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JPMorgan CEO Jamie Dimon says bitcoin is a ‘fraud’ that will eventually blow up

Jamie Dimon: Governments look at bitcoin as a novelty

Jamie Dimon: Governments look at bitcoin as a novelty  

JPMorgan Chase CEO Jamie Dimon took a shot at bitcoin, saying the cryptocurrency “is a fraud.”

“It’s just not a real thing, eventually it will be closed,” Dimon said Tuesday at the Delivering Alpha conference presented by CNBC and Institutional Investor.

Dimon joked that even his daughter bought some bitcoin, looking to cash in on a trend that has seen it soar more than 300 percent this year.

“I’m not saying ‘go short bitcoin and sell $100,000 of bitcoin before it goes down,” he said. “This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she’s a genius.”

In an appearance at a separate conference earlier in the day, Dimon said bitcoin mania is reminiscent of the tulip bulb craze in the 17th century.

“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed,” Dimon said at a banking industry conference organized by Barclays. “Currencies have legal support. It will blow up.”

Dimon also said he’d “fire in a second” any JPMorgan trader who was trading bitcoin, noting two reasons: “It’s against our rules and they are stupid.”

Bitcoin fell to its session lows after Dimon’s comments. As of 3:01 p.m. in New York, bitcoin traded at $4,106.23, down 2 percent.

Dimon’s criticism comes at a time when some of the most well-known figures on Wall Street are starting to embrace the cryptocurrency. Fundstrat’s Tom Lee said he sees bitcoin surging to $6,000 next yearand value investor Bill Miller reportedly owns bitcoin.

Even Dimon’s own bank, JPMorgan, has reportedly begun a trial project using blockchain as it tries to cut trading costs. Blockchain is the technology behind bitcoin.

Bitcoin has already soared 315 percent this year.

Earlier on Tuesday, Dimon warned about further declines in trading revenue for the banking giant.

Dimon said third-quarter trading revenue will drop about 20 percent on a year-over-year basis. Dimon also said the bank may not give intra-quarter guidance in the future.

JPMorgan’s stock fell off its session highs on the comments, but remained up 1.4 percent on the day.

This comes just a day after Citigroup CEO John Gerspach issued a similar warning. On Monday, Gerspach said Citi’s trading revenue could fall 15 percent, citing low market volatility.

2017 has been the calmest market in decades. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, hit its lowest level in more than 20 years earlier this year.

The second quarter was also a weak one for JPMorgan’s trading unit as revenue fell 14 percent during the period on a year-over-year basis.

Dimon will also be speaking later Tuesday at the Delivering Alpha conference in New York.

Forward from, CNBC.com, Wilfred Frost and Jeff CoxJPMorgan CEO Jamie Dimon says bitcoin is a ‘fraud’ that will eventually blow up

For the skeptics
Keep waiting
Until most of the governments have legalized bitcoin
Until the price of bitcoin go past US$20,000
Then you are welcomed to start buying.

Russia is Working on Legalizing Status of Bitcoin, Other Cryptocurrencies: RT

Russia is in the midst of legitimizing cryptocurrencies. It is developing a legal framework that will govern transactions using digital currencies like Bitcoin, RT reports.

Russian Finance Minister Anton Siluanov conveyed this at a recent financial forum in Moscow. He assured Russian users of Bitcoin and other cryptocurrencies that the government will not outlaw nor penalize people who use cryptocurrencies.

It is a complete turnaround from the Russian Ministry’s stance last year, emerging after President Vladimir Putin signified approval for digital currencies.

Putin helps

Putin had met with Ethereum Founder Vitalik Buterin, who ingrained the merits of Russia’s usage of the Blockchain, the technology underlying Bitcoin. Thereafter, a consortium of lenders have mulled over the possibility of using the technology to cut costs. Meantime, a presidential aide had announced plans for an initial coin offering (ICO).

Finance ministry wobbling

The Russian Finance Ministry had previously balked on and considered prohibition of the use of cryptocurrencies in apartments which it deemed unsafe. Now that it has gotten backing from Putin, and the state has realized that digital currencies are part of the new economic realities, Siluanov said there is no point in outlawing them. He said the next move is to draw up a bill before yearend to regulate cryptocurrencies.

