also own Instagram) have been discovered secretly sharing and selling our private information to third parties for various reasons such as creating psychographic profiles on users to influence political campaigns and being sold to marketing and advertising companies so they can leverage that information to target us for advertising.

Social Media Giants Leaked Private Information Misleading Popular Opinion and Influencing Outcomes for Brexit and Political Elections. Image via Cnet

These unethical acts by the likes of Facebook have seen the company land in hot water and in the courtroom on multiple occasions. Facebook has been accused of, and have stood trial for some of the worst crimes that exist in our society. I’m talking big ones like propagating hate speech that fueled genocide and war crimes in Myanmar and being accused of human rights abuse, driving multiple “Anti Facebook,” movements globally. If you have not yet seen the documentaries, “The Social Dilemma,” or, “The Creepy Line,” about how social media and tech giants are manipulating society, I highly urge you to watch them and understand the dastardly deeds and intentions of many of these companies that we interact with daily. Try and watch them without throwing your computer out the window out of fear, disgust, and anger, and then you will understand why decentralization is so important.

Google Has the Power to Manipulate Political and Economic Outcomes. Image via usnews.com

As we are finding out more and more about the shenanigans behind some of these tech giants and how we are being manipulated, people are understandably furious and are looking for an alternative. These realizations are resulting in just one of the driving factors towards this revolution and adoption of a decentralized Web 3.0 built on Blockchain technology.

Current Implementations of Web 3.0

As I mentioned earlier in the article, Web 3.0 does not necessarily mean Blockchain technology integration, but for the remainder of this article, we will be working under the assumption that the two will be further developed together and working hand in hand, and each mention of Web 3.0 should be assumed that it will have Blockchain woven into the framework of the internet. Blockchain technologies such as Bitcoin, or more so, Ethereum are already providing the early, basic framework needed for Web 3.0 and we have seen many use cases already implemented and built on this technological innovation. Remember how the Internet was the fastest adopted technological innovation of all time? Well, the trajectory of crypto and blockchain adoption is surpassing early internet adoption meaning it is already here in many forms and will likely continue its exponential growth into the daily lives of internet users everywhere.

Cryptocurrency Adoption is the Fastest in Human History, Finding its way into Finance, Healthcare, Social Media, Video Streaming Sites, Food & Agriculture, Pretty Much Every Industry! Image via Chaindebrief

Finance is the largest industry in which Blockchain technology has made a massively disruptive impact and for good reason. With countless scandals and dirty dealings that have existed in traditional finance since the inception of a monetary system itself, Blockchain technology and Web 3.0, thanks to networks such as Ethereum have provided a framework that is replacing the trust that has been lost in the traditional finance space, helping eliminate corruption, reducing costs and increasing efficiency by rebuilding financial applications that can potentially replace all the legacy services that currently exist across the entire financial space.

DeFi is Providing a Long-Overdue Evolution to the Outdated and Corrupt Legacy Financial System. Image via nimera.io

Decentralized finance applications such as Aave are already providing many of the services of traditional banks, allowing users to lend their crypto out to earn interest and borrow cash against their crypto holdings, in a far superior method to banks. Decentralized finance applications are already providing users with the ability to borrow against collateral, lend, invest, get a mortgage, and even purchase insurance nearly instantaneously avoiding all the red tape and restrictions imposed by banks and without needing to pay their extortionate fees and criminal interest rates. The concept of a peer-to-peer financial system is a truly amazing thing.

DeFi Users Enjoying Passive Returns Between 1.5-10% per month, Much Higher Than the Returns Offered by Banks. Image via Defipulse

As people have become tired of banks making billions off the backs of their customers, providing little in return unless you are happy with the 0.01% interest rate they pay you on your savings accounts and being charged 20% interest to use their credit cards, millions of users have turned to Decentralized Finance (DeFi) enjoying returns that are much higher than what is offered in traditional finance. I could talk about how superior DeFi is to traditional finance all day, but to avoid those weeds, you can learn more about DeFi here. At the time of writing there is over 100 billion dollars locked up in DeFi protocols where millions of users are enjoying higher returns, less red tape and bureaucracy and their best chance at reaching a level of financial health than the banks will ever be able to compete with. DeFi adoption is a trend that has seen exponential growth, a trend that is expected to continue as younger generations are trusting more of their wealth to Blockchain technology and DeFi applications than the legacy financial system.

The Number of DeFi Users is Increasing at an Exponential Rate Image via dune analytics

Web 3.0 is also already blurring the lines between reality and digital reality, which is having a huge impact in the video game, fashion and medical industries. I am sure you have no doubt heard all about the “metaverse” in recent weeks with Facebook and Microsoft getting involved in a big way, pouring billions of dollars into creating their own virtual worlds, and decentralized metaverses like Decentraland, the Sandbox and Bloktopia being featured all over YouTube. Web 3.0 and Blockchain technology is impacting the multi-billion dollar gaming industry and creating an entirely new economic landscape utilizing a play-to-earn model which could fundamentally disrupt our current economic system as I have covered ad nauseam here, here and here. With things like virtual reality, augmented reality and Metaverses already in play, these are the early days of Web 3.0

Blurring the lines between reality and a virtual landscape is being referred to as the “Spatial Web,” which will be a much further development of Web 3.0. This will feature enhanced geo-location capabilities, virtual and augmented reality technology and fully immersive metaverses so realistic it will be difficult to distinguish between virtually augmented objects and real-world objects. While the Spatial Web is far too complex to dive into here, it will essentially be a hyper-realistic mapping of our entire world, with every aspect of life (aside from actually living) being connected and fully interactive. Deloitte writes a fantastic in-depth article about the concept of the Spatial Web here.

Map of the Spatial Web. Image via Deloitte

Why All This Matters

The transition to Web 3.0 is an inevitable technological evolution, with the capabilities of building on top of, or incorporating Blockchain technology to become a, “people’s” revolution within this technological evolution. Many high profile economists and technologists are referring to Blockchain technology as being, “the Fourth Industrial Revolution,” with fantastic papers such as the appropriately titled Shaping the Fourth Industrial Revolution by Klaus Schwab, the Founder and Executive Chairman of the World Economic Forum with a foreword by Satya Nadella, CEO of Microsoft being written, published and studied at length within academia and business circles. There was also a great report from the European Parliament titled, How Blockchain Technology Could Change our Lives, a 28 page read if you want to go further down the rabbit hole as one article alone could never do the innovation behind Blockchain technology enough justice. If this technology is disruptive enough to have the attention of the World Economic Forum, and government officials around the globe, it is worth knowing something about.

There are many who support this revolution as it provides a glimmer of hope for a future of a peer-to-peer, trustless decentralized infrastructure that can support a monetary system, healthcare system, (basically any infrastructure system) and the free passing of information without bias or manipulation as these infrastructures and systems will not be controlled by any central authority pushing their agendas, effectively freeing us from the shackles of governments and institutions who value profit over human life.

Then there are others who feel this is a pipe dream, a utopian, possibly anarchic, libertarian vision which will likely never come to fruition as those same authoritarian regimes that people want saving from are also adopting and utilizing Blockchain technology and Web 3.0 to ensure that they will adapt to, and change with these innovations, not allowing themselves to be replaced or become redundant which is also a highly likely scenario. Either scenario is okay by me, as it may not be as purely utopian as many would like, but it is still a vast improvement over the current issues that exist in the Web 2.0 space, and repairing some of which is broken.

While some dream of a Blockchain utopia, other’s fear a Blockchain authoritarian regime, let’s strip back the biases, hopes and fears and look at the facts. Regardless of what future you believe Blockchain and Web 3.0 will lead to, Blockchain technology has some major benefits and near limitless potential, only being limited mainly by human innovation and imagination.

Some of the Benefits of Web 3.0 Image via hackernoon

The key defining trait for Web 3.0 will not be a utopian system, it will not be a decentralized system, it will not be a peer-to-peer monetary or any other type of system or infrastructure, it will not be full immersion into a virtual metaverse. While all those are potential features, traits, and products of Web 3.0, the key defining trait of Web 3.0 will simply be verifiability. Regardless of what future Web 3.0 paints, the one trait that will transcend all possible outcomes is that every piece of data for every single transaction that happens on Blockchain will be tamper-proof, time-stamped, and publicly recorded so anyone can verify and authenticate data transmissions. That key, simple feature is what is most impactful about this technology. When transactions are publicly verifiable there is no longer any need to “take someone’s word,” or trust that someone is telling the truth, everything is 100% transparent on the Blockchain.

We have no idea what is happening with our data or identities as we continue to spend more of our days and upload more of ourselves online, where is that information going and how is it being used? Web 3.0 will add a layer of much-needed transparency and honesty, and force everyone to be more ethical and moral than they are today. Combine verifiability with Smart-contract functionality built on top of that tech and we are now living in a society where everything is executed like clockwork, with calculator type precision, removing distrust, third party intervention, manipulation, deceit and human error across countless scenarios.

Blockchain Technology may Provide the Transparency Needed to Make Living in Mark Zuckerberg’s “Meta” a bit less Creepy Image via New York Times.

Biases still set to the side, Web 3.0 will fundamentally expand the scope of what is possible between human and machine interactions and expand on the already existing seamless peer to peer payment networks, richer information flows, and trusted data transfers without counterparties as is already enjoyed by Cryptocurrency users today. This technological revolution will support the emergence of endless and unimaginable new economic and business models such as empowering global co-operative groups, decentralized autonomous organizations and self-sovereign and self-governed marketplaces. This is meaningful because:

Societies will become more efficient by transferring value peer-to-peer, being able to cut third-party intermediaries, returning value directly to the buyers and suppliers in a market. One of my favourite projects already developing in this space is Authentium, which is utilizing Blockchain technology to cut third party, often exploitive intermediaries in the supply chain industry, allowing higher profits to be kept by the farmers and agriculture workers who dirty their hands every day to feed the planet.

Mutual ownership and governance of decentralised systems can allow for collaboration and incentivization through new economic models to solve complex and sophisticated problems.

Individuals will own their own data, no longer being sold to the highest bidder without their consent.

Decentralization solves the problem of platform or company dependency, effectively “future-proofing” entrepreneurial, business, and investment ventures.

Improved security measures, verification and validation as humans, enterprises and machines share information.

Closing Thoughts

While Web 3.0 may or may not bring about the “power to the people,” type revolution that many people hope it will, Blockchain technology will continue to play a massive role across all industries that have anything to do with the internet. This is already quite evident in the fact that governments and tech giants are investing billions of dollars into Blockchain infrastructure. While Web 3.0 is transitioning us into a future that will blend reality with virtual reality, incorporate aspects of machine learning and artificial intelligence to make our interactions with devices more human-like, the Blockchain layer adds a very interesting proposition to what will be possible in both our digital and physical lives.

The rise of decentralized autonomous organizations (DAOs) built on Blockchain is certainly an interesting proposition with massive companies like Atari looking to give up control of a branch of their business to the community and many successful businesses and teams such as Uniswap and Compound Finance giving full governance control of their business to their community. DAOs are providing perhaps the fairest and democratic business model humanity has ever enjoyed.

Simple Diagram Comparing a DAO to a Traditional Business Hierarchy Image via medium.com/smartz-blog

Blockchain’s integration to Web 3.0 is also already completely reshaping the economic model of the planet as we know it with billions of dollars pouring into decentralized finance platforms, taking money away from the traditional banking and investment industry and traditional investment vehicles like gold and real-estate. Many key strategists and investors in the space such as Raoul Pal and Michael Saylor are referring to this revolution as, “the largest transfer of wealth in human history” and an article from Yahoo stated that 47% of millennial millionaires have at least 25% of their wealth in crypto. These millennials are the innovators and visionaries of tomorrow so if they believe in Blockchain now, it is unlikely that it won’t be incorporated into their future business ventures, or that companies won’t be integrating this tech to entice younger generations, furthering Blockchain development alongside Web 3.0. Interestingly, the United States SEC Chairman Gary Gensler has also recently come out and admitted that Bitcoin directly competes with the U.S. Banking System.

Bitcoin has Been the Highest Performing Asset of the Decade, Siphoning Billions of Dollars From Traditional Markets Image via Yahoo

While it is not yet known if Web 3.0 will deliver us from the atrocities that we currently experience in the current broken form of Web 2.0, it is the best shot we have and there are already glimmering oases provided by Web 3.0. Networks like Bitcoin and Ethereum will continue to provide users with refuge from the onslaught we all face during our current day to day Web 2.0 interactions. Web 3.0 may not “smash,” and replace the current system, but it has a great chance of fixing many of the aspects that are broken when it comes to centralization, surveillance, monetizing human data, and humans being treated as second class citizens by our banks, big tech, and often our governments. As my bio states, “Blockchain technology may not be the end-all, be-all, but it is the best chance we have,” and the potential that Blockchain integration has to shape every aspect of our lives as we venture into Web 3.0 is unfathomable.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post What is Web 3.0 and Why it Has Insane Potential appeared first on Coin Bureau.

Utility NFTs: NFTs with Real Muscle

Julie-Anne Chong — Thu, 09 Dec 2021 21:18:43 +0000

2021 saw the rise of the non-fungible token (NFT) market, making NFTs one of the most talked-about topics for the proverbial office cooler-chitchat crowd around the world. The burgeoning amount of money associated with it, spearheaded by the Beeple sale at Christie’s, makes it one of the fastest-rising assets during a time when the COVID pandemic has caused central banks to haemorrhage money at about the same speed as a unicorn puking rainbows from late-night binge-drinking. That was earlier in the year. Fast-forward to 6 months later, and it’s clear that just being a pretty picture is not enough. Today’s NFTs have gotta have more substance in order to keep the interest going. This brings us to the next phase of the NFT evolution: NFTs with Utility.

In this article, we’ll take a look at how Utility NFTs came about, why we need them, what drives the demand for them, and some use cases or projects that promise to continue disrupting certain parts of society in a good way.

The $69million NFT art piece that shook the art world Image via Yahoo! Finance

Let’s Talk about NFTs First

In case you stumbled onto this article and can’t make heads or tails of what a NFT is, here’s a short primer: a NFT, the initialism for Non-Fungible Token, can be one of the following:

a form of content such as a file or a copy of a file.
a digital receipt or certificate that grants ownership rights to something.
a digital record involving a link to the metadata of the NFT.

Most of us are probably most familiar with the first kind, which is mostly the kind used for artworks. If you’d like to learn more, check out Guy’s video on this topic.

Why Own a NFT?

There lies, within most of us, a desire to own and even collect the things we like. We also want to share what we like with others, whether it’s simply basking in the joy of sharing or that it carries the underlying desire of showing off. While a million copies of the Mona Lisa exists around the world, the one hanging in the Louvre is still a major attraction because it is the original. If the museum ever had a fire situation, I’d bet my last crypto token that the Mona Lisa would be at the top of their to-save list.

Mona Lisa at the Louvre Image via Musement

When what we like gets validated by others, that thrill of having made the right decision before everyone else can be as intoxicating as being the first to cross the finish line with your parents watching. Yet I’d say this is an unintentional side effect. It wasn’t until much later, when the opportunity for reselling came up and others were willing to pay heaps for it, that the original desire to collect became “What’s the next best thing to buy for resale purposes?”.

NFTs with Utility vs Utility for NFTs

While the secondary market is still thriving and growing by the day, the visionaries in this space quickly realised its potential for something much more than just a unique thing commanding “I say so” prices. The market was also getting crowded as variations on the same theme mushroomed overnight. But it isn’t enough to do what others have done before. There needs to be a new way to give people a reason to get NFTs. Which brings us to a question – “What if the NFT has additional uses?”

At this point, I’d like to point out there’s a subtle difference between a NFT with utility vs having utility for NFTs:

Utility for NFTs

The answer to “Where else can a NFT be introduced to make things better?” is what drives up adoption rates for NFTs. There are ways for various industries to incorporate NFTs into their business, bringing about much-needed improvements. Some examples include real-estate, luxury goods, tickets to events, etc.

NFT with Utility

On the other hand, “What other benefits can I get from this NFT other than holding it?” looks at NFT usage in a slightly different light. The short response is: it’s a key that opens doors. Holders of this type of NFT is akin to having a membership card to an exclusive club. Holders gain access to a myriad of activities reserved for members. These include parties, airdrops, early access to new collections etc.

In a sense, there’s nothing new invented here. Many companies have a membership program that gives members certain privileges. Plastic is cheap (or expensive, depending on which side of the climate change convo you’re standing on). As an aside, I’ve heard that the Centurion card by Amex, which has one of the most exclusive programs in the world for their cardholders, has metal in it. In our current digital age, of course it makes logical sense to have a digital version of a membership card. How then, can NFTs put a new spin on a well-known operating model?

The legendary Centurion card by Amex Image via ThePointsGuy

Bored Ape Yacht Club

In terms of fame, the Bored Ape Yacht Club (BAYC) is just as well-known as the Cryptopunks. An individual ape cost an average of $200 and the entire collection went for $24.3 million, according to Sotheby’s. Unlike the punks, where the NFT is simply an artwork, holding a BAYC NFT is akin to having lifetime access to a members-only area which includes:

The Bathroom – A collaborative artistic project where members get to draw a single pixel on a canvas every 15 minutes.
Mutant Apes Yacht Club (MAYC) – The creators dropped a serum to the wallets of the NFT holders. After injecting their apes with the serum, a mutant version of the ape appeared.
Bored Ape Kennel Club (BAKC) – Each ape gets its own dog. This is also airdropped to the members.
Merch store – Exclusive merch only for members.
Apes vs Mutants Mobile Game competition – Released on Dec 5th 2021, the game is meant to be played between Ape and Mutant Ape NFT holders. It involves apes throwing a bunch of bananas, then pizzas, at each other. Good thing that food waste is a non-issue in the digital world.

The state of The Bathroom as of May 27, 2021. Image via blockchaingene1

Access to any of the above requires a log-in with the Metamask wallet. The website will check whether you have an ape. If not, it will ask you to head over to OpenSea to get one. Even though most of the mutant apes and dogs are already available on the secondary market, these are all put on sale by the original members.

The BAYC team also allow the members to do what they like with the apes, including commercialising them as they wish. The team had their members voting for ways to use the funds, including donating a total of $850,000 to various ape-related animal charities. They were one of the first to introduce additional functions to their NFTs. This has proven to be a popular strategy for later projects looking to build a community and give NFT holders more bang for their buck.

Ghetto Sharkhood

Another new project that is about to kick off with some interesting real-world initiatives in collaboration with the NFT is Ghetto Sharkhood. Similar to BAYC, this NFT project features a collection of 10,000 sharks in various incarnations. At the time of writing, the sharks have not been minted yet. The minting date is set for Dec 12th, 2021.

The Ghetto Sharkhood team has two roadmaps, one for the project and another that’s closely-tied to reality. The project roadmap has the usual features typical of a NFT project such as:

Ghetto Shark Fund aka community fund to decide on fund allocation.
Ghetto Sharkade for playing NFT games. NFT holders can also host their own games and invite others to play.
Ghetto Shark Coin for staking and spending at the merch store.
Ghetto Shark Impact Fund for supporting social and environmental programs.
Ghetto Shark Partnerships with other companies and blockchains.

What makes this project worth a second look and stands out from the rest of the collectible-type of NFTs is their Ghetto Sharkhood Impact Roadmap. This is different from the one for the project as it’s closely-tied to reality. The sector that they are focused on is agriculture.

A portion of the proceeds from play-to-earn games in the Ghetto Sharkcade are used to fund programs that support agricultural communities, especially in rural areas. The idea is to help farmers produce food in a sustainable manner, thus making a positive impact on their lives.

Get ready to swim with the sharks and make an impact in the real-world. Image via Ghetto Sharkhood

Education is one of the initiatives for the team. It covers education for children and technical knowledge for farmers to enhance their operations. They also have plans to create a network of different farming communities that can support one another. This network also extends to linking buyers with farmers in a more direct manner. After that, the next phase is to provide healthcare services to women and children in developing areas. Last but not least is being involved in beach cleanups and animal conservation efforts, amongst others.

I will be keeping a close eye on this project to see if it will be able to live up to any of its plans for social improvement. If it works, this could be a new model for future projects, which will ultimately benefit those in need.

VeeFriends

One name I come across time and time again when looking into NFTs is Gary Vaynerchuk aka GaryVee and his project VeeFriends. Who is this person and why is he often mentioned when talking about NFTs? In short, he’s a wine critic turned entrepreneur active in digital marketing and social media. He started a NFT project called VeeFriends and launched the first collection in May 2021. The purpose of the project is to provide a blueprint for others on how to successfully start a NFT project.

He saw, early on, the importance of having utility added to the NFT tokens instead of just artwork. Unlike most NFTs, the artwork for VeeFriends is really nothing to boast about. However, it’s what the token unlocks for the holder that gives them their real value.

There are three types of NFTs:

Admission NFTs: 9400 pieces
Gift Goat NFTs: 555 pieces
Access NFTs: 300 pieces

All the NFTs gives holders 3 years’ access to VeeCon, Gary’s own conference on business, marketing, ideas, creativity, entrepreneurship, innovation and fun. It’s basically a mega-networking opportunity as the current floor price for the cheapest NFT starts from slightly under 9 ETH.

As the name states, the Gift Goat allows holders to get gifts from Gary in addition to the admission to VeeCon. He will be mailing out 6 mystery gifts per year to each NFT holder.

Access NFTs are the top-tier ones because this gives the holder access to Gary’s time. Whether it’s doing an activity together or 1:1 face time virtually or in-person, this is like a meet-the-idol moment for his fans. I do wonder if it’s possible to meet him more than once with the token. Also, how would something like this work on the secondary market? I can’t imagine him spending his time meeting people all day long. He’d never get any work done!

VeeFriends NFTs unlocks lots of value for holders. Image via Welcome To VeeFriends on YouTube

GaryVee has succeeded in showing marketers the potential of NFTs for branding and marketing. He’s also succeeded in pushing NFTs to the mainstream crowd through his own reach. Many of the NFT holders probably aren’t crypto-savvy at all. They’re just his regular fans who want to get an opportunity to have more engagement time with him.

This model has certainly perked up the eyes and ears of the business community and a few of them have taken the plunge into the the world of NFTs. Congratulations to “Mr. Vee” for increasing adoption of blockchain technology and what it has to offer.

“Meta Optimist” by Clinique

Clinique saw beyond the artwork potential of NFT when they released one of three editions of “Meta Optimist”, a NFT piece that also gives the holder free products for 10 years, and a 50-year-old product called Almost Lipstick Black Honey that’s usually out of stock. “Modernise loyalty” is how Carolyn Dawkins, SVP of Clinique Global Online, explained the consumer engagement and marketing strategy. R/GA Head of Creative Nick Pringle also offers another telling description of NFTs’ potential: “.. it’s a piece of code that unlocks a series of functions.” Those two quotes pretty much sums up what NFTs are capable of in the future.

Other fashion brands saw another way for NFTs to make an impact with their sales by offering virtual goods in exchange for physical ones. This is what lifestyle brand Axel Arigato offers together with Aglet, an app that transforms physical steps into in-game currency. The currency can then be used to purchase virtual sneakers. By completing the collection in the app, they get a special pair of in-game virtual shoes, which lets them be in the draw for a real pair of shoes by Axel. Even if they don’t manage to get the real shoes, showing the virtual shoes in the stores nets them a free pair of socks. Talk about cross-promotion between the real world and the metaverse!

Get virtual sneakers through walking and a chance to win a real pair. Image via Vogue Business

Conclusion

In a society where exchange values are prized over experiential value, NFTs seek to marry both by combining artwork with utility. From a simple digital artwork, to being the key opening all kinds of doors, NFT’s versatility promises a not-so-far future where it will quickly become part and parcel of our everyday lives. Through the four projects highlighted here, we see that it is a tool like any other that can be tailored for all kinds of purposes. From social impact to selling more stuff, this piece of tech has the power to change the way we engage with one another, whether as a consumer, collector or creator.

What’s even more exciting is that we’ve only just scratched the surface of NFT’s utilitarian function. As with everything in the crypto space, developments are happening at a dizzying pace. While NFTs have been around since 2017, the speed of development in the past year until now can truly be described as exponential. It is feasible to believe that there will be more ideas and initiatives in the future that can further induce more ways for NFTs to become part of our lives.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Utility NFTs: NFTs with Real Muscle appeared first on Coin Bureau.

GameFi NFTs Far More Than “just” Art : What to Buy?

Nikolas Ketonen — Fri, 26 Nov 2021 20:37:39 +0000

I would assume that if you’re under 25 years old gaming shouldn’t be new to you. I know I’ve spent countless of hours playing games and, in some games, I even consider myself being quite the skilled player. My parents might have been angry at me for sitting inside playing video games even on sunny days but I’m sure most of you understand that that’s just how young people spend their time today. However, my parents do have a point when saying that it’s worthless playing video games and putting the time spent to something else, like reading books, which would benefit me a lot more. That’s been a fact, until now.

Because you are here, on Coin Bureau’s website, I assume you’ve heard of NFTs, GameFi, and play-to-earn. You might also be aware that these things are set to revolutionize the gaming industry by making it possible for gamers to earn money and further interact with the game by truly owning what they have achieved. In the last month this whole topic has just exploded because of a combination of NFT hype and metaverse hype, and while the hype might currently seem like a bubble, in the long run it’s just the beginning. In this article I’ll go over some developments in the gaming industry as well as the NFT industry. I’ll also be giving some of my own predictions on where we might be headed.

What If?

On July 21, 2017 the popular video game Fortnite was released (hated by some people, don’t judge me for using it as an example). Why this game is interesting is because whether you like the game or not you have to admit that it changed how video game publishers make money, and it also changed consumer behavior. They were the first to introduce a battle pass which you purchase for each new season (3.4 months) that gets you different cosmetics and can technically be purchased for free but almost everyone has used at least some money to get it. The game has made over $10 billion in revenue and that’s completely from in game purchases, since the game is free. This means that people have bought skins, pickaxes, emotes, gun-wraps, things without any value since you can’t trade them or really do anything with them, they don’t even provide you with any in game advantages. However, imagine this on the blockchain with NFTs.

This is Fortnite, maybe you’ve come across some ads, or even played it? Image via Epic Games

A simple explanation of Fortnite is now needed before addressing my example. It’s a battle royale game where 100 people get dropped onto an island where they loot for guns and healables, and the last player standing gets the victory. After that all that’s left is to press ready and enter another game. In Fortnite players can change their skins, pickaxes, gliders, emotes and even gun wraps. These can be purchased from the Fortnite store or by completing quests to advance in the Battle pass. All purchases are made using V-bucks which is the in-game currency of Fortnite.

Now, you might think it’s stupid to buy these additional things since they have no value or no in game use, but believe me, people do buy them. People simply buy them to show off, people even bought a $700 dollar phone just to get a skin when Samsung partnered with Fortnite. However, the most feared skins are those earned through the battle pass since those can’t be purchased, they are scarce. People have even paid over $3000 to get access to someone else’s account just to play with these skins. They do this even though it’s against the Fortnite Terms of Service, they could lose their accounts, and they don’t even get ownership of the skins.

That feeling when you realize people bought a $700 Fortnite skin when they could’ve gotten AT LEAST 1 Cryptopunk for the same amount at that time.

However, imagine these skins on the blockchain as NFTs. Those who played early, and a lot, could now sell these rare skins and earn the in-game currency V-bucks as a reward for their work. Then those V-bucks could be swapped to dollars or any other currency on an exchange. Or, maybe Epic Games finds some way you could stake V-bucks to earn additional rewards, or maybe V-bucks is the native currency on not only Fortnite but all of Epic Games’ games and you could use those funds earned from Fortnite on another game. The possibilities are endless.

If you still doubt it that anyone would buy these skins let me, just give you some numbers. Fortnite’s live active gamers is currently almost 3 million. They have hit over 80 million players a month. The Fortnite world cup sold out with 19,000 tickets sold and another 2.3 million players watching the event online, that’s as much as the NHL (biggest ice hockey league in the world) had views in their finals game year 2020. Owning some rare piece from a game this popular is something people would pay for. I bet it would even be something for youtubers to showcase in their home as regular paintings are today shown. And the best part of all of this is that everyone benefits, I can make money playing video games for fun, people who don’t have time can still get items they want without having to spend 10 hours a day grinding for it, and the game publishers can earn both from issuing new things as well as second market sales by setting their fee on whatever percentage they want.

Where’s the Value in NFTs?

With the previous example we established that gaming is massive, transforming to NFTs and blockchain would be great, and there would be demand. However, those skin NFTs still lack any fundamental value. Naturally, they would be valuable when the game is popular but eventually when the game dies out those NFTs would become worthless – or wait a minute, unless?

Epic Games is one of the largest gaming companies with an ecosystem that consists of numerous different games. As I mentioned they could make V-bucks their native currency which would ensure that the value of those would remain even if one game dies out. Why not do the same with NFTs. Making them cross game compatible would further drive-up demand. Imagine putting on that rare Fortnite skin in not only Fortnite but other games too? Awesome! Also, if Epic Games additionally issued NFTs with advantages to the game like special guns then those would certainly be in high demand.

Imagine walking around with this skin in some other game than Fortnite. Initially you would probably get some confused looks, but hey sign me up! Image via Pro Games Guides

Imagine this same with sport games. Currently EA sports release NHL, NFL and FIFA games every year. The most popular game mode here is Ultimate Team where you build your own team by opening player packs and purchasing players from others. People spend tons of money to get a good team just for a year and then buy the new game and do the same. Now imagine that these players would be rare NFTs and you could keep them from year to year. It would create huge demand for those rare cards and owning a Christiano Ronald would make you a legend. Of course, there would be tons of things that would be needed to sort out so that EA sports don’t lose any revenue but the possibility is there, and I bet you that a migration like this would be amazing.

Giving NFTs a use case and audience and making them perpetual is going to be a huge driver for both the NFT sector and the gaming one. I think the combination of these too is extremely underrated. People like the virtual world. Some people even spend more time there than in the real world, even before really owning anything or making any money. Now imagine that you could make money and your achievements would be truly yours with real-world monetization possibilities.

How Are Things Now?

Where do I even start? There’s currently so much going on, especially after Facebook announced its rebranding to Meta. Type in Metaverse to YouTube and it’ll take you weeks to watch all the content that has come out ever since Facebooks announcement.

However, Facebook, or Meta, isn’t the first one out there and there are many crypto projects already doing big things in the metaverse. I’m sure many of you have heard about The Sandbox, Decentraland, and Axie Infinity. All these are blockchain projects that make use of NFTs. In The Sandbox you can own land as well as characters and other physical stuff as NFTs, same with Decentraland. In Axie Infinity your little “pet” axie is an NFT which you own and can use to earn you tokens or alternatively sell it. And Axie Infinity recently released their own virtual world, with a single plot of land selling for over $2 million. All of these games provide value to the user in many ways.

I bet you’ve seen more than enough of these cute little Axies over the last couple of months. Image via Axie Infinity

Think of The Sandbox, it’s co-created by a big blockchain gaming study Animoca Brands. As you might remember I played around with the idea that Epic Games could allow you to use skins (NFTs) you own in different games, well, Animoca Brands is allowing that. You can take some of your characters and stuff from other games and bring them to the Sandbox to show off to your friends. Maybe you want to wear some rare character you own when visiting a Snoop Dog concert. Yes, Snoop Dog owns land in The Sandbox and will be organizing different events and concerts there.

Speaking about wearing stuff, did you know that Nike has filed for multiple trademarks to be used in the digital world, AKA metaverse. Soon you’ll be able to put on the newest Nike Air shoes and flex on your friends in the metaverse, and if you didn’t already get it those shoes will be NFTs. I know, ridiculous, why would anyone buy digital shoes? Well tell me this. Why do people buy real shoes that cost $200 when you can buy similar looking shoes from China for $5? Now you might tell me it’s not the same thing but if you’re going to spend 10 hours a day in the metaverse playing games, working, seeing friends then why wouldn’t you want to put effort into your looks? That’s more time than you’re going to spend outside with your real Nike’s. And hey, the best thing about digital shoes is that they won’t start smelling, get dirty, or get broken, you can always sell them in perfect condition!

Did you know that Hermes sold this digital bag as an NFT for over $23,000. Image via Highsnobiety

People are already spending a lot of money on stuff like this, let’s just revisit my Fortnite example and you’ll see. The most recent partnership Fortnite made was with Moncler, mostly known for its high-end skiwear. Fortnite released a character’s that’s wearing Moncler clothes, and I’ll tell you that people do spend money on that, it’s a cool looking skin. And that’s not the only partnership, they have previously released skins in partnership Balenciaga and there was a lot of hype around that. All this hype when you don’t even own the stuff? Even I could be willing to pay if I really owned that Moncler jacket or Balenciaga shirt and could use it in the next game, but that’s not the case here (yet).

Everything in the metaverse will be an NFT. Those NFTs will be just like things in the real world except that they are digital. So, if you think a pair of rare shoes are valuable in the real world then I bet you they’ll be valuable in the metaverse too. The fact that you’ll truly own everything in the digital world is going to be huge. The money you spend digitally can be spent wisely so that you can always cash out and spend the money on something else. Naturally, not every pair of shoes, or every character and skin can be valuable. I can imagine that strolling around the metaverse as a Cryptopunk or Bored Ape can however be quite valuable.

How Can I Participate Now?

As I already mentioned we have many projects that are active in the space. You could buy those projects’ native tokens, although prices are extremely high. Alternatively, you could start looking for new projects in which you can buy land or other property in hopes of that project becoming valuable. However, if you do this you have to your own research, but a great way to start is by reading this amazing Coin Bureau article on projects with true potential, just a quick spoiler, there’s a game where you can buy your own planet!

Another way to gain exposure could be to stack up that avatar collection of yours. As I said I believe strolling around the metaverse with a punk or ape can be quite the sought-after thing to do so securing one of these rare pieces won’t necessarily be a bad thing to do. However, be careful and do your own research. It won’t feel so good to walk around with the ape if you pay thousands of dollars more for it than it’s actually worth.

There’s many on sale, it’s simply to get one. However, the price might need some negotiation… Image via Open Sea

What I think might be the best and safest way to participate is getting into the projects that power NFTs. I think that we’ve already established the fact that NFTs will be a part of our future world, however, we haven’t talked about how they’re made. Most of the projects out there are currently being minted on the Ethereum blockchain but there’s no denying that we’re seeing some hefty competition from Solana and other blockchains. So, buying into these layer 1 blockchains could be a good bet since NFTs and even whole parts of the metaverse will be created on top of these. Why am I so sure?

Well, even when watching Facebook present their idea of the metaverse they mentioned NFTs and that you need to be able to control your things. And, to really own your digital assets they need to be created on a decentralized network where everyone can participate. I can’t see this working if the NFTs are created by Meta (Facebook) and stored in their wallet since they are a centralized entity and relying on them means that they can shut you down whenever they like, that’s not true ownership if you ask me. Those NFTs need to be minted on a decentralized blockchain and stored in a wallet to which you control both the public and private keys. It can’t be that one centralized entity can seize your existence in the metaverse. Therefore, betting on a few well picked layer 1 blockchains is a good bet according to me, not financial advice of course.

Conclusion

Hopefully you now have a better understanding on one direction that the NFT sector might go. However, it’s important to remember that we’re still in the early stages and as you noticed from this text too a lot of what you read was me speculating on where we might be going. However, a lot of evidence from the actions of current projects seem to be in precisely the direction I just pointed out. I actually just heard a couple of hours before writing this conclusion that EA sports is a having a dispute with FIFA where one reason is that EA wants to start leveraging NFTs.

Furthermore, what I want to point out is that the GameFi concept is also much larger than what I had time and space to bring up in this article. I strongly concentrated on video games when actually GameFi can include everything that makes a project more game-like and away from traditional finance. One example is Sorare which kind of has the idea that I presented as a possibility for EA sports while Sorare is not a video game at all. Their more like a fantasy football (Soccer) game. So, the point is that if you think these ideas were great, or maybe you even came up with a few use cases yourself, then wait till you read about all the other GameFi and even broader sectors the NFTs can help and evolve. What everyone needs to understand is that buying a digital Ape is much more than just buying a picture to look at though your phone.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post GameFi NFTs Far More Than “just” Art : What to Buy? appeared first on Coin Bureau.

Should You Use Bitcoin ETFs for Bitcoin Exposure?

Nikolas Ketonen — Wed, 17 Nov 2021 17:25:07 +0000

I think it’s safe to assume that the news about a futures backed Bitcoin ETF being tradable on the New York Stock Exchange hasn’t gone unnoticed for anyone who hasn’t been living under a rock. However, what you might not know is the meaning of this development. Why do we need it? What even is a futures backed ETF? Why not just buy Bitcoin via exchanges like many others do? While all these questions remain you might have noticed that the ETF wasn’t a small deal and there was some high demand for it. This at least is what the trading volume data tells us.

Keep reading to learn what this ETF means to us regular folk, and if it’s at all a good way to get some Bitcoin exposure. I’ll also talk about some other ways to get Bitcoin exposure and list the pros and cons so that you can go out there and make the best choice based on the information available.

What are Futures Backed Bitcoin ETFs?

When it comes to a crypto ETF we have two options, a spot ETF or a futures ETF. The difference between these two is quite substantial and you might even have read headlines on how bad futures backed ETFs are. So, what are they?

Futures backed ETFs are basically not tied to the underlying asset by any means. It’s based on futures contracts (in this case Bitcoin futures) and with these the purpose is to try and mirror the price of the underlying asset. But what are these futures contracts? They are derivative trading tools that allow two parties to buy/sell Bitcoin at a predetermined price and date. Here’s an example, let’s say I believe that Bitcoin will trade at $100k when December ends. I’m sure about this so I will enter into a contract saying that I’ll buy 1 Bitcoin at today’s prices (roughly $65,000) at anytime through the end of December. Then when December ends, I will have to buy that Bitcoin I promised regardless of the price. Now, if Bitcoin in fact trades at $100k I’ll make an instant profit of $35k. However, Bitcoin’s price could also be lower than $65k and I would still have to buy. The reason the seller will enter this contract is because they protect themselves from price volatility, regardless of what happens they’ll get their $65k in two months, plus the premium for selling the contract. The reason why I will enter this contract is to speculate on something without maybe having the cash to currently buy $65k worth of BTC, I only have to pay for the contract, which might only cost 1% or less of that $65k. However, often these contracts are traded even before the price expiries, since if Bitcoin seems to go close to that $100k then naturally the contract that you can buy Bitcoin for $65k will be quite valuable.

Placing bets and predicting on future prices, that’s what futures are all about.

Hopefully, you got a quick sense of what futures are, but this was just a quick introduction and just by searching for futures contracts on the internet you’ll find loads of more information. The important part was just to highlight that these contracts are only bets on paper of a certain assets price action. There’s no actual Bitcoin involved in Bitcoin futures.

So, using these instruments the Bitcoin ETFs we have today try to mirror the price of Bitcoin by trading these instruments on the CME (Chicago Mercantile Exchange). This means that by buying these ETFs you’ll only own the paper on which these contracts are written. Buying the ETF will also not have an impact on the price of Bitcoin since no one is going to buy the physical asset.

Why Do We Need this?

The reason we need a Bitcoin ETF and preferably a spot ETF is because it allows many institutions, hedge funds and companies to gain access to crypto. I listened to an interview with Kevin O’Leary where he talked about institutional interest in cryptocurrency and if he’s right there’s a wave of capital coming. The question is why hasn’t it arrived already?

This is because there are legal issues. What O’Leary mentioned about his first crypto purchases is that it was a difficult process. All he’s advisors, both legal and business, told him that it isn’t possible. There are too many regulatory issues regarding different filings that have to be done to satisfy tax authorities, and the financial crimes department, and more. On top of that, for some institutions managing other people’s money storing crypto is a huge issue. They don’t know how or where they can reliably store their cryptos. Therefore, buying crypto directly isn’t an option for many. Also, many US companies and institutions aren’t allowed to go abroad buying products that aren’t approved by a US regulator, otherwise many would probably pile into Canadian Bitcoin ETFs. However, we’ll talk more about other products and ways to gain Bitcoin exposure in the next section.

Everyone should be allowed Bitcoin, no taxes no restrictions, am I right?

These were just a few of the reasons why there are problems for US institutions to gain access to Bitcoin, and why O’Leary, along with others, believe a lot of capital will flood into the market once we see a good product for gaining exposure to Bitcoin. Of course, there are other issues too that restrain capital from flooding into Bitcoin like ESG (Environmental, Social, and Governance), but that’s out of the scope of this article. However, what I just want to mention is that when O’Leary talked about how much money there is waiting to come into crypto he used the term trillions, yes you read it correctly not millions, not billion but trillion with a T as in To the moon.

Other Ways to Gain Exposure

Although this article was supposed to only compare Bitcoin futures ETF to physical Bitcoin, I just want to point out that there are other ways to gain exposure. For many, those other options could even be better.

First, I want to mention something that I bet many of you have heard about, the Grayscale Bitcoin trust. Grayscale is the largest digital asset manager in the world with over $60 billion in AUM (assets under Management) and the Bitcoin trust takes up a huge chunk of that with just over $40 billion in AUM. The GBTC works almost like a Bitcoin spot ETF but there are a few structural differences. ETFs are more flexible than GBTC, ETFs can create and redeem shares based on demand which makes them typically trade extremely close to their net asset value (NAV). This is compared to GBTC where there’s a fixed number of shares and low flexibility. This has caused GBTC to trade at either a high premium or discount compared to its NAV. Therefore, although your purchase in HBTC is backed by physical Bitcoin its price can differentiate due to factors unrelated to Bitcoin.

Here’s a look at GBTC. As you can see there’s quite a hefty discount. Images via Grayscale

Another way to gain Bitcoin exposure is buying equities with Bitcoin exposure. Typically, people turn to either mining companies or MicroStrategy. However, these too can fluctuate due to factors not related to Bitcoin. For example, mining companies do have to run their operations with purchases of hardware and electricity. If they were to purchase bad equipment or an accident happens in their facility it will drop their share price significantly. Therefore, these aren’t perfect when seeking Bitcoin exposure. However, it is possible to mitigate the risk of one company’s failure by buying into an ETF that holds a variety of these companies. However, be careful when buying blockchain ETFs since many hold companies like IBM, Nvidia and some even Nokia, and just FYI these do not really mirror the price of Bitcoin, not even slightly.

If you’re looking to buy some crypto-related equities I suggest you take a look at this piece. Image via Coin Bureau

The third way to gain exposure is to buy a spot ETF. As I mentioned earlier there are Canadian ETFs as one example. If you have the ability, you can buy a Bitcoin spot ETF from the Canadian stock markets. These are highly popular and even the CEO of Ark Invest, Cathie Wood, planned on switching their Bitcoin allocation from GBTC to one of these Canadian spot ETFs.

What’s Best?

For an individual retail investor like you and me I would almost always recommend buying the real deal. It’s the only way you can truly participate in the network Bitcoin was meant to be. When owning your own Bitcoin and storing it without centralized entities there is no one that can take that away from you, which is exactly what Bitcoin is meant for. Only you have access to the coins, and you can do whatever you want with them. However, there are risks with this too, like losing your private key, which is why I suggest you watch Guy’s video on crypto custody to avoid these silly mistakes.

I said I would ALMOST always recommend the real deal, but not always. That’s because people have different needs, and from the top of my head I can come up with a few examples on when gaining Bitcoin exposure some other way could be the way to go.

First, some countries have restrictions on trading cryptocurrency. Also, if you’re extremely new and still unsure on what your country’s stance towards cryptocurrency is, then it might be worth gaining Bitcoin exposure some other way. However, my preference would not be to buy a futures ETF but rather either a spot ETF from Canada or GBTC. This is because I feel like without some physical Bitcoin being bought it won’t be “real”. And additionally, the fees are often lower for physically backed since trading futures contracts to mirror the price adds up a lot of costs.

Second, which is kind of related to restrictions, is taxes. If it’s too much trouble for you to manually report taxes and keep track of everything then you might want to consider a simpler solution. For example, if I we’re to buy the BITO ETF then I know that since I’m buying it from a stock market through my traditional native stockbroker, they will automatically provide tax documentation. However, if I were to buy a physical Bitcoin, I’d have to keep track of the exact buy price, sell price, and trading fees. Then, I would also have to manually report and pay the taxes, and finally, I would have to be prepared to dig up the required paperwork if someone were to ask me to prove everything. This is naturally something many are willing to do, you just have to be careful and do it correctly.

If you don’t love paperwork then you can take the easy way out. I admit, taxes can be a pain in the …

This brings us also to the third and final reason, clumsiness. If you’re clumsy and have a tendency to not be the most organized, then dealing with cryptocurrencies in a country with relatively strict regulations can be tough. You don’t want to be sitting on thousands of dollars in gains without having a clue how to pay taxes or do the correct filings. Additionally, and even more importantly, you need to store Bitcoin correctly. It’s not that great to store your Bitcoins in a cold wallet if you have a tendency to forget and lose passwords. Remember, if you lose your private key then that’s too bad, you won’t get your money back. So, if you have a tendency to lose stuff or not be organized then consider getting exposure some other way.

Lastly to remind you again, if you do decide to go with something other than Bitcoin itself then at least find something which buys that for you. GBTC might be a good bet and if you read the next section, I’ll tell you why. Additionally, mining companies can be quite good at mirroring Bitcoin’s price and can even outperform it. That’s because scaling up their business will impact their price just as much as a rise in Bitcoin’s price.

GBTC Possibilities

The reason why I said that GBTC could be a good pick is because they have plans to convert their trust to a spot backed Bitcoin ETF. Why this is bullish for all of us is the previously mentioned flow of money waiting to get in. But what makes it bullish for you if you buy GBTC is the possibility of instant profit. You might recall that GBTC currently trades at a discount to the underlying Bitcoin and it’s currently something above closer to 15 %. However, because the settlement mechanism is much more efficient for an ETF there is speculation that the discount would quickly vanish if the trust was converted to a spot ETF. This means that you as an GBTC investor would both benefit from the price action of Bitcoin as well as receive the free 15% profit if the speculators are correct.

Conclusion

I know I gave quite a negative look on futures backed Bitcoin ETFs, it’s just that the product really isn’t great. However, what is great is seeing that product being traded. That’s because getting a Bitcoin ETF approved by the SEC is a huge milestone. Speculation on a Bitcoin ETF has been going on since 2013 and now we finally got it. Yes, it wasn’t what we hoped for but it’s at least something. It shows that Bitcoin adoption is growing. Braking trading records with a product that isn’t even good shows everyone how much demand there is for Bitcoin. Now we just have to wait for the real ETF to be released. Hopefully, we’ll see that in early 2022.

Lastly, I quickly want to touch briefly on an article I read on Coin Telegraph about a carbon neutral spot ETF being launched in Canada. As a I mentioned there are doubts about Bitcoin ESG values with emphasis on the letter E due to mining. This just got me thinking that maybe a carbon neutral ETF could be something that not only the SEC might like, but also many institutions that are currently worrying about mining and its impact on our climate. Anyway, a spot ETF is coming sooner or later, whether it be by Grayscale or someone else, and when it comes it will be huge.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Should You Use Bitcoin ETFs for Bitcoin Exposure? appeared first on Coin Bureau.

The FUTURE of Blockchain Gaming: Early Days, Potential GAINS?

Tayler McCracken — Tue, 16 Nov 2021 19:32:37 +0000

The blockchain gaming industry is something that never ceases to amaze me. The innovations and advancements that happen in the space are astonishing and the creativity and vision behind some of the teams, not just in terms of tech, but storylines, use cases and functionality is a marvel and I often find myself in awe at the teams behind some of these constructs. In one of my previous articles I cover 8 blockchain gaming projects with serious potential and briefly discuss how the blockchain gaming industry is nowhere near its full potential with many people underestimating or not even being able to fathom how far this industry is going to go. The reason I am more bullish on blockchain gaming than any other industry is quite simple – the sheer volume of users that can be attracted with endless use cases as blockchain gaming interconnects multiple different technologies, industries, companies and end-users leaving limitless potential and eventual global adoption similar to the adoption we have seen with the internet and mobile phones.

Allow me to expand on this point and discuss the power behind the blockchain gaming phenomenon. According to recent statistics from Finances Online, there is said to be 2.69 billion people who frequently enjoy video games, with the gaming industry being worth an estimated $545 billion dollars, a trend that has been increasing over the past 40 years.

The Growth of the Video Gaming Industry since 2012 Image via Toptal.com

That means that one-third of the entire planet are already playing video games with very few incentives to play other than just entertainment, no NFTs, no DeFi, mainly just the fact that games are fun is enough to bring in a third of the planet. Gaming is now also the largest sport in the world, while many people do not consider video gaming a “sport,” Esports is watched by more fans than any other sporting event in the world combined with the most recent Esport Dota2 tournament being tuned in by more viewers than any other major league sporting event in history. All this is just talking about plain old vanilla style gaming without all the exciting the blockchain components.

Spectators fill an Arena to Watch the Dota 2 Tournament Which was Live Streamed by Over 456 Million Viewers Worldwide Image via Digitalspoiler.com

One of the largest attractions to blockchain gaming are the financial incentives, so let’s talk about DeFi. Nearly everyone on the planet utilizes some form of monetary system whether it be traditional banks or DeFi. Decentralized Finance is growing and being adopted at an astonishing rate with total users nearing 4 million and funds locked up in DeFi continually hitting all-time highs with the total DeFi value locked in at $108 billion dollars at the time of writing. Decentralized Finance is making an impact, changing and challenging the very financial system that our world runs on and is revolutionizing the way in which people are able to earn an income and invest money.

Increasing Number of DeFi Users Image via dune analytics

We also can’t talk about blockchain gaming without bringing up NFTs as they have become such an integrated part of the blockchain gaming industry. The use cases, value, and interest in NFTs have increased exponentially, rising faster in value and being adopted by the mainstream faster than any other asset class in history as multiple musicians, pro athletes, and celebrities such as Tom Brady, Jay-Z, Tony Hawk, Eminem, Paris Hilton and Snoop Dogg getting involved and massive companies like McDonald’s, Disney, Nike and Warner Brothers also integrating this technology into their business models.

NFT Categories Showing That Gaming and Metaverses are Two of the Largest Uses for NFTs Image via app.hedgeye

NFTs are rising in their adoption and use cases not just from celebrities and companies looking to capitalize on their popularity but even the average person is becoming increasingly interested in NFTs as we can see from the growth in Google search trends. With the coveted Christies auction house now selling NFTs, and sites such as Opensea and Rarible being easily accessible to everyone, it is easy for people to “ape in” buying, collecting or selling sort all sorts of NFTs. If you are looking to get into the NFT scene, be sure to check out our article on the top NFT platforms.

“How to Buy NFT,” Google Search Trend Skyrocketed Throughout 2021 Image via blockchaincentre

NFTs are an interesting asset class as they bridge the gap between the real world and digital world, and even connect digital worlds as some in-game items will be able to be transplanted between games and virtual worlds. While their value in the real world as collectable forms of media has seen explosive growth, they are also seeing their popularity grow alongside the rising growth of metaverses and digital worlds as NFTs are perfectly suited to be utilized in metaverse ecosystems.

Metaverses have been all the hype lately with Microsoft, Sony, and Facebook all getting into metaverses in a big way, with both Microsoft and Facebook launching and announcing plans for their transition into a digital world. With companies pouring billions of dollars into their research and development of these metaverses, not to mention the massively popular decentralized metaverses of Decentraland and the Sandbox already being available to everyone, there is no surprise that metaverse adoption is on the rise becoming very popular among companies, gamers and metaverse enthusiasts.

Metaverse Growth over the past 5 years source: Bloomberg, Image via thebitttimes

So, I’ve touched briefly on the traditional gaming industry, NFTs, Metaverses, and DeFi all in an article about the future of blockchain gaming. Bear with me here as I am bringing these all up for a reason and painting a picture for the future potential of blockchain games. Each one of those industries is unique in their own right with their own purposes, use cases, solving different real-world problems and on separate trajectories, yet they all work together harmoniously in the blockchain gaming ecosystem.

DeFi, the concept of a metaverse, the gaming industry and NFTs are all massively growing ecosystems, rising at exponential rates and reaching mainstream adoption faster than the internet did in the early ’90s. Let that sink in, each of these industries alone is reaching astronomical milestones, rising in value and adoption quicker than the internet. The potential value and growth of blockchain gaming is unfathomable as it combines each of these separate industries and brings them together. Many blockchain games contain aspects of DeFi with play-to-earn models and staking features that are transforming societies and economies. Metaverses where these blockchain games can be played, where crypto can be earned and NFTs can be displayed, used, bought or earned and sold for millions of dollars is creating a digital paradise for gamers, collectors, artists, musicians, investors and entrepreneurs. Before we get into what the future might look like, let’s look into the brief history of blockchain games.

Growth Curve of Crypto Users vs Internet Users Image via chaindebrief

History of Blockchain Games

If you are old enough, you remember the days when the only way you could play a video game was to go out and buy or rent a physical copy. I remember renting games from a shop halfway across town and feeling the anticipation and the agonizing minutes I needed to wait as I rushed home to play it; kids today will never know that struggle. Then as the Internet became more popular, there was no longer a need to purchase physical copies of games as now we can just buy them and download them directly to our devices and be gaming within minutes.

At some point, a quiet revolution happened that seemed to go by nearly unnoticed, though it played a massive role in the rapid expansion of gaming adoption into the mainstream, and that was the introduction of the free to play gaming model. With the rising adoption of smartphones and mobile devices allowing gamers the ability to game on the go, we saw a rise of games being released that were completely free to play. Anyone can go onto Google Play, The App Store, or the Nintendo Switch store and download hundreds of games for free. Gone are the days where I drop half my paycheque at places like GameStop.

The Free to Play Model Transformed the Gaming Industry Image via medium.com/community economics by forte

While the free to play gaming evolution was great as it allowed a lot of people to enjoy games for free, further gaming development and bringing more gamers into the space, blockchain gaming would “one-up” free to play and would introduce the concept of play-to-earn. Many blockchain games are not only free to play but also reward players with tokens, coins or NFTs that have real-world value. One of the earliest blockchain games was Cryptokitties, which was launched in 2017 and allowed players to breed virtual cats then sell the NFTs for crypto, with some cats being sold for over 100k.

Cryptokitties was one of the Earliest Blockchain Games Image via thecryptoprophecies

Impact of Play to Earn Games

The play to earn gaming model has fundamentally changed the gaming landscape and has not only shaken up the world of traditional gaming but finance and economics as well. I don’t think anyone was ready for, nor would have predicted the impact that the 2018’s release of Axie Infinity would have on the world, opening up everyone’s eyes for the first time to how powerful and disruptive the play-to-earn gaming model can be. The play-to-earn model in Axie Infinity turned out to be so lucrative that fortunes were made by many players in a very short period of time, paying people so much that they were able to purchase homes outright in places like the Philippines and people were actually quitting their jobs as they could earn more by playing Axie Infinity than they could earn at their jobs.

