Year: 2018

Anniversary to Bitcoin – Ten Years After
2 min read
- The first known transactions were in May 2010 for 10,000 Bitcoins
- Ten years ago today, Bitcoin was born. Today October 31, 2018, marks the 10th Anniversary of Bitcoin. One of the most promising. But still widely misunderstood technological spread of the 21st century: Bitcoin.
“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party” Satoshi Nakamoto, Oct. 31, 2008, 06:10:00 PM.

That’s the introductory line in the first email that Satoshi Nakamoto sent. This may be a pseudonym for one or more programmers of Bitcoin. This pseudonym sent a mysterious cryptography email list.

It was Halloween 2008. Satoshi Nakamoto published a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” He detailed how the system would mean online payments being sent directly between people. Without having to rely on a bank.

Did he, she or they had any feeling of what was being unleashed? Today, ten years after, the digital currency is valued at more than $6,250. Even with the wild fluctuations of the past year.

Since the first Bitcoins were sold privately, it’s not clear how to assign an original value.

The first known transactions were in May 2010 for 10,000 Bitcoins to indirectly buy two pizzas for about $30. Or less than a cent for each Bitcoin.

After 10 years on the 10th bitcoin anniversary, the size of the cryptocurrency market is estimated at more than $200 billion.
The mysterious Satoshi Nakamoto appeared out of nowhere. He invented a new form of currency that is 100% digital. Not under the control of any government or bank on earth.

And it is worth billions and billions of dollars.

Then he or she or they unexpected vanished.

Weird but true. Even bizarre!

The story is even more fascinating because Satoshi mined the first bitcoins. At the beginning when it was simple to mine Bitcoins quickly and easily. There is some estimate that Satoshi owns approximately 1 million Bitcoins.

A decade after, who uses it to trade? And why is Bitcoin itself which started trading at 30 cents apiece, nowadays costs thousands of dollars?

Bitcoin means freedom

With Bitcoin people get the liberty to exchange value without intermediaries. That leads to greater control of funds and lower fees. It’s faster, cheaper, more secure and immutable. So, cash is under control by banks while bitcoin has owners.

Bitcoin is very useful as service for fast remittances for the international system of payments, for example. Bitcoin can help us do online shopping too. It’s like an e-wallet which can be created blockchain technology to store, track and spend digital money.

Bitcoin’s influence on the finance industry

Bitcoin is making the biggest revolution in the finance industry in the last 200 years. Leading all cryptocurrencies, Bitcoin is at the forefront of the bleeding edge of blockchain innovation.

Bitcoin is celebrating 10 years anniversary. Over the past decade bitcoin’s popularity has soared. But so has the number of its critics. But, the market found the weakness: volatility of Bitcoin. The trading community lap up the wild price swings. Those pushing for mainstream use have had to withstand a collapse in the price of the No. 1 digital currency.

The future of bitcoin

One of the most vocal critics is prominent New York University economics professor, Nouriel Roubini, compared blockchain with a glorified excel spreadsheet. Roubini has called bitcoin ”the mother of all bubbles.” He criticized the crypto community as a bunch of “self-serving white men”. Claiming they are ”pretending to be messiahs for the world’s impoverished, marginalized, and unbanked masses.”

And now, coming upon 10 years since the inception of cryptocurrencies? The decentralizing technology began with bitcoin. It started a path where the so-called trusted third parties are mining bitcoin. Instead of printing money.

“I see bitcoin becoming the most important and most transacted currency in the world, not just for remittances, or cross-border transactions, but for every use currency. It won’t be long before bitcoin eclipses the dollar as the most popular currency,” said Tim Draper, founder and director of Draper Associates.

We think it is necessary to stay patient and witness history first hand.

Nothing can stop that!

Risk Disclosure (read carefully!)
31st October 2018
What is Spread in Trading?

It is important to keep in mind that spreads are changeable.

By Guy Avtalyon

What is spread in trading? Before you realize that, you should understand that in the foreign exchange market prices are represented as currency pairs or exchange rate quotations. The relative value of one currency unit is expressed in the units of another currency. BID is the exchange rate, applied to a buyer who wants to buy a quote currency. It is the highest price at which a currency pair will be bought. ASK is the price the lowest price that a currency pair will be offered for sale. BID is always lower than ASK.

The difference between ASK and BID is a spread. It represents brokerage service costs and replaces transaction fees.

When you study the financial markets, you’ll notice three different prices: the market price, buy price, and sell price. The difference between the buy and the “sell” price is spread. It’s a simple concept, but one that could have a significant impact on the profitability of your trades.
Spread is expressed in pips, to the fourth decimal place in currency quotation.

More about what is spread

In the most general sense, a spread is a difference between two similar measures. In the stock market, for example, it is the difference between the highest price – bid and the lowest price – ask.

But, for example, with bonds, the spread is the difference between the yields on bonds that have the same investment class but different dates of maturity. For example, if the yield on a long-term Treasury bond is 5%, and the yield on a Treasury bill is 2%, the spread is 3%.

The spread is also the difference in yields on securities that have the same maturity date but have a different investment quality. For example, there is a 4% spread between a high-yield bond paying 9% and a Treasury bond paying 5% that both come due on the same date.

The spread also indicates the price difference between two different derivatives of the same class.

For example, you can easily notice the spread between the price of the November corn futures contract and the February corn futures contract. The portion of the spread is the cost of “carry”. However, the spread extends and narrows, caused by changes in the market. Well, in this case, the corn market.

More answers to what is spread in trading

It is a difference between the asking price and an offer. For example, if the seller was asking $2 million but the offer was only $1,5 million, the spread would be $500,000.

Also, it is a difference between the cost of money and the earning rates.

