10 Dec

Schrödingers Bitcoin

Bitcoin is dead, writes the Süddeutsche Zeitung. Au contraire, however, means BTC-ECHO. Meanwhile, Morgan Creek’s Digital Capital is looking for a stupid guy who takes his million-dollar bet. The ECHO KW50 opinion.

Bitcoin died as his Hodlers are blinded, says Victor Gojdka of the SZ in a BTC rant disguised as commentary. The mother of all crypto currencies, who congratulated Gojdka on her tenth birthday in November, failed to keep her many promises of salvation. Instead of finally recognizing this reality and waking up from the dream of exploring the lunar landscape in the Lambo, the Bitcoin community does not lose the excuse to continue hatching:

Crypto trader always finds some excuse for Bitcoin’s infirmity:

Once an American star crypto trader got angry at Bitcoin and caused panic. Read more about it: https://www.onlinebetrug.net/en/crypto-trader-review/ Recently, it has been said, the struggle of two major players in the encryption business has shocked investors.

In fact, many consider the debacle surrounding Bitcoin ABC and Bitcoin SV as one of the reasons why the encryption market is in trouble. For example, a certain Victor Gojdka was the protagonist of the Zürcher Tagesanzeiger on November 22:

“Two dimensions of Bitcoin are sabotaging their factory – since the beginning of the year, Bitcoin has lost almost 70% of its value. A power struggle in the realm of cryptic currencies has also triggered uncertainty.

After all: Gojdka admits that “one or the other encrypted currency” has a chance of survival; at least “as long as it is useful in everyday life”. Bitcoin, however, would be one of the first manifestations of a new technology like Netscape, the forgotten web browser of the then still young Internet. According to this, the cryptographic community is as blinded as the first geeks who thought that the Internet was the next great technological revolution.

Phillip Horch discussed here that BTC is still alive despite the beating of the bear.

Bitcoin bags S&P 500, bet?

Meanwhile, Morgan Creek Digital Assets continues to rely on BTC – literally. The investment company bets a million U.S. dollars that its encryption index (77.4% Bitcoin, 11.1% Ethereum, the rest distributed among eight Altcoins) will beat the S&P 500 in the next ten years.

The idea was inspired by Warren Buffet, who in 2007 bet that the S&P 500 would perform better in ten years than a selection of Protégé Partners hedge funds – and he was right. Morgan Creek is still looking for an opponent. This shouldn’t be too hard to find, given the many well-off cryptoskeptics, right?

Anthony Pompliano, co-founder of Morgan Creek Digital Assets, told the CNBC:

“Many people can look at this and think we’re bullish in Krypto – but you have to look at the activities we’re dealing with. Even public actions are not exactly at their historical peak.

Pompliano not only bets on BTC, but also predicts that the killer app for Krypto will come from Facebook of all places:

“I bet Facebook develops the most used encryption product.”

Pompliano tweeted in response to a cynical post by The Block founder Mike Dudas. He considered a blockbuster job ad from Facebook with cynical words:

“A fantastic job for professional prestige without the risk of having to deliver.

26 Nov

This is how gold became debt money – Can this happen to Bitcoin?

“Those who do not know the past are forced to repeat it,” said the Spanish philosopher George Santayana in the 19th century. It is important to know some basic features of the history of money. This is why today we are dealing with an important but relatively unknown interface in money history: How could it happen that a pure gold currency became a monetary system of gold-backed promissory notes? Why was the long-prevailing precious metal cover softened in the end and above all: This time our journey through time takes us from the fading Middle Ages to the modern age and ends with the Bitcoin, specifically: the Lightning Network.

Could this also happen to digital gold, the Bitcoin formula?

In the fading High Middle Ages towards the end of the 15th century, the monetary system became increasingly unstable. After more than 300 years of economic prosperity, the princes of Europe apparently lost their temper. Many sovereigns, however, exaggerated with the regular renewal of the metal coins of that time. The only form of tax was the regular exchange of “old” into “new” money. In many regions this was exchanged at a ratio of ten to eight: for ten old coins, eight new ones were obtained. In this way the money remained in flux and the princes made a profit of 20 percent. Read more about Bitcoin formula: Is The Bitcoin Formula a Scam? Beware, Read our Review First

When the sovereigns began to exchange money in ever worse proportions, about six to ten or even four to ten, the people no longer accepted the money that had become almost worthless. There were calls for new, more valuable money. The solution was the so-called “eternal penny” and precious metals, which in many places were increasingly traded as currency.