Players From the Philippines to the United States are Quitting Their Jobs to Earn More by Playing Axie Infinity Image via bnv

This gaming model also provided a living salary to many people in parts of the world where work is scarce and has had such an impact that the Philippine government is now looking to introduce a specific tax for wealth generated in games as they also want their cut. The introduction of the play-to-earn model has changed the ways in which we think about traditional finance and economics.

Gamers in the Philippines Will Need to pay tax on In-Game Earnings Image via The Manila Times

Evolution of In-Game Assets

It is not uncommon for traditional games to have in-game currencies, look no further than Grand Theft Auto where my bank account is in the multi-millions and I have sports cars, mansions and I have no idea where I parked my helicopter. It always causes me to second guess my life’s decisions when my video game character reaches a level of success beyond what I’ve accomplished in real life, but let’s not think about that. Traditionally, in-game currencies were only useable locally within that game, nobody in the real world cared about how many gold shillings your level 12 wizard had.

While gamers have been able to earn money trading gaming assets for real-world wealth for years by selling items like World of Warcraft characters to other players, it wasn’t until the creation of blockchain gaming where users could earn tokens or NFTs with real-world monetary value that could be sold easily and immediately for cash or other digital assets. Blockchain-powered gaming gives the ability to break open digital asset’s marketplaces, making them accessible on a global scale and freely exchange value on NFT platforms, crypto exchanges, and even peer-to-peer ecosystems without having to trust third-party intermediaries.

Simple Diagram Showing the Difference Between Fungible and Non-Fungible, Divisible and Indivisible Tokens Image via medium.com/communityeconomicsbyforte

Aside from being able to transfer in-game wealth to real-world value, another way that blockchain gaming revolutionized the traditional gaming industry is by introducing the ability to tokenize in-game assets. Blockchain technology provides a system for recording and securing virtual property rights to verify ownership and authenticity, with verified authentic items that can then be bought and sold on open marketplaces. By tokenizing assets, this will also enable users the ability to transfer some of these assets around to other metaverses and games.

The Future of Blockchain Gaming

I am going to use a little artistic leeway here and cover an extreme case for what is possible for the future of blockchain gaming. While the future landscape is impossible to traverse without a crystal ball, I am going to draw up a possible future for consideration with regards to where blockchain gaming could go. To really consider the grand scale of the impact that blockchain gaming can have, we need to think in terms outside of the realm of just gaming.

Blockchain games are going to become more than just a place where players go to kick a ball around or shoot zombies for fun, the future of blockchain gaming utilizing play-to-earn mechanics has the power to disrupt entire financial systems and economies as we have already seen a glimpse of this happening. The economic and financial landscape of the Philippines has already been altered so much due to the mass amount of wealth being collected by players located there that the government needed to impose an entirely new tax scheme for in-game earnings. One game alone had the power to pour so much wealth into the Philippine economy, that the people now have opportunities that they likely would have never had before which can have a hugely beneficial ripple effect on the nation as a whole.

There are so many blockchain games on the horizon, being released at a faster pace than before with titles being more complex. Games like Star Atlas will contain an entire universe that runs on its own economic and financial system, where players will be able to earn an income doing almost anything they can imagine, or just earn a salary performing a multitude of virtual jobs. A recent review covered how the game will have jobs available ranging from mining workers to space pilots and soldiers, imagine a world where people quit their actual world jobs in droves to pursue careers in metaverses such as Star Atlas. This is a realistic possibility, and I would say even a likely probability, as it isn’t a stretch to consider that people would rather zip around the galaxy and fight aliens while earning money instead of being tied to a desk and staring at Excel spreadsheets all day.

A Universe of Opportunities Await in Gaming Metaverses Such as Star Atlas Image via Star Atlas

With real-world jobs disappearing due to automation, I can see a future similar to Ready Player One, with expansive and interoperable metaverses where people spend the majority of their time not just gaming, but essentially living a digital life. Blockchain gaming is likely to be the key feature that will be shared by the metaverse as people will need something entertaining to do that will entice them to visit. While having fun and playing videos games is a motivating enough reason for most people, nothing motivates quite like money and when you can earn money while having fun at the same time, to me that sounds like heaven on Earth…Or a virtual heaven on a virtual Earth anyway.

As the blockchain gaming industry grows, many of these games will only be accessible via a metaverse which will cause these metaverses to grow and many of the jobs that exist in real life will need to be performed in the virtual world. As there is land for sale, that means there will also be jobs going for things like builders who will build on the land, digital real estate agents and managers, event organizers, artists and musicians will be performing in these digital lands so there will be a need for things like band managers and merch creators. I would imagine that there will be people we will be able to hire to play games for us as well. Being a “professional gamer for hire” is likely to become an in-demand job as we will need to hire pros to beat those difficult levels to earn some NFT or valuable assets when the games become too difficult for the average player. It is too early to know all the ways in which the metaverse will shape our lives, but the limit is only humanity’s imagination for what these metaverses will become.

Get Your Virtual Resumes and CV’s Ready as Someday Metaverse Jobs May Outnumber “Real Jobs” Image via themetaversejobs.com

It isn’t going to be all sunshine and rainbows for blockchain games though as there are likely going to be legislations and legal hurdles that the play-to-earn model will need to contend with for them to reach mass adoption. We have already seen world governments step in to regulate tax on crypto holdings and we are watching them struggle like one-legged ducks swimming in circles as they try and navigate how to regulate stablecoins and DeFi. They will also likely need to take further action to regulate the world of play-to-earn gaming models as the government can’t stand to see people prosper without them taking their cut. In an extreme case, they may even need to step in and do something to squash the play-to-earn gaming model altogether should they need to prevent a mass exodus of people from leaving the workforce to pursue virtual careers.

What The Future of Blockchain Gaming Means for NFTs, the Metaverse and DeFi

It has been often said that gaming will be the cornerstone, if not the foundation in which metaverses will be built. After all, there needs to be something going on in a metaverse that is exciting enough to make people want to visit, and games are the logical attraction. Blockchain gaming is likely to continue to expand and attract not only gamers but also those who would not typically consider themselves gamers if the rewards provided in the play to earn system are lucrative enough.

Blockchain gaming has the unique ability to span beyond the interests of just gamers who want to play or earn money, as blockchain games also have the ability to incorporate and reward players with NFTs. Fans of music, art, fashion and collectors in general who may not be into games can be encouraged to get involved if gaming is the only way they can get their hands on an NFT collectable. With luxury clothing brands such as Gucci, Burberry and Louis Vuitton minting NFTs, this could bring an entirely new market for players who may need to interact with a game if they want those fancy Gucci sneakers.

Luxury Clothing Brand Louis Vuitton Looks to Make NFT Incorporated Game and Attracting Non-Traditional Gamers into the Gaming Sphere Image via engadget

Conclusion

There is no limit to what rewards can be offered in blockchain games meaning there will likely be something to entice almost everybody. I believe that blockchain gaming is going to span across multiple interests, use cases and genres becoming more attractive to a wider audience and bringing more people into the world of blockchain gaming, DeFi and metaverses. I believe that the entire industry is going to grow at an exponential rate and continue to reach milestones never before reached in human history with advancements in user adoption, technology and innovation. The entire space will eventually become a self-fueling fire with many individual self-sustaining ecosystems and as more games develop, they will attract more users, which will attract more businesses who will offer more rewards, attracting more users and so on with the entire blockchain gaming, NFT, DeFi and metaverse space becoming an inextinguishable inferno that will be incorporated into the average person’s daily life.

While all these considerations are interesting to ponder and consider when thinking about what the future of this space will look like, I guess only time will tell. There is already an interesting and plausible theory, similar to the film The Matrix that states that we are already all living inside of a computer simulation with people like Elon Musk and Neil deGrasse Tyson even giving credibility to that theory, with Tyson going as far as stating that there’s about a 50/50 chance we are living in a simulation. Maybe we are already just simulations inside of a metaverse and will all eventually be playing play-to-earn blockchain games inside of another simulated metaverse and someday our metaverse avatars will also create their own little simulations and all “life” will basically be metaverses within metaverses, Rick and Morty style. With that thought, I better call this article to a close before my tin-foil hat falls off and my head explodes.

Rick and Morty Poster of the Episode: The Ricks Must be Crazy, Featuring Battery Universes Within Universes Image via Pinterest@rosemakesart

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post The FUTURE of Blockchain Gaming: Early Days, Potential GAINS? appeared first on Coin Bureau.

Mastercard Gets Deep Into Crypto, CEO Says Big Opportunities Await In the Industry

News Desk — Fri, 29 Oct 2021 15:11:41 +0000

Payments giant Mastercard is spending an increasing amount of time and resources investing in the crypto industry.

In the company’s latest earnings call, CEO Michael Miebach says he sees huge opportunities in multiple areas of the nascent industry, and confirms that the space has become one of Mastercard’s key points of focus.

“So the first is we see significant volumes in terms of people actually investing in crypto and selling crypto. So as an asset class, there’s a lot going on. And I think, we have a role to play to facilitate consumers wanting to do that if that’s what they choose to do.”

Mastercard announced last month that it was acquiring blockchain forensics firm CipherTrace as part of its dive into crypto. Financial details of the acquisition have not yet been revealed. The acquisition of CipherTrace came only two days after Mastercard announced they were acquiring open banking platform Aiia.

This month, Mastercard announced it was partnering with Bakkt to integrate crypto services to all its banks and customers.

“Mastercard customers can now enable consumers to buy, sell and hold cryptocurrency, deliver unique, crypto-centric loyalty opportunities, and streamline issuance of branded crypto debit and credit cards.”

Image via Shuttersrtock

Miebach emphasized on the earnings call the importance of these partnerships to Mastercard, and said they were “good from a volume perspective.”

“There’s real activity. When it comes to crypto as a payment tool, then we take a somewhat differentiated view on that versus the — we just stepped into that. We’re saying at this point in time, the most likely chance of this kind of technology to work for payments is issued through a government in the form of central bank digital currency. We’ve said that on a couple of calls before.”

While Mastercard is ramping up its crypto adoption, the company is not new to the scene. The payments behemoth was one of the original investors in crypto venture capitalist giant Digital Currency Group (DCG).

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Mastercard Gets Deep Into Crypto, CEO Says Big Opportunities Await In the Industry appeared first on Coin Bureau.

Beyond Digital Collectibles: 6 Other Use Cases For NFTs

Richard Sheen — Thu, 21 Oct 2021 16:38:15 +0000

NFTs, or “non-fungible tokens”, are a unique form of digital asset stored on blockchains such as Ethereum. They can be thought of as individual digital items, each with a unique digital identity. Throughout the 2021 crypto bull market, NFT collectibles have skyrocketed in value, with popular NFTs such as Cryptopunks commanding millions of dollars at auctions such as Sotherby’s. Beeple’s NFT artwork “Everydays: The First 5000 Days” was sold for $69.3 million in March 2021, making it the most expensive NFT artwork ever sold at the time of writing.

Unlike Bitcoin or Ethereum, which are “fungible” tokens (meaning each unit of the same token is always interchangeable and identical), every NFT is individually unique, indivisible, and non-interchangeable. This makes NFTs ideal for representing digital collectibles such as artwork, or virtual assets such as items or property in the metaverse.

You don’t need old guys with a hammer to auction your collectibles on the NFT market.

The immutable nature of decentralized blockchains means the authenticity of each unique NFT can always be verified definitively through on-chain records. As long as the blockchain on which the NFT is stored continues to exist, the NFT artwork will technically “exist forever” on the digital network.

Although NFTs seem like nothing more than speculative bubbles to the traditional investor, their emergence signifies the beginning of a new era of private ownership and property rights. In this article, we will explore the important implications behind NFTs, and introduce 6 other use cases for NFTs with profound socioeconomic implications.

Not Just Hype

NFTs bring a radically new paradigm of property ownership for artworks and collectibles. Compared to conventional artworks or collectibles, NFTs offer exceptional liquidity and virtually zero transaction costs. NFTs can be sent to anyone, anywhere, anytime as long as internet connection and wallet access are available to the transacting parties.

Unlike traditional collectibles such as a physical painting or a statue, which are both fragile and highly sensitive to environmental factors, NFT collectors do not have to worry about high costs associated with physical storage or transport. The brain is the only thing hardcore NFT collectors truly need to rely on to store or transfer their valuables on the blockchain network.

Gold and other physical valuables are relatively expensive to transport, particularly in large amounts. Source: NZ Herald

NFTs present users with the ultimate property rights unparalleled by any traditional types of collectibles: absolute ownership and custody, absolute uniqueness and verifiability, absolute protection from confiscation, and instantaneous, borderless transaction with minimal costs and associated risks.

However, the utility of NFTs is not simply restricted to digital collectibles, as they could very well be one of the most important technological innovations of the 21st century as the building blocks of the decentralized Web 3.0 society.

NFTs: “The Value Revolution”

Value is a fundamental building block of human activity, it is a unique social construct arising out of human agency and rationality. Most abstractly, value can be thought of as an agreement or consensus between different parties regarding the perceived desirability of certain thing(s). In this sense, consensus is the ultimate foundation of all value assertions, and as more parties adopt a certain consensus, the strength of its value proposition also increases.

Gold is the best example in which universal consensus of its intrinsic value has generated a tremendous amount of speculative wealth across the world. However, despite gold’s value consensus across different cultures and eras, we may attribute more value to certain pieces of gold of the same weight compared to others. A golden statue created by a master craftsman from an ancient culture is valued at a much higher price than its weight alone would suggest. This is because apart from exchange value, things could also have subjective or symbolic value, such as the value collectors attribute to Picasso’s first painting, or the value I attribute to my first drawing in kindergarten, which is subjectively intrinsic.

Yes, yes, Peter Schiff, gold does have intrinsic value, they make great dental fillings!

NFTs offer the best possible way to store and verify these subjective and symbolic values. Unlike traditional cryptocurrencies such as Bitcoin, NFTs make it possible for digital tokens to become immutable vessels for “non-fungible” values. The value of Cryptopunks, for example, would be considered largely speculative and symbolic in nature, as the aesthetic value of the crude pixelated images is virtually zero regardless of the media hype around them. If Cryptopunks were not NFTs but were normal JPEGs that could be copied and pasted indefinitely, they would be completely worthless.

In this sense, if decentralized blockchain technology is “The Trust Revolution”, NFTs would be “The Value Revolution”. NFTs fundamentally redefine the ways we could enjoy ownership and control over private property and preserve their unique value, it offers a way for us to store things of subjective or symbolic importance in a timeless, digital format that protects them from the erosion of natural elements. NFTs also allow us to digitalize other rights, such as the right of usage, loans, binding contracts, or even inheritance. This is because NFT rights can be enforced through DAO governance by code and consensus alone, removing the need to rely on centralized public law enforcement to maintain fairness and equality. Finally, NFTs may provide us a way to record provably unique information, histories, and identities of both individual metaverse participants and collective communities, creating a new way to represent unique social identities and express individual beliefs.

The “Play-To-Earn” NFT Revolution Of Digital Property Rights

The parabolic growth of the NFT game Axie Infinity and its AXS token during the mid-year crypto bloodbath of 2021 led to another round of NFT craze, launching various other blockchain game tokens to the moon regardless of their content quality. Instead of art collectibles, this takeoff was propelled by the NFT-based “play-to-earn” (P2E) gaming model of the blockchain metaverse.

The P2E gaming model is another revolutionary step for digital property rights. Decentralized blockchain-based P2E games allow gamers to truly own in-game property by giving players full custody and control over all digital assets they acquire in-game by storing items such as in-game equipment as NFTs.

This is in stark contrast with conventional online games, where developers can freely terminate their services while holding full ownership over all in-game assets acquired by players, leading to countless customer complaints from arbitrary account restrictions to outright “milking” of players through in-game asset manipulation by unscrupulous developers (such as “P2W”, or “pay to win” games).

NFTs As “Proof Of Work” For Metaverse Participants

However, P2E is much more than just a hype concept of player ownership of “worthless” video game assets. The P2E model is a rough sketch of a decentralized digital ecosystem based on the liberation of time and freedom for gamers and other digital participants alike. This is because all in-game assets acquired by players are fundamentally an abstraction of their time invested into the game, they are not simply “pixels backed by nothing more than strings of code”. These in-game assets represent a part of the “life” that gamers choose to invest into digital realities instead of the “real” world.

Think of gamer investment into video games as their “proof of work” to the gaming platform itself. When gamers contribute their time and effort to online games run by centralized developers, they are willingly forfeiting their digital productivity and property rights to a centralized authority – they are not the owners of their own “proof of work” in the game. NFTs redefine this dynamic by leveraging decentralized consensus to “force” private property rights for gamers through open competition. NFTs provide a method for gamers to both own and take credit for their creations in video games. What could be better than truly owning the “Legendary Sword Of Infernal Flames +10” that I created myself in my favorite online game as well as having my name carved onto it like an actual masterpiece of a legendary blacksmith, with no risks from forgery?

No, wait, mom, I really do have a job! I’m an NFT blacksmith!

In this sense, NFTs can be understood as the “proof of work” of the personal time and effort of each participant in the metaverse. This is because NFTs provide better proof of individual effort to production than anything the physical world has to offer. They can be used both as unique identities for metaverse participants and as unique products or records of effort/investment as “proof of life history” for individuals. NFTs can perfectly preserve the personal elements of any process of human creation, and while this characteristic is currently only used in NFT artworks and collectibles, the “PoW” nature of NFTs can be extended to prove the origin of anything that involves an element of personal significance, such as a personal diary, a birthday card, or even an inheritance will.

No longer does “playing video games” imply “a waste of life”, because, with NFTs, the value of digital in-game assets can now be preserved for as long as the game ecosystem itself continues to receive support from the community, elevating the qualities and utilities of digital assets closer to those of traditional physical assets.

As the NFT metaverse and Web 3.0 ecosystem further matures and more participants enter, the utility and value of NFTs will only increase further, as they represent the next evolutionary step of property ownership that is technically unachievable in the physical world.

NFTs As The Fairness Standard In The Digital Economy

The P2E model introduced by NFTs also addresses the problem of “pay to win” game models widely adopted by money-grabbing game developers by utilizing incentives through free-market and game-theoretic dynamics similar to DAO governance. Like all other decentralized blockchain ecosystems, P2E games are sustained by community consensus of their desirability. It returns the ownership rights of all time and effort invested by each player into the games and metaverses they love by rewarding their unique efforts with verifiable NFTs. However, player investment is only valuable insofar as the community continues to agree that these games and metaverses are worth participating in.

If extreme inequality of power arises within a P2E ecosystem due to “pay to win” situations, where wealthy players can simply “buy out” all the best equipment and upgrades to gain a superior advantage over other players at the cost of fairness, the consensus around the game platform itself will diminish, thus decreasing the earnings potential of P2E participants and the value of all unique NFT assets owned by “whale” players. If my “Legendary Sword Of Infernal Flames +10” plummets in value, I will have reduced incentives to continue creating new equipment as players begin to leave the game. This means whales will be incentivized to maintain a fair socioeconomic structure within the game if they want to retain the value of their digital assets.

Metaverse societies also mirror the laws of fairness and justice like real societies.

This very same logic can be theoretically extended to any decentralized digital ecosystem, as incentives are only useful in the presence of adequate property rights. In an open ecosystem where participants can freely enter or leave, property rights will become the anchor for fairness and equality. If one ecosystem becomes so unfair that the average participant can barely survive (think hyper-inflated housing prices), participants can choose to fork into another ecosystem at little to no cost, unlike moving to another city in the physical world. When the whales who get to set the rules no longer have the power to control their subjects due to massively reduced relocation costs, they will be forced to either maintain the system’s justice and fairness or risk losing their wealth and power.

Analogously, a socially repressive authoritarian regime can only exist insofar as its subjects are forced to remain in its jurisdiction. If citizens are free to relocate at minimal costs, authoritarian governments would become extinct. This is because liquidity does not apply only to assets, it also applies to populations and livelihoods – think of the individual choice to residence as a “freely flowing energy” or “liquidity consensus” that naturally moves from undesirable habitats to desirable ones, just like “bad money flowing into good money”. Open ecosystems maximize this “consensus liquidity” because if whales are the “dictators”, they will be forced to choose between justice and equality or face ostracisation as everyone leaves their “jurisdiction” for fairer systems.

Authoritarian control only exists insofar as alternative options are inaccessible or equally undesirable.

In this sense, NFTs not only protect individual rights to their own time and investment but can also be used to preserve social fairness in a digital ecosystem by maintaining social fairness through incentives and open competition between ecosystems. After all, why would anyone continue to participate in an unfair “pay to win” game/metaverse when another competitor offers a better alternative, even if it’s simply a fork of the same game/metaverse, albeit with fairer rules for its participants?

NFTs As “Hyperliquid” Real Estate

Real estate, both physical and digital, is perhaps one of the most intuitive use cases for NFTs. One of the major sources of value for real estate is the uniqueness and exclusiveness of land. Locational advantage is an inherent quality of real estate that commands its speculative value. Want a nice view? Only a small percentage of residential properties have it. In this sense, real estate can be thought of as “naturally occurring NFTs” secured by geolocational coordinates, which fits perfectly with digital NFTs.

However, traditional real estate also comes with some challenges: low market velocity and capital efficiency. This is due to the slow and complex process of transacting real estate, which may often take months, if not years for each deal. NFTs offer the perfect solution to this liquidity problem by automating the complex paperwork and middlemen processes with a blockchain, such as title searches and lawyer certifications. NFTs also make borrowing against properties much faster and more convenient, as complex lending processes can also be streamlined on a dedicated blockchain with automatically calculated rates.

If you lose your phone, you can still enter your house as long as you remember your NFT private key.

NFTs can also vastly improve capital efficiency in the real estate market through fractional ownerships, making real estate investment much more convenient and accessible for the average investor. Similar to DeFi lending, development funds for real estate can be raised in DeFi liquidity pools through a DAO, which can be managed by both the development team and community investors. Investors may deposit funds into pools representing different real estate projects, each with a unique NFT token that is issued when development initiates. The NFT token can then be fractionalized as ERC-20 tokens via NFT DeFi vaults and distributed to investors. This could make real estate investments just a few clicks away for the average investor compared to traditional real estate funds.

Finally, fractionalizing real estate NFTs could also help existing homeowners to sell or borrow against a fraction of their home (or the rent generated from it) and could make collective homeownership more convenient for young adults. Together with DeFi, NFTs could completely revolutionize the real estate market with endless combinations for financial innovation.

NFTs As “Hypersecure” Real Estate

Unlike most physical goods, real estate is difficult, if not impossible to transport or withhold. This means it is difficult to sell the ownership rights of a physical real estate as an NFT then withhold the actual physical property without sophisticated methods. On the other hand, it is quite possible to sell the NFT of a physical artwork then refuse to destroy or transfer the physical copy to the new owner. This means in most cases, the “NFTisation” of physical collectibles must be accompanied by either the destruction of the original copy or the permanent imprinting of a digital certificate onto the physical copy in a way that makes it impossible to remove without significantly damaging the item.

However, the issues with digitizing physical collectibles don’t apply to physical real estate. This is not only due to the easily verifiable nonfungibility of physical land itself, as they are represented by geospatial coordinates, but also the ease of enforcement for real estate property rights. For example, the keys, locks, and alarm systems of houses can be controlled by an ownership NFT stored on a phone or backup hardware wallet(s). This gives the owner full control over the security systems and IoT (Internet of Things) networks in the house, making it much more difficult for the average burglar to enter the property without causing a scene. While this opens more potential attack vectors in cybersecurity, securing physical real estate with NFTs also raises the job requirements for burglars to ten years of experience and a computer science Ph.D.!

This guy is also going to lose his job, so he better apply for a Computer Science degree soon.

Digital real estate in the NFT metaverse is an even sweeter deal. The inherent advantages of digitization provide digital real estate with much higher capital efficiency, market velocity, and traffic capacity with scalable bandwidth. Imagine having your digital museum visited by five million tourists at the same time, if that were to happen in a physical museum, visitors will have to be compressed into the size of a mouse to fit in! It is also much easier to enforce property rights in the NFT metaverse, as the same old saying goes: not your keys, not your coins. With NFT metaverse real estate, there are no physical doors, locks, or alarms, you don’t have to manage your own security or entrust it to a third party. Because the metaverse blockchain itself is the security platform for your property, your security is essentially the consensus and incentives supporting the ecosystem. By aligning incentives of metaverse participants, a strong platform would incentivize all participants to continuously maintain and improve its security. This makes NFT metaverse real estate communities the ultimate “neighborhood watch”.

NFTs As Individual Tokenized Rights

Tokenised rights aren’t new to the cryptosphere, but the utility of fungible tokens in representing individual rights is limited compared to that of NFTs. This is because NFTs could offer uniquely tailored rights and contracts for different individuals based on their unique NFT identities and contract terms.

An example of unique identity-specific rights would be rental tokens. A vehicle rental service could issue NFTs for rental contracts, which are required for renters to drive their rental vehicles. Like a single-use digital key, the rental contract NFT could bind the NFT of the specific rental vehicle to the NFT identity of the renter for a set amount of time under agreed terms. Analogously, this could be compared to using the renter’s driver’s license itself as the key for the rental vehicle. This could greatly improve the security, transparency, and accountability of rental markets.

NFT rental contracts can automatically apply terms of use, removing the need for verbal instructions to customers. Image via Reddit

Likewise, the same NFT contracts could be applied for hotel bookings, rental apartments, and other specific, conditional rights and contracts that cannot be easily represented with fungible tokens, such as insurance, binding contracts, or estate inheritance, etc. These law frameworks can be enforced through DAO token incentives, or even automatically executed with a sophisticated on-chain system in the future.

NFTs As Verifiable Record

Blockchains are not simply immutable records of unique wallets and transactions, they are also immutable “bundles of history”. Each block is a definitive record of time as segments of on-chain events encapsulated into publicly verifiable blocks of information. Think of blockchains as clocks, but instead of tracking time through regular, cyclical movement of hands, blockchains track time linearly by recording on-chain events as an encrypted sequence of information. This way, blockchains can also be thought of as an alternative representation of time as linear sequences of events.

Unlike fungible cryptocurrencies, NFTs add a second layer of detail to “blockchain time” by recording unique, non-fungible information of what exactly is being exchanged on-chain. This could be anything from the ownership of unique digital artworks to something as simple as a digital serial number, which can be very useful for product certification, supply chain management, and tracking various records such as product maintenance and quality control. VeChain, for example, is one of the several blockchain projects that are dedicated to supply chain management.

NFTs can be applied in manufacturing, processing, and logistics through IoT (Internet of Things) supply chains that automatically track the production and transportation of physical goods with automated blockchain-integrated sensors. This could include product origin, source material, and certification for both individual parts (such as genuine vehicle parts) and complete products (such as food, appliances, luxury goods). A good example of IoT-based supply chain management blockchains is Ambrosus network, which deploys IoT sensor networks in production lines for enterprise needs. Although Ambrosus network doesn’t utilize NFTs in its system, NFTs could be included to further improve transparency and accountability across the entire production line, particularly for high-value goods.

Even better, NFT supply chains could allow you to directly pay the farmer on the other side of the globe for you coffee with cryptocurrencies.

As more blockchain applications integrate with each other in the Web 3.0 ecosystem, repetitive tasks that are traditionally managed by human labor will move onto automated blockchains. Automated blockchain administration for logistics, certification and verification of supply chains and real-world assets will become the mainstream for competitive platforms and service providers. Vehicle mileage and repair histories can no longer be tampered with, and “fair trade” labels on products will be subjected to fully transparent verification.

NFTs As Identity

Finally, we must ask the question: who, exactly, do NFTs represent? After all, work, property, history, and verifiable uniqueness could only have meaning in a society of free individuals, each with a unique self-identity. But what exactly constitutes our identity? Is it our appearance? Relationships? Personality? DNA? Or perhaps our memories? While these things all play an important role in our identity, apart from DNA, they could all change or distort significantly throughout our lives. But one thing that doesn’t change, is history itself.

NFTs can represent the unique human beings behind digital identities with “provably unique histories” without the need for third-party verifiers. NFT identities can be used to record the choices, efforts, investments, and interactions of every unique participant in the Web 3.0 digital ecosystem. You can forge a passport, but you can’t forge an NFT. Tired of SIM swaps? That can’t happen with NFT identity verification. Scammers and imposters will be easily exposed through the verifiable history behind each identity, while consensus-based decentralized governance will provide the incentive mechanisms to “fine-tune” the balance between privacy and transparency of the ecosystem in the long run. By storing the past and present of every individual on the internet of blockchains, individual identities may be provably immortalized in the collective memory of blockchain history itself.

That feel when you find out your e-girlfriend in World of Warcraft is actually a dude.

NFT identities are not limited to individual identities, but can be used to represent any symbolic identity in a digital format such as group membership, brand identity, ecosystem specialty, or even “metaverse nationality”. Unique “blockchain native” brands or product lines could become the mainstream in high-end consumer markets. “NFT-verification networks” could provide international trade with much greater transparency, particularly in products such as organic food, “carbon-neutral” commodities, limited production goods, and genuine specialty products with traceable origins.

On the macro level, entire “metaverse cities” or even “crypto nations”, each with unique NFT signatures and different “specialties” could create new forms of stateless, permissionless community identities. For example, a “Cryptopunk Museum” hosted in a virtual reality “NFT capital” that exists purely on the blockchain could become a future “Web 3.0 tourist attraction”. Entire “digital cities” could exist based on provable ownership of NFTs as community identities similar to, but better than passports, creating a whole new world of digital societies.

Perhaps one day, tourists may no longer use passports to travel around the physical world, as the NFT metaverse will offer a comparable experience through the “digital tourism” industry, where tourists may travel freely across boundless cyberspace, created and owned by the collective imagination of every “metaverse citizen”.

Conclusion: NFTs, The Building Blocks Of The Digital Future

So here are 6 other use cases for NFTs, each of which carries significant ramifications for the digitalized future. To wrap up, NFTs as “Proof of Work” for metaverse participants make individual contributions much more meaningful and accountable. NFT PoW creates more stable “consensus liquidity” that enforces fairness and balance in metaverse societies through open competition of “game rules”. Both physical and digital real estate could benefit from “hyperliquidity” and “hypersecurity” offered by NFT technology. NFTs may improve the security and efficiency of unique tokenized rights by removing trusted middlemen and automating highly sensitive contracts. NFTs can also be used as the ultimate transparency and accountability tool for many industries such as manufacturing and logistics. Finally, and most importantly, NFTs offer a new way for us to establish and verify social identities in the digital metaverse from the individual level up to the collective level.

The digital metaverse will be come the ultimate expression of collective human creativity.

While digital collectibles, metaverse contributions, and real estate are only three of the more basic functions that NFTs may provide in the short term, the possibility for NFTs to represent provably unique records, histories, rights, and identities make NFTs an integral foundation for building a truly individualized metaverse that maximally expresses true diversity and social freedom.

In conclusion, NFTs provide an additional layer of truth to the blockchain and makes it possible for us to bestow individualized value onto the trust revolution of decentralized technology. NFT technology will reshape the structure in which human societies function by simplifying the provability of uniqueness in a trustless system, bringing The Trust Revolution of decentralized blockchain technology to the next step in the form of The Value Revolution.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Beyond Digital Collectibles: 6 Other Use Cases For NFTs appeared first on Coin Bureau.

Top 6 Crypto-Friendly Banks: Complete List

Nikolas Ketonen — Thu, 21 Oct 2021 15:27:00 +0000

Due to the lucrative price actions of cryptocurrencies in this recent bull market, there has been a large inflow of money from both retail investors and institutional investors. Many are entering the crypto markets for the first time and are therefore unaware of how you buy cryptocurrencies and what exchange to use.

This has also forced governments to review these exchanges to stop any potential illicit activities and to “protect” investors. Also, banks have started to take action since they have experienced major outflows of capital from people wanting to invest in cryptocurrencies.

When you combine the fact that governments are starting to attack certain exchanges, most notably Binance, with the fear banks have of losing customers you get a not-so-nice situation for crypto investors. Now that governments are implementing rules on cryptocurrencies and some talk very negatively about them, it has allowed banks to cut their customers off from cryptocurrencies.

Many noticed this when the crackdown on Binance led to numerous banks restricting bank transfers and payments to and from Binance. This is why there’s now a wide search for cryptocurrency-friendly banks to use for a secure bridge between cryptos and fiat. Luckily for us, there are a lot of them and we’ll take a look at a few in this article.

The Importance of a Good Exchange

Before discussing which bank is the best for crypto it’s important to note that if you’re using the wrong exchange it might not make any difference which bank you use, you might still be without a way to withdraw or deposit. This is partially what happened in the whole Binance situation.

The Binance crackdown began because Binance didn’t have the licenses needed to operate in the jurisdictions where it was already operating. Naturally, it’s illegal to operate without the licenses needed, and, understandably, no matter which bank you are there ain’t no way it’s good to do business with an illegal entity. Yes, it maybe wasn’t that dramatic and many banks allowed you to deal with Binance, but in a more extreme case, you could be in trouble if you use the wrong exchange.

The whole Binance crackdown started in the UK and led to banks like Barclays, HSBC, and Santander restricting payments to Binance.

Additionally, one of the most used forms of transferring money to an exchange in Europe is via SEPA transfer, which is something that can be restricted. SEPA is an initiative by the EU and not just a technical term. This means that when regulators want, they can stop SEPA transfers to a certain business and there’s nothing your crypto-friendly bank can do about that.

As you might now understand, you need a good exchange. The safest way to ensure that you always have the opportunity to withdraw your funds is to use one of the big centralized exchanges. I understand that it’s not an option for those who prefer the privacy that comes with decentralised exchanges, but still it’s worth considering. If you’re now wondering which are the good ones then it’s your lucky day, you can find a video about the best-regulated exchanges from the Coin Bureau Youtube channel.

Stay Away from Boomers

Before getting into any individual banks, there’s one interesting thing linking most of the crypto-friendly banks. They are all digital, new, and innovative.

When searching through the internet looking for crypto-friendly banks I found loads of content. Many sites highlight the same banks as the best although many of them were not that familiar. They were also relatively new compared to the traditional banks we’re used to seeing everywhere like Barclays, HSBC, Santander, JP Morgan, and other high profile options.

New technology is coming, and it doesn’t seem like our big banks are ready for it.

There are many reasons why it’s like this and many of the reasons are similar to why people own or don’t own cryptos in the first place. For banks, in particular, cryptocurrencies are often seen as a threat since one of their primary use case is to remove the middle man, which often happens to be the bank.

You could then wonder why these digital banks want to implement cryptocurrencies? Well, we have to face the fact that fiat currency won’t go away, and will likely continue to be the form of currency used by the majority. This is why these digital banks see a way to capture big banks’ customers by being the first ones to offer a friendly view of new technology by building bridges between the old and the new.

Then why don’t big banks want to be the best in this too? This is where I would say that the more traditional reasons come in. Many of the big banks’ boards are full of older people who do not understand, nor want to understand the use case of cryptocurrencies. The amount of innovation is vastly different in a start-up bank compared to a bank that has been operating more or less the same way for centuries. Many banks were also living in hopes that cryptos would die off, but as we can see, cryptos aren’t going anywhere.

The transition to a mobile centric lifestyle has paved way for new digital-only banks.

Because of all of this you should note that the banks found in this article aren’t the traditional ones you’re used to seeing. However, that should not stop you from giving them a try. It’s also worth noting that just because you’re looking for a crypto-friendly bank doesn’t mean you have to move all your businesses from one bank to another. It might just be a good idea to set up one of these more crypto-friendly banks to handle your crypto investments. You can still keep your main account somewhere else and use that for all other things than cryptocurrencies.

The Most Crypto-Friendly Banks

When reading through this list there are a few things to remember. All of these banks may not be available in the country of your residence and might therefore be irrelevant for you. Also, these banks are just a few of the options out there so don’t limit your search to only these. Lastly, these banks are not ranked in any particular order.

1. Nuri

Now that we’ve covered a few more narrowly available crypto-friendly banks, let’s move on to a larger, more widely available bank. Nuri, formerly known as Bitwala, is a German-based bank available to everyone in the EU, UK, Switzerland, and many more jurisdictions.

Grow your money by investing and saving in cryptocurrencies and start earning up to 5% interest per year on Bitcoin. All directly from a German bank account, Visa debit card included.

Main Features

Full German bank account with €100,000 Deposit Guarantees
Visa debit card with unlimited free ATM withdrawals
Crypto portfolio, Buy and Sell Bitcoin/Ether & Bitcoin Interest Account
Secure Wallets and Vaults for Crypto Storage
Free Annual Tax Report
Customer Support via Chat & Email

They have partnered up with Solarisbank to host their accounts, which makes deposits up to €100,000 insured. When it comes to fees, it’s completely free to open up an account and there is no management fee. The only fee you’ll encounter is a 1% trading fee.

Nuri could be your all-in-one solution to dealing with cryptocurrencies. Image via Nuri.

One of the best features of Nuri is their savings plans. Nuri believes that saving and investing in cryptocurrencies shouldn’t be a chore, so they make it as easy as possible. In fact, they allow you to automate your Bitcoin and Ethereum purchases, making it a typical part of your routine. Simply set up recurring payments and Nuri will automatically buy a set amount of Bitcoin and/or Ethereum each month.

The Bitcoin savings account pays up to 5% APY and comes with the following benefits:

Weekly payouts directly to the Bitcoin Interest Account every Monday
No lockup, add & withdraw anytime
Withdraw and convert to Euro within minutes
Minimum investment of €10
Only network fees apply when investing, no additional fees for withdrawals

What makes this even better is that it takes advantage of the power of dollar-cost-averaging. This means when crypto prices are lower you buy more Bitcoin or Ethereum, and when they are higher you purchase less. Over time this cancels out the volatility and price changes of your crypto purchases and gives you the best long-term results.

When it comes to crypto friendliness, Nuri is great. Through them, you can directly buy both Bitcoin and Ethereum. Additionally, they offer up to 5% interest on your Bitcoin holdings, which is pretty great considering you’re doing it through your bank. All this just shows that Nuri is a crypto-friendly bank and won’t likely, restrict your payments to crypto-related companies.

2. Fidor Bank

First, let’s start with a bank that since 2014 has proceeded to be a top choice for crypto enthusiasts. Fidor is a German-based digital-only bank that currently only operates inside of Germany. However, since they are undeniably one of the most crypto-friendly banks they need to be mentioned. Fidor is also easy to set up and the fees aren’t that bad. The fees at Fidor are €5 a month, but they can be offset if you conduct more than 10 transactions per month.

A bank worth considering if you’re German. Image via Fidor

In 2014 Fidor partnered with a popular German exchange called Bitcoin.de. This allowed their customers to near-instantly deposit funds to buy cryptocurrencies. Nowadays they also have a partnership with Kraken and they are Kraken’s funding providers, which makes this bank an obvious choice for those who live in Germany and use Kraken. Since they have direct partnerships with crypto exchanges it’s highly unlikely that they would suddenly freeze your crypto transactions.

3. Monzo

Now since the previous bank is only available to German residents it’s only fair to bring up one that’s only available to UK residents. As with Fidor, Monzo is also a digital-only bank, so you need to be comfortable using your mobile device. An extremely positive benefit you get from Monzo is zero fees for card payments. There are truly no fees for card payments, not even abroad, plus, their basic account itself is free.

A great pick with a proven track recored.

What makes Monzo stand out as a crypto-friendly bank is that during the Binance crisis in June/July 2021, where many banks stopped deposits to crypto exchanges, Monzo let their customers know that they will keep supporting transactions to crypto exchanges. However, there were, and still are, a few exchanges which they don’t support but that’s reasonable since as earlier mentioned it’s not good to support something illegal.

4. Revolut

This is another digital-only bank. Revolut is considered by many review sites as the most crypto-friendly bank out there. They have over 15 million customers all over the world since they are available to customers from all major countries like the UK, the US, almost all of the EU, and many more.

Revolut is also extremely easy to use and set up, especially compared to the traditional banks that require piles of paperwork. Revolut only requires a few bits of personal information, including a selfie, and after that it’s simple to order a Visa card through the app and you’re good to go. And yes all of this is free.

A great bank with a large customer base and a quality platform.

The reason why Revolut is seen as such a crypto-friendly bank is because they offer the opportunity to buy cryptocurrencies with their app. A while ago they were criticized for not allowing crypto withdrawals, but that is now currently available to wallets like Ledger.

However, buying cryptos with Revolut might not be the wisest thing. Revolut has a base fee of 2.5% and an additional 0.5% if you trade over £1000. The only way to lower the fee is by upgrading to either premium or metal accounts, but that will cost you £6.99 or £12.99 while only lowering the base fee to 1.5%.

Therefore, although all the development Revolut is doing in the crypto space is extremely good, it might not be the best idea to use them for crypto trading. However, as with a few previous banks, this all shows that this is a bank that is much less likely to restrict your activity in the crypto space than many others.

5. BankProv

Although I said earlier that as a rule of thumb older banks are less likely to be crypto-friendly, there are still exceptions. BankProv, previously known as The Provident Bank, is over 200 years old, which makes it one of the oldest in the US. BankProv is a publicly-traded company under Provident Bancorp Inc., and this itself might guarantee you some safety in general. Nowadays BankProv is advertising itself as a leader in FinTech and without knowing the history you might think it’s a startup. This is at least the feeling I got when entering their website.

Although this list has been more about personal banks this is more of a business bank. BankProv does offer personal accounts but their business opportunities are a lot better displayed.

Worth taking a look at if your company needs a good crypto-friendly bank. Image via BankProv.

What makes BankProv crypto-friendly is its own cryptocurrency segment. When you look at the website you’ll see cryptocurrencies as a category by itself. Here they offer API Banking along with ProvXchange Network. These guarantee instant transfers inside the network of BankProv’s clients.

API banking is also known as open banking, which means that it’s guaranteed for you to have access to your own data at all times. They also have a partnership with Anchorage Digital to offer crypto-backed loans. The latest announcement from them was to offer Ethereum backed loans. It would thus be logical to assume that a bank offering loans backed by crypto won’t stop your interactions with crypto exchanges or other crypto companies.

6. Wirex

Although Wirex is on many lists of most crypto-friendly banks it’s actually not a bank. Still, it’s worth mentioning since as they state on their website, not being a bank allows them to do things that banks can only dream about. Wirex has its own payments card in partnership with Mastercard, and they advertise it as being more beneficial than Monzo or Revolut’s cards. Wirex has three different plans with the basic one being free. If you upgrade your plan you’ll get more crypto back, which if you use the card much, might pay for the plan price.

Not really a bank, but a great option for you to use for your crypto-related stuff.

The reason why Wirex is mentioned on so many lists, even though they are not a bank, is that they support cryptos while offering the same traditional features banks offer. They offer a multi-currency exchange including many traditional currencies along with an extensive selection of cryptocurrencies, at least compared to their competitors. Because they are not a bank the process is near-instant.

Wirex also has its own token (WXT) which if you own you’ll get more opportunities to use DeFi along with other crypto-related features. This makes Wirex maybe more of an exchange similar to Crypto.com but it’s still worth checking out. Another popular and safe similar option would be Paypal which recently launched its crypto offerings to UK customers.

Conclusion

One important thing I want to emphasize again is that these banks were in no order and there are numerous other good options out there. If you do find some other bank that you feel might be crypto-friendly I recommend you to check the company news. If you see crypto-related partnerships then you should be good to go.

Many banks are becoming more crypto-friendly since they need to do that if they want to keep their customers. That’s why I wouldn’t worry too much if your bank doesn’t offer the opportunity to buy cryptos directly, as long as they have some part of their business linked to crypto-related services then you should be fine.

As I also mentioned earlier you don’t need to change all your business from one bank to another. Many of these digital banks might not offer the same deposit securities as some of the big banks and you may not be comfortable with that if you have large sums of money.

There have also been many allegations against the lack of security at these digital banks. Therefore, you can very well only change your crypto-related things to one of these banks while leaving your traditional fiat businesses in the old place. This way you guarantee the best safety combined with flexibility.

Also, as time goes by I strongly believe that even the most anti-crypto banks have to change and adapt to the changing world. This means that even the banks who now try to restrict your crypto transactions will have to change or otherwise they won’t survive.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Top 6 Crypto-Friendly Banks: Complete List appeared first on Coin Bureau.

Mint NFTs: Top 5 Platforms to Create and PROFIT!

Tayler McCracken — Fri, 01 Oct 2021 19:26:05 +0000

Though they are often considered as the new kids on the blockchain, NFTs are quickly becoming OG’s in their niche within the crypto-space, and for good reason. Each bull run has had its own flavour of which cornerstone of the crypto industry took the title of fan favourite. The 2013 bull run had Bitcoin in the spotlight back in the early days before the crypto ecosystem evolved and expanded to what it is today. The 2017 bull run saw many investors make life-changing gains with the explosion of DeFi, with DeFi coins and tokens leading the charge.

The 2021 bull cycle is showing signs of a maturing market so far as it isn’t just euphoric hype fuelling a single niche, but each sector of the blockchain industry is seeing healthy growth. The 2021 bull run has played out with two prevalent trends, while Bitcoin and DeFi are still seeing significant gains, all eyes have been on layer one alternatives to Ethereum such as Solana and Cardano. Incredibly though, even shadowing layer one protocols, the most explosive growth in a single sector came in the form of NFTs.

NFTs Market Cap Grows 1,785% in 2021 Image via Forbes

NFTs were developed as a way to authenticate and store information about a digital asset which is stored on the blockchain. The first, and most obvious use case that people saw for NFTs was a way to revolutionize the digital art world, as artists were now able to create something truly unique, and those who purchased the art were able to verify the artwork’s authenticity and originality.

The reason why this advancement is so important and impactful is easy to understand when we compare NFTs to the value of an original piece of art in the real world. I can print 50 copies of Van Gogh’s The Starry Night on my printer at home, but they wouldn’t even be worth the cost of the paper and ink used in the process. Yet, the original piece itself is worth well over 100 million dollars with one wealthy billionaire recently stating he would liquidate his entire empire and pay a billion dollars to be able to own the original! Wow, a billion dollars for a blurry painting? I got into the wrong line of work.

Portrait of Vincent Van Gogh’s The Starry Night Image via moma.org

The use cases for NFTs have already far surpassed the act of simply making and authenticating digital art. We see the concept of NFTs already being used extensively in the gaming and music industries, and even brick and mortar mail delivery and supply chain companies are looking into NFTs as a way to track mail and shipments. The use cases for NFTs are endless and only limited by our imaginations. Anything in the real world that needs to be verified, authenticated, and non-alterable have potential uses to be moved into digital NFT format which is why we are now seeing legal documents, contracts, birth certificates, educational certificates, wedding certificates and even wedding rings being minted into NFTs!

Two Coinbase Employees Exchange Virtual Wedding Rings During Wedding Ceremony Image via The Verge

If you are looking for the top platforms to mint NFTs, then you have come to the right place. If you’re not quite up to speed yet on just what the heck NFTs even are, here is the complete guide to NFTs, and even Guy has dabbled into the world of NFTs, and covers why they cannot be ignored here. If you think the whole NFTs craze is a bit silly, well I can’t say I blame you after seeing the CryptoPunk that sold for a whopping $7.6 million dollars. If you still need some further convincing that NFTs are a juggernaut and here to stay, then I definitely recommend you check out the top 10 most expensive NFTs ever sold and then join me bitterly as we stew in the “psssh, I could have come up with something better than that,” club.

Who Can Create, Buy, and Sell NFTs?

The great thing about NFTs, just as with regular art, is that anyone can be a creator, buyer or seller! Arguably, the barrier for entry to create, buy, and sell NFTs is even lower than real-life art as you don’t even need all the messy art supplies to get started, nor leave your house to buy or sell. We already see artists and musicians converting their work to NFTs, but it isn’t just for the artists. Entrepreneurs, corporations, authors, videographers, educators, supply chain companies, athletes, social media personalities selling minted tweets, even government officials are taking advantage of this technology. The ease in which an NFT can be created, purchased, and sold has come a long way since the first piece of digital art was minted as an NFT back in 2014 by Kevin McCoy, with the process being now more streamlined than ever.

https://www.coinbureau.com/wp-content/uploads/2021/09/main.mp4

Okay Fine, I Could Not Have Done Better Than That! Image via Sotheby’s

There are dozens of online NFT marketplaces where buyers and sellers can come together to well… buy and sell NFTs. Many of the places where people sell game-related NFTs exist in blockchain videos game marketplaces themselves such as CryptoBlades and Splinterlands. Here is an article that covers some of the highest paying blockchain games around, where NFTs are being sold for some pretty decent cash. Of course, if you are looking for a more general place to buy and sell NFTs of all sorts, then you need to look no further than sites such as OpenSea and Rarible. Here are the top ten sites where artists, collectors, and art enthusiasts come together to create, buy, and sell NFTs, of these ten, I will be covering the top five in more detail.

Top 10 NFT Marketplaces Image viainfluencermarketinghub

Okay, now that you know a bit more information about what non-fungible tokens are, why they are valuable, some use cases for them outside of the art world, and even where to go to buy or sell them. Now, how and where do you go about actually creating them? Fortunately, we have covered the “how,” in our How to Mint NFTs 101 Guide, as for the “where,” if you have made it this far in the article and are about to go deeper into the minting process and platforms, then I must tip my hat to you on taking this step.

While myself and many like me are stewing bitterly in the earlier mentioned, “psssh, I could have come up with something better than that,” club, you are actually journeying into the future of digital art, gaming, music, or you name it! While you are looking into becoming the next big thing in this digital revolution, pioneering and paving the way for future generations, I am going to be telling my grandkids about how back in my day, I missed out in buying Tesla stock and minting NFTs, then the grandkids will go home and complain to their mother about how grandpa was telling stories again about how he should have been the one to come up with the CryptoPunks idea. It’s fine, really, I’m not bitter about it at all.

Top 5 Platforms to Mint NFTs

Remember when I mentioned that the whole NFT process has become a lot more streamlined since the first-ever NFT was created? Well, you will be happy to know that the marketplaces I mentioned earlier for buying and selling NFTs are also the go-to place to mint your NFTs. Talk about the ultimate convenience!

#1 OpenSea

There is one clear winner in the NFT space when it comes to minting, buying, and selling NFTs of all sorts, spanning across multiple different genres. Talk about a one stop-shop as OpenSea contains the widest variety of available NFTs for any taste and any aspiring artist, collector, investor, or art enthusiast.

OpenSea Market Where NFTs are Bought and Sold. Image via OpenSea

One of the benefits of choosing OpenSea to mint NFTs is that creators can actually mint their digital art for free here, with no gas costs associated if you choose to mint your NFT on the Polygon network as opposed to the Ethereum network. It is important to know that OpenSea will charge a one-time fee for account registration before creators can sell on the Ethereum network, and there will also be a fee if the NFT that you want to list on the market was minted outside of OpenSea. If Ethereum is your network of choice, there will be recurring ETH network fees for any transactions associated with the NFT as well, so be sure the get familiar with the fee structure on OpenSea before getting too involved with Ethereum minted NFTs as those gas fees can be nasty. If Ethereum Gas fees are getting you down, be sure to check Guy’s tips and tricks to save on gas fees. In order to get started with OpenSea, the first thing you will need to do is connect a wallet such as Metamask. From there you can go straight into the area where you can choose to mint a stand-alone NFT or create a collection.

Creating an NFT Collection Page Image via OpenSea

A great feature here is that artists can add a category for the type of NFT or collection they are creating, whether it is art, trading cards, collectables, sports, or utility, and artists can add links for their collection to all of their social media handles as well to promote their art across all of their different social networks.

The creator of the NFT can also select their royalty fee up to 10%, this is the fee that the creator will earn every time the NFT is resold. The NFT creator can choose which digital assets can be accepted for paymentas well, and how many copies of the NFT can be allowed to exist, and even choose how many to release at one time. OpenSea should definitely be on the radar for anyone wanting to get involved in this space.

#2 Rarible

Another great place where a community of NFT enthusiasts meet up to buy, sell, and create NFTs is Rarible. If nothing you see on OpenSea is striking your fancy, then take a wander over to Rarible and see if that is a little more your style. Before you head over to Rarible, be sure to check out our Rarible deep dive review here.

Like OpenSea, Rarible is also powered by the Ethereum blockchain and works in a similar way. At the time of writing, Rarible does not offer gas-free minting or a cheaper alternative to Ethereum as the platforms OpenSea and Mintable do, so fees on Rarible can be a bit higher than their competitors, at least until the highly anticipated Ethereum 2.0 upgrade is rolled out.

The Rarible Marketplace Image via Rarible

Just like with OpenSea, to get started with Rarible, you will need to connect an Ethereum wallet such as Metamask to interact with the platform. When choosing to mint an NFT on Rarible, artists can choose if they want to create a single collectable or multiple, which is useful if a musician wants to create audio NFTs that multiple users can enjoy. With Rarible, users can choose to select a set price or allow buyers to bid on their product with the purchase going to the highest bidder. The creator of the NFT can also choose to have additional features or files unlocked once the NFT has been purchased if they want to include any add-ons or extra features. Artists can choose the percentage of royalty payments up to 30% that they want to receive each time the NFT is resold. All of these customizations are done on the minting page, which makes the whole process really straightforward and user friendly.

Creating an NFT using Rarible Image via Rarible

#3 SuperRare

SuperRare is the third most popular NFT platform in terms of the most active users, and also built on the Ethereum network similar to OpenSea and Rarible. The main difference with SuperRare is that it aims to be more like a social network for art creators and collectors, connecting like-minded individuals. This platform was created with the idea that collecting is a social activity, so collectors should be able to come together and collect in a social environment with one another. The way that this social atmosphere is able to exist is that, unlike the other platforms, SuperRare is not joinable by everyone. Anyone is able to purchase NFTs on SuperRare, but only artists who are invited by existing members can upload artwork on the platform. Once invited, artists need to fill out an application form with the requirement that all artwork created for SuperRare must be original, digital, and not available anywhere else on the internet.

SuperRare Market Place Image via SuperRare

As with all the other platforms, the first thing needed will be an Ethereum wallet to connect to the platform. Once this is done, all artists wanting to get involved in the SuperRare ecosystem will need to fill out the application form and be accepted by the community of Artists on the platform where they will be able to participate and become part of the community.

Creating an NFT on the SuperRare Platform Image via SuperRare

SuperRare supports artwork to be uploaded in the form of image files, audio files, video files, and 3-D file types, so there is something here for everyone.

#4 Foundation

Foundation is another NFT platform built on the Ethereum network that is unique in the sense that it facilitates live auctions for digital artwork. Instead of simply buying and selling NFTs at a set price. Foundation uses an auction process similar to what we see from leading auction sites such as Christies which is known for auctioning some of the worlds most prestigious collectable items. Similar to SuperRare, anyone can register to purchase art on Foundation, but any artists who want to create art for the auction process needs to be accepted into the Foundation community first. Artists can be invited by an existing community member who has successfully sold an NFT, and there is also a voting process that can be done by the Foundation community when considering new artists to bring in.

