Saturday, December 5, 2020

Tag: Ethereum

The Young Russian Math Genius Behind the #2 Cryptocurrency, Ethereum, and His Plans for a ‘Democratizing World Computer’ – (Vitalik Buterin)

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from Russia Insider:

Cryptocurrencies and blockchain technology were meant to liberate the oppressed, bank the unbanked and democratize countries with opaque authoritarian governments. Whether or not the crypto sector has actually achieved these goals remains a topic of debate, but it is fair to say that a surprising number of crypto startups, initial coin offerings and blockchain companies have either missed the mark or proven to be outright scams.

CRYPTO SEA CHANGE? Soros, Rothschild, and Co Flock to Cryptocurrency

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Soros, Rothschild, and Big Institutional Investors are Entering Bitcoin Market

by JP Buntinx, News BTC:

The cryptocurrency industry has always attracted speculators and market makers. Institutional investors have not shown much of an interest in Bitcoin until very recently. Slowly but surely, the tide will turn in favor of all cryptocurrencies. Financial moguls, including George Soros, the Rothschild family, and others, now have their sights set on Bitcoin. It makes for an interesting development, albeit the potential impact has yet to be determined.

HODL! The Crypto Sell-off Storm Will Pass… The Data Tells The REAL Story!

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by SGT, SGT Report.com:

I just read this cogent, insightful analysis from my friend Jean-Claude (it makes me feel well traveled just to say his name), and I wanted to share it with you.  It’s GOOD news for crypto HODL’ers, so here goes…

Loved the interview with Craig. Great job! He made a really good point regarding the futures market. Even if they could take the upper hand with the futures, “They just can’t roll them out fast enough to follow the massive buying interest that can quickly move to other coins”. It is not a feasible/sustainable strategy in my opinion. Time will tell if Clif is correct about them shooting themselves in the foot. 

Ok so take a look at this technical chart for bitcoin:

Bitcoin has completed this ABC re-tracement pattern MANY times before and there was no Futures involved at the time. I am not convinced the futures are having the effect they wanted – but i’m keeping a close eye on it. As with previous instances, the ABC retracement is a buying opportunity. Once, the C is completed, we will never see those prices again. Same was true at 5k, 3k, 1k, 800$ etc.  See chart below.

But the really big story in the above technical chart is the “Massive buy volume” candle at the bottom of the chart. As Craig would say, this is not the shoeshine boy and the taxi driver buying bitcoin. This is big money coming in buying hand over fist. This is happening while exchanges and local BTMs are deliberately bottlenecking the simpletons from getting in on the dips. Coinbase and many other exchanges have limit orders in place and will not let you buy your desired quantity. Local BTMs in Ottawa are charging 45% premiums tonight as i am writing this email!!!  See snap shot below.

So really, at 10k bitcoin, if you want to hold one in your wallet today it will still cost you 14 500$. That is the same thing that happens to silver when it flash crashes and the premiums skyrocket in the “real world” (not in the fake paper game world). You’ll remember it was impossible to buy physical silver at 12$….

Also, another thing to note is that Bitcoin, in just looking at the bitcoin/usd chart for the last 3 years, will show you that it has corrected every year between the 4th and 15th of January. This too, was happening when no futures markets were around. Follow this ling to see the charts. So again, i’m still keeping a close eye on the futures but I don’t think the have a major role to play in this current retracement. 

Knowing and understanding all this gives me the intestinal fortitude to not only HODL but to also “try” best they will let me to buy the dips and to lower my dollar cost average. 

Like Craig and you Sean, i also am a BIG fan of Silver and continue to hold physical as a hedge to my cryptos. 

Love you guys. Keep up the great work!

Jean-Claude

The Primary Difference Between Ethereum And Bitcoin: A Beginner’s Guide

from Quora

Today’s hype surrounding Bitcoin, Ethereum, cryptocurrency, and blockchain technologies rivals the dot-com bubble in the 90s. There is a lot of money pouring into this space, and it doesn’t seem to be slowing down anytime soon.

