Samsung’s now making chips designed for cryptocurrency mining

Samsung’s now making chips designed for cryptocurrency mining

An ethereum mining rig in South Korea.

  Samsung’s semiconductor business is booming, with the company recently overtaking Intel as the world’s biggest chipmaker. But the South Korean firm is not resting on its laurels, and is currently looking to expand into the buzziest contemporary market for processors: cryptocurrency mining.As reported by TechCrunch, Samsung has confirmed it’s in the process of making hardware specially designed for mining cryptocurrencies like Bitcoin and Ethereum. A spokesperson for the firm told TechCrunch: “Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. However we are unable to disclose further details regarding our customers.”

These chips are known as ASICs, or application-specific integrated circuits. ASICs are processors that have been specially designed for a single computational task, as opposed to the multi-purpose processors we use in computers and phones. As the valuation of cryptocurrencies has shot up, so has the demand for these sorts of chips. In the case of bitcoin, the currency is created by solving mathematical problems, with these calculations also maintaining the integrity of bitcoin transactions. As more bitcoins are mined, these math problems become increasingly difficult. This has led to miners moving on from using normal integrated graphics cards, to GPUs designed for gaming, and now to specially built ASICs.

It’s not clear exactly what sort of products Samsung will be making, but according to reports from Korean media, it’ll be working with Taiwanese firm TSMC. The company currently supplies chips for a number of firms set up solely to mine cryptocurrencies, including the China-based Bitmain. Meeting the demand for these chips has added around $350 million to $400 million to its quarterly revenue, says TSMC. That’s nothing to be sniffed at, but it’s a small sum compared to the $69 billion revenue generated annually by Samsung’s chip business. Mining cryptocurrencies is buzzy, but that doesn’t mean it’ll be extremely profitable for those selling the silicon shovels.

Samsung made a special chip for mining cryptocurrency

Maybe don't expect GPU prices to drop anytime soon, though.

Samsung has a chip designed specifically for mining cryptocurrency.

Rather than repurpose a GPU to do the dirty work, Samsung made an Application Specific Integrated Circuit (ASIC), which is a specialized processor that is more efficient at mining than, say, an NVIDIA 1080 card. The company has entered into a distribution agreement with an as-of-now anonymous Chinese partner for distribution. As TechCrunch notes, this is significant for at least one reason: This gives the Korean company a way into the Chinese ASIC market, where local firms dominate. It's too early to tell what sort of impact (if any) this could have on Samsung's bottom line, or how it could affect cryptocurrency and China's local players.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

UK: Cryptocurrency Trader Robbed ‘At Gunpoint’, Amount Stolen Unknown

UK:
Cryptocurrency Trader Robbed ‘At Gunpoint’, Amount Stolen Unknown

Four masked robbers have broken into the house

of a cryptocurrency trader in Moulsford, Oxfordshire and forced him to transfer all of his bitcoins to them “at gunpoint”, The Telegraph reports Sunday, Jan. 28. According to The Telegraph, this is the first case of cryptocurrency robbery in the UK. The criminals entered the house of a crypto trader and forced him to transfer his entire Bitcoin stash. The exact amount of bitcoins stolen has not yet been specified. Fortunately, the incident did not cause any serious injuries to anyone. The police immediately launched an investigation into the case, however, no arrests were made as of press time.

The police have also asked for help from local citizens:

"Officers are particularly interested in speaking to anyone travelling through [Moulsford] on the A329 Reading Road between 7.30am and 10.30am on Monday who has Dashcam footage or anyone with mobile phone footage.”