Artwork on Foundation Available for Bidding Image via Foundation

Once you have been accepted, as always, the first step is connecting your Ethereum Metamask wallet. Foundation provides a very straightforward, and easy process for artists to upload and mint their work. Similar to Rarible in terms of needing to pay Ethereum gas fees in order to go through the minting process, Foundation does not have the option to mint NFTs for free such as OpenSea and Mintable.

It is good to note that the buyer will pay a 15% fee on the acquisition of an NFT which gets paid to the Foundation marketplace for facilitating the sale which is considerably higher than the 2.5% fee charged on the sale of NFTs by both Rarible and OpenSea. Foundation also supports image, audio, video and 3-D rendered files for the upload and minting process.

#5 Binance and FTX

It isn’t just these community-driven platforms available for buying, selling, and creating NFTs either. Major exchanges such as FTX and Binance are getting involved in a big way. They saw the potential behind this digital revolution and didn’t want to be left out, sat on the sidelines so the fifth mention for places to mint NFTs is going to go to both Binance and FTX.

The great thing about being able to mint your NFTs on an exchange is that chances are that you probably already have an account made to do your crypto buying and selling, so this is one less step to take by not having to register for a third party NFT website. Another advantage here is that you don’t need to transfer Ethereum to a wallet like Metamask, you can purchase the funds needed to mint and transact directly from the exchange and use those for the minting, buying, and selling process, saving money on gas fees. Binance and FTX both offer an NFT marketplace where users can go and shop their little hearts out on all things digital art related. Binance has combined both the bid style of NFT purchasing similar to Foundation, as well as the option to just purchase art for a set price.

Binance General Marketplace for buying NFTs at a set Price Image via Binance NFT Marketplace

FTX also has a simple to use interface where users can shop for and bid on their favourite NFTs. The FTX and Binance NFT marketplaces are very similar to one another in terms of functionality, so it really comes down to users using whichever marketplace is owned by their preferred exchange, and which marketplace has the more exciting collection of NFTs.

FTX Marketplace for NFTs Image via FTX

When it comes to minting on these platforms, both Binance and FTX have made it so easy that anyone can do it. One of the advantages to minting NFTs on Binance is that the NFT marketplace is built on the Binance Smart Chain so users are able to avoid those pesky Ethereum Gas fees and mint their NFTs for a much lower cost. Fees for minting on the Binance Smart Chain (BSC) network will need to be paid in BNB, so make sure that you are holding some BNB in your Binance account before attempting to create your NFTs. The Binance NFT marketplace supports image, video, or audio files so they have the bases for media types covered.

Simply choose the name for the NFT and a description, pay the fee in BNB, and you are good to choose if you want to list the NFT and sell it for the highest bid, or a set price. NFT sellers can also choose to accept payments in Ethereum, BUSD, or BNB, with 1% of all sales go to Binance which is much lower than many of the other available platforms mentioned here, though a potential downside here is that the royalty fee for the creator is also fixed at 1% for any resales which is lower than the other platforms mentioned. It is also good to note that all NFT listings will need to be approved by the Binance NFT team before they are publicly listed.

Creating an NFT in the Binance Marketplace Image via Binance NFT Marketplace

Minting NFTs on FTX works in quite a similar manner to Binance, with the fees being the biggest difference. Once you already have your account at FTX setup, you can navigate to the NFT section and choose to mint/list your NFTs. Creators will need to choose a name for their NFT, whether or not they want it to be part of a collection or stand-alone, how many copies to mint, and if they want to include any additional attributes. Sellers can also choose a set price, or if they want it to go to the highest bidder. Fees for creating NFTs on FTX costs $10 dollars which is paid in USD. This fee can be charged from the user’s fiat or stablecoin account balances. Once the NFT is approved by the FTX team, the NFT will be available for sale on the FTX marketplace. As far as fees are concerned, FTX makes it straightforward with fixed fees with no surprise Ethereum gas fees which can often blindside users of the Eth network. FTX charges a 5% fee to both the buyer and seller when an NFT transaction is completed.

Creating an NFT on the FTX Exchange. Image via FTX

Conclusion

That is about it for the top 5, well actually, top 6 places to mint NFTs as I threw in a cheeky two for one for you guys as I couldn’t decide which was better between Binance and FTX as they are both similarly fantastic options for minting NFTs. While many crypto and DeFi enthusiasts will prefer the more community-driven options such as OpenSea and Rarible, as many feel that centralized exchanges like Binance and FTX are the enemy, almost as bad as those big banks, but like almost everything in the crypto space, convenience comes at the cost of using centralized platforms, so it really comes down to user preference at the end of the day.

The world is so new to the NFT space as well, and new developments are happening quicker than I can finish a cup of coffee, so while most of the top NFT marketplaces currently run on the Ethereum network, I expect some of these top platforms to either adopt, or get bumped in the near future to make way for new contenders as we see really exciting NFT developments rising fast in the Cardano, Solana, Avalanche and even Tezos ecosystems, quickly catching up and becoming fast movers in the NFT space.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Mint NFTs: Top 5 Platforms to Create and PROFIT! appeared first on Coin Bureau.

Top 10 Most Expensive Things Bought with Bitcoin

Mike Jenkins — Wed, 17 Feb 2021 00:56:45 +0000

A few truths are self-evident. We want to see crypto become the payment method of choice across the world. We want it to replace those dirty fiat currencies that are rigged to serve the interests of governments, central banks and all the other arms of traditional finance. We want global currencies that disregard international borders and regulations. We want a fairer system of buying and selling.

This is starting to happen. Crypto adoption is growing by the day and the options for where and how you spend your sats are increasing all the time. Every purchase made with crypto is worth celebrating as another small step towards a better way of doing things. Yes, it’s great to hear about all those companies accepting crypto. Every new crypto project aiming at mass adoption is a step in the right direction..

Show me the Crypto. Image via Shutterstock

But let’s be honest with ourselves here for just a moment. Amidst all the talk of buying the morning coffee with BTC or tipping our favourite content creators with BAT, don’t we all get a thrill from hearing about those more exciting crypto buys? Those times where some big-time hodler goes nuts and starts chucking bitcoins around like there’s a bear market just around the corner?

Of course we do. We love it because it gives us a glimpse of what we might be tempted to do when our nest-egg altcoin goes to the moon. Perhaps we allow ourselves a wry smile as we imagine how we’d spend it with way more style. Or perhaps we just take pleasure in someone else’s stupidity.

Some people just don’t know how to spend it. Image via Neon Ambition

Here at the Coin Bureau, we’re no different. We worship at the altar of mass adoption and we preach its gospel, but we have outlandish, absurd fantasies too. It’s a popular topic of conversation amongst the team here and there are both predictable and surprising items on people’s shopping lists.

When the question ‘what would you buy if you suddenly found you had 10,000 BTC?’ pops up, a fair few opt for penthouses and Lambos, while others have more esoteric desires. A racehorse. A pub. An antique desk. 829,098,024 XRP (only kidding).

Big dreams, most of which won’t come true. But for some of those crypto investors who got in early, they did. So, here for your enjoyment is a list of the biggest crypto purchases we could find. Some you may be familiar with, others less so. We’ve also decided to rank them in crypto terms alone, rather than in current fiat prices which we all know to fluctuate pretty wildly. Whether they raise a smile or make you green with envy, just remember: you would definitely have spent it better.

1. Condo in Trump SoHo: 25,500 BTC

It’s ironic that, as someone who is ‘not a fan’ of bitcoin, former president Donald Trump should see his name attached to the biggest-ever confirmed crypto buy. Although he had nothing to do with the 2013 transaction, it was for a one-bedroom, 741 sq. ft. apartment in his New York City hotel. That’s what happens when you insist on putting your name above the door.

The Trump Hotel in SoHo. Image via The Boston Globe

Back in 2013, the 25,500 BTC asking price saw the condo valued at around $2 million when it was sold to an anonymous buyer. The big winner of course was the seller, who apparently refused to accept any other form of payment for the property.

With BTC sitting at a shade under $49,000 at the time of writing, that makes those 25,500 bitcoins now worth $1,247,791,500 – enough to buy the entire building twice over and still have enough left over to fill the swimming pool with vintage Champagne.

The condo predictably came with luxuries like 24-hour concierge and room service, as well as access to the building’s pool and roof terrace. Not to mention some pretty spectacular views. The hotel itself was renamed as The Dominick after Trump’s 2016 presidential campaign and subsequent years in office damaged his brand in the famously liberal city.

Only one bedroom, but it sure is a good one. Image via Daily Mail

The buyer’s identity remains a mystery, but perhaps one of the New York-based Winklevoss twins snapped it up? Their $65 million pay-out from Facebook and subsequent pivot to bitcoin certainly make them possible suspects. Just don’t mention it if you’re ever down at Mar-a-Lago.

2. Two Pizzas: 10,000 BTC

Ok, so we’ve all heard this story, but it’s worth repeating here. Back on 22 May 2010, when bitcoin was less than two years old, a computer programmer by the name of Laszlo Hanyecz was feeling peckish and wanted a couple of pizzas. As one of the earliest adopters of bitcoin (he claims to have exchanged messages with Satoshi Nakamoto), Hanyecz has the honour of being the first person to conduct a commercial transaction using BTC.

Two Papa John’s pizzas. Definitely not worth 10,000 BTC. Image via Tripadvisor

Back in those heady days, one BTC would set you back the princely sum of $0.003, while the two pizzas cost $30. Funnily enough, Papa John’s weren’t accepting BTC payments back then and so Laszlo used the bitcointalk forum to find another user to help him with the process. On it he wrote:

‘I like having left over pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself…’

A British man answered the call and placed the order on Laszlo’s behalf, in return for the 10,000 BTC. The pizzas duly arrived and well, let’s hope they hit the spot.

Laszlo Hanyecz: the bitcoin pizza guy. Don’t let him order next time. Image via CBS

Once again, a bit of simple maths tells us that, at today’s prices, those 10,000 BTC are collectively worth a shade under half a billion dollars – or 32,681,333 $15 dollar pizzas. No one likes pizza that much.

Happily, Laszlo himself is philosophical about the incident and reportedly has no regrets. As someone who recognised bitcoin’s potential before almost anyone else, he fully supports its wider adoption as a means of payment rather than just a store of value.

As the man at the centre of perhaps the most famous pizza order in history, he also has the satisfaction of seeing it commemorated every year on bitcoin pizza day. Who knows, perhaps in due course this day will become the crypto equivalent of 4^th of July or Thanksgiving.

We’d just love to know who that British guy was and what became of that 10,000 BTC.

3. Land: 2,739 BTC

Land, so they say, is almost always a good investment and back in 2014 one unnamed Silicon Valley entrepreneur thought so too. The shadowy figure shelled out what was then the equivalent of $1.6 million for a 1.4-acre plot of land in California near Lake Tahoe. According to the Wall Street Journal, the buyer intended to build a home on the site, which is located in the midst of a luxurious 2,177-acre resort.

Land near Lake Tahoe. A good investment at the right price. Image via Wall Street Journal

The buyer’s identity remained a mystery until just a few days ago, when it was revealed that Chamath Palihapitiya, boss of Social Capital was the man behind the bitcoins. Palihapitiya seems to regard the purchase as a poor investment. Bitcoin was worth slightly less than $600 when he bought the land and at today’s prices, he could buy a heck of a lot more than just 1.4 acres. His laconic assessment of the whole business on Twitter sums it up nicely. #FML indeed.

4. Toyota Prius: 1000 BTC

‘When Lambo?’ is a common crypto meme, but in terms of the most expensive car ever bought with crypto it’s actually a case of ‘when Prius?’ No, it doesn’t have quite the same ring, does it? Bitcoin OGs have been spending their sats on cars for a while now and there a few notable examples further down our list. But in pure BTC terms, a humble Toyota Prius takes the top spot for the most expensive crypto car yet.

It was bought back in 2013 by investor Michael Tozoni, who parted with 1,000 BTC for the second-hand car. BTC was around $22 back then, though just a few months later it had gone past $1,000 for the first time. If this makes Tozoni look a little hasty, then it’s worth pointing out that he had moved all of his savings into BTC by this time, as he believed wholeheartedly in the currency’s potential.

The bitcoin Toyota Prius. Don’t want to think what the insurance must cost. Image via The Drive

Tozoni is sanguine these days about his purchase, calling it ‘a very good lesson about being careful with your investments.’ Amen.

5. Miami Mansion: 455 BTC

It says a lot about the crazy ride crypto has been on over the last few years that a swanky seven-bedroom house was bought back in 2018 for the equivalent of maybe one slice of Laszlo Hanyecz’s pizza. By this time, of course, the 2017 bull market had come and gone and BTC had seen highs undreamt of back when Laszlo placed his order.

The Komaransky mansion in Miami. Image via Mansion Global

The house itself was sold by bitcoin trader Michael Komaransky who stated in the terms of sale that he would accept $6 million dollars for the property or its equivalent in BTC. His hope was that the deal would be sealed without the use of fiat, saying at the time that bitcoin ‘is digital currency that no one controls, and it’s a very, very liberating currency. And there’s not much use to a currency if you can’t spend it somewhere.’

A like-minded individual duly took Komaransky up on the deal and the transaction was conducted solely in BTC, being paid out in a series of instalments.

Komaransky may have been inspired by a story which appeared at the height of the 2017 bull market in which a £17 million house in London’s Notting Hill was put up for sale by the property investment company which owned it. The sellers made headlines by stating they would only accept BTC for the sale.

At the time this would have worked out to around 5,050 BTC, far more than Komaransky would earn from his sale. Sadly, we were unable to find out whether the Notting Hill property had sold or not. Perhaps wannabe Notting Hill residents were waiting for the BTC price to get nearer $50,000…

Inside the Notting Hill house being sold for bitcoin. Image via Evening Standard

These two instances, along with the sale of the condo in NYC all point to a potential long-term trend for BTC as a means of buying property. With the bitcoin network labouring under slow transaction speeds, the use of BTC for micropayments looks unlikely any time soon. However, for larger, less time-sensitive purchases, BTC looks likely to be used more and more.

If an agreement is reached between parties then BTC can be transferred in stages from seller to buyer, with all transactions immutably recorded on the network. Many, including those involved with the attempted sale of the house in Notting Hill, believe that bitcoin offers an opportunity to break away from the traditional system of buying and selling property.

With many millennials holding much of their capital in crypto, this may soon come to pass. If you’re looking to splurge some of those mad gains on bricks and mortar then check out the bitcoin real estate website to see what’s up for grabs.

6. Tickets to Space: 450 BTC

Virgin Galactic seems to have suffered setback after setback, but when it does eventually start flying there’ll be a pretty stellar (sorry) list of passengers. The likes of Brad Pitt, Justin Bieber and Lady Gaga are all reputed to have paid around $250,000 for a ticket aboard Richard Branson’s spaceflight, which may or may not finally have lift off this year.

Virgin Galactic: don’t hold your breath. Image via NBC News

Two passengers who may feel entitled to a first-class upgrade are those ubiquitous Winklevoss twins, who reportedly paid around 450 BTC each to reserve their seats back in 2014. At the time of writing, bitcoin has just pushed past $50,000 for the first time, meaning the Winklevii’s booking is now worth $22.5 million – a mere 90x over the odds. Better make the most of that drinks trolley boys.

7. Lamborghini Gallardo: 216 BTC

Finally, someone willing to live the crypto dream and spend their gains on a ridiculously expensive supercar. This particular purchase was again made in 2013, the annus mirabilis of crypto car purchases, with the equivalent of $209,995 in BTC being spent.

A car that launched a thousand memes. Image via Amalgam Collection

The car was sold by Lamborghini Newport Beach, a California dealership that has led the way in accepting BTC as payment for their shiny, ultra-fast motors. The buyer was allegedly a 4chaan user who later bragged about the purchase on the site. Let’s hope the dealership hodled those bitcoins, as they’re now worth nearly $11 million.

8. Tesla Model S: 91.4 BTC

In the wake of the recent news that Elon Musk has invested $1.5 billion of Tesla’s holdings into bitcoin, it’s fitting to see that a Tesla Model S making the list of most expensive crypto purchases. This deal also took place back in 2013, before the bull market of 2017 supercharged the sector and once again involved the good people at Lamborghini Newport Beach.

The Tesla Model S. Image via Nature Speaks

In this instance, which took place barely a week before the Lamborghini purchase at number seven on this list, an unnamed buyer used BitPay to transfer the bitcoins to the dealership, before taking collection of the car. Speaking to the Los Angeles Times, the general sales manager at Lamborghini Newport Beach said,

It was a little odd… I didn’t know much about bitcoin, but I never want to turn away business or tell a customer ‘no’ until I’m sure that I can’t do what the customer is asking me for.

Just the sort of salesmanship we crypto fanatics like to see.

9. Private Charter Flight: 55 BTC

There’ll no doubt be a few crypto whales eyeing up private jets for the time when they’ve taken some profit and we’re all allowed to travel again. However, having your own plane is an eye-wateringly expensive business and won’t do much for your green credentials either. A much cheaper option (and one that avoids having to travel with the rest of us) is to charter a private jet as and when you need it.

The Coin Bureau private jet awaits its passengers. If only. Image via Conde Nast Traveller

The first-ever charter flight paid for with bitcoin was laid on by PrivateFly and carried Bitcoin Foundation member Olivier Janssens from Brussels to Nice Cote D’Azur. Janssens was effusive in his praise for the trip, saying:

The flight was the biggest bitcoin payment transaction I have made, but it was very easy and efficient, particularly as I wanted to fly at very short notice. It was the perfect way to pay. I’m working on several bitcoin business projects and very excited about its future potential.

He perhaps didn’t see that future potential as being a BTC price of $50,000. Those 55 BTC are now worth $2.75 million dollars, which would buy Mr Janssens and probably most of his family tickets aboard Virgin Galactic – which should be a more exciting flight than the short hop across France.

10. Decentraland LAND: 1,000 ETH

It’s not just bitcoin being used to make big crypto purchases. Ether is also proving a popular medium of exchange, especially in the world of blockchain games and digital collectables. The current insane gas fees and network bloat may put the skids on this for the time being, but it’s still going to take a lot to unseat Ethereum as bitcoin’s number one rival.

High-resolution goings-on in Decentraland. Image via Medium

Decentraland is a popular blockchain-based game in which players buy up parcels of digital LAND, each represented by its own non-fungible token (NFT). To buy LAND they can use MANA, the game’s native ERC-20 token. These parcels of LAND can then be developed, customised and even monetised by those willing to expend time, energy and crypto on playing the game. As in the real world, some locations are highly sought-after, while others are available for more reasonable prices.

Back in 2018, one gamer – who probably should try and get out more – parted with 2.8 million MANA tokens to buy some premium LAND. That’s equivalent to around 1,000 ETH, or $215,000 at the time. With ETH now sitting at around $1,700, that’s around $1.7 million today. Let’s hope they haven’t got bored of the game yet.

What Next for Crypto Purchases?

It’s no coincidence that the majority of these big buys happened back before crypto took off in 2016/7. Bitcoin’s value has now climbed so high that the idea of shelling out BTC even for big-ticket purchases is not at the forefront of most hodler’s minds. There are a few too many cautionary tales like the ones above to put people off the idea of chucking BTC around with such abandon.

Keeping your Crypto Safe. Image via Shutterstock

Then of course there are almost certainly some big transactions that have gone unreported. It may be tempting to boast of having bought a yacht or a villa with crypto, but it does make you something of a target. Crypto millionaires may be less susceptible to a $5 wrench attack than the rest of us, but that doesn’t mean they want to go around asking for trouble all the same.

Perhaps once the markets settle down and those crazy gains fall back a bit we’ll find out what the crypto elite have been splashing their sats on.

It may well be that the future of crypto payments lies more with altcoins and stablecoins than with bitcoin. We’re much more likely to hear about high-end items being bought with the likes of USDC than we are to see large chunks of BTC or ETH changing hands. In any case, what crypto needs now is people to use it on a daily basis for everyday goods and services. That is the way to mass adoption and not the uber-rich buying themselves fancy cars and trips into space.

That said, if someone wants to give me 50 BTC for my old Honda Jazz, then do get in touch.

Featured Image via Shutterstock

The post Top 10 Most Expensive Things Bought with Bitcoin appeared first on Coin Bureau.

Crypto.com (MCO) Review: The Crypto Powered Visa Card

Steve Walters — Wed, 29 Apr 2020 00:40:15 +0000

The domain crypto.com was registered all the way back in 1993 by Matt Blaze, a well known cryptographer.

As you might imagine, he has been fielding quite a few offers for that domain since cryptocurrencies took off, but had repeatedly said the domain wasn’t for sale.

That is until Monaco approached him and he decided to sell them the crypto.com domain!

They took this purchase and used it to rebrand themselves to Crypto.com, with a new stated goal of accelerating “the world’s transition to cryptocurrency”.

Along with the rebrand the cryptocurrency products have been put under the MCO umbrella to align with the name of the cryptocurrency. So far that includes the MCO token, the MCO wallet app, the MCO Visa Card, the MCO Crypto Invest service, Crypto Earn and most recently an exchange powered by the Crypto.com coin (CRO).

This article will go over the features now available from Crypto.com and highlight some of the upcoming features that are yet to be released. For extensive details you can read the MCO Whitepaper 2.0

Crypto.com MCO Platform Overview

Crypto.com is building the services on the MCO platform to solve the accessibility and usability challenges faced by the broader blockchain industry. One of the most anticipated of these products is the MCO Visa Card.

The MCO Visa Card is the return of Crypto.com’s plan to link a Visa card with cryptocurrency accounts, allowing users to easily spend their cryptocurrency on everyday purchases, wherever Visa is accepted.

The MCO visa cards and mobile app. Source: crypto.com

In addition to the MCO Visa card, the Crypto.com rebrand has become the home for a number of MCO products and services. Already included is the MCO wallet app and the MCO token. And the most recent addition is Crypto Invest, which will allow for easy crypto investments.

Planned products include Crypto Credit, which will give users a credit line based on MCO tokens held as collateral, and MCO Private which will offer specialized products and services for high net-worth individuals.

The MCO Visa Card

The portfolio of MCO Visa Cards offered by Crypto.com range from the top of the line Obsidian Black, which requires a 50,000 MCO stake, to the baseline Midnight Blue, which has no staking requirement. Each level comes with additional perks, which can be seen in detail here.

By pairing the MCO Visa Card with the MCO wallet users can spend their cryptocurrency seamlessly at the over 40 million retailers globally who accept Visa.

And the list of benefits for card holders rivals that of any of the best Visa rewards cards. Users can enjoy use of a Visa card with no annual fees, get free shipping, receive up to 5% cashback on purchases, and select cards get unlimited airport lounge access. Also included are memberships for Spotify, Netflix, and Amazon Prime, as well as a 10% discount on Expedia and AirBnB purchases.

Users also have the ability to spend overseas and receive interbank exchange rates. And with the Platinum Referral Reward Program it’s possible for users to receive up to $10,000 sign-on bonus!

Since the MCO Visa card was one of the cornerstone’s of Crypto.com since its inception, the MCO Visa card program is already well known. Over two years in the making, Crypto.com has had time to refine and perfect its offering, giving its users the best possible Visa debit card. And soon they will offer a low-rate credit service on the card as well.

Cards have been shipping to customers in Singapore since the fourth quarter of 2018. In July 2019 the first cards also began shipping to customers in the U.S., and most recently as of March 2020 cards are beginning to ship to customers in the United Kingdom, with the rest of Europe expected to soon begin receiving cards as well.

With the initial tier card coming free of charge anyone living in areas where the card is already shipping can get started with an MCO Visa card. Benefits are improved with each higher tier, but since the MCO token is now valued over $5 (as of April 2020) it can be a bit pricey to get to the Rose Gold and Icy White tiers (5,000 MCO), not to mention the top Obsidian Black tier (50,000 MCO).

This means the Obsidian Black requires over $250k in MCO tokens, the next level Icy White/Rose Gold MCO Visa Card requires $25,000, while a Ruby Steel card with 2% cashback requires a stake of just 50 MCO, valued at $250. In between these tiers are the Jade Green and Royal Indigo cards, which require 500 MCO staked and come with 3% cashback as well as some other benefits like Spotify and Netflix subscriptions.

MCO Private

The MCO Private feature was highly anticipated and was finally launched in March 2020, It is a service that is tailored to the needs of the MCO Visa Obsidian Black and Icy White/Rose Gold cardholders. The specialized services and accesses are meant to meet the needs of high net-worth cryptocurrency holders.

Benefits for Crypto.com Private Members

There is an MCO concierge service available to MCO Private clients, as well as invitations and access to exclusive blockchain industry events. Customers will also receive advice on digital asset custody services, competitive investment opportunities, assistance with over-the-counter transactions, and dedicated customer support.

In addition to those benefits all members in the MCO Private receive an added 2% bonus interest for coins held in the Crypto Earn program. Holders of these cards also receive free Amazon Prime memberships, and enhanced credit limits (up to $2 million for Obsidian Black card holders). Obsidian Black card holders can also take advantage of the Private Jet Service. All MCO Private members will receive a special welcome pack of Crypto.com branded merchandise.

MCO Wallet App

The MCO wallet has been well received, with a 3.8 rating on the Apple App Store and a 4.3 rating on the Google Play store. One of the great features is the ability to buy tokens right from the wallet, using a linked credit or debit card and even via bank transfer. The wallet now offers purchases of over 50 different cryptocurrencies at true cost, with no added fees, commissions, spreads, or mark-ups.

Screenshots of the Crypto.com Mobile App. Image Source: Apple Store

It also has support for seven fiat currencies, including USD, JPY and EUR. You can even exchange between fiat currencies at real-time interbank rates, saving you up to 8% versus rates at high street banks. And wallet users can access the Crypto Earn program to earn interest of up to 8% per annum on a number of cryptocurrencies, and up to 12% per annum on a number of stablecoins.

If you’re looking to avoid transfer fees the MCO wallet can do that too. Send crypto and fiat directly to other Crypto.com wallet users instantly with no fees.

The MCO wallet also rewards you for sharing with your friends. You can get 10-25% referral commission on every purchase made by someone who downloads the wallet from you unique referral code. And you can get sign-up bonuses as large as $10,000.

Finally, traders and investors will be thrilled with the ability to track more than 200 different cryptocurrencies. Charts are available versus the USD or versus BTC and give data for price, volume, percent change and much more. This feature meshes well with the newly launched Crypto Invest service.

MCO Crypto Invest

Early in October Crypto.com launched a new service for MCO Private customers called Crypto Invest. It’s a cryptocurrency portfolio and trading tool that simplifies investing and trading in cryptocurrencies. Users can create their own customized portfolios and trade automatically based on market signals.

User interface of the Crypto Invest function in Mobile App

Unlike other products, Crypto Invest isn’t only a basket of cryptocurrencies. Instead it is a set of trading strategies that will perform in any market. And it’s great for those just beginning their crypto investment portfolio, since users are spared the need to do detailed research into the huge universe of available cryptocurrencies. Instead they can make one investment into the Crypto Invest product and allow Crypto.com to handle the details.

According to Kris Marszalek, the co-founder and CEO of Crypto.com:

We’ve worked on Crypto Invest for over a year, including three months in a closed beta. During that time, a plethora of crypto investment products launched in the marketplace, all of them designed as currency baskets or crypto indexes. These efforts are destined to fail in a bear market.

How does Crypto Invest Work?

It’s pretty well known that the prices of all of the altcoins in the market are highly correlated to Bitcoin, and this has made diversification strategies difficult to conceive and ineffective in practice. Something more is needed to reduce market risk in cryptocurrencies.

Crypto Invest tries to fix this by using advanced quant trading strategies that have been designed to perform well in any market. And there is no fee for using Crypto Invest unless profits are made. That means no entry fee, exit fee, rebalancing or fee for assets under management. Crypto.com takes just 9% of profits for those with MCO tokens staked, or 18% of profits otherwise.

Crypto Invest comes with the following features and functionality:

Crypto Invest Portfolios

These are basic portfolios that give users access to as many as 30 different cryptocurrencies. The portfolios are tailored to risk appetite as follows:

Growth: higher growth, higher risk
Balanced: moderate growth, moderate risk
Conservative: reduced growth, minimal risk

Crypto Invest Trading Strategies

The trading strategies included with Crypto Invest are not short term day trading or scalping strategies. Instead they were developed as mid-to-long term strategies for use on a scale of days to weeks. Currently there are three strategies in use to manage portfolios:

Automated Trading: Hands off set of strategies that capture market movements based on market sentiment.
Market Following: An equal representation of the top assets in the market.
Stable: Stablecoin positions used to decrease risk and provide risk management.

Additional Crypto Invest Features

Easy to Start: Low minimum USD$20 investment
Easy to Leave: No exit fees or penalties
Fair Fees: No fees are collected unless you make a profit. What could be more fair?
MCO Utility: Customers that stake MCO tokens can receive a 50% discount on all fees chared by Crypto Invest.

Note: Due to regulatory requirements, Crypto Invest is not currently available in the United States of America, Hong Kong, and Singapore.

Crypto.com Exchange

After accumulating well over 1 million users in its four years of existence it isn’t surprising that Crypto.com took another step forward by launching an exchange. The exchange went live in November 2019 and is another way that Crypto.com will realize their vision of putting “cryptocurrency in every wallet.”

And with the huge user base at launch the exchange can already provide excellent liquidity, as well as world-class security. Finally, users get an easy to use interface and fees that can be as low as $0 when enough CRO tokens are staked.

Crypto.com Exchange User Interface

Crypto.com already provides its users with a host of useful features, such as the Crypto debit card and the Crypto Invest and Crypto Earn platforms. Plus they are a trusted brand, which will help in gaining and retaining new customers.

The Crypto.com exchange comes with basic fees of just 0.008% for makers and 0.02% for takers, and these fees can be reduced by staking CRO tokens. The platform offers users deep global liquidity through the proprietary Vortex Liquidity Engine.

Finally, users can feel secure thanks to the institutional grade security and custody systems implemented at the Crypto.com exchange. This includes ISO Certification 27001:2013, level 1 PCI DSS and CCSS (Level 3) Ledger Vault enforcement and collaboration

The exchange already has 35 market pairs listed, and plans on continuing to add more in the coming months. One benefit to users who stake enough CRO at the exchange is access to The Syndicate, where new coins are debuted and sold at a discount to users with access.

The Syndicate

The Syndicate is where users who stake their CRO at the exchange are able to purchase other cryptocurrencies at a discount. A minimum of 10,000 CRO must be staked in order to participate in The Syndicate, which has been operating since January 2020. There have been sales in which Syndicate members could purchase BTC and ETH at a 25% discount, and others for LINK, BCH, and XTZ where the price was discounted by 50%.

Example of the Recent Vechain syndicate at Crypto.com

Once coins have gone through a Syndicate event they are then listed on the exchange for trading. They may also be involved in trading battles in the Trading Arena, with various bonuses for traders who rack up the largest trading volumes. There are also lucky draw events, and those holding CRO can increase their chances of winning. Staking CRO in The Syndicate also provides returns of up to 20% per annum.

Crypto.com Soft Staking

Crypto.com is also making their exchange more attractive to traders by introducing “Soft Staking”, which provides rewards of up to 5% per annum on 14 different cryptocurrencies (BTC, BCH, ETH, USDT, USDC, XRP, LINK, LTC, EOS, XLM, ATOM, XTZ, MCO, and CRO) when held at the Crypto.com exchange.

Soft Staking Benefits & Rates of Return. Source: Crypto.com

There is no lockup period and users are rewarded on a daily basis, without any extra steps on their own part. If these 11 coins are held in a wallet the users gets the staking reward. This even includes coins that might be part of a pending o

MCO Credit Services

Another feature that is in the works is the MCO Credit Services. This will be a revolutionary product that allows you to get the credit you need and deserve by staking MCO tokens. So, if you stake $10,000 worth of MCO tokens you can get a credit line of $6,000.

Benefits of Crypto.com’s Credit Services

But unlike traditional credit cards there are no statements and no minimum payments. You pay the credit advances off as you like. If you can’t, or don’t wish to pay your MCO tokens can be used to pay off the debt.

MCO Token

The utility token that is powering the Crypto.com ecosystem is the ERC20 MCO token. This was issued in an ICO crowd-sale that the team held back in June of 2017. They raised $26 million in exchange for the first issue of the MCO tokens.

MCO will be used in the ecosystem in order to earn rewards on purchases and staking, and to pay for referrals. MCO has followed the rest of the market and peaked back in August of 2017. Since then they have followed the rest of the market as 2018 entered bear territory and by December 2018 the token hit a low of $1.66

Since that time the token has rebounded, reaching above $5 in 2019, retreating somewhat, but then trading back around the $5 level in 2020. MCO can be purchased and traded on a number of global exchanges currently including Binance, Bit-Z and the Bittrex Exchange.

CRO Token

The CRO token was created in 2018 as the native currency of the Crypto.com chain. That chain was created as a highly scalable blockchain capable of extremely fast payment processing.

The CRO token is an intermediary token that is meant to allow users to make cryptocurrency payments to as many global merchants as possible. The developers expect to accomplish this by using CRO to allow for the conversion of cryptocurrencies to fiat at reduced cost.

The token made headlines in March 2019 when its priced spiked higher by 360% in just over a week. It continued to exhibit volatility throughout the second and third quarter of 2019 before finally declining back below the $0.03 level.

CRO Price Performance. Image via CMC

The beginning of 2020 saw the coin rally again, rising nearly 100% from the start of the year to mid-February. That was followed by sharp losses in response to the spreading coronavirus pandemic, but by April 2020 the token was up roughly 65% off its March lows as it traded above $0.055.

One benefit to holding CRO tokens is the ability to stake them and earn rewards. Those who are able and willing to stake 500,000 CRO for a six month period can earn up to 18% per annum by running a Council Node on the Crypto.com chain. Those who can’t afford such a large stake can still earn up to 5% per annum through the new soft staking introduced on the Crypto.com Exchange in March 2020.

Conclusion

It seems as if the Crypto.com re-brand means a lot more than just a name change for Monaco. The company is actively delivering their MCO Visa Cards and has introduced a number of other initiatives such as the Crypto Invest and Crypto Earn products.

The upcoming MCO credit services sound very interesting as well, as does MCO Prime services for high net-worth cryptocurrency users.

With nearly four years in business, Crypto.com is making a huge splash in the cryptocurrency world. With cards now being delivered in Singapore, the U.S. and the U.K.. and soon landing in Europe as well, the Crypto.com brand could be poised to explode in 2020.

Featured Image via Fotolia

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Crypto.com (MCO) Review: The Crypto Powered Visa Card appeared first on Coin Bureau.

Kindhumans Ethical Store Accepts Crypto: Why This Matters

Tom Alford — Wed, 04 Dec 2019 20:05:22 +0000

When mass adoption? That’s the question on the minds of so many crypto fans. The short answer is that nobody knows ‘if’ or ‘when’ cryptocurrencies will be adopted by huge swathes of the general population.

What we do know is that although the 2017 bull market raised significant awareness about cryptocurrencies, the general adoption rates are still phenomenally low. The key question is why? The truth is that crypto still has a bit of a reputation problem.

We are sure many of you have experienced this yourself after telling family and friends that you have made that first Bitcoin purchase.

How many of you had an off-the-cuff comment about Bitcoin being the currency of criminals? We bet almost everyone reading this has had that experience at some point.

Severing Link Between Crypto & Criminality

Yes, these attitudes to crypto can be annoying but they tell us something very important when it comes to growing the wider adoption of cryptocurrencies.

Namely, that crypto needs to break that association with criminality, which is still a hangover from the Silk Road incident way back in 2014.

Sadly, severing that link is no easy feat with news articles from the mainstream seemingly taking every opportunity to sensationalize cryptos links to crime.

Yes, it’s true that shady people use crypto for illicit purposes. However, what these article writers seem to be unaware of is that regular currencies like the USD are most used forms of money in the criminal underworld.

Is crypto really a hackers choice? Image via Fotolia

Also, how many ‘smart’ criminals really want to have their dodgy transactions stored immutably on a public blockchain for all to see?

Indeed, crypto seems an increasingly bad option for criminals when you consider that crypto-to-fiat on and off ramps require users to send in copies of their passport to execute trades or withdrawals. A bag full of $100 bills seems a much better way to obscure shady transactions, doesn’t it?

We cannot blame the general public for thinking that crypto is full of digital highwaymen up to no good. It’s a narrative they are constantly fed by the mainstream media and these are the types of people we need to embrace crypto for mass adoption to occur.

Now that’s a massive hurdle for crypto to overcome. However, one way of tackling it and changing opinion is a steady stream of articles highlighting the innovation and good things that are happening in the blockchain space.

Yes, there are many technical articles about the amazing innovations happening in the space. But does the average Joe really understand this? We think not.

Maybe the easiest way to plant the idea that ‘crypto is not so bad’ is to show people the progressive ethical companies embracing cryptocurrency as a method of payment and being able to tell people about the phenomenal amounts of crypto that was used to support these ethical businesses.

If the crypto community can pull together and make this happen, then maybe more people will change their tune when it comes to crypto and that could very well kick start the next wave of adoption.

What Is Kindhumans?

Kindhumans is a new online store and education movement dedicated to making it easy for thoughtful consumers to buy the top eco-innovative, sustainability-focused products.

The store only lists brands that share the values of caring about the environment and making the world a kinder place. In short, Kindhumans aspires to be the home of eco-friendly products.

Some of the items in Kindhumans Store

Co-founder Justin Wilkenfeld explains the vision of Kindhumans:

We want to help streamline the efforts for conscious consumers to more easily identify, find and purchase quality products that are good for people and good for the planet.

Another key component of the initiative is education and inspiring people from around the world to see the value in ethically and responsibly sourced products. This includes raising awareness about product supply chains, the materials used and of course ensuring that consumers end up with great products. If that sounds interesting to you, then why not join the movement on Instagram or Facebook?

In the spirit of kindness, giving and making a difference, Kindhumans has also pledged to donate 1% of all Kindhumans store sales to support social and environmental causes

Why Buy Ethically Sourced Products?

We’d like to think that the vast majority of people are good and care about the environment and our fellow humans. However, we do live increasingly busy lives and it’s hard to know the story behind behind the products we buy.

We are sure all of you own a smartphone and have not given the supply chain of that product much thought. The truth is that phone you have in your pocket has a story and a very complex supply chain.

Only Ethically Sourced. Image via YouTube

It will include a material called coltan, of which 60% of the world’s supply comes from the Democratic Republic of the Congo, with much of it mined by child labourers controlled by local strongmen or sourced from conflict zones.

Amnesty International have published reports in the past raising the concerns about Apple’s and Samsungs over-reliance on child labour in the DRC.

Now most of us are probably not okay with buying a product built with child slave labour and would rather support a company that has an ethically responsible supply chain. That’s why Kindhumans spend a lot of time reviewing products before they are listed in the Kindhumans store to ensure that they are:

Made by brands of high integrity and support transparency
Are cruelty-free
Support communities
Share the vision of environmental sustainability
Refuse to use non-ethical materials
Have a mission of making the world a better place

The Kindhumans vetting process considers everything from where the products come from, the different elements of the supply chain, the methods used to create the product and even how the product is disposed of at the end of its life.

This means that every item in the Kindhumans store has its seal of approval and ethically conscious consumers can shop there knowing that the Kindhumans team have thoroughly assessed eco-friendliness and sourcing of each product listed in the store.

All this makes it easier for consumers who care to ensure they are buying truly eco-friendly and ethical products.

Ethical Company Adopting Crypto

Promoting transparency has been a core part of the Kindhumans identity from its inception and this is one area where the worlds of charity and blockchain tech can meet.

KindHumans and Nimiq Collaberation

Kindhumans have been exceptionally progressive and have chosen Nimiq (NIM) from a huge list of possible blockchains to record a hash of their annual transparency report on.

Kindhumans have also chosen to embrace cryptocurrency payments and accept Bitcoin, Ethereum, and NIM in their store via an integration with Nimiq Checkout.

The important thing to know is that Kindhumans could have chosen from a long list of crypto payment solutions to enable the store to accept cryptocurrency.

So, with the huge choice of solutions out there, why choose Nimiq to partner with? One of the key things for Kindhumans is that they like to partner with tech projects that share their ideals and values.

Nimiq Checkout Integrations

Nimiq is one of the few crypto projects that has had a strong focus on charity and supporting causes of high social and ecological impact upon its inception.

Indeed, 2% of the entire token supply was dedicated to the Nimiq Charity, which has the sole function of supporting eco-friendly causes and human development initiatives. This alignment in values is one of the core things powering forward the collaboration between Nimiq and Kindhumans.

However, values and ethos are not everything. Collaborations need to make business sense too and it seems that the Kindhumans team have understood the vast potential of future Nimiq Checkout updates to solve some of the key problems holding back crypto merchant adoption.

Nimiq OASIS Connects Banking & Crypto

Right now, the Kindhumans store is powered by a crypto-only version of the Nimiq Checkout. From a merchant point of view, there is nothing really remarkable about this.

Potential Gateway Between Fiat & Crypto. Image via Nimiq

It simply allows crypto users like you and me to send BTC, ETH or NIM to merchants like Kindhumans in an integrated checkout process. Yes, you could argue that the interface is nicer and simpler than most of the other solutions out there, but the remarkable features of Nimiq Checkout are yet to come.

Kindhumans seem to be sold on the enhanced value propositions that will be opened up to merchants in future versions of Nimiq Checkout. The first ongoing research effort is Nimiq OASIS, which stands for the Open Asset Swap Interaction Scheme.

This is a blueprint for a crypto-to-fiat bridge, which makes fiat currencies like the Euro behave as if it were a token on the blockchain. In short, Nimiq OASIS aims to provide a new way of connecting the crypto world with the traditional banking network.

To give you an idea of the gravity of this technological solution, Cardano (ADA) Founder, Charles Hoskinson went on record in March 2019 to say:

What we are seeing is a collection of standards being created [that] will inevitably converge over the next three to five years to create a situation where you can move information and value between all these different systems ー not just Bitcoin to Litecoin to Ethereum to Cardano ー but also your regular bank account

Team Nimiq have already announced that they plan to integrate Nimiq OASIS into Nimiq Checkout and offer integrated merchants the ability to accept payments in Bitcoin, Ethereum and NIM in a completely non-custodial way.

Nimiq Checkout Overview

This will all be settled in Euros directly to their SEPA instant bank accounts. This means that Nimiq Checkout integrators like Kindhumans can benefit from:

Making new sales by accepting cryptocurrency through using the first non-custodial multi-crypto solution. The result is that merchants with no technical knowledge can accept crypto in their store and get Euros paid directly into their SEPA bank accounts quickly – all this without even touching any crypto.
Cryptocurrencies are volatile and can swing wildly in price. Nimiq OASIS provides a solution to practically eliminates the volatility risks associated with merchants accepting crypto.

In short, Nimiq OASIS aims to solve two of the main problems holding back merchant adoption: The volatility of crypto and making it much simpler for merchants to accept this new form of payment.

With Nimiq OASIS set to be rolled out in 2020, it much easier to see why Kindhumans opted for Nimiq Checkout integration today and pass on the numerous other crypto merchant solutions out there.

What’s Backing Up Nimiq OASIS?

Anyone who has been in crypto for a while will know that crypto projects tend to over-hype ‘technological innovations’ on the horizon and end up failing to deliver.

However, with Nimiq OASIS, there appears to be some serious substance behind the research effort. Nimiq announced in early 2019 that it had formed a strategic partnership with German owned WEG Bank.

This was given further weight by Nimiq acquiring a 9.9% stake in the bank and joining other stakeholders like Litecoin and TokenPay.

Nimiq & Ten31 Collaberation. Image via Ten31.com

The key thing to know here is that the WEG Bank and Nimiq relationship is focused on Nimiq OASIS. Via WEG Bank, Nimiq OASIS would be able to leverage the SEPA instant banking network and this would extend the reach of OASIS to over 2,000+ banks in 20 different countries.

WEG Bank also recently announced the launch of its crypto-focused banking unit called TEN31. Nimiq is heavily featured on the new site and this seems to indicate the vital role Nimiq will play in the future of TEN31 bank and the delivery of banking solutions to crypto-focussed businesses.

More Businesses Getting Involved?

In October 2019, TEN31 Bank announced that Salamantex, a prominent crypto point of sale terminal provider, had also become a 9.9% stake stakeholder in the bank. The result is that TEN31 and WEG Bank are now 40% owned by crypto-focused businesses.

Tweet Announcing Collab With Salamantex. Image via Twitter

No official statement has yet been released. However, it would not be surprising to hear in the near future that Salamantex was planning to integrate Nimiq OASIS technology into its sales terminals and extend the reach of Nimiq OASIS to real world stores too.

So, when will Nimiq OASIS be ready?

The Nimiq team have already stated that the first test transactions should be complete by the end of 2019 and that the technology should be rolled out in 2020. These timeframes are also supported by information on the TEN31 website.

Addressing Scaling Issues With Albatross

Scaling is a massive problem faced by almost every crypto payment system and Nimiq is no different. However, Nimiq’s second major research effort is the Albatross proof-of-stake consensus algorithm which focuses on solving that very problem.

This is being pursued in collaboration with Trinkler Software and a technical paper has already been published. What’s astonishing is that the initial findings are that Albatross will achieve a performance close to the theoretical maximum of a single-chain protocol.

Albatross PoS Consensus Mechanism

The reason why this is important for Nimiq OASIS is that the process will use the Nimiq blockchain. This means that if Nimiq Checkout is adopted at scale, that the Nimiq blockchain will need to be capable of processing an ever increasing number of transactions, potentially causing a bottleneck.

Currently, the Nimiq blockchain is capable of processing 7 transactions per second (the same as Bitcoin).

However, with the testing of Albatross already in progress and its integration into Nimiq 2.0 scheduled for Q2 2020, it is expected that the Albatross improvements would see the Nimiq blockchain being capable of 1,000+ transactions per second. To place that into context, that’s an average five times more than PayPal has to manage.

The key thing to know here is that if Nimiq’s OASIS powered multi-crypto merchant solution really takes off, then Albatross is set to play a key role in ensuring that those crypto-to-fiat conversions remain quick for merchants.

Is Nimiq an Interesting Project?

We consider Nimiq to be a hidden gem that’s flying under the radar of the crypto community. If you want to learn more, why not watch our deep dive video into the project?

Conclusion

Like it or not, crypto still has a massive reputation problem amoungst a mainstream audience. Yes, that the link between crypto and criminality is likely to fade over time.

However, before crypto can truly be mass adopted, it needs to achieve mainstream acceptance. We believe that the key to changing that viewpoint is being able to show the doubters tangible examples where blockchain tech has been embraced and adopted to support good causes.

That’s where progressive ethical companies like Kindhumans can add tremendous value and help power forward crypto adoption.

It is also why you should consider supporting businesses like Kindhumans and show the mainstream the true spirit of the crypto community. If we can pull together and create that positive news-flow, then it will surely bring us one step closer to the mass adoption that so many in the crypto community wants.

The future and speed of wider adoption could very well be in your hands. Will you sit idly by or will you do your bit to help break the link between crypto and criminality?

That’s on you to decide.

Featured Image via KindHumans

Disclaimer: The author holds some NIM in their portfolio and is compensated in a long-term independent consulting capacity by Nimiq. This article must not be construed as investment advice. Always do your own research.

The post Kindhumans Ethical Store Accepts Crypto: Why This Matters appeared first on Coin Bureau.

Pundi X Review: Powering Point of Sale Crypto Adoption

Steve Walters — Fri, 08 Nov 2019 23:10:08 +0000

Pundi X was one of the most highly anticipated ICOs of 2018. This meant that it was able to hit its $35 million hard cap within 90 minutes.

The project is trying to build a large decentralized crypto point of sale network. They are trying to acheive this through Merchant devices, cards and crypto wallets. If they succeed, they hope to make buying cryptocurrency as easy as “buying bottled water”.

However, are these ambitions too grand?

In this Pundi X review I will attempt to answer that. I will also take an in-depth look at the use cases of the NPXS token as well as its long term adoption potential.

Pundi X Technology and Use Cases

The driving force behind the creation of Pundi X is the steep learning curve for those just entering the cryptocurrency ecosystem. With very few exceptions (Robinhood and Coinbase come to mind), current cryptocurrency exchanges are confusing and difficult to learn for new users.

And that doesn’t even touch on the difficulty and confusion associated with juggling multiple wallets, private keys, passphrases and authenticators.

Honestly, even experienced cryptocurrency users can become somewhat frustrated. Pundi X offers to change all this through three interlocking pieces of technology: The Pundi X platform, mobile wallets, and card payments.

One interesting and unique feature of the Pundi X network is that its devices are integrated into two blockchains – Ethereum and NEM. Nem (XEM) was chosen because it is popular with Asian financial institutions, and because it has the technology to enable nearly instantaneous payments.

The Platform

The Pundi X POS device has begun production in February 2018 following the ICO and has been shipping to merchants since July 2018. The list of merchants has been expanding at an ever increasing pace. You can see a list of all of the global merchants here

It allows customers to pay for goods with cryptocurrencie stored in their mobile wallet, and can also be used to buy cryptocurrencies (BTC, ETH, XEM, QTUM, or ACT) to top up the wallet.

During the ICO Pundi has said that they will deliver 100,000-700,000 POS devices to at least 12 different countries over the next three years. In addition to the base model, Pundi is also designing a smaller unit and a desktop version that will be capable of accepting major credit cards, Apple Pay and Samsung Pay.

Pundi X POS System Explained

The team is actually doing much better with XPOS devices shipped to more than 25 countries as of November 2019, and expectations for over 100,000 XPOS devices being deployed by 2021.

The POS system also serves merchants as it incorporates inventory, membership and identity management features. Pundi X says the POS system will be far better than Bitcoin ATMs thanks to the increased range of services available and the lower cost.

In addition, the devices are far smaller, enabling them to be installed in many places where a Bitcoin ATM wouldn’t be feasible. The Pundi X token (NPXS) will be used as gas for the network, powering transactions and advertisements, as well as identify customers for qualified discounts.

The initial 500 units were delivered to select locations in late June, and on July 10, 2018 the team announced the first of these, which are located in Hong Kong in four participating FAMA restaurants as part of the RISE 2018 convention. The team also distributed XPASS cards to RISE 2018 participants to demonstrate how easy it is to use cryptocurrencies to make purchases using their technology.

The current and planned Pundi X PoS devices. Image via Pundi X

The team has also said they will focus on Indonesia, which is the largest South-East Asian country, with a population of roughly 250 million. Obviously, Hong Kong has also become a target for early adoption, and the Pundi X team has also said that it has expanded into China.

It’s very exciting to see the team shipping and beta testing the actual hardware, and while it may seem unreal to be able to purchase goods with cryptocurrency, and to purchase cryptocurrency while waiting for your lunch or dinner to be served, this platform could not only make it a reality, but make it widely accepted over the next three years.

Pundi X Wallet

The mobile wallet (Pundi XWallet) will simplify key management for users, storing the public and private keys and using a password system similar to any online system.

This feature alone is expected to massively increase adoption of cryptocurrencies by new users, however, there are worries that it could deter existing cryptocurrency users who worry about security and privacy issues.

The wallet is able to hold BTC, ETH, BNB and NSPX, as well as fiat currencies. There are plans to add support for additional currencies over time. The XWallet also includes a virtual XPASS card, or it can be synched with a physical XPASS card.

Screenshots of XWallet in the Google Play Store

The XWallet is available on both iOS and Android devices and are free to download. In terms of feedback on the apps, it has about a 4.3 star rating in the Google Play store. However, there appears to have recently been a number of complaints about the functionality of the app.

Some of these relate to the KYC requirement of Pundi X which is not something that they can really control. However, for those that are technical in nature, the team appears to be quite responsive and – most importantly – receptive.

The Pundi X Card Payment System

The company has released a card, which they are naming the XPASS card, which works together with the mobile app and wallet, enabling payments and deposits by card (a familiar medium for most) that are pulled from the mobile wallet.

In addition, users are able to see the current market price of each cryptocurrency before paying for goods and services, allowing them to pay with the cryptocurrency that brings the best value at the time. Currently, the XPASS card has support for BTC, BNB, ETH and NPXS.

This ability to pay for things easily with cryptocurrencies is what will finally give them real value in a widespread sense. The Pundi X whitepaper states that

most cryptocurrencies can only be used to buy other cryptocurrencies, reducing the relevance of them to almost zero for most people

Pundi X Card Payments

Indeed one of the primary arguments of non-crypto believers is that cryptocurrencies have no real value. It is hoped that enabling ease of payments will change that opinion.

It does seem as if the Pundi X team has created a technology system that has the potential to make cryptocurrencies widely accepted and used on a global scale. While the use cases are strong in theory, much of the adoption will depend on how quickly the POS devices can be rolled out, how well they actually work, and how successful the next several years of marketing for the technology is.

It is also notable that Pundi has partnered with iBank for the release and distribution of the XPASS cards. They offer both the standard XPASS card as well as a special edition Cao Jun designed card.

Pundi has also released a Manga themed XPASS card that also supports NEM and Qtum. Eventually, these special edition cards will be made into digital assets on the IOST blockchain.

Pundi Function X – f(x)

Function X or f(x) is Pundi’s vision of the blockchain internet and includes not only a decentralized internet model, but also the hardware devices necessary to take advantage of this new blockchain based operating system.

The first device being launched is the Pundi X blockchain phone, being dubbed “BOB” for “Blok on Blok”. In addition to the blockchain based phone, the Pundi X team is also planning on redesigning the XPOS terminals to take advantage of f(x) technology. Finally, there is a Function X physical node in development.

FXTP Protocol With the BOB Smartphone

These are only three examples of hardware that can be created to take advantage of the f(x) operating system. Like everything else the Pundi X team takes on, the concept of the Function X operating system is ambitious, impressive, and far-reaching.

Pundi X Team

The Pundi X team are a talented group of technologists and entrepreneurs, which seems to be exactly what this project will need for success. In general, the management team is comprised of computer engineers turned serial entrepreneur.

The glaring exception to this is CEO and founder Zac Cheah, who was formerly an HTML games developer, but perhaps this is why he surrounded himself with such a strong team.

The President of Pundi X, Constantin Papadimitrou, has a long history of founding successful fintech companies, and scaling them, which makes him an ideal fit for a project that will need rapid growth and adoption.

From Left: Zac Cheah (CEO), Pitt Huang (CTO), Constantin Papadimitriou (President), Danny Lim (CFO)

The CTO/COO and co-founder Pitt Huang created and sold his first business by the age of 25 and went on to create and sell several more business, including one that had over 200 employees.

The CFO and the third co-founder of the project is Danny Lim. Danny is an APAC financing expert who has product design experience with Baidu and Lenovo. Danny is a PhD Law scholar from Tsinghua University and hold ACMA and CGMA accounting qualifications.

The management team operates out of Jakarta, which the research team largely operates out of Shenzhen. Overall the team has physical offices in Jakarta, London, São Paulo, Seoul, Tokyo, Shenzhen and Singapore. As of August 2018 the team is comprised of more than 150 employees, with over half filling research and development roles.

