Keep Calm And Hodl? CNBC Guest Tells Bitcoin Critic to ‘Piss Off’/more

Keep Calm And Hodl? CNBC Guest Tells Bitcoin Critic to ‘Piss Off’

The mainstream media debate over Bitcoin

as a success or failure approached live comedy this week after a “brawl” broke out between guests on a CNBC panel. In an exchange which ended an edition of the network’s increasingly notorious Fast Money segment, regular contributor and RiskReversal.com editor Dan Nathan told Evercore ISI technician Rich Ross to “go piss off” after he criticized Bitcoin’s performance.

Ross had previously maintained that Bitcoin was a poor investment choice in the past few months due to its near-50% fall this week. Traditional stock investments, on the other hand, had allegedly fared better, with Ross giving the example of Boeing’s 200% gains since 2016. As Zerohedge notes, reproducing the unedited version of the exchange, Ross had failed to note Bitcoin’s annual gains of over 1000% in 2017 alone. Nathan labeled him “glib” to deride it. “You’ve been wrong, so don’t say that I’m glib,” Ross retorted before Nathan weighed in with the fateful remark:

“You don't know what I've done, you don't know what my call is, so go piss off, seriously.”

The episode continues Fast Money’s somewhat bizarre approach to Bitcoin reporting. In December, the segment made headlines for suddenly switching allegiances to become extremely bullish on altcoin Bitcoin Cash. At the time, its dedicated Twitter account began publishing material which strongly criticized Bitcoin, telling respondents to “deal with” the rise of Bitcoin Cash instead. That style of content has since not made a return.

Yale Prof. Shiller Thinks Bitcoin’s ‘Bubble’ Could Actually ‘Linger 100 Years

Yale economics professor and Nobel Laureate Robert Shiller has admitted

in an interview with CNBC Thursday, Jan. 18., that he now “doesn’t know what to make of Bitcoin ultimately” after earlier calling it “the best example of a bubble”. In fresh comments Thursday, several months after he told host Brian Kelly it was Bitcoin’s “story”  not its value that had sparked public interest in it, Shiller told reporters “it [Bitcoin] has no value at all unless there is some common consensus that it has value. Other things like gold would at least have some value if people didn't see it as an investment,” repeating a common narrative that investment in Bitcoin is like the 17th-century Tulip Mania. Though he admitted his uncertainty as to what Bitcoin’s fate will be, Shiller overall remains sceptical,

stating:

“[Bitcoin] might totally collapse and be forgotten and I think that's a good likely outcome but it could linger on for a good long time, it could be here in 100 years.”

Bitcoin’s two-day slump this week has partially recovered to challenge $12,000, making it worth over 160 percent more than when Shiller made his previous bubble claims in early September, 2017.

Chuck Reynolds

Marketing Dept
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How to make smart investments in cryptocurrency

How to make smart investments in cryptocurrency

The price of Bitcoin rose over 1000% in 2017,

meaning every $1 invested turned into $1000 in just 12 months. Bitcoin isn’t done yet, and other cryptocurrencies are now seeing similarly rapid growth. This bundle helps you make the most of this remarkable trend, even with a small initial investment. You’ve probably seen on the news recently that the value of Bitcoin has reached an all-time high. But many other digital currencies are expected to see even bigger growth in the coming years. The Complete Cryptocurrency Investment Bundle shows you how to make money from this trend with five in-depth courses. You can get the bundle now for $24 at the PopSci Shop.

The price of Bitcoin rose over 1000 percent in 2017, meaning every $1 invested turned into $1000 in just 12 months. Bitcoin isn’t done yet, and other cryptocurrencies are now seeing similarly rapid growth. This bundle helps you make the most of this remarkable trend, even with a small initial investment. Through concise video lessons, you learn about the underlying blockchain technology and how to purchase your first coins.

The courses also help you assess the market, store your coins securely, and invest in emerging currencies like Ethereum. The final course even shows you how to earn free coins with Steemit. Along with the video courses, the bundle includes an audiobook, meaning you can keep learning on your way to work.

Chuck Reynolds

Marketing Dept
Contributor

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What Is Blockchain?

What Is Blockchain? 

All of a sudden, blockchain is everywhere.

The technology, which was invented in 2008 to power Bitcoin when it launched a year later, is being used for everything from copyright protection to sexual consent (yes, really).Considering the daily churn of news around blockchain, not to mention the skyrocketing value of Bitcoin and other cryptocurrencies that rely on the technology, you may be wondering what the hell blockchain actually is. It’s actually a pretty simple concept, though things quickly get more complicated the harder you look. With that in mind, here are a few different ways to wrap your head around blockchain, from straightforward definitions to far-reaching metaphors.

