How Blockchain Is Redefining the Future of Commerce

How Blockchain Is Redefining
the Future of Commerce

 

Probably the most significant benefit of blockchain

in commerce is cost reduction.“Blockchain will do the same to banking what the internet did to media” seems to be the phrase this year. In fact, like the internet was the first native digital medium for information, blockchain is the first native digital medium for peer-to-peer value exchange. Therefore, blockchain it is set out to revolutionize numerous industries, including banking, cyber-security, commerce and much more.Vitalik Buterin, the creator of cryptocurrency Ethereum, says that the technology is so convenient that it can be applied for years in future industries beyond our current imagination.

As of today, the cryptocurrency hype is real. There is an increasing number of new emerging startups based on blockchain driven solutions, that seek to improve the way variety of industries have been operating for decades. Then there are the skyrocketing prices of Bitcoin, Ethereum and other alt currencies.Such activities may indicate that this is something more than just public hype. However, the general public still treats it as another fad. So the question remains: Is it?

Blockchain and commerce

In the recent Global Ecommerce Summit, it was stated that cryptocurrencies together with blockchain are the future of online payments. Jasmin Battista, leader of e-commerce in the European Commission’s DG Connect project, has emphasized that smart contracts are especially important for the traders.The Ethereum based system may be the following natural step for transaction processing, order tracking, supply chain management or tracking management activities. Many entrepreneurs and industries already work with the technology adapting it to their needs and people’s problems.

For example, a startup Monetha is set to create an Ethereum payment solution which resembles a combination of PayPal and Trustpilot. Just a day ago they landed a strategic partnership with Pigu.lt, the largest online retailer in Latvia, Lithuania and Estonia. The interest in the company is peaking just a few days before their first ICO on August 31.What makes blockchain such a promising medium for the future of commerce? Here are the key advantages of what it offers.

Low cost

Probably the most significant benefit of blockchain in commerce is cost reduction. Today, business transactions run through a complex network of vendors, including credit card networks, banks and payment processors. Blockchain removes all the unnecessary middlemen allowing for cheap, quick and reliable peer-to-peer transactions.Regular costs can add up to additional 7% for every online purchase. These costs are passed on the buyer most of the time. People have already shown that they are becoming increasingly aware of the extra cost by switching and supporting banking alternatives such as the unicorn TransferWise or Revolut.

A large number of stakeholders makes e-commerce transactions unnecessarily complicated. The involved parties slow down the process by series of bureaucratic steps, creating additional friction.Payment billing and processing used to take up to a week, but blockchain makes it happen almost in real-time.Its decentralized approach disentangles the processing to a simple interaction between buyer and merchant. There is no need for central authorization entities, so the money can travel almost instantly and without resistance.

Security

Commerce security in blockchain derives from its immutable nature and decentralized structure. It prevents fraudulent transactions simply by removing the ability to alter the data.So even if the customer encounters falsified goods, it can be tracked and recorded. Such implication could prevent future business with untrustworthy sellers.

Accessibility

According to the latest Global Findex report, 2 billion people and 160 million small businesses still don’t have formal access to banking. While these are mostly poor people, 37% of the world’s population is still an astounding number of unbanked people. Due to its digital nature, blockchain is easy to integrate.It may be too early to claim that blockchain will end poverty, but its digital solutions are easy and less costly to implement and has lots of potential to empower the excluded people to become the participants in the global economy.

Future is now

While most of the population are still skeptical about their future, many bright minds are sweating day and night to bring the best possible solutions to the public.Blockchain offers all of what our current commerce system does, except that it is cheaper and faster. Making commerce and finances more transparent is a huge step towards democratizing the economy and capturing the power from the authorities by bringing it back to the people.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Miners Are Milking Bcash’s Difficulty Adjustments

Miners Are Milking Bcash's Difficulty Adjustments

Miners Are Milking Bcash’s Difficulty Adjustments

 

Bitcoin Cash (Bcash or BCH) has been more profitable to mine than Bitcoin (BTC) on multiple occasions over the past week or two. This is creating a new dynamic within Bitcoin’s ecosystem — one which is not really beneficial for either coin.

In Bitcoin Magazine's previous article on this topic, we explained why Bcash mining should normally not affect Bitcoin too much, aside from the incidental higher fees and slower confirmations. We also explained why this dynamic could, in the meantime, ruin Bcash, as it should freeze that blockchain in its tracks.

We also noted that Bcash has a built-in emergency solution to mitigate the risk, which could get its blockchain moving again. But this solution does assume either that some miners are choosing to act against their own short-term interest at certain times for the benefit of all miners — or that miners are coordinating for their mutual benefit, on some level.

Now, several days later, it appears that this is what’s happening. Some miners are either acting against their short-term interests for specific periods of time — or they are coordinating to trigger the emergency solution.

The good news for Bcash is that this means its blockchain is still in motion for now, at least on most days. But at the same time, the dynamic generated by the emergency solution is benefiting its miners overall, more than anyone else — and it’s even calling into question the long-term viability of Bitcoin Cash itself.