Partnerships

The Pundi X team has worked diligently, not only on the product and platform, but also on partnerships to help spread the platform and ensure both short-term growth and long-term stability.

The most significant partnership for Pundi X has been the one with NEM. It is this partnership that will allow Pundi X to confirm transactions instantly. Without this the team would almost certainly be able to gain traction with consumers, who are not going to be willing to use a transactional payment system that takes several minutes at the least to confirm transactions. The fast and inexpensive transactions provided by NEM make it possible for Pundi X to gain mainstream adoption.

Pundi X Partnerships

The Pundi team has also spent time positioning itself within the cryptocurrency ecosystem, establishing partnerships with the Indonesian Blockchain Association, the Singapore Fintech Association, the XPOS Consortium, ACCESS, the Fintech Association of Hong Kong, and the Swiss Finance and Fintech Association.

This last led to a further partnership with Swiss company UTRUST, who have committed to deploying 1,000 of the Pundi X POS devices.

Pundi X has been proactive in creating partnerships as a key business development tool. They have also used them to maximize their value proposition, increasing trust, engagement and adoption for both consumers and merchants. This should assist them tremendously in their marketing efforts as they roll out the Pundi X devices and systems throughout Asia and beyond.

Community Analysis

Even though the NXPS coin has been languishing along with the rest of the cryptocurrency markets, the project continues to attract members to its various online communities. In fact, it has by far the largest following on Facebook I’ve ever seen for a blockchain project with over 110,000 followers of its page.

That dwarfs its other social media accounts, although it does have a strong Telegram channel, with over 40,000 followers there.

The project’s following on Twitter is pretty solid, with 66,600 followers. The team is also active there, not only tweeting their own stuff but also retweeting useful information from other Twitter users and blockchain projects.

The sub-Reddit for Pundi X is somewhat disappointing, with only 5,534 followers. Posts here are infrequent too. In fact, you’d be better off following the project’s YouTube channel, which has a large number of videos and some very good information about Pundi X and NXPS tokens.

It also has over 4,000 subscribers, which is pretty good on Youtube for a blockchain project.

The NPXS Token

As mentioned earlier, Pundi X held an ICO back in January, raising their $35 million hard cap in just 90 minutes. As we all know, the first quarter of 2018 was a bad one for crypto in general and the NPXS token slowly sank from $0.001 to between $0.0007-0.0008 by April.

That’s where things got interesting after the Bancor Network listed the NPXS token. That took the price to $0.004 or so, but then in May price jumped again, reaching nearly $0.015 before dropping back. Price spiked to an all-time high of $0.015621 on June 17, 2018 when the shipment of the first 500 XPOS devices was announced.

NPXS Price Performance. Image via CMC

Of course, that pump didn’t last and price turned lower almost immediately following the June shipment announcement. There was a brief rally in May 2019, but by October 23, 2019 price was at an all-time low of $0.000159. Several weeks later on November 8, 2019 price has recovered slightly to $0.00018, making NPXS the 94th largest coin by market cap.

Trading & Storing NPXS

If you think now is a good time to buy NPXS, or if you just want to support the project, you’ll find the token listed on dozens of different exchanges.

The largest trade volume can be found at Binance, but Upbit and Hotbit also have good volumes. You could also consider Bithumb, Exrates, BKEX, or Vebitcoin. There are a handful of other exchanges with acceptable trade volumes although you could struggle with larger orders.

Taking a look at the liquidity on an exchange like Binance it appears average. For example, on the BTC / USDT order book the depth is reasonable with a minor bid ask spread however daily turnover is on the lower side. So, larger block orders could lead to some slippage.

Register at Binance and Buy NPXS Tokens

The recommend wallet is the mobile XWallet that is created and released by the Pundi X team. You can get it here and it is perfect for staking too. There are other options such as the Atomic Wallet, and of course, you can store NPXS in any ERC-20 compatible wallets too.

The NPXSXEM Token

In addition to the NXPS ERC-20 token there is also an NXPSXEM token created from the NEM blockchain. It is a utility token that was created for utilization on NEMXPOS devices.

Pundi plans on manufacturing and deploying 20,000 NEM XPOS units around the world, all of which will run on the NEM blockchain. Of course, it is also openly traded on markets and as of this writing has a value of $0.000171.

NXPSXEM hit its all-time high of $0.004845 on August 8, 2018, just a day after being exchange listed. It’s all-time low was $0.000088 on October 16, 2019. Like NXPS it can also be staked by holding it in the XWallet until the end of 2020.

Conclusion

Pundi X has taken on an impressive and ambitious task in tackling what could amount to everyday adoption of cryptocurrencies by the masses, if their vision is realized. The technology seems appropriate for what they’re attempting, and the delivery of XPOS devices to more than 25 countries already shows the commitment of the team, and the success of the project to date.

The entire team has substantial experience in both technology and finance, which has been helpful to the start-up. With partnerships in place, and the hope for larger partnerships to be forged, Pundi X is like a sleeping giant.

All that’s left is to see if they can deliver on their promise of 100,000 units in the coming three years, and whether they are able to market those devices appropriately.

With those two pieces in place, you could be seeing a Pundi X device at a retailer near you in the near future. In fact, if you live in Brazil, Southeast Asia or some areas of Europe and Africa you might have already come across Pundi X devices.

And now with the development of Function X Pundi is looking to not only take over cryptocurrency merchant transactions, but they also want to take over the internet. Imagine if they’re successful. Pundi X in twenty years could be like a combination of Google, Apple, and Amazon with a global reach and commanding market presence.

Images via Shutterstock

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Pundi X Review: Powering Point of Sale Crypto Adoption appeared first on Coin Bureau.

Viberate Review: The Blockchain Based Live Music Ecosystem

Steve Walters — Mon, 03 Jun 2019 19:52:09 +0000

Viberate is a unique blockchain project that is trying to bring all the participants of the global music industry together on one platform.

Viberate is an Ethereum-based project focused on the talent present in the global live music scene. It brings together the management agencies and event organizers with the artists and fans and bypasses the large organizations that have controlled the music industry for so long.

While ambitious, can the project realistically break into the industry?

In this Viberate review, I will attempt to answer that and give you everything you need to know about the project. I will also take a look at the long term use cases and adoption potential of the tokens.

How Viberate Works

Viberate works with both businesses and consumers in its aim to integrate the many different segments of the music industry. Because there are so many aspects of the business model it can be somewhat hard to comprehend, but suffice it to say that if it involves live music then Viberate is involved in some manner.

Image via Bitcoin Talk

With Viberate smaller, up-and-coming artists are able to put themselves forward and connect with the agencies and venues looking to work with them. In short, Viberate wants to shake up the music industry and make it fair for everyone.

Business to Consumer (B2C)

The first thought you might have is how Viberate will work to connect the fans (consumers) with artists, venues, and events (business). Basically, the team has come up with two B2C use cases.

Ticket Sales & Booking

The primary model for business to consumer markets is offering tickets for live events, festivals, concerts, and other music venues. Viberate has created affiliate partnerships with ticketing agencies such as Ticketmaster and generates revenues from the sale of tickets.

Future plans are for Viberate to create its own ticketing agency. Billed as the Digital Ticket Exchange (DTX) it will allow fans to buy tickets using cryptocurrencies and will send the tickets directly to their wallets as an ERC-20 token.

Some of the Tickets on Sale at Viberate

Ticket fees will be held in escrow by smart contracts, allowing fans to get refunds in the event a concert doesn’t go off as planned. There are also plans to include functionality that will permit users to resell their tickets if they aren’t able to use them for some reason.

Event Crowdfunding

Another B2C plan is to create a platform that allows fans to crowdfund a performance. This will allow fans to create a crowdfund that brings their favorite artists to them. It will work by having a group stake VIB tokens and when a certain threshold is reached the crowdfunding campaign is automatically sent to social media platforms for promotion.

If the crowdfunding raises enough the donors will receive digital tickets in their wallets. The artist will be asked to perform and if they agree they get their share of the funding. If the threshold isn’t reached all the VIB tokens are refunded to the donors.

Business to Business (B2B)

Viberate is really nothing more than a database of five different subsets within the music industry. The databases are updated by users of the Viberate app, who are compensated for adding new artists, events and venues.

The database also tracks booking agents and event organizers, but these sections are not public facing. Instead, they are kept separate for business users. The platform allows for interactions between different groups in a variety of ways and the VIB token is the incentive for interaction.

Matching Artists with Organizers

Viberate performs a function similar to that of a booking agent by matching musicians with event organizers, but on a much larger scale. And smaller musicians, who may not be able to afford a booking agent, are able to get matched with venues, benefiting both the artists and the venues.

Connecting Artists with Event Organizers

Smart contracts are used to hold fees and payments in escrow, and these fees are paid in either VIB or ETH tokens. There is a small commission charged by the Viberate platform as a booking fee, but it is far smaller than the fees charged by traditional booking agents.

The platform also makes it possible for merchandisers or other business interests to obtain the manager or agent details of the artists listed. There is a premium fee charged for this detail, with the premium paid in either VIB or ETH.

The platform also makes it possible for other types of connections. One case would be event organizers, who can use Viberate to search for available venues for an event they are planning.

Viberate Incentives

Every user of the Viberate platform is able to earn rewards from the daily VIB bounty pool. These rewards are based on the activity of the user, with rewards for adding to the database, maintaining listings, referring friends and other activities. Both consumers and businesses can receive these rewards.

The VIB bounty pool was made up of a fixed 10 million VIB tokens. Five percent of those were issued during the ICO and the remainder are released at a rate of 5,000 per day for the first 2,000 days the platform is in existence.

How to contribute to the Viberate Database

Once all 10 million bounty tokens have been released it is unclear how the bounty pool will be refilled. The whitepaper states that it can be refilled from other token streams and that no new coins will be issued. We can assume that the bounty tokens will come from the fees collected by the Viberate platform.

The Viberate Team

Viberate was started in 2016 and came from the success of the Topdeejays.com website that was begun back in 2013. Viberate 1.0 was not a blockchain project, but soon after the creation of Viberate, the founders saw the benefits of putting the project on a blockchain and so hired developers to do just that. Viberate 2.0 was launched several months later.

The founders of Viberate are three Slovenian friends with a passion for music. None of them have any background in blockchain, but they all have extensive experience in the music industry.

Matej Gregorcic is the CEO of Viberate and one of the three founders. He also co-founded the blockchain commerce platform Eligma. He got his start in business when he began a marketing agency as a teenager. That agency eventually grew to be the largest marketing agency in Slovenia.

The second co-founder and COO of Viberate is Vasja Veber, who has over 10 years in the music industry. He is also the manager of the third co-founder and ambassador for the Viberate platform, Uroš Umek. Also known as DJ Umek, he is credited with kickstarting Slovenia’s techno music scene.

The Founding team of Viberate

The technical side of the project is handled by Slovenian developers Bostjan Zakelj, Rok Bavec, and Rok Babic.

There are other blockchain projects in the music industry, but the Viberate platform is unique in its creation of connections between all areas of the industry. There’s also Ceek VR, but it is looking to provide fans with virtual reality live music broadcasts. And then there’s Soundcoin and Musicoin, but both of those are focused on royalty payments for artists.

Viberate Community

Something else that is really important for a project to grow is that there is a strong and enthusiastic community behind it. This is especially the case with Viberate as their entire ecosystem is built around users submitting data for the VIB tokens.

So, I decided to take a look into the extent of the Viberate community.

Firstly, they have an official Twitter account that has just over 32k followers. They seem to be quite active there and are constantly keeping the community up to date with the latest announcements to come out of the project.

They also have a Telegram channel with just over 4k members. I dived into it to see what was going on in there. Despite the admins being quite responsive and welcoming to the users, there was not much community discussion going on. Not the ideal ecosystem for fostering adoption.

Limited Telegram Activity

For those who still use Facebook, Viberate has over 100k likes on their official page. However, this is not kept as up to date as their Twitter account. Finally, there is also a reddit subreddit for Viberate but this is also quite silent with not that much community interest in the posts.

Based purely on the community interest in the project on their social channels, it does appear as if Viberate needs to do a better job of spreading awareness. There needs to be more emphasis on the benefits of contributing data and using their event marketplace.

VIB Token

Viberate held an ICO soon after migrating to the blockchain, raising $12 million in a single day (September 5, 2017) as they sold 120 million VIB tokens at $0.10 each. The price of the tokens nearly tripled on the release day, but quickly dropped back and traded between $0.15 and $0.20 over the next few months.

After dipping nearly to the ICO price in December the token got caught up in the cryptocurrency bull market of December 2017 / January 2018. It hit its all-time high of $0.718929 on January 4, 2018, and after spending about a week at and near that level it began the long decline that would take place over the remainder of 2018.

By June 2018 the token was trading below its ICO price, and it continued declining until reaching a low of $0.020143 on December 14, 2018. The token bounced modestly off that low but remained below the $0.03 level until March 2019. A month later it topped the $0.04 level and as of May 2019, it was trading above the $0.05 level. It hasn’t moved much above that, and so remains nearly 50% off its ICO price.

Register at Binance and Buy VIB Tokens

If you want to get some VIB tokens you can get them at Binance, or Bittrex, or UpBit. They’re also available from OKEx. Despite this selection, almost 80% of the volume is currently being traded on Binance on their BTC and BNB markets.

This opens the volume and liquidity up to “key exchange” risk. If VIB is ever to be delisted for whatever reason, there is a risk that the liquidity of the token will collapse. Currently though, there is a reasonable level of volume on these books and there has been no indication of any delistings.

If you have bought VIB tokens or earned them through contributions, then you are going to want to store them in a secure location. VIB are ERC20 tokens which means that you have a pretty good selection of wallets to use. The safest option is the likes of a Ledger Nano although you can also use MyEtherWallet / MyCrypto.

Conclusion

What Viberate is doing is incredibly far-reaching and ambitious. The music industry is huge, as evidenced by the fact that Viberate now has over 460,000 artists, more than 500,000 events, and beyond 100,000 venues in their database.

The company also has first mover advantage in its niche and is the only blockchain project targeting the entire live music industry. That’s good but could also work against Viberate if they overextend themselves by going after too many subsectors of the industry.

Thus far, putting aside the decline in the price of the VIB token, the project seems to be growing and finding success. What it really needs from the consumer side at this point is the addition of its decentralized ticket broker. That would push the project to the forefront and having more transparency in the ticketing process would certainly benefit the fans.

One final positive about the project is that it is motivated not by money, but by the passion of the founders. This is a group who truly love music and are looking for ways to improve live music for everyone involved in the ecosystem, from fans to musicians to the organizers and venues.

If you want to keep up to date with the latest news from the Viberate team then you can follow their official blog.

Featured Image via Fotolia

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post Viberate Review: The Blockchain Based Live Music Ecosystem appeared first on Coin Bureau.

TenX Review: The CryptoCurrency Backed Debit Card

Steve Walters — Wed, 24 Apr 2019 21:51:23 +0000

TenX (PAY) is a cryptocurrency funded debit card that has had its fair share of ups and downs since its blockbuster ICO in 2017.

The vision behind TenX was to allow users to spend their crypto just as easily as they spent their fiat funds. Through the crypto backed cards, users could swipe away their coins for goods and services. However, since the launch there have been delays to the card roll out.

So, can TenX really deliver on their promises?

In this TenX review I will take an in-depth look at the project as well as its team, technology and roadmap. I will also analyse the long-term adoption potential of PAY tokens and whether they could ever recover.

What is TenX?

TenX isn’t a new project. It was launched back in 2015 and promised users a digital wallet and a physical debit card that would allow users to spend cryptocurrency on goods and services anywhere. The project has had a bumpy ride recently, with the initial release of the physical card being halted in early 2018 and the more recent card shipments being delayed as well.

The PAY token tied to TenX is an ERC-20 security token that acts as shares in the TenX company.

We saved you the trouble of actually going through the uncertainty and doubt.
Singapore, soon is now.#WhenCard #CardsNow #SoonIsNow #TenX pic.twitter.com/IDRw36huXx

— TenX (@tenxwallet) January 17, 2019

After missing initial shipment dates the TenX team took to Twitter on January 17 with a marketing video many called clever and some called distasteful, which assured users that cards were shipping in Singapore and later in the year would ship to APAC countries and Europe.

So the cards are finally out in Singapore, but is it too late for TenX? Because it’s hardly the only project looking to supply users with debit cards that allow them to easily tap cryptocurrency holdings.

Both Crypto.com (formerly Monaco) and Token are serious competition to TenX, with both working to push regulations that will allow a cryptocurrency payment card to be released for consumers.

It’s possible that those backers and early adopters who feel so scammed are gone for good, and TenX will be unable to pick up the pieces. Or maybe they will be able to forge ahead now that they’ve gotten back on track with card deliveries.

COMIT and TenX

TenX plans on delivering fee-free cryptocurrency exchange through its use of the Cryptographically-Secure Off-Chain Multi-Asset Instant Transaction (COMIT) network. While this network is separate from TenX, it is being developed by the same team.

COMIT will use a specialized routing protocol to enable seamless interoperability between blockchains, which will result in nearly free exchanges between them. COMIT cannot work with all blockchains, however, and is only compatible with those that have double spend protection and support hash functions, timelocks and multisig.

COMIT Network Routing. Image via COMIT Network Whitepaper

The COMIT network will function through Liquidity Providers who make the exchange verification process quick, simple and inexpensive. The TenX team has described it as a blockchain-based competitor for the SWIFT network.

In addition to supporting basic exchanges and purchase transactions, the TenX team plans on releasing a suite of developer tools that will support the creation and use of other financial products with TenX, such as loans and ETFs. Eventually, TenX envisions its network providing for every facet of consumer finance and payment processing.

While a demo of a swap between PAY and BTC using COMIT has been completed the mainnet COMIT hasn’t been released yet, and the team admits it remains highly experimental at this time.

There are also questions of whether COMIT will rely on the Ethereum blockchain or a native blockchain once the mainnet launches. Running and maintaining a platform of this scope is both difficult and expensive, and there is no certainty the COMIT team can pull it off.

TenX Card Fees

While there are no fees for using the TenX card, there are fees for acquiring it. That’s how TenX plans on funding their project.

The way the structure is currently designed users would pay $1.50 to use the TenX card digitally, or $15 to obtain a physical card. There is no annual fee for using the card, as long as you spend a minimum of $1,000 a year. If you don’t meet that minimum threshold the TenX card has a $10 annual fee.

In the original whitepaper, there was also a rewards program linked to the TenX card and PAY token. Basically, you earned rewards by holding PAY tokens and by using the TenX card.

TenX Fees Comparison in original TenX Whitepaper

In that original whitepaper holders of PAY, tokens would receive 0.5% of all the aggregate monthly transaction volume on the network. These payments would be made in Ethereum and would grow along with network usage. Ultimately the whitepaper envisioned the network growing large enough that payments would be made hourly.

In addition, the whitepaper outlined a reward scheme for card users where they would receive a 0.1% reward in the form of PAY tokens each time they used their TenX card.

Unfortunately, these rewards programs were never implemented and as of October 2018, both have been removed, with the team stating that they were rethinking the rewards program.

At this time there is no rewards program, and there are a number of early adopters who are quite upset with the project because their initial buy of PAY tokens was with the understanding they would receive rewards in line with the program talked about in the original TenX whitepaper.

The TenX Platform

While COMIT might not be ready yet, the platform comes with a strong toolset and controls for users.

Users are able to prevent unauthorized card usage by setting limits on spending, withdrawals, and purchases and these can be daily limits or overall limits. This is all done using Decentralized Security Smart Contracts.

Decentralised Security Smart Contract Overview. Image via Bitcoin Talk

Of course, the biggest benefit for users is that they can spend cryptocurrencies at any retailer who accepts Visa cards. There’s no longer a need to confine yourself only to merchants who accept cryptocurrency.

All of this is done through a financial intermediary who holds the deposited cryptocurrency in escrow and makes payments to merchants in fiat. The lender then settles the account based on the exchange rate in effect when the transaction occurred. The merchant gets paid immediately, but it can take several days to settle the exchange transactions on the backend.

Previously WaveCrest was backing the TenX card, but there’s been no announcement who is backing the cards that are currently being shipped in the APAC region. There were also indications that TenX was trying to get a banking license themselves to become the financial backer. If this is what happened it’s somewhat troubling as it makes TenX more centralized.

TenX Crypto Wallet

TenX has also developed their mobile wallet which will work in conjunction with their crypto card. This can be used like any other crypto mobile wallet and currently supports Bitcoin (BTC), Ethereum and Litecoin.

This App will be paired with the card so that users can spend their crypto for in-store purchases, online shopping or even to withdraw cash from an ATM. You can also control the card from the app in the event that it is lost by disabling the chip.

Safety Tip?: The moment that you have downloaded the App, be sure to enable two factor authentication

The TenX App was released not long after the ICO back in November of 2017 and has been evolving since then. It is currently available in both iOS and Android. If we take a look into the respective app stores we can see the reviews which are quite polarised.

App ratigs in the iTunes store and Google Play

However, if one was to take a deeper look into the reviews, most of the comments appear to be frustrations with the shipping delay of the cards. While these are reasonable, they are not really related to the functionality of the App or wallet.

What is encouraging though is the fact the TenX developers are following up to these complaints and reviews. This shows that they are receptive to the criticisms of the community and are keeping them well informed.

There have been plans to add additional cryptocurrencies to the App although the team is perhaps preoccupied with the release of the cards recently.

TenX Team

The TenX team is based in Singapore and is currently run by co-founder and CEO Toby Hoenisch. Prior to founding TenX Toby was the co-founder and CEO of a software development company called One One Agency which was involved in creating integrated payment systems for private clients.

TenX Founding Team

A second co-founder is Michael Sperk, who serves as head of engineering at TenX. He gained his engineering and technical experience working as a technical lead at Visualyze, where he helped develop a browser-based tool that performed visual analysis on social media messages and was capable of processing hundreds of thousands of messages in real-time.

The third co-founder is Paul Kittiwongsunthorn who worked alongside Toby at the One One Agency and serves as the Chief Development Officer at TenX.

There was a fourth founding member of the team, however, he is no longer listed as a founder on the TenX website due to some controversy surrounding his past activities, specifically his connection with a ponzi scheme from 2011 through 2015. That fourth member is Julian Hosp and he stepped down as president of TenX on January 8, 2019.

The PAY Token

TenX uses the PAY token as a security token for its network and the ICO held on June 24, 2017, was huge, to say the least. The project raised $80 million in just one day, selling PAY tokens for $0.8701 each. The price began to rally in August 2017 and reached an all-time high of $6.21 on August 12, 2017.

That’s unique among cryptocurrencies as most reached their all-time highs in January 2018 following the huge December 2017 run-up in Bitcoin. The price pulled back from that high, but rallied to over $5 once again in January 2018 before sinking alongside the rest of the cryptocurreny market throughout 2018.

PAY Price Performance. Image via CoinCodex

There is no mining of PAY as the entire supply was pre-mined. The total supply is 205,218,256 PAY and the current circulating supply is 114,347,861 PAY. The project expects to release about 55 million PAY tokens in the next 4 years as part of a community and business development fund, while the remaining tokens will be split between the TenX company and the founders.

The PAY token is available on a number of exchanges, but the notable missing exchange is Binance. The top exchanges by volume for PAY are Dcoin and Bithumb. There’s also a good amount of volume on OKEx. Other choices would be Bittrex, Upbit, Huobi Global and Gate.io among a handful of others.

There appears to be reasonable liquidity for the token split across all of these exchanges. Of course, the bulk of the volume is done in two Asian exchanges which means that PAY is quite susceptible to news flow out of the region (particularly South Korea). Hence, PAY is generally more volatile than comparable tokens.

If you have purchased PAY tokens, best practice is to store it off the exchange in a wallet. Since PAY is an ERC-20 token it can be held in any ERC-20 compatible wallet such as MyCrypto or MyEtherWallet.

Conclusion

TenX began with huge ambitions and if it had been able to remain on track it might now be the clear leader in making cryptocurrencies easy to spend.

However, the setbacks experienced by the team have put TenX in a position where it is on even footing or perhaps even playing catch-up with similar projects. The coming year should tell whether it is able to secure dominance or not.

Success will depend on how quickly they can expand the footprint of their cards, the addition of new cryptocurrencies to the ecosystem, and the addition of a rewards system, which is what attracted many early investors.

It’s also critical that COMIT launches on a mainnet to keep costs and fees down.

Even with all these things in place, it’s unclear if the cryptocurrency community will excuse the mistakes made by TenX and accept them as a viable project again. Looking at the struggle PAY is experiencing in recovering the future success of the project remains questionable.

Featured Image via Fotolia

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post TenX Review: The CryptoCurrency Backed Debit Card appeared first on Coin Bureau.

7 Best Crypto Prediction Markets: Betting on the Blockchain

Steve Walters — Thu, 21 Feb 2019 14:34:43 +0000

Prediction markets have been around for some time, but putting them on the blockchain has made them far more reliable and accurate.

In fact, some researchers have found they are even more accurate than advanced statistical tools because of the reliance on knowledge and beliefs from a large number of users distributed evenly throughout the world.

The shift of prediction markets to the blockchain is one that was predictable itself. The decentralized blockchain fits predictive markets and tools perfectly. So perfectly that there are a number of projects exploring blockchain based predictive markets.

In this post I will take a look at 7 of the top crypto prediction markets and how they could potentially disrupt the betting industry.

1. Augur

Augur (REP) is one of the first decentralized, trustless blockchain prediction markets. It combines smart contracts and oracles to allow for the prediction of real-world events without any third-party involved. The Augur market model makes use of a four stage progression:

Market Creation: – Anyone can create a prediction market based on a future real-world event. The creator sets the end time and also chooses smart researchers and oracles.
Market Trading: – Once the market has been created participants are free to predict the outcome of the event using Ethereum (ETH) to make their prediction.
Market Reporting: – Once the event is complete oracles work to determine the true outcome of the event so the settlement process can take place. This includes market reporters who provide the real world outcome. Those who gave accurate predictions are rewarded.
Settlement: – Shares are distributed to traders who can settle with the market or with another trader in the same market. These shares are paid out in Augur REP tokens.

With Augur any future event can be used as a predictive model, including elections, weather events, company or stock forecasts, geopolitical events, the possibilities are endless.

Some of the live events on Augur. Image via predictions.global

The Augur mainnet only went live in the middle of 2018. Since the launch betting volume has grown considerably and is currently sitting at just over $2m in money at stake. There are also a range of bets that are currently on the go including events such as whether ETH will exceed $300 in June of 2019 or which club will win the UEFA champions league.

Augur was actually one of the very first projects to complete an ICO on the Ethereum blockchain. They raised just $5m back in October of 2015 at a price of $0.6 per REP token. This means that at current prices the token is considerably above their ICO price and has been a good investment for early backers.

REP tokens can be bought on exchanges such as Binance and given that they are ERC20 tokens they can be stored in a compatible wallet such as MyEtherWallet or MyCrypto.

2. Gnosis

Gnosis (GNO) is another of the older prediction markets, having been in development since 2015. The Gnosis team works under the premise that while information is readily available, not all information is true, and in most cases it also lacks objectivity and context. Information inherently is bias and can even be intentionally misleading. Gnosis plans on combating these tendencies in the following way:

Gnosis will be an open platform available to all with unbiased and transparent access
Gnosis will do away with the traditional method of using experts to make predictions and instead use an efficient marketplace that utilizes the knowledge of everyone.
Individuals with information about an event are incentivized to participate and share their information.
Questions and predictions can be made by anyone for any reason. Ultimately the platform could be like a decentralized customized version of Google that aggregate’s user knowledge from the global pool.

Gnosis has a number of uses, and with increased user participation it becomes more effective. Gnosis is built on the Ethereum blockchain and currently has an alpha version called Gnosis Olympia available where users can test the platform using play OLY tokens.

Users testing Gnosis Olympia with OLY tokens. Image via Gnosis

GNO tokens are currently trading at a large discount to their ICO price so this could make them slightly more attractive from an investment perspective. If you would like to get your hands on some GNT then they can be bought on Kraken or Bittrex and they can be stored in any ERC20 compatible wallet.

3. Stox

Like Gnosis, Stox runs on the Ethereum blockchain. Created by a group of financial market veterans, Stox is a prediction market platform that allows trading in the results of any real-world event that can be imagined. Weather, politics, sports, celebrities and financial markets are just a few of the possibilities.

By using a decentralized, trustless platform Stox hopes to capture the attention of traders by providing them with a safe place to trade on real-world events without the intervention of governments or third party companies and firms. Much like Augur, it will allow its participants to profit from their knowledge in any field.

Stox was developed by a group of industry experts. It was founded by CEO and founder of Invest.com. It has also been backed by an advisory board of 9 members and has partnerships with the likes of Sirin labs, Blockchain capital and Cointree. Stox completed an ICO back in August of 2017 at a price of $1.86 per STX.

Floyd Mayweather promoting the Stox ICO on his Instagram

This is also pretty well known as it was an ICO that was promoted by Floyd Mayweather. This endorsement led to a flood of interest in the Stox ICO. However, it proved to eventually be controversial in 2018 as the SEC closed in on paid promotions on social media.

Stox is trading at a considerable discount to the ICO price and was one of the biggest victims of the bear market. It is currently trading on exchanges such as HitBTC. Given that STX is an ERC20 token you can store it in any compatible wallet.

4. Delphy

Delphy is one of the newer blockchain prediction markets allowing its users to profit from their predictions regarding real-world events. Delphy caters to a global market, but is most focused on the Chinese market, and is one of the few prediction market services available there.

It also bills itself as a social platform that allows traders to come together and create their own markets. Delphy is built on the Ethereum blockchain and much like other prediction markets it allows users to profit from their predictions on a wide range of real-world events.

Delphy held an ICO back in 2017 and they were able to raise a total of $15m. Most of the trading volume on Delphy is currently taking place on CoinMex however there are also sizable markets on Gate.io and OkEX.

5. BlitzPredict

BlitzPredict is a blockchain prediction market, but unlike the others we’ve discussed BlitzPredict isn’t looking to cover every single real-time event. Instead it focuses on sports and gaming as well as politics. It’s unique in that it gives gamers a way to bet on the outcome of global matches of their favorite games. It also covers the massively popular area of sports betting. BlitzPredict is still in development and makes use of three tools:

The BlitzPredict Aggregator – This ensures everyone using the platform has access to the best odds in any prediction market on the platform.
BlitzPredict Liquidity Reserve – This tool ensures users receive their rewards immediately following the conclusion of an event, thus bypassing the delays experienced on other prediction markets
BlitzPredict Smart Contracts – This tool gives users access to the prediction market and ensures maximum efficiency

One novel use for BlitzPredict will be for analytics. Currently each sportsbook uses its own analysis tools, and this leads to many different predictions for the same event. This leads to a fragmented outlook on the outcome of future events and creates inefficiencies in the markets.

Upcoming events on Blitzpredict and the top markets. Image via BlitzPredict

BlitzPredict will do away with this inefficiency by incentivizing experts to share their information rather than keeping it proprietary. Outside users can gain access to the experts knowledge by spending XBP tokens. Experts will be rewarded for correct predictions, thus putting the best forecasters at the top while slowly ridding the platform of inferior predictors.

BlitzPredict completed an ICO in March of 2018 and they were able to raise a total $4.4m which was only 60% of their total target. Much like the other ICOs that raised in 2018, XBP tokens are at a considerable discount to their issue price. They are currently only available on the IDEX exchange and you can store them in any ERC20 compatible wallet.

6. Hivemind

Hivemind, or Bitcoin Hivemind as it is known to some, was born from Truthcoin and it is an open-source peer-to-peer prediction market based on the use of oracles. It is unique among the prediction markets on this list as it is designed as a sidechain of Bitcoin.

And rather than being focused on financial markets or sports betting, Hivemind is focused on governance issues. It believes governance problems can be easily addressed through a multi-factor decision making process which uses conditional prediction markets.

The highly ambitious project seeks to reduce issues in multi-factor decision making, and has already provided valuable insights into the capabilities of predictive markets in the realm of governance. In Hivemind the events must be resolved by voters and the decisions being voted on are either Boolean or scalar. Voters come to agreement on the decisions using the Hivemind VoteCoins. It’s not unlike the process used by Augur.

Also similar to Augur, voters are punished financially for inaccurate reporting, but rewarded for accurate results.

7. Bodhi

While Bodhi isn’t as well known as other prediction markets, it was actually the first to launch. That may be because Bodhi’s target market is China.

Bodhi is also unique because it is built on the Qtum platform, and it is the first functional decentralized application on Qtum. Bodhi has both a testnet and a mainnet and both are functional. The team is also now working on launching a version on the Ethereum blockchain.

Like other prediction markets, users can create markets on any real-world event. This is possible because of the decentralized nature of Bodhi. Chinese authorities, who are known to be authoritarian, haven’t yet said anything about this type of decentralized market, and even if they did the decentralized nature of the platform would keep it online.

Everything on the platform, from creating markets to staking against event outcomes to participating in the dispute process, is powered by the native BOT token. They completed an ICO in November of 2017 at a price of $0.37 which is slightly above the current price. The bulk of the trading on BOT is taking place on the LBank exchange and they can be stored in a QTUM compatible wallet.

Conclusion

Prediction markets are already proving their usefulness to the extent that companies such as Microsoft are taking advantage of the capabilities offered by blockchain based predictive markets. And some are calling them a better forecasting tool than any statistical model or computer based simulation.

It’s speculated they could be used to forecast stock market crashes and much more with great accuracy, and many in the blockchain community feel prediction markets are the future of predictions based on the wisdom of the crowd.

By relying on the wisdom of the crowd financial traders can do away with technical indicators, charts and trading signals. Human wisdom will tell them all they need to know about future market moves. Experts claim that by utilizing the knowledge and experience of a large sample group informed decisions and accurate forecasts can be made.

This seems to be borne out by the fact that some large organizations are already using these prediction markets for their own internal decision making and governance. There’s no telling how widely these markets will spread in the future.

Featured Image via Fotolia

The post 7 Best Crypto Prediction Markets: Betting on the Blockchain appeared first on Coin Bureau.

Crypto Custody Conundrum: The Catch 22 for Institutions

Dmitry Tokarev — Mon, 11 Feb 2019 20:23:40 +0000

The safe and secure custody of client assets is both a salient and well-established action in any developed financial market. It’s crucial that a very new and often distrusted asset class like crypto gets custody right, and if it doesn’t future growth will be significantly curtailed.

Custody is defined as the holding of securities on behalf of a client for safe-keeping. These securities are available to the custodian to sell at the behest of the client, but cannot be used by the custodian for its own account.

In this respect, it is very different from having an account with a bank. Seasoned custodian banks, like State Street and Citi in North America or BNP Paribas in Europe derive substantial fees from their custody operations.

The custodian will also often perform a range of other services, such as the re-investment of interest or dividend payments, or the proceeds of the sale of securities, according to client’s instructions. They may also provide tax support. But the key element is the safe-keeping of assets, which may be held in physical or electronic form.

Regulatory Requirement

In the US, under the terms of the Investment Advisors Act of 1940 (generally referred to as the 40 Act) investment advisors with $100m or more under management are obliged to use the services of a so-called ‘qualified custodian’. This rule is enforced by the Securities and Exchange Commission (SEC).

The 40 Act has been updated, modified and clarified several times since 1940, most recently in 2017, but its essence remains unchanged. It is worth bearing in mind that the act was borne out of the multiple bank failures and loss of investor wealth in the 1930s. It was designed to protect investment.

This act is probably the most comprehensive and binding of all regulations concerning custody, but all the leading financial markets have stipulations on custody of some kind. Moreover, it is simply good marketing for any investment manager to use the services of a reputable custodian.

Ease of Cyber Theft

Safe storage of assets has been something of a bête noire for the crypto market. At the end of June 2018, it was estimated that $1bn had been stolen from crypto-currency accounts in the first six months of that year alone, three times the rate of theft in the previous year. And once stolen, there is no getting it back. Crypto is like a bearer bond: possession confers ownership.

It’s surprising just how easy it is without any tech skill to commit cybercrimes like ransomware

Carbon Black Security strategist Rick McElroy told CNBC at the time, adding that the necessary malware to conduct such theft sells for an average of $224 and sometimes even comes with customer service.

Crypto – The Haven for Hackers. Image via Copper

The issue of reputable, trusted custody is therefore of great pertinence; but it is different from a regular, vanilla asset. In essence, custody of crypto assets occurs on the blockchain, in the internet. What is important is the security of the key.

As one noted analyst in the field explains:

In the normal world of custody, you’re looking after the assets. In the crypto world, you’re looking after keys. You own the keys, you own the asset.

So protection of the key is the crux of the issue, and the one which would be custodians need to get on top of.

To date, there are basically three options for investors in crypto: self-custody, the use of custodian services provided by the exchange on which the currency is purchased, or the use of specialised custodian.

In the retail market, only the first two are relevant, and both present their own set of advantages and problems. On the face of it, self-custody looks like the most attractive solution and one that is in keeping with the disintermediated, do-it-yourself philosophy of the crypto world. But keeping the key safe is a heavy responsibility.

Any crypto wallet makes it very clear that it is not a bank and that the safe-keeping of assets is not its responsibility. That belongs to the customer, and he or she must keep the private key safe. Very, very safe.

This presents a number of challenges. Should it be stored on a piece of paper? Or in safe deposit box? Or in an USB stick?

None of these are ideal…

Hot Versus Cold Wallets

A better way forward is the use of a crypto wallet of some kind, but this presents pitfalls as well. Offline storage of the key is generally referred to as cold storage, and online storage as hot storage.

The former is safer, as it is disconnected from cyberspace and thus less prone to bitcoin hacking, but what one gains in safety one loses in convenience as trading is only possible when the offline key is plugged into the internet. In as age of mobile devices, this is hardly ideal.

Moreover, one wallet is generally only compatible with one currency; this is far from convenient. As one analyst notes, it’s like having a different remote for every TV channel. To date, the currencies have not evinced a great deal of interest in working with each other to establish common characteristics that would allow one wallet to serve more than one currency.

Crypto Cold Storage: Keeping it Offline. Image via Copper

Understandably, a lot of retail customers find dealing with these issues too burdensome. After all, not many people choose to store their savings in cash under the bed. That is what banks are for. So, they have turned to the exchanges to perform custody. Coinbase, for example, unveiled a custody solution in June of last year, which is aimed principally at the retail market.

Some exchanges offer a multiple signature solution, so that there are, say, three keys and two have to be used at the same time for an account to be activated. One would be stored with the custodian, one with the customer and the last with a third party emergency contact.

While this takes away the responsibility from the customer, it isn’t ideal either.

Issues with the Status Quo

Exchanges don’t often have the sort of controls and separation of roles that institutional investors in particular want to see. Custody desks and OTC trading desks are sometimes on the same floor, maybe even a few feet away. It makes information leakage, and at its worse front-running of client orders, quite possible.

This isn’t what traditional investment managers are used to seeing from a custodian, and retail clients should be quite concerned too. Nor are the exchanges or the newer custodians the sort of names that major institutional investors are used to dealing with, and this is a market where tried and trusted counts for a lot.

New crypto hedge funds, as well as traditional hedge have been active in the crypto market for some time, and in fact provide a great deal of its liquidity. According to a Morgan Stanley document reported on in October 2018, there is now $3.5bn in estimated assets under management at over 250 dedicated crypto funds.

Because of the inadequacies of custody provided by exchanges, most practise self-custody, and they of course have the technology and resources not available to a retail buyer. According to one analyst, fast money accounts have become quite adept in their use of keys and dongles.

Issues of Governance

But effective, secure self-custody becomes more difficult if funds have several crypto accounts that need to be managed. These accounts have to be segregated, which poses not only technological hurdles but also ones of governance.

All this means that there are opportunities for both new custodians and traditional custodians to produce effective solutions. Indeed, it is the interest shown by hedge fund clients in crypto assets that has encouraged Goldman Sachs to indicate its interest in the space. In August 2018, Goldman announced that it was looking at a crypto custody solution, saying

In response to client interest in various digital products we are exploring how best to serve them in this space

However, by the end November, the investment bank admitted that it was no closer to being able to provide this service for clients.

“One of the things they ask me is ‘Can you hold our coins?’ and I say ‘No we cannot.’ One of the things we have to take into consideration when building our business is what we can and cannot do from a regulatory perspective,” said head of digital asset markets Justin Schmidt, at a conference in New York.

Global Governance Loopholes. Image via Copper

Fidelity, one of the most well-established and reputable custodians which administers more than $7.1trn in client assets, unveiled a crypto solution in mid-October 2018, making it the first mainstream firm to establish a foothold in this market. Its custody product includes vaulted cold storage and multilevel physical and cyber controls.

The firm said at the time that though crypto is a new asset class, Fidelity has been dealing with issues of security and safety for a long time, and was able to “repurpose” that knowledge to the crypto world. It remains to be seen whether Fidelity’s product will gain traction.

State Street has also announced that they’re looking at custody for crypto currencies, but, in general, most major custody providers all holding off at the moment. The sum total of crypto AUM is estimated to be between $10bn and $15bn and the market is seen as too small and too risky to justify investment, suggest reports.

Crypto’s Catch 22

But until established and trusted custody solutions are in place, the market won’t grow by leaps and bounds as institutional accounts stay on the sidelines.

It’s crypto’s Catch 22.

The decision to invest in crypto assets is a big one in itself, and it’s not made any easier by the lack of custody names with which these managers are familiar and comfortable.

It is something that the market needs to get right. As Justin Schmidt was reported to say at the conference in New York last November:

“Custody is this foundational piece that is absolutely necessary. Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other and you have to be able to trust all the different parts in the chain, from buying something to transferring it to storing it for the long term.”

Featured Image via Copper

This piece was written by the CEO of Copper. Copper.co was established to address a very specific problem: the lack of infrastructure servicing institutional investors who require access to digital assets. Copper’s secure offline custody, and platform for acquiring cryptocurrencies, combine to offer its customers a bespoke prime brokerage service. Operating with strict KYC/AML processes, which meet the obligations of existing financial services organisations, Copper is a trusted partner for funds, family offices, and private banks, all over the world

The post Crypto Custody Conundrum: The Catch 22 for Institutions appeared first on Coin Bureau.

CoinGecko Yearly Report: The Most Interesting Insights of 2018

Toju Ometoruwa — Thu, 31 Jan 2019 02:14:53 +0000

2018 was indeed quite an epic year in the cryptocurrency industry. From extreme market movements to exchange hacks and the constant allure of “institutional adoption“, it was a year to remember.

This was all fastidiously documented and summarized in a yearly review conducted by the team over at CoinGecko. The report is really insightful and covers numerous different topics from adoption to technological advancements and regulation.

I decided to pull some of the most interesting insights from the report and succinctly summarize these statistics and insights. Let’s take a quick look at one of crypto’s most memorable years to date.

Market Dynamics

2018 saw the price of Bitcoin fall from 19,000 to $3,100, while most Altcoins lost as much as 90% of their value. From 700 billion to 150 billion, the crypto markets experienced a 78.85% decline in market cap.

Despite these figures, trading volume remained consistent for most of the year, which can be attributed to the growing number of exchanges in the space, as well as an increasing level of global interest in the crypto markets.

As many investors sold their coins, many more decided to sign up to exchanges and become day traders, taking advantage of the high volatility that is unmatched by most other asset classes. This spike in day trading activity most likely contributed to the consistent trading volume.

Total Market Cap Performance in 2018. Source: CoinGecko

Quarter 4 of 2018 saw a 44.25% drop in the crypto market cap. This was around the time where Bitcoin had finally broken the $6,000 support level after months of speculation. Many bearish trading analysis (including popular crypto trader Tone Vays) predicted that the price of Bitcoin would drop below $6k and reach the $5k level.

If the $5k level was broken, they anticipated that we could go as low as $3,000. At the time, most people thought $3k would be for too low for investors to not take advantage of. Yet 2 months later we are still ranging in between the $3k and $4k level without any clear signs of a breakout in either direction.

The top 5 coins in the crypto market lost between 66% and 93% of their value:

BTC: -73%
ETH: -82%
XRP: -84%
BCH: -93%
EOS: -66%

Altcoins clearly suffered worse losses than Bitcoin. In the beginning of the year, bitcoin dominance among the top 30 coins was at 44%. By the end of the year it went up to 55%.

Ultimately, if there’s one thing that was clear about the markets in 2018, it’s that it paid to stay bearish.

Crypto Exchanges

As more traders flocked into the crypto space in 2018, the number and trading volume on crypto exchanges exploded.

In quarter 4, the top 5 exchanges (ranked by trading volume) were Bithumb ($1.42B), ZB.com ($894m), Binance ($778m), OKEx ($599m) and Exx ($493m). It should be noted that trading volume is not always easy to verify and can often be faked.

In fact, another report that came out in December listed several popular exchanges along with their real trading volumes. Of all the top exchanges, only the Binance Exchange, (ranked #3), Bitfinex (ranked #16) and Liquid (ranked #29) showed 100% real trading volume.

Crypto Exchange Rankings in 2018. Source: CoinGecko Report

This calls into question how much of the volume in the crypto space is organically created by real traders, and not a result of wash trading (the act of selling coins back and forth yourself in order to manipulate trade volume).

Unsurprisingly, exchanges with transfer free mining were more dominant in 2018 due to the ability for traders to maximum profits by not having to pay transfer fees.

Q4 Major Events

Several major events defined the crypto space in 2018. Though a few stories were setbacks, the overall consensus was that we were edging closer to mainstream crypto adoption.

Government

South Korean regulators, once known for being very pro crypto, became more restrictive on ICO’s as the market declined rapidly and many of South Korea’s top ICO’s failed to perform.

The UAE took a more optimistic viewpoint, and chose to embrace the ICO model as a way to boost capital markets..

In the US, the state of Ohio took a giant leap in accepting Bitcoin as a form of payment for taxes. This story was impressive because it showed that some lawmakers are willing to put in the effort to understand and embrace new technologies, but it was also ironic because of the fact that BTC has long been used as a tool to avoid reporting income and paying taxes.

Ohio lawmakers likely understood this and thought they would at least create a window for Bitcoin holders who may be scared to convert to US dollars and get audited to willingly pay their taxes through BTC.

Stablecoins started to see mainstream adoption over in Brazil, as the countries Bank began using the Ethereum blockchain to issue a stable coin.

Venezuela moved forward with their plans to adopt their own cryptocurrency – the petrodollar, which was presented at OPEC as the digital currency for oil.

Switzerland continued to demonstrate why they are miles ahead of other countries when it comes to crypto adoption by unveiling a legal blockchain framework in crypto valley association partnership.

Crypto

The bitcoin blockchain achieved a major breakthrough, claiming that block size increases would now be possible without a hard fork.

The Bitcoin cash split was arguably the most controversial story in crypto during 2018. The battle of egos between Craig Wright and Roger Ver was hard fought on both sides, and ultimately ended in a permanent split and the creation of 2 new coins: BCHABC and BCHSV. Based on the current prices, it doesn’t look like either coin faired better.

Lifestyle

Google CEO Sundar Pichai revealed that his teenage son is an Ethereum miner, while big name celebrities like DJ Khaled and Floyd Mayweather were both charged and fined by the SEC for shilling fraudulent ICO’s.

Mayweather agreed to pay $300,000 in disgorgement, a $300,000 penalty, and $14,775 in prejudgment interest. Khaled agreed to pay $50,000 in disgorgement, a $100,000 penalty, and $2,725 in prejudgment interest.

Upstarts

Several crypto startups were forced to layoff employees, including big names like Steemit, Civil, Consensys and one of Ethereum Classics development teams.
Binance announced their first crypto-fiat exchange in Uganda.

Crypto Thefts

Despite the security benefits that blockchain technology can bring, the crypto space experience dozens of high profile hacks that cast doubt on the ability for companies and individuals to secure their funds on crypto wallets any better than they would in Banks.

The estimated total loss of funds due to security breaches and scams in 2018 was $867.5 million, 50% more than all the previous years combined.

Some notable hacks and scams include:

The Coincheck theft: $400m (500m XEM) was stolen
Coinhoarder Phishing Scams: $50m
BitGrail Theft: $170m (17m NANO)
BTC Global Ponzi Scam: $50m
Bithumb Hack: ($31m)

ICO Insights

The ICO market may seem like it had hit its peak in 2017, but it was actually 2018 that saw more money raised by more projects and a larger number of successful projects. Unfortunately, the average token return per project was significantly less in 2018 compared to 2017:

Some ICO statistics from 2018. Source: CoinGecko Report

Singapore was the country with the most ICO’s at 228. United states claimed second with 195, the UK was third with 165, and the tiny country of Estonia was fourth with 112 ICO’s. A total of 247 ICO’s came from a random assortment of other countries, showing that the market for ICO’s had truly become a global phenomenon.

2018 saw a total of 943 projects completing their fundraising with average amount raised of USD $17.59 million. The most successful month for ICO funding in 2018 was June with $5.89 billion raised. This was the same month that EOS finished their year long ICO raise to claim the largest fundraising of the year at $4.2billion. The least successful month was December, with just $305m raised.

Stablecoins

Stablecoins became a trending topic in the crypto space last year. These are digital assets that aim to offer price stability to the cryptocurrency market by mirroring the value of traditional fiat currencies or assets.

They primarily function as a store of value particularly when crypto market prices are dropping and investors want to retain the current value of their Bitcoin or Altcoins. These are also an easier unit of account because they are pegged one to one fiat currencies (so instead of counting your money in Satoshi’s, you can count it in dollars or Euros).

The top 5 stable coins by Market cap in 2018 were Tether (~$2billion an a 75% market share), TrueUSD (~204m and a 7.4% market share), USD Coin (~$248m and a 9.1% market share), Paxos Standard or PAX (~$144m and 5.3% market share) Dai (~$69m and 2.5% market share).

TUSD, Dai, USDC and PAX grew by 30x, 20x, 15x and 10x respectively in 2018. Tether (USDT) lost significant dominance in 2018, only growing by 1.5x. This was largely due to the many scandals the stable coin received, including accusations that it did not have enough US dollar funds to match the number of Tether coins it was printing.

Bitcoin Cash Split

The Bitcoin Cash fork was arguable one of the most controversial events to occur in the crypto space in 2018. Bitcoin Cash was to designed to fork their blockchain every 6 months and implement a new software upgrade to include changes proposed by the open-sourced developers.

The conflict started when Bitcoin ABC Lead Developer, Amaury Séchet proposed a change to the November fork

New opcode called OP_CHECKDATASIG which enables validation of messages from outside the blockchain and enables oracles and cross-chain atomic contracts.
Canonical transaction ordering (CTOR) for massive scaling improvements in the future.

Dr. Craig Wright (founder of NChain) was against the proposal and disagreed that Bitcoin Cash should be used for non-cash transactions.

https://twitter.com/proffaustus/status/1063049555493769216

The disagreement ultimately led to a fork that would split Bitcoin Cash and created 2 new coins: Bitcoin ABC and Bitcoin SV. BCHABC now trades at $117, while BCHSV trades at $66.69. Prior to the split, Bitcoin cash was around $500-$600, so it’s clear that for now, the decision to split coins was not beneficial to the value of BCH.

Decentralized Apps

One of the things that make blockchain like Ethereum, EOS and Tron so popular is their utility as platforms for launching Decentralized apps (or Dapps). Many people believe these Blockchains can be for Dapps what Apple app store is for Apps. However in 2018, the numbers showed that the crypto space still has a long way to go before it can match the level of activity that the App store brings.

2018 only saw 1,432 Dapps being launched (1,045 for Ethereum, 235 for EOS, 97 for TRON and 46 for STEEM). The total number of unique Dapp users was only 1.4 million, with 279m total transactions and $6.7billion transacted. All though these numbers may seem high, when spread cross 1,432 Dapps, we’re only looking at ~977 users per Dapp, 194k transactions per Dapp and ~$4.5m transacted per Dapp.

The good news is the area of focus for Dapps began to spread out in 2018. In January, games accounted for a little over 50% of app Dapps, but by December, the dominance of games was reduced to around 30%, with more Dapps focused on Betting, decentralized exchanges, social networking and financial services starting to emerge.

Security Tokens

Arguably the second most hyped innovation after stable coins was Security Tokens. These are basically a digital representation of a security, such as a stock, bond, piece of artwork or any other traditional asset.

Security tokens have promised endless possibilities for investors because of the ability to take assets that have been traditionally only been accessible to the financial elites, and convert them into crypto currencies that can be traded in the same manner as Bitcoin or any other Altcoin.

Some of the assets that can be tokenized. Source: HackerNoon

Through Security Token Offerings (a fundraising mechanism similar to ICO’s) billions of dollars can enter the market to fund previously exclusive traditional assets, and also fund business and initiatives that may have struggles to acquire funding through the traditional routes (IPOs, Venture capital, etc).

Masternodes

Masternodes are cryptocurrency full nodes or computer wallets that keep the full copy of the blockchain in real-time. The number of master nodes and master node coins increased significantly quarter-on-quarter with double digit growth in Q2 and Q3 and triple digit growth in Q1. Masternode coins increased from 57 to 536, while Masternodes increased from 35,780 to 250,307.

However, although the number of master nodes and masternode coins increased their values decreased significantly in 2018, from $12.5billion to $530m market cap for Masternodes. Dash and PIVX were the top 2 Masternodes for 2017 and 2018.

Non-Fungible Tokens

Finally, Non-fungible tokens (ERC-721 tokens that offer unique characteristics which make them different non divisible and digitally scarce) continued to make noise in 2018.

Crypto Kitties were the first digital asset to prove the importance of scalability on the Ethereum blockchain. These non-fungible tokens continued to show heavy trading volume all through 2018, with $14.3million in trading volume.

Decentraland, the virtual reality marketplace for buying property saw $27m in trading volume. Non-fungible token sales also made headlines, with a piece of land on the Decentraland platform being sold for $175,578, and a Cryptokitty being sold for $172,794. In addition, the total number of NFT communities expanded from 10 to 50.

Conclusion

Overall, the crypto space experienced a variety of exciting events and saw growth in several areas that were not directly linked to price.

As more effort is put into development of Dapps, security tokens, Stablecoins and crypto legislation, we will ultimately arrive a place where the price of the crypto markets start to reflect its true value.

So, 2018 was indeed quite a year in the relatively young life of cryptocurrencies. Indeed, if the first month of 2019 is anything to go by, we are likely in for another exciting and eventful year.

Featured Image via Fotolia

The post CoinGecko Yearly Report: The Most Interesting Insights of 2018 appeared first on Coin Bureau.

Emerging Market CryptoCurrency Adoption – What Needs to Be Done

Tom Alford — Fri, 21 Dec 2018 16:22:49 +0000

Everyone is talking about cryptocurrency adoption and how it could disrupt the entire financial system.

This talk gains traction with every additional fiat currency experiencing growing inflation rates. In countries like Venezuela, it appears that fiat has crossed the point of no return and that when the collapse of the nation’s monetary system is a question of ‘if’, not ‘when’.

However, the fiat currency crisis is an opportunity for cryptocurrency to increase adoption rates and provide people with an alternative system.