For instance, a mortgage banker is able to borrow money at 6% interest because of its excellent credit and high net worth. It then loans that money out on moderately risky ventures at 14% interest. The spread is 8%.

What is spread trade?

A spread trade is the buying of one security and sale of related security as a unit (this is so*called legs) simultaneously. A spread trade is executed with options or futures contracts as the legs, which is most usual. But also traders can use other securities sometimes.

A spread is a difference between ASK and BID price. It represents brokerage service costs and replaces transaction fees.

These types of spreads are characteristic for Forex Trading:

Fixed spread – the difference between ASK and BID is kept constant and does not depend on market conditions. They are set by trading with firms for automatically traded accounts.

Fixed spread with an extension – a certain part of a spread is predetermined and another part may be adjusted by a dealer according to market.

What influences the Spread in Forex Trading?

There are several factors of spread influence in trading. The most important is currency liquidity. Popular currency pairs are traded with lowest spreads while rare pairs raise a dozen pips spread. The next factor is the amount of a deal. Middle size agreement is executed on quotations with standard tight spreads, while extreme agreements, no matter if too small or too big, are quoted with larger spreads due to higher risks.

On the volatile market, bid-offer spreads are wider than during quiet market conditions. Status of a customer also impacts spread as large-scale traders or premium clients enjoy personal discounts. Forex market characterizes high competition and as brokers are trying to stay closer to customers, spreads tend to be fixed on the lowest possible level.

Each trader should pay attention to spread management. Maximum performance can only be achieved when the maximum quantity of market conditions is taken into account. The successful trading strategy is based on effective evaluation of market indicators and specific financial conditions of a deal. The best tools for spread trading are a combination of forecasting, risk/return analysis, transaction cost evaluation. The spreads are changeable, so spread management strategy has also to be adaptable enough to fit market movements.

Like any other market, you’ll find spread in the Forex market. A spread is simply the price difference between where a trader may buy or sell an underlying asset. Or simpler Bid/Ask spread.

Spread’s costs and calculations

Since the spread is just a number, we need to know how to relate the spread into dollars and cents. If you can find the spread, finding this figure is very mathematically straightforward once you have identified pip cost and the number of lots you are trading.

For example, you can buy the EUR/USD at 1.3564 and close the transaction at a sell price of the 1.35474. That means as soon as our trade is open, a trader would have 1.4 pips of spread. To find the total cost, you have to multiply this value by pip cost and by the total amount of lots you trade. When trading a 10k EUR/USD lot with a $1 pip cost, you would incur a total cost of $1.40 on this transaction.

Remember, the pip cost is exponential. This means you will need to multiply this value-based off on the number of lots you are trading. As the size of your positions increase, so will the cost incurred from the spread.

What is important to know? It is important to remember that spreads are changeable. That means they will not always stay the same and will change from time to time. These changes come from liquidity, which may vary based off of-market conditions and expected financial data. To know current spread rates, always reference your trading platform.

30th October 2018
Thailand SEC Warns On ICOs
1 min read
- The SEC of Thailand released a report about the legality of certain initial coin offerings (ICOs) and other cryptocurrencies.
- SEC warned that some of them have not met regulatory standards and may put investors at risk.
Thailand has slowly warmed to cryptocurrencies from the beginning of this year. Initially, the government intended to impose crippling taxes on buying and trading them. And ban ICOs which would have been the end of the developing industry in the Kingdom.

Thailand SEC warns on ICOs

The Securities and Exchange Commission of Thailand developed a regulatory framework. The ICO projects have to apply for approval to operate within the country. As reported by the Bangkok Post over the weekend, those outside of that group, have been on the end of a warning. Because they are without prior SEC approval.

Reasons for warning

Apart from the fact that the nine ICOs have not sought approval, there are several other reasons for Thailand SEC to warns on ICOs. These ICOs have not been evaluated by any SEC-approved ICO portal. They have not provided enough disclosure for investors. Moreover, the issuers and promoters didn’t have the license to carry out digital asset-related activities.

An inspection has found that unregulated ICOs had promotions on social media in Thailand. Hence, that set off red flags for the Thai SEC. They identified nine cryptocurrencies and ICOs in total. These include Every Coin, Orientum Coin (ORT Coin), OneCoin and OFC Coin, Tripxchain Coin (TXC Coin), TUC Coin, G2S Expert ICO, Singhcom Enterprise ICO, Adventure hostel Bangkok ICO, and Kidstocurrency ICO according to the report.

They do not have permission

After all, the regulator warned against investing in them since they have not been approved. Overmore, they don’t meet the necessary qualifications and have not had their smart contracts assessed by ICO portals.
Securities and Exchange Commission went on to add:

‘Information disclosure for investment decision-making is also inadequate, while these digital assets might not have sufficient liquidity to trade and cannot be converted into cash.’

The Monetary Authority confirmed this caution. Furthermore, they are warning that one particular crypto is in online media from other countries. They stated it is OneCoin and businesses related to it are not under supervision. The organization, widely believed to be a Ponzi scheme, has received scrutiny online. And they were operating as a “private blockchain”. Some see it as little more than a scheme. Especially after countries like China, India, and Italy issue warnings about OneCoin.

‘There are opportunists who persuade individuals to invest in digital assets by assuring investment returns generated from digital tokens that are structured like pyramid schemes. These schemes encourage individuals to seek more partners in the investment network. But there are no details available on business plans, product, platform or credible management team,’ the SEC added.

Who is looking for the license?

Currently, six businesses are seeking licenses to operate as crypto exchanges in Thailand. And these are Bitcoin Co, Bitkub Online Co Ltd, Cash2Coins Co Ltd, Satang Corporation Co Ltd, Coin Asset Co Ltd, and Southeast Asia Digital Exchange Co Ltd.

