Banks and old fuddy duddies are increasingly vocal about their doubts over the practicality of cryptocurrency.
"It's fluff!" "It's not real!" "It's a bubble!" "It has no real world application." "It's not safe."
All these talks of FUD (Fear, Uncertainty and Doubt) going around are not without its merit.
How do you value something that is basically churned out of just computers crunching numbers and wasting electricity? Bitcoin has a finite supply which makes it valuable, but on that same vein, we also now see that it's just as possible to duplicate money with a declaration of a fork. Some merchants are accepting Bitcoin transactions, but the numbers are probably still lesser than the money-for-gold market in the Warcraft computer game community.
So it's not surprising to see why so many folks from the older generation are not really embracing cryptocurrencies. The recent spat of hacking and malware news aren't really making it easy for the industry to stand tall as a credible and safe alternative to fiat currencies either.
Perhaps the biggest mistake that the older generation can make about innovation is in trying to make sense of it. The young people don't have that problem. They grew up in a generation that pays real money for digital goods in games. Young people throw money around in support of products and ideas that they like on Kickstarter and Indiegogo, and sometimes these products never even see the light of day. We get apps like BigO turning unknowns into overnight minor celebrities and getting paid just by doing god-the-phark-knows-what it is that they do on BigO. A friend of mine gets paid in likes and BigO money for streaming herself having lunch. Mind blowing.
Things are already happening around us that don't make sense. Maybe it's time we stop trying to hammer our understanding onto cryptocurrency based on old world beliefs.
Francisco Blanch, Head of Global Commodities and Derivatives Research at Bank of America, believes that the only way to legitimize cryptocurrency is to instil legal framework and subjugate it with regulatory guidelines.
A Morgan Stanley analysts’ report, written by James Faucet, and published in June 2017 states that cryptocurrencies are more like “investment vehicles” which are actually more inconvenient to use as a form of payment as compared to credit or debit cards. There are also no clear reasons as to why cryptocurrencies are increasingly becoming popular and are on a massive surge.
But regardless of what I or you or Blanch or Faucet think about the future of cryptocurrency, the fact remains that right now, Bitcoin is averaging daily trades of $1 billion USD according to statistics in recent months. Daily trades sometimes exceeded $2 billion USD. Bitcoin's volatility has decreased as it builds liquidity and scale, but it's still not at the banking industry's comfort level.
A lady I met on a cryptocurrency chat group who lives in Angola, South Africa, says that cryptocurrency was the only way that she and her people are able to circumvent ridiculous banking laws in their country which, she claims, seek to keep them in perpetual poverty. Countries are also finding it harder to keep their money and citizens in check especially with money moving around the digital sphere so freely. For every good that cryptocurrency brings to the table, there are also the darker side of the internet that proliferates from this. Countries and regulatory bodies are right in feeling like they got their testicles caught in a bear trap.
However, for the most parts, I feel that FUDers, and even the reputable economist and financial analyst, Peter Schiff, just don't understand human behaviour and collective social mindset. Full recognition of the ideology and technology behind cryptocurrencies is essential when it comes to analysing this growing trend.
It almost feels like if something seems too way out of our realm of understanding, we just brush it off as rubbish. Unless of course, they actually do understand the power of cryptocurrency and realised it to be a threat to their existence and the prevailing print-on-demand monetary system. That would make the most sense as to why thy try so hard to use whatever vestige of their authority to shut down cryptocurrency.
So should we be worried about that? Well, here's the good news: The only way they can shut down cryptocurrency is to shut down the internet. Now, that's not going to happen is it?
Welcome to the next level of industrial revolution, suckers.
Apple Approves Dash as a Cryptocurrency (and why this is an important milestone)
One of the coins that I've been a strong supporter off but too poor to afford to become a masternode of is Dash; but I'm working hard to change all that. One day... I shall own myself 1000 Dash coins. #DashHopes.
The chase towards the 1000 coins might be a little further now as I foresee Dash prices recovering quickly after his Bitcoin forking drama hot on the tails of the latest report that Apple has approved (and recognised) Dash as a digital currency and making Dash wallet available on the App Store.
The official recognition by Apple of Dash as a digital currency is expected to have positive impacts on the currency, bolstering credibility and the use of the currency. Dash users can now confidently use official Dash wallets on their mobile devices.