Due to their relatively anonymous nature, cryptocurrencies are becoming an increasingly popular target for robberies. Back in December 2017, Cointelegraph covered another case: the managing director of the cryptocurrency exchange EXMO Pavel Lerner was kidnapped in Kiev by an group of unidentified people. Fortunately, Lerner got out safely just two days later, albeit having to pay a ransom of $1 mln in bitcoins. Another robbery has taken place in neighboring Russia in mid-January, in which a locally famous cryptocurrency blogger was deprived of $425,000 worth of bitcoins. The latest news shows that cases of Bitcoin robbery aren’t limited to Russia and surrounding countries, as even the citizens of UK can be targeted by the criminals.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Marketing.
Interested or have Questions, Call Me, 559-474-4614

Fork Fail: US Government Claims Bitcoin Cash Is ‘Original’ Bitcoin

Fork Fail:
US Government Claims Bitcoin Cash
Is ‘Original’ Bitcoin

A US government institute has claimed Bitcoin Cash (BCH)

is the “original” Bitcoin while Bitcoin itself (BTC) is a “fork” in a surprising official research into cryptocurrency. In a document titled “Blockchain Technology Overview” from the National Institute of Standards and Technology under the US Department of Commerce, authors Dylan Yaga, Peter Mell, Nik Roby and Karen Scarfone claim that “technically,” the perception that BTC is the genuine version of Bitcoin is incorrect. “When SegWit was activated, it caused a hard fork, and all the mining nodes and users who did not want to change started calling the original Bitcoin blockchain Bitcoin Cash (BCC),”

they write.

“Technically, Bitcoin is a fork and Bitcoin Cash is the original blockchain. When the hard fork occurred, people had access to the same amount of coins on Bitcoin and Bitcoin Cash.”

The document makes for curious reading at a time when the cryptocurrency industry remains awash with propaganda and marketing activities from BCH and BTC representatives alike. Confusion for new users in Bitcoin has increased following July’s hard fork due to some major resources in the industry, notably Roger Ver’s Bitcoin.com, controversially allying with BCH.

More recently, two scandals involving BCH, mainstream news outlet CNBC and major US exchange Coinbase further dented BCH’s reputation. The US government document nonetheless appears unfazed by both the events and the nature of Bitcoin’s hard fork itself, continuing on to provide descriptions of other cryptocurrencies. Litecoin, authors say, is a “complement to Bitcoin,” while Ethereum Classic is underlined as the original version of “more popular” Ethereum. Last Week, ratings agency Weiss also caused a stir when it delivered its first cryptocurrency ratings, giving Bitcoin a ‘C+’ and Ethereum a ‘B.’

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Marketing.
Interested or have Questions, Call Me, 559-474-4614

How blockchain could kill both cable and Netflix

How blockchain could kill
both cable and Netflix

Blockchain technology, powered by nodes of peer-to-peer computers

around the world, is on the rise. So can we expect decentralized entertainment applications built on blockchain to replace streaming services like Netflix or Amazon and be the final death knell for Cable? Video production studios have already seen a lot of disruption recently. Websites like Youtube and Twitch have created a mass market for user-generated content, stripping the cable networks and studios from their positions as the sole creators of mass-market video content. Yet, despite the rise of these mega-websites, most high quality scripted entertainment content today, still comes via a largely centralized model. Studios and networks (now expanded to include streamers Netflix and Amazon) fund the development of content, and the content follows an orderly approach to distribution – from the studio to the end user along one of the pre-defined channels: cable or broadcast or mobile device or website.

Blockchain has the power to fundamentally disrupt the entertainment industry because it brings out a completely new, decentralized model for content distribution. In a blockchain, computers all over the world act together in a peer-to-peer network to work on some task — there is no central server or authority. Today Netflix and Cable still rely on the idea of “centralized” aggregation and distribution. Content creators must get past some number of “gatekeepers” and strike business deals with the network, which then puts the content on a server and distributes it over the air, via coaxial, or more recently, over the internet directly using CDNs (Content Delivery Networks like Akamai or Amazon CloudFront). Decisions about what content is offered, when it’s offered, the price, and the distribution route are still very proprietary and hierarchical.

In a decentralized world, no single website or authority would have a say over what content is to be distributed and how it will reach the “last mile.” No website would be able to block specific content. With decentralized apps (Dapps) for entertainment, whether it’s for live streaming or on-demand video, thousands of computers around the world would act as broadcasters in a mesh network that is not hierarchical. These “super nodes” would solve the last mile problem by broadcasting the signal to computers that are geographically nearby. This will be particularly effective in countries that don’t have lots of presence from existing CDNs.