The monetary system of that time was strongly regional and its characteristics were somewhat different in each region. However, it is clear that the first gold coins of this epoch were minted in Italy in the 13th century. From there they spread, just like silver coins, bit by bit all over Europe. Crusades in the East and later the discovery of America in the West also opened up new sources of gold for Europe, which further boosted people’s greed for gold.

Why did gold become paper money?

The advantage of the precious metal currencies gradually establishing themselves was obvious: it consisted in the intrinsic value of the money earned. But the increasingly popular form of money also had disadvantages: On the one hand, it was impractical to spend because gold was not only very difficult to divide, but also complicated. To pay smaller sums with the precious metal turned out to be difficult. On the other hand, the money supply of gold could not be inflated at will. To finance wars, for example, this turned out to be a disadvantage. Paper money had better characteristics: It was easier to divide it into smaller units (and thus represented a better unit of account and a better medium of exchange, two other important core functions for money), it was easier to transport and, due to its gold coverage, it was as good a value store as gold. Originally paper money was only a receipt for the possession of “real” money, i.e. precious metals.

23 Nov

The news spy: A curious Exit-Scam

This is an unusual case even for the crisis-ridden crypto community: After the exit scam of the South Korean ICO Pure Bit, the founders show themselves purified and now want to compensate their victims.

It sounds like the news spy plot for a bad thriller

After the founders of the Pure Bit crypto exchange collected about 30 million US dollars in ether at the beginning of November, the news spy decided against the promised foundation and instead donated 13,000 ETH instead. The founder closed all social media groups and left the unsuspecting victims with the message “I’m sorry”. But that was not all. After only two weeks, the news spy founder apparently changed his mind and wanted to repay the stolen ether.

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New Korean exchange Pure Bit just pulled an exit scam claiming 13,000ETH from its investors as we speak. Kakao channels are emptying and the site has been pulled.

This is why we can’t have nice things. Karma comes back hard when you screw this many people over.

Then the turnaround
It is true that the case had caused little stir in this country. In South Korea, however, Pure Bit called all major media as well as the investigating authorities into action after the exit scam. This circumstance, as well as the sheer height of the stolen property, now seems to have moved the founders of the ICO to their 180-degree turn. As the news platform BlockchainROK announced via Twitter, the founder made a statement in the course of public pressure on 15 November. In it he shows himself purified and announces the exit of the exit:

The wording of the statement reads like this:

“This is Pure Bit speaking. First of all, I would like to apologize to everyone who was affected by the ICO. Since 5 November I have collected 16,000 ETH and not opened a crypto exchange as promised. I threw all my customers out of our social media chat groups and disappeared without a message. This has had a negative psychological and financial impact on investors.”

and further:

“I made an unforgivable mistake that cannot be undone, blinded by money. Less than a day has passed and I have already begun to suffer from feelings of guilt. Although it cannot be compared to the plight of the investors, I also felt a considerable guilt. I sincerely apologize to all of the ICO’s investors who were affected by the incident.”

It is unclear whether the founder, driven by remorse, rowed back or collapsed under broad public pressure. Investors should nevertheless be pleased. Pure Bit’s memory of one of the most curious exit scams in recent history is probably the only thing left of it.

27 Oct

ICOs: The end of an era? The Future of Security Token Offerings (STO)

You wouldn’t have expected that from Civil: This week the Blockchain project had to declare its ICO a failure. Despite the recent partnership with Forbes, the Blockchain journalism platform was unable to reach the minimum investment target (softcap) of eight million US dollars. If one of the few substantial ICOs of these days can no longer even earn a single-digit million amount, then the question arises whether ICOs in their current form have not abdicated.