On Friday, the Thai SEC warned the public against nine ICOs that have not applied for approval. But has been attempting to promote and solicit investors on social media platforms. Probably Facebook and YouTube.

Later, the SEC warned prospective investors stating, ‘Currently, no digital asset issuer has been approved. And no one has filed an application for a license with the SEC. Therefore, investors to take caution when being solicited or receiving information about investments in digital assets.’

Additionally, there are two seeking to open as digital asset dealers. It looks, they are Coins TH Co and Digital Coin Co Ltd.

The SEC is still evaluating their applications and those companies can continue operating for now. Yes, Thailand has opened up to crypto. But they clearly have zero tolerance for those that do not abide by the rules laid down by the SEC.

It looks that this new financial instrument doesn’t fit under any one regulatory body, and confuses many regulatory bodies.

But well, they have time to learn.

Risk Disclosure (read carefully!)
29th October 2018
NEW GREEN ENERGY INVESTMENT TRUST TO FLOAT PROFFERING A HIGH DIVIDEND

This article was originally posted on https://www.markemlickprivateequity.com/

Boutique asset manager Gresham House is seeking to list a trust that will invest in battery farms to store renewable energy for use by the National Grid.

Gresham House has become the latest in a growing line-up of asset management firms looking to launch new investment trusts. Their aim is to raise £200 million from investors for the ‘Gresham House Energy Storage Fund Plc’, for which £30 million is already promised by a range of cornerstone investors including Gresham House itself, staff and institutional investors.

The new trust will invest in lithium-ion battery farms, to provide the National Grid with utility-scale Energy Storage Systems or ESS, to help ensure energy from renewable sources is available when it is needed, rather than when having to rely on the availability of wind, waves or sun, depending on the renewable source used.

The infrastructure the trust will be investing in is essential to support the deployment of renewable sources of energy, which already accounts for 30% of the UK’s energy needs or 40GW. It is forecast to grow by an additional 50% by 2023.

The managers of the new trust claim it will offer investors a diversified and robust source of income, yielding 7% once fully invested, and it will be independent of renewables subsidies or the absolute level of power prices.

The trust will target a NAV total return of 8.0%+ p.a. (net of all Fund expenses). Once gross proceeds have been fully deployed, the manager expects to introduce leverage up to a maximum of 50%. Gearing, coupled with the expected asset management and revenue improvements, will increase the NAV total return target to 15.0% p.a. calculated net of the Fund’s costs and expenses.

As yet the fees for managing the trust are, unusually, unconfirmed.

Future growth

This forecast growth in energy generated from intermittent renewable sources creates a challenge for the National Grid because it increases the variability of power supply. ESS addresses this challenge by either storing power for future use or releasing power when required. The transition to renewables can only continue with the support of effective ESS.

Gresham House claims the trust will be managed by an experienced management team who have worked together for over 10 years, with strong renewable and energy storage experience.

They state that to date, the team has successfully worked on 28 solar projects with a total capacity of 290MW, and five energy storage projects with 70MW of capacity.

Describing the opportunity presented, Ben Guest, Head of Gresham House New Energy, said: “A change is coming in the nature of power in this country. We are determined to be part of this revolution that will contribute significantly towards a low carbon economy.

“The rise of renewables points to a major source of imbalance that requires an immediate solution – ESS is the answer. Curtailment is necessary today as the electricity grid currently has no means to store the excess electricity generated and this is ultimately an additional bill that the consumer is forced to pay. With consumers facing rising electricity bills, it is in everyone’s interests that none of this green energy is wasted.”

“The UK energy storage market is set for significant growth. However, the total potential of energy storage is currently limited by a lack of experienced operators, and this problem will only intensify, with demand for storage rapidly increasing as the deployment of renewable energy installations continues apace and the traditional coal and gas-fired generation are retired. We believe energy storage has significant potential from an institutional investment standpoint and is the key to a renewable energy future in the UK.”

Admission to the Specialist Fund Segment of the LSE is expected in early November 2018.

Read more HERE

29th October 2018
Blockchain transaction – How It Works?
What is a blockchain transaction, how it works, how is it useful for everyday life

By Guy Avtalyon

A blockchain transaction is a public record of all bitcoin transactions that have ever been executed. A block represents the current part of a blockchain. It records the recent information. When a block is completed, it becomes part of the blockchain. As a permanent database creating a new block. Blocks are connected to each other like a chain in real, consecutive order. Every following block contains a hash of the previous block. Blockchain Technology is one of the hottest and most interesting technologies in the present market.

The first blockchain transaction

The first transaction in the real-world took place on 22 May 2010. Laszlo Hanyecz made it. He bought two pizzas in Jacksonville, Florida for 10,000 BTC. In five days, the price grew 900%, rising from $0.008 to $0.08 for 1 bitcoin.

From a technical point of view, the most fundamental definition of a transaction is an atomic event that is allowed by the underlying protocol.

Speaking about bitcoin, transactions are ordinarily individual payments.

Lena sends John 10BTC.

If the word transaction conjures up a financial transaction in your mind, this is appropriate. The bitcoin blockchain is basically a list of all the bitcoin transactions since Bitcoin began. Bitcoin is only one of many blockchains. Not all blockchains limit their utility to payment transactions. Let’s say, transactions are payments when you think of the blockchain as a distributed ledger. The ledger that keeps a record of who owes who how much bitcoin.

Is the blockchain a data structure?

No, if you consider the blockchain as a data structure then a transaction would be just one of the events that update the data store. But there is a huge difference. Before invent of blockchain you had a situation that one event was able to update only one data table on one the particular machine. With blockchain, such a single event is updating a data table on every machine connected in the chain no matter where it is on the planet.

Blockchain Transactions are nothing special.

