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Bob The Magic Custodian



Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses.
Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes.

First, some background. Here is a summary of how custodians make us more secure:

Previously, we might give Alice our crypto assets to hold. There were risks:

But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
See - all problems are solved! All we have to worry about now is:
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are!

"On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid".
"Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since."

"As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!"
"Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?"

"Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party."
"Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!"

"What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven."
"Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!"

"We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies.
And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often".

How many holes have to exist for your funds to get stolen?
Just one.

Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so?
If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security.

The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle.

And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet?

Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds.
So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever.

Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see.
It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation.
A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7.

History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance.
Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.)
Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive.

Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today.
Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well.
Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do.

Facts/background/sources (skip if you like):



Thoughts?
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)

Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)
A whirlwind tour of Defi, paying close attention to protocols that we’re leveraging at Genesis Block.
https://reddit.com/link/hrrt21/video/cvjh5rrh12b51/player
This is the third post of Crypto-Powered — a new series that examines what it means for Genesis Block to be a digital bank that’s powered by crypto, blockchain, and decentralized protocols.
Last week we explored how building on legacy finance is a fool’s errand. The future of money belongs to those who build with crypto and blockchain at their core. We also started down the crypto rabbit hole, introducing Bitcoin, Ethereum, and DeFi (decentralized finance). That post is required reading if you hope to glean any value from the rest of this series.
97% of all activity on Ethereum in the last quarter has been DeFi-related. The total value sitting inside DeFi protocols is roughly $2B — double what it was a month ago. The explosive growth cannot be ignored. All signs suggest that Ethereum & DeFi are a Match Made in Heaven, and both on their way to finding strong product/market fit.
So in this post, we’re doing a whirlwind tour of DeFi. We look at specific examples and use-cases already in the wild and seeing strong growth. And we pay close attention to protocols that Genesis Block is integrating with. Alright, let’s dive in.

Stablecoins

Stablecoins are exactly what they sound like: cryptocurrencies that are stable. They are not meant to be volatile (like Bitcoin). These assets attempt to peg their price to some external reference (eg. USD or Gold). A non-volatile crypto asset can be incredibly useful for things like merchant payments, cross-border transfers, or storing wealth — becoming your own bank but without the stress of constant price volatility.
There are major governments and central banks that are experimenting with or soon launching their own stablecoins like China with their digital yuan and the US Federal Reserve with their digital dollar. There are also major corporations working in this area like JP Morgan with their JPM Coin, and of course Facebook with their Libra Project.
Stablecoin activity has grown 800% in the last year, with $290B of transaction volume (funds moving on-chain).
The most popular USD-pegged stablecoins include:
  1. Tether ($10B): It’s especially popular in Asia. It’s backed by USD in a bank account. But given their lack of transparency and past controversies, they generally aren’t trusted as much in the West.
  2. USDC ($1B): This is the most reputable USD-backed stablecoin, at least in the West. It was created by Coinbase & Circle, both well-regarded crypto companies. They’ve been very open and transparent with their audits and bank records.
  3. DAI ($189M): This is backed by other crypto assets — not USD in a bank account. This was arguably the first true DeFi protocol. The big benefit is that it’s more decentralized — it’s not controlled by any single organization. The downside is that the assets backing it can be volatile crypto assets (though it has mechanisms in place to mitigate that risk).
Other notable USD-backed stablecoins include PAX, TrueUSD, Binance USD, and Gemini Dollar.
tablecoins are playing an increasingly important role in the world of DeFi. In a way, they serve as common pipes & bridges between the various protocols.
https://preview.redd.it/v9ki2qro12b51.png?width=700&format=png&auto=webp&s=dbf591b122fc4b3d83b381389145b88e2505b51d

Lending & Borrowing

Three of the top five DeFi protocols relate to lending & borrowing. These popular lending protocols look very similar to traditional money markets. Users who want to earn interest/yield can deposit (lend) their funds into a pool of liquidity. Because it behaves similarly to traditional money markets, their funds are not locked, they can withdraw at any time. It’s highly liquid.
Borrowers can tap into this pool of liquidity and take out loans. Interest rates depend on the utilization rate of the pool — how much of the deposits in the pool have already been borrowed. Supply & demand. Thus, interest rates are variable and borrowers can pay their loans back at any time.
So, who decides how much a borrower can take? What’s the process like? Are there credit checks? How is credit-worthiness determined?
These protocols are decentralized, borderless, permissionless. The people participating in these markets are from all over the world. There is no simple way to verify identity or check credit history. So none of that happens.
Credit-worthiness is determined simply by how much crypto collateral the borrower puts into the protocol. For example, if a user wants to borrow $5k of USDC, then they’ll need to deposit $10k of BTC or ETH. The exact amount of collateral depends on the rules of the protocol — usually the more liquid the collateral asset, the more borrowing power the user can receive.
The most prominent lending protocols include Compound, Aave, Maker, and Atomic Loans. Recently, Compound has seen meteoric growth with the introduction of their COMP token — a token used to incentivize and reward participants of the protocol. There’s almost $1B in outstanding debt in the Compound protocol. Mainframe is also working on an exciting protocol in this area and the latest iteration of their white paper should be coming out soon.
There is very little economic risk to these protocols because all loans are overcollateralized.
I repeat, all loans are overcollateralized. If the value of the collateral depreciates significantly due to price volatility, there are sophisticated liquidation systems to ensure the loan always gets paid back.
https://preview.redd.it/rru5fykv12b51.png?width=700&format=png&auto=webp&s=620679dd84fca098a042051c7e7e1697be8dd259

Investments

Buying, selling, and trading crypto assets is certainly one form of investing (though not for the faint of heart). But there are now DeFi protocols to facilitate making and managing traditional-style investments.
Through DeFi, you can invest in Gold. You can invest in stocks like Amazon and Apple. You can short Tesla. You can access the S&P 500. This is done through crypto-based synthetics — which gives users exposure to assets without needing to hold or own the underlying asset. This is all possible with protocols like UMA, Synthetix, or Market protocol.
Maybe your style of investing is more passive. With PoolTogether , you can participate in a no-loss lottery.
Maybe you’re an advanced trader and want to trade options or futures. You can do that with DeFi protocols like Convexity, Futureswap, and dYdX. Maybe you live on the wild side and trade on margin or leverage, you can do that with protocols like Fulcrum, Nuo, and DDEX. Or maybe you’re a degenerate gambler and want to bet against Trump in the upcoming election, you can do that on Augur.
And there are plenty of DeFi protocols to help with crypto investing. You could use Set Protocol if you need automated trading strategies. You could use Melonport if you’re an asset manager. You could use Balancer to automatically rebalance your portfolio.
With as little as $1, people all over the world can have access to the same investment opportunities and tools that used to be reserved for only the wealthy, or those lucky enough to be born in the right country.
You can start to imagine how services like Etrade, TD Ameritrade, Schwab, and even Robinhood could be massively disrupted by a crypto-native company that builds with these types of protocols at their foundation.
https://preview.redd.it/agco8msx12b51.png?width=700&format=png&auto=webp&s=3bbb595f9ecc84758d276dbf82bc5ddd9e329ff8

Insurance

As mentioned in our previous post, there are near-infinite applications one can build on Ethereum. As a result, sometimes the code doesn’t work as expected. Bugs get through, it breaks. We’re still early in our industry. The tools, frameworks, and best practices are all still being established. Things can go wrong.
Sometimes the application just gets in a weird or bad state where funds can’t be recovered — like with what happened with Parity where $280M got frozen (yes, I lost some money in that). Sometimes, there are hackers who discover a vulnerability in the code and maliciously steal funds — like how dForce lost $25M a few months ago, or how The DAO lost $50M a few years ago. And sometimes the system works as designed, but the economic model behind it is flawed, so a clever user takes advantage of the system— like what recently happened with Balancer where they lost $500k.
There are a lot of risks when interacting with smart contracts and decentralized applications — especially for ones that haven’t stood the test of time. This is why insurance is such an important development in DeFi.
Insurance will be an essential component in helping this technology reach the masses.
Two protocols that are leading the way on DeFi insurance are Nexus Mutual and Opyn. Though they are both still just getting started, many people are already using them. And we’re excited to start working with them at Genesis Block.
https://preview.redd.it/wf1xvq3z12b51.png?width=700&format=png&auto=webp&s=70db1e9587f57d0c470a4f9f4523c216929e1876

Exchanges & Liquidity

Decentralized Exchanges (DEX) were one of the first and most developed categories in DeFi. A DEX allows a user to easily exchange one crypto asset for another crypto asset — but without needing to sign up for an account, verify identity, etc. It’s all via decentralized protocols.
Within the first 5 months of 2020, the top 7 DEX already achieved the 2019 trading volume. That was $2.5B. DeFi is fueling a lot of this growth.
https://preview.redd.it/1dwvq4e022b51.png?width=700&format=png&auto=webp&s=97a3d756f60239cd147031eb95fc2a981db55943
There are many different flavors of DEX. Some of the early ones included 0x, IDEX, and EtherDelta — all of which had a traditional order book model where buyers are matched with sellers.
Another flavor is the pooled liquidity approach where the price is determined algorithmically based on how much liquidity there is and how much the user wants to buy. This is known as an AMM (Automated Market Maker) — Uniswap and Bancor were early leaders here. Though lately, Balancer has seen incredible growth due mostly to their strong incentives for participation — similar to Compound.
There are some DEXs that are more specialized — for example, Curve and mStable focus mostly only stablecoins. Because of the proliferation of these decentralized exchanges, there are now aggregators that combine and connect the liquidity of many sources. Those include Kyber, Totle, 1Inch, and Dex.ag.
These decentralized exchanges are becoming more and more connected to DeFi because they provide an opportunity for yield and earning interest.
Users can earn passive income by supplying liquidity to these markets. It usually comes in the form of sharing transaction fee revenue (Uniswap) or token rewards (Balancer).
https://preview.redd.it/wrug6lg222b51.png?width=700&format=png&auto=webp&s=9c47a3f2e01426ca87d84b92c1e914db39ff773f