Siluanov has yet to disclose further details, but merely said that the Russian Ministry’s goal is to make the purchase of cryptocurrencies covered by law to in the same manner as buying treasury bonds and other securities.

Bank of Russia Governor balks

As with other technology trends, digital currencies have not won over everyone. In Russia, there are still non-believers. Bank of Russia Governor Elvira Nabiullina, for instance, referred to the global commotion over digital currencies as a “gold fever” sweeping nations, and expressed misgivings over their use as a surrogate for money.

In other news, China has not been as receptive to the growing demand for cryptocurrencies. In fact, its financial regulator plans to shut off major Bitcoin exchanges has led to Bitcoin’s price plummeting.

There has also been much speculation over cracking down on cryptocurrencies, following a recent decision by The People’s Bank of China (PBOC) to outlaw fundraising through ICOs, which have surged in popularity.

Forward from : Joshua Althauser, cointelegraph.com, Russia is Working on Legalizing Status of Bitcoin, Other Cryptocurrencies: RT

No more having to prove who we are with a card.
No more privacy intrusion, misuse and abuse.

Power to the User: Accenture & Microsoft Are Changing Identity with Ethereum

Centralized ways of proving identity may soon have an expiration date.

A lofty claim, perhaps, but the idea is arguably bolstered by the launch this week of a functioning blockchain prototype this week built by Microsoft and Accenture. The technology could one day allow users to accumulate verified information about their identity in a profile they control.

Instead of permanently handing over that information to a university, a healthcare provider or a potential employer, the owner of the identity could choose exactly who gets access to what data – and for how long.

The global head of Accenture’s capital markets blockchain practice, David Treat, explained in the first live demo of the prototype how any number of identity sources can be aggregated under a single profile.

Speaking on stage at the ID2020 conference hosted earlier this week, Treat explained:

“We’re not moving the data, we’re indexing this information. We’re putting it into the individual’s hands.”

Powered by a private version of the ethereum blockchain, the prototype runs on Microsoft’s Azure cloud computing platform, according to an Accenture statement, and sets out to comply with principles established by the Decentralized Identity Foundation, co-founded by Microsoft.

Under the hood

Instead of reinventing how identity itself is proved, the prototype, developed with assistance from managed service provider Avanade, acts as a cryptographically protected store of data verified by existing identity providers.

While the owner of the identity has ultimate control over the access, once permission is granted to a third party it can be queried for authenticity, and if any part of the information is in doubt, the recipient can “pull on that thread”, as Treat put it, and go back to the original source.

Yet, when the allotted time expires, any access to the identifying data is permanently revoked, meaning profiles do not “accumulate” over time.

The distributed ledger is designed to be maintained by participating parties, while simultaneously preventing personally identifiable information from being viewed by those parties.

Though the demo was conducted using a smartphone user interface, Treat said any number of formats could eventually be employed.

Should the prototype be released to the public, the network of users will likely employ Accenture’s Biometric Identity Management System to gain initial access, according to a company statement. The service has already been used in the field by the United Nations High Commissioner for Refugees (UNHCR) to enroll 1.3 million refugees in 29 countries.

“The platform we used allows for the capture of any form of biometric identity, whether that’s voice, or face, or whatever,” Treat said.

In the year 2020

All in all, the ethereum-based app was built over a six-week period earlier this year in Dublin, Ireland. Created by a team at The Dock, a new research and incubation hub establish by Accenture, the app is still in the early stage of development.

However, Treat emphasized that it does in fact work as intended and shouldn’t require years to deploy, as is frequently the time-frame proposed for blockchain projects at this early stage of the technology’s development.

In remarks after the demo, Saadia Madsbjerg, managing director of the Rockefeller Foundation (which helped fund the project), said the group was aiming to have a finalized technical proof-of-concept and multiple pilot projects up and running as soon as 2020.

By that time, Accenture’s Biometric Identity Management System is expected to have increased the number of identities it hosts to 7 million refugees from 75 countries, according to the statement.