It is the same as in any other database. To keep it simple, a blockchain transaction is a transaction record in a blockchain. Just like you store a record in MySQL database. It’s exactly the same. The blockchain is a database. Transactions get stored in the form of blocks and the blocks form a chain to form the blockchain.

Is blockchain transaction safe?

Blockchain transactions are safer and more effective for most companies. And hence the demand for quality blockchain platforms which can be tapped for ensuring greater security.

Blockchain transactions are analogous to a wire transfer or cash transaction. Payment is done directly from one party to another. All without going through another financial institution. And without any third-party oversight. Payment processing is done over a private network of computers. Every single transaction is recorded in a blockchain, which is public.

Say, blockchain transactions are a feature of blockchain technology’s mainstream feature – cryptocurrencies.

Cryptocurrencies rely on the blockchain. Each block in the chain holds records. The records are the information of each and every transaction! The transaction’s information gets stored on blockchain ledgers.

What is blockchain in essence?
- A distributed ledger
- A consensus protocol
- A membership protocol
Blockchains transactions require consensus.
This means the participants must agree on who’s going to extend the blockchain, and how!

Public blockchains such as Bitcoin, Ethereum use consensus that looks like a crypto-lottery. For example, miners have proof-of-work which is crypto-puzzle and in that way get their lottery tickets. The one who wins this “game” gets the reward. The reward is permission to add one block to the blockchain and, also, such can print new money.
All miners try to approach to the longest chain.

This procedure is using to get consensus. It will take time, around 10 minutes. Transactions are not taken as fully confirmed for about one to two hours. After that point, they are adequate “deep” enough in the ledger.

Introducing an opposing account of the ledger, called as a fork, would be computationally exclusive. This stoppage is a susceptibility to the system. And also an important obstacle to the use of bitcoin-based systems. It is necessary for fast-paced transactions, such as monetary trading.

But we have to be honest, in spite of privacy-enhancing technologies such as encryption and identity management, someone can see blockchain transactions throughout network nodes. These produce metadata. So statistical analysis can reveal information even from encrypted data. As a result, it can allow for pattern recognition.

But quite frankly, away from someone cracking the cryptology. The blockchain transaction is one of the most secure digital capabilities available.

Advantages of blockchain transactions

Maintaining records of transactions is an essential function of all businesses. Hence, these records have to track the past performance of the company. And also, help with forecasting and planning for the future. And most organizations’ records take a lot of time and effort to create. That’s why the creation and storage processes are prone to errors. And these transactions have to be executed immediately. Yes, the settlement can take more time, from several hours to several days.

On the blockchain, the process of transaction verification and is recording. Let’s say, it is immediate and permanent. Because the ledger has distribution across several nodes. So, this provides the data to replicate and store instantaneously. On each node across the system.

What is recording in blockchain?

Recording in the blockchain means to note details of the transaction such as price, asset, and ownership. And also, they are verified and settled within seconds across all nodes. But, when registering the change on anyone ledger, you are registering simultaneously on all other copies of the ledger. Because each transaction is transparent. And permanently recorded across all ledgers. It is open for anyone to see. So there is no need for third-party verification.

Blockchain technology will disrupt the way we write. And enforce contracts, execute transactions, and maintain records.
28th October 2018
Bitcoin is Digital – How To Use It?

2 min read

Bitcoin is both: currency and commodity

What bitcoin is maybe the best describes this. Bitcoin cannot be held or kept in a pocket or wallet like currency.

Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country’s central bank or government. You can trade Bitcoin for goods or services with vendors who accept it as payment.

What is bitcoin else? Bitcoin is a worldwide payment system and decentralized virtual currency. It offers quick, cheap, and highly private payments for everyone.

Do you see? Bitcoin is both of this. How?

As Bitcoin is separated into two components, it might cause some confusion.

Bitcoin – with a capital letter is a decentralized P2P network which helps to facilitate transactions between people without a middleman. The Bitcoin protocol is openly published. Developers can review the code as well as easily adapt an open source software and modify it to their own needs.

bitcoin – with a lowercase ‘b’ is the coin which exists on the Bitcoin network. It can be perceived as a currency for the internet. In the same way as dollar or euro are currencies for the United States and Europe. Bitcoin-the-coin is the first cryptocurrency.

Also known as virtual or digital currency and BTC is an abbreviation of it.

What is Bitcoin?

In 2009, Bitcoin was developed and launched as an open-source protocol. It was based on a whitepaper written by Satoshi Nakamoto. He described the bitcoin as a digital currency. That is to say, backed up by the idea of an electronic payment system. But such that should be secure, verifiable and independent of any central authority. The first Bitcoin transaction was for two pizzas costing 10,000 BTC (a cool $190,000,000 at the high point of 2017).

Since the Bitcoin release, it has experienced highs and lows. However, it stayed as the preeminent cryptocurrency in the world.

Unlike regular fiat currency, there is no central Bitcoin bank to print and regulate the flow of currency. Bitcoin is held by users linked together by a central ledger. The ledger is a core Bitcoin feature known as the blockchain. The blockchain records every single transaction made using Bitcoin. It validates transactions and ensures the integrity of the network.

What is bitcoin in comparison with fiat currencies?

It’s like an online version of cash. You can use it to buy products and services. But not many shops accept Bitcoin yet. And some countries have banned it altogether.

The physical Bitcoins you see in photos are a ornaments. They would be worthless without the private codes printed inside them.

Fiat currencies are a physical medium of exchange with an unlimited supply. It is issued and controlled by a government. Bitcoin, on the other hand, has a set maximum supply of 21M coins. And as on first place, it is not controlled by any government or entity. Both crypto and fiat currencies coexist alongside each other. And have their advantages and disadvantages.