Unfortunately, while the masses may be able to say, “Yeah, I’ve heard of Bitcoin,” a large percentage of people still aren’t quite sure what it is—and are even more confused about Ethereum.

If you’re even remotely interested in this space, consider this your beginner’s guide.

Bitcoin

The easiest way to define Bitcoin is to call it a “digital dollar.” That’s really all it is—minus all the formal regulations that come with a bank (which is what makes it such a disruptive concept). It’s not a technology. It’s not a company. It’s your money, held in a digital form.

Anyone can create an account to buy and sell Bitcoin through websites like Coinbase. The price of Bitcoin then fluctuates based on supply and demand. However, now people are beginning to convert their Bitcoin into what are called “tokens,” which companies issue during an ICO, or Initial Coin Offering, which allows people to invest in a company by purchasing tokens with their Bitcoin. Based on the supply and demand of those tokens, their price (just like a share of stock after a company holds an Initial Public Offering, otherwise known as an IPO) goes up or down. These tokens operate on a secondary market, separate from the rise and fall of Bitcoin’s market as a currency.

Some people buy Bitcoin because they want to store their money somewhere other than a bank. Some buy Bitcoin as an investment, believing that its price a few months or years from now will be substantially higher than it is today. And some people purchase Bitcoin as a means of investing in companies that raise money through an ICO, since equity in those companies cannot be purchased with traditional currency. You can only purchase tokens with Bitcoin or Ether, which is Ethereum’s cryptocurrency.

Ethereum

Ethereum is another cryptocurrency, and one many people see as potentially overtaking Bitcoin as the dominant coin in the market.

In any economy, currency is relative. Since Bitcoin has been the leading coin since the beginning, the price of every other “altcoin” (and there are a lot of them) is measured against Bitcoin. Take Litecoin, for example. It is a currency that has its own market and holds its own merit, but while Bitcoin is priced at over $3,000 per, Litecoin currently sits around $45 per. So, while it has its own value, it is by no means a market leader.

What makes Ethereum different is its technology, not the fact that it’s yet another cryptocurrency. Ethereum’s coin value is referred to as “Ether,” and just like Bitcoin is bought and sold, and used by investors to buy into ICO opportunities.

The difference between Ethereum and Bitcoin is the fact that Bitcoin is nothing more than a currency, whereas Ethereum is a ledger technology that companies are using to build new programs. Both Bitcoin and Ethereum operate on what is called “blockchain” technology, however Ethereum’s is far more robust. If Bitcoin was version 1.0, Ethereum is 2.0, allowing for the building of decentralized applications to be built on top of it.

In a nutshell: it’s great for innovation.

Furthermore, there is heavy support behind Ethereum’s technology in what is called The Enterprise Ethereum Alliance. This is a super-group of Fortune 500 companies that have all agreed to work together to learn and build upon Ethereum’s blockchain technology—otherwise referred to as “smart contract” technology. In this case, “smart contracts” mean that demanding business applications can automate extremely complex applications.

What has so many people—including me—excited about Ethereum’s technology is its potential to impact IoT projects and processes. It’s by no means a perfect technology yet, but it has absolutely opened the door for all sorts of unique innovations. For example, my firm, Chronicled, recently worked with a 3D-printing company, Origin, to develop a ‘smart tag’ for sneakers and luxury goods that could guarantee their authenticity. This was done leveraging Ethereum’s blockchain technology.

All in all, and if you’re as curious and excited about this space as I am, the major difference between Bitcoin and Ethereum is their separation of roles—and the fact that they are aiming at parallel but different goals. This article on the topic summed it up perfectly, by citing that early adopters are beginning to see the separation as such: “Where Bitcoin is disrupting currency, Ethereum is disrupting equity.”

Read More @ Quora.com

Why Governments Can’t Stop Bitcoin: Atomic Swaps & Decentralized Crypto Exchanges

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from SmaulGld:

Crypto currencies are decentralized products traded largely on centralized exchanges. Cryptocurrency proponents note that an advantage of cryptocurrencies like bitcoin and litecoin is that reliance on or trust in a third party is not required to transact. Centralized exchanges, however, themselves may make it hard to open an account or may place restrictions or ban the withdrawing of funds or cryptos. Centralized exchanges can also be be hacked or closed by governments. Thus, centralized exchanges may run counter to one of the advantages of transacting in cryptocurrencies.

