Winklevoss Twins Believe Bitcoin Will Easily Reach $500,000

A question about wealth inequality in a bitcoin standard world.

We know today that there are (many?) people with vast sums of bitcoin. Some are public figures like the Winklevoss twins and Chamath, others are anonymous.
These folks in the upper echelons command a wealth of no less than several hundreds of thousands of bitcoin, each.
To be clear, I applaud them for seeing the opportunity early on, seizing it, and hodling.
But the question that sticks out to me, is this “healthy”? What do you think will be the pros and cons of this consequence? I understand that with a Pareto curve there must be wealth inequality, and I accept inequality for what it is. However, let’s assume that bitcoin becomes the world reserve currency in however many years and 1 single bitcoin holds value between 1 million to 10 million USD in equivalence to today’s purchasing power... is it insane that so much wealth is held by so few people?
It would make Bezos, Buffet, and Gates look like real small fries in comparison.
submitted by SpockSays to Bitcoin [link] [comments]

[ Bitcoin ] A question about wealth inequality in a bitcoin standard world.

Topic originally posted in Bitcoin by SpockSays [link]
We know today that there are (many?) people with vast sums of bitcoin. Some are public figures like the Winklevoss twins and Chamath, others are anonymous.
These folks in the upper echelons command a wealth of no less than several hundreds of thousands of bitcoin, each.
To be clear, I applaud them for seeing the opportunity early on, seizing it, and hodling.
But the question that sticks out to me, is this “healthy”? What do you think will be the pros and cons of this consequence? I understand that with a Pareto curve there must be wealth inequality, and I accept inequality for what it is. However, let’s assume that bitcoin becomes the world reserve currency in however many years and 1 single bitcoin holds value between 1 million to 10 million USD in equivalence to today’s purchasing power... is it insane that so much wealth is held by so few people?
It would make Bezos, Buffet, and Gates look like real small fries in comparison.
SpockSays your post has been copied because one or more comments in this topic have been removed. This copy will preserve unmoderated topic. If you would like to opt-out, please send a message using [this link].
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submitted by anticensor_bot to u/anticensor_bot [link] [comments]

Bitcoin vs Gold Backed Cryptocoins

Hi, I have been buying 100 usd of bitcoin every Friday since the Mt Gox hack and am what some people refer to as a whale, although not as fat a whale as the winklevoss twins!! However, i understand bitcoin as a store of value and a hedge against inflation, the portability aspect is often put forward as a reason why its better then gold but the truth is, there are several coins backed up by precious metals such as gold. If one of these developed as has Tether with real assets backing the digital ones, The people trading gold back coins i.e. the gold standard will have the same benefits of bitcoin in regards to portability of funds without the volatility involved leading to a better storage of value. Would really like your views on this guys...
submitted by TCS13579 to Bitcoin [link] [comments]

Who is the richest Bitcoin owner?

Technically, Bitcoin was worth less than 10 cents per bitcoin upon its inception in 2009. The cryptocurrency has risen steadily since then and is now worth around $6000 per Bitcoin. This is the most remarkable appreciation of the value and has created many millionaires over the last eight years.
Here are the top ten people/institutions that held a large amount of Bitcoins over time:
1. Satoshi Nakamoto
The creator of Bitcoin, who hides behind the moniker Satoshi Nakamoto, remains the major holder of bitcoins. The number of bitcoins that Nakamoto owns today is estimated at around 1.1 million, based on the early mining that he did. This is the equivalent of about $6 billion at today’s exchange rate of 1BTC to 6,098 USD. At least Nakamoto has never touched most of his bitcoins, and neither converted them into real-world currencies nor used them for any other purpose. If he were to sell his entire stash, the value of Bitcoin could plummet in an instant.
2. Bulgaria
Bulgaria is currently sitting on one of the biggest stashes of Bitcoin in the world. How did the European nation come into the possession of this enormous sum of money? A crackdown on organized crime by the Bulgarian law enforcement in May 2017 resulted in the seizure of a stash of 213,519 Bitcoins, enough to pay off a quarter of the country’s national debt.
According to Bulgarian authorities, the criminals used their technical prowess to circumvent taxes. As of June 2018, the virtual coins would be worth more than $1.2 billion. The Bulgarian government has declined to comment on the status of the coins.
3. BitFinex
BitFinex, a crypto exchange, has one of the largest bitcoin wallets with 163,133.38 BTC that are worth approximately $1 billion at the current price of $6,098.24 per bitcoin. The coins are believed to be kept in a cold wallet to protect them from cyber hacks, unauthorized access and other vulnerabilities that a system connected to the internet is prone to.
4. The FBI
The FBI is one of the largest renowned holders of Bitcoin. In September 2013, they brought down Silk Road, the infamous dark web drug bazaar, and seized 144,000 Bitcoin owned by the site’s operator Ross Ulbricht, better known as, “Dread Pirate Roberts”. Ulbricht made critical blunders that allowed investigators to locate the site and link him to it. Users of Silk Road are said to have traded around 9.5 million bitcoins since Ulbricht launched the site in 2011. Even thought the FBI sold a large amount of their Bitcoin holdings or even all, the FBI worth mentioned as they had a fortune in Bitcoin at some point. A large portion of the Bitcoins seized and sold went to Barry Silbert.
5. The Winklevoss Twins
Tyler Winklevoss and Cameron Winklevoss were among the first Bitcoin billionaires. The duo had first gained popularity when they sued the Facebook C.E.O. Mark Zuckerberg for allegedly stealing the idea of creating Facebook from them. They were contacted by Zuckerberg to develop the ConnectU site, which was to become Facebook later on.
They used $11 million of the $65 million cash compensation they received from the legal dispute with Zuckerberg to purchase 1.5 million Bitcoins in 2013. Back then, one Bitcoin traded at $120. That investment has increased more than 20000% since then.
The twins allegedly own around 1 percent of all Bitcoin in circulation. Their combined net worth is approximately 400 million. They created the Windex, funded several bitcoin-related ventures and invested $1.5 million in BitInstant.
6. Garvin Andresen
Although bitcoin is the brainchild of Satoshi Nakamoto, Garvin Andresen is credited as the person who made it what it is today. Garvin is one of the people who has been suspected to be Satoshi, a claim he denies. Rather, he says that he had a close relationship with the anonymous cryptographer for many years. The real Satoshi Nakamoto picked him as his successor in late 2010. Garvin became the chief developer of the open source code that determines how Bitcoin operates – and whether it can survive. He was once paid over $200,000 in Bitcoin by the Bitcoin Foundation for his contributions. He had already cashed out multiple times.
7. Roger Ver
Roger Ver, otherwise known as Bitcoin Jesus, is one of the first Bitcoin billionaires and believed to hold or held at least 100,000 bitcoins. The renowned libertarian allegedly dropped out of college to focus on his bitcoin-related projects. Unlike other crypto billionaires out there who are throwing their cash in the typical private Islands or luxury jets, Ver’s dream is to establish his own libertarian nation where every individual is the absolute owner of their own life and are free to do whatever they wish with their person or property. The controversial bitcoin evangelist renounced his U.S. citizenship in 2014 and relocated permanently to a small Caribbean Island.
8. Barry Silbert
Silbert is a venture capitalist and founder of Digital Currency Group. He was an early adopter of Bitcoin. He purportedly walked away with an eye-watering 48,000 Bitcoins in an auction held by the U.S. Marshals Service in 2014. The US government had confiscated much of the crypto coins from Ross Ulbricht, the alleged operator of the dark web marketplace for drugs and other illegal products. Bitcoin was then worth $350, which means Silbert’s coins have skyrocketed in value from $16.8 million to $288 million.
9. Charlie Shrem
Charlie Shrem is no doubt one of the most controversial Bitcoin millionaires. He invested in a large quantity of Bitcoin in the early days of the cryptocurrency. Shrem was also an active member of the Bitcoin Foundation and founded BitInstant when he was just 22 years old. By the end of December 2014, Shrem had been found guilty of money laundering and received a two-year prison sentence. After his release from federal custody, he unveiled a startup called Intellisys Capital, a company that sells investment portfolios in blockchain companies.
10. Tony Gallippi
A famous business magnate Tony Gallippi is also believed to be one of the big holders of bitcoins. He is the brain behind BitPay, one of the most popular Bitcoin payment service providers in the world. The company was launched in May 2011 and processes over one million dollars per day. Bitpay is also one of the companies to sign contracts with major companies including Microsoft, Dell, TigerDirect, and Newegg. By 2014, the company had employed approximately 100 people.
Conclusion
It is estimated that the top 1000 bitcoin addresses own approximately 35% of the total bitcoin in circulation. There are also thousands of individuals who hold large stashes of bitcoin but have chosen to remain anonymous.
submitted by alifkhalil469 to BtcNewz [link] [comments]

What is a Crypto Whale?