How Does Blockchain Work?

To start, here’s the simplest explanation with no metaphors or hyperbole. In the language of cryptocurrency, a block is a record of new transactions (that could mean the location of cryptocurrency, or medical data, or even voting records). Once each block is completed it’s added to the chain, creating a chain of blocks: a blockchain. Because cryptocurrencies are encrypted, processing any transactions means solving complicated math problems (and these problems become more difficult over time as the blockchain grows). People who solve these equations are rewarded with cryptocurrency in a process called “mining.”

If you’ve always wanted to own some cryptocurrency, a new app might be a good way to get your hands.f you own any cryptocurrency, what you really have is the private key (basically just a long password) to its address on the blockchain. With this key you can withdraw currency to spend, but if you lose the key there’s no way to get your money back. Each account also has a public key, which lets other people send cryptocurrency to your account. Information on the blockchain is also publicly available. It’s decentralized, meaning it doesn’t rely on a single computer or server to function. So any transactions are instantly visible to everyone. That brings us to our first metaphor: the public ledger.

Blockchain Is Like a Public Ledger

If you send Bitcoin (or some other cryptocurrency) to a friend, or sell it, that information is publicly available on the blockchain. Other people may not know your identity, but they know exactly how much value has been transferred from one person to another. Many people see blockchain as an alternative to traditional banking. Instead of needing a bank or some other institution to verify the transfer of money, you can use blockchain and eliminate the middle man.

“The Internet of Value”

Building off the idea of a public ledger, another popular way to describe blockchain is as the internet of value. The idea is pretty simple: the internet made it possible to freely distribute data online, blockchain does the same thing for money. Instead of relying on newspapers, television and radio (which are mainly controlled by big corporations), the internet gives everyone a voice—for better or worse. Blockchain and cryptocurrency make it just as easy to transfer money across the world by bypassing traditional middlemen like banks and even governments.So you’re ready to buy some cryptocurrency. Maybe you’ve been reading up on blockchain technology…

Blockchain Is Like Google Docs

Here’s a clever metaphor for blockchain from William Mougayar, the author of The Business Blockchain: blockchain is like Google Docs. Before Google Docs, if you wanted to collaborate on a piece of writing with someone online you had to create a Microsoft Word document, send it to them, and then ask them to edit it. Then you had to wait until they made those changes, saved the document, and sent it back to you.

Google Docs fixed that by making it possible for multiple people to view and edit a document at the same time. However, most databases today still work like Microsoft Word: only one person can make changes at a time, locking everyone else out until their done. Blockchain fixes that by instantly updating any changes for everyone to see. For banking, that means that any money transfers are simultaneously verified on both ends. Blockchain could also be used in the legal business or architecture planning— really any business where people need to collaborate on documents.

Blockchain Is Like a Row of Safes

Here’s another useful explanation from online forum Bitcoin Talk. This one does a really good job of explaining how public and private

keys work:

Imagine there are a bunch of safes lined up in a giant room somewhere. Each safe has a number on it identifying it, and each safe has a slot that allows people to drop money into it. The safes are all made of bulletproof glass, so anybody can see how much is in any given safe, and anybody can put money in any safe. When you open a bitcoin account, you are given an empty safe and the key to that safe. You take note of which number is on your safe, and when somebody wants to send you money, you tell them which safe is yours, and they can go drop money in the slot.

 

After rising from under $1,000 to almost $20,000 in the past year, Bitcoin crashed spectacularly…

Blockchain Is Like DNA

Finally, this one, from Robin Chauhan on Medium, is a little far out, but I like it. Blockchain is a record of transactions, spreading across the internet as more people use cryptocurrencies. Similarly, DNA is a record of genetic transactions and mutations that spread as life expanded across the earth. Both become more complicated over time as our DNA evolves and new blocks are added to the blockchain.

Each blockchain (Bitcoin, Ether, Ripple) is like as a distinct species (human, chimpanzee, etc.). A blockchain can also be forked (like with Bitcoin Cash) to create a competing currency in the same way that two distinct species can share common ancestor. Of course, changes to DNA don’t happen easily—scientists believe it takes about a million years for a genetic mutation to catch on—and building a blockchain isn’t easy, either. The process of evolution and natural selection is a little bit like mining, a complicated series of steps that creates something incredible.

