I have written earlier about problems in banking security and credit card security issues. But what about some other banking issues?
Banking is Broken: A Financial Revolution is Coming article tells that a trio of startups are seeking to change the way we manage our money, by focusing on the customers traditional banks are ignoring. Banks have been slow to embrace new technology.
Finland’s Holvi, Sweden’s iZettle and Estonias TransferWise all took the stage at the Slush startup conference in Helsinki last week, and while they all offer completely different services, they are share a similar goal – to empower the customers that they believe traditional banks are ignoring.
Holvi offers customers an alternative type of current account, integrating bookkeeping and money management in a clean, simple online interface. TransferWise, founded by the first ever Skype employee Taavet Hinrikus, is looking to bring the essence of Skype’s ethos of offering cut rate international phone calls to the money exchange market. Speaking at Slush last week de Geer said that iZettle was “effectively about democratising card payments.”
Keep in mind that Holvi, TransferWise and iZettle are just three of the hundreds of companies looking to cash-in on the revolution that is coming to the banking industry.
What made the article really interesting to me is that I happen to know one of the Kristoffer Lawson, Founder and CEO of Holvi. I have personally heard the story of how the company was put up, that they were applying the needed license and when they got it. But the article includes some a bold new statement: traditional banks are ignoring 80% of their customers.
Lawson believes that Holvi’s new type of account is “the future of banking” and his company is rethinking what it means to be a bank: Holvi offers customers an alternative type of current account, integrating bookkeeping and money management in a clean, simple online interface. It is designed for use by groups and organisations so they can collaborate, making it ideal for events such as Slush, which used the Holvi system for all its budgeting and ticketing operations this year.
And I have also heard of some other events in Finland do the same. The reason why such events have actively started to use the system is that Lawson had been earlier active on organizing different computer events, so he knows the needs of this type of organizations.
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Tomi Engdahl says:
Anna Hensel / VentureBeat:
Indiegogo starts listing a select number of initial coin offerings, linking to First Democracy VC, an SEC-registered crowdfunding portal — Crowdfunding platform Indiegogo announced today on its website that it will begin listing a select number of initial coin offerings …
Indiegogo starts listing initial coin offerings
https://venturebeat.com/2017/12/12/indiegogo-starts-listing-initial-coin-offerings/
Crowdfunding platform Indiegogo announced today on its website that it will begin listing a select number of initial coin offerings, in yet another step by the company to move beyond perk-based crowdfunding.
While ICOs will be listed on Indiegogo, interested backers will have to go to a portal called First Democracy VC to invest. First Democracy VC is an SEC-registered equity crowdfunding portal that was developed through a partnership between Indiegogo and equity crowdfunding site MicroVentures.
Tomi Engdahl says:
Bitcoin Regrets: How Much $100 Would Be Worth Today if You Invested Earlier
http://fortune.com/2017/12/12/bitcoin-historical-investment-values/
Tomi Engdahl says:
How blockchain technology will overcome challenges in cross-border eCommerce, P2P commerce and online marketplaces
https://medium.com/@COTInetwork/how-blockchain-technology-will-overcome-challenges-in-cross-border-ecommerce-p2p-commerce-and-1bd2c2acbd15
The lack of trust in cross-border eCommerce, peer-to-peer (P2P) commerce and online marketplaces is the leading cause of friction between buyers and sellers all around the world. Fraud, ineffective payment solutions, the lack of buyer-seller protections and costly mediation functions are major hurdles to seamless business exchanges. Cybercrime is especially on the rise with rampant chargeback fraud, merchant identity fraud and triangulation schemes
Tomi Engdahl says:
A Cryptocurrency Without a Blockchain Has Been Built To Outperform Bitcoin
https://yro.slashdot.org/story/17/12/14/2212212/a-cryptocurrency-without-a-blockchain-has-been-built-to-outperform-bitcoin?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Slashdot%2Fslashdot%2Fto+%28%28Title%29Slashdot+%28rdf%29%29
Bitcoin isn’t the only cryptocurrency on a hot streak — plenty of alternative currencies have enjoyed rallies alongside the Epic Bitcoin Bull Run of 2017. One of the most intriguing examples is also among the most obscure in the cryptocurrency world. Called IOTA, it has jumped in total value from just over $4 billion to more than $10 billion in a little over two weeks. But that isn’t what makes it interesting. What makes it interesting is that it isn’t based on a blockchain at all; it’s something else entirely. The rally began in late November, after the IOTA Foundation, the German nonprofit behind the novel cryptocurrency, announced that it was teaming up with several major technology firms to develop a “decentralized data marketplace.”
Though IOTA tokens can be used like any other cryptocurrency, the protocol was designed specifically for use on connected devices, says cofounder David Sonstebo. Organizations collect huge amounts of data from these gadgets, from weather tracking systems to sensors that monitor the performance of industrial machinery (a.k.a. the Internet of things). But nearly all of that information is wasted, sitting in siloed databases and not making money for its owners, says Sonstebo. IOTA’s system can address this in two ways, he says. First, it can assure the integrity of this data by securing it in a tamper-proof decentralized ledger. Second, it enables fee-less transactions between the owners of the data and anyone who wants to buy it — and there are plenty of companies that want to get their hands on data.
A Cryptocurrency Without a Blockchain Has Been Built to Outperform Bitcoin
https://www.technologyreview.com/s/609771/a-cryptocurrency-without-a-blockchain-has-been-built-to-outperform-bitcoin/
The controversial currency IOTA rests on a mathematical “tangle” that its creators say will make it much faster and more efficient to run.
The rally began in late November, after the IOTA Foundation, the German nonprofit behind the novel cryptocurrency, announced that it was teaming up with several major technology firms to develop a “decentralized data marketplace.”
A what, now?
Though IOTA tokens can be used like any other cryptocurrency, the protocol was designed specifically for use on connected devices, says cofounder David Sønstebø. Organizations collect huge amounts of data from these gadgets, from weather tracking systems to sensors that monitor the performance of industrial machinery (a.k.a. the Internet of things). But nearly all of that information is wasted, sitting in siloed databases and not making money for its owners, says Sønstebø.
Now, here’s where things get really interesting. Instead of a blockchain, IOTA uses a “tangle,” which is based on a mathematical concept called a directed acyclic graph. Sønstebø says his team pursued an alternative approach after deciding that blockchains are too costly—it has recently cost as much as $20 per Bitcoin transaction because of high demand—and inefficient to operate at the scale required for the Internet of things.
Part of Sønstebø’s issue with Bitcoin and other blockchain systems it that they rely on a distributed network of “miners” to verify transactions. (For more: “What Bitcoin Is, and Why It Matters”)
So IOTA has dispensed with the miners. Instead, when a user issues a transaction, that individual also validates two randomly selected previous transactions, each of which refer to two other previous transactions, and so on. As new transactions mount, a “tangled web of confirmation” grows, says Sønstebø.