What is a Crypto Whale?

https://preview.redd.it/jv9oy1vzeri31.jpg?width=760&format=pjpg&auto=webp&s=e85ca2df1302612693702df0288290361195f86e
Crypto Whales. Yes, you read that correctly. You might be wondering what a crypto whale is…
A crypto whale is a colloquial term used to describe “large market players” in the cryptocurrency markets. If you imagine the analogy of the ocean, and we’re all happily swimming around. As an average Joe investor, we only have small sums of money available to us, and we’d be considered the “little fish” investors.
Whereas Crypto Whales are individuals or institutions with large sums/volumes of crypto assets. A Crypto Whale may hold large volumes of multiple cryptocurrencies or only a single cryptocurrency. You can, therefore, have Bitcoin Whales, Ethereum Whales, XRP Whales, EOS Whales, Litecoin Whales, Cardano Whales, Bitcoin Cash Whales, etc.
The oceanic analogy is appropriate as people talk about market waves and refer to small market rallies as feeding frenzies etc.
They are so-called Crypto Whales because if/when they sell a large amount of cryptocurrency it can cause a sudden drop in price as the relatively illiquid market cannot absorb such large sell orders, especially in a bear market. This can create a dip in the market charts, or a “wave” in the market, just as real whales make waves when they jump above the surface. Both illustratively in the cryptocurrency price charts as well as emotionally as people suffer a wave of panic when prices drop. Some weak hands will also sell their cryptocurrency holdings during the large sell-offs further contributing to the crypto whale initiated market wave.

How much crypto must you have to be considered a Crypto Whale?

While there is no rule for this, it generally must fit two criteria: (1) large volume of crypto (typically in the tens of thousands of BTC, hundreds of thousands of ETH and tens of millions of XRP); (2) large USD value, which is dependent on the market values of coins on any given day. Typically Crypto whales are worth MANY millions if not billions of dollars.

Who are the Crypto Whales?

It’s tough to be certain who the crypto whales are because of the pseudonymous nature of Bitcoin, Ethereum, XRP and other cryptocurrencies.
There are some groups who have claimed the title of Crypto Whale, including:
  • Pantera Capital
  • Greyscale
  • Coin Capital Partners
  • Fortress
  • Global Advisors Bitcoin Investment Trust
  • Bitcoin Investment Trust
  • Bitcoins Reserve
  • Binary Financial
  • Falcon Global Capital
  • Satoshi Nakamoto (wallet holds ~1,000,000 BTC), but its never been used.
Suspected Whales IMO:
  • The Winklevoss Twins
  • Roger Ver
  • Fidelity
  • Goldman Sachs (I could be wrong)
  • ICE (Parent company of Bakkt)
  • Bitmain
  • Other large miners
  • Vitalik Buterin (Ethereum Whale) & Joseph Lubin (Ethereum Whale)… likely.
  • Ripple (XRP Whale)
  • Who are the Crypto Whales?
  • Who are the Crypto Whales?
  • Theories on Crypto Whale Manipulation
Now I am no market analyst so take this with a grain of salt. The general sentiment on the internet about Crypto Whales is that they can and do manipulate the price of their respective cryptocurrency. Crypto Whales generally are financially well off and can afford to spend money. The idea is that they put in a large sell order on an exchange that they know cannot handle the volume of the sell order. This causes the price of the cryptocurrency to drop dramatically.
Once the price has dropped to a certain point the crypto whale takes fiat and buys up tons of low-cost cryptocurrency. Please note that they do not have to have their whole sell order filled. They just need to drop the price, cause panic, then other small fish investors start selling their cryptocurrency. This is when the whale cancels their sell order and starts buying the dip.
I personally think that this definitely happens, but to what extent I do not know.

Conclusion

I hope that you enjoyed this post on Crypto Whales and that you managed to learn a little something new about the crypto industry today.
There is a Twitter Account called “Whale Alert” where the individual (or group) tracks the blockchain for large cryptocurrency transactions/movements. Very interesting to pay attention to and keep an eye on. @whale_alert is really doing a great service to the crypto industry and average investor by broadcasting the transparency of the blockchain for our benefit to not fear crypto whale movements… or at the very least to be aware of them.
Keep in mind that these Crypto Whales are significant right now. This is due to the illiquidity of the global cryptocurrency markets. As institutional investors around the world start investing in earnest, and then as hundreds of millions of average Joe investors add cryptocurrency to their retirement portfolio, the liquidity and overall market value will rise. The Crypto Whales will have less impact on the market then. We will have the demand and liquidity to absorb the large sell orders, and the crypto will be more distributed.
People will be adding cryptocurrency to their portfolios just like they add stocks such as the S&P500 or Apple, Amazon, Johnson and Johnson, Oracle, Walmart, Berkshire Hathaway, etc, etc.
One of two things will happen with increased liquidity: (1) The Crypto Whales become massive in size; or (2) The Crypto Whales go the way of real life whales… endangered and hunted…
Link to Original Post: https://markshirecrypto.com/cryptocurrency/what-is-a-crypto-whale/
submitted by Tokenberry to NewbieZone [link] [comments]