Chuck Reynolds

Marketing Dept
Contributor

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New Debit Card Helps to Unlock Your Digital Currency

New Debit Card Helps to Unlock
Your Digital Currency

The common question you hear from any doubter of digital currencies

and their future in our world is “what is the use case?” Often, people look at Bitcoin and see its shortcomings as a medium of transfer, and use that as their justification for being short digital currencies. Spending Bitcoin or any other digital currency is not currently all that easy. It takes time to convert back into fiat currency, and there is often a large fee. A Singapore-based company Paycent aims to make it easier for buyers and sellers to use their digital currency. Right now they are in the process of releasing the integrated debit card which gives customers the capability to unlock their funds instantly.

Bridging the gap between fiat and digital currencies

The overall goal of the company is to make it possible for mobile and cashless payments to be accepted anywhere. Blockchain is the underlying technology that enables this advancement, and the team has worked hard to bridge the gap between fiat and digital currencies. The new Paycent integrated debit card is the key to bringing digital currencies into our day-to-day life. It has no yearly maintenance fees if the card is active and in use. You don’t need to hold a PYN token to get it. A user will pay only one time fees for card activation and delivery with any digital currency.

Pre-registration for the debit card has started on Jan. 15, and only 20,000 cards will be delivered in this first batch. The selling point for many of the early users of this card will be the low fee of 1.5 percent, paid in PYN tokens, which is much superior to the current transaction fees on most digital currencies. The hybrid wallet along with the debit card is planned to be live in the first week of March and it is currently available for registration on the Paycent website. Once operational, the card will work at more than 36 mln points in over 200 countries. Users will be able to convert any digital currency to fiat in real time basis and can use it via Paycent card at online and offline stores and cash withdrawal at ATMs globally.

More money and better transparency

Paycent has set themselves apart in a few ways. One is the manner in which they are conducting their ICO. Rather than releasing all of their tokens at once, the team at Paycent decided to release them in eight phases. The company says, there are two major benefits to this method. First, it helps the protocol by proving the concept along the way, which would then result in more money being earned. It also increases transparency and aligns incentives within the network better. Users are motivated to buy earlier by giving bonus Paycent tokens (PYN) of varying amounts to each phase.

The ICO commenced in November and has proven to be a success. Phase one of the ICO was successful, with 80 percent of tokens distributed to over 14,000 different contributors. Paycent’s end goal is to help users worldwide enter the cashless world. The true potential of a company like this comes from the fact it can create an infrastructure that users who have never had access to banks will be able to engage with. In this regard, it is an inspiring goal with limitless market potential. The original mission of Bitcoin was to create a new financial system that wasn’t dependent upon any single authority, and this might finally be possible with Paycent.

Chuck Reynolds


Marketing Dept
Contributor

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

Gaming Blockchain Platform Helps Investors Find Best Project to Invest in

Gaming Blockchain Platform Helps Investors Find Best Project to Invest in

The gaming industry is experiencing a significant boom

as emerging innovations are causing people to spend more time on gaming platforms especially with multiple gamers systems. These developments and attractions are playing important roles in placing the gaming industry as one of the most advanced markets, with revenue exceeding $116 bln in 2017.

The bigger stage is opening for the industry with the popularity of decentralized technologies. One of the first who saw the opportunity are the creators of Game Machine.The project can be described as a global open platform where gamers, investors and developers can work together, complement each other and help the whole industry to grow faster. While developing the project team considered all the parties. For gamers, they offer in-game items for their favorite titles. As for the developers, the system will provide them an opportunity to focus on the segments of their target audience, raise funds for products and start an ICO. Also, the valuable project search for investors was simplified. Briefly summarizing, Game Machine unites all the participants of the market.

Analytics for investors

Focusing on the investment opportunities within the industry, a new project Game Machine implements Blockchain technology through its Proof-of-Authority (or Proof-of-Gamer) protocol. One of the best advantages for investors is that Game Machine token holders will be able to sell their tokens to gamers and developers for a better price. They also will get a chance to choose only high-quality products to invest as they can see how many users are really interested in the projects which are located on the crowdfunding platform.

Other benefits that accrue to investors within the project includes the opportunity of being invited to the special club with exclusive big discounts and sales for the majority of crowd sales from crowdfunding platform. Top-tier investors will be able to get a part of all tokens, released by every project. Game Machine already boasts of a working product with more than 60,000 registrations, having more than 40,000 in-game items withdrawn and over 500 mln GMC tokens mined. Hence the release of the Open Beta version which was being focused upon by the Game Machine team for several months. The platform consists of a miner and a store of items for popular games such as CS:GO and Dota 2. Gamers all over the world are showing great interest.