The Emergency Difficulty Adjustment

First, a brief recap of Bitcoin mining and Bcash’s built-in emergency solution.

Mining profitability is determined by the value of the block reward (newly mined coins plus transaction fees) and the “difficulty” to mine a block. If the value of the block rewards are higher and the difficulty is lower, miners make more money.

The difficulty on both Bitcoin and Bcash self-adjusts each time 2016 blocks are mined. If it takes longer than two weeks to mine these 2016 blocks, difficulty adjusts downward so it becomes easier to mine. If it takes less than two weeks, the difficulty adjusts upward so it becomes harder.

Bcash really needs its difficulty to be low enough to match the value of its block rewards in relation to Bitcoin. So, if Bcash's block reward is worth 15 percent of Bitcoin’s block reward, Bcash’s difficulty must also be 15 percent of Bitcoin’s difficulty, or lower. Otherwise, Bitcoin will be more profitable to mine, and miners will really have no reason ever to return to Bcash, leaving the Bcash blockchain frozen in its tracks.

The big problem is that, as long as Bcash’s block rewards do not exceed Bitcoin’s block rewards, this is bound to happen sooner or later. At some point, Bcash difficulty will exceed what its block reward will be worth, at which point all miners should leave.

To mitigate this problem, Bcash implemented a feature called the “emergency difficulty adjustment” (EDA). If in a space of at least twelve hours, fewer than six blocks are mined, the difficulty adjusts downwards by 20 percent for the next block. If miners coordinate or time this well, this can bring difficulty down by about 75 percent within a day.

The Problems

While triggering the EDA is preferable over a blockchain frozen in its tracks forever, it does present new problems.

Once difficulty is low enough, profit-maximizing miners are incentivized to jump on Bcash mining, producing an enormous number of blocks before difficulty adjusts within a day or two. Then, once the difficulty adjusts upward by a lot, and all these miners will switch back to Bitcoin — until some miners trigger Bcash’s EDA again, potentially after 12 hours or so, and all miners hop back on Bcash, creating a sort of stop-and-go cycle, on repeat.

In our previous article, we noted that this stop-and-go cycle is not ideal for users. But we didn’t go into specifics about what problems those would be, exactly. And there are a number of them…

First of all, this stop-and-go cycle actually causes a disturbance for Bitcoin users as well. Each time miners hop on Bcash, hash power leaves the Bitcoin network, which means that Bitcoin blocks are mined more slowly. As a result, Bitcoin’s transaction fees and confirmation times go up. And the fact that miners are intentionally gaming the system like this, suggests that the situation could drag on for a while: potentially weeks or months, and maybe even longer depending on how Bcash develops.

Meanwhile, this cycle makes Bitcoin Cash confirmation times very unreliable. On some days, transactions confirm very quickly, as blocks are found about every minute. On other days, there are (almost) no new blocks at all for at least 12 hours, and transactions take incredibly long to confirm, by comparison.

Arguably, an even bigger problem is that because of this dynamic, Bcash mining rewards — new coins — enter the system much more quickly: currently about four times faster than they are supposed to. As a result, Bcash’s inflation rate is relatively high. While Bitcoin’s current yearly inflation rate sits at about 4 percent, Bcash’s yearly inflation rate is on pace to be closer to 16 percent. This favors miners who earn these coins — at the cost of coin-holders.

What’s more, because of this same dynamic, Bcash’s next block halving will arrive much faster as well, possibly around mid 2018 instead of mid 2020. And if nothing changes, there could even be another halving by early 2019: the block reward could fall to 3.125 BCH in just a little over a year from now.

These halvings is where Bcash’s real problems could begin.

As perhaps its central value proposition compared to Bitcoin, Bcash wants to keep its transaction fees extremely low; even as low as zero. Therefore, it is not clear that fees will make up for the loss in rewards; it seems especially unlikely that these losses will be made up within a year, if ever. So unless the market price of BCH, compared to BTC, increases by a lot, and fast, the value of Bcash’s block reward could dwindle significantly.

Now, keep in mind that for miners to mine Bcash at all, its difficulty must be even lower than its block reward, compared to Bitcoin, and that if that is the case, all profit-maximizing miners are expected to pile on.

That means that all these miners will be able to mine the 2016 blocks even faster when they do all pile on Bcash. Instead of two days, it could take them even one day. Or less. Which would, of course, mean that the next block halving will be reached even faster. This would in turn means that the block rewards would be even less valuable, difficulty would needs to be even lower for miners to hop on, and miners would be able to mine the 2016 blocks even faster next time. Maybe even in half a day.

Bcash’s EDA could lead to vicious downward spiral, which would significantly decrease Bcash’s security against 51% attacks. It would also make it easier for miners hostile to Bcash to frustrate the system in other ways; for example, they could prevent emergency adjustments from kicking in. Moreover, Bcash could reach the point where its block rewards aren’t even worth the time and effort for miners to switch between chains, and Bcash freezes in its tracks, after all.