The Story of ICODOG, November Progress Report

Crashing through the support lines like a Boss
If you are reading this, then your awesome! ICO DOG started off as a simple twitter channel in January 2018. People started to follow the dog, because we provided useful insights into ICO investing and whitelist links. Back then people still had to race everyone else to get into these things, before they would dump hard. In February we then had the first guys asking us to make a telegram chat room for the community and use primablock to pool funds together to send to such projects. It was a very exciting time to see ICO DOG brand grow so organic. After that, the market crashed 20% every single day. That was a rough period. To be honest, the whole year was a stony road. Several people came together, that were very active in the telegram channel and formed a team. It was like a mini DAO. We had review & marketing guys, tech guys, lawyer team and all that happened by itself on Telegram. We build the first Presale Platform, created a cool UI for users introduced a level system to build the community and later even added master nodes. However, things just became more and bleaker. As Bitcoin fell closer to $3000 more people left and the group became silent. Sounds like a sad story right? Well, every good storyline has a downturn, followed by a boost of motivation to get through all the shit. A few months ago, we decided that the ICO space became a bit too scammy in 2018. We started to become more selective with the investment choices and eventually stopped pooling altogether. Pooling was about winning together, and it’s not fun if everybody loses. We started to look into other forms of revenue that we can build up to keep us over water until the bear market is over. What we love to do the most is community building, and community is the MOST important aspect of a decentralized network. The idea of blockchain was it to move from a centralized system to a decentralized one. This word decentralized is being thrown around on a daily basis although most people still do not understand what it means to change the architecture from centralized to decentralized. Most if not all big projects still have a very centralized structure going on with a few exceptions like Bitcoin, Ethereum & Steem.
Understanding decentralized Architecture
A decentralized architecture is fundamentally different to anything we know as of know. That’s also why it’s so hard to understand. Think of bitcoin as the first decentralized company. Let’s call it Bitcoin Crop. To help understand the Bitcoin Company metaphor, let’s say bitcoins properties are the products that this new decentralized company is producing. Common things said about Bitcoin is its decentralized, censorship resistance peer to peer money. These are often the terms used when people tell you why you should buy bitcoin. Bitcoin is the fastest growing asset of all time. Therefore Bitcoin as the first decentralized company is the fastest growing Company in the world, reaching an evaluation of over 300 Billion USD in less than 10 years. Although the Bitcoin Company is producing high-quality stuff, the products themselves are only as good as the sales, distribution, marketing and that where decentralized architecture kicks centralized companies ass. To make things even more complicated we now have to rethink what it means to be paid and to receive a salary. In a centralized company, build on the centralized architecture model, you work for your boss, who has a boss and that boss gets told what to do by some CEO who then has to take his others from shareholders. The money “trickles down” the food chain and by the time it reaches the bottom almost all of it is gone. Let’s compare this with the first decentralized company Bitcoin. In the Bitcoin company its a bit more complicated than that. In the early days of the company, if you want to work there, you actually have to pay the company first! Crazy I know! Think of it as some tribute to show your loyalty to the Network. The earlier you join, the less you have to pay, and the more of the company network you own. In the early days of Bitcoin Corp. most of the employees there were just engineers and a few crazy marketing guys. Things became a lot more interesting in 2013, when some important people started to work at Bitcoin Corp. People like the Winklevoss twins, Roger ver, Chamath Palihapitiya and many others bought a big share in Bitcoin Corp. and thereby earned the right to work for the Bitcoin. After that, Bitcoin Corp started to grow exponentially, because those new high-class employees had a lot of leverage and even more incentive to grow Bitcoin. The harder they would work the bigger the company would become and the more valuable there coins would be. This was the birth of the first decentralized payroll. Most of the mentioned people earned millions working for Bitcoin and are still working hard getting ETFs approved and spreading the word about it. Every person that owns Bitcoin becomes an employee at Bitcoin Corp. Everybody is rewarded for the work that anybody does, and everybody is incentivized to help grow the Bitcoin company.
Introducing a New Way of Doing Everything
A few months ago, we decided to build software to help ICOs build their own decentralized Networks. We called the system Proof of Engagement and called the Software the DAO Maker. Pun intended. Proof of Engagement is a concept that helps onboard new users and uses token bondage curves and community incentive to create an organic community of long-term token holders. We took our functions that we build to detect contributors in an ICO pool and combined it with our Point system to great a smart community program. The idea is that users can join the ICO before it starts and do community work, quizzes, and other services before the public sale ends. Once the tokens are unlocked, those users that joined the ICO will get their investment tokens + engagement reward tokens. Users can then continue to earn community bonus tokens monthly, but ONLY if they keep their ICO token in the wallet which they used for investing into the ICO. The monthly rewards increase with:
Time user holds the initially invested coins.
Time users hold their earned engagement tokens.
The total amount of tokens held by registered users.
The total amount of tokens user is currently holding.
Current users community level.
Monthly earned points.
All of these factors are added together, to give the exact value that a user will receive monthly. Put simply its a micro staking system, that rewards engaged users in tokens. The result is a dynamic token bonded community. People have incentives to build and help the network, the more experience that have the more tokens they will own, the more tokens they will earn. The system incentives loyalty and hodlers, while also makes it possible for new users to join the system and help the network to grow. For a deeper understanding on Dynamic Token Bonding Curves you can check out some publications on Token Economy here 
The best KYC & AML & CTF in Crypto
For the past months, we were talking to A LOT of KYC providers. We quickly came to the conclusion that most of them are scams. The state of Anti Money laundry in crypto is pretty scary. I lots of people will end up in court for violating the AML directives. Currently, most ICOs do not comply with KYC & AML laws. The EU currently requires to be compliant until the 4th EU AML directive, which will change in 2019. We are already compliant with EU AMLD5, which is not in force yet but already includes cryptocurrencies, we are a step ahead of the curve in the EU. Starting this week, we will introduce the new KYC & AML features on our Platform. We are using the newest system of machine learning to scan a users face and password as well as detecting an applicants voice, to generate a complete biometric signature of his application. We will be able to onboard KYC & AML application in real time and will be one of the first fully compliant with the new regulations of 2019. 
Updates to ICODOG Reviews
We changed the homepage for ICO DOG to show more crypto stories, reviews and post analysis. We are working on a more in-depth redesign for ICODOG.IO in 2019. We added a few new Blog sections namely, ICO Analysis and Post ICO Reviews and Crypto Stories. We want to take more time in 2019 to evaluate ICOs that concluded their Sale in 2017 & 2018. We are planning to make this a decentralized work effort with the help of Token Curated Lists (TCL). We will make a few posts about TCL in the next few weeks. ICODOG.IO is focusing on providing value-adding content, not the same stuff that the mainstream crypto outlets write about. This will be a really cool project that we are very excited to start next year and finish by end of Q1 2019. We welcomed 3 new writers to the ICODOG team and are trying to produce useful content every day.
New Partnerships & Business Development
Last month we Partnered up with several high-quality service providers as well as high potential ICOs. We will add all of the new partners on the Partners on the Partners tap of the updated website. Looking forward to building the new world with likeminded people.
ICO DOG Platform Upgrade 2.0
We been very busy and added a lot new feature on ICO DOG Investment platform. We are still in bug hunting so if you use the bug bounty tap on the platform to help us. We added some cool features that will make the life of many a lot easier. Automated twitter confirmation Users once a user connects their Twitter account in the profile section and starts generating tweets and retweets, these actions will be detected at midnight automatically. That means users do not need to click claim every day, but instead can earn points directly on Twitter. Reddit Automated Integration Users can now also join the Reddit campaign and generate threads and comments to spread the word about ICO DOG. We increased the team to help with the distribution of content among all the social media accounts. This should help you guys earn points quicker and easier as well as build a community on Reddit. For launching this new system we are increasing the points for reddit registrations by 3x. Ambassador Program We added an Ambassador Program for the ICO DOG community. We added Ambassador status to several people already that have been part of the community for almost a year and been working together through this bear Market. Ambassadors have special rights and access to social media accounts, discord reddit and will be informed about the latest updates.
ICO DOG COIN
We plan to introduce the ICO DOG Coin next year. This coin will be the fuel that powers all of the ICO DOG utility. Ambassadors will get monthly airdrops in the ICODOG coin depending on their contribution. Part of the revenue that ICO DOG will make goes into the coin via buybacks and token burns. As we are not raising any funds from nobody, the coin is cannot be considered a security. All new Features Summarized Following a few of the new features: + Upgraded pool system: – new wallet management – my pools is now a list (click the red sync button to update your pools) – record and track all the transaction you have sent, even from different address – improved overall working flow + Add reddit integration with auto check (it runs every day) + Weekly competition + Global real-time notifications + Two factor authentication support (Google authenticator) + Twitter with auto claim (it runs every day, no need to click Claim anymore) + Many other new features and bug fixes 
Summary
This year was rough, but we did not give up. The harder Bitcoin Dumps, the harder we work! Things could be better in terms of the market, but fundamentally ICO DOG is doing pretty good. We want to thank all those that have been with us on this amazing journey since the beginning. Crypto will change the world and we will help make that happen. If you like what we do please register on the icodogpool platform and shill this and other-other content! As always like, share and join discord & telegram.
https://icodog.io/crypto-stories/the-story-of-icodog-november-progress-report/
submitted by icocatapult to icodog [link] [comments]

In case you missed it: Major Crypto and Blockchain News from the week ending 12/14/2018

Developments in Financial Services

Regulatory Environment

General News


submitted by QuantalyticsResearch to CryptoCurrency [link] [comments]

Crypto gets expert support

The last week has been good for the leading cryptocurrencies, with more days showing all the tickers in the green than in recent times. Even the mainstream media has picked up on the fact that perhaps the bears have been chased back into the woods, with the UK’s Independent newspaper publishing an almost euphoric headline, Bitcoin surges past $4,000 as cryptocurrency experts bet on major market turnaround.
As it points out, this mini surge has been accompanied by a swathe of predictions by crypto luminaries about what is likely to happen with bitcoin in the coming months, with most of them believing we will see significant gains.
Cameron Winklevoss, one half of the Winklevoss Twins, was talking at the South by Southwest conference in Texas when he said, “The only thing that’s truly precious, in my mind, is bitcoin. If you talk to someone who’s playing Fortnite and say, okay, two options, bar of gold or the equivalent in bitcoin, they are 10 times out of 10, 100 times out of 100, going to take the bitcoin. They want software, they don’t want hardware.”
Brendan Blumer, the founder of Block.One, a blockchain-based firm, tweeted, “Over the next two decades, #bitcoin will replace #gold as the leading commodity to store value.” He added that he believes this will happen by 2040.
One Twitter user known as @HTradingSystems proudly announced, “All in Cyptos. All fucking in. Ether. Bitcoin. EOS. LTC. Bitcoin cash. If it has a pulse and it is a Crypto. I am buying.” He or she couldn’t clearer about how they feel about the cryptocurrency market.
And @Genateq, tweeted, “What are your predictions for 2019? One is for sure: Bitcoin is great long-term investment.”
Although the market is still hovering around the long-term bearish position, it is threatening to break to the upside. This week is likely to be a pivotal one for cryptocurrencies and its supporters are cheering it on.
submitted by Lendo-ELT to u/Lendo-ELT [link] [comments]

Crypto Industry is Betting Big on the Future of Stablecoins

Crypto Industry is Betting Big on the Future of Stablecoins

https://preview.redd.it/x3i0kbnavuk21.jpg?width=1000&format=pjpg&auto=webp&s=24e5620b93f0895f510c60b25533b14e754754ce
When merchants started introducing bitcoin and similar digital currencies as one of their payment methods, they quickly encountered a significant problem: price volatility.
There were instances like a luxury item dealership, which used to accept bitcoins for their products but saw the value their Ferrari cars jump by almost 33% during a test run. The company, dubbed as The White Company, later joined the popular trend of launching a “stablecoin,” a hybrid of blockchain and fiat money, which promised to protect its balance sheets from subtle influences.