App release and token sale

Game Machine team is focused on releasing its first version of the app for advertisers and also for investors. The mobile version of Game Machine Client for Android is already out and the iOS version is in development now and is scheduled for launch in March 2018. Further, we will see the team set up a product for exchanging tokens and also the creation of an API for the third party resources for the platform. As you see, the Game Machine team is planning a serious work during this year. Also, the project is looking for the developers to join the crowdfunding platform and already has some agreements.

In its currently active token sale which runs until Jan. 31 2018. After the end of the tokensale, Game Machine is going to release its tokens on three grand exchanges. On this very moment project has raised $1.5 mln. The main aim of the team is to take a big segment in the growing game industry market and to unite all the participants.

Chuck Reynolds

Marketing Dept
Contributor

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Tom Lee Says BTC Will Hit $25,000 in 2018, Advises ‘Aggressive’ Buying At Market Low

Tom Lee Says BTC Will Hit $25,000 in 2018, Advises ‘Aggressive’ Buying At Market Low

Co-founder and Fundstat strategist Tom Lee predicted

that Bitcoin (BTC) will hit $25,000 by the end of this year in an interview with CNBC today, Jan. 18. Lee had previously forecasted that BTC would only reach this mark by 2022. The Wall Street strategist told CNBC today that now by 2022 he sees BTC hitting the $125,000 mark. Lee’s predictions comes after a very volatile week in the crypto market, with BTC hitting below $10,000, dipping even lower than it did during the market crash Dec. 22. Just days before the December crash, Bitcoin had hit an all-time high over $20,000. Lee predicts that $9,000, or just below the lows seen this week, will be the price floor for BTC this year. He sees another market dip as an opportunity

for investors:

"We expect bitcoin's major low to be $9,000, and we would be aggressive buyers around that level […] We view this $9,000 as the biggest buying opportunity in 2018."

Lee also offered predictions for several altcoins, forecasting that Ethereum and Ethereum Classic would see about 90 percent growth by the end of the year, and NEO 50 percent. Today, the crypto market began its bounce back, with BTC up almost 15 percent and the top 20 altcoins up as much as 70 percent in the 24 hours to press time.

Bitcoin Backing Firms Feel

the Crypto Crash Pinch

With Bitcoin shedding 50 percent of its value in little under a month,

those firms who vocally rode the wave on the up are now feeling the terrify drop in terms of loss of their own market value. Companies such as Overstock, which has some of its fortunes locked up in the digital currency, as well as Square Payments, which announced plans to allow for some Bitcoin buying and selling, have been hit hard by this crash.

Taking a beating

While the numbers being tracked by these Bitcoin-backing firms are nothing compared to the actual losses being suffered by the cryptocurrencies, they are directly correlated. Square showed a loss of five percent or $90 mln, this week as the company which is led by Twitter’s CEO Jack Dorsey ended with a value of $15.1 bln. Overstock, a longtime supporter of Bitcoin going back to 2014, fell 11 percent ending with a value of $1.8 bln thanks to the roughly $200 mln loss. This latest drop in the crypto market has been put down to the uncertainty emanating from Korea with their apparent bank of cryptocurrencies on the cards. This pressure from regulators also adds teeth to the fears in dealing with cryptocurrencies in major firms.

Renaming regrets

There are also instances where companies who have tried to jump on the Bitcoin and Blockchain bandwagon have found that the wagon is currently in the shop for repairs. A number of firms have changed their focus, tact or simply their name, to profit from the hype and mania around cryptocurrencies. However, the other, ugly, side to this ecosystem is the violent volatility that needs to be stomached. Kodak, perhaps better known for their cameras, fell eight percent. The company has announced plans to offer a cryptocurrency known as KodakCoin at the end of the month, initially sending shares up 60 percent on the day of the announcement. Shares of Riot Blockchain, once a biotech firm dubbed Bioptix, shed 17 percent Tuesday, even shares of Long Blockchain, once Long Island Iced Tea, shed two percent.

Lessons up for grabs

While the future, as it always is, is uncertain for the crypto ecosystem, there are lessons to be learned in this latest Bitcoin ‘death.’ Bitcoin has been dead and buried countless times as its volatile nature is too much for some to take, sending them fleeing. However, it has shown stronger and stronger resistance and ability to bounce back over the years and the crashes. Something that companies that are facing unprecedented dips will need to be aware of. Bitcoin believer Max Keiser explains these movements in a graph he tweeted.. This pattern will repeat all the way to Bitcoin $100,000 and beyond..