Sounds great, but as Sønstebø notes, IOTA is still in “very early-stage beta.” And the high-profile names participating in its data market pilot—including Microsoft, Deutsche Telekom, and Fujitsu—suggest IOTA is onto something.
Tomi Engdahl says:
While you’re watching streaming video, your browser is secretly mining cryptocurrency
https://betanews.com/2017/12/13/while-youre-watching-streaming-video-your-browser-is-secretly-mining-cryptocurrency/
There’s a cryptocurrency goldrush on at the moment. People are investing insane sums, and also making good money — Bitcoin, Ethereum and Litecoin are all doing phenomenally well.
However, some sites are turning to mining cryptocurrency as a way to supplement falling ad revenue, and a new report from security firm Adguard has found that almost a billion monthly visitors to four popular streaming sites have unknowingly been mining Monero currency while watching videos.
Crypto-jacking — secretly using your device to mine cryptocurrency in the background — is a growing problem, and one that often bypasses adblockers.
Adguard found four video sites, with a combined total of 992 million monthly visits, were mining for Monero without their user’s knowledge. These sites are Openload — one of the most popular streaming sites in the world — Streamango, Rapidvideo and OnlineVideoConverter.
According to Adguard, OnlineVideoConverter “holds the absolute record among crypto-jackers at the moment” as the site is ranked 119th in the world, with almost 490 million visits a month.
Tomi Engdahl says:
Bitcoin Points Way to ‘Massive Change’ for Commodity Businesses
https://www.bloomberg.com/news/articles/2017-12-14/bitcoin-points-way-to-massive-change-for-commodity-businesses
Blockchain ledgers can cut trading costs, minimize fraud risk
Promise of more security, fewer documents draws BP, Tyson, UBS
Blockchain is upending the world’s financial markets with the rise of bitcoin, and now the digital-ledger system is poised to do the same next year for raw materials like food and energy.
Companies including BP Plc, ABN Amro Group NV and Mercuria Energy Group Ltd. said last month they will adapt blockchain to streamline physical energy transactions. In October, four banks joined a venture started by UBS Group AG and International Business Machines Corp. to use the technology in a platform for the global goods trade. Natixis SA and Trafigura Group Ltd. announced in March they will employ the system to finance buying and selling oil.
“We’re talking about this massive change in the way that business is being done,” said Eric Ervin, the chief executive officer of Reality Shares Inc., a San Diego fund manager that created an index to track returns of companies adopting the technology. “Everything happens automatically, without a bunch of paperwork, processing and transferring.”
Tomi Engdahl says:
UPS bets on blockchain as the future of the trillion-dollar shipping industry
https://techcrunch.com/2017/12/15/ups-bets-on-blockchain-as-the-future-of-the-trillion-dollar-shipping-industry/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
The world is run by trade. Freight and logistics in the U.S. alone account for nearly $1.5 trillion annually (2015 data).
that number is only expected to increase as we become more dependent on the international supply chain for our goods and services.
The industry, however, is not prepared for growth, as it currently sits on top of a crumbling infrastructure prone to systematic inefficiencies and rampant fraud.
The FBI estimates that cargo theft causes an annual loss of approximately $30 billion per year (U.S.), with an average theft value of $190,000. In effect, cargo theft can cost consumers up to 20 percent more for their goods.
disruption is coming to the industry in the form of blockchain technology, which promises to deliver a cheaper and more efficient system of managing logistics. Innovative startups, as well as major incumbent parties, are investing enormous amounts of time and resources in blockchain development.
Most recently, UPS announced they were going to join the Blockchain in Transport Alliance (BiTA)
The main appeal of blockchain technology lies in its ability to create decentralized and immutable ledgers — networks that have no single point of failure, are maintained by multiple parties and whose information cannot be hacked or corrupted. This increases the security and transparency of all information
Currently, the freight and logistics industry is heavily controlled by freight brokers, which exist to facilitate transactions of loads from shippers to carriers.
“It has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage. The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
One effective way transparency and efficiency can be increased is by leveraging smart contracts, the core innovation behind the Ethereum blockchain. Smart contracts are essentially self-executing contracts that are fulfilled when predefined stipulations are met.
Once a shipment is confirmed and recorded on the blockchain, it is immutable
While the premise of blockchain is promising for an industry rife with inefficiency, the technology is still very much in its early days. As of now, a shipment from East Africa to Europe could require approvals from as many as 30 different parties. By the time it reaches its destination, up to 200 different interactions might have had occurred.
Maersk Line, the world’s largest container-shipping company, has already teamed up with IBM to apply blockchain to track its cargo shipments in order to reduce the mountains of paperwork associated with each shipment.
Tomi Engdahl says:
Tobacco company makes a hard pivot to cryptocurrency mining
http://mashable.com/2017/12/14/cryptocurrency-cigar-business-pivot/?utm_cid=mash-com-Tw-main-link#i3h4MUGraiqq
Rich Cigars just made the ultimate pivot: from high-end cigars and tobacco products to cryptocurrency.
The Miami-based company announced Thursday it had become Intercontinental Technology, Inc., and was phasing out the cigar part of the business — aka its entire premise.
Instead the company is jumping into two very not tobacco-related industries: patents and “aggressive cryptocurrency mining.” And it initially seems to be paying off.
With Bitcoin, Ethereum, LiteCoin and other cryptocurrencies rallying like crazy in the past few days this seems like a smart move. Who needs a fancy cigar when there’s Bitcoin to be mined at nearly $17,000 per coin?
The seemingly random pivot attracted some attention online. One person called the move “insanity at the very best.”
Cryptocurrency mining may be lucrative in the short-term, but keep an eye on Intercontinental Technology. They are bullish on cryptocurrency’s staying power, but it might be a close-but-no-cigar situation.
Tomi Engdahl says:
Do good companies ICO?
https://techcrunch.com/2017/12/16/do-good-companies-ico/?utm_source=tcfbpage&sr_share=facebook
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Do good companies ICO?
Posted 13 hours ago by Danny Crichton (@DannyCrichton), Contributor
Do good companies ICO?
There has been a veritable explosion in the use of initial coin offerings (abbreviated ICO, sometimes also referred to as a token generating event or TGE, or a WTFLOL) to fund startups. Calculating the total investment in these offerings is complicated, but Coindesk puts the total right now at about $3.8 billion cumulatively, with the bulk invested in 2017.