WHAT IS STABLECOIN?

Rather than fluctuating on the whims of traders’ speculation, a stablecoin is a new blockchain-enabled breed that is characteristically pegged to stable real-world assets, from commodities to currencies. For instance, users can purchase one stablecoin for a dollar, and can also redeem it later for the same price, thus eliminating the notorious crypto price swings.
The stablecoin industry became popular in the wake of 2018’s crypto crash. The depression saw the market’s leading cryptocurrencies like Bitcoin and Ethereum losing 80-90% of their capitalization within a year. A majority of retail investors, who were holding these volatile crypto assets, decided to exchange them for stablecoins as a part of their risk management strategy. Once the volatility settled, traders were redeeming their stablecoins for digital currencies, as well as fiat currencies to exit the crypto market on minimized losses.

INBOUND INVESTMENTS

Stablecoins are not exciting as speculative assets, mainly because their backers supply only the portion that they can back against a stable real-world asset. They are highly attractive tools when it comes to retaining the qualities of blockchain-enabled payment networks for, say, remittance and hedging.
The institutional players have begun to realize the potential of stablecoins. As of November, the total investments made into the stablecoin space has touched $3 billion, per Stable Report, a crypto research group. It has led to the introduction of more than 120 stablecoin projects this year.
Winklevoss Twins, for instance, launched a stablecoin for their Gemini bitcoin exchange in September. Circle, a Goldman Sachs-backed crypto group, also partnered with a US bitcoin exchange Coinbase to launch a USD Coin.

DUE DILIGENCE

Almost every new player in the stablecoin market is coming with their audit reports in hand, a record that verifies that the company that intends to issue its stablecoins has sufficient assets to back them. Some coin projects have even introduced features that allow them to freeze or delete coins to tackle money laundering acts.
Popular stablecoin project Tether, meanwhile, has garnered criticism for refusing to get its balance-sheets audited by an independent party. It has enabled a whole new competition to flourish in response, which includes more modern stablecoin projects like TrueUSD, Paxos, and Maker, in addition to Gemini Dollar and USD Coin (as discussed above).
As the regulatory watch improves and companies begin to take due diligence seriously, 2019 could prove to the year of stablecoins. Advocates believe that in the long term, almost all the traditional industries would want to integrate a stablecoin solution.
“Insurance, lending . . . these are some of the categories that could start to grow into the trillions,” Garrick Hileman, head of research at Blockchain crypto wallet company, told FT.
Social media giant Facebook has already announced that it would introduce a stablecoin to power p2p payments on its WhatsApp messenger.
Featured image from Shutterstock.
https://www.ccn.com/crypto-industry-is-betting-big-on-the-future-of-stablecoins
submitted by dForceProtocol to u/dForceProtocol [link] [comments]

Thinking of selling Bitcoin, please do yourself a favor and and WATCH this short video...

If you own Bitcoin and are thinking of selling please do yourself a favor and WATCH this short video, they explain everything you need to know about Bitcoin and where it's headed in the near and long term!
http://video.foxnews.com/v/5692125734001/?#sp=show-clips
These guys currently own $1 Billion USD in Bitcoin, and are daring Wall Street to Short BTC and put their money where their mouth is.
They got in in 2013 and still holding long term, Saying Bitcoin has a much higher value than the global gold market which is an over $6 trillion USD market cap! Currently sitting at less than 5% of the Global Gold Market. So they are convinced there is still a massive amount of growth down the road.
For anyone who doesn't know, these are the guys who started ConnectU with Zuckerburg as their coder. To which they claim he then stole the idea from them and started Facebook without their knowledge. They actually sued Facebook and won $65 Million USD. They are now worth over $1 billion from their Bitcoin investment. Feeling strongly it will continue to rise and is not a bubble. Challenging any of the naysayers to put their money where their mouth is and short it.
Cameron and Tyler Winklevoss, thought to be among the largest holders of bitcoin, said the advent of futures is just the beginning of a phase of greater acceptance for the cryptocurrency that is often derided as a bubble.
“We think it’s the starting gun to a whole new phase of liquidity and price discovery and sophisticated entrance to the market,” Tyler Winklevoss said during a Bloomberg Television interview.
The Winklevoss twins are co-founders of the Gemini exchange, which Cboe Global Markets Inc. is using as the basis for the daily settlement for the bitcoin futures that began trading this week.
The Winklevoss brothers said in 2013 that they owned almost $11 million worth of bitcoins. If they retained that stake it would be valued at about $950 million today, according to the Bloomberg Billionaires Index. The ranking calculates they each have a $1.1 billion fortune as of Monday after taking into account other assets.
submitted by dmj1653 to Bitcoin [link] [comments]

The future of Bitcoin – a look at Bitcoin futures contracts five months on

It was a big moment for Bitcoin late last year when the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) launched the first futures contracts in mid December 2017.
It had already been a very big year.
Bitcoin’s meteoric rise from around USD$900 to almost $20,000 all took place over 2017, as fevered investors poured into the digital currency market for the first time. The Winklevoss twins, who had begun trying to launch a Bitcoin ETF in 2013, were knocked back in March 2017 by the SFC. Through that northern hemisphere spring and summer, well known analysts from the Wall St giants – Goldman Sachs in particular – started commenting on the coin’s price moves and making predictions. Retail investors kept piling in, pushing prices higher and higher.
When the imminent arrival of the futures contracts from the CME and CBOE was announced, many took it as the acceptance of Bitcoin into the fold of traditional assets. The price rose higher still.
Meanwhile, Bitcoin bears, with no way to bet against what they saw as a speculative bubble, could only stand on the sidelines. Until December. With the launch of the futures contracts, those who thought prices were unreasonably high had a way to make money by a fall in the digital currency’s value.
And that’s exactly what happened. Bitcoin hit its all-time high the very day the CME futures contract launched. And then Bitcoin prices began to fall. Coincidence? Academics from the San Francisco Federal Reserve don’t think so. In an Economic Letter published earlier this month, they said:
The rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence. Rather, it is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset
For Bitcoin bulls, this could actually be a very good thing. The more institutional investors see digital currencies behaving like more traditional asset classes, the more comfortable they will be and the further digital currencies will penetrate into the overall financial ecosystem.
https://www.independentreserve.com/News/Industry/The_future_of_Bitcoin___a_look_at_Bitcoin_futures_contracts_five_months_on
submitted by IR-Nikola to independentreserve [link] [comments]