Payments

As it relates to making payments, much of the world is still stuck on plastic cards. We’re grateful to partner with Visa and launch the Genesis Block debit card… but we still don’t believe that's the future of payments. We see that as an important bridge between the past (legacy finance) and the future (crypto).
Our first post in this series shared more on why legacy finance is broken. We talked about the countless unnecessary middle-men on every card swipe (merchant, acquiring bank, processor, card network, issuing bank). We talked about the slow settlement times.
The future of payments will be much better. Yes, it’ll be from a mobile phone and the user experience will be similar to ApplePay (NFC) or WePay (QR Code).
But more importantly, the underlying assets being moved/exchanged will all be crypto — digital, permissionless, and open source.
Someone making a payment at the grocery store check-out line will be able to open up Genesis Block, use contactless tech or scan a QR code, and instantly pay for their goods. All using crypto. Likely a stablecoin. Settlement will be instant. All the middlemen getting their pound of flesh will be disintermediated. The merchant can make more and the user can spend less. Blockchain FTW!
Now let’s talk about a few projects working in this area. The xDai Burner Wallet experience was incredible at the ETHDenver event a few years ago, but that speed came at the expense of full decentralization (can it be censored or shut down?). Of course, Facebook’s Libra wants to become the new standard for global payments, but many are afraid to give Facebook that much control (newsflash: it isn’t very decentralized).
Bitcoin is decentralized… but it’s slow and volatile. There are strong projects like Lightning Network (Zap example) that are still trying to make it happen. Projects like Connext and OmiseGo are trying to help bring payments to Ethereum. The Flexa project is leveraging the gift card rails, which is a nice hack to leverage existing pipes. And if ETH 2.0 is as fast as they say it will be, then the future of payments could just be a stablecoin like DAI (a token on Ethereum).
In a way, being able to spend crypto on daily expenses is the holy grail of use-cases. It’s still early. It hasn’t yet been solved. But once we achieve this, then we can ultimately and finally say goodbye to the legacy banking & finance world. Employees can be paid in crypto. Employees can spend in crypto. It changes everything.
Legacy finance is hanging on by a thread, and it’s this use-case that they are still clinging to. Once solved, DeFi domination will be complete.
https://preview.redd.it/svft1ce422b51.png?width=700&format=png&auto=webp&s=9a6afc9e9339a3fec29ee2ae743c07c3042ea4ce

Impact on Genesis Block

At Genesis Block, we’re excited to leverage these protocols and take this incredible technology to the world. Many of these protocols are already deeply integrated with our product. In fact, many are essential. The masses won’t know (or care about) what Tether, USDC, or DAI is. They think in dollars, euros, pounds and pesos. So while the user sees their local currency in the app, the underlying technology is all leveraging stablecoins. It’s all on “crypto rails.”
https://preview.redd.it/jajzttr622b51.png?width=700&format=png&auto=webp&s=fcf55cea1216a1d2fcc3bf327858b009965f9bf8
When users deposit assets into their Genesis Block account, they expect to earn interest. They expect that money to grow. We leverage many of these low-risk lending/exchange DeFi protocols. We lend into decentralized money markets like Compound — where all loans are overcollateralized. Or we supply liquidity to AMM exchanges like Balancer. This allows us to earn interest and generate yield for our depositors. We’re the experts so our users don’t need to be.
We haven’t yet integrated with any of the insurance or investment protocols — but we certainly plan on it. Our infrastructure is built with blockchain technology at the heart and our system is extensible — we’re ready to add assets and protocols when we feel they are ready, safe, secure, and stable. Many of these protocols are still in the experimental phase. It’s still early.
At Genesis Block we’re excited to continue to be at the frontlines of this incredible, innovative, technological revolution called DeFi.
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None of these powerful DeFi protocols will be replacing Robinhood, SoFi, or Venmo anytime soon. They never will. They aren’t meant to! We’ve discussed this before, these are low-level protocols that need killer applications, like Genesis Block.
So now that we’ve gone a little deeper down the rabbit hole and we’ve done this whirlwind tour of DeFi, the natural next question is: why?
Why does any of it matter?
Most of these financial services that DeFi offers already exist in the real world. So why does it need to be on a blockchain? Why does it need to be decentralized? What new value is unlocked? Next post, we answer these important questions.
To look at more projects in DeFi, check out DeFi Prime, DeFi Pulse, or Consensys.
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Let's discuss some of the issues with Nano

Let's talk about some of Nano's biggest issues. I also made a video about this topic, available here: https://youtu.be/d9yb9ifurbg.
00:12 Spam
Issues
Potential Mitigations & Outstanding Issues
01:58 Privacy
Issues
  • Nano has no privacy. It is pseudonymous (like Bitcoin), not anonymous.
Potential Mitigations & Outstanding Issues & Outstanding Issues*
  • Second layer solutions like mixers can help, but some argue that isn't enough privacy.
  • The current protocol design + the computational overhead of privacy does not allow Nano to implement first layer privacy without compromising it's other features (fast, feeless, and scalable transactions).
02:56 Decentralization
Issues
  • Nano is currently not as decentralized as it could be. ~25% of the voting weight is held by Binance.
  • Users must choose representatives, and users don't always choose the best ones (or never choose).
Potential Mitigations & Outstanding Issues
  • Currently 4 unrelated parties (who all have a verifiable interest in keeping the network running) would have to work together to attack the network
  • Unlike Bitcoin, there is no mining or fees in Nano. This means that there is not a strong incentive for emergent centralization from profit maximization and economies of scale. We've seen this firsthand, as Nano's decentralization has increased over time.
  • Nano representative percentages are not that far off from Bitcoin mining pool percentages.
  • In Nano, voting weight can be remotely re-delegated to anyone at any time. This differs from Bitcoin, where consensus is controlled by miners and requires significant hardware investment.
  • The cost of a 51% attack scales with the market cap of Nano.
06:49 Marketing & adoption
Issues
  • The best technology doesn't always win. If no one knows about or uses Nano, it will die.
Potential Mitigations & Outstanding Issues
  • I would argue that the best technology typically does win, but it needs to be best in every way (price, speed, accessbility, etc). Nano is currently in a good place if you agree with that argument.
  • Bitcoin started small, and didn't spend money on marketing. It takes time to build a community.
  • The developers have said they will market more once the protocol is where they want it to be (v20 or v21?).
  • Community marketing initiatives have started to form organically (e.g. Twitter campaigns, YouTube ads, etc).
  • Marketing and adoption is a very difficult problem to solve, especially when you don't have first mover advantage or consistent cashflow.
08:07 Small developer fund
Issues
  • The developer fund only has 3 million NANO left (~$4MM), what happens after that?
Potential Mitigations & Outstanding Issues
  • The goal for Nano is to be an Internet RFC like TCP/IP or SMTP - development naturally slows down when the protocol is in a good place.
  • Nano development is completely open source, so anyone can participate. Multiple developers are now familiar with the Nano protocol.
  • Businesses and whales that benefit from Nano (exchanges, remittances, merchant services, etc) are incentivized to keep the protocol developed and running.
  • The developer fund was only ~5% of the supply - compare that to some of the other major cryptocurrencies.
10:08 Node incentives
Issues
  • There are no transaction fees, why would people run nodes to keep the network running?
Potential Mitigations & Outstanding Issues
  • The cost of consensus is so low in Nano that the benefits of the network itself are the incentive: decentralized money with 0 transaction fees that can be sent anywhere in the world nearly instantly. Similar to TCP/IP, email servers, and http servers. Just like Bitcoin full nodes.
  • Paying $50-$100 a month for a high-end node is a lot cheaper for merchants than paying 1-3% in total sales.
  • Businesses and whales that benefit from Nano (exchanges, remittances, merchant services, etc) are incentivized to keep the protocol developed and running.
11:58 No smart contracts
Issues
  • Nano doesn't support smart contracts.
Potential Mitigations & Outstanding Issues
  • Nano's sole goal is to be the most efficient peer-to-peer value transfer protocol possible. Adding smart contracts makes keeping Nano feeless, fast, and decentralized much more difficult.
  • Other solutions (e.g. Ethereum) exist for creating and enforcing smart contracts.
  • Code can still interact with Nano, but not on the first layer in a decentralized matter.
  • Real world smart contract adoption and usage is pretty limited at the moment, but that might not always be the case.
13:20 Price stability
Issues
  • Why would anyone accept or spend Nano if the price fluctuates so much?
  • Why wouldn't people just use a stablecoin version of Nano for sending and receiving money?
Potential Mitigations & Outstanding Issues
  • With good fiat gateways (stable, low fees, etc), you can always buy back the fiat equivalent of what you've spent.
  • The hope is that with enough adoption, people and businesses will eventually skip the fiat conversion and use Nano directly.
  • Because Nano is so fast, volatility is less of an issue. Transactions are confirmed in <10 seconds, and prices change less in that timeframe (vs 10 minutes to hours for Bitcoin).
  • Stablecoins reintroduce trust. Stable against what? Who controls the supply, and how do you get people to adopt them? What happens if the assets they're stable against fail? Nano is pure supply and demand.
  • With worldwide adoption, the market capitalization of Nano would be in the trillions. If that happens, even millions of dollars won't move the price significantly.
15:06 Deflation
Issues
  • Nano's current supply == max supply. Why would people spend Nano today if it could be worth more tomorrow?
  • What happens to principal representatives and voting weight as private keys are lost? How do you know keys are lost?
Potential Mitigations & Outstanding Issues
  • Nano is extremely divisible. 1 NANO is 1030 raw. Since there are no transaction fees, smaller and smaller amounts of Nano could be used to transact, even if the market cap reaches trillions.
  • People will always buy things they need (food, housing, etc).
  • I'm not sure what the plan is to adjust for lost keys. Probably requires more discussion.
Long-term Scalability
Issue
  • Current node software and hardware cannot handle thousands of TPS (low-end nodes fall behind at even 50 TPS).
  • The more representatives that exist, the more vote traffic is required (network bandwidth).
  • Low-end nodes currently slow down the network significantly. Principal representatives waste their resources constantly bootstrapping these weak nodes during network saturation.
Potential Mitigations & Outstanding Issues
  • Even as is, Nano can comfortably handle 50 TPS average - which is roughly the amount of transactions per day PayPal was doing in 2011 with nearly 100 million users.
  • Network bandwidth increases 50% a year.
  • There are some discussions of prioritizing bootstrapping by vote weight to limit the impact of weak nodes.
  • Since Nano uses an account balance system, pruning could drastically reduce storage requirements. You only need current state to keep the network running, not the full transaction history.
  • In the future, vote stapling could drastically reduce bandwidth usage by collecting all representative signatures up front and then only sharing that single aggregate signature.
  • Nano has no artificial protocol-based limits (e.g. block sizes or block times). It scales with hardware.
Obviously there is still a lot of work to be done in some areas, but overall I think Nano is a good place. For people that aren't Nano fans, what are your biggest concerns?
submitted by Qwahzi to CryptoCurrency [link] [comments]