A number of new crypto projects have cropped up that use either existing blockchains or completely new blockchains as infrastructure for decentralized video streaming. Some of these are optimized for ingesting and compressing content to make it available, such as LivePeer, built on the Steem blockchain, and Viuly, built on Ethereum. Some are application level tokens for streamers and influencers, such as Stream Token and YouNow/PROPS, both on Ethereum. Spectiv VR is focused on the advertising model and making sure content creators get a larger part of it, particularly for VR content. And LBRY and my company, Theta Labs, are building new blockchains/protocols to support third-party DApps for entertainment, esports, and more. Not only could these blockchain projects completely disrupt the distribution world because they no longer require centralized architectures, they can also disrupt the Netflixes of the world and make the idea of channels on cable completely obsolete. What is a channel but an aggregation of curated content over a well-defined distribution network?

Here are a few ways that a fully decentralized blockchain based entertainment network might disrupt the industry:

  • Free Up Content Creators. Content creators could create shows and make them available over a decentralized platform instantly – no need to go pitch a studio or try to get Netflix to put you on their system. No more gatekeepers that have to approve your content.
  • New Channels. New “channels” could emerge in a completely decentralized way. You could envision channels for esports, live events, fantasy, sci fi, news, etc. These channels could be set up by anyone and joined by content creators.
  • Advertising and Free Content. Free content could even disrupt the traditional TV advertising model (which sites like YouTube are also following) by using tokens on these networks. The new blockchain video projects usually provide coins or tokens that advertisers can use to buy exposure on these decentralized channels. They can specify that those coins go directly to the content creator without having to a middleman take a big chunk of the revenue — a large departure from existing practices where the middleman gets the biggest chunk.
  • Paid Content. As for paid entertainment or the subscription model, viewers could use the new tokens issued by decentralized content networks to subscribe to particular channels or to pay a particular content creator. This could replace cable on-demand and give viewers unlimited choice of what can be seen “on-demand.” HBO and other subscription networks recently released their own apps so you don’t need a cable subscription to watch them. The next HBO may be a completely decentralized network that is not tied to cable at all!

Conclusion: Watch out.

Technology changes have always impacted the entertainment industry. While the internet has created new ways to consume content, the creation and distribution of high quality shows has, for the most part, still been dominated by a small number of players, studios, TV networks, cable providers, and aggregators like Netflix. This hasn’t led to the democratization of content that was the promise of the internet.

Blockchain technology has the ability to fundamentally disrupt the entertainment industry by breaking that pseudo monopoly, replacing the centralized gate-keepers with a peer-to-peer network. Many of these projects will be going live towards the end of this year, and we can expect to see rapid growth of the new players in 2019 and 2020. Just as it took Netflix a number of years to displace Blockbuster and video rental stores as the dominant way to consume on-demand entertainment, it may take a number of years before the new decentralized approach becomes the dominant trend. Look to the 2020s to be the decade of blockchain in entertainment.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

Bank-based blockchain projects are going to transform the financial services industry

Bank-based blockchain projects
are going to transform the financial services industry

Cryptocurrencies are constantly evolving,

with popular currencies such as Bitcoin and Ethereum maintaining their popularity despite recent market corrections. At the core of both technologies is the cryptographically secure digital ledger known as the blockchain. It’s a digital ledger where cryptocurrency transactions are recorded chronologically and publicly. Indeed, as the popularity of cryptocurrencies has grown, so has the banking industry’s interest in blockchain for fintech, with an increased and focused push on bank-backed blockchain projects. Some of the largest projects underway include the IBM-backed Hyperledger Fabric project, the Utility Settlement Coin, and R3’s blockchain consortium, signifying a growing acceptance in institutional policy to support blockchain growth

How does it work?