Bitcoin is digital

Bitcoin has some resemblances to fiat money: value changes according to market variables. As Bitcoin is digital people can use them to buy things or pay for services. Also, people already use it in their daily lives as any other fiat currency, but this is where similarities end.

Bitcoin has several attributes that set it aside from traditional currencies as a pan-global means of exchange. Central banks or monetary authorities do not control the number of Bitcoins.

It is decentralized making it global. Anyone with a computer can set up a Bitcoin address to receive or transfer Bitcoins in seconds.

Bitcoin is anonymous.

The cryptocurrency allows users to maintain multiple addresses and setting up an address requires no personal information.

DLT technology makes Bitcoin completely transparent. It stores complete details by an address of every transaction that ever occurs. Transfers of Bitcoin are immediate and when you make it once, they are final. At the same time, there are some fees. And international and domestic transfers are not subject to foreign currency exchange rates and fees for the transfer. There are no borders when it comes to Bitcoin.

Bitcoin is a fixed asset.

However, Bitcoin is divisible so the growth potential for the exchange medium is unlimited. Certainly, one of the most interesting inventions that came alongside Bitcoin is blockchain or distributed ledger technology (DLT). DLT has amazing potential when it comes to traditional operations. And also as settlement results for businesses in the financial as well as other industries.

What bitcoin is maybe the best describes this. Bitcoin cannot be held or kept in a pocket or wallet like currency.

So, what is bitcoin if you can’t touch it?

It is purely a computer-based means of exchange. Bitcoin has morphed from a fledgling digital currency into an asset or commodity. In fact, Bitcoin somewhat straddles the median. Its use of a currency is limited, it is too volatile to be considered a solid asset. But it is traded similarly to regular stocks and shares.

Can we, on the question what is bitcoin, say it is currency?

There is a great deal of debate about whether Bitcoin is a currency. We called The Merriam-Webster Dictionary for help and found that this dictionary defines currency as:

Circulation as a medium of exchange
General use, acceptance, or prevalence
The quality or state of being present
Something (like coins, treasury notes, and banknotes) that is in circulation as a medium of exchange
Paper money in circulation
A comment article used for barter
A medium of verbal or intellectual expression

The official definition of currency may leave you more confused about whether what is bitcoin. Is it a currency or something else? It certainly meets some of the characteristics in the definition, but not all.

In September 2015, the Commodity Futures Trading Commission (CFTC) in the United States officially designated Bitcoin as a commodity.

Can we, on the question what is bitcoin, say it is a commodity?

Bitcoin is one of those assets that does not quite fit well into any definition. In addition, and a historical understanding of what is a currency and what is a commodity.

While throughout history, many commodities and even some manufactured products have served as currency. The best examples are gold and silver. Central banks and monetary authorities around the world continue to hold vast gold reserves. Moreover, they are categorizing their holdings as “foreign exchange reserves.” Hence, both gold and silver are off in the same class as Bitcoin.

As you can see, the classification what bitcoin is as a commodity is both dubious and understandable, at the same time. It is not easy to categorize Bitcoin. Because it is so new and different from other assets available to the market participants.

What is bitcoin in the future?

Bitcoin is a child of the technological revolution.

As the first global currency that people can use all over the world as a method of exchange without involving governments. This cryptocurrency will continue to attract interest and resistance.

For people in countries where currency flows are subject to stringent government control, bitcoin offers a method to transfer fortune to parts of the world where restrictions are less difficult.

Bitcoin appears here to stay, at least for the time being.

Risk Disclosure (read carefully!)

26th October 2018
ESMA: European Commission to regulate the crypto space with existing legislation

1 min read

The European Securities and Markets Authority (ESMA) new report recommends to the European Commission that it regulate the cryptocurrency space with existing legislation.

Rather than instilling new rules and laws. This the Securities and Markets Stakeholder Group (SMSG) wrote in their report.

According to bitcoinmagazine.com, the report identifies that most crypto assets are covered by the Unfair Commercial Practices Directive. That regulates unfair business practices in the European Union.

Therefore, requires correlated laws. As a result, to incorporate it into each member state’s legal system.

Questions

The report asks several questions about payment tokens, utility tokens, and asset tokens. It wants to determine whether they can or should fall under present statutes.

‘The SMSG focuses this report on financial regulation in the remit of ESMA. In order to determine what crypto-assets are or should be covered by what regulation, the SMSG has classified crypto-assets on the basis of the following questions (see decision tree below):

1. Does it give the owner an entitlement against the issuer? If so, is it an entitlement in kind or a monetary entitlement? If it is a monetary entitlement, is it profit sharing, a predetermined entitlement, or undetermined other kinds of entitlement?

2. Is it transferable?

3. Is it scarce, and how is scarcity controlled?

4. Does it give decision power on the project of the issuer?’

The SMSG concluded that MiFID doesn’t cover payment tokens.

The report mentions that MiFID doesn’t cover payment tokens like bitcoin.

This is the EU legislation that regulates companies providing services to clients. Likewise, clients related to stock shares and bonds.

The Prospectus Regulation, which rules businesses’ shareholding structures don’t these tokens are not included in. Or the Market Abuse Regulation.

The report suggests that these assets carry the same risks as other investment objects. And thus the authors urge the EU to place cryptocurrencies under MiFID II control.

Speaking about utility tokens

The report stated they are a completely different ballgame. ESMA’s report, these currencies did not classify as investments.

According to the report, they provide investors to access a company’s products and services. ICOs or initial coin offerings are responsible to issue utility tokens.

To raise capital, a new company or startup usually sell a utility token to investors. In return, they gain access to a new coin.

EU financial regulations don’t cover utility tokens.

Because they are not transferable and are only usable in a relationship between the user and the issuer. Thus, the report says MiFID II should not cover these currencies. Unless they are considered transferable.

