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What If Bitcoin Is No Bubble

Mon, 01/15/2018 - 23:55

When we talk about Bitcoin and co., it is often said that this must be a speculation bubble. This view could turn out to be a mistake.

If you had a choice, what would you choose? You will receive either

a) 10,000 dollars per week over the period of one year, or

b) twice as much as the previous week during the same period, starting with one cent.

If you think like most people do, then intuitively choose the impressive sum of 10,000 dollars a week and at the end of the year you are 520,000 dollars richer. What if you had chosen the option with the cent?

Then you needed a financially strong opponent: you would then have almost 87 million times as much as in the first variant, namely over 45 trillion dollars.

The reason for this is simple: our brain can imagine steady, linear growth, but not exponential growth.

A stock market share that is rising linearly and steadily us already ringing alarm bells. On the other hand, if the share rises exponentially, the bubble is supposedly close to bursting, according to the motto “What comes up, must come down.”

Since the Dutch tulip speculation it has always been like this, hasn’t it.

Counter-question: do you travel by train, car or plane every now and then?

These are inventions of the last 100+ years whose distribution has only increased globally in the course of time.

Software has been expanding exponentially in all areas of life since the 1970s, and the same was true for the smartphone.

But with all these examples, does anyone speak of a bubble? Does anyone say, “Digitization has spread so radically, it’s all going to end up in a huge crash, and then we’ll be sitting in front of a slide rule again”?

The biggest mistake with regard to the so-called Bitcoin bubble could be that this innovation is seen as a pure asset class, like a stock, a government bond or a tulip — and forgets the network effect of it.

Bitcoin and other cryptocurrencies are network-centric money, and blockchain-based business models are novel platforms that make sense wherever middlemen need to be replaced.

Blockchain technology is an invention, like a new tool. And inventions cannot be reversed any more than you can turn an omelette into an egg.

What has never been seen before in this development is also the fact that it is possible to follow the growth of blockchain-based business models virtually in real time, just a look at coinmarketcap.com is enough.

This does not mean that losses or setbacks cannot occur, especially since the sector is still young and highly volatile.

However, if you compare Bitcoin and co. with fashionable trends such as Pokémon Go, the fidget spinner or even tulip bulbs, you should not forget that it was difficult to build up a protocol-based, worldwide and decentralized network on tulip bulbs.

The state and central banks warn against investing in Bitcoin and other digital currencies. You could lose money, said German Bundesbank president Jens Weidmann.

Where are the warnings against state gambling casinos, state lotteries, investments in life insurance, government bonds or in one’s own inflationary, arbitrarily reproducible state payment slips, also known as money?

translated from Neue Zürcher Zeitung

Weak Hands

Thu, 01/11/2018 - 04:10

It’s a law of the stock and now the cryptocurrency market: newbies or “noobs,” as they’re affectionately called, have weak hands.

Weak hands?

It’s a way of saying they’re getting easily scared by rumors or volatility and sell off when they shouldn’t.

A weak hands’ reaction to pricing shift is often disproportional at best and downright suicidal most often.

When the markets are volatile it’s clear that too many weak hands are holding assets.

Whales with their predictable pump and dump strategies know well how to shake those trees, and those fickle, bleeding investors will flock back in when the tide turns — and prices are higher again.

Here’s a typical scenario:

A weak hand bought in and prices are flat. The weak hand doesn’t sleep well. Then a rumor hits. Or exchange bots start doing their thing. Prices fall. The weak hand sells.

  1. doubts
  2. fear
  3. panic sell
  4. market back to normal

Countless hours of despair can be avoided with a bit of calm and foresight.

Think of it. You made a strategic decision to buy and hold. You made an investment and want to touch it a few months or years down the road.

Then you get nervous when prices dive. You freak out when prices dive a bit more. You panic when prices crash, even though it’s a paper loss and after the downside volatility there’s upside volatility.

It is illogical bordering on stupidity to change a position when none of the relevant facts are changed, as it’s the case most often.

But shit happens when noobs are only staring at charts 24/7. Take a walk! Meet a friend!

Granted, one of the basic laws of being a weak hands investor is to buy at the top and sell at the bottom.

That’s a rule everyone has to go through.

You’ll learn. The hard way.

Stick to the plan. Emotions gonna kill you.

Bitcoin Futures — The Next Big Short?

Mon, 12/04/2017 - 22:55

+++ If you’re here for the first time, check out and bookmark our cryptocurrency live news feeds.