That total volume pales in comparison to overall venture funding, which was approximately $41 billion last year
Tomi Engdahl says:
Steven Russolillo / Wall Street Journal:
ICO fundraising topped $4B in 2017, up from $225M in 2016, according to Autonomous Research
Initial Coin Offerings Surge Past $4 Billion—and Regulators Are Worried
Some regulators say ICOs should be regulated like securities
https://www.wsj.com/articles/initial-coin-offerings-surge-past-4-billionand-regulators-are-worried-1513235196
Tomi Engdahl says:
Stan Higgins / CoinDesk:
A man in New York allegedly stole $1.8M worth of ether cryptocurrency, kidnapping victim, forcing him to give up his digital wallet, then transferring the funds
Man Stole $1.8 Million in Ether After Armed Robbery, Prosecutors Say
https://www.coindesk.com/man-stole-1-8-million-ether-armed-robbery-prosecutors-say/
Prosecutors allege that Meza met with the victim, knowing they possessed the ether holdings and arranged to a car service for them after that meeting. According to the indictment, an as-yet-named individual connected to the crime was hiding in the vehicle, at which point they “demanded that the victim turn over his cell phone, wallet, and keys while holding the victim at gunpoint.”
From there, Meza allegedly went to the victim’s apartment where they stole the ethers, according to the DA’s office.
“We can expect this type of crime to become increasingly common as cryptocurrency values surge upward,” said Vance.
Tomi Engdahl says:
South Korea Cryptocurrency Exchange Shuts Down After Hacking
http://www.securityweek.com/south-korea-cryptocurrency-exchange-shuts-down-after-hacking
A South Korean exchange trading bitcoin and other virtual currencies declared itself bankrupt on Tuesday after being hacked for the second time this year, highlighting the risk over cryptocurrencies as they soar in popularity.
The Youbit exchange said it had lost 17 percent of its assets in the attack on Tuesday.
It came eight months after nearly 4,000 bitcoin — then valued at 5.5 billion won ($5 million) and nearly 40 percent of the exchange’s total assets — were stolen in a cyber attack blamed on North Korea.
“We will close all trades, suspend all deposits or withdrawals and take steps for bankruptcy,” the exchange said in a statement which did not assign blame for the latest attack.
All its customers will have their cryptocurrency assets marked down by 25 percent, it said, adding it would do its best to “minimise” their losses by using insurance and selling the remains of the firm.
The exchange — founded in 2013 — brokered trades of multiple virtual currencies including bitcoin and ethereum.
It is the first time that a South Korean cryptocurrency exchange has gone bankrupt.
Tomi Engdahl says:
Barclays Bank Employee Jailed for Role in Malware Scheme
http://www.securityweek.com/barclays-bank-employee-jailed-role-malware-scheme
A Barclays bank employee in London has been sentenced to six years and four months in jail for his role in a scheme to launder money stolen using the Dridex banking Trojan.
Jinal Pethad, 29, worked with money launderers Pavel Gincota and Ion Turcan to set up 105 fraudulent bank accounts for them, in an attempt to launder over £2.5 million ($3.34 million).
To ensure that the bank’s security processes didn’t block the stolen funds, Pethad was managing the accounts personally, the UK’s National Crime Agency says.
The individual was arrested in November 2016, one month after Gincota and Turcan were jailed for the conspiracy. Pethad pleaded guilty last week to conspiring to launder money between 2014 and 2016.
Tomi Engdahl says:
Bitcoin exchange Youbit shuts after second hack attack
http://www.bbc.com/news/technology-42409815
A crypto-currency exchange in South Korea is shutting down after it was hacked for the second time in less than eight months.
Youbit, which lets people buy and sell bitcoins and other virtual currencies, has filed for bankruptcy after losing 17% of its assets in the cyber-attack.
It did not disclose how much the assets were worth at the time of the attack.
In April, Youbit, formerly called Yapizon, lost 4,000 bitcoins now worth $73m (£55m) to cyberthieves.
South Korea’s Internet and Security Agency (Kisa) which investigates net crime, said it had started an enquiry into how the thieves gained access to the exchange’s core systems.
Kisa blamed the earlier attack on Youbit on cyber-spies working for North Korea. Separate, more recent, attacks on the Bithumb and Coinis exchanges, have also been blamed on the regime.
No information has been released about who might have been behind the latest Youbit attack.
In a statement, Youbit said that customers would get back about 75% of the value of the crypto-currency they have lodged with the exchange.
It said it was “very sorry” that it had been forced to shut down.
Tomi Engdahl says:
How Central Banks Are Using Big Data to Help Shape Policy
http://www.datacenterknowledge.com/business/how-central-banks-are-using-big-data-help-shape-policy
‘I do not fear computers. I fear the lack of them’: MAS exec; Asia getting big data seers, ECB creating alternate indicators
“Isaac Asimov once said, ‘I do not fear computers. I fear the lack of them,’” David Hardoon, chief data officer at the Monetary Authority of Singapore, said in a recent speech. “We are now starting to put in place the necessary tools, infrastructure and skillsets to harness the power of data science to unlock insights, sharpen surveillance of risks, enhance regulatory compliance and transform the way we do work.”
Authorities like Hardoon are tapping publicly-available sources such as Google Trends and jobs websites to help “nowcast” their economies, and confidential data like credit registers that can help identify a stressed bank. Collection of micro data increased after the financial crisis, when policy makers realized they lacked the depth of information to make appropriate decisions.
“Central banks are considering or already collecting data that is transaction by transaction, trade by trade, asset by asset, mortgage by mortgage, loan by loan,”
Tomi Engdahl says:
Bitcoin-guru sold all its bitcoins, bought another cryptocoin: “People have not understood …”
Emil Oldenburg , a man behind Bitcoin.com, no longer believes that bitcoin can become an independent world currency vis-a-vis its developers. He is now in Bitcoin’s cash.
There is no awareness of how much man has owned bitcoins. However, some reference is made to the fact that Oldenburg says he has received his pay as bitcoins for the past 3 years.
Bitcoin.com is one of the largest Bitcoin-focused websites. Oldenburg is one of its founders. He sees bitcoin at this time as a very lucrative investment, but feels that the currency value is small.
He thinks on the Swedish site BreakIt.se that Bitcoin is the most risky investor of the present.
The biggest problem for him is the small size of the bitcoin block chain that makes the switch slow and expensive. In Bitcoin, the block size is one megabyte, with Bitcoin’s cash in use in August up to eight megabytes.
“Selling and buying Bitcoins costs a lot, and when I sold all the bitcoins, I had to pay $ 50 and wait for 12 hours to go through the store, which is completely unreasonable,” he says.
According to him, the parties behind the bitcoat want the situation to remain. According to Oldenburg, they see bitcoin as a “digital gold” and a technical experiment, not one that could have an everyday use.
According to Oldenburg, a large majority have not realized that the bitcoin’s usable value is very small for these reasons. This is because few have ever sold or exchanged bitcoin anywhere, just bought it.