Chuck Reynolds


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This week’s Bitcoin crash was all about fraud and regulation

This week’s Bitcoin crash was all about fraud and regulation

Cryptocurrencies have had a rough week:

the value of bitcoin plunged to a mere 50 percent of its 2017 peak, and other currencies, such as Ethereum, Ripple, and Litecoin have seen double-digit losses compared to their heights from last year. Tuesday also witnessed the collapse of BitConnect, an anonymously operated crypto exchange that had been repeatedly accused of running a Ponzi scheme via its proprietary BCC currency.

Taken together, these events may simply act as another reminder of the “volatility” of the cryptocurrency market, which saw bitcoin rise to a peak of $19,783 on December 17th. Bitcoin has gone through multiple crashes before: in spring 2011, in November 2013, and in January 2017. However, this current bubble comes against a new backdrop: a global tide of regulation against the inchoate cryptocurrency industry. On one hand, these regulations may be scaring bitcoin investors into selling their coins now before the full impact of regulation makes itself felt. On the other, it may also be threatening suspect exchanges such as BitConnect, with its own token declining in value by 46 percent between December 17th and January 15th — the day before it announced its closure.

The value of Bitcoin plunged to a mere 50 percent of its 2017 peak

In the United States, regulation has reared its head in the form of the SEC. Last month, its newly formed Cyber Unit pressed charges for the first time against PlexCorps, which was accused of defrauding investors through a questionable initial coin offering, or ICO. Almost a week later, SEC chairman Jay Clayton issued a warning on cryptocurrencies to investors, hinting that the commission would begin monitoring the market more closely for any potential violations of securities laws. The US isn’t the only nation taking a harder line on cryptocurrencies, either: the Chinese government tightened its ban on crypto trading this week, and the South Korean government is planning on implementing a similar ban itself.

This global movement toward harsher regulation has been cited as a major cause of the exodus of value that has gripped cryptocurrencies in the past week. It would also potentially account for BitConnect’s collapse, which came after multiple cease and desist letters from securities watchdogs in Texas and North Carolina. A historic lack of regulation likely contributed to the current bitcoin bubble by facilitating market manipulation and duplicitous trading practices. Even as bitcoin became a household name in 2017, such practices remained common. In November, a Business Insider investigation discovered that “pump and dump” scams — where investor groups artificially inflate cryptocurrency values by orchestrating mass purchases of coins — were “rife” on the US exchange Bittrex. Similarly, Bitfinex, the biggest exchange by daily volume, acknowledged market manipulation on its platform in August, when it revealed that it had detected several accounts engaging in “large-scale manipulation tactics” relating to the Bitcoin Cash currency.

Such manipulative activity could be the tip of the iceberg

Such manipulative activity could be the tip of the iceberg, given that certain critics have even accused Bitfinex of creating Tether, a cryptocurrency pegged to the US dollar, in order to buy bitcoins and artificially inflate the latter’s value. What’s clear is that such disreputable methods as “pump and dump” and “spoofing” are possible because exchanges like Bitfinex are unregulated. In any regulated market, the action of traders such as the infamous “Spoofy” would be illegal. Yet, without the active oversight of the SEC or FINRA, they can be carried in the cryptocurrency market with impunity.

Because market manipulation has helped push cryptocurrencies to dizzy, grossly inflated heights, the recent falls in value have been similarly spectacular. But unlike with previous drops, the newly emerging drive to regulate the cryptocurrency market could hobble a recovery. Assuming that the likes of the SEC and FINRA begin clamping down on fraudulent trading practices, and assuming that these practices were vital to Bitcoin’s precipitous rise, then Bitcoin may very well struggle to climb as quickly in 2018 as it did in 2017. Not only will the parties responsible for manipulative trading be inclined to sell their ill-gotten gains and run, but an increasing number of people will fully realize that the cryptocurrency market is a hive of dubious activity. That said, if greater regulation tamps down disreputable practices and brings the cryptocurrency into the regulatory mainstream, the longer-term trend may only be upward.

Chuck Reynolds


Marketing Dept
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How Much of a Bubble is Bitcoin, Really?

How Much of a Bubble is Bitcoin, Really?