Currently, banks transact with each other by creating agreements, as one would when purchasing an item from a store. A common example would be a bank agreeing to purchase a specific amount of stock for a specific cash price from another. This process, often cumbersome and slow, takes up to several days and incurs the risk that one party may default or renege on the agreement. This period of time, known as settlement, is such an issue that an Oliver Wyman report identified it as costing the financial industry anywhere from $65-$80 billion a year.

Blockchain projects have the potential to reduce, and possibly eliminate, settlement times due to their digital nature, ensuring the timely and secure processing of these operations. Other uses for bank-backed blockchain projects would include secured global currency exchange rate speeds and increased transaction security, among other benefits, eventually allowing for an overhaul of the banking industry, replacing traditional back-office clearinghouses and other outdated mediums that exist between asset sellers and buyers.

IBM’s Hyperledger Fabric

The IBM-backed Hyperledger Fabric project is a trade finance platform aimed at international payments utilizing blockchain, with seven of its largest supporters including Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit. IBM’s blockchain platform will run through the IBM Cloud, allowing for interconnectivity between all parties in a particular secure transaction. This project is designed to be highly scalable, allowing for multiple entrants to easily integrate into the entire financial supply chain process through the secure blockchain, allowing for an unprecedented amount of transaction transparency. In mid-October, IBM revealed a partnership with blockchain startup Stellar, spreading the influence of the Hyperledger Fabric project to global levels unseen before.

The Utility Settlement Coin

Six of the world’s largest banks, Barclays, CIBC, Credit Suisse, HSBC, MUFG, and State Street, have announced backing of the UBS and Clearmatics-spearheaded Utility Settlement Coin, joining other industry heavyweights who have already pledged their support for the project, including BNY Mellon, Deutsche Bank, and Santander. The UTC specifically tackles the use of blockchain technologies by traditional banks, utilizing it as a tool for more efficient transactions. Additionally, the UTC addresses the issue of currency backing, with the UTC being backed by cash at a central bank, preventing default and credit risk. These safeguards play a huge role in why the UTC has so much pledged interest, allowing banks to take part in the relatively young digital currency ecosystem. The UTC is definitely a sign of fintech adoption in the banking industry, ensuring the eventual wide-scale use of blockchain technologies on a standardized level across the globe.

R3

Blockchain consortium R3 is another player in the bank-based blockchain space, raising $107 million in May, with four of its backers being Temasek, SBI Group, Bank of America Merrill Lynch, and Intel, with further support pledged from industry heavyweights such as Wells Fargo and ING. One of R3’s primary projects has been the development of their Corda platform, with future plans for an infrastructure network specifically geared toward financial institutions to build their own ledger-based applications and services, implying that these banks currently have and will grow their own teams of blockchain developers. R3 is also focused on governmental acceptance of blockchain, with buy-in from these institutions signifying a drastic shift in terms of governmental compliance and usage of such fintech.

By presenting credible potential resolutions of current-day issues, these projects represent large-scale efforts by the banking industry to fully embrace and integrate blockchain into their current infrastructures. Industry consumers and participants alike should be excited to see how the industry develops in the next coming months.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

Japan cryptocurrency exchange to refund stolen $400m

Japan cryptocurrency exchange
to refund stolen $400m

Coincheck will reimburse 260,000 customers who lost holdings of NEM currency

A Japan-based cryptocurrency exchange will refund to customers

about $400m (£282m) stolen by hackers two days ago in one of the biggest thefts of digital funds. Coincheck said it would use its cash to reimburse about 46.3bn yen to the 260,000 people who lost their holdings of NEM, the world’s 10th-biggest cryptocurrency by market capitalisation. On Friday, the company detected an “unauthorised access” of the exchange and later suspended trading for all cryptocurrencies apart from bitcoin.

Coincheck said its NEM coins were stored in a hot wallet instead of the more secure cold wallet, which is kept offline, because of technical difficulties and a shortage of staff capable of dealing with them. The resulting 58bn yen loss exceeded the value of bitcoin that disappeared from MtGox in 2014. The Tokyo-based bitcoin exchange collapsed after admitting that 850,000 coins, worth around $480m at the time, had disappeared from its vaults.