Source: https://www.tivi.fi/Kaikki_uutiset/bitcoin-guru-myi-kaikki-bitcoininsa-osti-toista-kryptovaluuttaa-ihmiset-eivat-ole-kasittaneet-6693311
Tomi Engdahl says:
Coinbase Adds Support For Bitcoin Cash [Update: Disabled]
https://news.slashdot.org/story/17/12/20/0055233/coinbase-adds-support-for-bitcoin-cash-update-disabled?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Slashdot%2Fslashdot%2Fto+%28%28Title%29Slashdot+%28rdf%29%29
Buy, sell, send and receive Bitcoin Cash on Coinbase
https://blog.coinbase.com/buy-sell-send-and-receive-bitcoin-cash-on-coinbase-65f1b2c7214b
Tomi Engdahl says:
Bitcoin Cash: Why the rival cryptocurrency has sent Bitcoin’s price plummeting
http://www.telegraph.co.uk/technology/2017/12/20/bitcoin-cash-rival-cryptocurrency-has-sent-bitcoins-price-plummeting/
Bitcoin is facing a major threat as a cloned cryptocurrency that shares its name and many of its key features launched on one of the largest cryptocurrency exchanges, sending Bitcoin prices tumbling.
Bitcoin’s price fell 10 per cent on Tuesday as Bitcoin Cash, a rival digital coin, arrived on Coinbase, one of the most popular cryptocurrency trading platforms. Bitcoin has fallen from almost $20,000 (£15,000) on Sunday to under $17,000 on Wednesday morning.
Bitcoin Cash was launched over the summer by a splinter faction of cryptocurrency developers. It has gained traction in recent months soaring to around $3,000 (£2,200) per coin and jumping almost 50 per cent in overnight trading.
Tomi Engdahl says:
Estonia is launching crypto currency
We’re planning to launch estcoin — and that’s only the start
https://medium.com/e-residency-blog/were-planning-to-launch-estcoin-and-that-s-only-the-start-310aba7f3790
We’re working to make e-Residency the best option globally for entrepreneurs launching a trusted ICO, while proceeding with three variants of our own ‘estcoin’ under consideration.
The startup world is being rapidly transformed by Initial Coin Offerings (ICOs).
Instead of giving up shares, many startups are now raising finance by issuing their own blockchain-based crypto coins to investors around the world.
The US, Singapore and Switzerland are currently the leading jurisdictions for entrepreneurs considering where to launch their ICOs
the amount of money being raised globally by startups through ICOs is now far in excess of the amount being raised through venture capital. Raising finance is only half the story of ICOs though. People who invest in crypto tokens issued by a startup are then strongly incentivised to support the development of that startup in other ways too
Estonia’s e-Residency programme is also a fast growing startup — albeit a government startup
Tomi Engdahl says:
The many use cases of blockchain technology
https://medium.com/@COTInetwork/the-many-use-cases-of-blockchain-technology-db464fad9fa0
With Bitcoin becoming history’s first-ever border-less, decentralized and trust-less public ledger characterized by its underlying blockchain technology, many industries around the world have been quick to join the revolution.
Tomi Engdahl says:
Cryptocurrencies have an everything problem
https://techcrunch.com/2017/12/20/cryptocurrencies-have-an-everything-problem/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
Cryptocurrencies have an everything problem
Posted 10 hours ago by John Biggs (@johnbiggs)
A mom from Arkansas, a major donor to Republican causes with very little experience in technology, wants to invest $50,000 in bitcoin. A man from Switzerland curses during a Skype call because his Korean over-the-counter exchange went down during a massive trade. An entrepreneur placed a Trezor bitcoin wallet worth $150,000 on his car key chain. Another futurist is Tweeting late at night about a failed $300,000 wire to a bitcoin exchange.
Meanwhile, Kraken is throwing up server errors every few login attempts. Coinbase can’t keep up with account creation and they can barely hire anyone to ramp up their engineering team of 20 souls. Exchanges take days to confirm new users, trapping bitcoin and cash inside their opaque innards. Shapeshift, a tool for converting currencies, is overwhelmed with work, some trades not going through for hours.
Welcome to the new cryptocurrency boom, a roiling, boiling mess of speculation, broken transactions, and confusion. And that’s just how the crypto lovers like it.
There is a common thread in the Valley positing that cryptocurrencies are like Linux.
Banks, for their part, are trying their FUD tactics as we speak with Jamie Dimon calling Bitcoiners “stupid” even as Wall Street is ramping up their crypto trading and development desks.
What we are seeing now, then, is a conscious decision by the big crypto stakeholders to give Wall Street – and, to a degree, Main Street – a ticket to the crypto show. The prices have risen not because bitcoin is particularly usable or Ethereum will ever scale. Prices have risen because in the future these are the tools that, like Apache and Netscape, will power the next financial revolution.
as long as the ecosystem is growing at rates faster than folks expect, there will be growing pains.
Lopp is working with BitGo to manage a wallet. It’s pretty hard.
“It’s hard to say if multiple 10X traffic surges are sustainable; I think folks across the industry could use a breather to catch up at this point. Lots of us are spending time fighting fires just trying to keep the services running,” he said
“Rising prices have two effects on exchanges: lack of support and slow technology,”
Further, the accretion of oversight that exchanges have added over the years – Know Your Customer requirements, document checks, and fraud prevention – have slowed exchanges to a crawl. “Many of them are unable to keep up with the new user registrations. Their databases and security infrastructure were never designed for so many users so many of them are limiting their signups now to prevent downtime due to too many concurrent users,” said Anshel Sag at Moor Insights.
The problem is that cryptocurrencies deal with money. Whereas building Django and Node were fun ways to make web programming easier, building Ethereum (although it was not clear at the time) would bring untold riches to hundreds of programmers. This stew of dedicated technologists, greedy speculators, and instant millionaires is creating a knot that no SEC auditor will ever be able to untie.
Ultimately, crypto community is facing a series of big problems and each must be solved before the technology can be taken seriously.
Tomi Engdahl says:
UBS: Bitcoin ‘has all the hallmarks of a bubble’
http://www.businessinsider.com/ubs-bitcoin-bubble-2017-12?r=US&IR=T&IR=T
UBS has reiterated its view that bitcoin, and wider cryptocurrency markets, are in a bubble.
The Swiss investment bank said in its weekly “House View” note: “We believe this has all the hallmarks of a bubble. High turnover, against limited real-world use, suggests that many buyers are seeking speculative gain. And while the supply of Bitcoins is limited, the broader stock of cryptocurrencies is not, with thousands of potential substitutes.”