Following Madsbjerg’s remarks, Treat concluded:

“We can do this. We can create an identity that is truly personal, private, portable, resistant, and we are excited to invite everyone to join us.”

Read More : coindesk.com, Michael del Castillo, Power to the User: Accenture & Microsoft Are Changing Identity with Ethereum

Messaging the right way
Messaging the P2P way
The blockchain way.

In Era of Compromised Online Messaging, Blockchain-Based Services Hold Key

Encryption is not just a buzzword but a critical necessity in a time when eavesdropping by state and non-state actors is a critical concern. In this sort of a backdrop, there are developmentswhich bring the usability of Blockchain to the forefront.

Can Blockchain or digital currencies and their combination be used to make communication more secure and private? Could these technologies lead to economies which help businesses cut costs dramatically and increase their productivity?

Security compromised

Today we communicate using a wide array of messengers and communication services – Skype, Facebook Messenger, WhatsApp, Telegram, etc. This generation of messengers was preceded by other popular services of their time like Yahoo Messenger, AOL, MSN, etc. All of these services provide varying levels of services. Some are text only, some provide voice services and some provide voice and video.

The problem with many of these services is the ability of governments and others to snoop and pry into the private conversations of the users of these apps. In June 2013, a scandal involving Edward Snowden broke.

According to Mashable, who reviewed the revelations of Snowden a year after they were made:

“The NSA….isn’t able to compromise the encryption algorithms underlying these technologies. Instead, it circumvents or undermines them, forcing companies to install backdoors, hacking into servers and computers, or promoting the use of weaker algorithms.”

It would appear then that the big name messenger services and other communications providers collude with the powers that be to weaken the security of their users deliberately.

Backdoors

End-to-end encryption is the latest technology that most mainstream messengers are favoring. Signal, Telegram, WhatsApp and others all use this technology. In principle, this technology is said to ensure that only people sending and receiving information can make sense of it.

However, the problem remains that if the tech companies want, they can build backdoors which would then allow governments to gain access to information.

The governments too have not looked kindly at end-to-end encryption with the UK Home Secretary Amber Rudd even calling for the banning of this technology.

While the secretary’s comments came in the backdrop of the Westminster attack in March 2017, it should be interesting to note that WikiLeaks’ revelations make it clear that the CIA has at least 24 weaponized Android “zero days” that allows it to bypass encryption on WhatsApp, Signal, Telegram, Wiebo, Confide and Cloackman.

Interestingly, some of these exploits the American intelligence agency received from GCHQ – a British agency.

Enter the Blockchain

There are a number of service providers in existence already that are using technologies such as Virtual Private Branch Exchanges (PBXs). Interestingly, a provider called EncryptoTel is now using cloud or a virtual PBX in conjunction with Blockchain to deliver privacy oriented services.

EncryptoTel claims to have collected $3 mln in their crowdsale and their ICO is still an ongoing process. EncryptoTel, in its beta version, is using SIP/TLS technology as well as SRTP and ZRTP protocols to focus on encryption. In the future, they want to build their own protocols for providing security. For identity verification purposes they will use the Waves digital signature.

Crypviser is also a provider that has launched its own Initial Coin Offer (ICO) for its digital currency CVCoin. The ICO started on May 20, 2017, and will continue till June 30, 2017. Crypviser is the first ever encrypted network for “social and business communication” according to the company.

Crypviser will launch commercial services on September 4, 2017. Crypviser plans to use their own unified secure instant communication network with real end-to-end encryption and a unique Blockchain-based authentication to ensure privacy.

Their aim is to provide protection to users at each stage. The Blockchain-based authentication they will use will be provided by the CSMP protocol.

According to a white paper published by Crypviser:

“Classic client-server authorization technologies became unsuitable and do not meet current security requirements. Crypviser cares of its users in a professional manner and introduces a patent-pending complex authorization solution to prevent any possibility of the user’s meta-data manipulation on the service provider side.”

Battle of messengers?