This is another sign that cryptocurrency is or has gone mainstream. The main concern that traditional investors have about cryptocurrency not having real world value is quickly eroding away with each new mainstream adoption.
Say what you will about cryptocurrency being a pyramid scheme or a fad, but as an innovation cryptocurrency and blockchain technology is definitely going to be a disruptive market force in the next few years.
You can either resist the change, or try to move with the times and benefit from this industrial revolution whether you believe in it or not.
In my last article I talked about why you should use Bitcoin if you haven't. This coming week (28 July - 7 August 2017) would be a good time to get in on the action if you haven't already, as experts forecast Bitcoin to crest towards the 5,000 USD mark by the end of the year. But I digress...
So today, I want to talk about the other parts of Bitcoin that isn't all about money. Here's a lesson on language and history.
If you are an avid user of Bitcoin, you would probably understand the term ‘Cryptography’. The term is a combination of two Greek words ‘Kryptos’ and ‘Graphein’ in which it can literally be translated into ‘Secret’ and ‘Writings’.
The process of ‘secret writing’ dates back to the prehistoric days when our ancestors were carving messages on cave walls. This process is in today’s world referred to as ‘Cryptography’ and it is becoming ever more relevant and important as with rapidly developing technologies, particularly within the financial industry.
All payment forms or money used digitally – online – are classifiable as ‘digital currencies’. Bitcoin as well as all other altcoins are classified as a ‘Cryptographic Currency (Cryptocurrency)’ which falls under the family of digital currencies. Bitcoin, as well as your virtual money on online games, and your PayPal balance are all considered as digital currencies. Whilst they are all classified as digital currencies, there are factors which make a currency a ‘cryptocurrency’.
Cryptocurrencies such as Bitcoin and Ethereum involve the practice of ‘Cryptography’, a programming technique used to further secure information within computer networks and systems. This is often achieved through securing the communication channel between the two parties – sender and receiver of information – through enabling encryption/passwords/secret keys.
When we use cryptocurrencies such as Bitcoin, our transactions are fully encrypted through the process of ‘cryptography’ with none of our personal information attached to the transaction. All we ever need to send or receive a cryptocurrency is our cryptocurrency address and this is what makes most cryptocurrencies ‘anonymous’ or ‘pseudonymous’.
Cryptocurrencies would not exist without the process of ‘cryptography’. In fact, the word ‘cryptocurrency’ is a short form of the two words ‘cryptographic currency’. Without this process, cryptocurrencies would not be as pseudonymous or anonymous as it is. If you are an avid user of Bitcoin and other cryptocurrencies, you would understand the importance of this feature. It is what makes them the most democratic currencies of our times – anonymous/pseudonymous and peer-to-peer transactions.
In a world where our personal information is effortlessly leaked through the web, it is becoming ever more important to protect our identities online. The simple idea of ‘encrypting’ transactions has a great effect on our prevailing financial system, though this also means that unlawful activities and dark net transactions get to proliferate with this innovation as well.
But we need to see innovation from a larger picture: It is a revolution in which we are just realizing the importance of the democratisation of our traditional monetary system with cryptocurrencies via the process of ‘Kryptos-Graphein’.
This is the future.
If you aren't too busy getting triggered reading social commentaries and have kept up to speed with the latest trends around the world, you might have noticed the word Bitcoin popping up more frequently than before. That's because Bitcoin is facing its biggest change since it was first discovered (it's more poetic than saying 'developed' or 'coded').
If you are still unsure if digital currency is a real thing or have never heard of it before, you are probably missing out quite a fair bit.
Bitcoin, as well as many other cryptocurrencies are thriving to change the way how our traditional monetary system works. It has made banks look old-fashioned and physical money a useless paper waste. Some people even go as far as to forecast that fiat currency (that paper money in your wallet) will be worthless in the next generation or two. As a fan of the sci-fi game Shadowrun, the imaginative part of me can fathom a landscape where people carry around thumbdrives and pay in digital currencies.
Below are the four ultimate reasons why you should start using Bitcoins right away:
If you are serious about privacy, pay attention. How many times have you been filling out forms be it online or offline only to provide your personal information like as if it means nothing? In a world where a simple search on Google can get you ‘stalking’ someone effortlessly, the issue of ‘privacy’ is becoming ever more important. No personal information is ever required for the use of Bitcoin. Transactions are handled out anonymously and you can send or receive money online at any time of the day from everywhere.