White Paper, Miner, Pizza … | "Old Objects" in the Cryptocurrency Museum

White Paper, Miner, Pizza … |
https://preview.redd.it/giu1ssilga151.jpg?width=900&format=pjpg&auto=webp&s=41510785ccdc0d99544ec74229f62427d1c0ce3e
Museum has played the role of a time recorder. Talking about bitcoin, more than ten years has passed since the creation of it. Although it is uncomparable to the stock market with a hundred years of history, during the ten years, in the different stages of the development of bitcoin and blockchain have continuously poured in geeks, miners, speculators, newbies, leaving keywords such as sudden rich, myth, scam, belief, revolution, etc.
There are also many “old objects” with stories in the “Museum” of the cryptocurrency realm. On Museum Day, let ’s review the stories brought by these “old objects”.
The First Digital Currency White Paper — Bitcoin White Paper
On Oct. 31, 2008, Satoshi Nakamoto released the Bitcoin white paper — A Peer-to-Peer Electronic Cash System in the cryptographic mail group where he belongs, and Bitcoin was born since then.
A white paper is a document that explains the purpose and technology used in cryptocurrency. Usually a cryptocurrency uses the white paper to help people understand what it provides, and it is also an important information channel for investors to understand a project. Therefore, the level of the white paper affects people’s confidence towards the coin.
In a word, in the cryptocurrency and blockchain industry, the value of a white paper is equivalent to that of a standard financing speech. The white paper plays a vital role in this emerging market.
The First Public Bitcoin-Physical Transaction — Pizza
Since Satoshi Nakamoto mined the Bitcoin genesis block on January 3, 2009, Bitcoin has only been spread among the small crowd and has not realized its value.
Not until May 22, 2010, Bitcoin enthusiast “Laszlo Hanyecz” bought a pizza coupon worth $25 with 10,000 bitcoins. This is the first public bitcoin-physical transaction. Bitcoin has its price with 0.3 cents per bitcoin.


This day has also become the famous “Bitcoin Pizza Day” in Bitcoin history. Bitcoin as the imagination of the financial system has more practical significance. The tenth anniversary is coming. How will you commemorate it? Will you buy a pizza?
The First Digital Asset Exchange — Bitcoinmarket.com
After the birth of Bitcoin, in addition to mining, the only way to get Bitcoin in the early days was to conduct transactions on forums or IRC (commonly known as Internet Relay Chat). However, this method involves both long transaction time and great security risk.
In March 2010, the first digital asset exchange — Bitcoinmarket.com launched. However, due to lack of liquidity and transaction depth, it disappeared soon after its establishment, but Bitcoinmarket.com opened the era of the operation of the cryptocurrency realm exchange 1.0.


On June 9, 2011, China’s first Bitcoin exchange — Bitcoin China (BTCChina) launched. Its founder, Yang Linke, translated Bitcoin into Chinese “比特币” for the first time. In 2013, China’s bitcoin trading entered the golden age, and exchanges sprung up. China monopolized more than 90% of the world’s bitcoin transactions. Now, if the top three exchanges Binance, Huobi Global, OKEx are the Exchange 2.0, then the index exchange represented by 58COIN called the 3.0 version, leading the trend.
The First Generation of High-Performance Miner — ASIC Miner
When Satoshi Nakamoto created Bitcoin, the only way to get it is to use computers (including home computers) to mine, mainly relying on the CPU to calculate. However, as the value of digital currencies such as Bitcoin has become higher and higher, mining has become an industry with the competition is getting fiercer, accompanied by increasing difficulty of mining. Therefore, hardware performance competition starts.
In July 2012, the genius Jiang Xinyu (Internet nickname is “Friedcat”) from the junior class of the University of Science and Technology declared at the forum that he could make ASIC miners (chips). As far as mining computing power is concerned, ASICs can be tens of thousands or more higher than the same-generation CPUs and GPUs.
At the beginning of 2013, Zhang Nanqian (Pumpkin Zhang), a suspended doctoral student from the Beijing University of Aeronautics and Astronautics, developed the ASIC miner and named it “Avalon”.


In June 2013, the Friedcat’s miner USB was finally released, and it maintained 20% of the computing power of the entire network.
At the end of 2013, Wu Jihan, used the tens of millions yuan earned from Friedcat through investment, worked together with Jenke group, to develop the Antminer S1. Since then, the miner manufacturer Bitmain began to enter the stage of history.
It is no exaggeration to say that Friedcat and Zhang Nangeng have opened the domestic “mining” era.
The Birthplace of China’s Bitcoin — Garage Coffee
It is not only the “old objects” that record history, but also a place that everyone in the cryptocurrency realm aspires to.
Guo Hongcai once said, “Without no The Garage Café, there will be no cryptocurrency realm today. Since it is a very mysterious place that all waves of people from the café joint together to create today’s digital asset industry.

▲ In March 2013, American student Jake Smith successfully purchased a cup of coffee at The Garage Café with 0.131 bitcoins. This move attracted the attention of CCTV, and it conducted an interview.
Indeed, The Garage Café is the world ’s first entrepreneurial-themed coffee shop. It has been legendary since its establishment in 2011. The Garage Cafét is not only the core coordinate on China’s Bitcoin map, but also the birthplace of the Chinese cryptocurrency circle, where digital asset realm tycoons including Guo Hongcai, Zhao Dong, Li Xiaolai, Li Lin have made their ways.
The development of digital currency is only 11 years old. Through these “old objects”, we review the various stories of this wave of technology together, hoping to help you understand the development process of the digital currency field. Meanwhile, I also remind all practitioners to use history as a mirror and forge ahead.
Website: https://www.58ex.com/
Twitter: https://twitter.com/58_coin
Facebook: https://www.facebook.com/coin.58COIN
Telegram: https://t.me/official58
Medium: https://medium.com/@58coin_blog/
submitted by 58CoinExchange to u/58CoinExchange [link] [comments]

What are Nano's biggest issues? Let's talk about it!