Bitcoin Trading Intelligence

Hope all is well guys. Thank you for the feedback on our last Bitcoin Trading Intelligence newsletter. Hope this one addresses some of those points.
Feedback and any other comments are welcome.
If you like this and want more, you can now reserve your spot in our Bitcoin Trading Intelligence platform.
Note on the Flash Crash:
On August 18th the Bitcoin market experienced a flash crash on a number of exchanges, led by Bitfinex. It appears, according to swap data there was a number of large positions which closed in tandem causing a whipsaw effect, accelerated by market panic. Thankfully it does appear this was an isolated issue, and not a fundamental break down of the market. The price touched $160s on Bitfinex, and has since recovered to the $230 region, signaling this may have been entirely a result of an issue with an exchange or exchanges. We’ll know more in the coming days, but at this time we believe this to be the case. We’ve selected Bitstamp for our charts, as it did not have as drastic a reaction which can affect technical analysis.
Fundamental Analysis:
The entire setup of the market is clouded with bearish sentiment amplified the impacts of the BitLicense and the news of the first Bitcoin-XT Block being mined. Here is a review of what has happened fundamentally in the market over the past week and a half. On a global scale, the acceptance of Bitcoin in many countries has been on the rise as weaker economies are evidently turning to cryptocurrencies as their exit option, indicated by the increase in the trading volumes of Latin American Countries. The high inflation rate and unstable economy in countries like Argentina and Brazil have caused a massive surge in the trading volumes of Bitcoins in Latin America increasing more than 120%. This might be a reverberation from the increased number of newly registered users in Greece over the past few weeks which increased by 600%. In Europe, despite Germany’s recent negative press about Greek bailout, Berlin remains one of the major attractions for Venture Capitalists, with Bitcoin Startups and the overall ecosystem continuing to prosper. With more than $2.2 Billion invested in startups in Germany and a considerable percentage of them being Bitcoin startups, the future of cryptocurrency in Germany looks promising.
The surprise “one off depreciation” of the Yuan by the People’s Bank of China early in the week led to price divergences and limited bull runs in USD and CNY exchanges as people invested with Yuan saw the Bitcoin market as a good hedging opportunity. Adding to the already strengthening sentiment of growing Venture Capital investments in bitcoin, Japanese exchange ‘bitFlyer’ was able to raise $4 million for their next round of funding, despite the ripples caused by the arrest of Mark Karpeles, former CEO of Mt Gox earlier this month. Bitcoin got a boost from more traditional finance firm PricewaterhouseCooper’s which promoted the use of Bitcoin and Blockchain Technologies for its clients. The report stated categorically that Cryptocurrencies open the door for revolutionary technological possibilities and would disrupt the existing financial Industry in a positive way. With things going awry after the BitLicense debacle, the long awaited Gemini Exchange is a ray of hope for the residents of New York with the Winklevoss twins filing the paperwork for operating an exchange in New York in accordance with the new policies.
Edward Snowden’s statements about bitcoin, particularly saying that the technology is inherently flawed citing the ‘51 % mining attack’ as a structural weakness problem created negative sentiment in mainstream press. On the positive side, he added that the basic principles of systems based on decentralized tokenization models might continually provide more value to society. In the midst of the negative mainstream sentiment Bitcoin XT released their completed version of the software on the 15th of August. Unfortunately, many mainstream articles surfaced calling the first Bitcoin-XT block meaning Bitcoin has forked. On one hand it is a vote for the change in protocol, but the network, almost exclusively, continue to run on the core implementation. Predictions say the full switch could happen mid-2016, but the exaggerated news has had a short term impact on the mainstream perception of Bitcoin and potentially the market.
While things were already looking tight because of BitLicense, The Financial Crimes Enforcement Network (FinCEN), has issued a new ruling stating startups seeking to tokenize commodities for Blockchain based trading have to be licensed in all the 50 states. On the heels of new regulation, SABR, a New York Based startup has just raised one million dollars to fulfill its goal of providing law enforcement with a view beneath the surface of multiple block chains. SABR aims to detect and prevent bitcoin and other digital currencies being used for illicit purposes. How these developments in regulation and security will help or harm the bitcoin community will be seen in due time.
Technical Analysis:
Long Term:
On a weekly scale, the market has been predominantly sideways with choppy moves from 255-271, until finally completing the bearish arc of the sideways swing by breaking the support zone around 250 and trading at 220 levels. The Bollinger bands in the weekly chart still remain parallel showing that the market is in the expected zone and judging by the regression lines, is setting up for a bull trend after consolidation. On a long term scale, taking a position right now for a long term trade would be premature as the sentiment in the market is not clear. The RSI is approaching the oversold region while the MACD just took a bearish turn without crossing the zero line. The proper indication for setting up long term trades would be reading the setup of the market in terms of 5 SMA and Bollinger bands. As soon as both Bollinger Bands and the 5 SMA become trending in the upward direction after significant consolidation, entering into trades with a long term plan is more justified. Proper entry points for such trades would be around the 217 region with stops below 214. If the market is trending, possible exit points could be 255, 271 and 317.
If the market breaks to the downside, breaking the support zone at 217, weekly lower Bollinger band and previous swing lows are possible targets.
Midterm:
If we look at the daily chart, the break of the zone of support around 250-255 signaled move in the market that has the run the price down to 221. The reversal was very quick with less volume, showing that the 217-220 zone is a good support zone which can be tested soon because of the still trending bearish setup in the daily chart. With the Bollinger bands and SMA’s pointing downwards, the setup is going to remain bearish for some time until a base of consolidation is formed. The descending triangle as shown in the daily chart between the downward trendline and support line at 217 might result in higher volumes being traded in the coming days. In which direction the break out would be or the setup would change will depend on how the market approaches the vertex of the triangle. The MACD is showing a bearish signal in the short term and the RSI crossed 30 into the oversold region but is now coming close to leaving the oversold region. In the medium term, it appears that it is going to be bearish/sideways for some time.
A trade setup shorting at the 5 SMA cross and looking for positions on the retracements was a good opportunity during the sell off.
Short term:
The market crashed by a huge percentage on Tuesday when the trading price of Bitcoin dropping to the 160s on some exchanges, although Bitstamp did not have as severe a reaction. Though it was immediately backed by a green retracement candle, the sentiment is predominantly bearish even in the 240 minute chart with little corrections. The market is expected to trade in this range for some time before either consolidating and going for a reversal or crashing down further. Some of the good trades in this range would be picking longs on the support level until the market closes in on the triangle as shown on the daily chart. Shorting around the lower Bollinger band, and 5 SMA with expectation of a crash down back to the 217 levels could also be profitable, although these trades have to be done with a tight stop loss.
Sentiment Analysis:
The overall sentiment of the market has continued bearish with BitLicense and “Bitcoin Forking” leading the way. However, the sentiment on the banking front is picking up speed with Visa deploying a block chain research team on the 12th August in Bangalore to study the possible applications of the Blockchain. Deutsche Bank has recently backed Blockchain Technology and bitcoins by making some positive statements about how bitcoins hold the key for the future of financial services. Another positive enforcer to the sentiment is Blockchain.info has exceeded 4 million users. With companies like BitX and ecoins making payment through bitcoins via debit cards infrastructure possible, further research to adapt bitcoin to the existing financial system and other applications seems more likely. Continued adoption by European merchants and an Indonesian crowd funding platform accepting bitcoins, gives hope that bitcoin is slowly gaining a grip on the traditional financial world. It’s still unsure about how the forking news will affect the price of Bitcoin. Major exchanges like Bitfinex have said the major exchanges will come together in agreement if a major shift happens, as there main concern is supporting as many customers as possible.
Developments in Blockchain:
The Blockchain is may play a key role in the Music Industry. Revelator builds software that allows artists and record labels to manage, track and market their music all from one application. The company sees the blockchain as an opportunity to simplify music rights, which remain complicated and difficult to verify, with a new Intellectual Property (IP) management system that will allow artists to register their works on an immutable ledger. They have partnered with Colu for this project.
On another front, ItBit has revealed details about the Bankchain project, a private consensus based ledger system aimed at providing enterprise financial solutions. With this, the New York based exchange has joined other Blockchain firms which are trying to seek the attention of banks that want to utilize the efficiencies of distributed Blockchain technology with private blockchains.
Technocorner:
The past week and a half has majorly been a week of innovation where ‘ecoin’ and ‘BitX’ have launched Hybrid debit cards. These debit cards are aimed to facilitate interchangeable payments in bitcoins or fiat currencies. ecoin plans to merge the bitcoin infrastructure with the existing financial climate, by taking a widely accepted form of payment like debit cards and combining it with Bitcoin to create a new Hybrid Cryptocurrency debit card. BitX is working on technology so users can also spend bitcoin offline without any internet connection. BitX and ZAZOO have announced this partnership that enable BitX users to use VCpay which works as an alternative for plastic cards.
Another interesting development is the BitcoinAlert Project, with the BitcoinAlert app that analyzes the prices historically and alerts about prices to buy or sell bitcoins. But the Technological development that trumped everything else this week would have to be ‘Filament’. Filament has raised $5 million in series A funding led by Bullpen capital, Verizon Ventures and Samsung Ventures. Filament is a decentralized IoT software stack that uses the bitcoin blockchain to enable devices to hold unique identities on a public ledger. By creating a smart device directory, Filament's IoT devices will be able to securely communicate, execute smart contracts and send microtransactions.
Article with the charts can be found here: http://www.benzinga.com/news/15/08/5779058/bitcoin-flash-crashed-this-week
submitted by blockstreet_ceo to BitcoinMarkets [link] [comments]