It is interesting to note that both Crypviser and EncryptoTel are launching around the same time. In a blog post, Vadim Andryan, CEO of Crypviser, compares EncryptoTel’s efforts to reinventing the bicycle. It is an interesting observation of Andryan that EncryptoTel still does not have their own protocol in place.

He says:

“There is no way to compare the ready to use CSMP protocol with the genuine Blockchain-based authentication model of decentralized public — key distribution with the “promises”.”

Regardless of the outcome of the Crypviser and EncryptoTel situation, it is clear that there is a market for more secure platforms and putting in place authentication systems based on Blockchain could be one idea that reinforces the security of end-users.

Now we must wait till these products make it to the market and there is no doubt that the best one will be left standing.

Trust no one but the banks….?

It’s Your Money But You Can’t Have It: EU Proposes Account Freezes To Halt Bank Runs

European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs, an EU document reviewed by Reuters revealed.

The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble.

The proposal, which has been in the works since the beginning of this year, comes less than two months after a run on deposits at Banco Popular contributed to the collapse of the Spanish lender.

Giving supervisors the power to temporarily block bank accounts at ailing lenders is “a feasible option,” a paper prepared by the Estonian presidency of the EU said, acknowledging that member states were divided on the issue.

EU countries which already allow a moratorium on bank payouts in insolvency procedures at national level, like Germany, support the measure, officials said.

“The desire is to prevent a bank run, so that when a bank is in a critical situation it is not pushed over the edge,” a person familiar with German government’s thinking said.

The Estonian proposal was discussed by EU envoys on July 13 but no decision was made, an EU official said. Discussions were due to continue in September. Approval of EU lawmakers would be required for any final decision.

Under the plan discussed by EU states, pay-outs could be suspended for five working days and the block could be extended to a maximum of 20 days in exceptional circumstances, the Estonian document said.

 

Spooking Customers

I side with Charlie Bannister of the Association for Financial Markets in Europe (AFME), who says “We strongly believe that this would incentivize depositors to run from a bank at an early stage.”

Why Might Customers Want to Run?

Here are a trillion reasons: Over €1 Trillion Nonperforming EU Loans: EU vs US Percentages.

Non-Performing Loans

Notes

  • I am unsure why the graphs sometimes use different country codes than appears in the first column. Where different, I show both symbols. The list of country codes is shown below.
  • Forb ratio stands for forbearance ratio.
  • Cov ratio stands for coverage ratio: (Loans – Reserve balance)/Total amount of non-performing loans. It’s a measure of how prepared a bank is for losses.

Italy, Greece, Spain, Portugal, and Ireland have a combined €606 billion in non-performing loans.

The entire European banking system is over-leveraged, under-capitalized, and propped up by QE from the ECB. Simply put, the EU banking system is insolvent.

That the EU has to consider such drastic measures proves the point.

 

Read  more: zerohedge.com, Tyler Durden, It’s Your Money But You Can’t Have It: EU Proposes Account Freezes To Halt Bank Runs

South Korea taking a positive step.

South Korea Legalizes Bitcoin International Transfers, Challenging Traditional Banks

Starting next week, Bitcoin will be on the approved list of technologies that can move payments across the South Korean border. Fintech companies in the country will be able to obtain a permit allowing them to legally offer Bitcoin international transfer services.

New Law Making Bitcoin International Transfers Legal

South Korea Legalizes Bitcoin International Transfers, Challenging Traditional BanksStarting on July 18, the amended South Korean Foreign Exchange Transactions Act will enable fintech companies to register with the Financial Supervisory Service (FSS) to legally “provide international money transfer services for small funds,” The Herald reported an FSS official saying on Wednesday.

Once registered, companies can use various methods to send money abroad, including using Bitcoin. The amended law specifically permits digital currency remittances, “which were illegal under the Foreign Exchange Transactions law,” wrote online newspaper Dailian.

To obtain a permit, a fintech firm must have a paid-in capital of more than 2 billion won (approx. 1.75 mUSD at the time of writing) and a debt-to-equity ratio of below 200 percent, The Herald explained, adding that:

A one-off transfer via a fintech firm will be limited to $3,000 or less. By an account, an annual limit for international money transfers via fintech firms will be set at $20,000.