For example Filecoin, which builds and runs data applications and helps build smart contracts. It has the potential to become an investment object in the future.

Consequently, it would have many of the same risks as traditional stocks.

Tokens

The report examines asset tokens, which are physical goods. Companies can use it to finance new business projects or transfers of goods. In that case, they are recorded into the blockchain.

In that way, they provide stronger security measures for both parties, the receiving, and offers.

The report examines which assets are financial instruments or transferable securities. If a token offers a user financial entitlement of some kind. In other words, it bears the same features as both bonds and shares. It is thus transferable.

And the report’s suggestion is it should fall under MiFID II and the Prospectus Regulation.

Examples include EOS and any other ERC20-based tokens. It is possible to purchase and trade via digital exchanges. They are transferable between rewards programs, compatible wallets, etc.

ESMA doesn’t have the power to implement new laws and regulations regarding any financial instruments. ESMA can’t change existing laws. The report is intended to advise ESMA on how to discuss such changes with the European Commission.

Read the whole report here

Risk Disclosure (read carefully!)

25th October 2018
Blockchain Technology – Is There Future For It

2 min read

Blockchain technology provides transactions and transfers online without the use of an intermediary.

The Blockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies. More areas of applications are being discovered and tested with each passing day. Once the technology is adopted and accepted on a global level, it’ll transform the way we live today.

Blockchain technology simply means a decentralized trusty network. It works by having a native asset, a decentralized ledger and some algorithms based around a game theory model. It allows everyone on the network to reach consensus.

Let me try to explain what blockchain technology is

The traditional way of sharing documents with collaboration is to send a Microsoft Word document to another recipient and ask them to make revisions to it.

The problem with that scenario is that you need to wait until receiving a return copy before you can see or make other changes. This because you are locked out of editing it until the other person is done with it. That’s how databases work today. Two owners can’t be messing with the same record at once.

That’s how banks maintain money balances and transfers. They briefly lock access (or decrease the balance) while they make a transfer. Then update the other side, then re-open access (or update again).

With Google Docs (or Google Sheets), both parties have access to the same document at the same time. And the single version of that document is always visible to both of them. It is like a shared ledger, but it is a shared document. The distributed part comes into play when sharing involves a number of people.

Efficiency and effectiveness

Imagine the number of legal documents that you can use that way. Instead of passing them to each other, losing track of versions. And also not being in sync with the other version. So, why can’t *all* business documents become shared instead of transferred back and forth? So many types of legal contracts would be ideal for that kind of workflow.

You don’t need a blockchain technology to share documents, but the shared documents analogy is a powerful example.

Far from a short-term trend, blockchain technology is revolutionary. It is a new approach to transactions that major companies are beginning to implement.

In a market saturated with new and innovative business strategies, it can be difficult to decide which to adopt. On one side you don’t want to fall behind when it comes to the latest technology.

On the other, you don’t want to waste your money on a “cutting-edge” fluke. If you’re looking for a new, efficient way to carry out transactions, blockchain is a technology that your company might find helpful.

What Blockchain technology requires

You might ask why blockchain technology seems so cryptic. The challenge is that it used to be almost exclusively connected to tech circles. And was not widely used by the general public and non-tech businesses. This history is part of why it seems so mysterious today. Because it’s relatively new to most of us, and the way it works can be difficult to explain without going into confusing and complex concepts.

Blockchain technology was originally developed for bitcoin, the base of other cryptocurrencies. But the blocks in a blockchain might contain information about identity, dates, or most anything.

Marc Andreessen from VC firm Andreessen Horowitz and American entrepreneur, investor, and software engineer called Bitcoin and the underlying blockchain technology a “breakthrough in computer science”.

“The practical consequence (…is…) for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

Comparisons

In a 2014 New York Times op-ed, Marc Andreessen, likened Bitcoin to personal computers and the Internet in their early days. Each of which depended on the high expectations of their success to make them actually successful.

“This is the classic ‘chicken and egg’ problem with new technology: new technology is not worth much until it’s worth a lot,” he wrote about blockchain technology.

By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. It is originally developed for the digital currency, Bitcoin. But the tech community is now finding other potential uses for the technology.

The short version of it:

Blockchain technology provides a way to make transactions and transfers online without the use of an intermediary. Instead of trusting a third party to keep the transaction history safe and accurate, blockchain technology lets you seal “pages” of transactions with a key code for security.

With blockchain technology, many people can write entries into a record of information. And a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

But a feature that Wikipedia does not share with the classical blockchain is encryption. Because ownership and anonymity is an important feature of blockchain technology. Encryption of information is necessary so that no one can steal data or duplicate them.

Individuals and businesses use blockchain technology for a variety of reasons. Though some “shady businesses” might use blockchain technology to avoid leaving a paper trail, it’s more often employed to gain improved assurance and privacy. It also allows users to exchange money without the backing of physical currency. This is one of the qualities that has made Bitcoin famous and makes it sometimes controversial.

Bottom line

There’s a wide variety of blockchain technology-based services on the market.

One of the most relevant reasons that many companies are adopting blockchain technology is efficiency. We can all realize how exchanges can become quicker. And simpler too, when they don’t have to go through a third party. It’s also beginning to move document authentication toward obsolescence, removing a step in the transactional process.

Blockchain technology can also make companies feel like their information is safer and more secure. In an age where hacking banks cannot always resist off attempts to attack people’s financial privacy. Therefore, blockchain technology is a way to feel a greater sense of control over transactions.

Major companies are adopting blockchain technology because they don’t want to miss out on what could become. And it is already extremely popular and efficiently.

“In the mid-to-late 2000’s, big companies missed the social media train,” marketing and business strategist Clay Hebert said. “They couldn’t see how Twitter or Facebook would immediately impact their business, so they were slow to adopt these technologies. They don’t want to play catch-up again.”