An investment client asked about Bitcoin, here is my memo response

What are Bitcoin, How do Bitcoins Work and Why Should We Care? November 24, 2013
Below is an actual email I sent to one of my top clients, who is a global business leader, when we were discussing Bitcoin today.
— I’ve removed any confidential information and I think the content makes for a decent and informative article about how Bitcoins work.
[I realize some technical details -- such as Bitcoin mining-- are not fully explained - this was because I wrote this for a specific person based on the style that person prefers.]
Hi ____,
(Excuse the long note, it will answer the questions you asked and also fully equip you for cocktail /water cooler conversations which I GUARANTEE will come up!)
Bitcoin works by allowing direct transfer of money/ coins peer to peer anywhere in the world…the rational for the price increase is due to supply and demand and increasing signs of this being a real and viable thing.
It’s fascinating.
HOW A very complex computer program on a shared network creates (to be mined) the digital “coins”which are basically a series of numbers….each one is unique.
WHAT These digital coins can be easily transferred, converted to USD, EUR, CNY or used to purchase tens of thousands of goods online. (Every major hacker and academic has attempted to counterfeit, hack or find flaws and numerous papers have been written which say it won’t likely happen due to the way the code is written and open source and other details.)
This has created a completely decentralized global currency instantly transferable and untrackable.
The idea of digital currency came about in the 80s — five years ago Bitcoins started — at first very experimental with tech geeks buying pizzas etc and traded at around .22 then a dollar each.
RISE IN VALUE When Cyprus collapsed, Bitcoin had it’s first major surge as it was seen by some as a gold-like alternative but with easy transport across borders. It was also seen as a black market facilitator due to its decentralized nature with underground goods reaching hundreds of millions in sales.
WINKLEVOSS Shortly afterwards, the Winklevoss twins (VCs and Facebook lawsuit winners) bought about $90 million worth or 1% of Bitcoin. Winklevoss targets a $400B market cap for Bitcoin (from $7-9b today) (someone else appears to have bought $150 mm worth this week, it’s unknown who)
CHINA / BAIDU As the price reached $100 and $200, China became interested — it’s in the news there daily now.
The massive Chinese state internet company Baidu announced they will accept Bitcoin as a form of payment. It’s unlikely Baidu would do this without the tacit approval of the Chinese government (who also knows this is a slight toward the USD which is not overt)
US Senate hearings this month were surprisingly favorable and unlikely to lead to attempts at heavy-handed regulation. (Which is logistically nearly impossible given the de-centralized nature, you would have to shut down the internet to stop it entirely)
The China interest and US hearings brought Bitcoin past the $700-800 mark in very volatile trading. (Mkt cap of 7-9 billion USD)
ACCESS /DEMAND There is only one major exchange in the US – called MtGox — it is plagued by delays from tens of thousands of applications for new accounts….just processing wires takes a week or more and an AML check takes 30 days due to backlog.
The main broke exchange in China received an investment from Lightspeed Venture Partners and China is getting something like 60,000 inquiries a day.
WHY I think Bitcoin is transformative for a few reasons:
Almost a year ago I had a conversation about Bitcoin with —-deleted——- [a leading Venture Capitalist. Basically he's interested in the space, we are looking for ways to participate]
Since then, especially based on China, I’ve become more convinced.
We are talking about global access now….. when else have Chinese citizens and EU and US been able to buy the same investment on the same platform? We know the significance of Chinese savings and interest in non fiat currency….as well as the transformative power of decentralized collaborative networks….as well as the risks in conventional global fiat currency.
Clearly if we talk in terms of it replacing even a tiny fraction of real global currency it is a huge deal…..too much in the air for that, but I think access and interest alone can bring it to a value somewhere around AAPL or the $400B the Winkelvoss twins target….this is still a small drop compared to real currency numbers but would place Bitcoin at $30-40,000 per coin.
Risks are high, it is very volatile….one article shared at [major firm] says it will be back down to $250 by months end. It can return to thin air and head back down to a penny. I thought government regulation was the largest risk but the Senate has missed that boat…unless some major event creates a compelling national need, they are unlikely to try now…toothpaste is out of the tube. So now the biggest risk is whether this is real or not….this is why China and Virgin etc. are significant.
[deleted specific recommendations particular to this person etc.]
Let me know if you want me to look at ____ XYZ – we should participate.
That’s my two cents worth! (Or .00000023 Bitcoin worth)
-Bruce
Bruce Fenton President and Managing Director, Atlantic Financial Inc.
W
submitted by Arabiansands to Bitcoin [link] [comments]