MtGox’s high-profile demise failed to dampen the enthusiasm for virtual currencies in Japan, which became the first country to define cryptocurrencies as legal tender in April last year. Nearly one-third of global bitcoin transactions were denominated in yen last month, according to the specialist website jpbitcoin.com. As many as 10,000 businesses in Japan are thought to accept bitcoin, and bitFlyer, the country’s main bitcoin exchange, saw its user base pass the 1 million mark in November.

Many Japanese people, especially younger investors, have been seduced by the idea of strong profits as the economy has seen years of ultra-low interest rates offering little in the way of traditional returns. On Sunday, major newspapers in the country labelled the management of virtual currencies at Coincheck as “sloppy” and said the company had “expanded business by putting safety second”. Local media said the Financial Services Agency was expected to take action against Coincheck, which calls itself “the leading bitcoin and cryptocurrency exchange in Asia”.

Japan started to require cryptocurrency exchange operators to register with the government last April. Pre-existing operators such as Coincheck have been allowed to continue offering services while awaiting approval. Coincheck’s application, submitted in September, is pending. Politicians meeting last week at the World Economic Forum in Davos issued warnings about the dangers of cryptocurrencies, with the US Treasury secretary, Steven Mnuchin, relating Washington’s concern about them being used for illegal activity.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

 

Cryptocurrency Rating Agency Says Ethereum Is Better Than Bitcoin And Ripple — Should You Trust It?

Cryptocurrency Rating Agency
Says Ethereum Is Better Than Bitcoin And Ripple — Should You Trust It?

After gaining some recognition on Wall Street,

cryptocurrencies have attracted the interest of asset rating agencies. Last week, Florida-based Weiss Ratings released a report that assigned grades to dozens of cryptocurrencies based on a number of metrics, like risk, technological innovation, and other fundamentals. There were a couple of surprises to the report. One of them was that none of the cryptocurrencies rated received an “A.” Another surprise was that Ethereum received a higher grade than Bitcoin and Ripple.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don't own any cryptocoins or tokens.] How trustworthy are Weiss ratings? Investment and cryptocurrency experts are divided. “Very trustworthy,” says David Drake, a crypto asset expert. “It is the first step for more ratings to come out on cryptocurrencies.”  

“The mere fact that futures exchanges and rating services have finally legitimized investment in cryptocurrencies after nine years of their existence is a strong sign of trend maturation,” adds Elliot Prechter, Head of Computer Analysis, Elliot Wave. “It is reminiscent of the timing of gold legalization, which occurred at an interim peak in gold that saw it fall in half thereafter.”

“Weiss has been around for a while and appears to be respected,” says  Al Zdenek, president of Taust Sollus Wealth Management. “From their past history, they appear to tend to come out with new rankings or ratings in different areas of the markets first.  The current ranking of cryptocurrencies seems to be the latest one.”

Still, Zdenek is skeptical of Weiss ratings.  “With the cryptocurrency industry being so young and with so many companies vying for space, I am not sure what it means to rank these companies,” he notes. “The speed of change in this space renders any ranking irrelevant after a few weeks.  I would caution investors or followers of this rating to be very careful if you are basing investing on it. In any new industry, there tends to be many that enter but few survive.  It would not surprise me if Bitcoin was not even being ranked in future years. 

Remember Wang Computers?”

You certainly don’t want to remember Wang — if you purchased its shares at all-time highs. And you won’t want to remember Bitcoin, Ethereum, and Ripple in a couple of years from now, if big banks and big governments crush them.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

How Chinese Bitcoin Buyers Are Getting Around Government Ban

How Chinese Bitcoin Buyers Are Getting Around Government Ban

Chinese citizens are still investing in Bitcoin

and the cryptocurrency market despite the government’s heavy crackdown. In September 2017, Chinese cryptocurrency exchanges BTCC China, Huobi and OKCoin were ordered by the government to shut down their businesses. At one point, executives of the three cryptocurrency exchanges were prevented from leaving the country, due to a government investigation into local cryptocurrency exchanges.