“We don’t advise clients either to invest in Bitcoin or to short it – on the principal that markets can remain irrational longer than you can remain solvent,” UBS wrote in its note this week.
When UBS first warned against cryptocurrencies in October the market was worth around $175 billion at the time. As of Wednesday, it is worth over $600 billion.
While the bank is dismissive of bitcoin, it recommends clients invest in blockchain, which is the technology that was first developed to underpin the bitcoin network.
“We expect [blockchain] to generate USD 300bn–400bn of global economic value by 2027,” UBS said.
Tomi Engdahl says:
Long Island Iced Tea shares went gangbusters after changing its name to Long Blockchain
https://techcrunch.com/2017/12/21/long-island-iced-tea-shares-went-gangbusters-after-changing-its-name-to-long-blockchain/?utm_source=tcfbpage&sr_share=facebook
Want to increase company value on the open market? Just change your name to something blockchain. At least, that worked for the Long Island Iced Tea Corp after changing its name to Long Blockchain Corp.
In what is the most 2017 thing ever, company shares soared by as much as 500 percent in pre-market trading this morning after the company announced the name change, settling back to about a 275 percent gain.
Tomi Engdahl says:
The rise of the crypto accelerators
https://techcrunch.com/2017/12/20/the-rise-of-the-crypto-accelerators/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
As cryptocurrency fever grips the tech world, and blockchain technologies gradually become more viable, there is a new wave of accelerators and incubators appearing to service this growing ecosystem. Some are covering funding and services, some are about services only. It’s fair to assume, however, that some kinds of cryptocurrency will be changing hands, of course, not to mention the odd token here and there.
Tomi Engdahl says:
Bloomberg:
Sources: Goldman Sachs is setting up a cryptocurrency trading desk and expects it to be running by June 2018
Goldman Is Setting Up a Cryptocurrency Trading Desk
https://www.bloomberg.com/news/articles/2017-12-21/goldman-is-said-to-be-building-a-cryptocurrency-trading-desk
The business may be running by the end of June, two people say
CEO Blankfein has said the firm is mulling a bitcoin strategy
At least one of Wall Street’s biggest firms is growing more comfortable with cryptocurrencies.
Goldman Sachs Group Inc. is setting up a trading desk to make markets in digital currencies such as bitcoin, according to people with knowledge of the strategy. The bank aims to get the business running by the end of June, if not earlier, two of the people said. Another said it’s still trying to work out security issues as well as how it would hold, or custody, the assets.
Tomi Engdahl says:
Bloomberg:
Tax overhaul bars cryptocurrency owners from deferring capital gains taxes when trading one type of virtual currency for another
Tax-Free Bitcoin-to-Ether Trading in U.S. to End Under GOP Plan
https://www.bloomberg.com/news/articles/2017-12-21/tax-free-bitcoin-to-ether-trading-in-u-s-to-end-under-gop-plan
Investors in bitcoin and other virtual currencies would lose a lucrative tax break under the Republican tax bill that’s on its way to President Donald Trump’s desk.
New limits in the bill would bar cryptocurrency owners from deferring capital gains taxes when trading one type of virtual currency for another — effectively closing a gray area in the tax code, experts say.
Tomi Engdahl says:
Fake Bitcoin Wallet Apps Removed from Google Play
http://www.securityweek.com/fake-bitcoin-wallet-apps-removed-google-play
Three fake Bitcoin applications were recently removed from Google Play after security researchers discovered they were tricking users into sending funds to their developers, mobile security firm Lookout has discovered.
The impressive increase in Bitcoin value over the past several months has stirred interest from individuals worldwide, including cybercriminals. The number of attacks involving the cryptocurrency has increased recently, and it appears that they moved to mobile as well.
3 fake Bitcoin wallet apps appear in (and are quickly removed from) Google Play Store
https://blog.lookout.com/fake-bitcoin-wallet
Tomi Engdahl says:
Coinbase suspends trading amid cryptocurrency rout
https://techcrunch.com/2017/12/22/coinbase-suspends-trading-amid-cryptocurrency-rout/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
Coinbase, the most popular site for cryptocurrency transactions in the U.S., has suspended all trading activity today amid a crash in cryptocurrency prices.
A statement on the company’s website this morning read, “Due to today’s high traffic, buys and sells may be temporarily offline. We’re working on restoring full availability as soon as possible.”
Tomi Engdahl says:
Bitcoin slump sees trades suspended on certain exchanges
http://www.bbc.com/news/business-42457983
Bitcoin plunged on Friday, extending a fall that saw the crypto-currency lose more than a third of its value from a record of nearly $20,000 (£15,000).
The crypto-currency’s price dipped below $11,000 on Friday, according to the Coindesk exchange website, before recovering to about $12,000.
Bitcoin has had a blistering trip over the past 12 months. Its price at the start of the year was $1,000.
It is now on track for its worst week since 2013.
What do people say about Bitcoin?
One of this week’s most striking comments comes from Denmark’s central bank governor, who called it a “deadly” gamble.
Earlier this month, the head of one of the UK’s leading financial regulators warned people to be ready to “lose all their money” if they invested in Bitcoin.
Tomi Engdahl says:
Bitsonline:
Japan’s GMO Internet opens its first crypto-mining facility, based in Northern Europe, entering a field largely dominated by Chinese players
Japanese Internet Leader GMO Starts Bitcoin Mining in Europe
https://www.bitsonline.com/gmo-group-begins-bitcoin-mining/
GMO Group, a publicly listed Internet service provider in Japan, has officially kicked off its new cryptocurrency mining business in Northern Europe. From here on, according to the Japanese conglomerate, the new project will augment in phases.
The project aims to understand the nascent cryptocurrency space further, and introduce modern mining infrastructure. First announced in September 2017, it’s a joint venture with its European legal association. It will use 7-nanometer process technology chips in the mining process.
Tomi Engdahl says:
Wall Street Journal:
A look at the limited powers the SEC and the Commodity Futures Trading Commission have to regulate cryptocurrencies in the US
Who Regulates Bitcoin Trading? No U.S. Agency Has Jurisdiction
https://www.wsj.com/articles/who-regulates-bitcoin-trading-no-u-s-agency-has-jurisdiction-1514116800
Futures regulators at the CFTC recently sounded an alarm on leveraged trading on unregulated exchanges, while the SEC cracks down on ICOs
Investors are frantically trying to learn everything they can about bitcoin—and so are regulators.
Furious trading in cryptocurrencies is testing many in the Trump administration who are eager to embrace financial innovation, after nearly a decade of tighter clamps on risk-taking put in place after the 2008 financial crisis.
The Commodity Futures Trading Commission, the agency with closest oversight of bitcoin trading, began the year by launching an in-house lab to encourage advances in blockchain, the technology that underpins digital currencies. Yet the regulator recently sounded an alarm on bitcoin itself, noting most exchanges are completely unregulated while the cryptocurrency is prone to wild price swings and potential flash crashes.