New Challenges for Banks

South Korea Legalizes Bitcoin International Transfers, Challenging Traditional BanksThe amended law will allow new entrants to compete with traditional banks, offering money transfer services at a fraction of the incumbents’ fees, with a shorter transfer time.

For an overseas remittance of 1 million won, a typical bank commission is between 50,000 won and 60,000 won, Dailian detailed, adding that fintech companies are expected to charge between 3,000 to 40,000 won. It also takes banks two or three days to complete a transfer, the publication wrote.

Meanwhile, Bitcoin remittance service provider Coinone only charges a 1% commission fee and “deposits are made within 3 minutes after requesting money transfer,” its website shows.

Responding to new fintech competitors, Keb Hana Bank has limited some of its transfer fees to around 10,000 won, and Shinhan Bank is considering the introduction of a Bitcoin-based overseas remittance system, The Herald reported. Kang Mi-jung, a senior researcher at Hana Institute of Finance, commented:

Domestic banks need to find ways to provide remittance services for simple and inexpensive fees, and to establish new profit models through partnerships with fintech.

The worldwide money transfer industry is expected to grow to approximately $600 billion this year, according to research by Infosys. About 40 fintech firms are slated to launch international money transfer services starting on August 15, the news outlet reported FSS officials saying, adding that “the move is expected to intensify competition in the 10 trillion won ($8.7 billion) international money transfer market.”

Images courtesy of Shutterstock and Business Korea

 

Read more : Bitsonline.com, Kevin Helms, South Korea Legalizes Bitcoin International Transfers, Challenging Traditional Banks

Nothing’s perfect
But any will do just fine.

There is No Perfect Blockchain, Here is Why

Different consensus algorithms power Blockchain technology. It is the consensus algorithm of a given Blockchain that determines how nodes participate in sharing of the database of such Blockchain.

A growing trend within the Blockchain ecosystem is the combination of two or more consensus algorithms by solution providers. By doing so, Blockchain developers seek to employ the various strengths of different algorithms in order to achieve a more robust platform.

There is no perfect Blockchain

Previn Kutty, Blockchain solutions architect, notes that several consensus algorithms have been introduced on the Blockchain. These are proof of work, proof of stake, proof of service, proof of burn, proof of space, byzantine fault tolerance etc., all of them claiming to solve the cryptocurrencies / Blockchain challenges for decentralized control, low latency, flexible trust, less resource intensive, asymptotic security, etc.

However, it is now widespread knowledge that each of these algorithms has their particular areas of strength and weaknesses, a development that Kutty describes as a “one size doesn’t fit all” scenario.

Kutty tells Cointelegraph:

“There is the lingering question of one size consensus doesn’t fit for all, as each Blockchain app has their own challenges and the entire Blockchain community is exploring new opportunities for everyday consensus challenges, which is good as it promises more and more opportunities for technological development in consensus arena.”

Bjorn Bjercke, Blockchain developer, explains that in isolation the various consensus algorithms tend to reveal profound weaknesses within their systems.

Bjercke mentions examples such as proof of stake, which has been discovered to have issues with safety, and proof of service that according to him has been proven to be hackable.

As for proof of authority, Bjercke notes despite having proven to be safe. It is a centralized system, therefore defeating the initial idea of the Blockchain.

Synergy of algorithms

In a previous report by Cointelegraph, Inpay was noted to harness the properties of Ethereum Classic and Waves in enabling features such as decentralized voting systems and aliases.

Another project that claims to be harnessing the qualities of multiple Blockchains is Qtum Foundation’s Sparknet. This project claims to combine the advantages of Bitcoin, Ethereum’s Virtual Machine and proof-of-stake consensus.

Jordan Earls, co-founder of Qtum, says that the testnet would feature an Ethereum Virtual Machine smart contract implementation along with Qtum’s proof-of-stake protocol.

Earls says:

“I am ready to get this in the hands of the community and see what everyone’s response to it will be, in particular, what features other developers can come up with.”