Three months later, in December of 2017, China’s three largest cryptocurrency exchanges relocated their businesses to Hong Kong. BTCC China, Huobi and OKCoin rebranded to BTCC, Huobi Pro and OKEx, respectively. They intended to address the rapidly growing demand from Hong Kong-based investors. Shortly after their move, the three trading platforms started to see daily volumes from Chinese investors grow exponentially. Somehow, Chinese investors were managing to circumvent Chinese trading restrictions by using Hong Kong-based exchanges. How is this possible?

In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions.

But, unlike China, Hong Kong has a substantially lower supply to meet the growing demand. While China is home to major miners like Bitmain, Hong Kong does not produce much Bitcoin and other cryptocurrencies. As such, premiums in the Hong Kong cryptocurrency market increased, surpassing even that of the South Korean market. On January 18, when the global average price of Bitcoin was around $11,500, Bitcoin was being traded at above $13,000 on Huobi Pro.

Krystal Hu, a Hong Kong-based finance journalist, noted that traders outside of China have also started to take advantage of the arbitrage opportunity presented by the Hong Kong market. For instance, on January 18, the price of Bitcoin on Coinbase was $11,800. Purchasing Bitcoin from Coinbase and selling it on any Hong Kong-based market would have generated $1,200 in profit.

Chinese Government Concerned

Hong Kong’s exchanges have also integrated widely-used fintech applications in China such as Alipay and Tencent’s WeChat Pay. Alipay is a $60 billion fintech app that is used by more than 50 percent of mobile users. WeChat Pay, which was only used by seven percent of mobile users in 2014, is now being used by more than 40 percent of mobile users in China.

The integration of the two fintech payment networks has increased the accessibility of Hong Kong-based cryptocurrency OTC exchanges for Chinese investors, easing the process of investing in the cryptocurrency market. To prevent Chinese investors from buying digital currencies, the Chinese government and the People’s Bank of China (PBoC), have asked local banks to disclose any suspicious transactions linked to Hong Kong-based markets. However, even this action will not be able to prevent Chinese investors from accessing Hong Kong-based markets, due to apps such as Alipay and WeChat Pay.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

 

Twitter Reacts to Crypto Fear-Mongering at Davos WEF

Twitter Reacts to Crypto
Fear-Mongering at Davos WEF

While cryptocurrencies have been a talking point

at previous World Economic Forum conferences, they have come to the fore in Davos this year. Following a breakout year which saw Bitcoin rise to an almighty high of $20,000, alongside the massive growth of other altcoins, it’s hardly surprising that one of the major talking points at WEF would be the future of cryptocurrency. With financial industry leaders coming together at the most important annual event on the economic calendar, media outlets took their chance to ask the top minds for their two cents worth on the current and future prospects of virtual currencies. Cointelegraph is currently attending the summit in Davos and has reported continual resistant perceptions towards cryptocurrencies.

These views stem from a lack of a regulatory framework for virtual currencies which has made some of the world’s prominent banking and financial institutions hesitant about investing and supporting cryptocurrencies. UBS Chairman Axel Weber said as much in an interview with Bloomberg, saying his firm would not recommend cryptocurrency adoption or investment to its clients until there is clarity on future regulatory action. As per usual, the vibrant and feisty cryptocurrency community has been watching developments at Davos keenly, and there has been plenty of backlash in response to any FUD or untoward comments about cryptocurrencies.

Twitter hits out at Davos FUD

Full Tilt Capital Partner Anthony Pompliano was scathing in his analysis of the prevailing sentiment floating around in Davos towards Bitcoin. The former Facebook product and growth manager suggested that statements made by economist Joseph Stiglitz that Bitcoin was still used for shady purposes actually has the opposite effect of driving people away from

cryptocurrency adoption.

Joseph Stiglitz, well-known economist, is bragging to the Davos crowd that Bitcoin is used for "secret use cases" & that fiat currency is superior. My theory is that this type of fear-mongering actually drives more adoption of Bitcoin & cryptocurrencies

Max Keiser, host of the Keiser Report on RT, also touched on the wave of negativity around Bitcoin in Davos, but said it was too late for big financial industry players to try to stop what he described

as a ‘revolution.’