The CFTC has labeled bitcoin a commodity, but as with other commodities, the agency mostly lacks jurisdiction over the primary market: It regulates corn futures contracts but not the buying and selling of corn itself, for instance. As a result, bitcoin exchanges don’t have to tell participants how they operate, such as whether they offer preferential access to certain traders.
“A lot of people, retail traders in particular, have gotten used to securities laws and commodities laws protecting them,” said Kipp Rogers, a former proprietary trader who is now a blogger and researcher. “And so they don’t just even know what to be on guard for.”
“There is clearly demand for bitcoin investments, but the regulators are struggling with how to balance new tools for capital formation with the need for investor protections,”
The SEC is waging its own cryptocurrency battles. It has come down hard on initial coin offerings, or ICOs, a type of unregulated fundraising in which people pay in cash or in cryptocurrencies to get new digital tokens that can entitle their owners to future products or services developed by the company. The SEC has said many of the deals are actually securities sales.
“They are just digging in on a case-by-case basis and trying to look at all of the token offerings,”
“When there is a lot of money in the space, you get well-meaning entrepreneurs and you get charlatans only looking to scalp, and pump and dump, and flip ICOs,”
Tomi Engdahl says:
Bitcoin Recovers Some Losses After Its Worst Week Since 2013
https://slashdot.org/story/17/12/26/2130242/bitcoin-recovers-some-losses-after-its-worst-week-since-2013?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Slashdot%2Fslashdot%2Fto+%28%28Title%29Slashdot+%28rdf%29%29
Bitcoin fell nearly 30 percent at one stage on Friday to $11,159.93. At 3:09 p.m. (2009 GMT) on Tuesday, bitcoin BTC=BTSP was up 15 percent at $16,030 in light trading on the Luxembourg-based Bitstamp exchange. The digital currency had risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on Dec. 17 on Bitstamp and to over $20,000 on other exchanges.
Bitcoin recovers some losses after its worst week since 2013
https://www.reuters.com/article/uk-global-bitcoin/bitcoin-recovers-some-losses-after-its-worst-week-since-2013-idUSKBN1EK0AH
Tomi Engdahl says:
Cash Might Be King, but They Don’t Care
https://news.slashdot.org/story/17/12/26/1519255/cash-might-be-king-but-they-dont-care
In Midtown and some other neighborhoods across New York City, cashless is fast on its way to becoming normal, The New York Times reports, sharing anecdotes where merchants have refused to accept bills from customers
Cashless businesses were once an isolated phenomenon, but now, similarly jarring experiences can be had across the street at Sweetgreen, or two blocks up at Two Forks, or next door to Two Forks at Dos Toros, or over on 41st Street at Bluestone Lane coffee. In the future, when dollar bills are found only in museum display cases, we will look back on this moment of transition and confusion with the same head-shaking smile with which we regard customs on the Isle of Yap in Micronesia, where giant stone discs are still accepted as payment for particularly big-ticket items. Some people already live in this cashless future.
Cash Might Be King, but They Don’t Care
https://www.nytimes.com/2017/12/25/nyregion/no-cash-money-cashless-credit-debit-card.html
The other day at Dig Inn, a just-opened lunch spot on Broadway and 38th Street in Midtown Manhattan, Shania Bryant committed a consumer faux pas. She placed her order for chicken and brown rice and yams, and when she got to the register, she held out a $50 bill.
“Sorry,” the cashier told her. “We don’t take cash.” Not, “We don’t take $50s.” No cash. Period.
“What?” Ms. Bryant asked.
The cashier patiently explained. Credit and debit cards were fine, as was the easy-to-download Dig Inn phone app. But the almighty dollar was powerless.
“I’ve never experienced that before,” said Ms. Bryant, 20, an assistant to a designer. “I guess we’re in new times.”
Indeed. Cashless businesses were once an isolated phenomenon, but now, similarly jarring experiences can be had across the street at Sweetgreen, or two blocks up at Two Forks, or next door to Two Forks at Dos Toros, or over on 41st Street at Bluestone Lane coffee. In Midtown and some other neighborhoods across New York City, cashless is fast on its way to becoming normal.
But it is not quite normal yet. So the cashier at Dig Inn cut Ms. Bryant a break.
“Just this one time, we’ll give it to you on the house,” she said, handing over the bag. “But just so you know, in the future.”
Tomi Engdahl says:
Craig Timberg / Washington Post:
Experts say Bitcoin’s boom is a boon for extremist groups and some far-right leaders, with Bitcoin adoption gaining new urgency after Charlottesville rally — After Charlottesville’s bloody Unite the Rig
Bitcoin’s boom is a boon for extremist groups
https://www.washingtonpost.com/business/technology/bitcoins-boom-is-a-boon-for-extremist-groups/2017/12/26/9ca9c124-e59b-11e7-833f-155031558ff4_story.html
After Charlottesville’s bloody Unite the Right rally in August, technology companies tightened rules against hate speech and banned many extremists from using Web hosting services, social media platforms and online payment systems.
But some on the furthest edges of the political spectrum soon found an effective tool for thwarting this industry crackdown: bitcoin.
Richard Spencer, a prominent member of the alt-right, a movement that espouses racist, anti-Semitic and sexist views and seeks a whites-only state, had gone as far as declaring bitcoin “the currency of the alt right.”
Those who began acquiring bitcoin in August already have reaped substantial returns, despite the recent volatility in its price.
Extremist figures who invested in bitcoin as a bulwark against efforts to block their political activity now find themselves holding what amount to winning lottery tickets. The proceeds could be used to communicate political messages, organize events and keep websites online even as most mainstream hosting services shun them, experts say.
“Bitcoin is allowing people in the movement to go beyond cash in an envelope or a check,” said Heidi Beirich, head of the Intelligence Project at the Southern Poverty Law Center, a nonprofit group that tracks extremists. “It’s really a godsend to them.”
First created in 2009 by an anonymous computer programmer, bitcoin is a digital currency that is not issued by any government and has no physical manifestation, such as actual coins or bills. Someone who wants to buy bitcoin can sign up for one of many online exchanges — each account gets a unique identifier of numbers and letters — and pay dollars (or other traditional currency) for the digital currency. People can also send bitcoin to others or conduct transactions at any of a growing list of businesses, nonprofit groups and financial institutions that accept it.
A secure, continuously updated ledger called the blockchain records all transactions in a publicly visible way, assigning each an alphanumeric record. Unlike the closely government-regulated banking systems that record traditional financial transactions, the blockchain is completely decentralized, relying on complex mathematical calculations across countless computers worldwide.