Bitcoin is profitable in the sense that its value is expected to rise with time. This means you can earn profits merely by holding onto them. Just like all other fiat currencies, volatility exists. Daily traders take advantage of this volatility to earn profits by trading them into fiat currencies and vice versa. However, the major difference to note here is that the volatility of Bitcoin is much higher as with unregulated exchanges. The best thing? Its value has more than tripled ever since the beginning of 2017 and it is expected to steadily rise with time as predicted by major financial analysts and investors. Your due diligence is however, essential when making investment decisions!
Anytime, Anywhere, Lowest Fees
If you are someone who sends or receives large amounts of money internationally, you would want to pay attention to Bitcoin. Unlike banks, Bitcoin transactions can be handled at any time of the day from anywhere around the world. They are usually carried out instantly but require ‘confirmation’ time to verify your transaction – it usually takes no longer than 1 hour on average. When it comes to sending large amounts of money, especially to other parts of the world, bank fees can be hectic. With Bitcoin, transaction fees regardless of the amount being sent/received will never be more than a dollar. Stop worrying about bank holidays and hectic fees!
Bitcoin is based on a decentralized network for everybody to use freely. This means no central authority or middlemen is involved with Bitcoin transactions. If you are not a fan of your Government watching every financial move you make, start using Bitcoins and support the financial revolution. In fact, the currency was created by Satoshi Nakamoto (the mysterious creator behind Bitcoin) over his frustrations and anger with the unpredictable monetary changes input by governments around the world. That’s right. He was fed up of hardworking people going bankrupt due to the mistakes of the banks and the government. Gain full control over your money and be your own bank with the use of bitcoins!
Scamming and hacking and phishing and all the bad stuff you could possibly do on the internet, is plaguing the cryptocurrency universe. If you grew up during the 70s and witnessed how computers evolved, you would recall similar things happened back then too. Sci-Fi shows featuring hackers were all the rage then because security protocols were playing catch up with man's ingenuity.
Hackers are increasingly spreading malware which locks the operating system whilst requesting cryptocurrency payments for uninstallations. The Wannacry Malware is probably the most famous of them all.
Another form of malware related to cryptocurrency is the ‘mining malware’. Once this malware is successfully deployed and installed, it starts mining various cryptocurrencies all the while the owners of the computers do not realize that their computers have been slowed down due to this malware.
According to the Moscow-based news service RBC, a quarter of all computers operating in Russia have been infected with the cryptocurrency mining malware. This statement has been verified by Herman Klimenko, an advisor to President Vladimir Putin, as he told the local news agency that “20-30% of devices are infected with this virus”.
Cryptocurrencies based on the proof-of- work (PoW) algorithm require users to input energy through the intensive ‘mining’ process in which computers are constantly used as they add new transactions on the Blockchain. New coins are minted (supplied) through this process and cybercriminals have long been generating funds by developing and distributing malicious applications and software which effectively hijack computers – to remotely control these computers, use their processing power, and mine various cryptocurrencies.
On the other hand, various Russian government officials have pushed back his claims as they argue that such scale of infection is significant and would be hard to miss. “(the statement is) nonsense”, said Dmitry Marinichev, Russia’s internet ombudsman, in a recent interview with RBC. These pushbacks were further supported by Kapersky Lab, one of Russia’s leading anti-virus software developer, as they told RBC that merely 6 of its customers were ever targeted by this mining malware since the beginning of 2017.
Furthermore, Doctor Web, another popular anti-virus vendor in Russia, stated the claim by Putin’s advisor as ‘faulty’ as the actual number of affected computers is significantly lower than the amount claimed.
"If it were about 20-30%, it would be an epidemic and everyone would know about it. There are infections by miners, but it's impossible to say that they are infected with a third of users," said Vyacheslav Medvedev, an analyst for Doctor Web.
Regardless of the truth behind Herman’s claim, it is true that mining malwares do exist. It is important that you are aware of its existence and regularly check your devices for potential infections. If your computer seems to have slowed down significantly and the use of your internet data have soared without much reasons, be sure to check your computer for this ‘mining malware’.
After all the depressing talk about forking and hacking, I want to talk about the brighter side of crypto and blockchain.