The big question is: ‘What is the best way to sow the seeds of cryptocurrency adoption?’

The Case For Crypto Adoption

Cryptocurrency in its purest form is proposed to act as digital cash. This was outlined in the Bitcoin whitepaper over ten years ago. In short, this means that cryptocurrency is envisioned to act as a medium of exchange.

The Technology Adoption Curve

So, why could cryptocurrency be better than fiat currency?

Accessible: 28% of the world’s population (2.2 billion people) are unbanked and excluded from the current financial infrastructure. Unlike bank accounts, cryptocurrency does not require you to fill in an application form to allow transact or store value. Instead, anyone with an internet connection can use crypto and transfer value anywhere in the world
You’re in control: With the traditional financial system, you entrust your funds to a third party like a bank. If the bank you hold your money in goes bankrupt and the government can/will not bail out account holders, then you will lose your funds in your account. With cryptocurrency, you are the true owner of your funds and you don’t have third-party dependency.
Fast transaction settlement: Have you ever sent money overseas and noticed it takes a few days for the transaction to go through? Well, that’s not only annoying, for businesses this slow speed can cost time and money. With cryptocurrency, transactions can be settled within minutes.
Secure: Ledgers are stored on blockchains. This method of record keeping has been shown to be exceptionally secure. For example, the Bitcoin ledger secures around $200 billion worth of value and has not been compromised at any point during its ten year lifetime.
Protection against fraud: Cryptocurrency transactions are stored on a public ledger. This means that no centralized party like a bank or government have any control and that nefarious actors cannot fraudulently edit the ledger for their own benefit.
Secure: Ledgers are stored on blockchains. This method of record keeping has been shown to be exceptionally secure. For example, the Bitcoin ledger secures around $200 billion worth of value and has not been compromised at any point during its ten year lifetime.
Inflation Resistant: Most cryptos have a capped supply. Unlike fiat currency, cryptocurrency doesn’t allow for the endless printing of money. In theory, this should protect people’s purchasing power as more people adopt crypto.

Current Crypto Adoption Levels

So, where are we now in terms of cryptocurrency adoption? The truth is that we currently have exceptionally low levels of global crypto adoption rates.

Bitcoin is undoubtedly the world’s most popular crypto and data shows that there are only 22.9 million Bitcoin wallets in existence. Given there are 7.7 billion people on the planet, this means there is one Bitcoin wallet address for every 336 people.

Crypto Adoption rates in countries. Source: Stata

That’s an exceptionally low global rate of adoption, particularly when we consider:

A significant number of Bitcoin owners hold more than one Bitcoin wallet.
15.5 million of the Bitcoin wallet in existence contain less than $1 worth of Bitcoin.
Only 2.5 million wallets hold more than $100 worth of Bitcoin.

Yes, many people might have heard of cryptocurrency in mainstream news. However, the numbers do not lie. The truth is that only a tiny fraction of the world’s population are in cryptocurrencies right now. If you own $100 worth of Bitcoin, then you can already count yourself amongst the top 2.5 million richest Bitcoin wallet holders.

It’s true that there are over 2,000 other cryptocurrencies out there and Bitcoin is by no means the only one. However, the point is that levels of cryptocurrency adoption may be lower than you think.

Where Is Mass Crypto Adoption Most Likely?

The vast majority of cryptocurrency projects appear to be taking the approach of ‘If we build it, the people will come’. Sure, this may be a reasonable strategy. However, is this is the best strategy and could we do more to help educate people on the benefits of cryptocurrency?

The inconvenient truth is that the majority of the cryptocurrency market is made up of participants living in developed countries. Mostly the USD, EUR and GBP work just fine as a medium of exchange.

It is true that some are ideologically opposed to these government-issued currencies. However, the point is that there is no real pressing need for the majority of the population to look for an alternative money system. Instead, crypto is mainly being used as a method of speculation.

Things are different in communities located in places like Venezuela, Argentina, and East Africa. Here, there are a significant number of communities that are affected by the following problems:

Poor Payment infastructure
High proportions of the population are unbanked
High levels of inflation

It is these types of communities that could have the most practical use case for crypto. In our opinion, these are the types of locations that are the most likely to mass adopt cryptocurrency in the near future.

Are Those With Banking Or Currency Issues Adopting Crypto

Venezuela is perhaps the clearest example of a society experiencing both banking and currency issues.

Capital controls: The government had imposed caps on ATM withdrawals, limiting citizens to cash withdrawals worth $1 per day.
Unbanked: According to The World Bank, out of the 31.6 million people living in Venezuela, 9.5 million are unbanked. That’s 30% of the entire population.
Hyperinflation: The IMF has warned that Venezuelan inflation could hit one million percent in 2018.

8 Tomotoes or wads of cash?. Image via Carlos Garcia Rawlins/Reuters

Venezuela is an extreme case. However, it does provide an interesting overview of whether these types of economic conditions encourage the adoption of crypto.

So what do the stats tell us?

Well, it is exceptionally difficult to get cryptocurrency trading volume data by country. The reason why is that the majority of trading happens on:

Cryptocurrency exchanges: Who don’t release stat breakdowns by country.
Over the counter trading: It’s been speculated that more cryptocurrency trading happens on the OTC market than on cryptocurrency exchanges. Because the transactions happen off-exchange, there is no true transaction volume record of this type of trading.

However, the peer to peer crypto trading service, LocalBitcoins, does release trading data by country. With Venezuela’s hyperinflated currency it is frankly a meaningless task trying to assess Bitcoin trading volume versus the Bolivar.

Local Bitcoins trading volume in Bolivar Image via coin.dance

When we look at Venezuelan trading volume in Bitcoin it becomes apparent that there has certainly been an increase in demand.

Local Bitcoins BTC trading volume in Venezuela. Image via coin.dance

We can see from the chart that monthly Bitcoin trading volume has doubled from around 2,000 Bitcoin in June 2018 to 4,000 BTC per month in November. Now that may not sound like very much.

However, we must be aware that LocalBitcoins (which this data is based on) probably only makes up a fraction of the true cryptocurrency trading that’s happening in the country. Also, oppressive capital controls and the devaluation of the Bolivar mean that its harder for locals to buy Bitcoin (or any other cryptocurrency for that matter) in the first place.

In the case of Venezuela, the data seems to support the idea that worsening economic conditions have resulted in increased interest and adoption of cryptocurrencies.

Current Emerging Market Adoption Efforts

Many of you have probably heard about how Dash Core Group employees are giving away the cryptocurrency in Venezuela and how Dash ambassadors have successfully persuaded businesspeople to accept the crypto.

There are certainly many different cryptocurrencies that are now focusing on adoption efforts in emerging markets. However, there are questions over the Dash Core Group’s tactics and sustainability.

Is an even better way to sow the seeds of cryptocurrency adoption in these types of communities?

What is Nimiq?

Most people probably have never heard of Nimiq (NIM) before. To understand how Nimiq could make a big contribution to overall cryptocurrency adoption efforts, you will need to understand what the project is all about.

Nimiq is a browser-based Blockchain designed for simplicity. Nimiq’s reason for existence is to bring the benefits of blockchain technology to the mainstream audience.

To achieve that purpose, Nimiq has been built from the ground up to address and break the barriers to entry that stop the mainstream adoption of blockchain technologies. Nimiq is encompassed by a strong philanthropic mindset and so will always remain open-source and community-driven.

Nimiq’s core features are:

Minimalistic UIs, optimal UX
Explanations and user guidance when needed
Onboarding procedures for new users and users new to crypto
Runs Installation free in your browser
Native mobile apps will also be available
Design and language that appeals also to non-technical people
Local community moderators speaking your language
Offering UIs in multiple languages
Aiming specifically for markets with troubled fiat systems

Nimiq is Crypto made simple. Nimiq aims to be the best performing and easiest to use decentralized payment protocol & ecosystem.

The project is striving to combine state of the art blockchain research and web technology. Nimiq is browser-based and that means that no installation of apps is required.

How Could Nimiq Contribute To Crypto Adoption?

There are many projects out there trying to help with adoption efforts in communities facing banking or currency issues. However, the general strategy seems to be to distribute crypto in the affected area.

African Bitcoin adoption. Image Source

Nimiq has recently announced that it’s considering an ambitious cryptocurrency adoption proposal that goes beyond mere adoption. The plan proposes to set up a case study in a location challenged by both currency and banking issues. It’s been put forward that the deployment phase should be made up of three parts:

A local exchange: To convert local currency to crypto and from crypto to local currency.
A real-world airdrop: Where crypto is distributed to the local population as a gift. Similar to other cryptocurrency initiatives like Dash, this is to encourage free enterprise in the community and act as a local stimulus package.
The incubator: Focused on promoting local economic growth by supporting locals with the resources and support to create online businesses to participate in the global digital economy.

Aside from the incubator, this does not appear to be a particularly new idea. However, where the plan sponsored by Nimiq differentiates itself from others is in proposing:

Open source: The comprehensive plan also involves allowing the cryptocurrency community to further refine and improve it.
Scientific methods: It’s been proposed that academics in economics and technology would play a key role in providing additional feedback to refine the plan and that Nimiq should open up the case study up to academic research. The plan also puts forward that it’s important to consult academics in the field of anthropological research on alternative physical currencies to help further enhance the case study.
Academic value: The reason why most academic research has been focused on the technical aspects of blockchain is due to the lack of real life, crypto adoption case studies. If the plan goes ahead, Nimiq would not only offer academics the chance to study a real-world crypto adoption case study, but it’s also actively inviting them to shape the case study to meet their research requirements.
Promoting economic growth in the case study: The proposal has also thought about human development in the case study area. The plan proposes the creation of an incubator, providing access to computer equipment and teaching locals how to build online businesses. It’s also been proposed that incubees are given a years salary so that they can focus all their efforts on building their businesses. The interesting thing about this concept is that if successful, this will inject new money into the local economy and boost local economic growth.
Collaborations with charities and entrepreneurs: It’s also been put forward that local charities could assist with the deployment of the case study and provide crucial insight into the optimization of the plan. This seems to make a lot of sense. When it comes to engaging with the entrepreneurial community, the plan suggests that this group would be targeted to help run the incubator through running online seminars. A bit like an interactive Ted-Talk.

What Plan Has Been Proposed?

Nimiq has stated that the proposal is currently being evaluated and that it is a living document, meaning it is open to further input from the cryptocurrency community, charities, entrepreneurs and academics.

Indeed, the Nimiq team themselves report they are “assessing the ideas and any decision on whether to proceed even with phase one would only be made after receiving community feedback”. We have briefly broken down the phases for you:

1. Additional research phase: identifying a case study location, charities & academic help.

Objective: To locate the case study areas with the highest probability of cryptocurrency adoption and assess the availability of local charity help to deploy the case study.
Method: Use of qualitative and quantitative research. This could include collaborating with academics specializing in money, exchange, value, creativity, and social movements.

2. Outreach To – Charities, Academics, Gatekeepers & Entrepreneurs

Objective: To form partnerships to help with case study deployment and further enhance the academic value of the initiative.
Method: Outreach.

This phase includes forging partnerships with the following:

Academics: To further optimize the plan and ensure that the case study provides as much academic value as possible.
Gatekeepers: Are people who would be in charge with the day to day operation of the case study.
Local Charities: To confirm previous research, provide additional insights and collaborate on the deployment on the case study.
Entrepreneurs: To help support the local incubator and upskill locals with the necessary skills required to build competitive businesses.

3. Case Study Deployment

Objective: Establish the case study in the target area.
Method: Carry out proposed deployment actions.

The actions outlined in the plan include:

Educational onboarding video: The creation of a video to teach locals about cryptocurrency at scale. Interestingly, the plan proposes to create another video geared towards local entrepreneurs and explaining the benefits of accepting cryptocurrency as a payment method.
Setting up a local exchange: There is a wealth of detail in the proposed plan and particular attention has been given to both safety and security.
Onboarding the local population: It’s been outlined that locals should be shown the onboarding video and participate in Q&A sessions before being given their air dropped crypto.
Setting up the incubator: A phenomenal level of detail has been given on how this would work, the selection process and rules for the incubator. The proposal is publically available for those of you interested in the detail of the incentive mechanisms.

Benefits of Nimiq

It appears that Nimiq intends to target communities where their cryptocurrency has the biggest advantage. The strategy plays to NIM’s strengths and gives the case study the best chance of success (if it goes ahead).

This means that the target community should see value in the following:

Fast & Easy Transactions: Nimiq’s focus on simplicity should help it get adoption in a wider range of communities than more complex cryptos.
Low Transaction Fees: Currently, transaction costs are less than one cent.
Browser-based: The interesting thing about NIM is that no downloads are required to use it. That’s actually a massive deal in areas where there is poor connectivity and low laptop/desktop ownership. Nimiq helps lower the pain point around this barrier to adoption and this indeed might be the cryptos biggest strength.

Final Word

The debate on cryptocurrency adoption is only set to intensify as more fiat currencies experience rapid inflation and the crypto space matures. After all, if cryptocurrencies truly are the future, then adoption needs to happen at some point.

Without it, the crypto-sceptics in mainstream media will always point to adoption failures as evidence that the crypto experiment has failed.

Nimiq may have sponsored one of the most comprehensive and focused plans for cryptocurrency adoption. If they choose to move ahead and can get the crypto, academic, charitable and entrepreneurial communities on board, we think that the mainstream will begin to see why crypto should be taken seriously.

Nimiq’s idea of open sourcing the adoption proposal and allowing anyone to contribute could play a massive role in the future of crypto adoption efforts, by allowing others in the future to build upon this research. After all, what we are missing in crypto adoption is a map. If the plan goes ahead, it seems likely that Nimiq will play a key role in creating this initial blueprint.

Even if the Nimiq team fail in their adoption efforts, this groundwork could certainly be built on to help other projects in future adoption efforts. That’s why Nimiq has the potential to make a big contribution to crypto adoption and why it is a worthwhile initiative to support.

Featured Image via Fotolia

Disclosure: The author holds some NIM in their portfolio and is compensated in a long-term independent consulting capacity by Nimiq. This article must not be construed as investment advice. Always do your own research.

The post Emerging Market CryptoCurrency Adoption – What Needs to Be Done appeared first on Coin Bureau.

Interview with Crypto.com CEO, Kris Marszalek – MCO Cards, Roadmap & More

Editorial Team — Wed, 19 Dec 2018 01:28:24 +0000

Crypto.com (MCO) is trying to make cryptocurrency purchases as easy as swiping a card.

This Fintech company, which is based in Hong Kong, is one of the first projects to fully roll out a cryptocurrency linked Visa card. This will allow holders to use their crypto for purchases just as easily as they do with their standard cards.

Previously called Monaco, the company completed a succesful ICO last year where they issued their MCO utility token. Earlier in the 2018, they made headlines again as they purchased the highly valuable crypto.com domain name.

The re-brand and the growth of the project intrigued us.

Interview with Kris Marszalek

Kris Marszalek. Image via Twitter

Given that we had previously covered Monaco (MCO) and more recently the rebranded crypto.com, there were we number of questions that we had for the team.

We wanted to get a better sense of their roadmap, regulation, products and broader vision for the future of cryptocurrency. We were fortunate enough to have the crypto.com CEO, Kris Marszalek, answer our questions.

Here they are in full:

Let’s start with most simple question… Why the name change? Was the community overall supportive of it?

Crypto.com gives us a powerful new identity in line with our original vision of cryptocurrency in every wallet. As the name is also representative of the entire space, it comes with a huge responsibility to carry the torch.

We’ll strive to deliver impact worthy of the name and build infrastructure that enables growth of the ecosystem, delivering on the promise of a decentralized future. Crypto.com is simple and clear, and we can now leverage on the powerful domain to accelerate the world’s transition to cryptocurrency.

You say that in October, 100k MCO cards were shipped in Asia. Given that we are now halfway through November, how many have been shipped?

We said that we had plans to ship over 100,000 MCO cards globally, and currently have cards shipping to customers in Singapore.

Let’s talk about geographic expansion. You have recently announced a partnership with Metropolitan bank in USA, how long before we see USA residents can order their cards? How many orders could we expect to see?

We’ve recently announced that our MCO Visa Cards program has received the green light in USA, and we are now making preparations with our partner, Metropolitan Commercial Bank, to launch the cards. We want cards to roll out as soon as it can, and are getting ready to start processes such as shipping address verifications and such.

Are there any regulatory hurdles that you still have to overcome in order to launch this in the USA or have you properly ticked all of your boxes?

As a company with compliance as a core competence, we’ve certainly ticked all the boxes before launch, just the way we did with Singapore. We don’t need to secure any additional licenses before cards begin shipping to customers.

What about Europe? This appears to be on your timeline to occur before the USA. When could European MCO users eventually be able to order their cards.

European users can already reserve their cards on our Crypto.com Wallet & Card App. European launch remains a top priority for the team, but we can’t comment on exact launch dates.

You have recently added Ripple (XRP) as an option for the wallet users. What other tokens are in the pipeline?

Our focus will be on adding quality, compliant tokens. The Crypto.com team is constantly reviewing coin projects. We are also open to nominations for listings at crypto.com/en/listing.html

Keeping with Token listings, one of the features that you are about to add is that of users “voting” for the token that they would like to see. Can any token be voted on or do they first have to meet some minimum criteria?

We will likely list a number of highly liquid coins and then proceed to community voting for additional tokens. This is on our development roadmap and will be seen in 2019.

Crypto Invest looks like an interesting proposal indeed. You say that it will use Algorithmic trading strategies for the user’s portfolio. Can you shed some more light on this? What strategies specifically could be considered? Can users adjust their own parameters for risk / return?

Crypto Invest utilizes a number of strategies, one of the basic ones is switching between stable coins or even hedging via short positions when the market signals downward momentum and switching back to long positions when the trend reverses.

We’re testing and adding new strategies, which should result in improved performance over time. Users who are interested in the product need to go through an onboarding process and pick their portfolio type (conservative, balanced or growth).

Sticking with Crypto invest, which countries will this be rolled out to? There are restrictions on those users who are based in Europe, the USA and Singapore. When will these jurisdictions also be able to benefit from this?

Our legal teams are continuously reviewing the regulation on jurisdiction by jurisdiction basis and when it’s possible, we will enable this feature for users. At this time, on advice of our counsel, these jurisdictions are excluded.

Let’s talk about UDSM. It looks like your own alternative stablecoin that will keep the USD value of the users funds. Will these be fully backed by USD equivalent?

USDM gives our users ability to move to dollar-pegged safety when crypto markets move down. Our platform hedges these trades by buying a basket of stable coins that have solid reputation. Users can’t withdraw or send USDM, it’s only for trading purposes exclusively on Crypto.com platform.

While Crypto.com is providing a revolutionary service, there may be concerns around centralisation of services. Some users will even say that you look much like a normal bank or centralised exchange. What would you say to them?

Whenever it is technically possible to give the private keys back to our users, while maintaining the same speed, cost and security of our service, we will do so. It’s one of our ultimate goals.

You say that there could be some exciting airdrops for the MCO community. Can you give us a bit more info on this?

We’re going to start listing new digital assets soon and some of them will be rewarding MCO community with airdrops.

We’ve also announced recently a monthly airdrop of Crypto.com Chain token (CRO), which will be distributed to holders of MCO tokens within Crypto.com app, based on a snapshot of 1st day of the month.

The airdrop proved to resonate with the MCO community, with the 1st snapshot resulting in over 3M MCO tokens being moved to the Crypto.com App.

Is there anything that you guys are particularly excited about that is on your roadmap.

We have recently shipped cards in Singapore, next on the roadmap is US and EU, the team is also making progress on other key markets like Australia, Canada and Asia. More detailed info about launch dates will be provided when local card programs are ready to go live.

What do you see as the biggest challenges to cryptocurrencies in general? How is Crypto.com countering these risks?

In order for the cryptocurrency market to grow from current 50m users to 500m and more, we need to move from using crypto for speculation to actually using it as a means of payment. That’s what we’re 100% focused on.

Conclusion

Given that Crypto.com has already started shipping their cards, they reached an important milestone. Indeed, it looks as if 2019 could be quite an exciting year for the company as they roll out their cards in other jurisdictions.

While navigating the numerous regulatory hurdles will be challenging, Crypto.com appears to have the right legal strategy to tackle these issues and take crypto adoption to the masses.

If you wanted to keep updated with developments out of Crypto.com, they are very active on their official blog as well as on their twitter account. MCO can be bought on a number of exchanges such as Binance and Bittrex.

Featured Image via Fotolia and Crypto.com

The post Interview with Crypto.com CEO, Kris Marszalek – MCO Cards, Roadmap & More appeared first on Coin Bureau.

3 Real World Applications of Zero Knowledge Proofs

Mike Jenkins — Fri, 26 Oct 2018 01:27:50 +0000

Applying cutting-edge technology can be extremely challenging, especially when the technology itself is not trivial to explain.

It is also much harder to raise awareness for technology that is extremely complex and highly theoretical. And, in order for the adoption and use of any technology, awareness is key. One cannot build ground-breaking applications if you are unaware of the latest theoretical constructs.

One example of such a technological construct is that of zero-knowledge proofs (ZKPs). This is a ground-breaking technology that has numerous applications for blockchain and non-blockchain use cases.

In this short post, we will take a look at some of the most relevant use cases for the technology in today’s day and age.

Overview of Zero Knowledge Proofs

ZKPs are cryptographic methods that allow someone (the verifier) to validate a claim done by a second party (the prover), without requiring the prover to reveal any underlying information about the claim. Decentriq created a blog series on ZKPs if you wanted more information.

ZKPs have only recently gained more public attention with the rising interest in blockchain technology, despite the technology being first described by Goldwasser, Micali and Rackoff in 1985, over 20 years before the publication of Satoshi Nakamoto’s whitepaper on Bitcoin.

Source: Twitter

Only now in 2018, more than 30 years after its inception, is it being widely used in a practical way. It also has number of high profile backers including Google’s co-founder above.

ZKPs Use Cases

Data integrity, data privacy, and verified computing are key challenges and opportunities in a technology-driven environment.

Whenever we exchange data, we are exposed to the possibility of a data breach. Moreover, the data receiver has to ensure the integrity of the data that is being sent his / her way.

This then presents us with a perfect use case for zero-knowledge proofs (ZKPs) and their verifiable privacy enhancing technology.

Of course, it is harder to understand the implications of such technology from a purely theoretical perspective. Hence, we have decided to gather three of the most relevant use cases of ZKPs today.

Zero-knowledge is a transformative technology, with applications ranging from on-chain scalability and anonymous voting to preservation of sensitive information in B2B data exchanges – Valentin Ganev

Anonymous Verifiable Voting

When it comes to distributed ledger technologies, establishing clear governance protocols has always been difficult. To ensure appropriate on-chain governance structures, anonymous and verifiable voting is crucial.

Voting is also an essential part of every democracy from that of a country down to the shareholder participation of a company. Hence, with nations moving towards digitization and with the proliferation of security tokens, the demand for secure and anonymous voting solutions is bound to increase.

Here, ZKPs offer a promising solution.

Source: Santeri Viinamäki

This is specifically down to how ZKPs deal with anonymous verifiable voting. By recording votes on a public blockchain, there is no longer a need for a trusted third party to verify the results. Moreover, the possibility of any sort of censorship is eliminated.

Using ZKPs, eligible voters can prove their right to cast a ballot without revealing their identity, making the voting system anonymous. In addition, ZKPs allow voters to request a verifiable proof that their vote was included in the final tally by the entity reporting the results.

This makes the vote results auditable by the electoral body, even if the votes themselves are not visible on a public blockchain.

Private Exchange & Settlement of Digital Assets

Indeed transparency on the public blockchain was one of the factors that gave it trust, it has major drawbacks. While some data should be available to be publicly verified, there is a whole host of other information that is better kept private.

One of these is the exchange of a digital token such as an equity token.

Including a privacy layer is essential to ensuring that the amount being transacted and the participants taking part in every transaction remain undisclosed. ZKPs solve this pain-point. With all of the pertinent transaction information hidden, problems such as order front-running are easily avoided.

Furthermore, if there is ever a need for auditing of particular orders then this functionality can also be included.

For example, in terms of the settlement of assets, best execution of an order can be verified without disclosing the complete order book. This allows for an efficient audit procedure as the verification process is automated. This will also minimize the risk of disputes between counterparties.

In addition, it allows the exchange operator to keep sensitive information secret, if required. This technology can be applied on both centralised and decentralised exchanges.

Source: Fotolia

This is particularly relevant now as a number of exchanges are developing their own blockchain based decentralised alternatives. If they were to include ZKP technology into these decentralised exchanges (DEXs) then they could further assuage their clients and their need for privacy.

Privacy on Public Blockchains

Public blockchains such as Ethereum, Cardano and Tezos are already quite advanced protocols. However, in order to unlock their full potential data privacy needs to be enabled. No company that requires privacy for their valuable data will use a completely transparent blockchain.

For example, when it comes to companies that use the blockchain to track their supply chain they would prefer to keep their valuable supplier information private. Hence certain privacy layers need to be implemented. This also applies to private enterprise level blockchains.

ZKPs are able to provide this necessary privacy.

In the case of blockchains a certain implementation of ZKPs is currently in use. These are zk-SNARKS, which are built into the protocols of a number of blockchains currently. These include the likes of Zcash, Horizen and Komodo.

Not only can they help to shield information on a public blockchain but they can also help reduce the problems related to scaling.

For the new story, @VitalikButerin told me he believes that zk-SNARKs, the tech that Zcash is built on, “are the single most under-hyped thing in cryptography right now.” High praise. pic.twitter.com/TKAQahF2Dz

— Robert Hackett (@rhhackett) December 18, 2017

In the upcoming years it will be interesting to see which protocol(s) will be at the forefront of research and implementation of ZKPs. Some protocols are already laying the groundwork by funding research institutions or partnering with industry experts.

For example, Zcash is currently in the process of launching further updates to their ZKP based zk-SNARK protocol. This is all being completed as part of their sapling upgrade that will see the complexity involved in constructing ZKPs greatly reduced.

If the sapling upgrade delivers the intended results, then shielded Zcash transaction fees and times are likely to fall. This means that ZEC could slowly move closer to their goal of being a digital equivalent of untraceable cold hard cash.

Conclusion

ZKPs are no doubt quite a revolutionary piece of technology. Their complexity is evidenced by the length of time it has taken for them to be used in any practical way since the were theorized.

However, our recent experiences with data breaches and other privacy concerns have spurred the demand for a new option. It was only when privacy conscious cryptocurrencies starting using ZKPs in their protocols that we discovered their true power.

Now that the benefits of ZKPs are known we can expect to see a broader application of of them in both centralized and decentralized environments. From anonymous verifiable voting to privacy on public blockchains, the technology is the answer to many challenges we face both on and off the blockchain.

Featured Image via Fotolia

The post 3 Real World Applications of Zero Knowledge Proofs appeared first on Coin Bureau.

Top 7 Most Expensive Items You Can Buy With Bitcoin

Steve Walters — Thu, 25 Oct 2018 21:20:28 +0000

Bitcoin was created to be a transactional currency to be used to purchase things.

As it gains more mainstream acceptance there have been a large number of things that have been added to the stable of items purchased with Bitcoin, from simple things to food items, to more obscure items like comic books. We have also previously covered some of the weirdest items that you can purchase with Bitcoin.

As the price of Bitcoin has risen, the number of expensive items being bought with it has grown as well. It’s not uncommon anymore for Bitcoin millionaires to be buying all the trappings of a luxury lifestyle, including cars, houses and yachts. And some Bitcoin purchases have become staggering as the price rises as well.

The most famous of these is the Bitcoin pizza purchase made by Laszlo Hanyecz in 2010. He purchased two Papa John’s pizza’s for 10,000 Bitcoin. At the time that was about $30 worth of Bitcoin. However, even with Bitcoin sliding well off its all-time highs in 2018, as of late October 2018 with Bitcoin worth around $6,500 each, those two pizzas are now worth a whopping $65 million! That’s some serious dough.

Let’s have a better look at some of the most expensive things being bought with Bitcoin.

Cars for Bitcoin

This could be the largest class of expensive items being bought with Bitcoins as many Bitcoin early adopters now live up to the slogan “When Lambo?” The most famous such purchase was made by YouTuber, Bitcoin forum owner and CTO of VinWiki Peter Saddington late in 2017.

He purchased a $200,000 2015 Lamborghini Huracan with a white matte wrap and race exhaust features for 45 Bitcoin. Those same 45 Bitcoin now would be worth $292,500, but Saddington says he paid just $115 for those 45 Bitcoins back in 2011 when he first became aware of Bitcoin.

Courtesy of Peter Saddington

Lambos are considered by some early cryptocurrency adopters to be the only acceptable way to spend Bitcoin. Cashing out is discouraged, and true believers in the cryptocurrency revolution are encouraged to “Hodl” “to the moon”. There have also been several stories of Tesla purchases using Bitcoin, such as the 2013 purchase of a Tesla S by someone in Florida for 91 BTC worth $109k at the time, but worth $more than $53.8 million at today’s prices.

Car dealerships who accept Bitcoin say sales of cars for Bitcoin spiked in December 2017 when the price of Bitcoin also spiked, but that some Bitcoin sales still continue.

Houses/Condos for Bitcoin

Real estate transactions have made headlines over the past year or two, and purchasing property with Bitcoin has become increasingly popular. There’s even a Bitcoin property website which currently lists a chalet in the French Alps for $4,950,000, a Panama penthouse for $3,595,000, or your own private Australian island for $3,500,000. There are more properties listed in the U.S., Thailand, Bali, the Caribbean, Turkey and pretty much anywhere in the world.

Reports of real estate purchases using Bitcoin began popping up as early as 2014, with an anonymous buyer purchasing a Bali villa for 800 BTC ($500k at the time, but $5.2 million now) in March and another anonymous buyer purchasing 1.4 acres in Lake Tahoe California for 2,739 Bitcoin worth $1.6 million then, but more than $17.8 million now. While these we called Bitcoin purchases, they were actually purchases made where Bitcoin was converted to fiat currency to complete the transaction.

Courtesy of Zillow.com

The largest actual Bitcoin real estate purchase I uncovered was from February 2018, where bitcoin investor Michael Komaransky sold his Miami mansion for 455 BTC or roughly $6 million at the time. The same 455 BTC are worth just under $3 million at the time of this writing.

Bitcoin for Airplanes

When the rich and famous travel they go in style on their own private jets, and the new breed of Bitcoin millionaire has been aspiring to the same. The first instance of using Bitcoin for a private jet was in 2014, when Bitcoin Foundation member Olivier Janssens reportedly chartered a private jet from PrivateFly.com.

While the details of the transaction weren’t made public, based on prices from the website the flight could have cost as much as 54.95 BTC or $35,000 then and an astounding $357,175 now!

Courtesy of SkyCraft Airplanes

And while I wasn’t able to find any actual purchases (likely because Bitcoin users prefer to remain anonymous), since December 2013 it’s been possible to purchase your very own aircraft from SkyCraft Airplanes using Bitcoin. When first announced, the SkyCraft SD-1 Minisport was available for 80 BTC. The current price of an SD-1 Minisport is $54,850, or roughly 8.5 BTC.

Bitcoin for Yachts

Having a yacht is one of the hallmarks of the super-wealthy, and Bitcoin millionaires are joining the yachting ranks as well. It’s not easy to find specific examples, but the market is definitely there, with Dennison Yachting of Florida adding Bitcoin as a payment method after requests from several customers, and 26 North Yachts, also of Florida, claiming to be the largest yacht broker to accept Bitcoin.

Courtesy of 26 North Yachts

An Education with Bitcoin

Universities are getting around to accepting Bitcoin for payments too, so you can learn about blockchain and cryptocurrencies, while paying for the education with a cryptocurrency. The University of Nicosia in Cyprus was the very first university to accept Bitcoin for payment all the way back in 2013, while King’s College was the first U.S. university to jump on the Bitcoin wagon in 2014. With current tuition at King’s College running roughly $35,000 per semester, a full four-year program will run around $140,000 or 21.53 BTC at current prices.

Other universities accepting Bitcoin include European School of Management and Technology in Berlin Germany and The Lucerne University of Applied Sciences and Arts in Switzerland, which announced the acceptance of Bitcoin for tuition in October 2017. Having a Swiss university accepting Bitcoin doesn’t come as much of a surprise, since Zug, Switzerland is called “Crypto Valley” and has over 50 blockchain companies and startups headquartered there.

Bitcoin Citizenship

The small South Pacific country of Vanuatu became the first nation in the world to offer citizenship for a payment in Bitcoin. The cost is roughly $180,000, so if you need a second passport and have around 27 BTC sitting in a wallet somewhere you could become the citizen of a small, but beautiful, South Pacific island nation. In reality they don’t accept Bitcoin, but have set up a transfer agent in Australia who will take care of the exchange from BTC to USD to purchase the citizenship.

The small Caribbean country Antigua and Barbuda DOES accept Bitcoin for its citizenship program, which is somewhat cheaper than Vanuatu at just $135,000 or just over 20 BTC. They became the first country to accept Bitcoin for citizenship as of July 23, 2018.

Conclusion

The number of items that can be purchased using Bitcoin continues to increase, and as the value of Bitcoin remains high the luxury items seem to be some of the most popular. It makes sense to use Bitcoin for these large purchases, because it can save easily 5-10% in fees, which is huge when you’re making purchases of hundreds of thousands or even millions of dollars.

As long as the value of Bitcoin remains high the trend towards purchasing big ticket items with the cryptocurrency is almost certain to remain, and as more people adopt Bitcoin we should see an increasing number of such purchases. By the time our children are grown it could be normal to pay for your car and house with Bitcoin or other cryptocurrencies.

Featured Image via Fotolia

The post Top 7 Most Expensive Items You Can Buy With Bitcoin appeared first on Coin Bureau.

What is Bakkt? The Crypto Solution for Institutions

Editorial Team — Wed, 26 Sep 2018 21:04:38 +0000

Ever since the crytocurrency markets began falling at the beginning of this year, people have been saying that “institutional money” was coming.

They have been praying, hoping and wishing on a star that large financial institutions were about to jump into the cryptocurrency markets and stave off the losses.

While these prayers have landed on deaf ears for the past 8 months, things could be about to change with the entry of a company called “Bakkt”. Yes, we have “institutional money” fatigue at the moment and some are immediately skeptical.

Hear us out though…

What is Bakkt?

Bakkt will be an open and completely regulated digital currency offering that will be powered by Microsoft Azure’s cloud solution. This secure open source platform will connect a whole range of cryptocurrency users from investors to merchants and consumers. As stated in their original press release:

Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility

Bakkt is an initiative by the Intercontinental Exchange (ICE) which is a leading operator of global exchanges and clearing houses. This immediately adds a great deal of legitimacy to the new offering.

They also mentioned in the press release that they would be partnering with a number of other enterprises that will help them create this ecosystem. Apart from Microsoft, they have also partnered with Starbucks and BCG.

Yes, that is right, you could eventually buy your Starbucks Latte with cryptocurrency.

The foundation that we are building our solutions for buying, selling, storing and spending digital assets is built upon the time-tested, regulated futures markets that have advanced markets ranging from coffee to gold for hundreds of years

— Bakkt (@Bakkt) September 26, 2018

The ecosystem will also include a federally regulated market as well as warehousing options. This means that users of the Bakkt platform will have some form of government regulated custodian service through Bakkt.

Bakkt is also jumping right into the Bitcoin futures market. However, unlike the current futures offering, these will be physically settled and not cash settled. The physical Bitcoin will be stored in their secure and insured warehousing solution.

Bakkt’s technology has also been developed over a considerable period of time. According to Kelly Loeffler, the CEO, they have “building the factory” over the past 18 months. In the same interview, she stated that it was built under great secrecy and the name was only decided on recently.

Now that you have an idea of what Bakkt is, let’s take a deeper look at why it could be the panacea for institutional investors.

Bakkt Benefits for Institutions

The reason that so many people are bullish about the Bakkt ecosystem is because it is breaking down a number of key barriers to entry. These barriers have stubbornly persisted even though other companies have tried to address them.

Some of the Benefits for Institutions from Bakkt

The barriers are mainly related to security of funds, the lack of available derivative instruments as well as the lack of large-scale consumer adoption of cryptocurrencies.

Security of Funds

This is arguably the most important consideration for any institutional investor.

It is easy enough for a money manager to hold traditional assets such as shares, bonds and commodities. It is really hard to steal these assets or actually lose them.

However, we all know how easy it is for hackers to siphon off digital currency. Similarly, through mismanagement of private keys and loss of passwords, cryptocurrencies can also be destroyed or lost forever.

You only have to think about the stresses that you go to in order to protect your cryptocurrency holdings of a few thousand dollars. Now imagine the scenario of you holding the $100m in crypto of thousands of investors.

Imagine the implications of a catastrophic loss or hack that leads to a breach of fiduciary duty. Imagine the threats of lawsuits and the destruction of your otherwise stellar investing reputation.

Scary thoughts indeed.

It is not like there aren’t any cryptocurrency custodian solutions currently on the market. You have solutions from Coinbase and Gemini, both of which are large and established names in the cryptocurrency industry.

Entrance to the Deltalis data center and Cold storage bunker. Image Source: QZ

If that does not sound secure enough for the institutional investors, Xapo vault will store your crypto in an actual physical vault. Hidden in Swiss bunkers, your private keys will be guarded by human and digital guards.

However, these solutions are not federally regulated. That means that despite the perceived security of these offerings, there is always that small chance that a loss can occur. There are no backstops in case of this loss.

Now that Bakkt is introducing the prospect of “federally regulated” warehousing. This could be a slightly more palatable solution for the institutional investors than storing their private keys in a mountain side in Switzerland.

Moreover, the Bakkt solution could greatly improve the sale and transfer of physical Bitcoin. Ordinarily, if they wanted to trade these securities they would have to either do an OTC transaction or rely on unregulated crypto exchanges.

Both of these are less than optimal.

However, if both of these institutional investors had their Bitcoin stored at Bakkt, then the process is greatly simplified. They could make the trade on the ICE platform within seconds and then have the Bitcoin instantly transferred between their custodian accounts at Bakkt.

Derivative Instruments

When it comes to managing risk in the financial markets, institutional investors and businesses will usually turn to derivative instruments.

These are instruments such as futures and options which can be used to hedge a great deal of market risk. They have been around for hundreds of years and have been used by farmers, companies, hedge funds and money managers.

Cryptocurrecy options and futures have only just being released on the Bitcoin markets. While they have been around in unregulated form for a couple of years, it was only last year that we saw our first listed futures contracts on the CBOE.

CBOE XBT Bitcoin Futures Contracts. Image Source: CBOE

Many in the community were looking at this as the moment when institutional investors were about to jump into the market. However, this has not really been the case. One of the main reasons for this lack of adoption is that these futures were cash settled.

This means that there was no actual Bitcoin that is exchanged in the settlement of these futures. So, if you are a large mining operator and you would like to sell your Bitcoin forward, then you would have to rely on a cash as payment for the future. You would still have to sell your physical Bitcoin in the spot market.

Moreover, given that there is a lack of physical delivery in the Bitcoin futures markets means that pricing inefficiencies exist. This has created a situation where numerous crypto arbitrage opportunities have opened up.

Bakkt could change that entirely.

Bakkt uses the existing, time-tested, regulated futures market infrastructure to introduce physically delivered Bitcoin and warehousing to global markets

All aspects of the existing futures market will, for the first time, be part of physical delivery and warehousing of Bitcoin

— Bakkt (@Bakkt) September 20, 2018

Bakkt is introducing daily delivered Bitcoin futures contracts. These will be fully collateralized or pre-funded. Yet, most importantly, they will be physically delivered. This means that counter-parties to trades will transact in actual Bitcoin upon expiry.

This could be the ideal solution for a number of businesses that rely on cryptocurrency payments and fiat conversions. For example, it would be the ideal solution for Bitcoin miners who need to sell their coins forward. It could be used by online merchants who need to convert their Bitcoin into fiat.

Quite simply, it opens up a whole host of use cases for these contracts and aids in the process of price discovery. According to the CEO of Bakkt, Kelly Loeffler

This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin

While the concept of “price discovery” may sound quite amorphous, it is really important in the financial markets. It helps to reduce the unnecessary volatility that is often associated with the Bitcoin markets.

This will also provide a positive feedback loop for adoption.

The more stable Bitcoin prices become, the more confident consumers and businesses feel about using it and the more willing institutional money managers are to include it in their portfolios.

Consumer Adoption

While we may all want businesses and institutional investors to include Bitcoin in their portfolios, there is still a lack of incentive from their actual consumers and clients. There is also a lack of wider infrastructure to support crypto payments.

These companies and businesses are there to cater to their end users and will only think about it once they see a need. This is why a more wide-scale retail adoption of cryptocurrencies is needed.

While many people have actively invested in cryptocurrencies, there has not been that much of its adoption in commerce. There is still a large chunk of the population that does not understand the use cases for digital currencies and will therefore will not hold them.

Bakkt is looking to change that with their numerous partnerships.

For one, there is their partnership with Starbucks. This will allow their customers to convert their cryptocurrency into USD and spend it in their stores. Immediately, you have a clear and present example of a very tangible use case for your digital cash.

According to Starbucks VP, Maria Smith, in a recent the original press release:

As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers

While paying for coffee with crypto is great, it is the underlying infrastructure that this is being developed that is the most exciting. A strong and robust fiat / crypto payment infrastructure is one of the things that has been missing.

Starbucks already has a pretty robust payment infrastructure in place and is always encouraging their consumers to pay with their phones instead of cards. Combine this with the immense reach of the Microsoft Azure network and you have a pretty solid solution.

More Big Ideas Backed by Bakkt

There are also a number of other innovations that Bakkt is bringing to the institutional Bitcoin markets that could supercharge adoption.

For example, they will provide much more connectivity to cryptocurrency markets and information. This is something that has been lacking in the current environment mainly because the requirements of large technological institutions differ from those of retail traders.

CEO of ICE Exchange (Jeff Sprecher> with wife and Founder of Bakkt (Kelly Loeffler). Image Source: Fortune

The Bakkt solution will include access to FIX API’s, consolidated ticker feeds and regulatory reporting features and participation agreements.

Essentially, Bakkt will allow these institutions to use the existing futures ecosystem as a “second layer” on top of the blockchain. This means that the clients will have access to a broad range of trading and risk management applications currently available in the ecosystem.

Looking Forward

Given the promise that Bakkt has brought, it is no wonder why the crypto community is so excited. This is not like many of the other cryptocurrency project that are long on promises and short on return.

It is being developed by one of the foremost international exchange operators in the world. It is also being backed by long list of reputable firms including the Fortress Investment Group, Galaxy Digital, Horizons Ventures, Alan Howard, Pantera Capital and Protocol Ventures.

This is a great sign as the only group of investors that will fully understand the need for an institutional crypto solution are themselves institutional investors. Clearly, they see the promise of Bakkt.

So, we can only wait with eager anticipation to see whether Bakkt will indeed serve as a on-ramp for institutional investors onto the cryptocurrency super-highway.

Featured Image via Fotolia & Bakkt

The post What is Bakkt? The Crypto Solution for Institutions appeared first on Coin Bureau.

EUR Bitcoin Price Forecast – Time for Another Upswing?

Editorial Team — Wed, 22 Aug 2018 23:28:36 +0000

Things have no doubt been uncertain for Bitcoin over the past few months.

Many so called “experts” have claimed that the next bull run has been just around the corner. But whenever we think that the price will break and start rallying, it falls and breaks more support lines.

So when will the next big BTC to EUR upswing really begin? And will this rally be sustained or will it also slowly fizzle out?

Right now, the Bitcoin price is being held back by a few key factors. Mainly, uncertain market sentiment, setbacks for institutional investors, looming regulation, and ongoing technological problems.

Let’s take a look at each of these factors to determine if Bitcoin is likely to recover anytime soon.

Uncertain Market Sentiment

Right now, the hype surrounding Bitcoin is quite different from what it was at the end of 2017. During the bull run last year, media hype was helping to fuel a great deal of FOMO (Fear of Missing Out). Newbie buyers, institutional investors, and news outlets just couldn’t get enough of the digital asset.

Image via Fotolia

The price was self reinforcing and further drove the narrative that Bitcoin was a “sound investment”. As the price started to go hyperbolic, many investors started to wonder whether the rally would really continue. It was not sustainable and prices started reversing pretty quickly in early January and have been on a downtrend since.

Right now, market sentiment is at a polar opposite to the euphoria of December last year.

After repeated disappointments of a breakout in 2018, most people are much more cautious now about jumping back into the markets. One Wall Street analyst even made an index to measure Bitcoin ‘misery’ which is used as a barometer to tell how traders are feeling. According to this, based on the current prices, those holding BTC are decidedly quite miserable right now.

That might sound like bad news, but historically speaking, times of fear, uncertainty, and doubt are the best time to buy Bitcoin. When the media is continually writing a great deal of FUD articles, it is more likely that the price of the coin is undervalued. And, according to that same ‘misery’ index, Bitcoin always sees its best price performance in the year after the indicator hits ‘miserable’.

Setbacks for Institutional Investors

One factor that is likely to drive the next huge Bitcoin upswing is the influx of institutional money. There is a great deal of large investment funds, asset managers and financial institutions that want to get involved in the Bitcoin markets. They are all on the lookout for the ideal entry opportunity.

Up till now, Bitcoin has been far too risky for these institutions to risk client money with. While many retail investors have been happy to risk their own money in the hope of a Bitcoin rally, money managers have a fiduciary duty.

We can also add to this the failed attempts to create important investment vehicles like exchange-traded funds. All this means that cryptocurrencies have remained out of reach for most institutional investors.

For the big money to roll into Bitcoin, it would need much better protection for its investors. One of the most important steps in this regard would be for regulators to step into the breach and provide some clear laws and regulations related to digital assets.

Regulators are Taking It Seriously

The biggest uncertainty with Bitcoin at the moment is regulation. Regulators around the world have taken a keen interest in Bitcoin and other cryptocurrencies. They have viewed the technological advanatges of decentralised systems and blockchain technology.

Regulation was traditionally viewed with suspicion by most Bitcoin users. This is because it was developed specifically in order to throw off the strictures of modern finance and free its users from centralised systems.

However, despite what many of these die-hard Bitcoiners may think, regulation might not be all bad for the cryptocurrency, especially for the price. Regulation doesn’t necessarily mean clamping down on the asset and all of its users.

It is possible for government bodies to craft effective regulation which adequately protects users while still allowing the technology to develop and innovate in a relatively free market.

Hester M. Pierce. Source: Wikipedia.org

This was actually evidenced recently by the positive reviews in the community to a speech by Hester M. Pierce, a member of the Securities and Exchange Commission (SEC). The speech, entitled “Beaches and Bitcoin” outlined her vision of how the SEC could regulate the market.

She compared the SEC to a lifeguard on a beach. This lifeguard will allow freedom of innovation in the markets, but step in with the whistle when needed. Regulators in Europe have also come out with similarly positive statements on Bitcoin and the general cryptocurrency ecosystem.

With a well-balanced regulatory oversight, the Bitcoin markets could shake off a great deal of the negative side affects of an unregulated market. These include such practices as market manipulation and cryptocurrency fraud.

When institutional investors know that there are protections in place for their clients money, they are much more likely to invest. One would hope that this could open up the floodgates of excess capital which would breath life into the crypto markets.

Growing Confidence in Scalability

Another issue that has been plaguing Bitcoin has been its inability to scale. With current network speeds, Bitcoin is able to process around 2-3 transactions per second. Visa, on the other hand, is able to process 56,000 transaction per second.

Hence, if Bitcoin really wants to compete with established companies, it has to improve its transaction scalability. This is a clear roadblock that Bitcoin needs to overcome should it aim to achieve mass adoption. Fees are also a part of the problem. During Bitcoin’s most recent upswing, fees ballooned to almost $50 per transaction.

The good news is that scalability solutions are now in sight. Researchers are working on innovative technologies such as the Lightning Network. This solution adds a ‘second layer’ to the Bitcoin blockchain that allows the majority of transactions to happen ‘off-chain’.

This will greatly help with scaling because it will mean that not all transactions will have to be placed on the Bitcoin blockchain. Similarly, as these transactions will take place in separate channels, the miner transaction fees will not have to be paid.

If it’s successfully implemented, it would increase the capacity of the Bitcoin network exponentially. This could provide an impetus for more adoption which would result in positive sentiment and a rally in the price.

Correction Soon?

There is a great deal of hope that the next Bitcoin upswing is around the corner. The market is in need of some positive news that could breath life into the “mass adoption” hopes.

Well thought-out regulation that is able to protect investors without stifling innovation will provide the right environment. It would allow for institutional investors to purchase cryptocurrency assets en masse without fears of client lawsuits.

Moreover, if the Bitcoin nodes are able to fully roll out the lightning network and allow it to scale it could aid this adoption. People could start using Bitcoin again as a means to transact and not just as a store of value.

Of course, there are also risks that the market could face in the short to medium term. There is no real consensus on how far Bitcoin can fall before demand begins to pick up again. There have been a lot of retail traders that were burned in the recent sell off and they will have bad memories.

Hence, only invest what you are willing to lose and make sure that you Do Your Own Research (DYOR).

Image via Fotolia

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

The post EUR Bitcoin Price Forecast – Time for Another Upswing? appeared first on Coin Bureau.

What Effects Could Bitcoin ETFs have on the Market

Matt Godshall — Sun, 05 Aug 2018 05:13:52 +0000

Many of the biggest cryptocurrency news stories over the last several months have been related to the possibility of SEC-approved Bitcoin ETFs. Numerous prominent cryptocurrency advocates have even speculated that ETFs could be the jolt of energy that sets off the next major bull run.

But for all of the hype surrounding ETFs, details about what an ETF actually is and what kind of an impact Bitcoin ETFs might have on the industry are frequently glossed over.

In this article we’ll cover everything you need to know about Bitcoin ETFs: what they are, their current legal status, and the possible ramifications should they actually receive approval.

What are Bitcoin ETFs?

The term ‘ETF’ stands for ‘exchange-traded fund’ and is the name for an investment fund with shares that are traded on a stock exchange. ETFs are considered a ‘pooled investment vehicle’, meaning that they involve multiple investors buying shares of a pool of assets. The underlying asset can be stocks, bonds, gold bars or many other kinds of assets.

A ‘Bitcoin ETF’ would therefore be an investment fund traded on a stock exchange in which the underlying asset is Bitcoin. Some sources will refer to this instead as a ‘Bitcoin ETP’ (exchange-traded product), but the terms are functionally the same: The fund would be responsible for owning some pooled amount of Bitcoin, and investors would be able to buy shares of that pool. Each investor would then be entitled to a proportionate share of the value of the fund’s assets.

Image via Fotolia

If you’re already an active member of the cryptocurrency community, this may sound like a strange idea. Why would one want to purchase a share in a Bitcoin investment fund rather than just buying Bitcoin directly?

There are a few possible reasons.

For one, investing in Bitcoin through an ETF could be an easy way for traditional investors (both retail and institutional) to invest in Bitcoin without having to interact with some of cryptocurrency’s more esoteric features.

There are undoubtedly traditional investors who are interested in cryptocurrencies but find the notion of buying off of cryptocurrency exchanges or setting up a cryptocurrency wallet to be needlessly complicated. Such investors might be better off putting their money in a Bitcoin ETF, which would allow them to indirectly invest in Bitcoin through the comfort of their preferred stock-trading platform.

Another reason for investing in an ETF would be the increased security provided by government regulation. If a Bitcoin ETF were to be approved, the ETF would then fall under SEC jurisdiction. According to Vanguard, the SEC regulates ETFs under the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940:

“The 1940 Act imposes a host of investor protections—including restrictions on affiliated transactions, limitations on leverage, the independence of boards, and the segregated custody of fund assets—making mutual funds and ETFs subject to the 1940 Act among the most stringently regulated investment products available in the United States.”

The details of exactly how the SEC regulates ETFs are beyond the scope of this article, but suffice it to say that a Bitcoin ETF would be required to follow consumer protection laws that are not applicable in the general cryptocurrency market.

This second reason is important: Bitcoin and other cryptocurrencies are considered by many to be risky investments due to the market’s volatility and the lack of investor protection mechanisms. An SEC-approved ETF could be attractive to traditional investors who have been too risk-averse to get involved in the cryptocurrency market until now. ETFs are a great way for these inexperienced investors to take part.

Current Status of Bitcoin ETFs in the US

Much of the news coverage surrounding Bitcoin ETFs has been centered around new ETF applications and the SEC’s decisions in response to them. At time of writing, the SEC has rejected three Bitcoin ETF applications and is currently considering at least three others.

The Winkelvoss Twins. Image via Quartz

The most recent rejection, which occurred on July 26, was actually the second application rejection for the Bats BZX Exchange (BZX) to trade shares in the ‘Winklevoss Bitcoin Trust’—an ETF proposed by Gemini cofounders Cameron and Tyler Winklevoss.

The news was a significant blow to the cryptocurrency community, as many in the space were feeling optimistic about an ETF approval following the SEC’s indications that Bitcoin would not be considered a security.

But alas, the Commission rejected the application, citing many of the same reasons that they had in previous rejections: concerns over investor protection and the possibility for market manipulation and fraud.

According to the SEC’s ruling the Commission focused primarily on Exchange Act Section 6(b)(5), “which requires, in relevant part, that the rules of a national securities exchange be designed ‘to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.’”

The SEC argues in the ruling that the Bitcoin market is susceptible to fraud and other kinds of market manipulation and that BZX does not have sufficient mechanisms in place to be able to detect or prevent such manipulation. Particularly problematic for the SEC is the fact that a significant portion of the Bitcoin market occurs internationally and is therefore outside of SEC jurisdiction.

Another concern for the SEC is that the underlying Bitcoin market is not currently regulated. The SEC argues that regulation of a Bitcoin ETF would not be sufficient because the underlying bitcoin market and the bitcoin derivatives market are not regulated.

However, the news isn’t all bad. The Winklevoss ETF application was rejected in a 3-1 decision, which means that one SEC Commissioner, Hester Peirce, voted to approve the listing of the Winklevoss Bitcoin Trust.

Peirce later took to Twitter to publicly express her dissent with the Commission’s decision. In her public statement, Peirce argues that approval for the Winklevoss application would be an important step in bringing greater investor protection to the Bitcoin market:

I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market. More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order. More generally, the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs.

Peirce also argues that the SEC may have exceeded its prerogative by basing its decision not just on the Bitcoin ETF proposal at hand, but on the underlying Bitcoin market:

[The role of the commission is to] to determine whether ‘[t]he rules of the exchange’ are, among other things, ‘designed to prevent fraudulent and manipulative acts and practices [and] to promote just and equitable principles of trade. The Commission steps beyond this limited role when it focuses instead on the quality and characteristics of the markets underlying a product that an exchange seeks to list.

Peirce’s defense of the ETF has since earned her the name of ‘Crypto Mom’. So while some of the SEC’s concerns seem difficult to completely overcome due to the decentralized nature of the Bitcoin market, there is at least one person on the Commission who seems to be advocating on behalf of the cryptocurrency community.