We’ve been predicted the end of Bitcoin countless times. The naysayers have always been proven wrong.

However, it seems clearer by the day what’s really behind the Bitcoin futures:

Three agencies are preparing to trade and bet on Bitcoin simultaneously.

Cboe announced to launch Bitcoin futures on December 10, 2017, to be followed by CME‘s Bitcoin futures on December 18, 2017. Along with CME and Cboe, the mighty Nasdaq is joining the Bitcoin mania in Q2, likely in April.

Why the rush? Usually it takes months if not years to develop such products. How well are the contracts designed? What’s the motive behind the futures? Take it as some first form of “backdoor regulation” creeping in:

Insider intel is that these powers that be are doing this to be able to handle Bitcoin and crash it by favoring short versus long, even if initially they end up pumping it up a bit.

This is apparently under instructions of higher official groups, directed to put a handle on Bitcoin.

In other words: we might have a sort of “big short” coming or in the making for Bitcoin. Something Bloomberg picked up on:



Seeking Alpha phrases it more bluntly — Futures Spell the End of Bitcoin Mania:

We should expect (…) for the digital gold rush to end.

Shall Jamie “dino” Dimon keep the last word?

Killing two birds with one stone: Wall Street doesn’t want to kill the “troublemaker” currency without being able to profit from it.



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Interestingly, the financial establishment’s first “official” Bitcoin products are futures, and not simple trading or options. Futures put a leash on this free-wheeling anarchy coin and make it easier for Wall Street to manipulate the price and engineer a giant cash-out.

And paradoxically, they trade and bet on Bitcoin, without owning any Bitcoin… get the point? These forces are pros at making and taking other people’s money.

At this point it doesn’t look like an attack on the whole cryptocurrency ecosystem. It’s an attack directed at Bitcoin, to stop it from being a go-to escape asset. And as a plus, futures in cryptocurrencies add to the market’s legitimacy.

Yet the big leagues understand Bitcoin’s days are numbered, hence the plan to fork it many times and run it to its maximum point.

Bitcoin top folks seem to understand that Bitcoin will loose fundamentals once all exchanges come under scrutiny. Before that point they want to ride hard, fork as much and drain the value in other forms of cash.

Also read Bitcoin Poses Systemic Risk.

Bitcoin Futures Threaten to Become a Systemic Risk

Mon, 12/04/2017 - 03:45

Thomas Peterffy, CEO of Interactive Brokers, warns against the imponderables of poorly designed Bitcoin futures contracts and low volatilities.

Thomas Peterffy of Interactive Brokers clearly enjoy his success, yet is wary about Bitcoin futures’ effect on the securities market.

When it comes to finding out about the current situation and interesting phenomena on the international financial markets, it is worth talking to a pioneer of the business. For example with Thomas Peterffy, the billionaire founder and head of Interactive Brokers.

The 73-year-old Peterffy left socialist Hungary at a young age and emigrated to the USA, where he founded Interactive Brokers, a securities company, to create assets of about $18 billion.

Does Peterffy feel like missing out on the cryptocurrency boom? Not really. On the contrary, he sees substantial systemic risks on the horizon. In the long run Bitcoin could even become worthless, he says.

He’s especially concerned about Bitcoin futures. On the one hand they pose a systemic risk. On the other hand, and he doesn’t say that directly, they could be a big short to push Bitcoin lower and lower… Wall Street’s way to get rid of the troublemaker?

Read the interview, originally published in German by the Neue Zürcher Zeitung on December 4, 2017.

Bitcoin seems to be the new star in the investment world. Is that so?

Yes, certainly — albeit only temporarily.

Is this really a good investment?

In the short term, the share price should tend upwards rather than downwards. In the long run, I expect Bitcoin to become worthless.

Why?

In the end, regulation is what matters. If Bitcoin is accepted and used by a wider circle of investors, it can be difficult to collect taxes, track down illegal money or terrorist activities — and so on.

Is Bitcoin a currency, despite its volatility and no intrinsic value?

In fact, Bitcoin isn’s bound to anything. I am really worried about plans to place futures contracts on Bitcoin.

Are these plans for real, or are the operators of futures exchanges crazy?

These plans really do exist. Unfortunately, they want to process and settle these products together with other derivatives. In the so-called clearing houses, many brokers are represented with very little equity capital. If investors should speculate, because Bitcoin can reach almost any price level in a very short time, they could get into difficulties and no longer fulfil their obligations to the clearing house. I haven’t been able to stop the project yet.