Internal division of labor

Still, in its early stages of development, it is natural that the Blockchain ecosystem continues to experience twitches and adjustments. The weaknesses of the various consensus algorithms in existence are becoming more and more exposed as more products are built on top of these platforms.

However, with the developing trend of combining multiple systems, improved efficiency can be achieved with the creation of more robust systems. In doing so, the various responsibilities within the given project are split among the individual algorithms that make up the platform.

Bjercke explains that a typical scenario involves splitting the Blockchain into having transactions on one side and transaction cost on the other, thereby making two different entries in the ledger when adopting a triple hash proof of work combined with proof of stake for transaction cost.

Read more : Cointelegraph.com, Iyke Aru, There is No Perfect Blockchain, Here is Why

For those who ask:
Why are there ETH and ETC?
A good introduction.

Is Ethereum Classic (ETC) a Good Investment?

Ethereum classic has emerged as one of the most popular altcoins since its big brother ether executed a hard fork on the blockchain after the DAO hack in July 2016. During a little under a year of its existence, ethereum classic, which carries the ticker ETC, has managed to rally from under $1 to over $20 and has positioned itself within the top five largest cryptocurrencies in the market.

What is Ethereum?

You cannot talk about Ethereum Classic without talking about Ethereum first. Ethereum is a public open-source blockchain network that allows for the creation of smart contracts and decentralized apps (DApps). It was first proposed in 2013 by its founder Vitalik Buterin and went live in July 2015 after a successful ether token sale in July/August 2014.

Ethereum’s digital token ether (ETH) has emerged as the second most popular cryptocurrency after bitcoin with a market capitalization of over $35 billion. The price of ether stands $370 at the time of writing, which also makes it the fourth most valuable cryptocurrency after bitcoin, Zcash, and Byteball.

The Hard Fork That Created Ethereum Classic

In April 2016, the Decentralized Autonomous Organization (DAO) was launched to act as a decentralized venture capital fund for cryptocurrency projects. It was built as a complex smart contract on the Ethereum blockchain and was meant to allow investors to vote on proposed projects that would then receive funding through the DAO.

During its 28-day crowdfunding campaign, the DAO managed to raise $168 million dollars worth of ether and became the most successful cryptocurrency crowdsale to this day. However, there was a vulnerability in the DAO smart contract, which allowed a hacker to steal a substantial amount of the DAO’s ether holdings on June 18, 2016. The hacker was able to steal around 3.6 million ether, which amounted to around $50 million dollars at that time.

To regain the stolen ether, the Ethereum community voted on a proposal to hard fork the Ethereum blockchain to create a smart contract that allows all ether tokens to be withdrawn by their rightful holders. This proposed hard fork caused a lot of controversy in the Ethereum community with the opponents of the fork arguing that “code is law” and that blockchains should stay immutable. The vote on the hard fork to return the stolen ether resulted with the majority of voters being in favor of the fork. The remaining faction, however, continued to mine the original pre-fork Ethereum blockchain and that is how the digital currency ethereum classic with the ticker ETC and its blockchain was born.

What is Ethereum Classic?

Ethereum classic (ETC) is the cryptocurrency of the original Ethereum blockchain. That means that the Ethereum Classic blockchain has all the same capabilities as Ethereum has, including smart contract functionality and the ability to develop DApps.

Following the Ethereum hard fork, ethereum classic mining pools were created, ethereum classic tokens started to trade on several exchanges, and a small but vocal community started to form that “believe[s] in the original vision of Ethereum as a world computer you cannot shut down, running irreversible smart contracts.”

While the basic functionalities of the Ethereum Classic blockchain are the same as those of Ethereum, several changes have been made to it in the past twelve months. Network upgrades included resolving issues surrounding the initially implemented “difficulty bomb” as well as replay attacks and introducing a new monetary policy.

The Price Development of Ethereum Classic

The price of ethereum classic (ETC) at first faced a lot of supply side pressure as all ether holders also received ethereum classic tokens “for free” after the hard fork. That resulted in opponents of ethereum classic happily dumping their coins to keep the price of ETC low so that it does not become a competition to Ethereum’s ether. This can be witnessed by ETC’s struggle to move past the $2 mark in its first eight months of its existence.