There is therefore still hope that an SEC-approved Bitcoin ETF could come sometime in the future.

Ramifications of Bitcoin ETFs: Pros and Cons

As you likely assumed from the aforementioned hype, it is probable that a Bitcoin ETF approval would be a major boon to the overall cryptocurrency market. A Bitcoin ETF listing on a major stock exchange like CBOE or the NYSE would open the door to a large swath of potentially untapped investor money. If approved, the Bitcoin ETFs would not be listed until 2019 at the earliest, but news of the approval alone would likely cause Bitcoin’s price to skyrocket.

What is harder to predict is how much money Bitcoin ETFs would directly bring in to the cryptocurrency market. That is, how much would traditional investors actually invest in a Bitcoin ETF?

This is impossible to know. As mentioned above, an ETF could be a very appealing option to some investors compared with buying Bitcoin directly from a cryptocurrency exchange. Igor Feerer points out that the total ETF market size was about $3 trillion in 2017, indicating that there is a serious amount of money invested in these types of funds. But many traditional investors have been quite hesitant to pull the trigger with Bitcoin thus far, and it is difficult to know if an ETF is the investment vehicle that Wall Street traders have been waiting for.

Growth of ETF AUM Worldwide. Source: Globalxfunds

Also worth considering is the possibility, which some cryptocurrency analysts have argued, that the approval of a single cryptocurrency ETF would set off a flood of additional cryptocurrency ETFs. ETFs could therefore lead to a significant influx of capital into the cryptocurrency market, even if the investments are spread across numerous funds.

While there are many benefits that could come to cryptocurrency enthusiasts should Bitcoin ETFs gain SEC approval, there are likely to be some negative outcomes as well. Perhaps the biggest is the fact that Bitcoin ETFs will further reduce the pool of Bitcoin that is actually being used as a medium of exchange, rather than simply as an investment opportunity.

Bitcoin’s use in Retail Transactions

A trend has emerged since Bitcoin went on its remarkable price rally at the end of 2017. Around the same time that prices were going up, Bitcoin’s use in retail transactions went down. This makes sense: Bitcoin was becoming more valuable every day.

If you spent your Bitcoin, you could stand to lose a significant amount of money if the price continued to rise. Recent data, however, suggest that this trend has continued on to today, in spite of the 2018 cryptocurrency market crash.

Bitcoin still is not being used in retail transactions to the extent that it was a year ago. This suggests that many now see Bitcoin more as a store of value to be held than as a medium of exchange to be used. Perhaps this isn’t a problem in the long run.

Maybe Bitcoin can be repurposed as a sort of digital gold—something that has value but isn’t really used to make transactions—but this is certainly not in line with what Bitcoin was originally intended to be.

Looking Forward

While the recent rejection of the Winklevoss Bitcoin ETF application is disappointing, there are at least three other cryptocurrency ETF applications that the SEC has not yet issued a ruling on: the VanEck and SolidX Bitcoin ETF, the Direxion Bitcoin ETF, and the Bitwise Hold 10 Cryptocurrency Index Fund.

It is not yet clear whether these ETF proposals have taken sufficient steps to gain SEC approval in the areas in which the Winklevoss proposal fell short. We won’t know for sure until the official rulings on these applications are made public; all three applications are scheduled to be decided upon sometime within the next couple of months.

Whatever happens—good or bad—ETFs will likely remain an important topic in the cryptocurrency industry for the foreseeable future.

The post What Effects Could Bitcoin ETFs have on the Market appeared first on Coin Bureau.

The Top 5 Crypto Friendly Countries to Consider

Steve Walters — Thu, 19 Jul 2018 23:20:49 +0000

Just as it does in other financial markets, the regulatory approach to cryptocurrencies is wildly different in various countries around the globe.

While some nations have decided to try and block or completely control cryptocurrencies, others are taking a far more laissez-faire approach to the newest financial asset and the technology behind it. This article will take a look at five of the most crypto-friendly countries for your consideration.

It’s not surprising to learn that governments, which are notoriously slow to change, have had a difficult time keeping up with the evolution of blockchain, distributed ledger, and cryptocurrencies. Some countries have tried to avoid the issue by outlawing certain aspects of blockchain technology, or by trying to control the development of the cryptocurrency markets, while others have been more open to change in many ways.

The five crypto-friendly nations included below are just some of the nations that are embracing blockchain technology. They are being chosen not only because they are favorable to investors in cryptocurrencies, but because they are helping to create havens for the innovation and evolution of blockchain technologies.

Switzerland

“Crypto Valley”

Switzerland has long been known as both a neutral observer and a hub of private financial services and banking. Can you think of a better place to encourage the growth of the privacy-centric cryptocurrencies than the hub of private financial services?

In fact, Switzerland has a stated goal of becoming the “crypto-nation” according to the Economics Minister of the small Alpine country. This goal was made in connection with the “Crypto Valley” project. Zug, located in central Switzerland, is home to the “Crypto Valley” project, an independent, government-supported association that is aiming to create a “world leading blockchain and cryptographic technologies ecosystem.”

Besides its focus on the innovation and evolution of the blockchain industry, Switzerland has also become known as one of the top countries for successful ICOs.

Japan

Japan is well known as being one of the most accepting countries when it comes to blockchain and cryptocurrencies. This is very likely because of the technological advancements in Japan and the willingness of the population to accept new technologies.

Record BTC / JPY Volume

According to Japanese media reporting, Japanese Yen buying and selling accounts for more than 50% of worldwide Bitcoin volumes. Part of the reason for this is that Japan has officially acknowledged cryptocurrencies as legal tender back in 2017. It’s also helpful that cryptocurrency exchanges in Japan operate under a very liberal regulatory environment.

Japan is well known for its adoption of technology, and for its sometimes strange (to Westerners) fads. The Japanese have have easily adopted cryptocurrencies, and have even included them in another fad – J-pop. There’s now a cryptocurrency themed J-pop group known as the “Virtual Currency Girls”, and in case you’re thinking that’s strange, you’re not alone, it is quite strange if you’re not Japanese.

Japan has also created a self-regulatory body known as the Japan Virtual Currency Exchange Association (JVCEA). The entity was formed by the merger of the Japan Blockchain Association and the Japan Cryptocurrency Business Association in April 2018. The merger was meant to take advantage of allowances in the Payment Services Act that was passed in Japan in April 2017.

That Act allows for self-governing regulatory entities to set penalties for self-imposed rules. The JVCEA is comprised of 16 Japanese exchanges and looks to assess exchange securities and cryptocurrencies.

The rapid adoption of the technology and proactive stance on self-regulation of cryptocurrencies make Japan one of the most crypto-friendly countries in the world. The fact that technology is embraced heartily in Japan is almost certain to ensure that many new blockchain and cryptocurrency developments will occur first in Japan.

United Kingdom

You may not have expected to see the United Kingdom on a list of the most crypto-friendly countries, but the truth is that regulators in the U.K. have so far left cryptocurrencies pretty much alone, leading to a thriving community of cryptocurrency users, businesses and developers. Plus the U.K. has the benefit of a highly developed infrastructure and skilled workforce, along with a positive reputation.

The United Kingdom has seen a similar development to that happening in Japan, with seven of the largest blockchain companies joining together recently to create a blockchain industry trade body in the U.K. known as CryptoUK.

UK Flying the Flag of Adoption

CryptoUK is the first self-regulating cryptocurrency organization in the U.K. and was created as a proactive way to circumvent any potential regulatory crackdowns on blockchain projects in the U.K. It has already released a Code of Conduct and seeks to promote industry best practices to make the U.K. a safe home for blockchain and cryptocurrency projects.

The intention at CryptoUK is to work together with U.K. government regulators to create a secure environment for both blockchain companies, and the people that invest in them. There is a focus right now on U.K. based blockchain startup companies and ensuring that their platforms are compliant with Know Your Customer and Anti-Money Laundering regulations.

Iqbal Gandham, the Chairman of CryptoUK, stated that the alliance intends to “promote best practice and to work with government and regulators,” adding that the organization can become “the blueprint for what a future regulatory framework will look like.”

U.K. financial institutions are governed by the Financial Conduct Authority (FCA), however current laws do not have cryptocurrency exchanges, brokers or businesses under the oversight of the FCA. This has left cryptocurrency related business in a somewhat grey area that has left them with a great amount of freedom in the way they operate and conduct business. This laissez-faire outlook makes the U.K. a very attractive location for blockchain startups and even existing organizations.

The CryptoUK alliance wants to be a positive force in the cryptocurrency movement in the U.K., assisting the British government in creating a regulatory framework that will not only help integrate existing cryptocurrencies into the society and financial markets, but also ensure that the U.K. remains a hub of innovation and development for the blockchain community.

Netherlands

The Netherlands, and specifically Amsterdam, have long been known for free-thinking and a liberal lifestyle. More recently, Amsterdam also became the home to the Bitcoin Embassy. This Bitcoin Embassy is the home to a hard-working and active community of crypto-enthusiasts who have been working to spread awareness of the oldest cryptocurrency.

The Dutch are Bitcoin Crazy

You might not have heard it before, but Amsterdam is also known as the best technology startup city in Europe, and thanks to widespread adoption of cryptocurrencies it boasts the densest concentration of Bitcoin ATMs of any city in the world.

Even with the widespread adoption and popularity of cryptocurrencies in the Netherlands, the government hasn’t been swift to push regulations on the fledgling asset class. In fact, the Netherlands government has even been experimenting with its own cryptocurrency known as the De Nederlandsche Bank Coin, or DNBCoin. Currently there is no government or self-regulation in this progressive Northern European country.

This could be changing however as the Dutch Blockchain Coalition (DBC) has been working on a regulatory structure that not only provides regulation, but also ensures that the development of blockchain and cryptocurrency projects is responsible. The DBC is an alliance of more than 20 different organizations, and one of its primary current goals is to create a method for enforcing digital identities that will keep pace with the rapidly changing Know Your Customer and Anti-Money Laundering regulations.

The Dutch Authority for the Financial Markets has the responsibility for regulating financial products in the Netherlands, but does not regulate Initial Coin Offerings (ICOs) at this time. Instead, it has informed the European Securities and Markets Authority that the cross-border nature of token crowdsales requires responsible action at a European Union level.

Denmark

Here’s another developed European country that you might not immediately think of as a top crypto-friendly country, but in fact the 0% tax on cryptocurrencies has made it extremely attractive to cryptocurrency enthusiasts. The National Bank of Denmark has even gone as far as exempting cryptocurrencies from regulation after ruling that they are not legal tender currencies since they have no central issuer.

That hasn’t kept the Danish government from issuing several warnings to its citizens regarding the speculative nature of investing in cryptocurrencies. Even so, they seem to be keeping their distance from actually regulating cryptocurrencies, instead deferring to the European Union for regulation. Since the EU hasn’t provided any regulation yet this leaves cryptocurrencies unregulated and untaxed in Denmark, hence the crypto-friendly designation of the country.

Conclusion

All the countries mentioned above offer benefits to individuals and companies looking to invest in or develop cryptocurrency based projects. One commonality shared by these countries has been the proactive formation of self-regulating entities that are trying to steer the developing regulatory environment in a positive direction.

The coalitions and alliances being formed are working closely with governments to help create a regulatory framework that maintains the innovation that blockchain technology brings us. In the long run we see this as a very positive development that can hopefully keep blockchain projects from being stifled.

While these are my top picks for crypto-friendly nations, there are others that have been very accommodating for blockchain startups.

Among them are Puerto Rico, Malta, Estonia, Singapore and some Caribbean Islands.

All Images via Fotolia

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Don’t Kid Yourself, This is Still the Early Adoption Phase

Editorial Team — Mon, 18 Jun 2018 14:55:20 +0000

Do you still carry a flip phone or pop a cassette tape into the deck when you slide behind the wheel for your morning commute? If so, there’s a chance you might fall on the far right side of the Technology Adoption Curve, affectionately termed a “laggard.”

What are we talking about?

There is a well-known bell curve that illustrates the various stages of how new technology arrives on the scene and ultimately penetrates the larger market.

Where on the Curve is Cryptocurrency?

The small percentage of very early adopters are known as “innovators” and make up only about 2.5% of the population while “laggards are the last 16%.

So…where do you imagine we are as a society in relation to this strange new kid on the block known as cryptocurrency, and are you ready for the next quantum leap forward?

Where Cryptocurrency Sits Now

Granted, the keystrokes behind this article are powered by people who are part of a very small slice of the innovation phase, so crypto seems like old hat to us, but when we step back and take a look around, this is one very, VERY young baby.

Think of it as equivalent to the 1994-era internet characterized by 56k dial-up modems and a Microsoft home page that looked like the image below. Do you wish you had sunk a few thousand dollars into the company back then?

Microsoft’s Early Web Page

And to drive the point home even further, Facebook and Twitter were still a decade from being whisked into existence.

Given the state of technological quickening, expect the equivalent mega-cryptocurrency companies to become apparent in less than five years. We’ve already got more than a thousand official variations of digital coins out there, all driven forward by those who see no limits in this brave new decentralized world.

The problem right now is that the field is so crowded that it’s like a digital game of Pin the Tail on the Donkey trying to figure out which ones might have what it takes to survive and thrive in the long-term.

This is Not the First Financial Revolution

Up until about 20,000 years ago, there was no money.

Eventually, isolated tribes of humanity developed a crude ledger system to keep track of how much yak meat Grunt owed Growl after a successful hunt. This worked until the tribes started bumping into one another, each with completely disparate ledger methods.

About five thousand years ago, we stumbled upon the idea of using gold as a means of transferring value, which is kind of interesting because the metal in and of itself doesn’t provide much in the way of functionality. It has and holds value only because there is a scarce supply. It’s also heavy, and sort of awkward to carry a lot of it around.

By the time the 1600s arrived, some thinkers put forward the notion that we should switch to paper certificates that provided proof of a certain amount of gold stashed away somewhere. People lost their minds’ at this radical suggestion, and it took 400 more years before the global currency reserve (the US dollar) finally went off the gold standard.

As technology develops, adoption comes exponentially faster. Consider that it took decades for the telephone and household electricity to reach 60% of the population.

Things happen a lot quicker now.

Kids born today are going to grow up quite comfortable with the idea of cryptocurrency as a legitimate financial system.

Where Cryptocurrency Sits Now

Investing in a fiat currency like the US dollar, thanks to the continually devaluing effect of inflation, is an exercise in futility. There’s a better than average chance that it will be worth less (in terms of the goods and services it will buy) in a few years than it is now.

Going up Alot

But this cryptocurrency thingie is starting to feel like an actual investment strategy, especially considering the stratospheric rise in the price of Bitcoin since its conception.

It started life worth only pennies per coin, skyrocketed up near $20,000, and now has retreated considerably back into the $5,000 range. Believe us, millionaires were made during that run.

While Bitcoin might be prohibitively expensive for your budget right now, there are plenty of alternative coins (referred to as altcoins) officially traded on exchanges.

Of course, you should only invest money you can afford to lose. There’s too much uncertainty to be tapping into the kids’ college fund, this month’s mortgage, or food and gas money.

Paying for The Future

Maybe you never thought about it, but here’s what happens when you invest in cryptocurrency – besides taking the perhaps infinitesimal chance at becoming filthy rich.

The investments you make provide working capital for the industry to not only develop more sophisticated versions of your favorite coin, but create entirely new products. Currently, Bitcoin sits at a market capitalization of around $112 billion. That’s not an insignificant number!

Whereas Bitcoin seems pretty focused on cryptocurrency, a company like Ethereum (the second largest cryptocurrency) has gone a different direction by providing a blockchain platform on which developers can create whatever sort of application they can imagine. This is where the future is being built and where this whole thing gets exciting.

The Bottom Line

As new money pours into the cryptocurrency industry via both individual investors and forward-thinking corporations like IBM, you can expect the opportunities to participate in this boom will take forms we never even considered.

Start thinking about this stuff seriously now, because you don’t want to be the slowpoke who arrives too late to this revolution.

Featured Image via Fotolia

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7 of The Weirdest Things You Can Buy With Crypto

Toju Ometoruwa — Tue, 05 Jun 2018 14:15:20 +0000

Cryptocurrencies are the gateway to a global decentralized ecosystem where users have complete fiscal autonomy to transact with whomever they choose for whatever they want.

Keeping this in mind, it’s no surprise that what people choose to buy and sell under the anonymity of public keys is rather strange.

Here are a few interesting purchase options we dug up:

1) Lap Dances:

Image via Legends Room

In case you find throwing $1 bills demeaning, at the Legends Room in Vegas, you can always tip your dancers in Bitcoin.

For those who have not heard of it, the Legends Room boasts exotic entertainers dressed in luxury designer clothing. They dancers are now able to accept tips from patrons in the form of digital currency with QR codes strategically placed via temporary tattoos. They went on to say:

“The Legends Room adult entertainer-branded Bitcoin ATMs are also located throughout the 15,000-square foot facility located less than a mile from the famous Las Vegas Strip, where guests are able to securely purchase members-only status at The Legends Room on the Bittrex exchange.”

Lap dances, dark rooms and QR coded tattoos conveniently placed in sensitive areas.. sounds like a great way to lose all your Bitcoin in one session.

I think I’ll just stick with throwing cash.

2) Hitmen

Back in the “good old days” of the Dark web, there used to be an anonymous online marketplace called Silk Road. Bitcoin was used on Silk Road to purchase pretty much any good or service you’d get arrested for even mentioning at an airport.

It was also used for hiring Hitmen; because whenever you need to make someone disappear, make sure you pay for it using a traceable currency on an open and immutable ledger.

Fortunately, the authorities have cracked down on deep web markets offering Hitmen for hire, presumably leading to arrests for those caught in the act of transacting, and sleepless nights for others whose “10,000 BTC to get rid of my neighbor problem” is still solidified on the blockchain.

3) Butt lifts and liposuction

Image via Fotolia

Yes, a plastic surgery business called BodySculpt now accepts Bitcoin.

Because nothing says wannabe Instagram model more than some guy or girl who spent all day mining Bitcoin and now would rather use it to make their butt bigger.

This is either a sad attempt to capitalize on a trend, or the worse case of target marketing since everything on this list

Just make sure you run away if they only accept Monero.

4) Funerals

Image via Fotolia

In what looks like another failed attempt to appeal to millennials, Crescent Tide is accepting Bitcoin.

Is there any reason why someone wouldn’t just pay for this with fiat money?

The only one I can think of is if I tried to fake my death to collect insurance money and didn’t want people finding out I paid for my own funeral (Crescent Tide might be unto something..)

5) Mammoth Tusks

For just 23.24 BTC (~$175,000) you can legally purchase Ivory tusks from an extinct wooly mammoth

(Translation: I’m trying to sell Ivory tusks from a healthy adult elephant I illegal poached last week and I need a simple sales pitch to get this off my hands before the authorities raid my house).

6) A Doge sweatshirt

This sweatshirt costs $59.

To put that in perspective, that’s 0.0078 BTC, or 16,480 Doge Coins (if you wait a couple months you’ll be able to tell your friends you bought a sweatshirt for 1 million Doge coins).

7) Accounting advice

PWC, the accounting firm no one really cared about until they screwed up last years Oscars by handing Warren Beatty the wrong envelop for Best Picture, is now accepting Bitcoin for advisory services.

We’ll know how bad their brand took a hit if they decide to launch an ICO later this year.

Besides, asking an accounting firm where I should store my crypto to avoid paying taxes is like asking a Blockbuster Store how to set up my Netflix account.

Conclusion

These 7 Items are really just scratching the surface, but are an interesting example of the weird evolution of the crypto market, and how far we’ve come from using Bitcoin to buy drugs and hitmen, to now buying sweatshirts, funeral services, and accounting advice.

As amusing as it is to see brick and mortar businesses jump on the crypto hype train, it’s also a great sign that mainstream culture is slowly embracing Blockchain technology and the utility of a decentralized currency in everyday life.

Featured Image via Fotolia

The post 7 of The Weirdest Things You Can Buy With Crypto appeared first on Coin Bureau.

Why The Marshall Islands is Tokenizing its Money Supply

Toju Ometoruwa — Sat, 26 May 2018 19:02:48 +0000

On March 21st, a huge milestone was achieved in the fight to legitimize Cryptocurrencies and Blockchain technology.

The Marshall Islands, a tiny nation in the middle of the Pacific Ocean, approved a bill to develop its own cryptocurrency called Sovereign (SOV) in partnership with Israeli Tech Company Neema.

The nation of 53,000 people, with a GDP of just $183 million does not have its own currency and instead uses US dollars.

SOV Overview

The team, led by CEO Barak Ben Ezer has been pursuing this opportunity for over a year. Ezer studied the regulatory landscape and discovered that there was one significant hurdle preventing Bitcoin and other crypto currencies from being considered legal money.

According to the IRS, the definition of money is ‘the legal tender of a sovereign state’. At the current moment, Bitcoin is not considered a currency but a commodity.
Its volatile nature has caused regulators to propose that it be subject to capital gains tax and treated like stocks.

In order to comply with the IRS and push crypto to mainstream adoption, Ezer and his team spent the past year and a half looking for sovereign nations (nations that are members of the UN) that did not have their own currency.

They finally settled on the Marshall Islands. As Ezer put it:

I was looking for a country that would be open to the idea of adopting a cryptocurrency as legal tender. I ruled out countries like Sweden and went to the smallest countries in the world. The smaller the country, the easier it will be for it to adopt such a currency. I added another parameter – a country that does not have its own currency. That’s how I got to the Marshall Islands.

This plan is not cheap.

Neema Team with Marshall Island Representatives – Image via Haaretz

The team is spending tens of millions of dollars to develop the technology needed for the nations people and their local businesses to begin accepting the currency.

In successfully convincing the Marshall Islands to adopt SOV as their currency, financial institutions such as banks and Visa now also have to accept SOV as legal money for transacting.

Neema now plans to help the Marshall Islands start fundraising by launching an Initial monetary offering (IMO) where for the first time, a sovereign nation is issuing its own currency to the public without any central bank. 24 million tokens will be supplied during the IMO.

It’s no surprise that a team of forward-thinking tech entrepreneurs would want to accomplish a feat like this. However one has to wonder why the Marshall Islands chose to go along with this plan, especially knowing how volatile the crypto market is, and how Blockchain technology is still in its early stages and struggling with scalability issues.

A quick background on the Islands history gives a lot of evidence for why they decided to make this move.

A Tiny Nation Under The Thumb of The US

In 1944, the US took control over the Marshall Islands by defeating its Japanese occupants. Shortly after, they entered into an agreement with the UN Security Council to administer much of Micronesia, including the Marshall Islands, as the Trust Territory of the Pacific Islands.

Castle Bravo Nuclear Test. Source: wikipedia.org

For the next few decades, the Marshall Islands were treated very much as a conquered territory, with little to no regard for the well being of its local citizens.

The US military began testing nuclear missiles around the Island, launching as many as 67 tests between 1946 and 1958.

The largest test (called ‘Castle Bravo’) was a hydrogen bomb about 1,000 times the size of Hiroshima, and resulted in hundreds of Marshallese residents evacuating from their homes.

To compensate, the United States granted the Islands their Independence in 1986, along with a $150million settlement, however this pales in comparison to the actual damages caused. According to wikipedia:

Over the years, just one of over 60 islands was cleaned by the US government, and the inhabitants are still waiting for the 2 billion dollars in compensation assessed by the Nuclear Claims Tribunal. Many of the islanders and their descendants still live in exile since much of the islands are contaminated with high levels of radiation since the time of the U.S. nuclear tests till this day

The Marshall Islands have filed complaints to the UN, which for the most part has fallen on deaf ears.

20% of the money raised from the launch of SOV will go to the fund that handles the victims of these nuclear tests.

Climate Change

The rising of sea levels caused by global warming has been especially catastrophic for the Island.

A new climate study funded by the US Defense Department concluded that between the 2030s and 2060s, these islands would likely become uninhabitable because of increased damage to fresh water and infrastructure from ocean flooding.

Currently, the Islands only recourse is to make a request to the US Government for aid.

According to Ezer, 10% of the funds raised from SOV’s IMO will go to a fund that supports the use of green energy and other climate change efforts. 50 percent of the money will go to the State Budget Support Fund, and the last 20% will be distributed directly to citizens.

Implication for Other Small Nations

The Marshall Islands is just one of many small nations that are independent in name, but still burdened by the incredible weight of the larger, more dominant nations that once controlled them through conquest.

By relying on a currency that is not theirs, these nations are in essence still conquered territories, unable to exercise their own monetary policy and in constant need of support from larger countries.

Much like the Blockchain empowers individuals to become their own bank, a national crypto currency empowers the Marshall Islands, Palau, and other small countries to achieve fiscal autonomy.

What Are the Risks?

Adopting a crypto currency as the legal tender of a sovereign state does not come without its risks.

Volatility is still a major issue plaguing the crypto currency market. Although an IMO will help the country raise a significant amount of money in the short term ($30 million), the lack of a stable currency could reek havoc on an economy where 53,000 people will need to pay for everyday goods and services with a common understanding of how much each item costs.

Image via Fotolia

Ezer and his team will have to figure out how to protect the currency from being influenced by market speculation. It’s not clear whether SOV coins will be listed on an exchange, or even who is allowed to purchase them when the IMO is launched.

If the coins are available for anyone in the world to acquire, then it’s easy to see how outside speculators (AKA crypto whales) could buy up large portions of the currency to just sit on it and wait for the value to go up.

This would stifle economic progress and productivity for an entire nation.

Fortunately, it looks like the underlying technology of the new cryptocurrency will be a public protocol called “Yokwe.” The protocol links users accounts to real government-verified identities, removing the Know-your-customer and financial crime issues that could create the nightmare scenarios mentioned above.

Furthermore, the US, who recently banned its citizens from purchasing Venezuela’s ‘Petro’ cryptocurrency and restricts US investors from launching or participating in ICO’s may not approve.

Lastly, the argument that financial institutions such as banks and Visa now have to accept SOV as legal money is only partially true. As a country with only 53,000 people and a GDP of $183 million, the Marshall Islands simply doesn’t enough leverage for Banks to change their position on what type of money they accept.

Banks could simply choose to not accept SOV, leaving The Marshall Islands in a far worse position.

Conclusion

The Marshall Islands are making a bold step in embracing cryptocurrencies as their national money. The country has been victim to unwarranted damages caused by 12 years of nuclear testing by the United States, of which reparations have still not been paid in full.

Global warming also threatens to render their country uninhabitable unless they can immediately begin funding green energy projects to fight back.

Ultimately the Marshall Islands will serve as a great example for other smaller nations seeking their own fiscal autonomy, and an excellent case study of how Blockchain technology can not only benefit the business world, but also support national, political and humanitarian interests.

Featured Image via Fotolia

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Could Legalized US Sports Betting Drive Blockchain Adoption?

Toju Ometoruwa — Wed, 16 May 2018 21:37:55 +0000

On May 14th, the Supreme Court struck down a federal law that required states to ban gambling on the outcome of sporting events.

Previously the Professional and Amateur Sports Protection Act stated that sports’ gambling was legal on a federal level, but non-permitted by individual States.

The State of New Jersey challenged the federal ban, arguing that it violated the Tenth Amendment, which the Supreme Court has said prohibits federal laws that compel states to carry out federal dictate.

Fans, gamblers, sports teams and speculators all rejoiced when hearing this long-anticipated news. The floodgates have now opened up for all parties to capitalize on the opportunity to make some money in this space.

Indeed, this is non more so for the blockchain based betting projects.

Betting on Blockchain

There is a large emerging crop of Blockchain companies focused on disrupting this industry through the use of decentralized, immutable databases that establish trust and improve the efficiency of transacting between fans and bookmakers.

Beyond improving the betting game itself, Blockchain technology has the potential to implement self-governed systems of control that give the outcomes more transparency. The game payouts are governed by the protocol and nothing more.

There are a number of differences between traditional betting and blockchain based betting. These include the way that games are funded and the amount of information that is provided to the players.

Funding and Payouts

Banks and non-Blockchain digital wallets have always been weary of attaching themselves to online sports betting sites. So much so, that popular betting sites like Bovada would often register the label of their deposits under ‘Gym membership’ or ‘Magazine subscription’ so as to not show up on your Bank Of America bank statements.

Without the reliability of traditional payment gateways to fund sports betting accounts, many have relied on slower, less secure gateways like Money Global or Net seller. These subpar services only make the winning withdrawal process more difficult.

Using Blockchain technology, payments can easily be made by sending funds through your digital wallet, placing your bets in Bitcoin (or whatever tokens the platform uses), and then withdrawing by sending the funds back to your wallet.

Lack of Transparency: “House Always Wins”

The phrase ‘the house always wins’ is indicative of the notorious reputation sports betting houses have for establishing obscure rules that give them the advantage no matter what the outcome of the game is.

Bookmakers have several years worth of statistical analysis to use when determining what the odds should be set for a particular bet.

The odds of an event are always setup in a way that guarantees a profit for the house, regardless of which team wins. Any attempt to use clever strategies to hedge your bets are usually stamped out if you’re caught winning “too much”.

Such circumstances can only come about from a lack of transparency on behalf of these centralized institutions.

Decentralised Alternatives

Image via Fotolia

Platforms like Blitzpredict collect data from multiple sports books and prediction markets, making sure you get to view the best available odds before placing your bets, as well as the quickest form of payout.

Similarly, Augur (REP) harnesses the ‘wisdom of the crowd’ to create a decentralized platform for prediction markets. Users buy and sell shares on the outcome of future events, with the pricing dictated by the crowd-sourced likelihood of the event occurring.

Betheruem provides a decentralized betting platform that doesn’t rely on centralized bookmakers operating as middlemen. Using their Bether token, people can place wages with each other directly on the outcome of an event, and the Ethereum smart contract technology will facilitate the transfer of funds from one party to the next based on who wins. Players set the odds and all transactions are visible on the Blockchain.

What Comes Next?

The ruling to legalize sports betting across all states is just the beginning of a long process in which stakeholders (betting sites, States, Sports teams, etc) will now fiercely negotiate what piece of the $150 billion sports betting pie belongs to them.

Currently, the NBA, MLB and the NFL are negotiating with a handful of states on “integrity fees”. Integrity fees are a tax on legal sports betting that is designed to cover the costs of policing the institution.

Sports Betting Hall. Stock Image

Sports leagues would much rather negotiate the fee with Congress, who then would require the States to pay the same fee all across the board. However that same ruling would contradict the very mandate that allowed sports betting to be legalized in the first place.

If left up to the different States, there’s no guarantee that there will be consensus. What is most likely to happen is that certain states will offer a fair price, while others won’t, and some (like New Jersey) may not wish to negotiate at all.

The most recent reports are that the Sports leagues fee demands have been lowered from 1% to 0.25%, and are currently being negotiated with Kansas, Connecticut, Indiana and New York.

There is also the debate about how intellectual property rights fit into the negotiating process. The ability for sports betting sites to use team names, logos and images in promoting their site is crucial to their success, and could therefore create stronger negotiating leverage for the Leagues.

The States also have the power to determine how sports’ betting is run in their area. For example, some may require all betting be done at a few single physical locations instead of online. Some may choose to operate in isolation from other States, creating shark pools of betting.

Skilled vs. “Just for Fun”

A big part of the allure of sports betting is the fun that comes with friends betting on their favorite team and hoping the Sports Gods make them lucky. The other side of this is the skilled gamers, who use advanced algorithms and mathematics to compute the probability of different outcomes.

The States will need to decide if these people should be allowed to play against the average Joes who are just betting on a whim. Should skilled players be matched with skilled players? How would these categories be determined?

The legal complexity only grows as more questions are asked. Even in the Blockchain space, it doesn’t seem like this problem is being addressed.

Policing New Entrants

The rise of new Blockchain companies in this space also raises the complexity of negotiations. What rules does a decentralized autonomous organization have to play by? Do peer-to-peer sports betting platforms really need to pay an integrity fee? And if they chose not to, how could such laws ever be enforced?

The SEC is still trying to wrap their heads around what Blockchain is, and whether certain coins are a security or utility. So in the immediate term, it doesn’t seem like much effort is going to be placed on negotiating with Blockchain sports betting companies.

Traditional betting institutions are the current face of sports betting, so I believe they will bear the brunt of whatever fees and restrictions come their way, before the league and eventually the States begin to set their sites on Blockchain based companies.

Conclusion

Ultimately it looks like the sports betting fans will be the biggest winners of this new Supreme Court ruling.

Legalizing sports betting in 2018 not only gives them the freedom to use existing services above board, but also opens the doors for them to try a variety of new decentralized applications that offer more trust, security and efficiency in the betting process.

Traditional players in the space will also start to make the jump towards a more decentralized framework in order to reduce the costs and time of processing payments/making withdrawals.

Prior to the Supreme Court rulings, many sports betting sites like Bovada and Intertops had been accepting Bitcoin as an alternative form of payment. This makes them already familiar with the technology and its benefits.

It remains to be seen how the various stakeholders will support each other in the space. However, if one thing is clear, it’s that the Blockchain would be the perfect technology to provide a transparent open ledger for Governments to regulate, sports leagues to monetize.

Featured Image via Fotolia

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Is Puerto Rico The Ideal Home for The Crypto Hodler?

Toju Ometoruwa — Tue, 01 May 2018 18:43:46 +0000

In recent months, the Island of Puerto Rico has become a focal point for the Crypto community.

Investors, Businesses and wealthy speculators are all flocking to the Island that presents itself as a tax haven for which they can build a Crypto Utopia, or “Puertopia”.

This relationship is not one-sided, as Puerto Rico has already created an advisory council to facilitate the development of new Blockchain businesses on the Island.

Why Puerto Rico? Well, the island offers a variety of perks that the crypto community can take advantage of.

The Tax Code

First, Puerto Rico has positioned itself as a beneficial location for new businesses; a tax-friendly extension of the US.

As a U.S commonwealth, Puerto Rico is considered part of the US, but is still somewhat independent. Their tax system, therefore, combine elements of the US tax code with their own.

In 2012, a legislative Act (Act 22 or the Individual investors’ act) was passed that basically provides tax exemptions to eligible individuals residing in Puerto Rico. In order to receive these benefits, an individual needs to become a resident of Puerto Rico and apply for a tax exemption decree.

Image via Fotolia

Benefits include an income tax of only 4%, as well as zero tax on dividends and capital gains.

This may all sound perfect, but the caveat is that becoming a resident of Puerto Rico means you actually have to move there.

Many who choose to move to Puerto Rico make a full commitment by selling their home, moving their family, and cancelling memberships at local clubs or gyms, all to send a clear message to the IRS that although they still hold their US passports, they are now residents of Puerto Rico, and beneficiaries of their tax laws.

Furthermore, applicants must not have been a resident of Puerto Rico within the last 15 years, must reside there for 183 days of the year, and must complete the application process by December 2035.

Puerto Rico created these new tax advantages in order to drive companies to set up on the Island, but it’s not the first time they’ve attempted to draw new business by offering tax leniency.

An Economy on The Decline

Tax laws have always played a significant role in Puerto Rico’s economic prosperity.

In the 1940’s and 50’s, Agriculture was the Islands main economic sector, with much of their Sugarcane being exported to the US. This sector employed 43% of Puerto Rico’s workers.

In the 1960’s and 70’s, Puerto Rico’s largest economic sector became manufacturing. ‘Operation Bootstrap’ opened the country to accepting outside investment, while growing the local labor force. Subsequently, Section 936 of the US tax code gave tax credits to US companies doing business in Puerto Rico. These tax credits were responsible for hiring over 100,000 people and helped sustain the Islands economy for many decades.

However, in 1993, President Clinton developed a plan to slowly cut Section 936 and replace it with Section 30A by 2006. Section 30A was a more moderate form of tax relief that allowed companies to claim 60% of wages and capital investment as non-taxable income.

By replacing the profit based tax system with a wage and investments one, many companies operating in Puerto Rico lost out on the benefits initially promised to them, and decided to close shop, resulting in the loss of half of all manufacturing jobs by 2014.

Puerto Rico’s current unemployment rate is 11%, which is more than twice that of the US, who the Island’s economy relies on more than ever today. Tourism remains the countries most stable contributor to its GDP, but has also been negatively affected by the recent hurricanes.

Hurrican Irma and Maria

In September 2017, Hurricane Irma and Maria destroyed large portions of the Islands infrastructure, cutting power for 1.5 million people, and causing as much as $100 billions in damages.

The underwhelming relief efforts put forth by the US only fueled the need to attract more businesses to invest and help the Island develop some semblance of independence.

As fate would have it, just around this devastating time, the price of cryptocurrencies began to soar, creating a window of opportunity for newly wealthy individuals to flock to the island and begin the rebuilding according to their vision.

New Arrivals

A handful of high profile crypto entrepreneurs made the first migration, purchasing property, rebuilding some damaged real estate, and even negotiating with the Puerto Rican Government to open up a crypto-currency bank.

A few of these people include:

Brock Pierce, former child actor, now Chairman of Bitcoin foundation and advisor for Block.one.
Halsey Minor, founder of Blockchain company Videocoin, who calls the opportunity to reside in Puerto Rico as a ‘godsend’ because of the perfect timing of the Storm
Matt Clemenson, Co-Founder of lottery.com, which uses Blockchain in lotteries
Bryan Larkin – CTO of Blockchain Industries, a publicly traded company now based in Puerto Rico

What tied these people together was their ability to see the potential of the Blockchain and Crypto-Currencies before the most of the tech community. Naturally, such people tend to be libertarian idealists who fantasize about living in societies of self-governance and the purest form of individual freedom.

Even though their wealth was created while living in the US, certain actions have led the crypto community to believe that the US is not an ideal location for pioneers of a decentralized revolution to flourish in.

Challenges

Despite the apparent advantages, crypto Hodlers settling in Puerto Rico will be faced with a number of challenges.

Ease of Doing Business

According to the World Bank Group, Puerto Rico is ranked number 64 out of 190 economies for ease of doing business.

Image Source.

For Distance to the Frontier (which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005) Puerto Rico has a score of 68.85, putting it 10 points above the regional average (Latin America & Caribbean)

Lack of Infrastructure

The recent hurricane not only had a major impact on its electricity but also its Internet connectivity. According to Oracles Internet Intelligence blog, DNS query volumes (which accurately measure internet use) from the Island are still only a fraction of what they were on September 19th, 2017.

Blockchain businesses will need to invest heavily in repairing this area to avoid being at a huge disadvantage on the global stage.

Acceptance by Locals

Locals have been torn on what to expect from the new arrivals, some seeing it as a potential boost to the economy that will create new jobs, and others seeing it as just another form of exploitation by the rich, whose mining operations may be placing strains on Puerto Rico’s limited power supply.

Ultimately it comes down to expectations versus reality. The reality of this situation is that the Crypto community isn’t choosing Puerto Rico because it wants to make a humanitarian effort to save the Islands people. Nor is it looking to create a situation that will intentionally leave them worse off.

Crypto Hodlers are primarily there for the tax incentives, and it should be up to Puerto Rico’s Government officials to leverage the needs of these tech entrepreneurs in a way that benefits its people.

This situation (like many others where wealthy investors seek to ‘rebuild’ impoverished areas) is a negotiation process between 2 parties with opposing agendas, but far too often it gets misrepresented as a collaborative humanitarian effort.

An unfortunate reality is that in a disaster situation, local governments will often negotiate poorly with incoming businesses in order to receive the majority of the benefits these businesses bring in for themselves, while leaving their people with empty promises.

Image Source

For example, the promise of job growth in a highly specialized Blockchain industry simply doesn’t make sense for the majority of Puerto Ricans who work in manufacturing. At best, the crypto community can offer a boost to workers in the service industry, but only a rare few locals will actually be able to contribute anything of value as far as ‘technical capital’ to Blockchain businesses on the Island.

If the Government really wants to create a plan that would go a long way towards adding value at the local level, they should subsidize the cost of local residents learning how to code and becoming expert Blockchain developers over the next 10 years, then export those skills to incoming and local Blockchain companies.

Such a plan would take time, but would at least show that the Islands leaders are thinking long term about ways to uplift its people economically, reduce dependency on US aid, and support Blockchain businesses seeking access to cheaper coders.

Killing 2 Birds With One Stone

The greatest thing about Blockchain technology is its potential to uplift impoverished communities by creating token-based ecosystems that align peoples’ incentives towards performing any sort of task required to earn those tokens.

Following this thought, the biggest asset Crypto entrepreneurs can bring to Puerto Rico is their knowledge of how to build a Blockchain platform that would use tokens to pay local residents (as well as individuals or entities residing outside of the Commonwealth) to repair the land and rebuild its infrastructure.

They could call it the ‘Tokenized disaster relief program”.

The current Crypto pioneers could work with the local Puerto Rican government to develop and launch the application, get the ‘TDRP’ tokens listen on public exchanges and empower millions of people to rebuild the Island. All while avoiding the heavy tax burden imposed by the US mainland.

This solution could be especially useful for the previously cited 11% of Puerto Rico’s unemployed residents. Furthermore, TDRP tokens could have their value tied to the Islands GDP, creating an even greater long-term incentive to buy them, or earn them by contributing to the Islands disaster relief and infrastructure rebuilding efforts.

There’s no reason why a technology that is poised to disrupt all industries and become the next Internet shouldn’t also be utilized to tackle the age-old problems of disaster relief and infrastructure redevelopment.

Moreover, there probably isn’t a more fitting way to introduce the local population to how a Crypto Utopia should actually function.

Conclusion

Image via Fotolia

The answer to whether Puerto Rico is the ideal home for the Crypto Hodler depends on what each individual wants to achieve.

If lowering your tax bill is the primary goal, then strictly following the rules in Act 22 of the tax code (which means relocating to Puerto Rico and residing on the Island for 183 days of the year) will make you successful.

But if your goal is to establish a Crypto Utopia, think first about what part the local population has to play in this Utopia.

Are they invited along to participate and experience the benefits of a tokenized economic model that creates monetary incentives to rebuild their Island? Or is Puerto Rico nothing more than a vessel for the new class of Blockchain elite to form gated communities under the guise of free-thinking libertarian ideals?

If the latter is true, then I suggest embracing the Hodler mindset, as you will be faced with a number of challenges, from poor infrastructure resulting in substandard internet connectivity, to resistance from some local residents who will scream ‘down with crypto colonialism!’

All of these problems will be yours to fix alone, as long as the local population remains ignorant of and excluded from the benefits of Blockchain technology can have on their lives.

It remains to be seen how the influx of the crypto rich will support those at the bottom of Puerto Rico’s society, and whether the early birds of this revolutionary technology can gather the foresight to apply it to the disaster relief and infrastructure problems the Island currently faces.

One thing is for sure; there isn’t much that’s going to keep a current or aspiring crypto millionaire away from taking a weekend trip over to the sunny tax haven that is Puerto Rico.

Featured Image via Fotolia

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The Verge & Pornhub “Partnership”: Implications for XVG and Crypto

Editorial Team — Sat, 21 Apr 2018 03:23:05 +0000

It has been all the talk throughout the week. The long awaited Verge (XVG) partnership was revealed to be none other than Pornhub.

This announcement had a fair amount of mixed reactions.

There were some who viewed this as nothing more than a paid marketing drive by a privacy coin that was not very private which had suffered a hack only two weeks prior.

There were others who saw this as another potential use case for cryptocurrency. The more people that use cryptocurrency aids in the adoption of blockchain technology in the long run.

So, who is right?

The real answer is both. There have always been legitimate concerns with Verge’s technology and marketing practices. These have not changed and continue to attract negative attention to the cryptocurrency.

But there are also benefits for the entire ecosystem for greater adoption and awareness. Despite your views of pornography, it is one of the most innovative industries when it comes to new technology (out of necessity).

We will take a deep dive into the partnership and what it means. But first, let’s take a quick look at Verge’s crazy month.

The $3m Secret Partnership

We previously covered Verge’s fundraising efforts for the potential partnership back in March. The way it was positioned was that Verge needed money in order to pay for integration with the potential partner.

There was a catch though.

They were not going to reveal the name of the partner as they had signed an NDA. Moreover, if they did not raise the funds then the partnership would not go through.

This caused quite a stir in the cryptocurrency community as people saw it as unethical to dangle a potential partnership as an incentive to raise more funds from the community.

Despite these objections, Verge managed to raise the required funds. This was much to the delight of the developer and all the investors. The partnership announcement though, had to be moved back a few weeks to the 17th of April.

The Blockchain Hack and The Accidental Hard Fork

Image via Fotolia

While all seemed to be going well on the fund raising front, there was something fishy working its way through the Verge blockchain. A malicious miner was exploiting a bug in the Verge protocol.

The miner was using this vulnerability to mine millions of XVG over a period of a few hours. This was picked up by a veteran pool operator who subsequently alerted the community on Bitcointalk.

The Verge developers, however, took drastic steps.

The steps were so drastic that they accidentally hard forked the Verge blockchain. This meant that the Verge client was only able to sync only up to a certain block height. This understandably caused a great deal of commotion and the developers had to handle some self-inflicted damage control.

Speculation, Conspiracies & a Rally

After the hack had taken place and the partnership money had been raised, Verge maximalists and Verge sceptics retreated to their own battle stations.

There was a great sense of hubris on the Verge subreddit as people speculated about partnerships as wild and wonderful as Amazon, Microsoft and Github. The result of these optimistic assertions was a rally in XVG.

On the side-lines, the rest of the cryptocurrency community railed against them. They claimed that Verge was about to pull off an exit scam and that the developer was trying to pay his taxes with raised funds.

Of course, the developer did not help himself by claiming that the funds were being used to pay for ledger integration. People in the community reached out to the ledger team and discovered that there was no ongoing communication.

Despite this, the price continued to climb up until the announcement day on the 17th of April. The entire cryptocurrency community was standing in line with baited breath.

MindGeek, a Porn Empire

The partner was revealed to be Mindgeek. The inconspicuous name is actually the owner and operator of the largest online pornography websites in the world. The company owns Pornhub, YouPorn, Brazzers and RedTube.

They are indeed a massive business.

Below are some of the statistics that the company was happy to share. They are a private company so publicly available information is hard to come by. The company is domiciled in Luxembourg with a head office in Montreal. However, it operates through numerous subsidiaries across a range of different jurisdictions.

Image via mindgeek.com

To get a mere idea of the scale of the business, one need only take a look at the revenue of a mere subsidiary in Dublin. The firm, MG Billing Ireland Ltd had $427 million in 2014 and 2015. One can be certain that this is just one of many such subsidiary firms.

This is the partner that was announced on the 17th of April. There were a number of catchy promotional videos including such stars as Stormy Daniels and Asa Akira. They hired Lamborghinis with the Verge and Pornhub logo emblazoned on the bonnets.

https://twitter.com/CalicoCrypto/status/986318194779439105

This promotional drive was no doubt highly beneficial to both Verge and Pornhub. However, it is most likely that a large proportion of the cost of this exercise came from Verge holders through the March donation.

But No One Pays for Porn?

Many people have this assertion. They think that because porn is free that there are people who do not pay for it. While it seems logical, it is incorrect. There is massive money behind premium memberships on so called “pay sites”.

These pay sites are the likes of Brazzers and Reality Kings. Brazzers is one of Pornhubs premier production companies. They charge users for these premium memberships that gives them access to ad-free premium content that is uncut.

So, just because you won’t pay for it doesn’t mean there aren’t people who will.

As we have seen from the numbers of the Irish subsidiary, MindGeek is processing hundreds of millions of Euros for these premium subscriptions. These were most likely credit card transactions. Hence, is there a need for a private way of paying?

This is where Pornhub and Verge naturally aligned interests. Give the users a chance to pay through an anonymous medium to avoid certain “stigmas” that are attached to paying for porn.

Why Get into Bed with Verge?

This is where many in the community were quite surprised. Verge is not new to controversy. For example, there was the situation at the end of last year when John McAfee promoted the coin. There was a lot of suspicion around this promotion and the subsequent withdrawal of it.

Moreover, the whole notion of using a “private” cryptocurrency that has a public blockchain is quite bizarre. There are other cryptocurrencies such as Monero (XMR) that are known to have the most secure and proven privacy protocols.

So the question is: why Verge?

It is unlikely that any of the other privacy conscious coins such as Monero or Zcash etc. would pay the $3m required for the integration and marketing. Given that Verge was willing to meet this cost, it was a simple economic decision from Pornhub.

The Implications for Verge

While the circumstances around the partnership are suspect, one cannot deny the broader impact this is likely to have on the Verge brand. PornHub is one of the most trafficked websites in the world and people will constantly be reminded that they can pay with XVG.

Image via pornhub.com

Moreover, if people truly do start paying for their subscriptions in Verge then it is likely to increase adoption. If they know that they can use Verge to pay for something like a porn subscription then they will no doubt use it for other goods and services.

Was this worth the 75 million XVG?

That is up to Verge holders to decide. There are still many issues that are plaguing Verge and it has to develop bulletproof privacy technology if it is to really be taken seriously as 100% secure privacy coin.

Beneficial for Cryptocurrencies?

The only way in which cryptocurrencies can truly overtake centralised money systems is through wide scale adoption. The more that people use cryptocurrency in their daily life, the more likely they are to resist pressure by the centralised authorities.

The porn industry was known to be one of the most eager adopters of VHS, DVD and the internet. If the Verge partnership is another way for adoption to be accelerated then it is no doubt a positive outcome for the ecosystem.

There is also the chance that PornHub could later decide to integrate other cryptocurrencies upon requests from their users.

“The Future has Cum”

So in the end, Verge did not pull an exit scam. They used the money that they raised to secure a partnership with one of the largest web based companies in the world.

There are problems that they need to address and the Proof of Concept of paying for porn with Verge needs to be fully tested. Indeed, the performance of XVG post announcement shows that there are many that are unconvinced.

The cryptocurrency world will remain sceptical of the coin and the debates will often rage back and forth. Yet, this is another notch on the belt of crypto vs. fiat.

If cryptocurrencies can eat into a large chunk of Visa’s processing fees on premium porn, that is a victory worth taking.

Featured Image via Fotolia

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Big Players are Moving into Blockchain – Here Are 13 Examples

Mike Jenkins — Mon, 16 Apr 2018 18:28:01 +0000

Blockchain Technology has been the talk of the town lately.

Denoting a decentralized, tamper-resistant digital ledger, it is at the core of the cryptocurrency ecosystem. The characteristics of this tech, though, allow for alternative applications in various domains, including the traditional financial sector, logistics, energy production and many more.

A lot of corporations are still working with heaps of paper and regular databases in their day-to-day activities. Documentation flow and business processes in this form are, obviously, becoming redundant, unnecessarily complex and obsolete. Decentralized blockchain systems might be the response to the nontrivial issue of modernizing this old school routine and making it align with the global progress in the digital realm.

This article is going to shed light on some big players that have already made promising steps toward implementing the blockchain in their modus operandi.

1. Partnership Between Microsoft & ID2020 Alliance

Software giant Microsoft has teamed up with ID2020 Alliance, a global initiative aimed at filling the void of identity documentation in different parts of the world. The latter combines the efforts of governments, NGOs, and private companies under one umbrella to improve people’s lives.

Microsoft has stepped in to facilitate the creation of a blockchain-based identity management technology using Microsoft Azure. To this end, the corporation is also partnering with Accenture and Avanade digital service providers.

2. Goldman Sachs With a Cryptocurrency Trading Desk

Goldman Sachs, a multinational financial services company headquartered in New York, is up to creating a cryptocurrency trading desk. This ambitious initiative will reportedly go live by June 2018. The investment bank’s officials have stated they would pilot deals related to Bitcoin, the progenitor of all modern crypto coins.

In response to criticism, CEO Lloyd Blankfein has emphasized that people were once skeptical about paper money displacing gold as the savings and payment means.

3. BHP Billiton Follows Suit

BHP Billiton, the world’s largest resources company engaged in mining, metals, and petroleum, is partnering with BlockApps and ConsenSys technology firms to implement a blockchain-based system for more efficient real-time tracking of fluid and wellbore rock samples.

This system will be built using the Ethereum platform that accommodates a smart contract feature. BHP is reportedly planning to encourage its contractors to join and leverage what’s called the InterPlanetary File System (IPFS) for storing and exchanging operational data. This is a P2P protocol often used with blockchain startups.

4. Maersk and IBM

The world’s leading transportation conglomerate Maersk is going to cooperate with IBM to create a blockchain-based system tasked with facilitating its business operations. The would-be joint venture is expected to help ports, customs, banks and other involved entities substitute paperwork with a robust digital ledger and simultaneously protect them from modern cyber threats.

The current state of things in the industry heavily relies on documentation which, when lost somewhere along the supply chain, causes edible and other perishable goods to spoil. Last year, Maersk had teamed up with Guardtime, an enterprise blockchain initiative, to elaborate an ad hoc insurance system based on the blockchain.

5. FedEx, UPS and BNSF Railway Giving Blockchain a Shot

Hundreds of big players in the freight industry, including FedEx, UPS, BNSF Railway and Schneider Trucking, have joined BiTA (Blockchain in Transport Alliance). This project pursues the goal of introducing uniform standards for testing and deploying blockchain applications in global transportation and logistics.

6. Pemex Keeps Going the Innovation Route

Pemex, Mexico’s largest petroleum company, has partnered with Petroteq Energy to develop a tamper-proof ledger aimed at taking its business operations a notch further. The technology will rely on Petroteq’s proprietary blockchain-based platform called PetroBLOQ.

It’s noteworthy that Pemex had pioneered in accepting cryptocurrency as a means of payment in the petroleum industry. The supply chain management (SCM) solution to be launched is another evidence of the company’s commitment to implementing cutting-edge tech.

7. UBS & Other Banks giving Ethereum Blockchain a Shot

Multinational financial companies and banks, including UBS, Credit Suisse, and Barclays, are reportedly intending to use Ethereum-borne blockchain to facilitate compliance with the new MiFID II / MiFIR legislative framework that took effect in January 2018.

The technology will assist participating banks in cross-referencing and verifying Legal Entity Identifier (LEI) information. Companies from the finance sector have been also actively working on utilizing distributed ledgers to streamline back office operations, which will purportedly save them about $20 billion annually.

8. Nestle, Walmart and Others Run a Blockchain Project

The big names in the food industry are trying to tackle the challenge of food safety using the blockchain. Walmart, Unilever, Nestle, Kroger and a number of other corporations have been cooperating with IBM on this issue since August 2017. The pilot is intended to improve supply chain tracking.

In particular, it can reduce shipment tracking time from days to seconds – something that definitely makes a difference. Furthermore, this blockchain implementation should facilitate safety recalls.

9. The United Nations keeps up The Trend

Another noteworthy blockchain use case has to do with the United Nations’ Climate Change Coalition. The organization is considering the implementation of distributed ledger technology (DLT) to bolster its climate change research.

The system is expected to revolutionize the workflows for providing real-time data on emissions and carbon trading statistics. Another benefit of leveraging DLT is that the research will be no longer susceptible to adverse political influence.