Bitcoin: A BIT of a problem

My name is Joe Average. I am the 80% of people who found out about bitcoin. I found out last week that an ATM for a new type of special currency is being released in my hometown, Vancouver BC Canada. Like many others, I'm still clueless about bitcoin, despite spending my halloween weekend researching it, trying to find out whether it's a trick or a treat (sorry I had to).
In this post, I'll list what I know about it, then list the thoughts, problems, and barriers that I, and probably 80% of the population, feel about bitcoin. These things are probably most relevant to those of you bitcoin enthusiast that have a vested interest in the success of the currency/commodity, because the general public represents a population that will influence the capacity that bitcoin can have in society.
Bitcoin has many advantages. Here are the advantages that I came across in forums and news articles: -free from government influence -zero bank fees -limited resource, naturally appreciating value -relatively anonymous -intangible, convenient to carry -irreversible transactions
And here are some problems, starting from the most relevant one which probably everyone thinks of right off the bat:
1-Bitcoin or cash? Why should I bother using bitcoin? Dozens of local merchants in my area are accepting bitcoin. Wow that's great! Now I can spend 2 hours acquiring bitcoin from a private, ungoverned, unregulated exchange (more on that later) and buy a medium belgium hot chocolate from waves (great drink by the way). Paying with card or cash? No ma'am, I'm paying with BITCOIN big teethy smile, eyebrows up and down several times Ok, bust out the ipad or whatever, spend 15 minutes waiting for the cashier to grab her ipad, unlock the screen, get a network connection at coffee shop network speeds, tap the bitpay app or w/e, load the app, scan my qr code, wait for the transaction to verify, blah blah blah, meanwhile, big ass line up forms behind me and I'm the big asshole who decided to pay with bitcoin instead of cash.
Okay, in all fairness, I'm probably being ignorant to some bitcoin app out there that cuts this whole process down from 15 minutes to just 5 minutes, the time it takes to verify transactions. But if I have to use an app, that probably costs money. So now my $4.50 dark belgium hot chocolate now costs $4.65 + 5 minutes of my life.
Hmm maybe I'll just 1) whip out some cash 2) whip out my visa card and pay it off right away so I don't incur interest fees 3) pay for it with debit, my bank doesn't charge me debit fees for using my card
2-Sending bitcoin So let's say what appeals to me is that bitcoin replaces Western Union, bank transfers, etcetc. I want to send $4,000 to Alice and Bob of ABC Co., payment for their work as hypothetical people in every accounting example I've ever read. For that amount, I'd have to pay >$100 in service fees from a money company. Or I could save myself >$100 by using bitcoin instead.
Okay great! Where do I start? Download a wallet. Done, nice. Next step, synchonize 208 weeks of ledger. Great.. oh, hang on. It's been 4 hours and I've downloaded 3 weeks. What the fuck?! How long does this take.. it doesn't even tell me how long it will take or how big the file is! computer left running overnight Awesome, just 2 more nights to go then I'll be fully syncrhonized. 2 days later hard-drive is maxed out? I needed a new one anyways. 4 days and a 500GB SSD later Now I have my wallet ready to use. Time to purchase some bitcoin!
So I purchase bitcoin, send it to Bob and Alice, and since they own ABC Co., a massive enterprise, they employ an IT guy, and he is the only guy in the company who will ever understand how to securely use bitcoin. He's behind 2 juniper firewalls (for redundancy), we VPN tunnel'd the payment code over with the pass, that way I know it went to him and nothing's been compromised. Because once the funds are sent out, it's gone, there is no insurance. Which brings me to my next point:
Bottom line: requires a lot of time to SAFELY and SECURELY send bitcoin, FEE-FREE. But that's okay because I have nothing better to do. If I had kids, errands, work, non-IT hobbies to do, $40-$100 might be worth the time it takes me to research the process of sending bitcoin out properly.
3-Bitcoin wallet services There's a whole list of companies emerging to take podium position in the race of the bitcoin wallet services world. Besides setting up a bitcoin exchange (which anyone can do in their basement), bitcoin wallets are the next biggest thing in bitcoin.
In the digital world, about 3 companies take podium position in a certain thing. Like Android/Apple/Blackberry for cell phones, Windows/Apple/Linux, Chrome/Firefox/IE, etc etc. Right now, for digital bitcoin wallets, everyone's competing to be one of those 3 major companies that everyone will use. Companies like coinbase.
These companies cost money. Coinbase has a pretty impressive talent pool. Let me introduce them to you:
Barry Kwok- Holy shit, this guy has a Masters in Engineering?! No seriously, this guy is a master of engineering. He built teams of 5 to 50 people at Google (fucking google man!). This guy is the first guy on the list, how much does he make? I'd have to guess $120k
Craig Hammell- This guy built OK Cupid. I know a guy who uses that shit to get laid, it really works, so OK cupid is probably a well-established company. Because of Craig's success with OK cupid, and the fact he looks that young, I'd say he probably doesn't make that much, just a modest $90k
Olaf Carlson-Wee- Olaf does rock-climbing, enough said. $95k
Fred Erhsam- Traded at Goldman Sachs. $150k
Charlie Lee- Invented Litecoin, worked on google chrome, google play, and youtube. $120k
Brian Armstrong- This guy has experience with Fraud Prevention. Don't know why they hired him, because as everyone's been saying, you can't fraud bitcoin. Since they don't need him, he's probably an intern.
Let's run some quick numbers: Total cost of salaries: $575,000/year Other expenses including dividends to investors: $3m/year
So this company has $3.6m a year to allocate to their consumer base of 329k of wallets, and 12k merchants. That is roughly $10.56/year per wallet or merchant. (realistically, the portion of cost between wallets and merchants would be not be split equally, and of course all these figures are pulled straight from thin air, however, this is reddit, not forbes).
That is a very low amount compared to using VISA which costs merchants $0.25/transaction+monthly service fee. As we can see, bitcoin is a great! Save some money.
But here's the problem: people fraud banks all the time. That costs money. Somebody puts $10k in their digital wallet, loses it, they're going to be pissed off. They'll start demanding it back from coinbase. The day coinbase pays 1 guy $10k compensation, the day they'll have to pay everyone that loses money like that, and that $3-mil figure I gave above will be much higher, and the fees everyone has to pay will go up. If coinbase doesn't compensate, then people will be reluctant to use bitcoin for anything other than small transactions.
This means bitcoin will not have the capacity to be adopted by regular people, like me. Either I lose big chunks of money at a time, when my digital wallet gets hacked, goes missing, frauded, etc, or I lose it in smaller chunks and frequency which is similar to a bank.
So digital wallet services are just like banks. Wait, I thought the bitcoin guys were saying banks were a bad thing?
4-Inflation vs Deflation I see a lot of bitcoin enthusiasts talking economics, which really angers me. You should read some of the things they say "inflation is bad, bitcoin actually deflates, so its good" "the government can't fuck with bitcoin, so its good" "bitcoin good, so it's good". If you're a bitcoin enthusiast and discussed bitcoin economics, you probably need to trade your internet credit for some college credits. Because seriously, that is some retarded shit. For example:
Inflation is bad, bitcoin deflates = good / The gov't can't fuck with bitcoin so it's good No. Inflation is good, yes I said it and you can quote me on that. Inflation allows job creation through lowering interest rates which encourages people and businesses to buy things. When stuff is bought, things happen. And jobs are required to make things happen. So when the government sees that "hey, our economy ain't doin too well, how bout we print some of ye ol' fashioned paper dolla bills" that's a strategic move to lower the unemployment rate and increase GDP.
The US is in shambles right now for reasons beyond inflation. The #1 reason why is labour costs too much in the US. Shaquila and Billy Bob don't want to work in a factory for $12/hr, they're too in love with hollywood and liberty, thinking they're entitled to a high paying comfortable job. Half of America thinks like that. But guess what, the Chinese don't, they're happy to pick up where Shaquila and Billy Bob left off. And because of the economies of scale thanks to their large population, that ignited over night, and now the US is left with a population that doesn't want to work. There's also a bunch of other reasons like going to war, etc, but that's debatable because there's a cost/benefit of going to war (own all the oil rigs out east to pay for things because you lazy fucks can't be bothered to make money with elbow grease).
The point is, mind fuck #1, inflation is a solution to a problem that's not related to money.
On the other side of the coin, deflation IS a bad thing.
Deflation, which bitcoin is designed to do, means that there will be fewer amounts of money to spend over time. That increases the price of things. That's good for people who are holding on to bitcoin. This encourages people to spend with bitcoin less, and save more. Mind fuck #2, saving money is bad, because it reduces GDP. It reduces the need for companies like coinbase to develop and create a product for spending bitcoin in the first place. So the more bitcoin deflates, the more its value goes up, the less people spend bitcoin on shit, the less merchants see a point in accepting bitcoin, the less merchants use bitcoin, the less people buy bitcoin, then bitcoins value goes down.
5-Limited supply of bitcoins This title should read Diminishing supply of bitcoins, but it would then be misinterpreted without an explanation. Bitcoins don't diminish, they are simply unaccounted for. Meaning, if you have bitcoins, and forget the password, it is gone forever. And in case you didn't know, people are human, making them prone to mistakes. Forgetting, etc. So, over time, enough people will lose bits and pieces of bitcoin here and there. That's going to add up over the long run. Units of measure will start going to miliBits, Microbits, ultra micro bits, ultra ultra micro bits. etc. Kind of like fiat currency, it can inflate to be infinitely large, and with bitcoin, infinitely smaller.
6-Exchanges and trading When Silk Road went down, bitcoin went up. First, naturally and by way of economics, fewer bitcoin = increased value. The Silk Road guy had $26-million USD worth of bitcoin, more than enough bitcoin to raise the market price. Followed by that, we have news, and hype, which drove higher. Then the fact prices are going up, makes a nice news article, which drives it up even more. When prices went up because of the news, incentive went up. Now the prices are so high, some people have made fortunes off of it. And that makes the news too, which drives it up again even higher.
That's a great incentive if you're a bitcoin investor. Hey, the winklevoss twins have 1% of bitcoin, all you miners go use your mining pools to break into the winklevoss account and delete the fuck out of their bitcoin wallets and backup, so you can raise the market value.
Just kidding. That's a lot of work. You know what's easier? This:
1) Start your own bitcoin exchange, no fees 100% free. 2) People will start trading on it. 3) ???? 4) Profit!
Actually step 3 isn't a mystery, you set the fucking price level to whatever you want it to be. And because it's 100% unregulated, unsanctioned, not tied to any commodities, no authority, no referee, no consortium, you can do whatever the fuck you want on it.
Without authority, believing that the prices on the bitcoin exchange is set naturally by way of price and demand is like believing in religion. You just have to believe.
Of course with public exchanges, there is some level of corruption involved, but that's why people get arrested and shit. Using bitcoin exchanges doesn't have that level of protection, and it never will. You think the governments own law enforcement is going to go after guys corrupting a private stock exchange, which trades a currency that negatively impacts their own fiat currency? Unless the government is somehow benefiting from bitcoin, which it won't by design, the police will simply have a good laugh at that.
In conclusion, there's so many flaws that I can see with bitcoin. But bitcoin enthusiasts will say otherwise. If I jumped on the bitcoin train 3 years ago, I'd probably do the same thing as you: make up some backwards economic reasoning it'll succeed, some backward political reason, etc.
So Dear Bitcoin, you just don't make enough sense to us, the general population, for us to adopt you. A great substitute for currency in the underground world, but you just don't fit with us here on the mainstream. And if you did fit, you'll end up being regulated just like currency, so what's the point? You're the same shit as my cash or cards. Fuck off. -Joe Average
submitted by smoothboi69 to Bitcoin [link] [comments]