However, when the altcoin market started to rally aggressively in the first quarter of 2017, ethereum classic was no exception. From March 1 to May 24, 2017, ethereum classic rose from $1.40 to surpass the $21.00 mark according to CoinMarketCap and, thereby, generated an impressive 1,400 percent return in less than three months for its holders.

Should You Hold Ethereum Classic in Your Cryptocurrency Portfolio?

Given that Ethereum Classic has the much smaller community than its older brother Ethereum and given that the Ethereum blockchain is being used in a wide range of both commercial and non-commercial, why should you invest in ethereum classic? Wouldn’t Ethereum’s ether be the logical choice, if you want to bet on smart contracts and DApps playing a big role in the future of business and society?

While it will most likely turn out to be a wise investment choice to own Ethereum’s ether, there are several reasons to consider also holding ethereum classic tokens into your cryptocurrency portfolio.

  1. Institutional investors are able to buy ethereum classic through the Grayscale’s Ethereum Classic Investment Trust, which launched in April 2017. Given the amount of media attention that the recent cryptocurrency rally has received it would not be surprising to see more institutional investors as well as high net worth individuals buying shares the Ethereum Classic Investment Trust to diversify their exposure and to benefit from the high returns potential of digital currencies. This reasoning is confirmed by the increase in the fund’s assets under management from an initial $10 million to a current $48 million and by the fact that the price of ethereum classic rose 20 percent in the week following the launch of the ETC investment trust.
  2. The Ethereum Classic community recently agreed on a new monetary policy that introduces a hard cap on the total issuance of ethereum classic. This, of course, is price supportive for the digital currency. On March 1, key stakeholders in the ETC community agreed that the total supply of ETC would never exceed 230 million. Ethereum’s ether (ETH), on the other hand, currently has no hard cap on total ether issuance.
  3. One of the reasons why the price of ether has rallied so much is that the booming initial coin offerings (ICO) market is built largely on the Ethereum blockchain and uses ether as one of its main funding currencies. Should a wave of ICOs come to the Ethereum Classic blockchain, then the value of ETC could witness a similarly strong rally for the same reasons. In fact, the first ICO on the Ethereum Classic blockchain is about to launch on TokenMarket in June. The Corion Platform is conducting a crowdsale to raise funds to develop its payments solutions on top of the Ethereum Classic blockchain.
  4. Ethereum Classic has demonstrated real credibility when splitting from the Ethereum community by sticking to a truly immutable blockchain. Given that immutability is probably one of the most important aspects of blockchain technology, the ethereum classic community gained respect from the wider cryptocurrency community for sticking to their principles.

Risks of Investing in Ethereum Classic

According to the Grayscale Ethereum Classic Investment Thesis, there are two large holders of ETC that could push the price of the digital currency lower by dumping their tokens on the market. The Ethereum Foundation still holds 10 percent of the ETC they received after the hard fork of the Ethereum blockchain, and the DAO hacker still holds around 3.36 million ethereum classic, which amounts to around 3.65 percent of total circulation. Should either of the parties mentioned above sell their holdings, this would put substantial downward pressure on ethereum classic tokens.

Another risk to the value of ETC is that the Ethereum Classic blockchain will never end up being used to develop any meaningful applications nor be used to create any smart contract solutions for commercial industries.

The long-term investment case for or against ethereum classic focuses on two key areas: how much institutional money will flow into the Ethereum Classic Investment Trust and will the developers built industry-relevant applications and smart contract solutions on top of the Ethereum Classic blockchain?

If the answer to both these questions will turn out to be yes, then ethereum classic will most likely perform well in the long run. If the majority of developers, however, will choose to built solution on Ethereum instead of Ethereum Classic then it will be hard for the digital currency to merit a high value. Unless, of course, institutional investor money keeps increasing the value of the digital currency by pouring funds into the ETC Investment Trust.

 

Read more : btcmanager.com, Alexander Lielacher, Is Ethereum Classic (ETC) a Good Investment?