Such a system makes it difficult for regulators and law enforcement agencies to monitor assets or know the identities of particular account holders.
Tomi Engdahl says:
Crypto prices suffer as Korean government announces new regs, potential ban
https://techcrunch.com/2017/12/28/korean-government-crypto-prices/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
The South Korean government announced new legislation today that would put increasingly tough regulations on the country’s burgeoning cryptocurrency markets. Under the legislation, Korea, which is the third largest market for cryptocurrencies in the world after the U.S. and Japan, would ban anonymous accounts and continually monitor crypto exchanges
Tomi Engdahl says:
Finally a Smart Way To Invest in BitCoin? NO
Richard Branson says scammers are using his name to dupe investors
https://www.google.fi/amp/s/amp.theguardian.com/business/2017/may/17/richard-branson-virgin-says-scammers-are-using-his-name-to-dupe-investors
Virgin billionaire says people told him they were led to believe he was involved in investments that turned out to be fake
Tomi Engdahl says:
This company will self-destruct after its ICO
https://techcrunch.com/2017/12/26/this-company-will-self-destruct-after-its-ico/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
Investors and entrepreneurs are moving into a world where token networks influence the way new businesses are established and run. This is a sea change, a complete rethinking of the startup model for network businesses, and if businesses aren’t ready, they will be left behind.
Network businesses — especially the ones that are harder to grow and monetize and have historically used advertising — uniquely benefit from being implemented as token networks rather than companies servicing customers. “Token Networks” change the way we think about startups
And yet, recent weeks show strong headwinds for ICOs.
Two opposing fears are holding back the move to token-networks: a fear of the absence of governance on one side and a fear of regulation on the other.
Burn it all down. Create a self-destructing company which would start off as a traditional company with equity investment but at some point discard its “corporate shell” and switch to a decentralized network governance structure.
Part of the problem is that the rulebook governing token-network formation and fund-raising is still being invented & written.
The key driver for the fundraising success of many of the ICOs is the availability of “free money” thanks to crypto-angels born through one of the fastest waves of wealth creations in modern history.
The sheer amount of money flowing into the market allowed early ICOs to have no governance structure whatsoever. Like in any nascent field, there are scams and scammers. Penny-stock IPOs have gone through a similar process before
Tomi Engdahl says:
Ten years in, nobody has come up with a use for blockchain
https://hackernoon.com/ten-years-in-nobody-has-come-up-with-a-use-case-for-blockchain-ee98c180100
Everyone says the blockchain, the technology underpinning cryptocurrencies such as bitcoin, is going to change EVERYTHING. And yet, after years of tireless effort and billions of dollars invested, nobody has actually come up with a use for the blockchain—besides currency speculation and illegal transactions.
Tomi Engdahl says:
South Korea proposes tighter Bitcoin rules, hinting at an outright ban
The government is considering an outright ban
https://www.theverge.com/2017/12/28/16826888/south-korea-bitcoin-regulations-anonymous-accounts
The South Korean government is cracking down on bitcoin, with proposed legislation seeking to limit how conventional banks interact with bitcoin and other cryptocurrencies. The law would prohibit South Korean companies from providing settlement services for cryptocurrency transactions, a crucial part of credit and debit card transactions.
Another set of rules issued earlier this month restricted financial firms from investing in cryptocurrencies more broadly, although the rules also levied capital gains tax on any money conventional investors made from buying and selling the currency.
The proposed law would also prohibit companies from selling bitcoin anonymously, in accordance with the “Know Your Customer” rules implemented as an anti-money laundering practice at banks across the world. Many US bitcoin providers have already adopted know-your-customer procedures, after a number of high-profile money laundering prosecutions against noncompliant providers.
Tomi Engdahl says:
How Capital One is embracing open source
https://opensource.com/business/16/11/capital-one-open-source?sc_cid=70160000001273HAAQ
After years of proprietary and closed source solutions, organizations in the financial sector are coming around to open source software in a big way.
Tomi Engdahl says:
CRUNCH NETWORK
Financial technology startups emerged as serious challengers to financial services in 2017
https://techcrunch.com/2017/12/29/financial-technology-startups-emerged-as-serious-challengers-to-financial-services-in-2017/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&sr_share=facebook
All the attention in financial services this year has gone to the newest kids on the block: cryptocurrencies. With bitcoin now eclipsing $15,000 and Coinbase adding more than 300,000 users in one week alone, it’s easy to see why.
While cryptocurrencies stole the spotlight, a clutch of companies were quietly working behind the scenes to slowly bring the financial services establishment to its knees. It may turn out that these startup entrants of the last several years will prove to be the more relevant disruptors.
Tomi Engdahl says:
Fred Wilson / AVC:
Three interrelated macro themes dominated this year in tech: the breakout of crypto, beginning of the end of white male dominance, and the backlash against tech
What Happened In 2017
http://avc.com/2017/12/what-happened-in-2017/
2017 is the year when crypto/blockchain entered the frenzy phase. Over $3.7bn was raised by various crypto teams/projects to build out the infrastructure of Internet 3.0 (the decentralized Internet). To put that number into context, that is about equal to the total seed/angel investment in the US in 2017.
This is the biggest story in tech in 2017 because transitions from Internet 1.0 to Internet 2.0 to Internet 3.0 cause tremendous opportunity and tremendous disruption. Not all of the big companies of the dialup phase (Yahoo, AOL, Amazon, eBay) made a healthy transition into the mobile/broadband phase. And not all of the big companies of the broadband/mobile phase (Apple, Google, Facebook, Amazon) will make a healthy transition into the decentralized phase. Some will, some won’t.
In the venture business, you wait for these moments to come because they are where the big opportunities are. And the next big one is coming.
Tomi Engdahl says:
Kyle Samani / Forbes:
Ripple may be a great blockchain-based tech for banks, but the valuation of its XRP token reflects the unlikely hope it becomes a global reserve cryptocurrency — In August, the hedge I cofounded, Multicoin Capital, published an analysis of XRP, the native token of the Ripple network.
http://www.forbes.com/sites/ksamani/2017/12/20/the-bear-case-for-xrp-bitcoin-futures-edition/
Evelyn Cheng / CNBC:
Ripple surged 50%+ on Friday and is now valued at ~$85B, surpassing Ethereum’s market cap and becoming the second-most valuable cryptocurrency — – Officially called XRP, ripple climbed 55.9 percent to a record high of $2.23 Friday afternoon, according to CoinMarketCap.
http://www.cnbc.com/2017/12/29/ripple-soars-becomes-second-biggest-cryptocurrency-by-market-cap.html
Tomi Engdahl says:
Matthew Hughes / The Next Web:
Visa Europe terminates card issuer WaveCrest’s membership, prompting some cryptocurrency debit card providers like Bitwala and Cryptopay to suspend services
Multiple Bitcoin debit card providers suspend service under orders of Visa
https://thenextweb.com/hardfork/2018/01/05/spending-bitcoin-with-a-debit-card-just-got-a-lot-harder/
The Bitcoin community is reeling after several pre-paid crypto debit card providers abruptly suspended service. The companies affected include Bitwala, Cryptopay, Wirex, and TenX.