Bitcoin Cash will need to fix this problem somehow, and by now developers are indeed discussing the issue. Either that, or the coin must become more valuable than Bitcoin to mitigate the problem altogether — fast.

 

by Aaron van Wirdum

Staff Writer Bitcoin Magazine

Aug 27, 2017 12:46 PM EST

 

Posted by David Ogden Entrepreneur

David Ogden cryptocurrency Entrepreneur

 

David https://markethive.com/david-ogden

Cryptocurrency Trading Helps Make Traditional Wall Street Traders Millionaires

Cryptocurrency Trading Helps Make Traditional Wall Street Traders Millionaires

 

Smart Investment

Wall Street’s traders Mike Komaransky and Chase Lochmiller have achieved greater financial success by trading cryptocurrencies like Bitcoin and Ethereum. They’re the only ones withdrawing their funds from stocks. In fact, CNBC reports that many stock traders are pulling out their billions from the stock market. One of the traders, Komaransky, has reportedly done so well that he already announced his retirement at the age of 38 in the summer of 2017.

How Komaransky discovered Bitcoin

Komaransky became interested in Bitcoin after reading George Mason University economist Tyler Cowen’s blog about the digital currency in 2010. Komaransky was working in London, England during that time. In late 2013, the price of Bitcoin started its upward mobility following the collapse of the biggest Bitcoin exchange, Mt. Gox. Due to the continuous rise of Bitcoin’s price, high-frequency trading company DRW Holdings founder and chief executive officer (CEO), Don Wilson, has ordered Komaransky to establish cryptocurrency trading currency subsidiary Cumberland Mining in 2014.

Cumberland Mining was able to exploit the volatile era of Bitcoin trading as it was successful in making notable trades such as gaining the bulk of tokens auctioned by the US Marshals Service. The coins were seized by the service from dark market operator Ross Ulbricht and the illegal online black market he established, Silk Road. Cumberland Mining has sustained its success and is now one of the biggest digital currency market makers. The company currently has 12 employees, who are mainly involved in trading cryptocurrencies such Bitcoin and Ethereum.

Lochmiller’s story

For the past 10 years, Lochmiller has worked for the largest high-frequency trading companies on Wall Street such as Jump Trading and Getco. In July 2017, however, he resigned at Jump Trading to join hedge fund Polychain Capital, which is mainly involved in trading virtual currencies like Tezos and Ethereum.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Oraclize, Digital Identity to Develop Financial Applications of Ethereum Blockchain

Oraclize, Digital Identity to Develop Financial Applications of Ethereum Blockchain

 

Oraclize has closed on €500,000 in their seed round led by Digital Identity SA,

a growing firm delivering services for the Fintech industry. The company believes that Blockchain technology opens many opportunities in a variety of areas, including Fintech and cryptocurrencies. With its primary focus being on financial companies, cryptocurrency wallets, and decentralized exchanges, among others, Oraclize represents a strategic investment securing development of the layer on top of which these financial applications are built.

Natale Ferrara, director of Digital Identity SA, commented:

“Oraclize provides an infrastructure tool essential for Blockchain applications to grow and have a concrete impact. I believe that our investment in Oraclize will support the talented team with its activities and ultimately benefit the Blockchain ecosystem as a whole.”

In the Blockchain context, the company provides a safe data-transport-layer enabling decentralized applications (dapps). Since 2015, it has served over 200,000 requests on the Ethereum mainnet and several million on test nets, backing its claims with authenticity proofs based on a variety of cryptographic techniques. It aims at developing Blockchain applications in order to overcome common limitations while minimizing additional trust lines. For this reason, the authenticity proofs rely on independent attestors, leveraging both software and hardware-enforced security technologies.

Thomas Bertani, CEO of Oraclize, comments:

“Since launching in March 2015, the Oraclize concept has evolved and reshaped according to the needs of the market. Today, Oraclize is the longest running Oracle service across a multitude of Blockchain platforms. Our activity goes beyond that, we have developed a powerful technology securing different kinds of processes. This funding will enable us in bringing our technology to the next level.”

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Does Bitcoin Have a Mining Monopoly Problem?

Does Bitcoin Have a Mining Monopoly Problem?

 

 

During bitcoin's early days, anyone could "mine"

it using their home computer. But as the price of digital currency climbed towards $100 in 2013 (it's now over $4,000), professional mining groups with specialized computer chips emerged. Today, these groups, or pools—nearly all based in China—have become concentrated and now dominate the production of new bitcoins. This phenomenon is not new, but an article in Quartz this week shows how pervasive it is. The article looks at a company called Bitmain, which became a powerhouse by developing ASIC chips used just for

bitcoin mining:

Bitmain may now be the most influential company in the bitcoin economy by virtue of the sheer amount of processing power, or hash rate, that it controls. Its mining pools, Antpool and BTC.com, account for 28.9% of all the processing power on the global bitcoin network.

The piece, which describes Bitmain's plans to move into artificial intelligence, profiles the company's co-founder Jihan Wu, a controversial figure in the bitcoin world—in part over allegations he manipulates the crypto-currency for his own ends. This includes the recent schism that saw bitcoin's blockchain (the record of all transactions) split in two, creating a new currency

called "Bitcoin Cash."