Centralized exchanges provide places for price discovery to take place. On a centralized exchange the operator of the exchange buy and sells its crypto inventory on behalf of its users. The potential for abuse exists, especially absent regulation. A centralized crypto exchange can operate a fractional reserve system of trading and credit user accounts with crypto currencies that may or may not exist at the exchange. The exchange may rely on the knowledge that many account holders may not withdraw their crypto currencies. The possibility of this type of practice most likely was one of the reasons for China’s decision to close crypto exchanges.

Regulated centralized exchanges, however, hold promise as a way of integrating the entire crypto currency space with the existing financial system. In “Crypto Currencies Fiat Strenghteners or Killers?” we noted that solutions like tenx and others that allow for a variety of crypto currencies to be brought onto Visa cards so that they may be spent worldwide.

Fidelity Investments recently provided its nearly 70 million customers with an integration option whereby they could access their coinbase accounts on their Fidelity dashboards. Coinbase accounts as of this writing were at 10.5 million. If crypto currencies are to become fiat strengtheners, heavily regulated exchanges are necessary to track transactions and collect taxes.

Enter Decentralized Exchanges

Decentralized exchanges don’t require users to provide indenitfying information and their servers reside in different locations. A decentralized exchange holds no assets or customers funds and therefore there is nothing to sieze or central location to shut down. Using a decentrazlized exchange users can buy and sell crypto currencies with other users on the platform or off platform in person. Decentralized exchanges make it extremely difficult to track transactions and collect taxes.

Currently, the volume of crypto currency trading on centralized exchanges is vastly greater than volumes trading on decentralized exchanges. With the closing of the Chinese cryptocurrency exchanges, however, decentralized exchanges have seen an increase in trading volumes.

The number of decentralized exchanges are proliferating. Here are just a few of them:

Local bitcoins
Shapeshift’s Prism
Bitshares
Open Ledger
Ether Delta
Coinfeeine

Priced in Fiat or Bitcoin?

Crypto detractors say that Bitcoin and other cryptocurrencies derive their value from the ability to convert into fiat currency to purchase goods and services. Some go as far as to say that this makes cryptos themselves an extention of debt based fiat currencies. If cryptos inevitably become fiat strengtheners with full integration into the banking system, that point of view has validity.

If however, governments crack down on crypto currencies and don’t embrace centralized crypto currency trading, increased trading may occur on decentralized exchanges and the crypto ecosystem may instead of pricing cryptocurrencies and tokens in fiat pairs, price them only in Bitcoin or Ether.

Atomic Swaps

Atomic swaps allow users to by-pass even decentralized exchanges and transact with each other, even if the transaction involves different cryptocurrencies. Atomic cross-chain trading allows users to trade cryptocurrencies on different blockchains. For example atomic swappers holding alt coins like Litecoin can trade with holders of Bitcoin (or vice versa) at an agreed ratio (currently about 75-1; just like the gold silver ratio). Atomic swaps can occur using digital signatures that act as a functioning escrow that prevent one party from sending coins to anther party and not receiving the bargained for swapped coins in return.

Developers are currently testing atomic swaps. Charlie Lee, creator of Litecoin, recently tweeted his success in an atomic swap involving Bitcoin and Litecoin.

 

Read More @ Smaulgld.com

CRYPTOS: Bubble, or Here To Stay? US Bitcoin Exchange Coinbase Hits 10 Million Users

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from Zero Hedge:

After two (and soon three) “generational” market crashes, Joe Sixpack may have lost interest in the stock market (or at least in single names, the transfer of bagholder rights from institutions to retail investors via ETFs is doing just fine), but when it comes to chasing torrid, upward price momentum, US retail investors are doing their best frenzied Chinese housewife impression now that they have discovered the next big bubble thing, and it’s called bitcoin. And nowhere is America’s sudden infatuation with cryptocurrencies such as bitcoin, ethereum, litecoin and all other “coins” which can make (or break) a hedge fund’s annual return in days if not hours, more obvious than on Coinbase, the US bitcoin exchange, which has just hit a remarkable 10 million registered users, all of whom are there for just one thing: to trade, but mostly buy, crypto currencies.