Ever since the birth of Bitcoin, the art industry has always been around as they were fascinated with the currency’s features: instant, anonymous, low fees. Once the Blockchain technology was fully realized for its potentials, the art industry decided to stay around even closer as with copyright issues and keeping records of all art-piece related transactions.
With the global art market valued at around $60 billion USD and high average amounts of purchase, the benefits of utilizing cryptocurrency as an additional payment form becomes obvious. Various artists and galleries at London’s Cork Street are increasingly accepting cryptocurrency payments in a bid to innovate their art empire.
BBC has reported one such instance on Tuesday as they stated that Dadiani Fine Arts, an art gallery located at London’s Cork Street, has begun accepting cryptocurrency as a payment form in what its owner describes as an “intuitive” decision.
The art gallery’s decision to accept cryptocurrencies is in fact, not a demand-driven decision to merely satisfy customer needs. Eleesa Dadiani, the owner of the gallery told BBC that this decision was in fact an intuitive move “…based on the way things are going”. This can be linked to the growing popularity of cryptocurrencies as various industries realize the true potentials of cryptocurrencies and their Blockchain based technologies.
Dadiani Fine Arts Gallery currently accepts Bitcoin and is planning on accepting Ethereum, Ethereum Classic, Dash, Litecoin, and Monero in the near future. Dadiani says the Blockchain is the biggest thing to her ever since she learned about the Internet.
The art industry is undergoing a dynamic and rapid change just like the Blockchain. Recently, an online art marketplace named ‘Artsy’ successfully collected over $50 million USD during their funding round, a process similar to cryptocurrency ICOs. Many investors and financial advisors were suspicious about the funding round in a manner ultimately similar to recent Ethereum-based ICOs as with the unknown actual valuation of the company.
Regardless of their suspicions, these companies and platforms are successfully gathering funds to forward their research and development plans. These are indeed the ‘gray market’. The matter of the fact is that the $60 billion art market is increasingly utilizing cryptocurrencies and realizing their full potentials – partly for Blockchain’s dual ability to “establish the provenance of works of art and thereby reduce the reliance on brokers and other middlemen”, as reported by BBC.
If you would like to support me, you may also send BTC and ETH to these addresses:
Send BTC 39otZdtEjPDNVJ5wTk4oyHzfZjXxsGWXqj
Send ETH 0x6ee765ca3112be7d9f43482bb28b2acbe6f07e2a
[26 July 2017] Cryptocurrency News:
Never a dull day in the CryptoCurrency Universe. Just when you thought the Bitcoin drama was over and price was going up…. We now hear that Bitmain, one of the biggest player in Bitcoin mining has turned around from his initial support of BIP91 and has now claimed that he and other old guards are going ahead with a hard fork, effectively producing their own set of Bitcoin offshoot called Bitcoin Cash.
While it may seem like Bitmain is the big bad guy who doesn’t want to play nice with the rest of the community, the story that I read and understood was that the latest SegWit proposition goes against the road map that Bitcoin founder Satoshi Nakamoto has laid down. A hardfork to Bitcoin Cash, I feel is the only way to move forward with Bitcoin’s original plans because a compromise is just not favourable to either side.
And as I suspected, some people who are savvy with the blockchain technology has said that the demand for a fork has more to do with politics than tech restrictions. I tried to understand what they mean but the numbers were giving me a headache.
In a nutshell, Bitcoin Cash is Nakamoto’s original plan – decentralized electronic cash for the internet. Bitcoin Core, or just Bitcoin for short, favours a more centralized way of transaction similar to our current financial system with the banks.
For the common users, you guys probably won’t care much about how things work as long as it’s fast and cheap.
The future is yet to be seen on this one, but at least we now know that Nakamoto’s original plan is going to live on and in time to come, we can see which way is indeed better.
However, the one beautiful thing about this fork is that if any of you guys currently hold Bitcoins to your name, you will effectively have doubled your money. When a fork happens, your coins are duplicated. You don’t have to do anything. After August 1st, you would have both the existing Bitcoin (BTC) and Bitcoin Cash (BCC) for free. It’s safe and would not rollback causing you to lose your Bitcoin.