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Who is behind the effort?

What is certain is that the Chicago Mercantile Exchange CME, the operator of the world’s largest derivatives market, intends to start trading in Bitcoin futures in the second week of December.

What are the consequences?

The day will come when the price of the Bitcoin product moves so strongly that some investors and brokers will experience financial difficulties — which can lead to losses like in 2008 when Lehman Brothers went down. This would affect not only Interactive Brokers, but also the other clearing house members and some banks.

Do they not share your concerns?

This is a problem of the back office, for which leading bank managers are usually not particularly interested at first.

Is that a systemic risk?

Certainly. Therefore, I plead for Bitcoin products to be invoiced in a legally independent unit. In case of problems, only Bitcoin customers would have to bear the consequences. Otherwise, others would also be affected who only trade with the usual forward exchange, index or interest rate products.

Does futures trading with Bitcoin even make any sense at all? Volatility is enormous and liquidity low.

Yes, if it is separated from the rest of the trading process. Trading would probably calm down and an interesting market could develop.

Interactive Brokers customers are not yet able to trade with Bitcoin. Will that change?

Possibly. However, I would only allow the purchase and prevent bets on falling prices.

Why?

Because you just don’t know where the price is going. Theoretically, it can go up to $100,000…

How do you generally assess your business currently?

Due to the booming markets, our business is in excellent shape at the moment. Unfortunately, experience shows that this will not last forever.

Volatility is low and some valuation ratios are critical. What do you make of it?

If nothing dreadful happens, the bull market rally can continue short-term. Economic growth is comparatively solid, productivity is rising and most companies are doing quite well. In the long run, however, something always goes wrong.

Are small price fluctuations good or bad?

More critical. Some investors bet on falling volatilities, others buy them and hedge themselves with futures. They and the futures exchanges, which grant discounts for active trading, make high profits as long as prices do not move too much. But if they should break out, it will be dangerous.

In what way?

If the volatility should suddenly increase, some investors make considerable losses, which their broker will have to take over at the end of the day.

Are the brokers sensible enough?

We at Interactive Brokers are. We have begun to demand higher margins on so-called volatility products from our customers. We fear that the price fluctuations could suddenly increase one day and that volatility indices such as the VIX, VDAX or VSMI would rise rapidly and significantly.

How do customers react to this?

Some have relocated to other brokers who seem to offer them more favorable conditions. But we trust in our experience and want to avoid possible losses.

You have experienced many ups and downs. Where are we now?

Rather near a cyclical high than a market low.

You are very successful as an entrepreneur. What was key?

We must have clear objectives, always bear them in mind and concentrate on working towards them. I started as a securities dealer and wanted to be better than anyone else. My bids were always a little higher and the selling prices were slightly lower than those of my competitors. I have also always used all the technological and automation possibilities to achieve this goal.

How would you describe your management style?

I rely on people who are quick, determined and willing to perform. As I tolerate certain mistakes, I can rely on loyal employees. Basically, I’m hungry to move the business forward — and everyone who works with me on it inherits this hunger.

Bitcoin Hysteria and the Promises of Greed

Thu, 11/30/2017 - 10:50

The end of a boom and coming of a crash, in financial markets, is usually marked by the simple fact that housewives, school kids, retirees want in on the action and join the party. Now everyone talks about Bitcoin. So many are buying.

Yet cryptocurrencies are crashing all the time. No way the bubble is bursting. This is still very early days. Yet there are dangers.

Bitcoin is a modern-day dream headline, rewarding with quick fortunes. Nerds become millionaires, anyone can hit the jackpot.

“Bitcoin Mania: Even Grandma Wants In on the Action,” titles the Wall Street Journal.

You don’t need no job or education, just a bit of recklessness. Bitcoin is the democratization of the monetary universe. Money is no longer under the control of governments, but in the hands of techies wearing t-shirts and colorful socks.

Everyone wants a piece of the cake, yet the rules are heartless and more than a few lose out, even in a market where everything goes up.

Because greed is taking over.

Greed.

Fear of missing out kicks in. Newspapers, TV, Bitcoin is everywhere. Why wouldn’t you want a piece of it.

Self-styled prophets promise to show the way to the riches, such as Bitcoin guru Tone Vays who probably, and I’m not joking, could talk nonstop for one week without gasping for breath once.

The guru only four weeks ago called the $7,500 Bitcoin top. Four weeks later everything’s forgotten, the same guru predicts quick jumps to $11,000, then $12,000.