This isn’t the UN’s first move toward harnessing the new tech. It has previously used the Ethereum platform to support Syrian refugees by providing them with blockchain-based food vouchers.

10. TEPCO Innovates The Energy Sector

Japan’s leading utility provider TEPCO (Tokyo Electric Power Company) is partnering with the Electron platform to create a unified infrastructure for its business processes. This move can become a game changer in the entire industry, which currently uses separate services for registration, accounting, and settlement.

By integrating all these records into a single ledger, energy providers will be able to keep track of transactions, assets and metering data more efficiently.

11. Illinois Makes a Breakthrough in Healthcare Licensing

The Illinois Department of Financial and Professional Regulation is collaborating with healthcare blockchain innovation firm Hashed Health on a project aimed at streamlining physician licensing in the state.

Specifically, the pilot’s mission is to automate the cumbersome processes currently accompanying licensure in Illinois. It is also anticipated to enhance the accuracy of medical credentialing and data sharing in the healthcare sector.

12. Blockchain-based ID Platform to Emerge in Brazil

The Brazilian government is planning to take advantage of the Ethereum blockchain for improving identity-related processes. The country’s Ministry of Planning, Budget and Management is experimenting with the implementation of uPort, an open identity system crafted by ConsenSys.

This way, residents will be able to register their own identity on Ethereum, manage credentials, and authorize transactions while resting assured their personal keys and data are safe. Meanwhile, the government will have more opportunities to verify the legitimacy of citizens’ IDs.

13. DKMS and Birth Registration Pilots by Evernym

Evernym, a provider of a new distributed ledger dedicated to solving birth registration problems, received a research grant for nearly $794,000 from the U.S. Department of Homeland Security to devise a Decentralized Key Management System (DKMS) for the government.

The company is also partnering with the Illinois Blockchain Initiative (IBI) to create a ledger-based birth registration system.

The Bottom Line

Although multiple industries could certainly benefit from implementing the blockchain technology, the use of distributed ledgers in domains other than cryptocurrency isn’t too common thus far. Even large multinational corporations and governments are only making small first steps toward revolutionizing their activities with this remarkable tech.

Most of the above cases are pilots that have yet to be deployed on a large scale. However, the results already look promising for the transportation, finance, food supply, energy, healthcare, identity, climate research and humanitarian aid sectors. Hopefully, this list will continue to expand.

Images via Fotolia

The post Big Players are Moving into Blockchain – Here Are 13 Examples appeared first on Coin Bureau.

The Top Five Things Bitcoin Opponents Just Don’t Get

Editorial Team — Sun, 18 Mar 2018 18:13:28 +0000

Bitcoin & Co.’s prices are still on a roller coaster ride. Bitcoin, the flagship of all cryptocurrencies, recently fell below $6,000.

Now it’s over $7,000 again. Recent causes of turbulence were a possible crypto ban in India and the ordered phase-out of crypto mining in China. Then came some regulatory actions in the US and EU that were rather neutral but had a negative impact on the price.

The critics felt immediately confirmed. The price is falling, the bubble is bursting. But are the sceptics correct?

In the following, we will debunk the top five things Bitcoin opponents just don’t understand.

1. Bitcoin is a new technology, not an investment

Behind the hype around bitcoin and cryptocurrencies is a technology, the so-called blockchain. Blockchain is a relatively simple use of existing cryptographic algorithms. Since January 2009 Bitcoin has proven that Blockchain works and is safe.

The biggest mistake of the Bitcoin opponents is to consider Bitcoin as an investment. The claim that Bitcoin is a pyramid scheme or Ponzi scheme comes precisely from this point of view. What the opponents forget is that behind Bitcoin is neither an organization nor an individual who could dictate the course. Last year’s performance was the result of the free market.

The following price collapse was the result of legal uncertainty. This after various states, including China, South Korea and India, made unclear statements about the legality of cryptocurrencies. This legal uncertainty will continue to affect the crypto courses in the coming months.

Bitcoin and Blockchain, however, continue to develop and enter the already digitized society. Even if cryptocurrencies would be banned globally, the blockchain technology is not leaving. As a disruptive technology, Blockchain will replace existing business models, with or without the cryptocurrency Bitcoin.

2. Cryptocurrencies have global potential

Image via Fotolia

Bitcoin opponents argue that Bitcoins have no value and are therefore not good means of payment. The fact that banknotes also have no real value only moderately disturbs opponents. All you have to do is put a central bank behind the paper money. It implies security.

Central banks control the money supply and set inflation targets. This is for the common good or at least for the good of one’s own economy. Since the value of money is directly linked to the competitiveness of a country, currencies are generally depressed rather than raised. This leads to international tensions and trade conflicts. The damage to savers caused by real negative interest rates tends to be marginal.

Because Bitcoin and many other cryptocurrencies are not subject to a central control body, they have the potential to be accepted internationally as a means of payment. By contrast, the creation of a global single currency through an international central bank would be a mere utopia.

3. Money is a Tool

Money was invented because bartering in kind is a tedious and inefficient means of exchange. A good monetary asset has the following properties: it can be stored for a long time, it is easy to transport, it can be easily exchanged, it can be divided into smaller units, the monetary units are limited, equivalent and difficult to counterfeit.

All these requirements are met by cryptocurrencies better than real currencies and even better than coins and precious metals in the past.

Cryptocurrencies are digital money and a further step in digitalization. With a cryptocurrency, amounts of any size can be stored securely without banks, and values can be transferred quickly and easily globally.

All you need to use cryptocurrencies is a computer or a mobile phone and an Internet connection. Ok, a hardware wallet is also good thing to have, so you can sleep at ease. Things, in other words, that everyone owns and carries around with them today.

4. Early Growing Pains are being eradicated

Since November, countless bitcoin transactions have been stuck. Only recently the Bitcoin network was able to process the outstanding transactions. The cause of the blockage lies on the one hand in the fixed block size of one megabyte and on the other hand in the block interval of about 10 minutes. Thus, the transaction maximum of Bitcoin is optimistically estimated at about seven transactions per second.

For this reason, many Bitcoin opponents believe Bitcoin is not a good international currency. That’s true, of course, seven transactions per second is far too few. As a global currency, several thousand transactions per second would be a minimum.

Bitcoin is the very first cryptocurrency there is, and it still struggles with a few teething troubles. But one does not judge today’s Internet by the download speed of 1992.

Numerous cryptocurrencies have already massively increased the transaction limit. To think that Bitcoin’s transaction limit is a physical limit that cannot be technically moved is naive.

Even Bitcoin itself has been innovating with improvements that have drastically reduced transaction times as well as uncomfirmed transactions. In the below image we have the Bitcoin memepool.

The Bitcoin Memepool over time

As you can see, the size of the Bitcoin memepool (uncomfirmed transactions) has been decreasing steadily since November of last year. This could be down to a number of factors including further SegWit adoption as well as new innovations such as the lightning network.

5. Regulation could be a new beginning and not the end

The regulation of cryptocurrencies and especially of ICOs is urgently needed. Cryptocurrencies can be misused as illegal money, for money laundering and for tax evasion. Up to now, the existing money has been used for this purpose.

Bitcoin is new and therefore even more difficult for the authorities to assess. In principle, however, the problem remains exactly the same, and it can be expected that authorities, above all tax offices and the police, will be able to deal with cryptocurrencies in the future.

Many Bitcoin opponents believe that the regulation of Bitcoin can only have negative consequences on the price. It is more likely that regulation and the resulting legal certainty will lead to a renewed boom and to a permanent spread and use of cryptocurrencies.

Conclusion

It is unlikely that Bitcoin will ultimately become the global currency. The Bitcoin developers and the Bitcoin network are too divided for Bitcoin to position itself as a global currency. However, it is to be expected that a cryptocurrency will prevail in the long term.

The only alternative would be to ban or over-regulate cryptocurrencies on a global level. However, this is unlikely with such a promising technology and would be in clear contradiction to the technological development of the last 20 years.

Featured Image via Fotolia

The post The Top Five Things Bitcoin Opponents Just Don’t Get appeared first on Coin Bureau.

Liberland – Your Bitcoin Friendly Libertarian Micronation

Editorial Team — Fri, 23 Feb 2018 18:45:09 +0000

Have you ever dreamed of living in a libertarian paradise? How about one with lots of sandy beaches? What if one of the primary currencies of this potential paradise is bitcoin?

That’s the dream behind Liberland, a micronation that was somewhat unofficially formed back in 2015 in between Serbia and Croatia.

But what is Liberland, and is anyone really living there?

Libertarianism – a rough overview

Many who support cryptocurrency on an ideological level tend to lean more towards libertarian beliefs. Libertarianism is the idea that individual freedoms and choices should be the most important things protected by a society.

Generally speaking, libertarianism believes that governments should be as small as possible, and have as little influence on an individual’s life as possible. For instance, a fairly common belief within the libertarian spectrum of thought is that anything consenting adults do to themselves that doesn’t harm anyone else should be legal.

For example, recreational drugs, according to many libertarians, should be legal. Likewise, libertarianism is completely against anything that one could describe as a nanny state.

As cryptocurrency allows for the completely independent and sovereign control of one’s finances without any interference from governments or banks, it’s it seems too many to be a perfect tool.

Famous American performers Penn & Teller are two well known and highly outspoken libertarians. Their former HBO show, “Penn & Teller: Bullshit!“, is something of an introductory course to libertianism weaved into investigations, magic, and comedy.

Liberland, a paradise or just a fantasy?

Liberland Flag. Source: Wikipedia.org

Back in 2015, the country of Liberland was declared by its creator and current president, Vít Jedlička. The location of Liberland is in a disputed area in between Serbia and Croatia. Currently, both these nations claim ownership of the piece of land in which Liberland supposedly exists.

This unique balance means that neither one country wants to encroach on the territory. This, according to Liberland, makes the piece of land a “no mans land”, and thus it is up for grabs.

Today, almost anyone can hypothetically become a citizen of Liberland. All one needs to do is fill out a citizenship application on the official Liberland website and then wait for a response. While there aren’t any clear numbers available, other news outlets are suggesting that there are around 100 citizens of Liberland,. Although, no one appears to be living there full-time.

The difficulty with Liberland right now is that entering the country requires crossing the borders of either Serbia or Croatia, and currently, neither country seems to be permissive. At times, the president of Liberland has been arrested and held in detention for several days due to his supposedly entering his own country illegally.

The goals of Liberland

In the official Liberland journal published in February of this year, images can be seen of glimmering glass and steel skyscrapers and futuristic cityscapes. While this may not exist yet, it is undoubtedly the goal of the nation’s founder.

The motto of the country is “to live and let live” further suggesting it’s libertarian roots. The country describes itself as a “constitutional republic with elements of direct democracy” and exists in an area the size of 7 km².

One of the more important aspirations of the country is to make full and widespread use of blockchain technology. The country has been asking for and receiving tens of thousands of dollars in donations in the form of bitcoin and bitcoin cash for the last few years.

The country also aims to have its own cryptocurrency (which supposedly already exists) called Merits. The laws of the nation, however, specify that there are no restrictions on what type of currency its citizens decide to use.

What if this works?

Liberland Citizenship. Source: Wikipedia.org

While it’s easy to automatically dismiss Liberland, it is interesting to think what may happen if it really becomes a success. Liberland could one day become the Hong Kong or Singapore of Europe. That being a highly autonomous marketplace of free enterprise, exchange, and innovation.

But instead of being powered by ocean trade and global corporations setting up shop there, it could be powered by an unrestrained and absolute support for blockchain technology and cryptocurrencies.

Further, as tax laws towards cryptocurrency become more extreme and arguably greedy, there one day could be many tens of thousands of people with cryptocurrency fortunes that simply do not want to pay their respective governments a massive portion of their wealth.

Libertarianism generally aims to to have little to no taxes at all, as many civil services would be privatized and paid for on an as-needed basis.

This concept of leaving ones country to avoid excessive taxation is not unheard of. Roger Ver, the loudest proponent of bitcoin cash, is an excellent example of this. He was formerly a citizen of the United States, but he gave up his citizenship and immigrated to the nation of Saint Kitts.

While it’s unlikely that Liberland will be full of the glimmering skyscrapers seen in its journal in just the next few years, it’s not impossible that Liberland or another place like it will become the next Boomtown.

Featured Image via Liberland Brochure

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eBay Signs with BitPay Partner Adyen – Bitcoin Payments Coming Soon?

Editorial Team — Sun, 11 Feb 2018 18:02:51 +0000

For the past few months, rumors have been swirling around that eBay is going to start accepting cryptocurrency payments. While nothing solid has come out yet, news of a major deal with payment Dutch provider Adyen could soon change that. Adyen previously made an arrangement with BitPay, a well known and highly respected bitcoin payment processor.

Step 1 – eBay Drops PayPal

In a major announcement made at the start of this month, PayPal is taking steps away from PayPal as its preferred payment method. PayPal has fallen on hard times recently as competition from more nimble operators like Venmo and cryptocurrency as a whole have largely undercut the behemoth.

eBay has instead decided to pursue a professional relationship with Dutch payment processor, Adyen. According to its official website, the company aims to offer “No interruptions or disruptions; just a smooth, secure experience, every time.” Adyen also claims to be “fully omnichannel”, meaning that the experience of buying on the web, in-store, or with a mobile phone should all be unified.

Step 2 – Adyen Partners With BitPay

BitPay, a well-known bitcoin payment processor that assists companies in receiving cryptocurrency payments and getting fiat cash has apparently joined forces with Adyen.

In the blog post from BitPay announcing the partnership, Tony Gallippi of BitPay writes:

Adyen’s merchants can now easily accept bitcoin as a payment method from their e-commerce stores. Through the integration, each merchant’s bitcoin sales will be seamlessly included in their reporting and settlement from Adyen. These are the types of integrations needed to advance bitcoin.

The blog post states that Adyen accepts over 180 currencies and “over 250 payment methods”, which presumably includes credit card networks like Visa and Mastercard, and now cryptocurrencies like bitcoin.

Step 3 – eBay To Accept Bitcoin?

Back in December, Senior VP of eBay Americas Scott Cutler made the infamous statement that eBay is “seriously considering” bitcoin, but that “we’re not quite there yet.”

Today, eBay is where many cryptocurrency enthusiasts go to find mining hardware, related clothing, and collectibles. It’s easy to say that if eBay were to start accepting bitcoin, it would easily be a big win for the company and could see major boosts in sales.

Most likely, however, most individual sellers on eBay would choose to receive fiat currency as their payment method of choice. This is entirely possible through BitPay, however, there are some fees involved in the transaction.

Finally, as payment terms can be agreed on between the buyer and seller outside of eBay, cryptocurrency payments are and always have been an option.

Another site that is well known for helping facilitate peer to peer sales, Craigslist, started adding an option for ads to list as “cryptocurrency ok”. Search results for any given category can be filtered to only include cryptocurrency friendly sales.

We did a search for antiques in a New Jersey suburb and found a handful of items for sale that at least in theory accept cryptocurrency as a form of payment. One item was this charming antique barber chair, where “cryptocurrency ok” can be seen on the right hand side.

Image via Craigslist.com

eBay, however, represents many billions of dollars in transactions each year and has grown to become a global conglomerate. They have a near monopoly on the second-hand sales and peer to peer sales market.

With the partnership with Adyen and their partnership with BitPay, there is very little standing in the way now. All that’s left is for someone on the top of the eBay corporate ladder to say “let’s do it”.

We hope that this day will come sooner, rather than later.

Featured Image via Fotolia & Ebay

The post eBay Signs with BitPay Partner Adyen – Bitcoin Payments Coming Soon? appeared first on Coin Bureau.

On The Dark Web, Litecoin is Gaining Ground on Bitcoin for Payments

Editorial Team — Fri, 09 Feb 2018 00:38:17 +0000

Bitcoin has been the cryptocurrency of choice on darknet markets since its inception. However, the increased fees and slow transaction times are forcing darknet users to consider other coins.

Indeed, Bitcoin has become too mainstream for criminals as the extent of law enforcement tracking powers have been disclosed.

It is often very difficult to get a judgement of exactly which coins are favoured by those who operate on the dark web. However, an interesting report has recently delved into this internet underground and found interesting results.

They conducted an extensive analysis while looking into all of the online forums, marketplaces and message boards. The results of their research may surprise you…

A Dissatisfaction with Bitcoin

One thing that the researchers discovered was a common trend across borders and languages was the increasing difficulty that came with using Bitcoin. Given the size of the usual transactions on the dark web, the fees that were required made them unfeasible.

Apart from the increased fees of completing the transactions, the time for confirmations was also increasing substantially. Hence, vendors had to institute a rule that they would wait for three confirmations on the network before concluding the sale was complete.

Slow transaction times are frustrating as is but they are that much more disconcerting for those users who use them to purchase something illegal from the darkweb.

Recorded Future Study

Results of DarkWeb Polls. Source: recordedfuture.com

The investigators at Recorded Future then went on to try and establish which of those coins are beginning to replace Bitcoin as the currency of choice on the Darknet. The results of the poll that they conducted are to the right.

This poll was conducted on a criminal hacking forum and it clearly shows that the privacy concious coins are the leading contender as the next dark net version of Bitcoin. Monero (XMR) and Dash took the first and second place with 21.82% and 20.61% respectively.

However, these were just the results of one forum on the darknet and hence cannot be considered as a comprehensive representation. After doing a more thorough analysis, the team concluded that Bitcoin was still the vendor coin of choice on the networks.

Accepted Coins by Vendors. Source: recordedfuture.com

All vendors that were surveyed by the researchers still offered Bitcoin as an accepted means of payment. What is more of a surprise though is that Litecoin is the second most accepted coin by the vendors with over 30% of them accepting it as a method of payment.

Coming in at third place was Dash with a 20% share of vendors who accepted it as a payment method. This shows that although there are other cryptocurrencies such as Monero who have more privacy protocols than Litecoin, the vendors loved the fast transaction times and low transaction fees of Litecoin. The results are in the image to the right.

They also broke down the results based on region of operation for more clarity. As you can see, those who operate in the English speaking world are more worried about privacy and opt for Monero. The Eastern European markets are more concerned about transparent fees and have favoured Litecoin.

What the Results Mean

The research gives us further evidence that innovation and adaption is fully underway on the dark web. Given the problems associated with Bitcoin transaction backlogs and law enforcement blockchain audits, they are turning to other coins.

However, it also shows that there is no uniform standard accross darkweb users as to which coin should replace it. There seems to be notion that users want a coin that is quick to use and relatively cheap as well as having advanced security protocols.

Perhaps it is fitting that coins such as Litecoin and Monero have high marks in this community. The senior developers of the two cryptocurrencies have flirted with the idea of a cross chain atomic swap.

It would be important to watch how the adoption rates of different cryptocurrencies progress on the dark web. If there is one thing that we can learn from Bitcoin it is that the early adopters of the dark web have a knowledge of what is likely to disrupt the mainstream later.

Featured Image via Fotolia

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Large Chinese Payment Network Partners with Ripple: More to Come?

Editorial Team — Wed, 07 Feb 2018 21:38:07 +0000

The fourth largest payment processor in China, LianLian has announced that they will officially be partnering with Ripple in order to make use of the company’s blockchain technology for cross border payments.

The hope is that RippleNet, as the technology is known, will now officially have a gateway into the Chinese and Asian payments industry.

LianLian is a company that is registered in Hong Kong and has over 150 million users. They are often seen as one of the largest payment processors for the likes of Amazon, Ali Express and Ebay. As such, a large amount of their payments originate in another currency.

Terms of the Agreement

Under the terms of the agreement between LianLian and Ripple, they will make use of the xCurrent platform for all of their settlement requirements. This platform will allow LianLian to connect to other Asian banks who are using the RippleNet network already.

Those consumers who bank with these other institutions will be able to easily and effectively buy products on a large Chinese e-tailer in their own currency. Given how fast and efficient Ripple payments take place, this is beneficial for all parties.

Emi Yoshikawa who is Ripple’s director of Joint Venture Partnerships had the following to say about the announcement:

With RippleNet, LianLian will now be able to provide merchants and consumers with on-demand payments, which they weren’t able to before. We look forward to connecting other RippleNet members to LianLian

The sentiment was also shared by the senior team at LianLian. The Chairman of the company’s board saw the partnership as an opportunity for them to increase their market share in the China with the instant blockchain powered payments in 19 currencies. He went on to say:

We look forward to working with Ripple to power payment flows between China and RippleNet members in new markets

Implications for Ripple

As the price of the XRP token has soared and then fallen in line with other cryptocurrencies, the company has been forging new partnerships and growing out the Ripple network.

They had recently partnered with the large money remittance company, MoneyGram which would see them using the xRapid protocol to speed up their remittances at partner banks.

There was also the recent announcement that Ripple had signed a deal with Santander where they would develop a mobile application which would allow users to effortlessly send payments in different currencies.

Indeed, it has also emerged today in a presentation by Brad Garlinghouse at the Yahoo AMS that Ripple is working with the Bank of England as well as another unnamed central bank.

All this points to increased adoption of Ripple by large financial institutions. It shows that there is indeed a use case for the technology and that banks and payment businesses have as much to gain from blockchain technology as traditional cryptocurrencies.

Although markets are currently at monthly lows, these developments could no doubt put positive pressure on XRP in the next few months.

Featured Image via Fotolia

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Litecoin to Get Own Payment Processor This February – Litepay

Editorial Team — Wed, 07 Feb 2018 15:31:33 +0000

Litecoin, the ever popular altcoin that frequently boasts fast transaction times and low fees is about to get its own payment provider. The of the soon to be payment provider is Litepay.

It may even get its own set of linked payment cards that would allow users to directly spend Litecoin at any retail outlet that accepts that type of payment card. The service is supposedly going to launch in February of this year.

Will people want to use it, and will it improve the visibility and usage of Litecoin as a whole?

Bitpay for Litecoin?

In recent years, we’ve seen a number of payment processing providers offer support for various cryptocurrencies, most commonly bitcoin. While the individual transaction fees of bitcoin have been dropping this week, Litecoin still offers a more affordable alternative. Litecoin transactions still remain at just a few cents each or less, while bitcoin fees on a good day are just under a dollar.

You may be asking, what is a payment provider?

Basically speaking, this is equivalent to a company that helps retail outlets process credit card transactions. A payment processor for cryptocurrency means that it is a company that will help retailers accept payment cards or other payment methods of cryptocurrency (such as from a mobile wallet that scans a QR code) and then immediately or quickly deposited in their account an equivalent amount of the local fiat currency.

While some store owners may be on the forefront of cryptocurrency and be willing to accept it directly as payment, unfortunately, many businesses have strict tax laws or oversights that force them to deal exclusively in fiat currency. Some countries even directly outlaw businesses from accepting cryptocurrency such as China.

Further, many credit card companies often charge quite a high fee to retailers in order to process their credit card transactions. According to the Litepay official website, credit card fees are often 3% or more.

To make things worse, credit cards are more likely to suffer from fraud through problems such as chargebacks.

Litepay aims to offer a solution to both of these issues, while at the same time allowing its customers to use Litecoin for payments. The company claims that it will charge a flat 1% rate for all transactions and that since the funds are cryptocurrency backed, they will not be subject to chargebacks and fraud the same way that traditional credit cards are.

Get paid in Litecoin with Litepay

While details are not available yet, Litepay also claims that if a customer chooses, they could even have their salary each pay period directly deposited into their Litepay account. From there, it would then presumably be automatically converted into Litecoin. This is still unclear, however.

We also do not yet know if Litepay will offer its own cryptocurrency exchange services such as allowing people to purchase Litecoin directly. We also do not know if Litepay will eventually support other cryptocurrencies or not.

It’s quite likely that they will, based only on the fact that limiting themselves to just one currency could prove to be a lost source of income.

While Litepay is not directly connected to the Litecoin foundation, or Litecoin founder Charlie Lee, they have received at least some indirect support from them both on twitter. Both the Litecoin foundation and Charlie Lee follow the Litepay twitter account.

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Robinhood Announces Fee-Less Crypto Trading, Buzz Grows

Editorial Team — Fri, 26 Jan 2018 17:19:18 +0000

Robinhood is an already popular mobile trading app that lets users trade stocks, with no trading fees, right from the comfort of their smartphone. Now, Robinhood wants in on the Bitcoin Boom.

That’s because on January 25th, Robinhood announced they’d be taking their specialize fee-less dynamic and applying it to cryptocurrency buys and sells on their new digital assets platform, Robinhood crypto.

Wall Street, meet Coin Street, right? People are naturally already abuzz over the move, as it portends the increasing adoption and ease of access to cryptocurrency customers — both veterans and newcomers alike.

Indeed, the wow factor for Robinhood will what other competitors — like Coinbase, Gemini, Blockchain, and Square — can’t offer: a one-stop spot for all investment needs.

As the Robinhood team puts it, “you can now monitor and invest in cryptocurrencies, options, stocks, and ETFs, all on the same platform.” That dynamic is going to be hugely attractive because it works in two powerful ways.

First, being a one-stop investment stop could attract droves of uninitiated, traditional mainstream investor types to Robinhood who want to partake in cryptocurrency investments with the ease of doing it along side stock investments and so forth.

Secondly, Robinhood has a chance to become the app of choice among increasingly affluent crypto investors who, as they watch their digital gains increase, diversify more and more into traditional assets like precious metals, mutual funds, and the like.

Image via Robinhood

So the adoption potential could be huge. It depends on how fast Robinhood can play catch up, and if its trading platform is liked in the community, but the promise is certainly there.

Getting into the nitty gritty, Robinhood is aiming to tackle another factor that cryptocurrency traders hate, which is long deposit waits.

On the forthcoming platform, you’ll be able to start trading instantly when you do bank transfers to your account for less than $1,000 USD.

Unsurprisingly, the trading newcomers will only be offering bitcoin (BTC) and ether (ETH) as trading possibilities, though Robinhood noted “with more coins tradeable later.”

So while the announcement is exciting for the practical trading implications that are at stake, it’s also just another notch in cryptocurrencies’ journey toward mainstream adoption.

Every platform announcement like this brings the cryptoverse one step closer to becoming ubiquitous in everyone’s everyday lives, which is a win for the space in general.

Though Robinhood’s announcement surely isn’t great news for everyone. One would think that entrenched crypto exchange providers like Coinbase and Gemini would have become antsy over the news, in that they can’t offer the same traditional investment experience as Robinhood can.

Maybe that won’t matter at all. But don’t be surprised if exchanges do respond in the coming days to boost their own profiles.

For example, Coinbase could retake the PR initiative by announcing new coin or token listings. That would certainly capture a few news cycles.

For now, Robinhood’s the new kid on the block, and others will be left scrambling on how they can respond appropriately to this new competitor.

The post Robinhood Announces Fee-Less Crypto Trading, Buzz Grows appeared first on Coin Bureau.

Could Alibaba be Launching a Cryptocurrency Mining Giant?

Editorial Team — Wed, 17 Jan 2018 23:48:38 +0000

Alibaba is indeed in a league of its own. The Ecommerce giant has completely reshaped the online marketplace in China and has now set its sights on a more ambitious takeover.

According to a few unconfirmed reports, the company could be gearing up to eventually launch a cryptocurrency mining platform.

In the translations of the disclosure, Alibaba had launched the “P2P Nodes” platform. This was effectively registered in October 2017. This lead to questions of whether Alibaba will incorporate this platform into its online commerce platform in the future.

Tencent News: Alibaba launching virtual currency mining platform "P2P Nodes", registered in Nanjing. May incorporate with e-commerce platform in future. (Unconfirmed)https://t.co/w0ZzgKk773

— cnLedger (@cnLedger) January 16, 2018

What Will “P2P Nodes” Be?

There is a great deal of speculation as to what P2P nodes could be but the most obvious speculation is that of a cloud mining operation. This will mean that Alibaba will be outsourcing the mining power on its platform to other miners.

This is even more surprising given the backdrop of the recent Chinese mining ban which has followed numerous other moves by the Chinese authorities to shut down all forms of cryptocurreny trading.

The CEO of Alibaba has himself also expressed uncertainty about the future of cryptocurrencies. He was quoted as saying that he was “totally confused” by the technology and that the world was not ready for it just yet.

However, like many other commentators around the world, he claimed that he could indeed see a great benefit in blockchain technology in the world.

Blockchain Gold rush

It also seems as if Alibaba may not be the only Chinese conglomerate that has its eyes on some sort of a blockchain solution. CN ledger was able to also locate a registration of a blockchain related trademark for “Ether Lock” or “Ethernet Lock”.

Chinese internet giant Tencent was found to have registered blockchain-related trademark "Ether Lock" https://t.co/fQKn0rHnMq

— cnLedger (@cnLedger) January 16, 2018

Of course, it can be quite hard to read into a company’s intention by the mere registration of names. For example, last year there was great speculation that Amazon was about to enter the space when they registered crypto domain names.

As of this date, Amazon has still not implemented any crypto related business nor has confirmed any intention to. It could just be the companies securing lucrative trade and domain names for a possible launch at some time in the future.

However, the mere thought that a company as large as Alibaba or Tencent could enter the cryptocurrency space is enough to get any blockchain enthusiast excited.

Featured Image via Wikimedia Commons

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Could Monero Ever Challenge Bitcoin? The Case for Privacy Coins

Editorial Team — Tue, 16 Jan 2018 20:37:19 +0000

When Bitcoin was first envisioned and developed by Satoshi Nakamoto, the goal was to create a truly decentralised, anonymous and secure digital currency. The anonymity point was a strong one as people valued privacy.

Due to the fact that Bitcoin addresses were nothing but a string of numbers, people were happy to know that their funds were not attached to their offline identity. They happily used Bitcoin with this belief in place.

However, a great deal has changed since the initial days of Bitcoin’s infancy. The most important of these is the sophistication with which Bitcoin transactions can be tracked, traced and later used tode-anonymize a user.

Privacy is not something that is only valued by those who are breaking the law. It is valued by many law abiding citizens who do not like the notion that Big Brother is watching how they spend their money and how much money they have.

Hence, as Bitcoin becomes much easier to trace, could privacy coins eventually challenge its dominance?

The Blockchain, Double Edged Sword

Blockchain Audits Can Track

One of the greatest innovations of the Bitcoin protocol was the use of a decentralised ledger that would record all of the Bitcoin transactions. This was an immutable record of all transactions that has taken place that could be easily verified.

However, in order to fully verify the transactions using blockchain, it had to be public. It had to be open to anyone to view, analyse and effectively audit. Anybody could see the amount that was sent and the transacting party’s addresses.

As technology has progressed, so has the ability to study and audit the blockchain to track transactions. Indeed, there are a number of companies that are able to complete blockchain audits like Chainalysis.

What is even more disconcerting for the Bitcoin users is that essential participants of the Bitcoin ecosystem are developing strong tracking algorithms. It was recently announced that a large mining company, Bitfury, is tracking transactions using clustering algorithms.

These have been used to great effect to identify those that have been responsible for crimes on the blockchain. The most notable example would be that of Alexander Vinnik, who was accused of the infamous Mt Gox hack. The authorities were able to track the coins that flowed out of the exchange.

While no one can dispute the use case of tracking criminals, one has to question whether such blockchain tech could be abused by malicious actors. For example, if a hacker was able to identify a high valued account and attribute it to a person, they would pose a threat.

They could use sophisticated phishing attacks that would target the individual and extract their private keys. Of course, criminals could also do worse as we have seen cases of users getting kidnapped for their cryptocurrency.

Focus on Privacy

Given all of these concerns that many seem to have with Bitcoin, users are looking for alternative privacy coins that are better able to hide their activity.

As was the case with Bitcoin, those that are usually the most innovative in terms of adoption are those involved in some form of illegal activity. That is the reason that Bitcoin has become too mainstream for criminals.

Yet, much like Bitcoin, as more people become aware of the manner in which user’s activity is being tracked, they are more likely to prefer alternative solutions. This is where other privacy cryptocurrencies with innovative technologies enter the void.

In the scope of privacy conscious coins, there are a number that are constantly hitting the market and touting new and untested protocols. However, there are only really two well established cryptocurrencies that are being used constantly for private transactions.

These are Monero and Zcash.

Advanced Privacy Protocols

RingCTs and ZK-Snarks Hide Info

In the case of Monero and Zcash, both are able to completely hide the information of the users and the transaction details. However, they use completely different protocols and technology in order to achieve these ends.

Monero (XMR) is highly advanced cryptocurrency that was forked in 2014 from Bytecoin. It makes use of something called stealth address which means that after every single transaction is made, a completely random single use address is created.

The transaction will then pass through this single address which will hide the details of the actual receiving address. This will then remove any doubts of being able to link a particular transaction with Monero to an address.

However, in order to completely hide the transactions from public view, the protocol makes use of an advanced cryptographic technique called “Ring Signatures”. These are used to create Ring Confidential Transactions (RingCT).

RingCTs essentially mix the real transaction with a number of other transactions that exist already. This means that the actual transaction is easily obfuscated with a certain plausible deniability. These also became mandatory on all transactions in September of 2017.

This mandatory implementation was the final step in making certain that the entire Monero ecosystem was as private as possible. Everyone, irrespective of preference, had to make use of a RingCT transaction.

This has indeed proved to be quite effective at hiding the privacy of the users. For example, Coinfirm, a Blockchain compliance company, claims that all Monero transactions are “high risk” for money laundering. As a comparison, they only treat 10% of Bitcoin transaction as high risk ones.

This may concern some people about the nature of the coin. Yet, as highlighted by core developer, Ricardo Spagni, in a bloomberg interview, most of the users of the coin use it for legitimate purposes. He said that he would like people to be able to spend the coins such that no one knows what they are buying or how much they have.

Just because users are concerned about privacy does not mean that they have anything to hide. It is a similar argument that is often given by anti-privacy proponents when promoting mass surveillance programs such as that of the NSA’s prism. It is also for this reason that people are looking for alternative methods of private internet access and other anonymising technology.

Zcash vs. Monero

Zcash vs. Monero

The only other cryptocurrency that is being used in larger amounts as a privacy conscious alternative is ZCash (ZEC). This makes use of technology called Zero Knowledge Proofs. In the case of the Zcash protocol, these are called ZK-snarks.

ZK-snarks make all of the transactions private and the transactions are “proofed” with Zero-knowledge. Essentially, the transaction data is not known by any parties and is fully encrypted.

One of the concerns that people have with Zcash though is that 10% of the initial supply of the coin was given to the founders that are a company. This makes the cryptocurrency quite centralised which is the antithesis of crypto in general.

Another concern about Zcash comes down to the Zero-Knowledge proof protocol. Given that all of the data is encrypted and hence hidden, the total supply of coins is also hidden and cannot be properly and effectively verified.

This lack of external verification places a great deal of trust in the centralised parties controlling Zcash. Moreover, the Zcash protocol does not require all mandatory private transactions. That means that those that do send private transactions can be identified via traffic analysis.

Lastly, sending private transactions with Zcash takes a great deal of computer resources to properly encrypt the data. This process requires machine ram in excess of 3mb and takes about 40 seconds to fully encrypt the data for the transaction.

The CEO of Zcash, Zooko Wilcox, stated that the Zcash team will be releasing an upgrade called “Sapling”. They hope that this will reduce the resources required for the transaction as well as institute the mandatory private transactions.

There is also the hope that if Zcash is able to implement an interesting new variant called ZK-starks, then it could become truly private.

Potential Alternatives

There are other alternative privacy coins that are either available right now or are being developed. For example, the Dash cryptocurrency makes use of transaction mixing through their “Darksend” functionality. However, the result is merely the same as if one was to use a Bitcoin tumbler service.

Then there are newer privacy coins that want to try and cut their teeth in the market. One of those is Verge (XVG) that uses the Tor protocol and I2P to send coins. This will allow users to anonymise their IP addresses. However, there were a number of concerns around Verge as the currency suffered pump-and-dump traders.

Another interesting privacy coin that is making some headway is Zclassic. This is essentially just a fork of Zcash that removes the 10% pre-mine that was attributed to the founders.

Altough the Zclassic project has just picked up interest recently, it uses similar technology to that of Zcash and as such cannot be fully trusted when it comes to the available supply or network integrity.

Monero Best Alternative

It therefore seems, in an age of increasing surveillance and tracking that the only cryptocurrency that can be reliably used, 100% safe and completely private is Monero.

Although Zcash does have more advanced encryption when it comes to the Zk-snarks, the underlying reliance on trust of others may be too much to bear. Nothing can be verified as nothing is known. One can only wait for the Zcash updates to roll out before they can fully trust the technology.

Monero is also slowly shaking the “shady” associations that is often bestowed upon it. There is increasingly large adoption of the coin as evidenced by the moves by musicians to accept Monero as a form of payment for their concerts.

Now, no one will know that you ever purchased a ticket to a Dolly Parton concert. That’s the power of a privacy coin!

The post Could Monero Ever Challenge Bitcoin? The Case for Privacy Coins appeared first on Coin Bureau.

Mike Novogratz to Launch Crypto Merchant Bank in $400m Investment

Editorial Team — Wed, 10 Jan 2018 20:36:55 +0000

When it comes to cryptocurrency proponents on Bitcoin, Michael Novogratz is one of the most well-known. As an ex Goldman and hedge fund trader, he has come out in the past and chastised his fellow Wall Streeters as “old”.

He has also put his money where his mouth is and has invested considerable amounts of his own assets into cryptocurrencies. Last year, Mike was attempting to start a large cryptocurrency hedge fund until the market volatility caused him to abandon that idea.

Now, he is embarking on a much larger undertaking. In a press release, Bradmer Pharmaceuticals announced that they will be partnering with Novogrataz’s firm, Galaxy Digital, to launch a full service crypto merchant bank. According to an extract

The Proposed Transaction will establish Galaxy Digital as a full service, digital assets merchant bank, with distinct trading, asset management, principal investment, and advisory business lines

Back With A Vengeance

Mike put his hedge fund on hold last year as he claimed that he did not like the market conditions and thought that a “pause” was in order. Perhaps this may have been a good choice at the time as it allowed him to reassess needs.

Now, he is staking his own personal funds in the project. The capital that is raised from investors such as Novogratz will be used to form this Crypto merchant bank that will be listed on the Toronto TSX Venture Exchange. According to the statement

Galaxy Digital will leverage its deep ties into Bitcoin, Ethereum and other protocol communities to drive returns from four core business segments

The bank will also operate a trading arm as well as a principle investing function as it injects capital into promising ICOs. They will also make use of the knowledge and skills of those on board the project with an advisory and consulting business in First Coin.

Indeed, the way that they have described the business it sounds like the traditional scope of some of the large investment banks that Novogratz used to work at. It will advise, raise capital, trade and facilitate banking.

From a company structure perspective, it will be a reverse take-over where all of the companies will be incorporated under the structure of Galaxy Digital which is based in the Cayman Islands. Mike will be the initial chairman of the board of directors of Bradmer.

Possible Game Changer?

If there is one thing that nearly every cryptocurrency user will know, it is the great disdain that traditional financial institutions display for the revolutionary technology of crypto. From comments by Jamie Dimon at JP Morgan to banks closing down customer accounts, traders have seen it all.

It is therefore quite a reprieve to see that a full service crypto financial institution may soon be opening up its doors. It will allow blockchain start-ups to raise funds, traders to bank and other financial institutions to buy.

It is perhaps quite ironic that an ex investment banker could seriously be disrupting Wall Street.

Featured Image Source

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Two Potential BTC ETF Proposals Withdrawn: Blow for Bitcoin?

Editorial Team — Tue, 09 Jan 2018 18:39:27 +0000

There have been many that were hoping that the recent launch of Bitcoin Futures by the CBOE and the CME may give rise the eventual adoption of a Bitcoin ETF (Exchnage Traded Fund).

Indeed, even before the launch of any Bitcoin futures, there were companies that were applying with the SEC for Bitcoin ETFs. The famous Winkelvoss twins actually presented this to the SEC last year and were unfortunately disappointed by the result.

However, since the launch of the Bitcoin Future, numerous other companies have filed paperwork for eventual ETFs. The hope was that the precedent set by the CBOE and CME could make more of a case of the established nature of Bitcoin.

Unfortunately, according to a report by Reuters, two of these companies had withdrawn their applications based on particular concerns that were emanating from the SEC.

Mass Adoption on Hold

According to disclosures by the company, the SEC has expressed particular concerns about the liquidity and valuation for Bitcoin futures currently. This is not entirely unreasonable as Bitcoin futures only launched less than month ago.

The trusts in question were Rafferty Asset Management LLC and Exchange Traded Concepts LLC. They were planning on launching three Bitcoin funds and had their applications at the SEC.

ETFs are generally considered an easy way for large asset management firms to track the price of an asset. There are ETFs on a wide range of assets and they are seen as we way for ordinary retail investors to get exposure to an asset which is usually quite hard to invest in directly.

For example, there are ETFs on the price of Gold, Oil and even asset indexes. These are developed and maintained by the ETF management company and the asset managers can easily buy stakes in it on some sort of an exchange.

There were many predictions that if the ETF proposals went through that large amounts of Bitcoin would need to be bought by these ETF firms. Hence, the price of Bitcoin was likely to rally as more people tried to buy the coins.

Volatility an Issue

There is no doubt that the concerns of the SEC are warranted. Bitcoin is a really volatile asset and as such are not suitable for many investors. Bitcoin holders are aware of this and hence are more able to accept the volatility levels.

Many had also pointed out that the ETFs in question would not have been ETFs that comprised of physical Bitcoin but those that were made up of Futures on Bitcoin. Moreover, they would be levered and would rise or fall by twice the original move.

The Bitcoin Futures markets are also not mature enough and the SEC is right in claiming that the liquidity is not quite there yet.

Possible in 2018?

Although this may be a short term blow to the aspirations of a Bitcoin ETF, many are of the view that it is only a matter of time. There is wide scale adoption on the go as firms on Wall Street try to get involved in Bitcoin.

There is also another benefit that the Futures are likely to bring to the Bitcoin markets. As derivative instruments, they allow investors to hedge their positions. This is generally viewed as one of the most stabilising forces for volatility.

Hence, as more investors and traders start providing liquidity for Bitcoin Futures and the volatility falls, an ETF before the end of the year becomes that much more likely.

Featured Image via Fotolia

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Virtual Currency Girls in Japan Promoting Cryptocurrencies

Editorial Team — Mon, 08 Jan 2018 00:37:38 +0000

As a sign of how crypto crazy Japan has become, there is a group of teenage girls that are called the “Virtual Currency Girls” which are helping to spread the word of cryptocurrencies.

There are 8 members in this group with each one representing a different cryptocurrency. There is currently a girl for each of the following coins popular in the Japanese market: Bitcoin Cash, Bitcoin, Ethereum, Mona, Ripple, NEO, Cardano and Nem.

The girls are managed by the Japanese Cinderella academy and had previously promoted a separate group that was themed around signs in the Zodiac.

Japanese Idol Girls

Many may think of the notion of teenage girls promoting a cryptocurrency as quite bizarre. However, “Japanese Idols” are actually quite a popular concept in the country. It was originally started in the 1970s but has grown into a massive industry.

The idea is that young girls or boys with little to no experience in entertainment are scouted by the agencies and are then brought on as potential future stars. They are marketed as role models for society and are heralded for their general innocence.

Not only are they used to prompt particular initiatives but they will also perform in plays and TV commercials. Some may move onto other roles in the wider entertainment industry once they get older.

In the case of the virtual currency girls, their goal is to educate the public on the virtues of investing in digital currencies. According to the Cinderella Academy they want to

promote [through] entertainment that virtual currency is not a tool for speculation but a technology that creates a wonderful future

Crypto Crazy Country

All the Coins in the Digital Currency Girls

That Japan would be the first country to combine some local cultural phenomenon with cryptocurrencies is not surprising. At a time when other governments and banks are trying to put pressure on the industry, Japan stands out.

The country is one of the most welcoming countries to cryptocurrency investing, trading and banking. This has also led to an explosion in adoption as millions of Japanese traders have already invested in the markets.

As a sign just of how popular cryptocurrencies have become in Japan, one of largest internet companies, GMO has said that they will offer their employees the option of receiving their salaries in Bitcoin this year.

What is Next For Crypto Girls?

The Virtual Currency Girls are also cautious with their advice. They are concerned about the potential for fraud from ICOs and the risk that people do take investing in such speculative instruments. They wanted their followers to know

[Virtual Currency Girls] is a unit that carefully selects future currencies from a number of virtual currencies and spreads correct knowledge through entertainment

They are, however, putting their money where their mouth is, as fans can purchase tickets or merchandise from the group with a cryptocurrency of their choice.

Images via Cinderella Academy

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How Brazil is Using the Ethereum Blockchain for Popular Petitions

Editorial Team — Sun, 07 Jan 2018 18:18:54 +0000

In a sign of wider adoption by governments, it was reported that Brazil is turning to the power of the Ethereum blockchain to help record votes in the country’s popular referendums.

These referendums are an important part of the Brazilian democracy. In fact, they are even included in within the constitution as a way for the electorate to get their voice heard. If these petitions are able to get 1% of the citizens’ support then they must be heard in the legislature.

However, given how expansive Brazil is and how hard it can sometime be for people to vote in these popular referendums, there is often a situation where a great deal of people are left out from the process.

This is where the power of an immutable blockchain can come in.

Current Petition Pitfalls

The current system of running these popular petitions is considered a logistical nightmare. People are required to collect signatures for the petitions by hand. For a country with over 145 million people with a landmass the size of Brazil, this becomes impossible.

Moreover, given that the petition relies on people physically signing a document, it becomes nearly impossible to verify the authenticity of all of those who have signed it.

Once the petition has gathered the required votes, it still has to get championed by a lawmaker who will hear it. Perhaps this is the reason that so few of these popular petitions have actually being turned into law.

In fact, there have only been 4 laws that have been passed as result of these petitions. The significance of those laws can have a great impact on the political landscape though. This is because they may address issues where the politicians and citizens have differing incentives.

An example of one of the laws that had a great impact was the 2010 clean state law that implemented legislation that prevented politicians that had been convicted of a crime from running for office.

Democracy on The Blockchain

Given that blockchain technology is able to store information in a distributed ledger in an immutable fashion, it has great potential use cases for this potential challenge. More particularly, it verifies that a signature is authentic and attached to a petition.

The technology behind it will rely on an individual’s digital signature to sign the petition. A mobile App is currently being developed that will accept these digital signatures. They also want the app to have an API so that third party developers can use the technology.

The users will register their details on the app and create their unique cryptographic key (digital signature). Using cryptographic techniques, the voter is also able to confirm that they have voted without knowing anything else about those who voted.

The votes are counted as an Ethereum transaction and are added to the blockchain. Through the use of Ethereum smart contract technology, these votes are then tallied so that the outcome to the petition can be ascertained.

Moreover, given that the blockchain is completely decentralised and the contracts are coded into the public ledger, the system is trustless. There is no reliance on a politician to count them or take them. They are open for public view.

According to Everton Fraga who is one of those working on the project:

It would be a celebration of democracy. With this project, we are doing what the constitution says, but in practice, it hasn’t [yet] happened.

Potential Globally

What this shows is that if a country with such a diverse and sometimes chaotic political climate can adopt a decentralised blockchain solution then there are many other countries that can follow suit. Moreover, there are a number of other applications beyond voting and governments can use blockchain to improve public services.

Hence, governments don’t have to lament the lack of centralised control that comes with cryptocurrencies and the blockchain. This demonstrates further how decentralised systems and cryptography can help instil a feeling of trust in the institution.

Featured Image via Fotolia

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Using Bitcoin to Buy Products on Amazon with Purse.io

Editorial Team — Tue, 02 Jan 2018 22:01:41 +0000

Many Bitcoin users know that one of the holy-grails for Bitcoin adoption is the integration of Bitcoin payments into Amazon.

Whenever there is a mere rumour of an Amazon Bitcoin integration, the markets rally. Sometimes, Bitcoin users try to interpret minor actions like Amazon buying domain names as evidence of eventual integration.

However, for those users that really wanted to purchase goods on Amazon with Bitcoin, there is an interesting alternative that is often overlooked.

This is Purse.io and they offer bitcoin users an option to buy through the Amazon gift card holders.

What is Purse.io

Purse.io is an online marketplace that launched their business in 2016. The Bitcoin based marketplace wanted to allow vendors to easily connect with a wide range of buyers.

The company also received backing from some of the largest names in Bitcoin including the Digital Currency Group, Roger Ver and Bobby Lee.

There are no restrictions as to what can go on sale on Purse and as such allows for a number of different items to be listed. Purse also makes sure to carefully curate all the listings.

Many who are familiar with the Etsy arts / crafts marketplace can easily relate with the current vendor market on Purse. Purse will charge the vendors a 1% fee for all the sales.

Sale curation is an important aspect of the Purse’s operation as it can avoid any situations where users are attempting to sell questionable goods.

The Amazon Arbitrage

It was not too long before users realised that they could indirectly buy goods on Amazon through the use of Amazon users and their gift cards.

After noticing the demand for these types of exchanges, Purse decided to offer a full escrow service and discount filtering functionality to facilitate the transactions.

Purse makes use of user’s Amazon public wish lists in order to match your desired product up with someone who has the gift cards and is willing to buy.

For example, assume that you would like to purchase something on Amazon. You would place these goods in your Amazon “wishlist”. Then, you would save this wishlist as a public one and share the URL on the Purse platform.

On the Purse website, select whether you would like to buy the goods at a discount and how much of a discount you were happy with.

Once complete, Purse will try and match you up with an Amazon Earner who has gift cards balances and was willing to order the goods for you in exchange for Bitcoin.

In order to make sure that the transaction is completed effortlessly Purse will place the Bitcoins in an Escrow. Once you have confirmed receipt of the goods, they will release the Bitcoin to the seller.

Altcoin Options Soon?

With Bitcoin transaction fees at current levels many may also be wondering if Purse will be offering support in other cryptocurrencies eventually. For example, Purse recently ran a poll on their twitter as to whether they should include it.

Which coin should we add in 2018?

— Purse (@PurseIO) December 31, 2017

Yet, there were rumours that they may have already begun the move to Bitcoin Cash (BCH). A twitter user called Ben Verret disclosed an archive of the Purse code that includes “BCH” or the Bitcoin cash ticker.

PurseIO Leak: They will support BCH. https://t.co/t3GthOdtS2 pic.twitter.com/q7UuANDUOD

— Ben Verret (@verretor) December 31, 2017

Some in the Bitcoin community took issue with the inclusion of Bitcoin Cash and as such, Purse denied the rumours of the potential integration.

Amazon Coin Dilemma

The ongoing scaling and fees debate has led many to wonder if Amazon will even consider supporting Bitcoin at all. Unless the transactions are over $1,000 the fees don’t make it entirely feasible.

Whether Amazon decides to integrate another cryptocurrency or chooses to wait for the lightning network to be rolled out, they cannot ignore the pent up demand for crypto payments.

What is for sure is that the “Amazon-Bitcoin” speculation will continue well into 2018.

Featured Image via Purse.io

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South Koreans Are Going Cryptocurrency Crazy

Editorial Team — Thu, 28 Dec 2017 03:22:56 +0000

Much has been discussed about how cryptocurrency mania has taken over the mainstream population. There are stories of wide ranges of people suddenly investing in the markets.

However, there is one country where this is particular substantial, South Korea.

This is evident from a recent survey by an online Jobs portal on a sample of 941 salaried employees in South Korea. It asked whether the respondents had invested in any cryptocurrencies.

Surprising Results

What they found was that at least 31% of the respondents said that they had invested some money in the cryptocurrency markets. The average amount invested in these markets was about 5.66m Korean Won ($5,200).

Of those who had invested, 44.1% of them had invested less than 1m Won. There were another 18.3% who had invested up to 2 million and a further 13% who had invested more than 10 million.

Perhaps slightly more troubling was the reasons given by the repondents for the investments.

At least 54.2% of them had claimed that this was because they wanted to make a lot of money in a short period of time.

One cannot blame the reasons given by the respondents though. When asked whether the investments had made any money, about 80% claimed that this was indeed the case.

Of those who made money, there were about 19.4% who claimed that the returns that they were able to acheive was over 100%.

Crypto Mania

That cryptocurrencies are so popular in South Korea is no surprise. The price of Bitcoin is usually trading at a significant premium on South Korean exchanges as compared to other Western Markets.

For example, currently the price of Bitcoin on BitHump is about $19,377 compared to the price on Bitfinex which is $15,315. This is over a 26% premium.

Price Difference on Coinmarketcap

Local traders in South Korea have no qualms about paying this premium for the coins. In fact, it is often called the “kimchee” premium. Kimchee is a popular dish in South Korea.

This premium actually increased to record levels in the recent Bitcoin sell off. This was mainly because although traders in the West were selling coins, those in South Korea were not. The price remained relatively stable.

The Government Takes Note

Of course, the government has been taking note of the amount of people who have invested in the cryptocurrency markets.

They are becoming increasinly worried about the affect that a crash in the cryptocurrency markets may have on the savings of people who have invested. People from simple students to pensioners have been buying coins.

This is what prompted the South Korean government’s ICO ban a few months ago. They were following in the footsteps of China in trying to rein in the unregulated financing.

There have also been rumours that the government may consider outlawing certain activities that were linked to digital currencies. The details are still uncertain but the intention seems to be there.

Irrespective of the rules that the government will put in place, investors in the country should approach cryptocurrencies with the same caution that they do other investments.

The markets are really volatile and a large fall in the price of cryptocurrencies is possible and according to some, probable.

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Bitcoin Cash Adoption Increases on DarkNet as Pirate Bay takes Swipe

Editorial Team — Wed, 27 Dec 2017 22:08:15 +0000

When it comes adoption of cryptocurrencies globally, the enterprises that operate on the DarkNet have been some of the earliest users.

Ever since the days when the Silk Road was gaining notoriety, these sites and operators have been using cryptocurrencies as a way to conduct business in an anonymous fashion.

Since law enforcement agencies were able to shut down some of the most prominent dark net markets, the Dream DNM was more than willing to step into the breach and take their place.

Now, Dream has announced that they will be offering funding in Bitcoin Cash as well. According to a statement by one of the operators:

BCH now ‘useable’ on Dream Marketplace… Note I say it is ‘useable’ and not that integration is fully complete but considering the relative urgency here..

BTC Fees Possible Cause

This will no doubt be great news for a number of users that have been complaining about all of the uncomfirmed transactions that are getting stuck on the Bitcoin network.

Similarly, Bitcoin fees are now at really high levels with reports of suggested transaction fees per transaction approaching $60 per transaction.

This often defeats the purpose of the smaller purchases on the market as the transaction fee is likely to eclipse the cost of the articles that are being bought.

These transaction fees have also meant that users will find traditional mixing services too expensive. This means that they are not attempting to hide their transactions which could expose them to the authorities.

Other solutions for mixing Bitcoin transactions are being developed to overcome these issues. One of these is the ZeroLink mixer that is being tested currently.

For the BCH dark net users, there are some mixing services that have cropped up that attempt to obfuscate Bitcoin cash transactions. Cashshuffle has just being launched for BCH users.