Critics of Bitmain suspect that Wu was behind the recent, somewhat related split of bitcoin called the bitcoin-cash hard fork. That split was supported by a miner in Shenzhen named ViaBTC—which happened to be a company that Bitmain has invested in.

If the allegation is true (for the record, Wu denies them), it suggests bitcoin is vulnerable to market manipulation not just by traders who hold large stores of bitcoin, but also by miners like Bitmain.

One of those who holds this view is the CTO of the cyrptocurrency consulting firm Blockstream, Samson Mow, who recently wrote an editorial for Fortune questioning the viability of Bitcoin Cash. He believes Wu is engaging in shenanigans to secretly undermine the integrity of bitcoin. "Jihan does have a lot of control for now, and much of that is simply due to mining centralization. As Bitmain is so vertically integrated, from selling ASICs, to operating mining farms, to running mining pools, he can prevent network upgrade and attempt to hijack the Bitcoin brand with things like [Bitcoin cash]," Mow said by email.

Such concerns over mining monopolies, and their ability to promote "forks" in the core bitcoin software, are typically regarded as philosophical feuds within the bitcoin community. But the real world market implications may also give pause for ordinary bitcoin buyers—many of whom are likely unaware of the emergence of mining cabals that are able to sway the future of bitcoin. Mow, though, believes that whatever influence Jihan and other large miners may exert is only short-term and that the decision by bitcoin users to implement projects like SegWit (a plan to improve the efficiency of bitcoin's blockchain) show bitcoin rem

Does Bitcoin Have a Mining Monopoly Problem?

During bitcoin's early days, anyone could "mine" it using their home computer. But as the price of digital currency climbed towards $100 in 2013 (it's now over $4,000), professional mining groups with specialized computer chips emerged. Today, these groups, or pools—nearly all based in China—have become concentrated and now dominate the production of new bitcoins. This phenomenon is not new, but an article in Quartz this week shows how pervasive it is. The article looks at a company called Bitmain, which became a powerhouse by developing ASIC chips used just for

bitcoin mining:

Bitmain may now be the most influential company in the bitcoin economy by virtue of the sheer amount of processing power, or hash rate, that it controls. Its mining pools, Antpool and BTC.com, account for 28.9% of all the processing power on the global bitcoin network.

The piece, which describes Bitmain's plans to move into artificial intelligence, profiles the company's co-founder Jihan Wu, a controversial figure in the bitcoin world—in part over allegations he manipulates the crypto-currency for his own ends. This includes the recent schism that saw bitcoin's blockchain (the record of all transactions) split in two, creating a new currency

called "Bitcoin Cash."

Critics of Bitmain suspect that Wu was behind the recent, somewhat related split of bitcoin called the bitcoin-cash hard fork. That split was supported by a miner in Shenzhen named ViaBTC—which happened to be a company that Bitmain has invested in.

If the allegation is true (for the record, Wu denies them), it suggests bitcoin is vulnerable to market manipulation not just by traders who hold large stores of bitcoin, but also by miners like Bitmain.

One of those who holds this view is the CTO of the cyrptocurrency consulting firm Blockstream, Samson Mow, who recently wrote an editorial for Fortune questioning the viability of Bitcoin Cash. He believes Wu is engaging in shenanigans to secretly undermine the integrity of bitcoin. "Jihan does have a lot of control for now, and much of that is simply due to mining centralization. As Bitmain is so vertically integrated, from selling ASICs, to operating mining farms, to running mining pools, he can prevent network upgrade and attempt to hijack the Bitcoin brand with things like [Bitcoin cash]," Mow said by email.

Such concerns over mining monopolies, and their ability to promote "forks" in the core bitcoin software, are typically regarded as philosophical feuds within the bitcoin community. But the real world market implications may also give pause for ordinary bitcoin buyers—many of whom are likely unaware of the emergence of mining cabals that are able to sway the future of bitcoin. Mow, though, believes that whatever influence Jihan and other large miners may exert is only short-term and that the decision by bitcoin users to implement projects like SegWit (a plan to improve the efficiency of bitcoin's blockchain) show bitcoin rem

Does Bitcoin Have a Mining Monopoly Problem?

During bitcoin's early days, anyone could "mine" it using their home computer. But as the price of digital currency climbed towards $100 in 2013 (it's now over $4,000), professional mining groups with specialized computer chips emerged. Today, these groups, or pools—nearly all based in China—have become concentrated and now dominate the production of new bitcoins. This phenomenon is not new, but an article in Quartz this week shows how pervasive it is. The article looks at a company called Bitmain, which became a powerhouse by developing ASIC chips used just for

bitcoin mining:

Bitmain may now be the most influential company in the bitcoin economy by virtue of the sheer amount of processing power, or hash rate, that it controls. Its mining pools, Antpool and BTC.com, account for 28.9% of all the processing power on the global bitcoin network.