Pump & Dump is "no longer" an acceptable term in crypto currency

Greetings Yung Astronauts!
I would like to start by saying, "There is no such thing as a bad child". I believe that children learn what they live and are products of their everyday surroundings whether it be poverty or prosperity. With that said, "There is a such thing as a bad child in crypto currency". A "wild child" who is rapidly creating new coins, mining at the speed of light and then reaping rewards through fraudulent methods of exchange trading. This means of trading is called a "Pump & Dump Scheme" and is a criminal offense on Wall Street that comes with fines, forfeiture, incarceration, parole and restitution. I know your yung minds are saying, "It's unregulated, we can do whatever we want!" But the reality is if crypto currency were regulated you would be considered a criminal. Understanding crypto is one thing, understanding securities law & regulation is another.
My point is obvious to a seasoned investor, but would be inconceivable to a yung crypto investor. NYS will be the first to basically take control of Bitcoin in the form of a license and adopted rules which I believe to be a hoax. They haven't a clue on what they are doing from the public eye and are cooperating wanting Bitcoin to work. I believe this to be true, but I also believe it to be a slight of hand on their behalf. Why? NYS regulation has nothing to do with CFTC, Federal, FINRA, or SEC regulation in the US. Ex: Medical Marijuana is legal in some US states, but not federally legalized in "any" US states, same premise will apply to Bitcoin. So now we have COIN? The brainchild of the Winklevoss stooges, a joke when they got robbed of Facebook and a still a joke today in my book. Money doesn't come with brains, these guys pay "so-called" trusted advisors, for me to take these guys serious would be a cardinal sin. They are giving Bitcoin away to it's natural born enemy, "the state" and selling it out commercially for their own personal financial agenda and objectives. Much like MC Hammer or Vanilla Ice were accused of. Hey, "Let's give this kitten to the pitbull's." I wonder what Satoshi Nakamoto is thinking? Remember Bitcoin was created for equality, not for the rich to get richer, while gaining MORE control. Why even support BTC? It will become another version of USD if we are not careful.
However, COIN which is an ETF created by the Winklevoss twins is a Bitcoin oriented Exchange Traded Fund based on the WinDex market price of Bitcoin which is Winklevoss created. I believe in the concept completely, but I believe COIN should have been launched on Coinbase as their "second" investment product which would have helped in the "self regulation" of Bitcoin, not the "joint regulation". Coinbase has enough capital and support to do this and the Winklevoss twins are in bed with them. Their sole reason for listing on NASDAQ is to gain mainstream "investor" exposure and trap real whales or bag holders they so "urgently seek" to profit tangibily on Bitcoin. The twins cannot possibly sell off their BTC, it would kill it! They need to "cross out" of their position at equal pricing (both buyeseller) to keep the price stabilized the old fashioned way, the Wall Street way. They need new blood, new money. The 2 stooges own a total of 1% of all Bitcoin's mined, so new capital will allow them to "gently liquidate" their valuable holdings and convert them to USD. They do not believe in Bitcoin, they believe in capitalism and this is their EXIT strategy. By their doing, Bitcoin will now be sanctioned by a whole "new" set of rules outside of NYS. These rules will be enforced by FINRA and the SEC if the COIN ETF gets a NASDAQ listing, it is mandatory or the Winklevoss ETF cannot list and that is a fact. My reasoning, You cannot get half pregnant!
Without boring you with all of the stock market rules and regulations, upon COIN's listing I would have to believe any NYS/US Bitcoin related exchange and/or investment vehicle will eventually fall under strict FINRA/SEC federal regulation. NYS regulation will act somewhat like the Investment Advisory Act Of 1940 to govern states individually. FINRA/SEC regulation will cover the markets in general like other investments. We might see CFTC regulation enforced if ever Bitcoin is reclassified as a commodity. So it is important to understand they are going to enforce similar regulation to Bitcoin as they did FOREX, gold, and other precious metals in which the physical side is still the wild west. They want to enforce the sale of Bitcoin, so they can weed out some who have made bad decisions in the past which is about 50% of adult crypto. Restricting people who have a criminal past or securities related charges is a standard position taking on Wall Street for investor protection purposes. While they appear to be protecting the public, their white shoe friends will take over Bitcoin and sell it through all the major wire houses generating commission checks and capital gain tax for everybody!!! I see Bitcoin's future, I really do. It's gonna work well, but we will lose our foot hold as a community, It will just become another form of Paypal.
So my rant on regulation is simple. When the IRS classified Bitcoin as an asset everything was "retroactive". Let's say they impose federal regulation and do the same thing? We are looking at many crimes committed in crypto currency and many people going to crypto prison. My main objective of this post is to educate our youth on the future laws to come. Pump & Dump is "no longer" an acceptable term in crypto currency, it cheapens this technological innovation that will change our financial landscape as we know it yesterday. When an investment trades higher in value on Wall Street it's called a "price increase", "surge in value" or something of that nature. Please understand Yung Astronauts you were taught wrong, choose your words wisely. Become the good children of crypto currency and make more money developing the alt coin side of Bitcoin, it is "our" only hope for a future with anonymity.
Talk at cha'
Gordan @GordanCrypto
submitted by GordanCrypto to Bitcoin [link] [comments]

Bitcoin Will One Day Be Worth 40 Times Price It Is Now ... The Winklevoss twins talk Bitcoin futures and fears Winklevoss twins explain the future of Bitcoin - RobGroove ... How the Winklevoss twins made billions from bitcoin The Winklevoss Twins Just Became Bitcoin Billionaires ...

At 45 times its current value, that’s a whopping price tag of $540,000 USD per Bitcoin. Why Other Assets Pose Fundamental Issues . In another section of the same blog post, the twins argue that gold, oil and US Dollar currency all have fundamental problems that contribute to the idea that Bitcoin will be a much bigger part of the future as a store of value than most old-school investors ... In April 2013, the Winklevoss twins together held $11 million in bitcoin priced at $120 a coin. That holding grew to be worth more than $1 billion in December 2017 as the price of one coin ... The Winklevoss twins —the founders of the regulatory compliant Gemini, are convinced the U.S. dollar is no longer a reliable store of value. Instead, their confidence is on Bitcoin. Gold and Oil as Store of Value Assets On Aug 27, the Winklevoss twins penned an article detailing why the digital asset may… Apart from the fact that bitcoin is hyped as one of if not the best asset store, I, as a relatively new owner, was naturally also interested in how much money this digital coin might one day be worth. Tyler and Cameron Winklevoss declare the 500,000 dollar mark to be realistic in a new det A “wake-up call and endorsement of Bitcoin”: Winklevoss Twins. Talks between Democrats and Republicans were “on the brink of collapse,” CNN reported on Friday, as the two sides’ desired stimulus totals differed by several trillion dollars. For Winklevoss, the idea that politicians could plan for the same goal with wildly varying sums of money said more about the value of the dollar ...

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Bitcoin Will One Day Be Worth 40 Times Price It Is Now ...

Cameron and Tyler Winklevoss sit down with John Biggs to discuss Wall Street's attitude toward bitcoin, their new bitcoin exchange, and their bitcoin-based e... Bitcoin Trading Explained BTC USD Price LIVE Crypto News August 2018 #bitcoin #youtube #ethereum 💰WIN $100$ Simply, watch, subscribe, like and add your com... Bitcoin Will One Day Be Worth 40 Times Price It Is Now: Gemini Exchange's Cameron Winklevoss ... The Winklevoss Twins Eat, Sleep, and Breathe Bitcoin - Duration: 18:04. TechCrunch 112,317 views ... These guys turned $11 million into a $1 billion windfall. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to... They became famous as the privileged pair of Harvard athletes who believe Mark Zuckerberg stole their idea for Facebook. Now, entrepreneurs Cameron and Tyler...

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