“BCash. LOL”

Another well known illegal website that waded into the Bitcoin Cash vs. Bitcoin core debate is the Pirate Bay.

This is a large torrent Peer-2-Peer file sharing site that has been infringing on Intellectual property for years. Recently, they have tried to monetise their traffic recently by using the Coinhive broswer miner.

This, however, led many users to complain and as such the site decided to be more direct in their request for donations. In this case, they wanted to accept crypto donations.

The site gave the addresses of the their various cryptocurrency wallets. They listed Bitcoin, Monero (XMR) and Litecoin. However, they decided to take a swipe at the Bitcoin Cash community.

It is well known in the cryptocurrency community that one of the most ardent supporters of Bitcoin Cash is Roger Ver. Ver recently had a live stream that got heated when the other participant called Bitcoin cash “Bcash”.

In true trolling fashion, Pirate Bay decided to do the same and labelled their BCH wallet as “BCash. LOL”.

While this did amuse a great deal of Bitcoin supporters and cause many “Lols” it may have also alienated a number of others who would have had no issue donating Bitcoin Cash originally.

It doesn’t seem very rational for somebody who is asking for donations to completely exclude a group of users merely because of their preference of coin.

Moreover, apart from the jab at Bitcoin Cash, the site left out the second most valuable cryptocurrency by market capitalization, Ethereum. This could be down to politics or other more technical reasons.

BCH Merchant Acceptance

While the Pirate Bay may not like the idea of Bitcoin Cash, there are many online merchants who are now actively integrating BCH into their payment solutions.

For example, on the 15th of December, the largest Bitcoin payment processor in the world, Bitpay said that they will be integrating Bitcoin Cash payments in their merchant services technology.

This could be a well needed boost for Bitcoin cash adoption as it will mean that those merchants have a plug and play solution to accepting BCH payments from their customers.

Whether they be Dark Net markets or simple online stores, no one can deny the increasing adoption of Bitcoin cash.

The hope is that the Bitcoin community can effectively implement the numerous off chain scaling solutions such as the lightning network. Lower Bitcoin transaction fees will no doubt be welcomed by many.

Featured Image via Fotolia

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Goldman to Launch Bitcoin Trading Desk

Editorial Team — Fri, 22 Dec 2017 01:31:23 +0000

Perhaps nothing quite personifies the success that Bitcoin has undergone as the acceptance by Goldman Sachs of the need for a trading desk.

According to a report by Bloomberg, Goldman Sachs is planning on launching a desk that will allow them to make a market for their clients in digital currencies such as Bitcoin.

This was given to Bloomberg by three unnamed sources from within the company. The loose target for the release of the desk is for the end of 2Q in 2018.

Potential Difficulties

There are many risks that exist in trading something as volatile as digital currencies, yet the sources said that the biggest fear they had was how to effectively store the “inventory”.

There have been a number of high profile hacks in recent years of Bitcoin exchanges. For example there was the infamous case of Mt. Gox or just recently, the hack of YouBit exchange.

By storing such large amounts of inventory, Goldman may be opening themselves up to attacks. Hence, Goldman will have to invest quite a bit of money to make sure that they have the best security protocols in place.

Big Step

The reason that this is such important news is that Goldman will the first Bulge bracket investment bank to offer their clients liquidity in digital currencies.

It is also quite significant for just a few months ago, the CEO of one of their rivals, Jamie Dimon at JP Morgan, was calling it a “fraud”.

Goldman can clearly see the writing on the wall for large scale adoption of Bitcoin. Unlike their rival in Jamie Dimon, they are not hiding their head in the sand and are moving with the times.

Few Specifics so Far

The sources for the story were not able to give much more information as to the exact composition and location of the team.

However, there is strong reason to believe that Goldman has already begun the recruitment drive for traders. It is also likely that the team will be based out of the head office in New York.

There is also some speculation that the team will most likely be housed in the Fixed Income and currencies division of the bank

According to the report, the Managing Director of the bank, Darren Cohen, is on the lookout for more ways in which the bank can effectively move into the digital cryptocurrency space.

When asked by reporters, a spokesman for the bank did not decline the rumours and stated that the bank was “exploring how best to serve” clients with interest in digital currencies.

Mixed Messages

Although this report confirms that Goldman has finally made the step, there was a different overture that was coming from the CEO.

Although receptive to the idea, Lloyd Blankfein, said in a Bloomberg TV interview a few months ago that Bitcoin was still too volatile to consider.

He claimed that it was still a “developing technology” that needed to advance before they would implement client solutions. He said that if

…it gets more established, and it trades more like a store of value, and it doesn’t move up and down 20 percent, and there is liquidity to it — we’ll get to it

Now that the bank has confirmed that they will be launching a trading desk, perhaps Lloyd Blankfein thinks the technology it properly “developed”.

Featured Image via Fotolia

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Bitcoin Philanthropy: Pineapple Fund to Give $86m to Charity

Editorial Team — Thu, 21 Dec 2017 20:32:19 +0000

Cryptocurency traders are often thought of as return driven investors with all of their “To the Moon” and “Lambo” talk.

One would be forgiven for thinking that they were purely interested in self-enrichment.

However, the Bitcoin user base is indeed a large and diversified group and there are some really substantial philanthropists in the ecosystem.

A well-known example of this would be a cryptocurrency enthusiast by the name of “Pine”. He / she was the person behind the well-known “Pineapple fund”.

The pineapple fund has 5,057 BTC in it and has given about $8m of it away so far.

A New Type of Altruism

In the case of Pine, apparently he began mining the coins on an old PC that he had at home. This was back in a time when Bitcoin was still trading for only a few dollars.

Pine had kept the coins in his wallet all the way up as Bitcoin has rallied and broken record after record.

What makes the donation from Pine that much more genuine is that he / she is a semi anonymous individual. Unlike many other people who donate to charity, these actions are not meant to garner publicity.

In the Reddit post announcing his decision, he said that he will donate most of his Bitcoins because of how it has already impacted his life.

I have far more money than I can ever spend. My aims, goals, and motivations in life have nothing to do with having XX million or being the mega rich. So I’m doing something else: donating the majority of my bitcoins to charitable causes

One can only assume that because Pine is an early miner of Bitcoin that he must truly have made enough money to keep him satisfied personally for a long period of time. Sometimes the gift of giving is better.

Fund Mandate

According to Pine, the fund will be focusing the donations on medical research such as mental health. It will also fund some environmental initiatives as well as the fight against sexual abuse. These were the initiatives that were important for Pine.

This was why Pine took to Reddit. He wanted to get ideas of the most deserving charities in these fields. Those charities that managed to make the shortlist included SENS Research Foundation, Multidisciplinary Association for Psychedelic Studies (MAPS).

This is something that was confirmed by the MAPS charity itself. They will use the BTC to fund trials that will determine whether drugs similar to ecstasy can be used to treat PTSD.

Open the Gates

Just when one began to think that this generosity was restricted to only one individual, MAPS received a further 51.5 BTC from another anonymous donor.

This was the most in cryptocurrency donations that MAPS has received from all the cryptocurrency donations since 2013.

This is indeed an exciting time as it shows the use case for charitable giving with cryptocurrency. Instead of the usual process of sending charities some money, donors can merely send some funds over the crypto of their choice.

It also means that charities can adapt the demographic of their current donor class. It allows more tech savvy millennials to fund causes that they approve of in a way they are familiar with.

As Bitcoin and other cryptocurrencies continue to break records, one can only wonder how many undercover millionaire donors exist in all those high value addresses.

Featured Image via Fotolia

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Japanese Tel-Co Giant to Offer Bitcoin Salaries Next Year

Editorial Team — Mon, 18 Dec 2017 15:34:34 +0000

GMO, a Japanese telecommunications company that provides Internet services for all kinds of customers, has announced that they will start offering partial salaries to be paid to its employees in bitcoin. The company made the announcement on the 12th of December this year.

Bitcoins growing adoption in Japan

According to articles in CNBC and Business Insider, among others, a large portion of bitcoin investors are from Japan. Specifically, a recent report from Deutsche bank sites that it is Japanese men in their 30s and 40s that make up to 40 percent of bitcoin trading volumes.

Other cryptocurrencies such as Litecoin and Bitcoin Cash have also seen rapid adoption across the country, not only for investments but also as a transactional currency for purchases at stores and online. Bitcoin still appears to be the king in Japan, however.

Partial salaries in bitcoin

In the press release that GMO released, they stated that employees may choose to receive between ¥10,000 and ¥100,000 of their salary in bitcoin using the exchange rate at the GMO coin Exchange. In US dollars, that’s about $90-$900.

So, why are they doing this? The press release goes on to state that the company wants to contribute to the growth of cryptocurrencies by promoting various initiatives within the space. Specifically, they feel that owning bitcoin will be one of the largest sources of positive movement that they can contribute directly.

To help facilitate these kinds of payments, a number of payroll service companies have popped up and are offering to help with crypto salary payments. Some of them include BitWage, BitPay, and Wagepoint.

In a Delloite piece that appeared in the Wall Street Journal, author Eric Piscini noted that using bitcoin and other cryptocurrencies as a method of paying staff could open doors for better freelance and project-based hiring over the Internet.

While this has been going on for some time, the GMO announcement is significantly different because it applies to locally hired full-time employees. It is also only offered as an option and not a requirement. GMO employees could very well opt to not get involved in bitcoin at all.

Wider impact on the economy of large

What we have seen over the past few decades, is that a large number of trends that appear in Japanese society have a tendency of migrating to other countries. If more large companies like GMO begin to offer bitcoin salaries, it is highly possible that this could encourage other big players in different industries to follow suit.

Large retailers especially could take advantage of this. For example, if a large retailer like Amazon.com were to begin accepting bitcoin as payment, they could then choose to turn around and pay employees in whole or in part in bitcoin.

Doing so could lead to massive savings for the company. This could be doubly so if bitcoin values are continuously on the upward trend. The company could end up needing to pay out less money for salaries overall.

Whether this will happen or not it’s still up for debate though. Often times these trends from Japan can take 5 to 10 years to form roots in other culturally distinct areas.

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Bitcoin ETFs: The Next Traditional Bitcoin-Based Investment?

Editorial Team — Thu, 14 Dec 2017 17:23:02 +0000

Bitcoin ETFs … what’s the deal?

The cryptocurrency ecosystem has been absolutely abuzz with chatter over Bitcoin futures, as powerhouse market leaders like Nasdaq and the Chicago Mercantile Exchange launch these unprecedented speculative assets.

The institutions are coming to crypto – Image via CNN

One thing lost in all the present excitement? The status of currently pending Bitcoin ETFs, or “exchange traded funds.” These ETFs could be the next Bitcoin-based financial instrument to send institutional investors into a frenzy.

And while there have been multiple applications for these ETFs in recent months, none have materialized … yet.

Let’s give you a quick update on the status of these funds.

First off, what are ETFs

You’ve just barely started to wrap your head around what futures are. So how about exchange traded funds?

Per Investopedia, an ETF is a “marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.” Accordingly, a Bitcoin ETF would track BTC as a commodity similar to gold or oil. This fund could be held or traded like a regular stock holding.

To this end, these funds could help further legitimize Bitcoin toward being a mainstream, mature asset.

ETF applications declined earlier in the year

It’s been a string of set backs in recent weeks for Bitcoin ETFs.

Back in October, two firms who had applied to launch these kinds of funds — Intercontinental Exchange and Van Eck Associates — withdrew their ETF applications after the United States’ Securities and Exchange Commission (SEC) determined these funds shouldn’t go live until after Bitcoin futures officially materialized.

Consequently, other applications, like two from Proshares Capital Management and the Winklevoss’ twins ETF COIN, still haven’t been approved by the Commission yet either.

But more applications keep coming

It’s clear, then, that the SEC is taking a wait-and-see approach. But they presumably won’t have to wait much longer since once of their main original concerns was that ETFs shouldn’t be launched until after Bitcoin futures have.

The situation is clearly shifting, of course, because the CBOE Group just launched the first Bitcoin futures only days ago now. To that end, CBOE President Chris Concannon remarked during a recent conference call that the next step is clear:

“With regulated futures of a certain asset class like a bitcoin, you do have an opportunity to introduce ETFs and over time we do envision ETFs coming to market.”

The SEC now has something to go off of with the CBOE’s Bitcoin futures, and with Nasdaq and CME Group doing the same over the coming days, the Commission will undoubtedly render some kind of official guidelines.

There’s no reason to think the agency is permanently against the idea of Bitcoin ETFs. They’re just wanting the market situation to develop further, which it’s absolutely doing right now.

That means we could be seeing such ETFs sooner rather than later now. So as ETF applications pile up on the SEC’s desks, it wouldn’t be unreasonable to project these funds hitting marketplaces at some point throughout 2018.

In the very least, the SEC seems open-minded about the entire cryptocurrency ecosystem. Chances seem strong that exchange-traded funds are all but imminent.

Featured Image via Fotolia

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Could Ebay be Considering Crypto?

Editorial Team — Wed, 13 Dec 2017 21:44:19 +0000

Ebay is the biggest online auction place in the world. They have reach in numerous different markets and are usually one of the companies that are most interested in new technology.

It was for this reason that the online giant purchased PayPal a number of years ago. Therefore, as the owner of one of the largest payment processors, is it true that Ebay is considering cryptocurrency payments?

This may be the case according to senior vice president, Scott Cutler.

“Considering” it

Cutler had the interview with Yahoo finance by stating that Ebay is

seriously considering it as these cryptocurrencies become more of a mainstream payment instrument, but we’re not quite there yet

He also mentioned that he is aware of the amount of cryptocurrency mining hardware that makes the round on the auction site. What this shows is that the auction site would already have a great deal of interest in cryptocurrency payments.

Benefits of Crypto Payments

There are currently not that many online retailers that accept cryptocurrency payments. This is probably as a result of certain stigmas that are invariably attached to Bitcoin.

However, for those that have accepted the coin, business has been quite strong. For example, overstock which is a large internet retailer has had a massive rally in its share price on the back of its acceptance of cryptocurrencies.

Although there is nothing official from Ebay on the possible acceptance of cryptocurrencies, the mere fact that someone senior in Ebay has shown an interest to the introduction is positive.

As online retail is a hyper competitive space, there is no wonder that a number of these companies are actively considering the integration of cryptocurrency payments. For example, companies such as Amazon have even registered cryptocurrency related domain names.

Still a Way to Go

Although demand for cryptocurrency as an investment is soaring, there is still much more growth for the crypto payments online. Part of this is also down to the increasing fees and slow transaction times on the main cryptocurrency, Bitcoin.

This has not stopped some companies from testing cryptocurrency payments. For example, last week the mobile payments solution, Square, gave its users the ability to buy and hold cryptocurrencies. This was released with not much fanfare to only a limited number of users though.

The hope is that in the New Year as the Bitcoin scaling solutions play out and more users start investing in cryptocurrencies, large online retailers may follow and jump all in.

Featured Image via Fotolia

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Excitement Stirs As First Bitcoin Futures Go Live In Chicago

Editorial Team — Mon, 11 Dec 2017 15:12:06 +0000

The biggest buzzword in the cryptocurrency space right now is “Bitcoin futures.”

In general, futures are financial instruments that let investors “bet” on the performance of assets in traditional stock market environments.

The big development, then, is that the very first Bitcoin futures contracts just went live on Chicago CBOE futures exchange. This is a milestone for all cryptocurrencies, to be sure, and it pushes Bitcoin that much closer to being a mainstream asset class.

So how did the first day of BTC futures trading go? We’ve got the scoop.

Bitcoin excitement causes CBOE website crash

As Bitcoin futures first began to be traded on Sunday evening, it didn’t take long for the exchange to get a taste of the hyper-interest that’s at play in the crypto space.

That’s because within minutes of the launch, the CBOE website crashed for many due to an overload of traffic.

Trading wasn’t disrupted by the outage, and support staff were able to get the site back up and running quickly. But the episode is reminiscent of Coinbase’s recent outage woes from hyper-growth. The CBOE Group, Inc. can expect more where that came from in the days ahead.

Contracts specs at present

The way futures are set up are over certain periods of time. So the current Bitcoin futures contracts being offered on the CBOE futures exchange expire in January 2018.

These contracts opened at $15,000 USD level. In the ensuing hours, they slid up over 25 percent to upwards of $17,500.

And while these contracts still have a long way to go before becoming heavyweights, many pundits were still surprised over how popular they were after launching on Sunday. Nearly 3,000 BTC futures contracts were transacted after trading began.

The CBOE exchange in action – Image via oren.ru

And it’s also worth noting that the CBOE exchange instituted trading halts when price volatility was too extreme. Indeed, trading was paused twice: first after a 10 percent price gain and then after a 20 percent price gain.

Overall? Went as well as it could’ve

Many users in the space were nervous in the build up to Bitcoin futures. Some wondered if these futures might actually work to suppress, not foster, the bitcoin price.

The good news for now, then, is that everything’s gone pretty much according to plan. Bitcoin and the stock markets are doing just fine. The sky hasn’t fallen yet and these futures seem pretty promising going forward.

Veterans of futures trading agreed. Per Craig Erlam, a market analyst at London’s Oanda firm:

“It was smooth, and bitcoin traders don’t seem to be put off by futures. There was a fear that short selling would have an adverse impact on price, but we haven’t seen that yet.”

Erlam’s colleague at Oanda, Stephen Innes, said that there’s room for improvement yet:

“We’re in the early stages here, and there’s not enough professional liquidity from the big market makers who can provide depth and hold in the movements. It’s going to be a learning curve.”

Now, the interesting thing to keep an eye on is how the situation develops as exchanges like the Nasdaq and CME Group, Inc. continue to launch their own Bitcoin futures products in the coming weeks.

Featured Image via Fotolia

The post Excitement Stirs As First Bitcoin Futures Go Live In Chicago appeared first on Coin Bureau.

Andreas Antonopoulos on the Impact of CME Futures

Editorial Team — Sun, 10 Dec 2017 23:29:57 +0000

There are many uncertainties when it comes to the impact that Futures will have on the price of Bitcoin.

There are a range of opinions that people have. Some are of the view that it could give large institutional investors the chance to short the price extensively which could cause it to crash.

There are others who think that the impact will be very positive as demand from institutional money for Bitcon will soar given the legitimacy of the CME name.

However, one of the most well-known names in the sector, Andreas Antonopoulos came forward with his own professional opinion of the likely impact.

CME Oversight Position

When asked the question by one of the audience members, Andreas mentioned that he had previously taken a position on the oversight board of the Chicago Mercantile Exchange (CME). The CME is one of the exchanges that will be listing the Bitcoin futures on the 18th of December.

Andreas said that the role he would have is an advisor over the exchanges that will be used to pull the pricing data. This was indeed quite an important as having the correct reference point of the price is vital for the contract.

In this case, Andreas said that there would need to be two Bitcoin reference rates in order to properly construct the contracts. One would be the Bitcoin Real Time Index which is the spot price that is updated every 30 seconds.

The other is the something called the “Point Price” or moving average price. This is measured every day at 2pm CT. This point price is that price of Bitcoin at the end of the day.

Both of these prices are used in the legal framework of the futures contracts. They will also be used to address any disputes that there may be between the two parties.

Technicalities of CME Futures

Andreas went on to explain the criteria that the CME would use in order to determine whether an exchange is eligible for pricing.

The exchange needs to publish the data constantly in order for the CME to trust the pricing. Secondly, it also has to have some trading fees in place. If there are none, then the markets are susceptible to automated trading that can inflate levels.

The Futures contracts are also cash settled. This means that there will be no physical delivery of any Bitcoin. Hence, there will need to be a corresponding long position for every short position that is on the exchange. Both the long / short positions have to be capitalized in USD against the CME to ensure proper collateralization.

There will also be “circuit breakers” or hardcoded stops in the exchange’s system that will halt the trading if the price of Bitcoin moves by more than 7% during the day.

We have previously covered the technicalities of the Bitcoin CME contracts and how the circuit breakers will work.

Who will Participate

Andreas also ventured some guesses as to who would be using the contracts to short Bitcoin. Given the risky nature of Bitcoin, it is unlikely that financial institutions such as hedge funds will be shorting them

However, mining businesses may be active participants. This would be done in order to hedge the risk that they face from the Bitcoin price / cash flow perspective.

The cashflow problems for the miner is the electricity costs that they may have to pay for the upcoming quarter. If the price of Bitcoin is greatly below expectations, this could throw the miner’s financial calculations out of whack.

In his example, Andreas predicted that Miner’s were likely to take out about 10% of their position in Bitcoin. If the price of Bitcoin then rallied, they could benefit from the price increase on their physical coins even though they lost in their futures position.

There may also be other options for miners through the use of Bitcoin options. At companies such as LedgerX, these miners could then benefit from the all the upside and take a full hedge on their entire Bitcoin exposure.

Most Likely Impact

The most likely impact from the introduction of the futures is that there will be a massive increase in the volume of Bitcoin that is traded.

Apart from the recognition that comes from having a Bitcoin future on the CME, it will allow large institutional investors to effectively hedge positions from volatility.

The end result could be a large decrease in the volatility and hence more adoption which will feed a positive feedback loop.

Featured Image via Antonopoulos.com

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Privacy Coin Monero Surges After Teaming Up With A-List Musicians

Editorial Team — Wed, 06 Dec 2017 13:56:02 +0000

At press time, premier privacy coin Monero (XMR) is hovering around new all-time price highs at $298.42 USD. The crypto’s now up an astonishing 38 percent from just 24 hours ago.

Monero is making a major run – Image via CoinMarketCap.

Those of us who aren’t plugged into the Monero community wondered what was going on. So what is the deal?

Turns out there was a major announcement that made this acute price surge catalyze. And that announcement had to do with some of America’s most popular musical acts. Is mainstream adoption finally here … for XMR of all coins?

Forbes breaks the XMR adoption scoop

In the wee morning hours of December 5th, 2017, Forbes reporter Laura Shin dropped a bombshell: 50 major American recording artists would be accepting Monero as a method of payment through their respective online shops.

The collaboration initiative is dubbed Project Coral Reef by the Monero team.

The artists involved will now be able to accept XMR payments in exchange for goods through their online shops. Some of the participating artists will also be allowed to offer 15 percent discounts to customers using XMR for payments.

Standout acts participating in the project include:

Alice Cooper
Anthrax
The B52s
Bush
Dixie Chicks
Dolly Parton
Fall Out Boy
Five Finger Death Punch
G-Eazy
Kaskade
Lamb of God
Lana Del Ray
Mariah Carey
Marilyn Manson
Mastodon
Morrisey
Motorhead
Panic! at the Disco
Roger Waters
Sia
Slayer
Weezer

XMR Core team makes Reddit announcement

In the hours after the Forbes article appeared, redditor and Monero Core development team member u/fluffyponyza explained the campaign and what went into it:

Our original goal was to get like 10 high profile artist stores to accept Monero, and I am pleased to announce today we have over 50 online stores accepting XMR payments. Many of these stores are also offering an exclusive additional 15% discount on orders paid with Monero. These stores in aggregate get millions and millions of impressions and every store customer will see Monero during checkout even if they end up paying with fiat currency.”

But why music specifically? Why not another field, say, closer to the tech industry? The dev had a great answer:

There are several reasons we went for musicians instead of trying to canvas something like Newegg. The first is that a lot of those stores already accept Bitcoin, which means you can already use Monero on them via xmr.to and similar. The second reason is that the Newegg target audience largely already know about Monero, or have at least heard of it […] Music fans, on the other hand, are rabid. If they can save 15% on a purchase, or get something exclusive, but have to jump through hoops to do so they absolutely will.”

Flashy move should help clean up Monero’s image

In being the most private and fungible cryptocurrency, Monero’s gotten a reputation for being destined only for illicit activities. This latest campaign from the XMR team shows this reputation isn’t going to be well-founded going forward.

It’s a surprising campaign, to be sure. Welcomed, but surprising. It seem as if other coins would’ve been in better positions to secure such partnerships, at least in the present, yet it’s Monero who’s come away with the deals that matter.

If XMR can continue to see mainstream adoption, it will reach even further incredible success on the basis of being the most fungible, cash-like cryptocurrency currently available.

Featured Image via Fotolia

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Leapfrogging CME, CBOE Announces Bitcoin Futures Release Date

Editorial Team — Tue, 05 Dec 2017 13:41:35 +0000

Save the date in your trading calendars, Bitcoin futures are coming on the 10th of December at the CBOE.

It is indeed quite a race amongst the exchanges as they try to launch their respective investment products. This will come before the expected launch in December of the CME futures.

Apart from the CBOE and the CME, Nasdaq as well as Cantor Fitzgerald also want a piece of the Bitcoin derivatives pie next year.

Ready, Set, Go!

The CBOE made the announcement via a press release yesterday. The trading will commence at 5pm CT on Sunday, the 10th of December.

As an added incentive, the exchange has stated that there will be no fees on the transactions throughout December (applies to all CFE transactions). The futures will trade under the XBT ticker.

The market has already known that the CBOE would be launching futures but this had not being given a timeline. Now that they have officially released one, there is no doubt traders will be getting excited.

Speaking about the significance of this announcement, CBOE chairman Ed Tilly stated the following.

Given the unprecedented interest in Bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure. We are committed to encouraging fairness and liquidity in the Bitcoin market.

Future Fever

The CBOE has made an agreement with Gemini exchange whereby they have stated that the XBT futures will be settled on a cash basis based on the latest USD auction price at Gemini.

This wil also have a strong impact on the mass adoption of Bitcoin. It will allow numerous asset managers and institutional investors to hedge long positions in the asset.

There are also numerous economists who claim that the benefits of a regulated derivative product could temper the volatility and in return feed more adoption.

This positive feedback loop between decreased volatility and increased adoption is the reason many investors are predicting Bitcoin to hit at least $40k by the end of next year.

Featured Image Source

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Venezuela to Create State Cryptocurrency – Will It Work?

Editorial Team — Mon, 04 Dec 2017 12:04:58 +0000

Venezuelan President Nicholas Maduro has announced that his country will begin the creation of a new cryptocurrency, the Petro. This is in response to the hyperinflation and other financial woes that the country has been suffering from in recent months.

The new cryptocurrency is expected to be backed up by oil reserves, gold, and diamonds. What does this mean for Venezuela, and for cryptocurrency in general?

Predictions coming true?

Analysts have been predicting for some time that one of the major signals for cryptocurrency’s future adoption is that a small or suffering country would adopt either an established cryptocurrency, or make its own. Several other press outlets have been covering the fact that Bitcoin has become a major currency in Venezuela during the crisis.

This is partly because it is difficult to acquire large enough amount of foreign paper currency like the US dollar. Some have also speculated that Venezuela is at least partly responsible for the recent increase in Bitcoin prices.

Hurdles to a cryptocurrency future for Venezuela

Already some in the Venezuelan government that stand against Nicolas Maduro have stated that this dream of his will not come true and that it is unrealistic. Let’s put politics aside and consider some of the realities for establishing a national cryptocurrency for widespread use in a country like Venezuela.

The first issue is the actual creation of the currency itself. Creating a cryptocurrency is now easier than it ever has been in the past. However, it still requires some technical know-how in order to ensure that you are creating something that is safe and scalable. The speech given by President Maduro does not outline any of the technical details behind the Petro.

For example, it does not clarify if it’s running on its own blockchain, if it is an ERC-20 token, or if it is a private blockchain.

We do not know if there will be any mining involved or if it is fully pre-mined like Ripple. If there is no mining involved, who will be securing all the transactions on the network? Will there be transaction fees? Who will collect those fees?

What about Petro wallets?

The second issue about the currency is going to be wallets. How are people going to hold, spend, share, and save the Petro? In a country like Venezuela that is suffering from economic strife, it would seem logical that the best course of action for a widespread wallet would be an Android-based app.

For example, an app that could quickly store and share currency and addresses through QR codes much like how China is going through its mobile payment revolution with Alipay and WeChat pay would be ideal. Instead of relying on a technology like the contactless payments that Apple Pay uses, QR codes allow for better device compatibility since all it requires is a screen and a camera. Things that almost all smartphones have.

One final point we have to consider is the distribution of the crypto currency. For example, how will people get the Petro? Will they need to go to a government office and provide exchange agents with the national currency, the bolivar, and in exchange receive the Petro on their mobile wallet?

This also brings the issue of corruption into question. Will the Petro be distributed in a fully transparent way? Or if the currency fully pre-mined, will this just boil down to widespread money printing like the kind that has destroyed the value of the bolivar today?

Ignoring the Petro for a Bitcoin

One final circumstance that may happen, even if the rollout and supporting technology for the Petro are successful, is that the people may not care about or trust it. Venezuela has already seen a large uptick in the number of Bitcoin users. This is because Bitcoin already has a lot of reliable and safe infrastructure on which to transact.

Bitcoin also has numerous free wallets for virtually any kind of computing platform or mobile device.

We also don’t know if the Petro will see any form of adoption outside of Venezuela. Its an important fact that could greatly affect its value globally. For instance, if no one is using the Petro to transact outside of Venezuela, then it will likely see little to no adoption domestically, and thus defeat it’s purpose.

Featured Image via Fotolia

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Nasdaq Joins the Bitcoin Train, Introduces Futures

Editorial Team — Thu, 30 Nov 2017 09:06:17 +0000

As Bitcoin was breaking new records in the past 3 days, large financial exchanges are attempting to get in on the action.

We have previously reported that the CME will be launching derivative futures in December. The effect of this was a rapid acceleration in the price of Bitcoin from below $6,000.

Yet, according to a report, NASDAQ the second largest stock exchange in the world, also wants to get in on the action. They are reportedly looking to launch Bitcoin futures contracts next year.

This would allow for more investors to bet on the price of Bitcoin through the futures derivative contracts. Moreover, the name brand value that is attached to the NASDAQ exchange could further entrench Bitcoin in the public sphere.

Turning Tides

One thing that most people will agree is that Bitcoin has no doubt earned its stripes this year and has become impossible to ignore.

There has also been a great deal of interest in cryptocurrncies from large institutional investors and hedge funds. These investors do not want to miss the ongoing technological wave.

These plans by the CME and NASDAQ to introduce futures also follow a string of other companies that have offered similar derivative instruments. Earlier this year, a company called Ledger X has started offering Bitcoin OTC options.

There are also other companies that are planning to launch their own derivative offerings. For example, Cantor Fitzgerlad which is a large broker that owns an exchange, has also said that they will be offering Bitcoin futures in 2018.

Stabilising Forces?

One thing that Bitocin is well known for are its immense price swings. Hence, many may wonder the prudence of offering instruments that allow for taking much larger positions in Bitcoin with leverage.

Although derivatives and futures are indeed risky instruments, many economists think of them as a certain stabilising force. They will allow all of the Bitcoin investors to hedge their risk which reduces overall volatility.

Similarly, offering institutional investors an opportunity to hedge their positions will mean that more of them will feel comfortable investing in Bitcoin.

As more large market participants enter the Bitcoin ecosystem, so too will liquidity increase and the associated calming effects that this will have on the Bitcoin market.

Reaction to Announcement

Although Bitcoin derivatives have been available at other exchanges such as Bitmex and IQ Option, the announcements of these futures had more weight.

Yesterday was yet another wild day in the rough and tumble of the Bitcoin markets. The price of Bitcoin rallied past $10,000 in the morning and upon the news raced through the $11,000 level.

As most of the major news organisations reported the news, this was most likely the impetus that drove Bitcoin through the $11,000 level.

However, towards the end of the trading day there appeared to be a great deal of profit taking as Bitcoin retraced back below the $10,000 and fell towards $9,000.

Large institutional funds or “smart money” immediately picked up the coins at the relatively attractive level and drove the price back above $10,000.

Image via Coinmarketcap

This price action does indeed illustrate the immense volatility that is present in the market. One can only wonder how a deep and liquid futures and options market may have stabilised the “whip-saw” trading.

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Real Estate Brokers in Miami Want Bitcoin

Editorial Team — Mon, 27 Nov 2017 10:20:25 +0000

Bitcoin is facing mass adoption all around the world. So much so, that it is being used to buy assets in one of the oldest asset classes of all time.

When it comes to real estate, Bitcoin payments are being widely accepted. We have previously covered stories of Bitcoin payments accepted for apartments in Dubai to mansions in London.

The real estate brokers in Miami did not want to be left out of the fray. Just recently, it was reported that a penthouse in Miami worth $3.5m went for sale in Miami Beach. The owner also claimed that they would be accepting payments in Bitcoin and Ethereum.

Increasing Trend

What first started as a trickles has now become a strong flow. In September this year, Kuper Sotheby’s International in Texas claimed that they had completed the first sale of a house with Bitcoin.

What was most surprising was how smoothly the transaction was completed. They claimed that the transaction went off without a hitch. Moreover, it was completed in a mere matter of only 10 minutes.

This will no doubt take alot of the stress out of the transaction process and is the impetus for all of the real estate deals that have now being listed for cryptocurrencies.

Perhaps another reason that the seller has decided to list the property in Bitcoin is the decentralised and homogenous nature of the currency. There is no friction between borders and it has about the same value in a number of different countries.

Moreover, the proportion of real estate buyers in Miami that are foreign is much higher than in other US cities. It is much more convenient for an overseas buyer with Bitcoin to buy it directly than send a large amount of money out.

Even if the buyer eventually foregoes the opportunity to buy the property with Bitcoin, one cannot discount the additional marketing benefits of accepting Bitcoin payments in cryptocurrency.

Potential Speed bumps

Given that Bitcoin and crypocurrencies are such a new form of payment, this means that they lack many of the protections in real estate purchases that have existed for many years.

For example, when making large payments for illiquid assets such as real estate the use of traditional escrow services are preferred. There are also a number of other protocols that banks have established for the administrative process of a real estate deal.

Of course, there are also the concerns that real estate sellers may have over the price volatility. Bitcoin can easily move 10% a day up or down. This means that during the sale process, the owner / buyer face substantial risk for the eventual sale price. Other cryptocurrencies such as Ethereum have also been just as volatile.

More on the Horizon?

Despite the potential risks with a Bitcoin sale, there is precedent through previous sales like that in Texas. Moreover, Miami is one of the most well known real estate markets in the US.

A listing for a penthouse in Bitcoin could no doubt provide impetus for sellers in other cities and countries to follow suite. Given the rate with which people are buying and investing in cryptocurrencies, ignoring such a potential market wold be unwise.

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Pending Review, CME Announces Possible Bitcoin Futures Launch

Editorial Team — Wed, 01 Nov 2017 08:58:42 +0000

It was indeed an historic day for Bitcoin yesterday. Not only was it the 8th Birthday of Satoshi’s original Bitcoin whitepaper, but it was also the day that the CME announced it was planning to launch Bitcoin futures. This was no doubt one of the best birthdays that Bitcoin could have had.

The announcement was welcomed by most Bitcoin traders as the price rallied by almost 5% on the news. The announcement claimed that they derivatives would be planned for the fourth quarter of 2017 once all the relevant regulatory reviews had been completed.

The new Bitcoin futures contract would be cash settled and based on the CME CF Bitcoin Referance Rate (BRR). This index serves as the once-a-day reference rate of the US dollar price of Bitcoin. According to Terry Duffy who is the CME Group chairman and CEO:

Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract. As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities

Great for Mass Adoption

The move was heralded by Bitcoin users because of the many implications Bitcoin derivatives could have for eventual mass adoption of the cryptocurrency into numerous portfolios at institutions. Although we already had Bitcoin futures on the Bitmex Exchange, the CME announcement had a lot more weight behind it.

This is because it will provide a standardized and regulated contract which investors can trade on an exchange. As more investors and traders use derivatives to hedge their portfolio, this will decrease the volatility in Bitcoin. As this occurs it also makes the cryptocurrency that much more attractive for portfolios. Hence it has some sort of a positive feedback loop.

With the Bitcoin market cap exceeding that of PayPal as well as daily volume larger than that of Apple, it seems as if we are already approaching this adoption. We have previously covered stories of respected investors such as Bill Miller who have invested sizable amounts of their portfolios in Bitcoin.

Where to From Here?

The price of Bitcoin is constantly making new highs week after week. Although the CME announcement is a great move forward and an great milestone, the most important factor impacting the price of Bitcoin over the next month is the upcoming hardfork.

However, the momentum clearly seems to be with the bulls as most crypto traders have moved out of Altcoin holdings. Some well-known voices in the cryptocurrency community such as Max Kaiser were also predicting all-time highs to continue.

$7,000 staring us in the face. #Bitcoin pic.twitter.com/SHKAJB4lg0

— BITCOIN MAXIMALIST (@maxkeiser) October 31, 2017

Featured Image via Fotolia

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Mass Adoption as Numerous Hedge Funds Open Crypto Funds

Editorial Team — Sun, 29 Oct 2017 12:28:26 +0000

The Fintech research provider, autonomous next, has released details about its latest survey into the hedge fund landscape on Bitcoin. In their report they detailed that there are at least 124 funds that are invested in crypto based assets. This brings the total amount of Bitcoin AUM to about $2bn, an impressively large sum. This clearly shows that the tide may be turning for institutions.

According to CNBC, Autonomous next claimed that there are at least 90 funds that are focused on these digital assets such as Bitcoin which have launched this year. In terms of the composition of the larger funds, the top 37% of the funds used VC investment strategies and had about $1.1bn in funding. The rest used “statistical arbitrage” on the cryptocurrencies.

On total, the research now estimates that the total amount of money that is invested in Digital currencies in the hedge fund space is about $2.3bn. It is indeed quite an achievement to know that a mere 4 years ago this was the entire market cap of all cryptocurrencies.

Contrary to Opinion

Of course, there are many naysayers that will go on TV and claim that Bitcoin is a bubble and one should not invest. People such as Jamie Dimon of JP Morgan have even labelled it a “fruad”. Yet, the research shows that the most seasoned investors are moving some of their money into assets such as digital currency.

Although this is indeed a great move forward for cryptocurrency adoption, it still pales into comparison when one was to look at the total funds under management by hedge funds. At the most recent count, there is at least $3.15 trillion dollars invested in the industry.

Prevalence of ICOs

In that same report, Autonomous next delved into the massive explosion that we have seen Initial Coin Offerings (ICOs) with over $3bn going into the funding medium. They did this by tracking the number of ICOs that had raised over $1m. This allowed them to come to the conclusion that:

It is hard not to conclude that the market has shifted considerably from Enterprise blockchain to the public chains in terms of committed resources (even if you assume 50% of 2017 ICOs are scams)

Taking a look at the chart below that was drawn up by autonomous next one can see the enormous jump in the amount of ICOs that were issued this year in comparison to those last year.

They have also excluded from their research those funds that are “investment vehicles built by traditional asset managers that package exposure to a single currency, such as the Bitcoin Investment Trust from DGC/Grayscale”.

Even though the data is sometimes hard to come by in this space and what one may think of as a “fund”, they were able to piece together a pretty solid picture of hedge fund interest in the crypto space. They said that:

75%+ of these funds were started in 2017, that in total they manage between $2 and $3 billion

What this could mean for the cryptocurrency ecosystem is no doubt interesting. As more hedge funds decide to get involved the increased liquidity could result in less volatility in the assets. Moreover, with the advent of cryptocurrency derivative exchanges new avenues for hedge fund strategies are also opened.

Featured Image via Fotolia

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At the Crypto Regulation Vanguard, Russia Looks to Bring Crypto Into Use On Its Own Terms

Editorial Team — Thu, 26 Oct 2017 17:09:19 +0000

Just a little over two weeks ago, the crypto space held its breath as rumors swirled around regarding whether Russia would follow China’s lead in de-licensing crypto exchanges, banning ICOs, and so forth.

However, in the ensuing days, a flurry of pro-crypto news has burst out of Russia, showing that while the international rogue might be at the back of the pack when it comes to global politics, it’s now at the front of the line when it comes to nations who are seriously looking at crypto to revolutionize fintech.

The rest of the world would be wise to catch up. In the meantime, though, let’s bring you up to speed on all the important regulatory developments coming out of Mother Russia.

Regulatory Framework is announced

Crypto-enthusiasts gave a collective sigh of relief in the middle of October when it was first announced that the Russian government would officially start regulating cryptocurrencies.

Before this, there was considerable doubt in the community that top Russian leadership would move toward regulating, not banning, crypto.

Indeed, after Russian president Vladimir Putin met with a cabal of domestic central bank officials, it was decided that regulation would be given the green light.

Russian Finance Minister Anton Siluanov described the results of the meeting:

We have agreed on the following: the state should regulate the process of issuing cryptocurrencies, the process of mining, the process of circulation … The state should head this situation and regulate it legally.

Creation of Cryptoruble set to go ahead

Once Russia’s regulatory framework was announced, further news trickled out quickly. One of the most notable revelations was the impending creation of the “cryptoruble,” a digitized cryptocurrency version of Russia’s fiat currency, the ruble.

During a closed-door business conference in Moscow, Nikolay Nikiforov—Russian Minister of Communications and Mass Media—admitted that Putin had begun to organize the creation of the cryptoruble:

I so confidently declare that we will launch a cryptocurrency for one simple reason: If we do not, then in 2 months, our neighbors in the Eurasian Economic Community will do it

Nikiforov specifically said the new cryptoruble would be designed to “streamline the payment of personal income tax.”

Regulators hone in on crypto miners

Russian regulators haven’t forgot about crypto miners, either, as they’re wanting to bring the practice into the regulatory daylight, so to speak, so that the practice can be fully taxed.

The plan, per Committee on Financial Markets director Anatoly Aksakov, is to tax Russian crypto miners based on electrical consumption:

If we talk about mining, then this is a large consumption of electricity, it is obvious that it is not difficult to track. I do not see any problems here.

Crypto detective agency

A top Russian legislative body has proposed the creation of a “crypto-detective agency.”

According to the State Duma Financial Market Committee, the agency would be tasked with researching ICOs and other enterprises in the space as a means to protect Russian investors from malicious, fraudulent activities.

This glorified research group will undoubtedly materialize over the next few months.

Big Business in Russia demands only national cryptocurrencies

A major Russian business group—The Association of Entrepreneurs for the Development of Business Patriotism—is now lobbying the Russian federal government to only allow domestic cryptocurrencies in Russia.

This group sees foreign cryptocurrencies as destabilizing forces within Russia. They propose that only Russian-made crypto ventures should be allowed to freely operate within the nation.

Officials in the State Duma noted their skepticism regarding whether separating foreign from domestic cryptocurrencies would even be technically possible.

More news to come

Amazingly, all these headlines have occurred within the span of just two weeks.

The future of crypto is exciting in Russia, but it’s clear the Russian government is going to engage with blockchain technology and the space around it on their own terms.

Look for other nations to play catch-up while Russia continues to be a regulatory trendsetter in the field of cryptocurrencies.

Images via Fotolia and NBC news

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Lower Volatility a Sign that Bitcoin is Maturing

Editorial Team — Mon, 23 Oct 2017 08:56:26 +0000

If you were to ask anyone on the street what came to mind when they thought about Bitcoin, no doubt the wild price swings would something that they mention. This is a fair characterisation as Bitcoin has exhibited some really intense volatility over its history.

When people think back to the early days of Bitcoin, it was not unusual to see swings of at least 60% on daily basis. However, it seems as if the mass liquidity that has recently flowed into market has had a dampening effect on the volatility.

Indeed, the daily trading volume on Bitcoin is about $4.5bn which is now more than that of Apple. This may indeed be a great argument for increased adoption.

Changing Conditions

Although the excessive volatility that used to be present with Bitcoin was a great thing for day traders, it was a major barrier to large scale adoption. Indeed, the volatility was one of the main arguments against retail investors allocating a portion of their portfolio to it.

For example, the president of the ECB (European Central Bank), Mario Draghi stated that the Bitcoin market was not mature enough to consider any regulations from the central bank. He claimed that the financial crisis taught us that financial innovation should be embraced with attention placed on the potential risks.

These statements might be a bit stale though. This is because Bitcoin has matured quite a bit over the past year and other central banks are considering regulations of their own. Countries in Asia such as South Korea and Japan are in the process of introducing financial regulation for the currency.

This could possibly coincide with the marked decreases in the volatility in Bitcoin whichcan be seen by the volatility chart from prominent Bitcoin analyst, Chris Burniske on Twitter.

https://twitter.com/TuurDemeester/status/922094896856608768

As one can see, the annual daily volatility in the price has fallen from about 10% back in late 2011 to about 4% today.

Benefits of Lower Volatility

Of course, as more people start entering the market and trading volume continues increasing, so will volatility reduce in a positive feedback loop. Increased liquidity means that price swings are less likely to occur as there are more participants to meet large bids / offers.

One should be careful of increasing volatility when the price is also increasing. It always a positive indicator for Bitcoin as mentioned in a 2015 tweet by Andrea Antonopoulos:

Don't be too excited with recent bitcoin short squeeze and rapid price climb. Volatility is bad even when it's going upwards #chillout

— Andreas (BEWARE of giveaway scams!) (@aantonop) October 29, 2015

In this case, however, it is quite refreshing to see that the price of Bitcoin and Market Capitalisation has increased so much while volatility has steadily been declining. It is probably an indication of the underlying demand for holding Bitcoin and not just blind speculation.

Hopefully as more regulations are introduced and derivatives and investment products such as ETFs are launched, we are likely to see a further fall in the volatility of the coins.

Featured Image via Fotolia

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The Increasing Likelihood of National Cryptocurrencies

Editorial Team — Wed, 18 Oct 2017 18:34:31 +0000

If you can’t beat ‘em, join ‘em. That old adage seems to sum up the prevailing mood in a number of national treasury departments as they contemplate how best to address the phenomenal growth of cryptocurrencies across the world.

Two things have become apparent about cryptocurrencies in recent months: they’re now a fixture of the global financial sphere and regulating them is going to prove a very tough task for any government. In order for those in power to wield any sort of control over this phenomenon, they’re going to have to start at the beginning and create their own.

Their reasons for doing so can be best summed up in one word: tax. Nothing gets governments so worked up as the thought that they’re being stiffed of their cut out there in the markets.

Russia eyes “Crypto Ruble”

It’s not all that surprising to see them starting to get in on the act. This week has brought the news that Russia is preparing to launch the ‘CryptoRuble’ in the very near future. The Communications Minister, Nikolay Nikiforov made the announcement, adding somewhat bluntly ‘I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after two months our neighbours in the EurAsEC will.’

He might also have mentioned that, whilst investors will be able to exchange their CryptoRubles for actual Rubles whenever they wish, they’ll be liable to pay a 13% tax if they can’t explain where their digital assets came from.

Given the fact that Russia’s economy is still struggling under the weight of US sanctions imposed in the wake of the seizure of the Crimea region from Ukraine in 2014, the Putin administration’s move into the cryptocurrency sphere is a logical one. The last thing the Kremlin needs is for crypto trading to flourish beyond its control. Whether the CryptoRuble will prove a success however remains to be seen.

And it’s not just the Russians; other countries are also considering launching their own cryptocurrencies. In September it was announced that Japan was weighing up the idea in the form of the so-called ‘J-Coin’ albeit for slightly different reasons and on a more sedate timescale. Surprisingly for such a tech-savvy nation, the Japanese remain very much wedded to cash and a massive 70% of transactions are still carried out this way. This results in high administration and banking fees and yes, lost tax revenue. The Japanese aren’t rushing the process though, as the launch is being tentatively planned to coincide with the 2020 Tokyo Olympics.

Other Governments Join the Fray

Perhaps the most appropriate setting for a national cryptocurrency is the country that gave us the brain behind Ethereum and which also happens to be one of most connected and technologically adventurous societies on earth: Estonia. If it’s internet pioneers you’re after then this tiny Baltic state is the place to go – the country is streets ahead of virtually every other in the world when it comes to web-based services and innovation. Their national cryptocurrency program is well underway in the form of the ‘estcoin’ and with the know-how at their disposal, you wouldn’t bet against its success.

Meanwhile, down in Dubai they’re also jumping on the cryptocurrency bandwagon. The Gulf State announced that it was developing ’emCash’ earlier this month with official statements placing an emphasis on how it would ‘improve ease of business and quality of life.’ This follows the news that Dubai wants to become ‘the world’s first blockchain city’ – an ambition that underlines the vast potential of the technology behind cryptocurrencies themselves. It’s worth remembering that blockchain is a major factor behind the scenes of these national cryptocurrency ventures. This technology is going to change everything.

The final stop on our world tour of national cryptocurrencies may require a visit to Google first, as you’d be forgiven for wondering where on earth Abkhazia actually is. It’s only recognised as a state by Russia and a handful of other countries and comprises the western chunk of the Republic of Georgia. Its population of around 240,000 is marginally less than that of the London borough of Hackney.

Nevertheless, despite these limitations, Abkhazia’s is perhaps the most ambitious of all national cryptocurrency schemes. The proposed ‘Abkhazian Republic Coin’ is apparently being considered as a future replacement for ‘normal money’ in the next few years. You certainly can’t accuse those Abkhazians of lacking ambition, even if they do lack formal recognition.

No Country Left Behind

It’s no surprise to see governments waking up to the power and potential of cryptocurrencies and it’s hard to blame them for wanting a slice of the pie. Back in August the total value of the cryptocurrency market hit $150 billion and isn’t yet showing any signs of slowing down. This is a party that it doesn’t pay to be late to.

Whether these national cryptocurrencies will replicate the success of Bitcoin, find their own corners of the market or crash and burn altogether is anyone’s guess. What is beyond doubt is that other countries will be keeping a very close watch on how the CryptoRuble, estcoin and others fare as they contemplate cryptos of their own. Who knows, before too long perhaps we’ll all be able to point out Abkhazia on the map.

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Indian Government dislikes Cash, What about Bitcoin?

Editorial Team — Mon, 16 Oct 2017 10:21:16 +0000

It was quite a contentious decision. Last year the Indian government made the decision to ban 85% of the cash that they had in circulation. It caused chaos at ATMs and money exchanges around the country as people tried to exchange the cash in particular denominations.

This was done in order to limit the use of cash for nefarious purposes and also to reduce tax evasion. Even though this did indeed cause quite a disruption, it is a great opportunity for the citizens to adopt Bitcoin and other cryptocurrencies.

This is not the first time that the Indian government has struggled with Monetary policy issues. The 500 and 1,000 INR bills were no longer legal tender. These were the most popular denominations for most Indians so the move caused a lot of pain.

A Broader Issue

The issue is much broader than general concerns about tax evasion. A large proportion of India’s population remains unbanked and they live on these smaller cash payments on a daily basis.

Even for more middle class members of the population, it was a cursory warning as to the power that the government has over the affairs of their citizens. The notion that with the mere stroke of a pen, a great contingent of your wealth is no longer legitimate.

This, however, could have been effectively countered for those who invested in Bitcoin. It is no surprise then that the price of the coins has surged in the local currency.

Bitcoin for the Unbanked

Given this increasing demand for Bitcoin in India, demand for Bitcoin services are also increasing. For example, popular wallets such as Unocoin as well as exchanges such as Zebpay are doing really well in the country.

There are also a number of new start ups that are opening their books for business in the country. For example, a new start up called BitBox is looking to provide free trading on its platform. It will only charge users for withdrawal and deposit fees.

This is indeed a great concept as it aims to make transacting in Bitcoin fast and affordable. The coins will either be kept on the exchanges in a safe and secure cold storage or withdrawn at any time.

Store of Value

Although Bitcoin will greatly enhance the manner in which people can transact in India, Bitcoin also provides a great way for citizens to store their wealth with a deflationary asset. India is one of the countries with the largest demand for gold.

Citizens buy alot of gold precisely as they view it as a safe place to preserve their fortunes over time. As Bitcoin is often compared to a “digital gold”, it could provide them with another safe haven asset which diversifies.

Moreover, if one was to compare the performance over the past 5 years of Gold and Bitcon, Bitcoin not only provided for a store of wealth but also a great increase in it.

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Signs of Bitcoin Mass Adoption Abound

Editorial Team — Tue, 10 Oct 2017 18:41:20 +0000

Bitcoin is well and truly out of the box and on its way to becoming a fixture of day-to-day life.

The days of the cryptocurrency being confined to the dark web and used only by criminals and those with questionable morals are long gone. Bitcoin is now an established feature of the financial landscape and is becoming more ubiquitous by the day.

From Taxes to Tuition

Less than a month ago, the Swiss town of Chiasso announced that as of next year, citizens would be able to use Bitcoin to pay their local taxes. This follows a move by another Swiss town which last year began accepting payment for municipal services in the same way. Both moves have been implemented in order to try and establish the areas as centres of cryptocurrency and blockchain technologies.

If this seems like a bold step into the unknown, then it might come as a surprise to hear that these Swiss towns are relative latecomers to the Bitcoin party when compared to the University of Cumbria. Back in 2014, UoC became the first institution in the UK to begin accepting tuition fees payments in bitcoins and other universities are now following its lead. In fact, if you were lucky enough to attend one of New York’s best private schools before starting your university career, your whole education could theoretically be funded by your (or your parents’) Bitcoin investments.

There is now a wide variety of companies and services out there that accept bitcoins and the list is growing by the day. But buying a beer or registering a domain name with bitcoins is one thing – paying tuition fees or taxes with them is quite another. It’s these more significant, less trivial payments that point towards mass adoption as opposed to novelty value.

Bitcoin for Real Estate

Alongside tuition fees and taxes, another significant outlay for many of us is rent. We all have to live somewhere, after all. Yet again, Bitcoin is making inroads into this sector too – in September a London property developer announced that its tenants would be able to pay their deposits using bitcoins with rental payments due to be allowed later this year. Similar schemes have been reported from New York to the Philippines.

Bitcoin can also be used to purchase property as well. Back in September it was announced that lingerie tycoon Michelle Mone and her partner were giving buyers the opportunity to purchase apartments in their new Dubai development with bitcoins, whilst on a slightly smaller scale an enterprising South Londoner offered his Peckham home for sale in the same way.

It’s easy to see the attraction for those who chose to use Bitcoin for these types of purchases. Transactions are completely secure and almost instantaneous. Hold-ups with bank transfers and third party fees are cut as the currency operates on a peer-to-peer basis. And for the many of us whose trust in banks has never recovered following the crash of 2008, Bitcoin offers a democratic, decentralised and viable alternative.

Realistic Expectations

We are still some way from mass adoption and the process will be gradual as opposed to overnight. Whilst there are indeed thousands of shops and businesses across the world that now accept bitcoins, there are millions more that still adhere to the traditional system.

The public perception of Bitcoin is still coloured by its dark web associations in many peoples’ minds and there are plenty who find the concept of a digital currency with no solid incarnation to be baffling. Attitudes and perceptions will have to shift but there are encouraging signs that show such a process is well underway.

In 1789, Benjamin Franklin wrote to a friend that, ‘in this world nothing can be said to be certain, except death and taxes.’ All these years on, chances are not many people would disagree with him on that one. We’ve already seen how Bitcoin is paying that second certainty in Switzerland, so consider this: If you’re planning a funeral in Minnesota, Crescent Tide Funeral Services proudly state they accept bitcoins too. There’s even a 3% discount.

With life’s two certainties already covered by Bitcoin, who’d bet against everything else in between eventually going the same way?

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