The piece, which describes Bitmain's plans to move into artificial intelligence, profiles the company's co-founder Jihan Wu, a controversial figure in the bitcoin world—in part over allegations he manipulates the crypto-currency for his own ends. This includes the recent schism that saw bitcoin's blockchain (the record of all transactions) split in two, creating a new currency

called "Bitcoin Cash."

Critics of Bitmain suspect that Wu was behind the recent, somewhat related split of bitcoin called the bitcoin-cash hard fork. That split was supported by a miner in Shenzhen named ViaBTC—which happened to be a company that Bitmain has invested in.

If the allegation is true (for the record, Wu denies them), it suggests bitcoin is vulnerable to market manipulation not just by traders who hold large stores of bitcoin, but also by miners like Bitmain.

One of those who holds this view is the CTO of the cyrptocurrency consulting firm Blockstream, Samson Mow, who recently wrote an editorial for Fortune questioning the viability of Bitcoin Cash. He believes Wu is engaging in shenanigans to secretly undermine the integrity of bitcoin. "Jihan does have a lot of control for now, and much of that is simply due to mining centralization. As Bitmain is so vertically integrated, from selling ASICs, to operating mining farms, to running mining pools, he can prevent network upgrade and attempt to hijack the Bitcoin brand with things like [Bitcoin cash]," Mow said by email.

Such concerns over mining monopolies, and their ability to promote "forks" in the core bitcoin software, are typically regarded as philosophical feuds within the bitcoin community. But the real world market implications may also give pause for ordinary bitcoin buyers—many of whom are likely unaware of the emergence of mining cabals that are able to sway the future of bitcoin. Mow, though, believes that whatever influence Jihan and other large miners may exert is only short-term and that the decision by bitcoin users to implement projects like SegWit (a plan to improve the efficiency of bitcoin's blockchain) show bitcoin remains fundamentally democratic.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Bitcoin Prices Rise But Fall Short of All-Time High

 

The price of bitcoin closed in on its all-time high

of $4,522.13 today, though it ultimately fell short of surpassing the total, first set on August 18. At press time, the price of bitcoin had hit a high of $4,496, just 1% above opening, only to to fall back to $4,386, a move that marked the next leg in a volatile week for the cryptocurrency. Just this morning, the price surged above the $4,400 mark again after dropping below $3,000 several times over the last seven days. Over the past week, however, the price of bitcoin is up 7%, according to data from the CoinDesk Bitcoin Price Index (BPI), and it's now up 68% month-over-month.

The steady uptick has come at a time when the rising prices of bitcoin and other cryptocurrencies has pushed the collective market capitalization for those networks to new heights as well. Two days ago, the overall market cap climbed above $150 billion for the first time, according to data provider CoinMarketCap, and today the market was hovering near all-time highs. At publication, the total value of all cryptocurrencies was $153 billion.

Bitcoin prices have once more climbed past $4,400 following days of generally sideways movement within the $4,100–$4,200 range. Starting to pick up from around 22:00 UTC yesterday, prices across global exchanges opened the session at $4,362, and had reached a high of $4,420. Prices were again at that level at press time, a rise of 1.33 percent, according to the CoinDesk Bitcoin Price Index.

Those figures put prices around $85 short of the all-time high achieved on August 17, when bitcoin topped $4,500 for the first time ever. Elsewhere in the markets, ethereum is up 3.49 percent for the day at $332.65, according to CoinMarketCap. New cryptocurrency bitcoin cash is down 2 percent, however, with prices at $642.95 at press time. A notable strong showing for privacy-oriented cryptocurrency monero today sees its price up over 14 percent, with one token now worth $98. Reflecting continued positivity in the digital asset markets, the market capitalization across all cryptocurrencies is once again at a record high, at just over $155 billion.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Monero Price Up 15% as World’s Largest Cryptocurrency Exchange Prepares Integration

Monero Price Up 15% as World's Largest Cryptocurrency Exchange Prepares Integration

Monero Price Up 15% as World’s Largest Cryptocurrency Exchange Prepares Integration

 

Monero, the world’s second largest anonymous cryptocurrency, is up 22 percent again today, on August 26.

Monero Price Up 15% as World's Largest Cryptocurrency Exchange Prepares Integration

For many years, Monero has been regarded as one of the few cryptocurrencies that is highly legitimate, backed by an experienced and talented development team. It had no pre-sales or controversial mining deals for its miners. The Monero development and community have shown unity since it forked off from Bytecoin, with almost all of its hard forks executed without any contention amongst developers, community members, industry and miners.

Yet, it has struggled to see an increase in its value. It was pushed out of its top 10 largest cryptocurrency spot and was overtaken by Dash, another anonymous cryptocurrency. A large factor of Monero’s struggle in obtaining an active consumer base and trading market has been the lack of support from large-scale trading platforms and wallets.

Dash for instance, despite its controversial pre-sale and negative reputation, was remained as the world’s seventh largest cryptocurrency for many months due to the support from Jaxx and leading exchanges.