Risk Disclosure (read carefully!)

25th October 2018
How To Make Money With Blockchain Technology?
The 21st century is all about technology, a new addition to the pack is Blockchain technology.
There are many ways you to make money with Blockchain

2 min read

The Blockchain is the revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used instead of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as the Blockchain technology.

With the increasing need for modernization in our everyday lives, people need to accept new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technology like augmented IoT that have gained tread in the past decade and now there’s a new addition to the pack i.e. Blockchain technology.

Actually, the 21st century is all about technology.

There’s a misconception that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of blockchain technology. The blockchain is just a public ledger of transactions on the bitcoin network.

Before we tell you how to make money with blockchain technology, there are several things you have to know.

Though blockchain technology has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.

At first, let’s keep a check on the similarities that both public and private blockchain have:
- Both Public and Private blockchain have peer-to-peer decentralized networks.
- All the participants of the network maintain the copy of the shared ledger with them.
- The network maintains copies of the ledger and synchronizes the latest update with the help of consensus.
- The rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks.
And let’s see the differences between them.

Public Blockchain – It is a permissionless ledger and can be accessed by any and everyone. Anyone who has access to the internet is eligible to download and access it, can check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain.

Public blockchains allow communities all over the world to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. The rules decided and applied initially have very little scope of modification in the later stages.

Private Blockchain – Opposite to the public blockchain, private blockchains are shared only among the trusted participants. The overall control of the network is in the hands of the owners. The rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization, etc.

Private blockchains can run alone or can be integrated with other blockchains too. These are usually used by enterprises and organizations. So we can say, the level of trust required amongst the participants is higher in private blockchains.

Ways to make money with Blockchain technology

Though Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors. The variety of blockchain technology-based businesses with paths to profitability is striking. Here are four that illustrate the width of innovation the blockchain marketplace is bringing to potentially profitable business ideas. While Millennials are certainly moving towards “alternative career paths” more often than their Generation X or Baby Boomer counterparts, there are countless ways for absolutely anyone to capitalize on the new wave of oncoming technology. Here, you’ll find an awesome starting point for making money and freelancing with blockchain technology.

Let’s see how Blockchain technology can be useful in actual implementation.

Mining

Mining cryptocurrency is considered the granddaddy of making bank on blockchain technology. Here’s a quick rundown of how the blockchain technology works in this example. Multiple transactions make up a block. Miners verify blocks through a process. They apply a mathematical formula to each block, turning it into something make money blockchain called a “hash.” Essentially, a hash is an alphanumeric sequence. The hash is then stored at the end of the blockchain. When each block’s hash is created, it uses the previous block’s hash. More or less, this is the digital version of a wax seal.

So, once a block has been “sealed off,” a flurry of activity happens. The first miner to produce the hash receives a reward. As more of the cryptocurrency is mined, the rewards are halved. The process itself is pretty straightforward. What’s not straightforward, though, is actually making it happen.

Since so many people have computers strong enough to mine, it’s far more difficult to make it a lucrative endeavor. Instead, mining pools have popped up. Mining pools are just groups of people working together to mine. If the pool wins, everyone in the pool has distributed a portion of that winning. That’s not to say, though, that mining smaller altcoins on your own isn’t a possibility.

Trading

This is definitely a lucrative way to make money with blockchain technology.

Cryptocurrencies reside on exchanges, just like fiat money. However, they have much more in common with stocks. Because cryptocurrency markets are so volatile, they can feel like more of a risk than they’re worth. But, to make money with them you just need to be aware of trends and do your research. Know the specific risks associated with trading. There are literally thousands of cryptocurrencies on the market.

On the flip side, if you choose to hold on to certain cryptocurrencies, you are considered a hodler.

Do your research. Read up on the market. Trading crypto is crazy fun, regardless of if you make money.

Freelancing

The models are different but one thing is consistent – the freelance marketplace is growing rapidly. For entrepreneurs looking to build startups on the blockchain technology, companies looking to find reliable, qualified freelancers looking for a fair and transparent platform with quick payments and low fees, the boom of cryptocurrencies and the blockchain technology is the new holy grail in freelance work exchange.

There are other ways you can make money with blockchain technology.
- Build your own blockchain
- Build something useful on top of someone else’s blockchain and sell it as a service
- Help someone who is building a blockchain or blockchain application to find a customer or sell their blockchain technology
- Invest in a business doing the above
- Learn more about blockchain technology and teach/run courses or webinars about blockchain
- Look for problems or businesses that have an urgent or important problem that could use a blockchain type solution and build a business case
- Get involved in an event – like a hackathon, conferences or workshop – in related industries like fintech, cryptocurrency, etc
- Volunteer or get experience working for various blockchain companies
- Download, install or register for a blockchain app and play around with it, see if there’s anything you could do with it
- Go online and explore blockchain forums, discussion groups or communities and see what opportunities may be available or advertised and speak with those groups/companies
Choose how big a wave you want to ride. If you are still learning, don’t go for that massive wave, it will kill you. You can have fun and make money from the smaller waves. Don’t let media hype distract you from this. Media make money talking about the megastars – such as Bezos and Zuckerberg – who are riding the mega waves. The story of somebody making a life-changing amount of money in a tiny niche market won’t sell page views, but yet there are millions of these stories and one of them can be you.

Bottom line: The blockchain technology seems to be growing with each passing day. Although, many claim this to be a bubble that will soon burst. However, the pace of improvement and increasing application in different fields shows that it is here to stay. There is no domain which in untouched with the impact of Blockchain technology. Companies in healthcare, medical, transportation, retail, etc. are eyeing towards this technology as a probable solution to the issue of safety. This has made more and more companies invest money in Blockchain companies. Hence, we have them earning more and more money.