Let's talk about some of Nano's biggest issues. I also made a video about this topic, available here: https://youtu.be/d9yb9ifurbg.
00:12 Spam
Issues
Potential Mitigations & Outstanding Issues
01:58 Privacy
Issues
  • Nano has no privacy. It is pseudonymous (like Bitcoin), not anonymous.
Potential Mitigations & Outstanding Issues & Outstanding Issues*
  • Second layer solutions like mixers can help, but some argue that isn't enough privacy.
  • The current protocol design + the computational overhead of privacy does not allow Nano to implement first layer privacy without compromising it's other features (fast, feeless, and scalable transactions).
02:56 Decentralization
Issues
  • Nano is currently not as decentralized as it could be. ~25% of the voting weight is held by Binance.
  • Users must choose representatives, and users don't always choose the best ones (or never choose).
Potential Mitigations & Outstanding Issues
  • Currently 4 unrelated parties (who all have a verifiable interest in keeping the network running) would have to work together to attack the network
  • Unlike Bitcoin, there is no mining or fees in Nano. This means that there is not a strong incentive for emergent centralization from profit maximization and economies of scale. We've seen this firsthand, as Nano's decentralization has increased over time.
  • Nano representative percentages are not that far off from Bitcoin mining pool percentages.
  • In Nano, voting weight can be remotely re-delegated to anyone at any time. This differs from Bitcoin, where consensus is controlled by miners and requires significant hardware investment.
  • The cost of a 51% attack scales with the market cap of Nano.
06:49 Marketing & adoption
Issues
  • The best technology doesn't always win. If no one knows about or uses Nano, it will die.
Potential Mitigations & Outstanding Issues
  • I would argue that the best technology typically does win, but it needs to be best in every way (price, speed, accessbility, etc). Nano is currently in a good place if you agree with that argument.
  • Bitcoin started small, and didn't spend money on marketing. It takes time to build a community.
  • The developers have said they will market more once the protocol is where they want it to be (v20 or v21?).
  • Community marketing initiatives have started to form organically (e.g. Twitter campaigns, YouTube ads, etc).
  • Marketing and adoption is a very difficult problem to solve, especially when you don't have first mover advantage or consistent cashflow.
08:07 Small developer fund
Issues
  • The developer fund only has 3 million NANO left (~$4MM), what happens after that?
Potential Mitigations & Outstanding Issues
  • The goal for Nano is to be an Internet RFC like TCP/IP or SMTP - development naturally slows down when the protocol is in a good place.
  • Nano development is completely open source, so anyone can participate. Multiple developers are now familiar with the Nano protocol.
  • Businesses and whales that benefit from Nano (exchanges, remittances, merchant services, etc) are incentivized to keep the protocol developed and running.
  • The developer fund was only ~5% of the supply - compare that to some of the other major cryptocurrencies.
10:08 Node incentives
Issues
  • There are no transaction fees, why would people run nodes to keep the network running?
Potential Mitigations & Outstanding Issues
  • The cost of consensus is so low in Nano that the benefits of the network itself are the incentive: decentralized money with 0 transaction fees that can be sent anywhere in the world nearly instantly.
  • Paying $50-$100 a month for a high-end node is a lot cheaper for merchants than paying 1-3% in total sales.
  • Businesses and whales that benefit from Nano (exchanges, remittances, merchant services, etc) are incentivized to keep the protocol developed and running.
11:58 No smart contracts
Issues
  • Nano doesn't support smart contracts.
Potential Mitigations & Outstanding Issues
  • Nano's sole goal is to be the most efficient peer-to-peer value transfer protocol possible. Adding smart contracts makes keeping Nano feeless, fast, and decentralized much more difficult.
  • Other solutions (e.g. Ethereum) exist for creating and enforcing smart contracts.
  • Code can still interact with Nano, but not on the first layer in a decentralized matter.
  • Real world smart contract adoption and usage is pretty limited at the moment, but that might not always be the case.
13:20 Price stability
Issues
  • Why would anyone accept or spend Nano if the price fluctuates so much?
  • Why wouldn't people just use a stablecoin version of Nano for sending and receiving money?
Potential Mitigations & Outstanding Issues
  • With good fiat gateways (stable, low fees, etc), you can always buy back the fiat equivalent of what you've spent.
  • The hope is that with enough adoption, people and businesses will eventually skip the fiat conversion and use Nano directly.
  • Because Nano is so fast, volatility is less of an issue. Transactions are confirmed in <10 seconds, and prices change less in that timeframe (vs 10 minutes to hours for Bitcoin).
  • Stablecoins reintroduce trust. Stable against what? Who controls the supply, and how do you get people to adopt them? What happens if the assets they're stable against fail? Nano is pure supply and demand.
  • With worldwide adoption, the market capitalization of Nano would be in the trillions. If that happens, even millions of dollars won't move the price significantly.
15:06 Deflation
Issues
  • Nano's current supply == max supply. Why would people spend Nano today if it could be worth more tomorrow?
  • What happens to principal representatives and voting weight as private keys are lost? How do you know keys are lost?
Potential Mitigations & Outstanding Issues
  • Nano is extremely divisible. 1 NANO is 1030 raw. Since there are no transaction fees, smaller and smaller amounts of Nano could be used to transact, even if the market cap reaches trillions.
  • People will always buy things they need (food, housing, etc).
  • I'm not sure what the plan is to adjust for lost keys. Probably requires more discussion.
Long-term Scalability
Issue
  • Current node software and hardware cannot handle thousands of TPS (low-end nodes fall behind at even 50 TPS).
  • The more representatives that exist, the more vote traffic is required (network bandwidth).
  • Low-end nodes currently slow down the network significantly. Principal representatives waste their resources constantly bootstrapping these weak nodes during network saturation.
Potential Mitigations & Outstanding Issues
  • Even as is, Nano can comfortably handle 50 TPS average - which is roughly the amount of transactions per day PayPal was doing in 2011 with nearly 100 million users.
  • Network bandwidth increases 50% a year.
  • There are some discussions of prioritizing bootstrapping by vote weight to limit the impact of weak nodes.
  • Since Nano uses an account balance system, pruning could drastically reduce storage requirements. You only need current state to keep the network running, not the full transaction history.
  • In the future, vote stapling could drastically reduce bandwidth usage by collecting all representative signatures up front and then only sharing that single aggregate signature.
  • Nano has no artificial protocol-based limits (e.g. block sizes or block times). It scales with hardware.
submitted by Qwahzi to nanocurrency [link] [comments]

The world economy is on the verge of crisis again, cryptocurrencies will be strong

Vulnerability refers to the property that things are vulnerable to damage when faced with fluctuations.
-Nassim Nicholas Taleb
In the face of economic fluctuations, it is disadvantageous to hold such a negative view. Every capital market has its own life cycle, which inevitably goes through a process from growth, to peak, and then to recession. Now is no exception. As we emerge from the longest bull market in history, we suddenly find ourselves in a highly vulnerable global economy facing the panicked and perplexed planet unprepared. However, the turmoil has just begun.
Newton's first law, also known as "the law of inertia", means that any object must maintain a constant linear motion or standstill until an external force forces it to change its state of motion. Although this analogy does not perfectly correspond to the capital market (because the market is always changing and developing in different directions), at least one thing is certain that under the action of the market mechanism, the market cycle always appears Trend from peak to valley.
The music box winds up, and the performance of the song sounds, and then it stops after a while. When this happens, the market structure collapses, eventually leading to huge chaos, and then falling into silence. Once external forces force the entire economy into trouble, people will realize the long-standing hidden structural defects in the economy.
Now, the world economy is on the verge of crisis again. All human beings have to face a sudden outbreak of a global epidemic and the resulting shocks in supply and demand in the market. The economies of some countries have stalled. Ironically, the effects of inertia may be prevalent in market fluctuations.
While witnessing the development of the global economy, we still find two simultaneous macro trends:
--1-- USD strong We believe that the strong US dollar is driven by three factors: Investors turn to safe assets: Despite the Fed ’s interest rate cuts and monetary stimulus policies, the market ’s increasing demand for the US dollar has pushed up the US dollar index and hit a new high in 18 years.
US Dollar Financing Issues: Cross-currency basis swaps measure that investors are more inclined to hold the US dollar than the euro or the yen.
On March 17, the euro-dollar basis swap swap premium expanded from -60 basis points to -120 basis points, the highest level since 2011. As of press time, the Euro-US dollar basis swap has rapidly dropped to about -27 basis points, while the US dollar-Japanese yen basis swap has expanded to -70 basis points. Negative basis points indicate greater pressure on the dollar and higher hedging costs for European and Japanese investors.
The reality is that U.S. banks, which are the main source of funding for the U.S. dollar, are storing large amounts of cash instead of actively issuing short-term U.S. dollar loans to foreign banks. Due to recent pressure from the balance sheet, more and more U.S. banks are beginning to reduce credit lines to retain cash. In addition, many foreign banks that lack direct access to the US dollar market can only rely on central bank liquidity swaps for financing. This week, the Fed and several other central banks opened new liquidity swap tools, providing USD 30 billion to USD 60 billion of liquidity, respectively, to ease pressure on USD financing.
Central banks in emerging market countries are taking urgent steps and lowering their benchmark interest rates: Emerging market investors are very worried about the stability of their currencies and are pouring into the dollar market. According to Bloomberg, all major emerging market currencies weakened against the US dollar on January 20, just as the new crown virus began to spread in Asia.
——2—— Treasury liquidity tightening Abnormally performing credit markets: In general, price fluctuations will prompt investors to switch from risky assets (such as stocks) to safe-haven assets (such as bonds). This was indeed the case when the new coronavirus was causing panic. However, the current despair of liquidity (especially cash) by market investors has led to a large-scale sell-off in the global bond market, falling bond prices and rising interest rates.
Repurchase market: The Federal Reserve's rescue measures have not brought the expected results. In the past week, the Federal Reserve announced three repurchases and other measures to release liquidity, hoping to ease the current state of the US Treasury market and reduce the inventory of primary dealers. However, market demand for government bonds remains sluggish.
Let's turn our eyes from the home of the macro economy to the cryptocurrency market. Although they are not necessarily related, we find that the two are closely related.
In the face of volatility, it is particularly important to develop a price action strategy. The CBOE-VIX index, an indicator that predicts the trend of the S & P 500 in the next 30 days, has surged to its highest level since the last global financial crisis. At the same time, we also saw that the 90-day implied volatility of Bitcoin options rose to 6.8% (annualized 130%), which is about 5.9% (annualized 113%) this weekend. As the "Black Thursday" on March 12th, BTC was down 40% and ETH was down 50%, some leveraged positions were forced to close. According to reports, BitMEX alone closed USD 700 million worth of long and short positions. At the same time, the sell-off of ETH dropped the value of the DeFi ecosystem by 40%. The total amount of collateral liquidation of Compound, dYdX and Maker and other lending platforms reached US $ 10 million. But in this turbulent market, not all assets perform so badly.
Although the price of BTC, like the stock market at the beginning, plummeted, falling by 60% from the high price in mid-February, it rebounded by about 50% from the price low on March 12. Over the past period, we have found a large amount of funds flowing from altcoins to BTC. With the spot premium (the spot price is higher than the futures price), the demand for bitcoin lending has increased. The effective fund interest rate also gradually returned to normal as the curve was inverted. In contrast, when futures are at a premium (the futures price is higher than the spot price), there is almost no demand for BTC's lending transactions. At present, the BTC funding rate on various lending platforms has increased from 3-5% to 8%, and the ETH funding rate has increased from 2-4% to 6%.
——3—— Floating profit stablecoin market Since February 14, the entire cryptocurrency market has experienced a large-scale sell-off, with a market value of $ 45 billion evaporated. At the same time, the market value of USDT has risen to nearly $ 5 billion. USDT has emerged from this market volatility and has become a safe-haven asset. This week, the premium rate of USDT prices in China and South Korea is as high as 7%, which is caused by the demand of payment service providers and arbitrage traders. The current over-the-counter USDT supply exceeds supply. At the same time, the market value of USDC climbed to US $ 630 million, a record high. The market value of BUSD is exceeding the US $ 150 million mark, mainly due to the surge in demand for Binance's borrowing and margin trading.
——4—— Near-term outlook We pay close attention to the changing macroeconomic trends and the successive monetary and fiscal policies implemented by governments around the world. Although we cannot predict the specific trend of the market, we still believe that cryptocurrency as an asset class will be strong. In a nutshell, we think:
● Due to the recent sell-off in the market, the value of positions has shrunk sharply, making the distribution of positions in the market clearer.
● With the exit of market makers, the spread between major exchanges has brought more market arbitrage opportunities for retail traders. In particular, the derivatives market (futures and perpetual swaps) has seen a significant discount compared to the spot market, which has pushed up BTC's lending rate.
● By hedging the spot and long futures, market participants can carry out arbitrage trading, which is completely contrary to the market situation we saw last year (the futures price is significantly higher than the spot).
● Over the past six months, trading activities in the options market have grown rapidly. We expect that trading activities in the options market will continue to grow.
● At present, on our platform, institutional clients such as hedge funds, arbitrage traders, crypto companies, etc. have all bought a lot of BTC and USDT.
Market volatility is part of investment. We believe that after a period of time, the economy will re-enter the upward trajectory, please let us work together for it.
submitted by FmzQuant to u/FmzQuant [link] [comments]