Those at Davos threatened by Bitcoin maybe could have thwarted the revolution 5 yrs ago. But now it’s too late. Go home guys, your time is over.

Renowned American investor Bill Gross suggested that the rise of Bitcoin and cryptocurrency has signaled a move away from centralized institutions governing and controlling money. People seem to be putting their trust in technology over

government-run establishments.

Bitcoin’s rise may reflect, for better or worse, a monumental transfer of social trust: away from human institutions backed by government and to systems reliant on well-tested computer code..

Twitter users CryptoWilson highlighted more negative sentiment towards cryptocurrency, sharing a video of French President Emmanuel Macron speaking in favor of regulatory crackdowns by the

International Monetary Fund on cryptocurrency.

Macron 'triggered by Bitcoin' at Davos: "I am in favor of the IMF having full competence over the whole areas that escape regulation: bitcoin, cryptocurrencies, shadow banking […] which can trigger crises."

Can’t be ignored

Setting perceptions of sentiment aside, the truth of the matter is that the financial world can no longer turn a blind eye on cryptocurrencies. They are very much a central point of this year’s WEF and understandably so. As the 68th US Secretary of State John Kerry told Cointelegraph earlier this week at the summit, the sheer value of capital that has been poured into the overall cryptocurrency market has made it impossible to ignore. Coinmarketcap currently has the current total market capitalization at $559 bln- a steady number after a month of wild market volatility.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

Telegram’s ICO: Give us $2 billion and we’ll solve all of Blockchain’s problems

Telegram’s ICO:
Give us $2 billion and we’ll solve
all of B
lockchain’s problems

The encrypted messaging company’s plan is bold, but short on details.

“Long Island Iced Tea” becoming “Long Blockchain” this is not. In planning a $2 billion initial coin offering that’s meant to launch this month, messaging service Telegram isn’t just looking for a quick boost in value. If the dollar amount weren’t enough to get your attention, consider the ambition behind it: Telegram is promising investors who buy into its home-grown cryptocurrency that it will solve some of the blockchain world’s thorniest problems.

The ICO space is already on fire, and while Telegram aims to be the richest ever, plenty of other companies have tallied nine-figure crypto fund-raising rounds, with one, called EOS, on pace to raise far more than a billion—all founded almost entirely on dreams of blockchain systems that doesn’t exist yet. But investors’ excitement about Telegram’s offering could be more than froth. Telegram already has more than 100 million users on its encrypted messaging service. Such a clientele also makes a lot of sense for censorship-resistant applications like decentralized file storage, anonymous browsing, and cryptocurrency micropayments—all of which appear in a leaked white paper describing the so-called Telegram Open Network (TON).

Delivering on the promises in the white paper will require solving some of the most vexing challenges facing cryptocurrencies. The blockchain holy grail is a system that runs cheaply and efficiently at a large scale while remaining truly “decentralized.” Telegram says TON will do this, but it hasn’t said how. The white paper should have a disclaimer that reads “all of the technical things we said this will do are completely unproven and have not been subject to outside scrutiny,” writes Charles Noyes, an analyst and trader at Pantera Capital, a cryptocurrency-focused investment fund.

The explanations of the system’s monetary policy and governance system also leave much to be desired, according to Christian Catalini, a professor at MIT’s Sloan School of Management and an expert in the economics of cryptocurrencies. There are no details clarifying how tokens will be distributed, how the network will make decisions and handle disagreements, and how much control the company will maintain over those processes, he says. Such issues cut to the heart of what it means to have a decentralized currency. In the case of Bitcoin, arguments over how the network should evolve led to a “hard fork” that split the blockchain in two and still threaten to tear the community apart.

The bottom line is that although Telegram’s blockchain dream may make sense at first glance, many cryptocurrency experts will be skeptical until the company clarifies how it intends to solve some big technical and economic challenges. If the company’s fund-raising efforts come to fruition, it will at least have plenty of cash to invest in trying to figure it all out.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614