All this drama and what you really need to know is that for the average Bitcoin holders, it’s a good thing. Personally, I feel this sort of brazen, almost scam-like manoeuvre, should be deemed illegal. How anyone can let this happen surprises me, though I guess I should have come to realise that when it comes to printing money, the world has the uncanny ability to turn a blind eye.
The amazing world of money and cryptocurrency.
My name is Eugene Tay, The Alpha Mind. Please subscribe to my channel, like and share this video. Don’t get left behind.
If you’re interested in the history of this conflict, there’s an article here that makes for a quite a good read to help you make sense of how the origin of this disagreement.
If you would like to support me, you may also send BTC and ETH to these addresses:
Send BTC 39otZdtEjPDNVJ5wTk4oyHzfZjXxsGWXqj
Send ETH 0x6ee765ca3112be7d9f43482bb28b2acbe6f07e2a
This is fresh right out of the oven. Popular cryptocurrency exchange Bittrex has halted all transactions on BTC until BIP91 goes through. This is in anticipation of the mass selling of BTC than many pundits have predicted in the coming week. Now it also seems like my plan to go in for BTC at the 11th hour hoping for a incredibly low price might be foiled. I'm just going to have to get my Bitcoin from other exchanges.
In other news, the digital soap opera seems to have come to a nice ending as miners and users hold hands and come to an agreement on the direction to take, ending an impasse that has ran for way too long.
Moving forward, we will be looking at a short runway of ups and ups, with fresh investors coming on board in the next wave looking for a pot of gold at the end of the cryptocurrency rainbow. This, I believe is the beginning of the final lap before the bubble finally goes boom, in 2019.
If you just got onboard the crypto train, hold on tight, this is gonna be one hellava ride. This is your captain Eugene Tay, The Alpha Mind signing out. You know the drill, subscribe, like and share. Don't get left behind.
An Interview With a Cryptocurrency Entrepreneur: Why BTC Will Keep Going Higher & Higher
I personally believe that cryptocurrency is the future and, like it or not, it's going to be the biggest talking point for the next three years; but don't just take my word for it - I caught up with Bob Ang, one of Singapore's pioneer in cryptocurrency trading, when Bitcoin was just worth barely a hundred dollars.
It's not inconceivable for Bitcoin to hit 5,000 USD per BTC by the end of 2017 or mid 2018.
If you have heard about cryptocurrency but haven't yet got behind the wheels, it's time you subscribe to my channel and get your regular dose of crypto news. Don't get left behind.
The cryptocurrency hype and bubble isn't a new thing for me. I've seen it through the dot com bubble during the time I was a student and hopeful of my future. The bubble burst just as I graduated and I found myself holding an expensive certificate for an industry that people were getting out of. As a network engineer majoring in programming, I found my hourly rate was $2.20. I remember telling the interviewer that 7-11 paid more and he nodded emphatically.
Your grandpa would probably remember the 1929 Wall Street Crash if he was still around. That was the beginning of a 12 year long depression. The signs were similar: excessive speculation, followed by a mini crash as investors started to sell stocks at a rapid pace, exposing the market's shaky foundation. Confidence dipped. People panic. Boom. Every toppled over like a house of cards.
I'm willing to bet my left ball that cryptocurrency is headed the same way. The early movers, the risk takers, the visionaries, will be the one to make their new fortune. Wealth changes hands.
When it comes to money and the financial market, I place greater emphasis on understanding social behaviour than I am of reading candlesticks. One book I highly recommend every newbie cryptocurrency trader to read is Ralph Nelson Elliott's book titled Nature's Law: The Secret of the Universe.
The Elliott Wave Principle talks about 5 wave characteristics that reflects the psychology of the market. If you want to forecast how the future will look, just study what history has thought us.
A fellow cryptocurrency trader, Roger Bryan, believes that we are in the second wave and it's marked by the following characteristics:
Third wave theory will display the following characteristics:
Fourth wave theory starts with mass adoption and normality to the markets. Regulations get slapped down to prevent fraud and scams. Everyone gets a chance to invest in coins like you do in equities today. No more overnight Lambos.
The trends listed above aren't meant to discourage you. This should in fact motivate you to get in the game while there's still very strong opportunity to make some money. If you educate yourself instead of blindly following trends, you can save yourself a lot of heartache. For anyone over the age of 30 this might be the biggest investment trend opportunity you'll see in your lifetime.