My attempt at a 100x portfolio for 2018

As you might remember, last month, I took all Top100 coins and categorized them into their 12 markets. https://www.reddit.com/CryptoCurrency/comments/8a8lnwhich_are_your_top_5_favourite_coins_out_of_the/
This was all done with the goal in mind to find a portfolio that can return 100x in 2018.
The assumption for this portfolio is that Bitcoin will go up by 4x ($32,000) until the end of 2018 amassing a total market cap of 3$ trillion as a conservative estimate in comparison to our 6 last bull runs, which were
Number Multiple Period Year Price Correction Correction period
1 9x 5 days 2010 $0.008-$0.08 0% -
2 10x 5 months 2010 $0.08-$1 -30% 2 months
3 40x 2 months 2011 $0.07-$30 -90% 5 months
4 14x 3 months 2013 $15-$213 -65% 3 months
5 12x 2 months 2013 $139-$1132 -85% 13 months
6 20x 7 months 2017 $1000-$19,800 -70% 3 months
7 17x 4 months 2018 $5,800-100,000? -70% 5 months
Source: www.99bitcoins.com/price-chart-history/
As you can see, a 17x bull run on Bitcoin happens on average around once a year. Many altcoins went 100x in the last bull run, since altcoin always grow much stronger than the behemoth Bitcoin.
Building a strong portfolio always boils down to the following 3 factors:
  1. Pick the best assets. In order to do that, I analyzed all top 100 cryptocurrencies, and picked the best ones within each market. Then, I looked for other coins that are within the Top1000 and that are actually better than the leaders in each market from the top 100, due to their short time in the market and being underdogs
  2. Diversify The whole portfolio is designed to catch 2-3 really good coins that return 300x-1000x. The rest of the coins will probably return 20x, 50x or some even only 2x. That's why you need at least 10 coins to make sure you to catch your top performers. 5 coins would be too few, since you might only catch 1 top performer if at all.
  3. Centralise You need to diversify, but also don't diversify too much, because then you are spread too thin. That's why 20 coins would be too many, because even if if you catch 3 top performers, you would only have 15% of your money in it.
For these 3 reasons, the number of coins is set at 14 and is divided into
  1. 26% High risk high return coins
  2. 50% Medium risk medium return coins
  3. 24% Low risk low return coins

Portfolio

All coins are listed on Binance or KuCoin and their weights are listed on the second tab of my excel spread sheet: https://docs.google.com/spreadsheets/d/1s8PHcNvvjuy848q18py_CGcu8elRGQAUIf86EYh4QZo/edit#gid=1597706888
High risk high return 26%:
The point of a high risk high return portfolio is to catch one 1000x-coin among them. These 3 coins give a 1000x return when going to a $10B market cap for BNTY and Elix. These are the best <$10M from my research. Other contenders were Xspec, Sumo, Snovio, DeepOnion, Masari.
  1. 10% BNTY is a platform where you can earn money through finding bugs, a bug bounty. BNTY soon wants to expand into “bounties” for gigs, to become the new fiverfreelancer.com.
  2. 10% Elix is a lending platform with a unjustified tiny market cap in comparison to its competitors LEND, SALT.
  3. 6% Havven is a stable coin. There are already 3 other stable coins with higher market caps, Maker, DGD, Bitshares, however, Havven is the 4th one with a 30x smaller market cap. Investing in a stable coins isn't investing in the coin itself obviously, since it is supposed to stay stable, but in the company that launched the stable coin.
Medium risk medium return 49%:
These coins are the backbone of the portfolio. They are all legit projects with a product out already, a strong team, strong community and a potent market. All of these coins will probably make a 20x return and some a 100x-200x return, possibly PRL, GAS and ENJ, that’s why they have more weight than the others.
  1. 10% PRL is in the decentralized data storage market as Siacoin, Gbyte, Maidsafecoin, Storj, only that it has a 5x smaller market cap and that it actually makes the storage useful by allowing people who store other people’s files to renounce ads and instead make their money through storing files.
  2. 13% It has been rumoured that GAS market cap will surpass NEO’s. For that reason, investing in GAS it is the same as investing in NEO, LISK, ARDR, etc. only that is has a 20x smaller market cap. If GAS ever only to 50% of Neo's market cap, it will have returned 7,5x more profit than NEO.
  3. 8% ENJ is the investment in the gaming market. Enjin has a platform with already 20 million players and has is already being used as a currency in Minecraft since 1 month ago.
  4. 6% Enigma is privacy for smart contracts on Ethereum
  5. 5% Req is in the currency and liquidity exchange market just as QASH, Loopring, Cryptonex, Bitshares, Kyber network, Bancor, ZRX, Achain, only that Req has probably the strongest community of all, best partnerships and is also more feature rich
  6. 6% Steem is a social network, very similar to reddit, only that you can upvote with tokens/money. Steem has already an Alexa rank of 1,000. What's more, Steem also has a stablecoin, Steem Dollar, which adds additional potential to this investment
Low risk low return 25%:
These are the safest bets with a working product, a large community and among the most potential within the Top100. Out of these, BNB is probably the safest bet of all, because it is directly tied to Binance, the exchange that has made it as the undisputed number 1 exchange due to excellent professionalism, transparency and intelligent leadership.
  1. 8% Vechain is a supply chain platform and the coin with the most and strongest partnerships closed within the cryptosphere.
  2. 4% Nano is probably the fastest and most lightweight cryptocurrency right now with instant transactions, zero fees and one millionth the energy use of Bitcoin due to it’s 3rd generation blockchain, the block lattice.
  3. 8% IOTA is similar to Nano with instant transactions, zero fees, very low energy usage thanks to its 3rd generation blockchain, the tangle. While it has bigger potential than Nano, it also still has some bugs and security issues to work out.
  4. 5% BNB, is probably the safest of all bets. It is among the only 5 cryptocurrencies that have turned a 10%+ profit this year. https://www.cointimemachine.com/top-100-best-cryptocurrency-list-2018/
Here are the coins categorized into their respective markets.
Currency 12%
  1. 4% Nano
  2. 8% IOTA
Platform 26% =38%
  1. 8% Vechain
  2. 5% Req
  3. 13% GAS
Ecosystem 10% = 48%
  1. 10% ELIX
Misc 10% = 58%
  1. 10% BNTY
Privacy 6% = 64%
  1. 6% Enigma
Data Storage 11% = 75%
  1. 11% PRL
Gaming 8% = 83%
  1. 8% ENJ
Fee token 5% = 88%
  1. 5% BNB
Social Networking 6% =94%
  1. 6% Steem
Stablecoin 6% = 100%
  1. 6% Havven
The only market not served is Cloud computing. Apart from that all other 11 markets are served, yielding a balanced portfolio with the best coin(s) of each market.
I published the portfolio on cryptocompare at an investment of $1,000 for comparison: https://www.cryptocompare.com/portfolio-public/?id=385438
submitted by galan77 to CryptoCurrency [link] [comments]

[EU] [FIAT GATEWAY] Bitvavo.com is a new fiat ramp for NANO!