This week, Bithumb, South Korea’s leading bitcoin exchange and the world’s largest cryptocurrency exchange, is about to provide the push Monero has long needed. Bithumb is set to list Monero in its cryptocurrency trading platform tomorrow, on August 27. Because it handles around $700 million worth of trades on a daily basis, the integration of Monero by Bithumb is expected to be an immediate and drastic increase in liquidity for Monero traders, users and investors.

Starting August 23, when Bithumb began to accept deposits from Monero traders, the price of Monero surged, even before the exchange fully listed the cryptocurrency. Tomorrow, as Bithumb completes its last phase of integration and opens Monero trading, the price of Monero will likely surge once again.

Monero was able to rise by 22 percent earlier today due to upward momentum supported by Bithumb and optimistic traders in Asia. So far, every cryptocurrency released or introduced by Bithumb to the South Korean cryptocurrency exchange market has seen a drastic increase in value and trading volume. Ethereum, Ethereum Classic, Ripple and Litecoin have all seen rapid increase in value after being listed by Bithumb and Korbit, two largest exchanges in South Korea.

More importantly, the South Korean exchange market and its traders are highly attracted to cryptocurrencies that have special attributes. For instnace, South Korean traders are keen on Ethereum due to its smart contract-based protocol and flexible ecosystem. The anonymity of Monero will likely attract many investors on the Bithumb platform and if it is well accepted by the South Korean market, Monero could make its way back to the top five cryptocurrencies. Already, it has surpassed Zcash and many other cryptocurrencies to become the tenth largest cryptocurrency in the market.

 

Author Joseph Young 12:36 am August 26, 2017

 

Posted by David Ogden Entrepereneur

David Ogden Cryptocurrency Entreprenuer

David https://markethive.com/david-ogden

Maximum Impact Of Blockchain Will Be Felt In Africa, Not In The West, Just an Opinion

Maximum Impact Of Blockchain
Will Be Felt In Africa,
Not In The West, Just an Opinion

 

“Central Banks and Monetary Authorities world over have turned on their antennas to pay rapt attention to the disruption pervading the financial service industries by digital currencies, which are enabled by Blockchain technology,”

said Musa Itopa Jimoh, the Deputy Director, Banking & Payment System the Central Bank of Nigeria CBN, at the first ever Blockchain conference held in Nigeria.  The two-day event which took place at the Civic Centre, Ozumba Mbadiwe Way, Victoria Island Lagos was organized by the Blockchain Nigeria User Group with Chimezie Chuta as national coordinator. Chuta explains that having to reconfigure the prevailing mindset of the majority of participants who see Bitcoin and cryptocurrencies as some MLM and Ponzi schemes was an aspect of the event which required a lot of resources.

However, he is confident that the presentations by the participating Blockchain organizations and the continued effort of his group through educational materials and future events will go a long way in correcting the people’s perception and set the nation on the pedestal of Blockchain revolution.

There is no alternative to the Blockchain

In his opening address, Jimoh emphasized the need for collaboration between Blockchain solution providers and government institutions. According to him, some countries have come out with specific directives and stance on the adoption of the digital currency and Blockchain technology while others are still reviewing their positions to enable them to decide on which way to go. But whether they like it or not, it will just be a matter of delay tactics and being cautious, because all central banks and monetary authorities will eventually and very soon, give legitimacy to the use of Blockchain technology to drive financial services including the issuance of digital currency.

Jimoh says:

“Nigeria’s position is very clear. We cannot stop the tide of waves generated by the Blockchain technology and its derivatives. However the Central Bank has the responsibilities of ensuring price and financial system stability. This is why digital currency issuance becomes a major concern to the central bank of Nigeria. To this end, the central bank of Nigeria has kick started several initiatives and research works to identify the various use cases of Blockchain technology including the issuance of digital currency using the Blockchain technology.”

Jimoh acknowledges the Blockchain Nigeria User Group as being on the right path and poised to raise awareness on Blockchain technology and cryptocurrency in Nigeria. “This event is one of such measures to raise the awareness amongst stakeholders including the regulatory authorities,” he concludes. The keynote speaker at the conference, Dr. David Isiavwe notes that the reality of the world today, particularly in Nigeria, is that the Distributed Ledger Technology (DLT), Blockchain and cryptocurrency are facts that must be confronted.

“We cannot wish this reality away. It is made worse when we realize that we are still grappling with current challenges of e-commerce and other electronic payment systems but technology development and advancements are not waiting. In this dynamic age that we find ourselves, the only mantra to survival as is propagated by the Information Security Society of Africa – Nigeria (ISSAN) is: ‘Innovate or Die!," says Isiavwe.

How To Open Cryptocurrency Exchange: Practical Tips

 

Crypto newbie

The cryptocurrencies boom forced analysts to talk about bubbles, and late "miners" to buy up video cards. Meanwhile, many people have already earned enough money on the trend: someone did it on the appreciating prices, and someone, as in case with nVidia, profited on the growing demand for related issues. There are a lot of debates over cryptocurrencies’ potential, about possible sell-offs, and the time in which the bubble may burst.