Even those who’ve never invested in Bitcoin before

are starting to keep a closer eye on its progress. That’s because the currency has recently soared in value, causing the people who own Bitcoins to get excited and wonder how much more the worth could climb. There are even instances where people with no former interest in cryptocurrency feel now is the time to start becoming involved in the Bitcoin boom. But some onlookers wonder, will the bubble burst, and if so, how long from now?

Bitcoin shows many signs of a classic bubble

Derek Thompson, who covers economics for The Atlantic as a senior editor, notes it’s hard to determine if Bitcoin is a bubble because it’s an entire industry. However, he thinks Bitcoin's recent patterns are akin to other famous bubbles that burst — such as the dotcom bubble. Bitcoin is a topic on everyone’s tongues and minds. Investors make huge life decisions based on Bitcoin worth, and they often make impressive predictions about what’ll happen in the future. People also made those actions in association with other things that went bust, leading individuals to caution history will repeat itself. They say the only thing they’re not certain about is when it’ll happen.

Bitcoin volatility is a constant

One of the reasons why people are buzzing about Bitcoins is because their value has skyrocketed so much. At the beginning of 2017, a Bitcoin was worth $1,000. Now, its value is $5,000. Then, there was a point in September where the per-coin value was nearly $5,000, but it tumbled to $3,200 only two weeks later. For a broader perspective though, it’s necessary to realize that altcoins — any cryptocurrency that’s not Bitcoin — also fluctuate. That reality could theoretically contribute to worries that Bitcoin is a bubble. They might assume that Bitcoin is as volatile as all the other cryptocurrencies, but compiled market statistics actually indicate it’s the most stable.

Even so, some people who intelligently track the market expect volatility. Dave Birch, founder of Consult Hyperion, a leading consultancy in the field of electronic transactions, has even said, “One does not invest in Bitcoin, one gambles in Bitcoin.” He backs up that belief by advising people to only invest as much as they’re prepared to lose. If individuals actually did that, the possibility of a bursting Bitcoin bubble wouldn’t be so frightening. Instead, many people have moved all their investments over to the Bitcoin world.

Anonymous transactions and lack of spending options
cause raised eyebrows

A characteristic that attracts many people to Bitcoin is the ability to send and receive money without revealing personal information. They also love the lack of government regulation and feel that by investing in the Bitcoin market, they have more financial freedom. However, Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, calls the idea of private Bitcoin transactions questionable. He doesn’t believe the world’s governments will allow the lack of personal identification information associated with Bitcoin to persist forever and brings up how in the US. The IRS has already demanded some user records associated with the Coinbase website.

Furthermore, Chainalysis is a company that specializes in helping identify the people who own the digital wallets used to store Bitcoins. The discovered information reduces fraud and money laundering. Dalio also mentions the high amount of speculation and the lack of spending options for Bitcoin owners. He believes the concept of Bitcoin could work because of that speculation and that people don’t have enough ways to use the Bitcoins they own. For those reasons, he agrees there is a Bitcoin bubble, and that’s the only logical conclusion considering the rapid rise of the Bitcoin’s value.

Market control in the hands of a small number of people

Another thing that could make the Bitcoin bubble burst — or at least make investors panic — is the fact that approximately 1,000 people hold about 40 percent of all Bitcoins. The individuals tied to large amounts of the cryptocurrency are often referred to as “whales.” If they choose to suddenly sell a lot of Bitcoins to take advantage of high market prices, other Bitcoin owners notice. There are also fears the whales could coordinate actions between themselves and work together to make the market fluctuate. Because the laws surrounding cryptocurrency are not concrete, there are uncertainties about what kind of punishments they might face for doing that.

Cryptocurrency founder says Bitcoin is not a bubble

Although it’s not hard to find plentiful online resources asserting there’s no doubt Bitcoin is a huge bubble soon to burst, some people provide alternative views. One of them is Ben Davies, co-founder of another cryptocurrency called Glint. He thinks people are not looking at the bigger picture of Bitcoin, and that’s causing them to incorrectly see it as a bubble.

Davies also thinks the way people often compare Bitcoin to the bubble associated with tulip bulbs doesn’t hold water. He notes that although the prices of tulips soared then experienced a sharp downturn, that historic event is a “poor comparison. He asserts the price increases associated with tulips were not similar to the cryptocurrency phenomenon. However, even Davies admits Bitcoin “has all the hallmarks and antecedents that are the precursor to a bubble.”