When burglars and thieves get smart
You’ve gotta get smarter, or be more careful.

Man Robbed at Gunpoint for $1,100 Worth of Bitcoins in Brooklyn

While digital currencies are slowly making themselves known to the world starting with Bitcoinfollowed by Ethereum, carrying digital currencies with you pose the same threat as having traditional fiat. Such is the case of a 28-year-old New Yorker who fell victim to a Bitcoin theft.

According to a report, the victim was to meet with a Bitcoin seller whom he contacted through Craigslist in Crown Heights, Brooklyn. Upon meeting the “seller”, a gun was pointed at him and the “seller” demanded $1,100 worth of Bitcoin to be transferred to his Bitcoin wallet.

The case is still under investigation as there wasn’t any CCTV footage of the crime.

Bitcoin thefts as early as 2015

This is not the first case of Bitcoin theft. Even as early as January 2015, there were already some cases of Bitcoin holdups such as the case of Dean Katz who also was a victim of a similar case. He was also supposed to meet a Bitcoin seller and ended up being robbed of his Bitcoins.

Increasing Bitcoin-related crimes

With the rise of Bitcoin and other cryptocurrencies, various criminals both online and offline have already appeared to take advantage of the new digital currencies.

It’s not just holduppers and thieves that are taking Bitcoins away from people on the streets, but similar activities are being carried out by hackers and cybercriminals as well. On August 2016, there was massive case of a Bitcoin hacking wherein a hacker used phone numbers of random people in order to steal Bitcoins from the market as reported on Forbes. Such cases alerted the cryptocurrency platforms to boost up their security.

What’s behind all these?

Just this year, Bitcoin, along with other well known cryptocurrencies, have been rising to their all time highs. In line with this, more and more people are taking interest in Bitcoin and so are the crime related to cryptocurrencies.

In light of these cases, the best way to prevent any theft would be to be very cautious with your personal information as well as being vigilant when conducting transactions that involve the exchange of money and currencies with similar value.

 

Read more : Cointelegraph.com, Lisa Froelings, Man Robbed at Gunpoint for $1,100 Worth of Bitcoins in Brooklyn

Germany here we come!

A New Pro-Bitcoin, Ethereum Association Launches in the German Parliament

Digital currencies like Bitcoin and Ethereum will gain support in Germany with the founding of a new nationwide federal digital currency and blockchain lobby group called the ‘Blockchain Bundesverband’ – the German Federal Blockchain Association.

The official founding of the new association took place in the German Bundestag, Germany’s parliamentary building, in Berlin on Thursday. According to local publication t3n, the launch of the association was open for a number of attendees with invitations sent to German members of parliament to attend.

This is it: the @bundesblock is founded. hooray! 

“Blockchain will be the basic technology for the next innovation stage of the Internet, and Germany has a chance to put itself at the forefront of the world through pioneering regulation. The Federal Association is to help seize this opportunity” stated an official release from the group.

Among the many agreed-upon objectives laid out by the association, a notable goal is to see at least one public register over a blockchain put to test in the real world.

The association and lobby group sees support from a number of blockchain companies including Gnosis, the IOTA foundation, Blockchain Helix and Slock.it, among several others.

The new blockchain association also houses an ‘advisory board’ comprising of politicians from different parties alongside other stakeholders.

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We are founding the Blockchain Bundesverband e.V. In the Bundestag.

The launch of the federal association comes at a time when the president of Germany’s central bank has been making some noteworthy comments on blockchain technology and digital currencies. Earlier in March, Bundesbank president Jens Wiedmann, whilst speaking at a G20 conference, claimed the digitization of financial services could see benefitsfrom blockchain technology. However, Wieldmann was also quoted as stating that digital currencies like bitcoin could ‘worsen’ financial crises in the future. He further added, in his opinion, that instant bank payments would put an end to the public’s interest in digital currencies.

Opinions aside, the foundation of a federal pro-digital currency and blockchain association in Germany’s capitol is certain to help the cause for the development of decentralized financial technologies.

 

Read  more: A New Pro-Bitcoin, Ethereum Association Launches in the German Parliament