The San Francisco startup has seen tremendous growth in 2017, adding thousands of users per day and handling increasing levels of trading volume. Last month, CEO Brian Armstrong announced that the company had raised $100 million during its latest funding round, giving the company a valuation of $1 billion, making it first “bitcoin unicorn” according to Cryptocoinsnews. A few weeks later, following the latest burst higher in bitcoin, Coinbase has surpassed 10 million registered users. In the last three weeks of August, the bitcoin exchange added an astonishing 800,000 users as the bitcoin price briefly rose above $5,000. According to data from the Coinbase website, the exchange and wallet service has also recently surpassed $20 billion in total volume.

While many bitcoin veterans have panned Coinbase for its simplistic approach to trading (no limit orders, no shorting, etc) and exorbitant fees, some actually enjoy the minimialist, if expensive, experience: one user on reddit, btcltc77, referred to the exchanges as the “McDonald’s of Bitcoin banking.”

While many bitcoin veterans have panned Coinbase for its simplistic approach to trading (no limit orders, no shorting, etc) and exorbitant fees, some actually enjoy the minimialist, if expensive, experience: one user on reddit, btcltc77, referred to the exchanges as the “McDonald’s of Bitcoin banking.”

Read More @ ZeroHedge.com

THINK BITCOIN ISN’T GOING HIGHER? Moscow Stock Exchange Welcomes Crypto-Currency Trade

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by Kenneth Rapoza, Forbes:

Got Bitcoin? You can soon trade digital currencies against paper currency on the Moscow Stock Exchange. If you’re a qualified investor, that is. In doing so, Russia would be the first stock exchange to make crypto-currency a new investable asset. They’re not there yet. But wheels are in motion at the chief regulator of the Russian stock exchange.

Russia’s Deputy Minister of Finance, Alexei Moiseyev, told Rossiya 24 on Tuesday that the exchange regulator will only allow for qualified investors to trade in crypto-currency in order to avoid large money laundering operations. Qualified investors in Russia need to have at least six million rubles in personal assets or 200 million rubles for investment firms.

“We really need to be able to track deals and transactions in these currencies,” Moiseyev told Kommersant.

Not that putting it up on the exchange would stop Russian money laundering or payment for illegal services in digital money. But the move in Russia this week indicates that the country is going full steam ahead in adopting block chain technologies to build up its know-how and national usage of digital money. Tuesday’s announcement by the Finance Ministry official marked a significant change in the views of Russian regulators from just a year ago.

“Recognizing the extraordinary popularity of crypto-currencies among Russian users, some of the Russian regulators are lobbying a permissive rather than a prohibitive approach to the new technology,” says Anar Babaev, co-founder of ICOBox in Moscow. “They are cautiously moving towards adopting new laws to embrace blockchain and make it a national priority,” he says. ICOBox helps companies with standardized tools for conducting the ICO process, which is like the IPO of the crypto-currency and the blockchain developers world.

Everyone is trying to get their heads around how this works, and where to install the sprinkler systems in case this bitcoin-inspired party ends in a blazing inferno.

Russia has gone from total rejection and strict enforcement policy against the issuance and circulation of crypto currency, to moving towards legalization of them with its admission to the city’s central trading floor. Russia’s exchange is small, trading under a trillion dollars daily and making it the smallest of the BRIC exchanges.

Russians are some of the most savvy crypto-currency developers worldwide. Vitalik Buterin, a Russian born programmer who was educated at the University of Waterloo, BlackBerry’s home turf, created Ethereum, a two-year old block chain-based computing platform that has its own digital currency called ether. That and bitcoin are the two biggest digital currencies in Russia.

Read the rest @ Forbes.com