This is just a sampling of why so many people strongly believe Bitcoin is a gigantic bubble that’s a substantial concern. To avoid getting into the kind of trouble that could potentially ruin their lives, investors should continue studying the market regularly and seeing how the Bitcoin value fluctuates. Besides, it’s smart to have a plan in place for if or when the bubble bursts. Many of the people who were the most severely affected by previous bubbles that popped were those who didn’t stop to think “What if?” and figure out what to do if the worst happened.

Failing to do so could mean a person is ignoring history.

IBM And Maersk Start Promised Blockchain Supply Chain Company

IBM and Danish transport and logistics company Maersk announced Jan. 16 that they are teaming up to create an as-yet-unnamed Blockchain-based shipping and supply chain company. The goal of the venture is to commercialize Blockchain for all aspects of the global supply chain system, from shipping to ports, and banks to customs offices. Blockchain technology is uniquely able to provide special control for the logistics industry, since it can replace tedious and insecure paperwork with secure digital records that are also transparent.Maersk’s chief commercial officer Vincent Clerc, who will serve as chairman of the newly formed board for the joint venture, was quoted in the official announcement

saying:

“The potential from offering a neutral, open digital platform for safe and easy ways of exchanging information is huge, and all players across the supply chain stand to benefit.”

The company had promised to make delivery of the new project by the end of last year. The offering is the fulfillment of a year’s worth of planning by both companies, each of whom have invested in Blockchain in various other ways as well. The joint venture is hoping to start offering their software solutions by Q3 2018.

Chuck Reynolds


Marketing Dept
Contributor

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

Cryptocurrencies Are Doomed to Fail, But There’s Money to be Made, Says an Investor Officer

Cryptocurrencies Are Doomed to Fail, But There’s Money to be Made, Says an Investor Officer

The traditional diversified portfolio of investments

will have a host of assets in varying risk brackets, but for a traditional investment, officer cryptocurrencies could seem too speculative to be part of any portfolio with a wealth preservation focus. The caveat is that while not all cryptocurrencies are guaranteed to stick around forever, there are still profits to be made by a savvy investor that chooses a long term winner early on.

Money to be made

An investment officer from Credo Wealth, Deon Gouws, is personally interested in digital currencies, but as chief investment officer for a traditional financial institution, is understandably nervous.

He says:

"Most cryptocurrencies we see launching today are likely to fail, but there’s still a lot of money to be made if you can identify the long-term winners successfully and early.”

Mike Novogratz, a well-known investor who has been bullish on Bitcoin for some time now, has made statements indicating agreement. He has called the asset a bubble, but one where there is money to be made.

Novogratz said:

“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”

Technology over profiteering

As the cryptocurrency space has evolved, prices have risen astronomically with the influx of interest from the mainstream market. Those who have joined the space in recent times have seen the likes of Bitcoin build to as high as $20,000. However, those who have joined this space in their droves have clearly done for the profiteering that has taken place, and the promise of more to come. This then means that there is more of a diluted core of users who are in it to see the technology thrive and flourish.

In turn, this not only adds to the speculative nature of the market but also to the bubble-nature that Novogratz refers to. The entire crypto space may not be as prone to a big collapse, or a catastrophic failure like some flimsy ICOs, but there are still concerns for those looking for pure profit.

Bubble territory

The real issue in the market being flooded with people in it to make a quick buck is that the potentially revolutionary technology can be pushed towards bubble technology. It is not the product that is prone to being in a bubble. It is the way in which it is used or perceived that leads to bubbles being formed and popped. The dot-com bubble has shown a lot of similarities to Bitcoin’s rapid growth, but that does not mean dot-com businesses or digital businesses, are always going to be bubbles. And the same applies to Bitcoin.

In the dot-com boom, people were entering the market to make money, and they were throwing money at anything with .com on the end. It is happening today too, with Bitcoin and Blockchain, but that does not mean a bubble is a definite. If people continue to flood the cryptocurrency market intent on only making money off it, rather than appreciating it as a new wave of technology, then Gouws’ opinion may be spot on. People will enter have a direct say in which way something like this moves, with their speculative investing. There needs to be a concerted push to appreciate the technology, and adopt it for mainstream uses if Bitcoin, and other cryptocurrencies, are to be a long term success.

Chuck Reynolds


Marketing Dept
Contributor

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

Inside the Korean crypto exchange that grew so fast the government raided it

Inside the Korean crypto exchange that grew so fast the government raided it

Korea has gone from an afterthought in the cryptocurrency markets

to one of its major hubs in a matter of months. Crypto trading has grown so feverish that the government raided the country’s major exchanges to check their books—and to cool down the red-hot trading activity. The lynchpin in the Korean market is an exchange called Bithumb, which has raked in cash as its customers have swelled in the millions. It regularly accounts for over 80% of Korea’s ether-won trade. Business was so good that the exchange struggled to develop its infrastructure to keep up with demand.