However, while the market talks, it’s worth looking around to understand the way to profit on the trend. If there is a demand for cryptocurrencies, it means the trade venues for these assets will be popular as well.  Today, there are already about 200 cryptocurrency exchanges and exchangers in the world. And it is not a limit has been reached yet. So, what if the next stage of the crypto market evolution is the boom of cryptocurrency exchanges. If so, how can we profit on that? Perhaps open your own exchange.

How to open a cryptocurrency exchange

First, you need to resolve a legal issue. It is necessary to obtain a license. This is possible in several ways.

1. It is possible to obtain a Japanese license, but it will cost a lot. Investments may amount to at least $110K, and there is around $30K more for office expenses in Japan.

2. It is possible to register the company in jurisdictions, where there is no legal base for crypto exchange, but at least it’s not banned. It all depends on what you can afford and on available resources, but even with sufficient capital you still need to find a director complying with regulators’ requirements, lawyers who know all the details of licensing process, and much more.  

Secondly, you need to develop the required software.

1. User Personal Account. It’s a profile for client registration and verification, with deposit/withdrawal options available. To write such a program you will need to invest effort, time, and money.  

2. Trading platform. This is a place through which investors and traders can open, close and manage market positions. You’ll also need to think about each nuance, such as the development of gateways, connectors and bridges for platform connection. Writing the platform will consume time and money. There are major vendor lease providers of trading platforms in the world – you can choose, launch, customize and get services for the best of them.

3. Aggregator.  It will allow you to connect new partners, other exchanges and even to become a market maker for some of the tools (e.g. if you create a cryptocurrency/token and want to add it to the list of trading assets at your crypto currency exchange). You must consider that your aggregator needs to process huge data volumes every second. At a rough estimate the cost of such a solution will be impressive, considering the number of expensive specialists and the time spent on development, therefore even large companies prefer not to write software, but to pick something available in the market.

All in all, the scope of work and investments required is considerable. However, there are cases when it’s worth going along a streamlined path rather than searching for your own original way. Where there is demand, there is supply. Even now at the start of this new crypto era some companies already offer the development of turnkey trading floors and exchangers, taking into account customer desires. Such services can considerably reduce your time, efforts, and expenses.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Bank of America Files 9 More Blockchain Patent Applications

 

The U.S. Patent and Trademark Office

has released nine more blockchain-related patent applications filed by Bank of America. Data collected by CoinDesk shows that the applications – which relate to conducting and settling transactions within a payment network – were all filed February 22. To date, Bank of America has filed more than 30 known patent applications related to the technology, including as many as 18 during 2016 alone. Combined, the breadth of the applications suggests that work is being done on blockchain-based payment systems within Bank of America. At the same time, the bank has issued no definitive statements on the subject to date, and it's not clear whether any of the proposed inventions will see the light of day.

Yet past announcements from the bank hint at where some of the intellectual property may come into play. Last September, Bank of America and Microsoft announced a joint initiative aimed at applying blockchain tech to the area of trade finance. Working with Microsoft Treasury, which handles the tech giant's corporate payments and strategic investments, the project is aimed at building a new blockchain-based system to facilitate transactions between the two companies. Still, it remains to be seen whether the project turns into something at commercial scale. And given the pace of patent applications seen thus far during 2016, Bank of America could be pursuing other intellectual property avenues as well.

Bitcoin prices have once more climbed past $4,400 following days of generally sideways movement within the $4,100–$4,200 range. Starting to pick up from around 22:00 UTC yesterday, prices across global exchanges opened the session at $4,362, and had reached a high of $4,420. Prices were again at that level at press time, a rise of 1.33 percent, according to the CoinDesk Bitcoin Price Index. Those figures put prices around $85 short of the all-time high achieved on August 17, when bitcoin topped $4,500 for the first time ever.

Elsewhere in the markets, ethereum is up 3.49 percent for the day at $332.65, according to CoinMarketCap. New cryptocurrency bitcoin cash is down 2 percent, however, with prices at $642.95 at press time. A notable strong showing for privacy-oriented cryptocurrency monero today sees its price up over 14 percent, with one token now worth $98. Reflecting continued positivity in the digital asset markets, the market capitalization across all cryptocurrencies is once again at a record high, at just over $155 billion.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

David https://markethive.com/david-ogden

Standpoint Founder – Bitcoin Asset Class Will Grow Into $2 Trillion Market

Standpoint Founder - Bitcoin Asset Class Will Grow Into $2 Trillion Market

Standpoint Founder – Bitcoin Asset Class Will Grow Into $2 Trillion Market

 

Forget $5,000.

At a time when many are making short-term bets on the price of bitcoin and other cryptocurrencies, one bitcoin bull is going a step further. Ronnie Moas, founder of Standpoint Research, is making the case cryptocurrencies will not only be a decade-long trend, but a viable asset class.

In fact, he's going so far as to call for a massive rise in the market cap of cryptocurrencies. His prediction? The total value of all cryptographic assets, today valued at $150 billion, will soar to $2 trillion over the next 10 years.