Hello dear NANO'ers,

I come with great news. Bitvavo - a DUTCH exchange, secretly has fully implemented NANO on their exchange! This means you can buy AND sell NANO for Euros! Bitvavo is a DUTCH exchange, under Dutch/European law, having its HQ within the Netherlands. This is AMAZING. I made a post about Bitvavo adding nanos last year, back then you couldnt send/withdraw NANO (so it was fully artificial), but now its fully operational!

Why is this a big deal? Its an European exchange, falling under European laws (Dutch to be precise). Since i live in the Netherlands, this to me is just amazing. The dutch are a meticulously kind of folk. Dutch laws are quite strong and complicated and regulations are strong here. To have a working fiat ramp exchange that hasnt been shutdown by authorities, means it has a certain degree of Trustworthiness (at least for me and Dutch laws, which are stricter then European laws mostly).

Is it any good? Well, i first deposited euro's on the website (which you cant hold for longer then 5 days, since it isnt a bank and certain laws are preventing that), which went 'pretty' fast. I bought nano's with it (which was instant), and then i withdrew NANO's from it...which went through in SECONDS. Yes. Seconds. I put the order in, went to Binance to check things out and literally a few seconds later i heard the ping from CANOE. I couldnt believe it lol. I actually was in awe and suddenly became extremely enthusiastic, and immediately bought more lol.

What about fees? They take maketrader fees of 0.25%. In my eyes, that isnt much. For withdrawal they also have fee, but its around 0.00025 nano if im right. Its crazy low. And crazy fast.

Are there any negative parts? Well, its a dutch company but it isnt coinbase. If the whole world flocks towards it, i can see the website going down because the server can't hold that weight. This is theoretically, but those who experienced the 2017 run know that a lot of exchanges either went down (for a few hours/days) or stopped accepting new registrations because their servers couldnt handle it. I feel the same is with Bitvavo, its a small dutch exchange, not a big one.

Other negative parts? I don't think they have much nano lol. After my first purchase i was SO impressed with the speed and low cost of it, i bought more. The second time i bought, i received a message that this was going to be processed manually. For the long run i cant see this being a problem, it just means they have to buy more NANO, which will only help NANO :)

Now besides those, you do need to do a KYC, and i havent read in about any international KYC. The KYC is necessary for you to trade on the exchange. For me, i had to link my bank account to my account on Bitvavo (the same way you do it with Paypal). You can only send/receive money from/to your (linked) bank account to Bitvavo (if through IDEAL, not sure about SEPA etc). I find this acceptable to be honest for a EUROPEAN/trustworthy fiat gateway.

Payment methods (including fees):

It has been a while since i sold crypto for Euro's on the site, but it worked pretty fast. The next day, the money was sitting in my bank account :) it wasnt much though (around 100 euros), but it passed the test for me back then. Unless we go in to a massive bullrun, i prob wont be selling my NANO for fiat anytime soon anyways. I am more searching for ways to pay internet services for NANO :) Hopefully one day we can pay for everyday things with NANO, like groceries or liqueur etc.

Bitvavo has many many other coins too (besides btc,eth, xrp) like ADA, ICX, IOTA, Vechain, NEO etc. So if you want to trade your NANO with other crypto's, it is another way besides Binance (though i would still use binance for it).

THis is a huge step. For very low cost, and extremely fast speed, we (Europeans in general) have an amazing gateway towards NANO. Together with Coingate integration of NANO, and NANO amazing ease of use - i cant see any other way besides NANO becoming a smashing succes.

The only weird thing about this is Bitvavo own marketing. They did this all in silent, for reasons unknown to me since this is HUGE news for me (and a lot of Dutch/European citizens that have access to IDEAL).

Now, i have to SHILL NANO a bit more here, because i am really getting hyped once again. I feel even more positive about NANO then back in dec 2017 to be honest.

Remember guys, NANO is just at #48 in CMC. 48! While its utility is much better then 99% of ALL crypto! Infact, NANO is the ONLY usuable crypto RIGHT NOW besides maybe Eth for Dapps. Look at the marketcap of LTC, which in EVERY aspect is a worse coin then NANO. Then calculate how much a single NANO would be worth if it would have LTC marketcap... NANO has STILL SO MUCH to grow, its crazy. Its like getting Bitcoin back in 2011/2013.

Pay for your products online FASTER and more reliable AND cheaper then Paypal (conversation rate), credit card (% rate per month/year) or bank. Since V18 has come out i have been EXTREMELY impressed by NANO. So much that i have doubled my (relatively small) stack and i have (once again) started to accumulate slowly. News like this (Bitvavo) just makes me more hyped for NANO. Together with a website where i can actually buy their services with NANO - and i am planning to use it more, i cant be more positive. NANO may have had a hard time in 2018 price wise, but DAMN the team has done an amazing job with its tech throughout the bear market.

Mad props to you Colin AND your amazing team. Props to Coingate for having an amazing service too! Once NANO has been proven to scale to 1k+ (with 7K being a nicely goal) + an automatically representative node assignment through wallets (to make NANO more decentralized), i cant see nano NOT becoming a top 10 - or even a top 5 coin. As a payment coin, NANO truly knows no equal!

EDIT: a MAJOR edit here, before you guys get TOO excited. PLEASE look in to the exchange pricing too! Bitvavo might be selling (or probably IS) NANO for a higher rate then for example Binance (this is apart from maketaker fee and withdrawal fee!). It isnt the same price as you pay on Binance, with the conversion rate. So for the same EUUSD, you will get less NANO compared to Binance (if you could pay directly for it). So keep that in mind, u/dotcoml said it actually was 2%. I personally didnt bother doing the math nor do i mind a 2% fee to exchange my fiat for NANO (it still is better then credit card, and for its speed/usability, i dont mind paying 2% more compared to FIAT either), but it still is 2%. Keep this in mind!

EDIT2: other users are reporting Bitvavo actually having LOWER prices then Binance :) please check it out for yourself!
submitted by Redac07 to nanocurrency [link] [comments]

Near $1B are currently on the move from a Silkroad related wallet

Near $1B are currently on the move from a Silkroad related wallet
It seems that the owner of a huge #SilkRoad related wallet is moving funds actively since 3 days, dividing it in chunks of 100 coins by subwallets.
The original wallet owned 111,114.62 $BTC / $BCH , which is currently valuated ~ $844M (without taking in account other #Bitcoin forks).
Last movements on these subwallets are 4 years and 5 months old (March 9th, 2014).
The chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.
#Bitcoin: https://www.blocktrail.com/BTC/address/1KyJr2L6CN5XhDfv9Sb5q3kjKwFCrRxTLy/transactions
#BitcoinCash: https://www.blocktrail.com/BCC/address/1KyJr2L6CN5XhDfv9Sb5q3kjKwFCrRxTLy/transactions
Does the owner intend selling it on the market soon?

Update 1
For those who asked, the original wallet (1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a) seems to be related to a SilkRoad address per this post: https://bitcointalk.org/index.php?topic=310600.0.
So it's most probably a wallet owned linked to DPR / SilkRoad. Note that this address is still active with 5 transactions executed in 2018 and 13 in 2017, with really small amount of BTC received/sent.
However, I ran some checks and it does not seem to be linked to the DPR seized coins wallet (1FfmbHfnpaZjKFvyi1okTjJJusN455paPH, there's only a 0.001 BTC link between the 2 addresses), so either the FBI did not sold them yet (last auction was in November 2015) or someone else (linked or not to SilkRoad) has access to it .
Finally, if it's not a SilkRoad related wallet the other options are, by descending probability order:
a) a MtGox cold wallet that has been seized or is still owned by MtGox: in fact the wallet funds moved in March 2014 right after MtGox filed for bankruptcy one month earlier in February 2014; these movements dates are really similar to the 200,000 lost coins "found" by Karpeles which moved March 7th, 2014 (1dda0f8827518ce4d1d824bf7600f75ec7e199774a090a947c58a65ab63552e3), just 2 days before the movements on the wallet we are talking about here.
b) a whale wallet since the major part of the 111,111 coins are coming from a very old deposit of 37,421 coins processed on June 21st, 2011 making this an early adopter's wallet (70d46f768b73e50440e41977eb13ab25826137a8d34486958c7d55c5931c6081)
...
z) CSW's wallet ... https://www.scribd.com/document/372445546/Bitcoin-Lawsuit, credits mishax1

Update 2
This amount of $1B in bitcoins that MtGox is going to return to customers looks pretty familiar, it could match the 111,114-coin wallets we are investigating here: https://btcmanager.com/mt-gox-preparing-return-1b-stolen-bitcoin-affected-users/.
But the methodology of transfer does not match in my opinion, it looks that the owner tries to hide the movements by mixing the coins.