The signs of Bithumb’s success are apparent in its offices. It occupies a 10-story building on Teheran-Ro, a boulevard lined with glittering towers housing the Korean offices of global titans like Google and Amazon. The thoroughfare is named after the capital of Iran, Seoul’s sister city, and has become the premier address for technology conglomerates, startups, and venture capitalists in the Korean capital. Inside Bithumb’s headquarters, visitors pass by burly security guards before they are allowed entry. Employees get plenty of perks, like three to four flat screens on each desk, and fridges filled with energy drinks, teas, and alcohol. Little is known about Bithumb’s founder, Kim Dae-Shik, although Korean newspapers reported that the firm has recruited a former head of Alipay in Korea, Jung Won-Shik, to take the CEO role. Bithumb has not responded to queries from Quartz.

At a data center that Bithumb rents space from, the firm houses millions of dollars worth of top-of-the-line servers. “They have so much money to buy the latest and greatest stuff,” said a person who worked with the exchange and asked not to be identified. “They can throw money at servers. Spending $40,000 to $50,000 on a server is not a problem for them.” Bithumb has a major challenge to accommodate the millions of customers rushing to trade cryptocurrencies on its platform. Customers were trading minute-by-minute as the famously volatile cryptocurrency markets fed their mania. Bithumb has close to 100,000 users trading on its platform at any given minute, said the person Quartz spoke with. “It’s a fact that so many South Koreans are trading on a minute-by-minute basis,” says the source.

Bithumb’s growth follows Korea’s rising importance to the cryptocurrency markets. Over the summer, trading volumes in Korean won exploded on cryptocurrency exchanges; at one point the won was the most popular currency pair in the ether and Ripple markets. These are two cryptocurrencies worth over $150 billion, both jostling for second place in the ranking of the most valuable cryptocurrencies on the market, after bitcoin.

Bithumb’s struggles to scale its operations mirrors the problems facing exchanges around the world. Often set up by founders without a background in developing serious financial platforms, cryptocurrency exchanges are struggling to build systems that can withstand the rapidly growing demand for access to the crypto markets. “They more or less got lucky in terms of growth,” said the Bithumb source. “And they know how to throw money at the problem.”

Large exchanges in the US like the Winklevoss twins’ Gemini, or the startup with “unicorn” valuation status, Coinbase, suffered regular outages and interruptions all last year. These platforms use homegrown trading and security systems that are a far cry from the sophisticated software that run the world’s major exchanges, and they now are cracking under the strain of millions of new users.

Security—or problems enforcing it—is another theme common to the world’s biggest cryptocurrency exchanges. Reuters has estimated that over $4 billion worth of cryptocurrencies have been stolen from exchanges since 2011. For Bithumb, the security concern is heightened by the fact that hackers linked to North Korea are suspected of targeting its funds. In June, it reported a loss of cryptocurrencies now worth over $80 million. The South Korean intelligence agency said it suspects North Korea was behind the heist, in an attempt to get around financial sanctions, according to the BBC.

If last week’s raids on Korean exchanges were the start of a nationwide crackdown on cryptocurrencies to protect ordinary investors, it hasn’t quite played out that way. In the aftermath of the raids, the justice minister announced an imminent ban on cryptocurrency trading, only to be publicly rebuffed by citizens. An online petition opposing a ban amassed more than 200,000 signatures, crashing the presidential Blue House’s website, according to Reuters. “Please don’t take away our happiness,” the petition reads. One petition that garnered 30,000 signatures called for the justice minister to resign. The government issued a statement yesterday trying to calm Korea’s crypto-hungry citizenry, assuring them that no ban would take place without further consultation.

Exchanges like Bithumb are currently not accepting new deposits from customers. But one observer of the Korean cryptocurrency scene, who goes by Crypto Korean on Twitter, said he expects deposits to be reinstated soon. “People are super upset because they lost shitloads of money,” he said. “The backlash was too strong, so I think [exchanges] will commence [deposits] again later this month.” For Bithumb, that would be a welcome return to business as usual. “Tech-wise, they are one of the better ones. They are not clueless, and they have money so they can scale,” said the source. “That tells you how much Koreans like their crypto.”

Chuck Reynolds


Marketing Dept
Contributor

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