In addition to all the air numbers, there are also blockchain projects that are really innovative and serious. Just a year ago, these blockchain projects could easily crack a softcap of 10, 20 or 30 million US dollars. Even obvious scams penetrated these areas. Now, after the bursting of the ICO bubble, the self-confidence of the blockchain projects is on the ground. The communication model of a Donald Trump has not worked for a long time. Too often investors have heard sentences like “We are the greatest” or “Nobody is as innovative as we are” from ICOs. The ICO hubris was caught up by reality: it was not delivered, the capital has started to retreat.

The 90-percent cryptosoft

The fact that ICO investments have declined is not bad per se says onlinebetrug. Due to the higher demands on the part of investors, fewer and fewer projects are managing to sell their tokens and list them on the stock markets. The flood of pointless tokens is thus contained and the market becomes more professional. This is a healthy development, albeit painful for many cryptosoft investors. Nevertheless, a collapse of around 90 percent of the ICO market points to a severe crisis in the ICO sector, there is no doubt about that.

This crisis is particularly evident in promising blockchain projects that are now barely able to achieve a relatively low soft cap by the end of 2017. Civil stands here for many failed ICOs who failed in the second half of 2018 despite a good team, serious partnerships and a demanding use case.

Is an ICO still worthwhile at all?

Quite a few blockchain companies therefore ask themselves whether they should still carry out an ICO at all. Moreover, marketing costs have long since decoupled. Expenditure is rising all the time in order to desperately attract attention from investors. The former promise of collecting tens of millions with little effort is history.

The hope now lies in a change in the entire ICO sector. Some blockchain start-ups prefer to wait and hope for a replacement of the term Initial Coin Offering and the emergence of Security Token Offerings (STOs). If security tokens can be presented in a regulated environment and with newly created trust, there will be many block-chain companies that will again actively consider issuing tokens.

From ICO to STO
The original basic idea of an ICO is ingenious and will prevail sooner or later. ICOs are the future of corporate financing, but they will probably no longer be called ICOs. They will mainly be security tokens that will replace pseudo-utility tokens. In contrast to ICOs, STOs are the more honest option when it comes to collecting capital for a company. The market will be determined primarily by institutional players, just as it is in the regulated financial sector. In isolated cases, there will be utility tokens again. In contrast to today’s utility tokens, however, these will assume a function in a truly decentralised network. There will be commercially successful cases in which more than a handful of people will use utility tokens for their intended purpose – not trading.

For the time being, however, the big money will flow, at least in the next few years, into security tokens and the tokenization of real assets – assuming regulatory foundations. Correspondingly, companies and investors are eagerly awaiting the regulatory authorities’ go-ahead.

21 Oct

Numerous blockchain options

The Japanese technology company Sony wants to expand its digital rights management system with the Blockchain technology. In this way, information on rights to written works is to be managed.

Sony has already come out several times as a Blockchain fan. The company already worked together with IBM on a blockchain-based education platform in the summer of last year. In April of this year, Sony even filed a patent concerning the use of blockchain technology for the administration of user rights. Now the company wants to use the security advantages of the technology to permanently manage the rights to written works.

Sony wants to extend digital rights management with Blockchain

The project is being developed jointly by Sony Music Entertainment Japan and Sony Global Education, as the company announced on 15 October from its website. There, Sony also explains why blockchain technology is currently the focus of the company’s development:

“Blockchains create networks in which programs and information are difficult to destroy or falsify and are well suited for the free transfer of data and rights. These characteristics give Blockchains many possible uses for a range of services, including finance, goods distribution management and sharing economy, and we expect that Blockchains will provide even more innovative services in the future”.

The new system will be based on an existing system for authentication, sharing and rights management of training data. However, it will also offer functions for processing rights information.

Sony explained that

“This newly developed system specialises in managing rights-related information from written works, with functions to demonstrate the date and time at which the electronic data was created, and using the properties of blockchains to record verifiable information in a manner that is difficult to forge and to identify pre-recorded work. This allows participants to share and verify when and by whom electronic data was created.”

These managed works can be electronic textbooks, music, films, VR content and books. This is intended to put a stop to legal disputes about who is the actual author of the work.