Many companies are also investing in blockchain technology, and thus, it is garnering the attention of many. Blockchain came into existence in 2009, and since then it has never looked back. It is here to stay.

Risk Disclosure (read carefully!)
24th October 2018
Blockchain ‘Interesting’ But Hyped

Blockchain not the best technology for every considered use, says Australian government report.

2 min read

What a change!

In May, Australia’s Department of Home Affairs revealed a plan to investigate blockchain’s potential to bring secure and transparent international trade and supply chain management.

The chief digital officer of Digital Transformation Agency (DTA), Peter Alexander said: “Blockchain: Interesting technology but early on in its development, it’s kind of at the top of a hype cycle.” Alexander said at a parliamentary committee meeting on Tuesday, as reported by ZDNet.

He was further quoted as saying that most of the hype comes from companies seeking to make profits in this area.

“It’s not that we don’t trust any of the vendors – that would be an unfair characterization – we trust the vendors, but note that the motivation is general sales and making revenue.”

He said standardization of blockchain might open up more opportunities for its use in providing government services.

“We’re not saying that blockchain doesn’t have potential but today, without standardization, there is the challenge of blockchain becoming a little fragmented. When we get to the standardized blockchain then the opportunities for it will grow.”

There is better technology?

Alexander continued, saying that, “for every use of blockchain you would consider today, there is a better technology.”
According to InnovationAus.com. Alexander said that one of the defining features of the blockchain, the potential for anonymity, is among the biggest stumbling blocks.

“Generally speaking when the government is engaging with someone, we want to have a trusted relationship with them. We want to know who they are and give them a personalized service,” he said. “Blockchain is good for low-trust engagement. You don’t know who you’re dealing with but have a series of ledgers that can give some validation and support.”

Peter Alexander, the CDO at DTA said the technology is worth keeping an eye on but is not yet mature enough.

According to Alexander, blockchain is at the “top of the hype cycle”, with demand driven by the industry.

“It would be fair to say that a lot of the big vendors are pushing blockchain very hard. And internationally most of the hype around blockchain is coming from vendors and companies. Not from governments and users and deliverers of services,” he said.

Interesting timing

It is indicated to this opinion was arrived at after the Australian government’s Digital Transformation Agency (DTA) received AU$700,000 (about US$500,000) from the government in May. That amount came to explore blockchain applications within government services.

The Australian government’s DTA has cast doubts over the validity of blockchains for governmental purposes. The agency has been working with a number of government agencies. They wanted to develop prototypes for the use of blockchain to deliver services. Including with the Department of Human Services for welfare payments and cargo settlement.

On the other side is Australia’s new prime minister, Scott Morrison. He is a fan of fintech, open banking and technologies such as blockchain that will drive Australia’s future.

As treasurer, Morrison urged attendees at the Australian Fintech Awards in early August 2018. He wanted to take advantage of the disruption wave sweeping through the global economy.

“I am frankly counting on you not to stuff this up. You need to make this work…In today’s global economy, the ability for economies to become more productive is not being done the old way: the biggest transformer of productivity [will be] innovation,” he told attendees at the awards, as reported by the Australian Financial Review.

Unfortunately, Australia is not an isolated case.

China is another nation that finds blockchain’s anonymity a problem. Earlier this year Chinese students encoded allegations of sexual harassment against a prominent professor on the Ethereum blockchain. They wanted to evade the country’s censors. All social media posts on the issue having been blocked. The same technique was used to spread the news about low quality and counterfeit vaccines, another scandal the government sought to cover up.

China banned crypto

But the Chinese government has drafted a new regulation. That ordinance would require users to provide their real names and national ID card numbers when registering for a blockchain service. The policy would also demand that blockchain services remove ‘illegal information’. And before it can be spread among users. Also under the proposed legislation. Service providers would also have obligation to retain backups of user data for six months. Of course, and to hand it over to the police on request.

China also banned cryptocurrency trading earlier this year, although. Apparently, this has been less than effective. The Ethereum Hotel recently opened in the country, accepting payment in cryptocurrencies.

One note to remember. Without the possibility of anonymity, a permanent ledger could also be a powerful tool in the authoritarian regime’s surveillance and control systems.

Unlike Australia and China, UK leads the way in blockchain deployments for the supply chain.

There is some survey conducted by consultancy Capgemini. They researched 450 organizations implementing blockchain in their supply chain. And the result wasn’t surprising. Only three percent so far took initial experiments into production at scale. Well, the adoption and the technology itself are at an early stage. The Capgemini report identifies a number of current use cases. They are in the range from low complexity/high adoption scenarios. Like the prevention of counterfeits and tracking asset maintenance, for instance. But also more ambitious and complex uses. Like customer loyalty programs, contract labor procurement, and regulatory compliance, for example.

United Kingdom example

The UK currently leads the way with production and pilot implementations of blockchain projects in the supply chain. At the same time, the USA leads in terms of funding blockchain initiatives.

In the UK specifically, the consumer products vertical is the biggest adopter among those surveyed. It is followed by manufacturing and then retail. However, globally manufacturing is in the leads in adopting this technology.

Capgemini has been working with blockchain technology since 2016. Then it began developing solutions for the financial services industry. The report predicts that experimenting with blockchain will peak in 2020. But it will enter mainstream supply chain usage by 2025.

While throughout the history there were numerous cases of unfounded fears of new technology. For many potential uses, the blockchain is not mature enough. Or lacks the functionality. Or there is the issue of the anonymity of users.

On the other hand, this anonymity could inhibit the nefarious motives and actions of less savory governments against their own citizens.

We will see in which direction the further development of blockchain will go. There is one solid fact: blockchain will survive.

Risk Disclosure (read carefully!)

23rd October 2018