Update 3
Investigating the $1B Bitcoins on the move from a SilkRoad related wallet: https://www.reddit.com/Bitcoin/comments/9bwsaf/investigating_the_1b_bitcoins_on_the_move_from_a/

Update 4
$1B Bitcoins On The Move: Owner Transfers ~$100M to Bitfinex And Binance In 10 Days
https://www.reddit.com/Bitcoin/comments/9ceb5v/1b_bitcoins_on_the_move_owner_transfers_100m_to/

Update 5
MtGox vs SilkRoad origin and September 6th BTC price impact is now discussed here: https://www.reddit.com/btc/comments/9dvaj1b_bitcoins_on_the_move_mtgox_vs_silkroad_origin/

submitted by sick_silk to Bitcoin [link] [comments]

$1B bitcoins on the move: MtGox vs SilkRoad origin and BTC price impact discussed

$1B bitcoins on the move: MtGox vs SilkRoad origin and BTC price impact discussed
Preamble: it seems that my post was censored and removed on bitcoin... from now I will only publish my articles on btc and crosspost it. Freedom and freespeech matter to me.
--

This is the 4th post of a series of articles dedicated to investigate $1B worth of bitcoins (111,114 BTC/BCH/... BXX) that were dormant since 2014 and started moving actively. The BTC coins were originally located at this address (1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a).
  • The facts that part of this funds (>13%) have been transferred in the past month to Bitfinex, Binance and Bitmex exchanges is discussed here.
  • The origin of the bitcoins was originally discussed here.
  • A deep-dive into the wallet activity was discussed here.

Today I am writing a short update to discuss the origin of the funds and some events that could be related both to this wallet and yesterday's price crash.

Wallet's origin

This question has been discussed a lot by the crypto community in the past year.
Here is a summary of the most probable hypothesis for the 1933p wallet's origin:
  1. a SilkRoad user or DPRs wallet per this post: https://bitcointalk.org/index.php?topic=310600.0
  2. a MtGox cold wallet that has been seized or is still owned by MtGox: in fact the wallet funds moved in March 2014 right after MtGox filed for bankruptcy one month earlier in February 2014; these movements dates are really similar to the 200,000 lost coins "found" by Karpeles which moved March 7th, 2014 (1dda0f8827518ce4d1d824bf7600f75ec7e199774a090a947c58a65ab63552e3), just 2 days before the movements on the wallet we are talking about here.
  3. a whale wallet since the major part of the 111,111 coins are coming from a very old deposit of 37,421 coins processed on June 21st, 2011 making this an early adopter's wallet (70d46f768b73e50440e41977eb13ab25826137a8d34486958c7d55c5931c6081)

Wizsec, a prominent Bitcoin security expert, seems to be pretty sure that the wallet belongs to a MtGox hodler and early investor, who is not a DPR or a SilkRoad user, per his Twitter post: https://twitter.com/wizsecurity/status/1037030003068653569
Finally, Wizsec and I agree that this wallet is not CSW`'s wallet despite it is mentioned in several court documents. Wizsec spent a lot of time debunking CSW's ownership claims earlier this year: https://twitter.com/wizsecurity/status/968337084837781504

What do you think about this wallet origin?
`
BTC price crash

Also, I wanted to report some events that could be related to this 1933p wallet activity:

  • $100M USDT were transferred (reported by u/whalecheetah) while the 1933f wallet owner was in the process of transferring approximately the same amount to several exchanges.
(update) Here is a link provided by u/jesquit: https://www.reddit.com/btc/comments/9cj208/bitcoin_surge_expected_as_100m_tether_goes_to
  • 10,000 BTC buy order was filed last night on Bitmex with 8,030 BTC transferred from a Bitfinex user wallet while the 1933p wallet owner transferred approximately the same amount of BTC to Bitfinex since August, 24th.
(update) Here is the actual BTC transaction: https://www.blocktrail.com/BTC/tx/f2465a1225531d33696380f06034499a52d707f85ee6ae1419885980011f6e25 ,
with its Bitfinex inputs:
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (3,000)
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (2,000)
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (2,000)
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (1,029.98)
and output to Bitmex:
3BMEXqGpG4FxBA1KWhRFufXfSTRgzfDBhJ (10,000).

Was this deal prepared or was the buyer a bitcoin angel?

--
In the light of September 6th price crash, do you think the $100M transferred to the exchanges caused it?

https://preview.redd.it/npazsakt1uk11.png?width=2277&format=png&auto=webp&s=1806829761fb30619b4796961b9616875f1ca602
submitted by sick_silk to btc [link] [comments]

r/Bitcoin recap - April 2019

Hi Bitcoiners!
I’m back with the 28th monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
You can see recaps of the previous months on Bitcoinsnippets.com
A recap of Bitcoin in April 2019
Adoption
Development
Security
Mining
Business
Education
Archeology (Financial Incumbents)
Price & Trading
Fun & Other
submitted by SamWouters to Bitcoin [link] [comments]

Secrets of trading Litecoin

Secrets of trading Litecoin

https://preview.redd.it/qle14ejyte641.png?width=1000&format=png&auto=webp&s=fb1a38f343d0c5fa27a81f0edcffbf91abc1cf57
Litecoin was developed in 2011 by former Google employee Charlie Lee and is called "The Bitcoin younger brother" and "digital silver". And for a good reason. Its work is based on the Bitcoin architecture. The name Litecoin is symbolic - the size of the blockchain is significantly smaller due to more compact blocks, and the blocks themselves are formed faster than in the main cryptocurrency.

How to trade Litecoin

Litecoin trading does not have any complicated mechanisms, and technical analysis is good not only for intraday trading, but also for trading over longer distances. Beginners will greatly benefit from Trade-mate.io automatic trading service, providing features such as:
  • Smart trade, where trailing ladder is available, i.e. take-profit and stop-loss are automatically rearranged as the price changes
  • Autotrade. You can subscribe to other traders and channels with signals and copy trades.
  • "Panic sell" button that allows you to sell all cryptocurrencies at once.
Sign up for Trade-mate.io to evaluate all the benefits of the service. In your personal account, you can track detailed statistics of your cryptocurrency portfolio and trade on several exchanges at the same time. Trade-mate.io works with three major exchanges: Binance, BitMEX and Poloniex.

Trading secrets

It is best for Litecointrading to use classic indicators, especially trend ones. Th cryptocurrency is quite volatile, which allows you to make a profit in a growing market. This strategy is based on buying on pullbacks and selling high. To improve the effectiveness of the strategy, it is recommended to use several indicators to get a more detailed picture of the state of the market.

https://preview.redd.it/lzidouk7ue641.png?width=751&format=png&auto=webp&s=4ff3dcfca3cba8602c3432be6d9fda33dfa7f3c4
You can determine the necessary levels with the help of standard SMA and RSI indicators, which work perfectly together. It is also important to define the boundaries of the upward channel in order to more accurately determine levels where the price rebounds. The only strategy that does not work well when trading cryptocurrency is scalping - large spreads kill it.
submitted by mrhadow to matetrade [link] [comments]

SERIOUS: We need to come together as a community to address this issue

I’ve been in crypto since late 2011 and I’ve never seen the systematic manipulation of Bitcoin’s price lower on such a grand scale.
Every time you see 60-100 BTC Sell Walls against 5-10 BTC Buy Walls, and the Sellers lowering their Offers to lower and lower while throwing on more supply is not the act of a rationale investor, this is a person or a group who wants the price to drop. If you had 50 BTC to sell, would you dump them all out at once and crush the price and therefore, lower your profits or would you match against the Bids and leg out to maximize your sale price.
We as a community really need to address this, people who bought in the last 12 months aren’t sticking around because they’re convinced Bitcoin has no value because they bought at $19k and we’re currently sitting at $9k. The individual(s) doing this are destroying Bitcoin’s credibility in the mind’s of the very people we need to be adopting and embracing Bitcoin. Not fringe people like me who’ve been involved for years but Mom and Pops, small businesses who just learned about it and those who need Bitcoin to protect their wealth from unscrupulous governments. Those people are leaving, in droves and won’t be back. If this community really wants to ensure the future of Bitcoin, we need to organize and start a dialogue about this.
If what these individuals did to Apple, Exxon, GE... what they are doing to Bitcoin, they would be in Handcuffs for multiple felonies related to securities fraud. These bottom-feeders are hiding out in our part of the ocean now because they currently are outside of the reach of the SEC and CFTC, but there is something we can do.
We need to organize, and come up with a plan to reach out to our exchanges (Bitfinex, GDAX, Kraken, Binance, Bittrex...) and implore them to exercise due diligence on their customer’s trades, KYC (Know Your Customer), and take action against those customers who are using their exchanges purely to depress the price of Bitcoin and other cryptocurrency markets.
If this doesn’t get addressed, this will kill our market. It won’t be mining fees, or hard-forks, or block size, it will be people leaving Bitcoin forever because ‘it’s rigged’, and slowly, the people manipulating this market will win. This isn’t some conspiracy theory and I’m not sitting here with a tin-foil hat, I’m a trader, I’m a capitalist, and as someone who has been involved in cryptocurrency for so long, it kills me (and my portfolio value) to watch this go on unchecked.
Let’s do something about it.
submitted by AndreLinoge55 to CryptoCurrency [link] [comments]