These services allow individuals to spend cryptocurrencies — predominantly Bitcoin — in traditional brick-and-mortar establishments through a debit card issued by one of the major providers, Visa and MasterCard.
Users of other bitcoin debit card services have reported receiving emails from WaveCrest informing them that they had to close all WaveCrest debit cards with immediate effect. The email says:
This move has upended a thriving industry, with several major players. It has also had dire consequences for users
TNW just received comment from Visa Europe, who said:
We can confirm that WaveCrest’s Visa membership is being terminated due to continued non-compliance with our operating rules. All of WaveCrest’s Visa card programmes will be closed as a result.
Visa has other approved card programmes that use fiat funds converted from cryptocurrency in a number of jurisdictions. The termination of WaveCrest’s Visa membership does not affect these other products.
Visa is committed to the security of its ecosystem and compliance with Visa’s operating rules is critical for ensuring the safety and integrity of the Visa payment system.
Tomi Engdahl says:
REUTERS: Speculators raised net short bitcoin positions in Dec 26 week -CFTC
https://m.kauppalehti.fi/uutiset/reuters-speculators-raised-net-short-bitcoin-positions-in-dec-26-week–cftc/HUtnqPhV
Tomi Engdahl says:
Bloomberg:
As China mulls regulating power-hungry bitcoin mining, some of the biggest miners including Bitmain, BTC.Top, and ViaBTC open facilities in US, Canada, Iceland
Bitcoin Miners Are Shifting Outside China Amid State Clampdown
https://www.bloomberg.com/news/articles/2018-01-05/bitcoin-miners-are-shifting-outside-china-amid-state-clampdown
Policy makers outlined curbs on mining this week, people say
Canada, Iceland, U.S. are among alternative destinations
As China’s crackdown on cryptocurrencies broadens to bitcoin miners, some of the industry’s biggest players are shifting operations overseas.
Bitmain, which runs China’s two largest bitcoin-mining collectives, is setting up regional headquarters in Singapore and now has mining operations in the U.S. and Canada, Wu Jihan, the company’s co-founder, said in an interview. BTC.Top, the third-biggest mining pool, is opening a facility in Canada and ViaBTC, ranked No. 4, has operations in Iceland and America, their founders said.
The moves underscore how China’s once-dominant role in the world of cryptocurrencies is shrinking as policy makers clamp down.
While the moves are unlikely to have a noticeable effect on bitcoin transaction speeds, they could reshape the cryptocurrency mining industry. Miners have until recently flocked to China because of the country’s inexpensive electricity, local chipmaking factories and cheap labor. They now have little choice but to look elsewhere.
Tomi Engdahl says:
RIP IPO (1602-2018)
https://techcrunch.com/2018/01/06/rip-ipo-1602-2018/?ncid=rss&utm_source=tcfbpage&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=FaceBook&sr_share=facebook
In comparison to an anemic 2016 for venture-backed technology IPOs, 2017 was a much better year.
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RIP IPO (1602-2018)
Posted 10 hours ago by Danny Crichton (@DannyCrichton)
RIP IPO (1602-2018)
In comparison to an anemic 2016 for venture-backed technology IPOs, 2017 was a much better year. Companies as diverse as Yext, Cloudera, Blue Apron, StitchFix, and SendGrid all went public last year, not to mention one of the most anticipated IPOs of the past few years, Snapchat. Looking forward to this year, there are a bunch of potential companies on the docket that could go public, and times couldn’t be better given the record highs of the S&P 500 and the Dow.
Now, I know what you are thinking: you just declared the IPO dead this year, you weekend clickbaiter. How can a robust market be the death of the IPO? Well, you clicked, so let’s get started.
There are growing dark clouds on the horizon for the future of IPOs. It looks likely that Spotify will run a direct listing, bypassing bank underwriting on the way to the public markets. Blockchain is increasingly drawing the attention of retail investors cynical of IPOs and their corruption. And funds like the SoftBank Vision Fund are increasingly raising private capital to protect companies from the ravages of vulture funds.
At issue is an increasing awareness that the current IPO system is corrupt beyond belief, an insiders game at the end of a company’s growth cycle that rewards those who know the right people while shortchanging retail investors in the process. That awareness is not going to recede, especially when alternative options are increasingly viable.
Obviously, companies are going to “go public,” in the sense that they will publicly trade a security of some kind. What’s changing though is that the old regime of big banks charging large fees to underwrite an IPO is crumbling and being replaced by a robust set of alternatives. Bankers are even starting to lose their jobs to automation
Tomi Engdahl says:
Wolfie Zhao / CoinDesk:
Dogecoin market cap hits $1B+; price has risen 400%+ in the past month; creator says it’s a sign of broader market excess as it hasn’t been updated in 2 years — Dogecoin, the parody coin named for an internet meme featuring a Shiba Inu dog, has broken off the leash.
Dogecoin Market Cap Hits $1 Billion, to Its Creator’s Dismay
https://www.coindesk.com/dogecoin-market-cap-hits-1-billion-creators-dismay/
Dogecoin, the parody coin named for an internet meme featuring a Shiba Inu dog, has broken off the leash.
Nearly forgotten since its heyday in 2014, over the past month the cryptocurrency’s price has increased more than 400 percent, setting a new all-time high Thursday above $0.01.
This price surge pushed dogecoin’s market capitalization above $1 billion, data from CoinMarketCap shows.
Yet while more than $101 million in trading volume was seen in dogecoin over the past 24 hours, the creator of the project is worried this is a sign of broader market excess.
“To me, this proves that we don’t need shiny features or a ton of innovation and even with a conservative – and in my own case completely distracted – development team for a boom,”
Tomi Engdahl says:
Ryan Selkis / TwoBitIdiot:
Thoughts on cryptocurrencies for 2018, including prices and investing, people involved, taxes, ICOs and crypto funds, promising applications, and more
95 Crypto Theses for 2018
https://medium.com/@twobitidiot/95-crypto-theses-for-2018-ca7b74f8abcf
Tomi Engdahl says:
Vinny Lingham:
Thoughts on surprisingly successful Bitcoin Cash fork of Bitcoin that allowed 2 strongly opposed communities to pursue their visions without hurting each other
A Tale of Two Bitcoins
https://vinnylingham.com/a-tale-of-two-bitcoins-20375d49d3d3