And in a new interview, Moas walked CoinDesk through his forecast, explaining how it stems from his fundamental analysis of the capital markets and the broader macroeconomic trends he now sees in place.

The Standpoint founder's view stands in stark contrast to the highly bearish analysis of Peter Schiff, who called cryptocurrency a bubble, a speculative frenzy and a natural Ponzi scheme driven by "just plain greed" last week.

In the broadest sense, Moas sees the current state of the cryptocurrency market as a direct parallel to Silicon Valley during the 1990s, when a massive surge of innovation created new technologies that transformed the way we work and live and ushered in a period of massive wealth creation.

He explained:

"I am not any more concerned with bitcoin being at a record high than Amazon or Google investors were concerned when those share prices jumped hundreds of percent and hit $100 and $200 many years ago. Today, both of those stocks are above $900. The question is not where we are at – it is where are we going? I do not think we are in a bubble."

 

Roadmap to $2 trillion

How does Moas get to the $2 trillion market cap for cryptocurrency in his forecast?

He begins by looking at the $200 trillion that is currently invested in global capital markets today, including all major asset classes: cash, stocks, bonds and gold. Moas, who also does traditional equity analysis, begins his market breakdown with stocks, which he believes are currently overvalued.

According to Moas, three-quarters of the names in the S&P 500 are trading at least 18 times earnings, which is higher than his value threshold of 12 times earnings. He also adds that we haven't had a stock market correction in 20 months.

On the currency front, the U.S. dollar is currently losing 1 to 2 percent per year due to inflation. Moas also points out that the dollar has lost half its value since he was in high school 35 years ago.

 

From a global perspective, where most people don't have access to U.S. dollars, Moas believes the case for cryptocurrency is even more compelling:

"Now, imagine what they think of their own local currencies elsewhere in the world. Imagine you live in Venezuela and you're keeping your money under the mattress. Would you rather leave it there in Venezuelan bolivar or would you rather put it in bitcoin? It's not going to take you very long to make that decision."

Breaking his thesis down further, Moas believes that a conservative estimate is that at least 1 percent of the $200 trillion now tied up in stocks, cash, gold and bonds will migrate into cryptocurrencies over the next decade.

In that case, he says, "Bitcoin could end up with a market capitalization that is more than Amazon and Apple combined."

Under this scenario, that would mean that the current market capitalization of all cryptocurrencies would naturally grow.

And if Moas's market capitalization targets are correct, investors would then receive a 1,250 percent return on their cryptocurrency investments made today.

 

Diversified strategy

But he adds one major caveat to that prediction. Simply, "You've got to be in the right names."

Assuming you accept Moas's basic bull market thesis for cryptocurrencies, how do you know if you are invested in the right "names" in the cryptocurrency space? And, if the market boom in cryptocurrency is analogous to the roaring years of the 1990s tech boom, how can you avoid investing in the next Pets.com?

As Moas frames it:

"A lot of people say there is a bubble out there. I see a bubble when you get down below the top 50 cryptocurrencies. There are more than 800 names right now. In my view, what happens outside the top 50 is irrelevant."

Moas goes on to point out that 91 percent of the nearly $150 billion market cap is invested in the top 20 names and 70 percent is invested in bitcoin and ether alone.

He recommends, for the purposes of portfolio diversification, retail investors should hedge their bets and invest across the top 10 or 20 cryptocurrencies.

In Moas's view, the 800 cryptocurrencies that are now trading are analogous to the 800 stocks that were available on the Nasdaq at the height of the dot-com bubble nearly 20 years ago. While Amazon and Apple and Microsoft emerged to become among the most valuable companies of all time, there were many companies from that time period that died slow and painful deaths.

Or, as Moas more colorfully puts it: "Back then, there were hundreds of pump-and-dump, small-cap junk names just as there are in crypto today. Today, the crypto market is giving you the same signals with names like dash, ripple, litecoin, monero, bitcoin, ethereum, neo, nem, iota and others."

He went on to add that while there are certainly risks involved in investing in cryptocurrency, those risks are, in his view, outweighed by the possibility of 10-to-one or 20-to-one payout to the upside experienced by tech stocks.

 

The bull case

Of all the major cryptocurrencies, though, Moas seems especially bullish in his view of bitcoin. Unless there is a major shakeup in the underlying confidence, he believes that investors are going to want to buy-and-hold for their portfolios for 10 years or more.

Moas points out that there are currently only about 16 million bitcoins that have been issued of a possible total 21 million coins that will be created.

In his analysis, this could lead to tens of millions of people trying to get their hands on just a few million coins.

When asked for a specific price target, Moas summed up as follows:

"At the beginning of July, bitcoin was trading at $2,500. I believe in the next three years you will probably see $15,000 to $20,000 for bitcoin. It could double twice from here in the next 36 months."

 

 

Aug 24, 2017 at 09:00 UTC by Ash Bennington

 

Posted By David Ogden Entrepreneur

DAvid Ogden Cryptocurrency Entrepreneur

David https://markethive.com/david-ogden