List of Lightning Network Coins

Here’s a list of coins that have or will have Lightning Network this year according to the coin’s roadmap. I also outlined some basic stats.
I couldn’t find a list of all the Lightning Network coins anywhere, so I decided to create one. Let me know if I’ve missed coins in the comments and I will make an update.
Source: Coingecko.com, coinmarketcap.com and specific coin websites sited beneath each coin. Current price and rankings are as of earlier today, 7-16-18.
BITCOIN
LITECOIN
VERTCOIN
VIACOIN
STELLAR LUMENS (2018)
BITCOIN PRIVATE (2018)
RAVENCOIN (2018)
DECRED (2018)
Other Coins added from comments with Lightning Network pipeline:
From comments: (thank you soldat-iop)
CHIPS:
• ⁠Lightning Network enabled
• ⁠Microtransactions – used for betting or any other micro-transaction application
• ⁠Will be used widely in betting platforms within the Komodo Ecosystem
• ⁠Will be the only currency supported in Komodo Platform’s Pangea Poker
• ⁠Can be integrated into any other gaming system such as online casinos, betting, or incentivized gaming of any type
• ⁠Supply: 21,000,000
• ⁠Proof of Work phase
• ⁠10 second block time
• ⁠Exchanges: CoinExchange, BarterDEX via atomic swaps.
• ⁠Wallet: Agama
submitted by Kayjay4 to CryptoCurrency [link] [comments]

Daily analysis of cryptocurrencies 20190930(Market index 27 — Fear state)

Daily analysis of cryptocurrencies 20190930(Market index 27 — Fear state)

https://preview.redd.it/cj3ysjyoirp31.png?width=405&format=png&auto=webp&s=87dc996d5fae2556bc5bd1c22c6a8cceba09e286

European Banking Giant Developing Blockchain Platform And Digital Currency Payments For Transit Riders In Madrid The Municipal Transport Company of Madrid (EMT) is planning to launch a blockchain-powered application that will allow users to pay with digital currency for the company’s train and bus services across the city. Vottun, the company behind the development of the App, is one of 300 firms that submitted an application to participate in the Madrid in Motion project, which involves adding support for a digital payment system to the city’s public transportation system. To develop the payment system, the startup is partnering with Banco Santander, the fifth-largest bank in Europe. Earlier this month, Banco Santander became the first financial institution to issue an end-to-end debt-based bond on Ethereum’s public blockchain.
IRS Releases ‘Tax Cheat’ Info Raising Concerns About Crypto Theft The U.S. Internal Revenue Service (IRS) released a new report and infographic on Sept 26 illustrating unpaid or underpaid taxes for the years 2011–2013. The numbers reflect estimates based on the last such findings, for the years 2008–2010. With commissioner Chuck Rettig citing the importance of voluntary compliance, and crypto’s popularity on the rise, the IRS is growing increasingly concerned with opportunities for tax evasion afforded by the new digital money.
Japanese Government To Hold Blockchain-Themed Symposium On October 7 The Research Institute of Economy, Trade, and Industry (RIETI) will hold a symposium named Next·Blockchain on October 7. This is reportedly the first time for the Japanese government to host such a blockchain-focused conference. Attendees include Chris Dai, the Long Hash CEO, Steven Pu, the Taraxa founder and CEO, Yuzo Kano, bitFlyer co-founder and CEO, etc.

Encrypted project calendar(September 30, 2019)

INS/Insolar: Insolar (INS) will be on September 30th ERD/Elrond: Elrond (ERD) will conduct main network test on September 30th NULS/NULS: The NULS team will plan to beta the ChainBOX in the third quarter. CS/Credits: Credits (CS) will exchange tokens and bug rewards in the third quarter QTUM/Qtum: Quantum Chain (QTUM) is expected to complete lightning network beta in the third quarter XEM/NEM: New World Bank (XEM) will release mobile wallet and computer wallet in the third quarter HC/HyperCash: hypercash (HC) will complete community management agreement in the third quarter

Encrypted project calendar(October 01, 2019)

HT/Huobi Token: The financial base public link jointly created by Firecoin and Nervos is expected to be open source in October. RVN/Ravencoin: Ravencoin (RVN) Ravencoin will perform a hard fork on October 1. SHND/StrongHands: StrongHands (SHND) SHND 1000: The 1st currency exchange event will be held on October 1. ADA/Cardano: Cardano (ADA) plans to hold technical consensus meeting in Amsterdam on October 1st XRC/Bitcoin Rhodium: Bitcoin Rhodium (XRC) will record account balance awards on October 1st PPC/Peercoin: Peercoin (PPC) will perform Peercoin v0.8 (code tang lang) hard fork on October 1st

Encrypted project calendar(October 02, 2019)

BNB/Binance Coin: The 2019 DELTA Summit will be held in Malta from October 2nd to 4th. The DELTA Summit is Malta’s official blockchain and digital innovation campaign. BTC/Bitcoin: The B.Tokyo 2019 conference will be held in Tokyo from October 2nd to 3rd. CAPP/Cappasity: The Cappasity (CAPP) London Science and Technology Festival will be held from October 2nd to 3rd, when the Cappasity project will be attended by the Science and Technology Festival.

Encrypted project calendar(October 03, 2019)

ETC/Ethereum Classic: The 2019 Ether Classic (ETC) Summit will be held in Vancouver on October 3–4 ANT/Aragon: Aragon (ANT) is the AGP for the new mandatory community review period, with a deadline of October 3.

Encrypted project calendar(October 04, 2019)

KNC/Kyber Network: Kyber Network (KNC) will update the maxGasPrice parameter in the Kyber Network contract from 100 gwei to 50 gwei within 2 weeks after October 4.

Encrypted project calendar(October 05, 2019)

Ontology (ONT): Ony Ji will attend the blockchain event in Japan on October 5th and explain the practical application based on the ontology network.

Encrypted project calendar(October 06, 2019)

SPND/ Spendcoin: Spendcoin (SPND) will be online on October 6th

Encrypted project calendar(October 07, 2019)

GNO/Gnosis: Gnosis (GNO) will discuss the topic “Decentralized Trading Agreement Based on Ethereum” will be held in Osaka, Japan on October 7th. Kyber and Uniswap, Gnosis and Loopring will attend and give speeches.

Encrypted project calendar(October 08, 2019)

BTC/Bitcoin: The 2nd Global Digital Mining Summit will be held in Frankfurt, Germany from October 8th to 10th.

Encrypted project calendar(October 09, 2019)

CENNZ/Centrality: Centrality (CENNZ) will meet in InsurTechNZ Connect — Insurance and Blockchain on October 9th in Auckland.

Encrypted project calendar(October 10, 2019)

INB/Insight Chain: The Insight Chain (INB) INB public blockchain main network will be launched on October 10. VET/Vechain: VeChain (VET) will attend the BLOCKWALKS Blockchain Europe Conference on October 10. CAPP/Cappasity: Cappasity (CAPP) Cappasity will be present at the Osaka Global Innovation Forum in Osaka (October 10–11).

Encrypted project calendar(October 11, 2019)

OKB/OKB: OKB (OKB) OKEx series of talks will be held in Istanbul on October 11th to discuss “the rise of the Turkish blockchain.”

Encrypted project calendar(October 12, 2019)

BTC/Bitcoin: The 2019 Global Mining Leaders Summit will be held in Chengdu, China from October 12th to 14th.

Encrypted project calendar(October 14, 2019)

BCH/Bitcoin Cash: The ChainPoint 19 conference will be held in Armenia from October 14th to 15th.

Encrypted project calendar(October 15, 2019)

RUFF/RUFF Token: Ruff will end the three-month early bird program on October 15th KAT/Kambria: Kambria (KAT) exchanges ERC20 KAT for a 10% bonus on BEP2 KAT-7BB, and the token exchange reward will end on October 15. BTC/Bitcoin: The Blockchain Technology Investment Summit (CIS) will be held in Los Angeles from October 15th to 16th.

Encrypted project calendar(October 16, 2019)

BTC/Bitcoin: The 2019 Blockchain Life Summit will be held in Moscow, Russia from October 16th to 17th. MIOTA/IOTA: IOTA (MIOTA) IOTA will host a community event on the theme of “Technology Problem Solving and Testing IoT Devices” at the University of Southern California in Los Angeles on October 16. ETH/Ethereum: Ethereum launches Istanbul (Istanbul) main network upgrade, this main network upgrade involves 6 code upgrades. QTUM/Qtum: Qtum (QTUM) Qtum main network hard fork is scheduled for October 16.

Encrypted project calendar(October 18, 2019)

BTC/Bitcoin: The SEC will give a pass on the VanEck/SolidX ETF on October 18th and make a final decision HB/HeartBout: HeartBout (HB) will officially release the Android version of the HeartBout app on October 18.

Recently, there was a minor upside correction in bitcoin above the $8,000 level against the US Dollar. The BTC/USD pair even climbed above the $8,200 resistance. Finally, the price spiked towards $8,400, but it failed to gain momentum. Moreover, there was no proper close above $8,200 and the 100 hourly simple moving average. As a result, the price started a fresh decline below the $8,000 support.
It even broke the $7,700 level and traded to a new monthly low at $7,661. Besides, the current price action is bearish, with an immediate resistance near the $7,900 level. Additionally, 50% Fib retracement level of the recent decline from the $8,157 high to $7,661 low is also near the $7,900 level. The main resistance on the upside is near the $8,000 and $8,100 levels. More importantly, there is a key bearish trend line forming with resistance near $8,050 on the hourly chart of the BTC/USD pair.
An intermediate resistance is near the $8,040 level, plus the 76.4% Fib retracement level of the recent decline from the $8,157 high to $7,661 low. Therefore, an upside break above the $8,000 and $8,100 levels is must for a decent recovery in bitcoin. The next key resistance is near the $8,400 level.
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