To be fair, the guru also predicted how easily Bitcoin can fall back 20 or 30 percent. That’s the name of the game — a game newcomers are not used to. They are confused. They want in, but easily panic and do what everyone does first: buy at the top and sell at the bottom.

Virtual currencies are not easy on the mind. Dealing with the volatility has to be learned, or else you’re easily screwed. Or a rare natural.

Greed.

The hunt for fast riches can easily wreck families. Many succeed. Many fail. While the establishment — government and traditional finance — fear to lose out. Which they don’t admit. They say they have to protect the people.

Which is why the chorus of Bitcoin enemies will grow louder the more people try to jump on this promised train to fast riches.

Take Nobel Prize-winning economist Joseph Stiglitz. He wants to outlaw Bitcoin altogether, because

“Bitcoin doesn’t serve any socially useful function.”

He laments Bitcoin’s potential for circumvention and lack of oversight:

“The main use of Bitcoin has been to circumvent tax authorities and regulation.”

Quixotic Stiglitz calls Bitcoin nothing more than a favorite pastime:

“It’s a bubble that’s going to give a lot of people a lot of exciting times as it rides up and then goes down.”

While some governments, like Indonesia’s, call for an outright cryptocurrency ban, others only start to realize how virtual currencies might corrupt society as a whole.

The prime minister of South Korea, the country with the probably most active cryptocurrency traders, fears Bitcoin & Co. corrupt the youth:

“Young Koreans including students are jumping in to make quick money and virtual currencies are used in illegal activities like drug dealing or multi-level marketing for frauds.”

He adds:

“This can lead to serious distortion or social pathological phenomena, if left unaddressed.”

There is some truth in this.

Greed.

There hardly ever is a fast road to riches.

If it’s too good to be true it probably is.

Bitcoin Trivia

Thu, 11/16/2017 - 03:55

Who hasn’t yet heard of Bitcoin, the virtual currency using blockchain technology for secure payments and electronic storing of money, without requiring a bank or a person’s name.

In fact, Bitcoin is a relatively new kid on the block, created back in 2009 by a certain Satoshi Nakamoto.

Bitcoin is booming, even though it’s use case is questionable and the technology has been surpassed by superior cryptocurrencies.

Be that as it may, here’s an interesting infographic created by BitcoinPlay, illustrating in detail some facts about this first mover virtual currency:

The Grand Tezos Donation Scam?

Thu, 10/26/2017 - 02:10

+ + + U P D A T E + + + As hinted at by this article, the internal Tezos power struggle leads to a full-blown legal battle: a lawsuit seeking class action status has been filed in California against the founders and promoters of the embattled Tezos blockchain project. Details here. And now the founders demand to use ICO funds to pay for their legal fees. What a mess.

You remember the record groundbreaking Tezos fundraiser, or “donation” as it was called. The non-profit foundation with its headquarters in Zug, Switzerland, the self-proclaimed Crypto Valley, this summer collected $232 million in fundraising by hopeful investors. Nearly a quarter million dollars, that’s a lot of money. Now the writing is on the wall that the grand Tezos project could go down in history as a gigantic failed ICO (initial coin offering).

Well, it’s not an ICO to begin with. The Tezos creators were always careful enough to say the “donations” shouldn’t be viewed as an investment, but as a, well, donation to a non-profit organization. Instead of making promised good use of the donations the initiators of Tezos are already fighting with each other, and it may well tear down the whole noble project.

In an interview mid-October with the Wall Street Journal, Tezos co-founder Kathleen Breitman said that money sent to Tezos shouldn’t be viewed as an investment. Instead, Breitman described it as a contribution or donation to a non-profit network, with the tokens given in return more like a souvenir than a stock certificate. She said that the tokens carried no promises of profit-sharing, dividends or an equity stake:

I was very unpopular for saying it’s not an investment. (People) don’t want to hear that. They want a story that you’re going to get rich quick.

Umm. Fair enough. But it’s obvious they’re hiding behind disclaimers to pretend that ICOs are not in fact securities.

Tezos told its investors that their investments were actually a “non-refundable donation,” rather than, y’know, an investment that might be governed by and subject to the various rules and laws associated with investments. The terms and conditions consistently and painstakingly refer to “contributions.”

As a Tezos donor I wouldn’t be too happy to hear Mrs. Breitman. No investment what?! The “donation” aspect sure was communicated clearly during the fundraiser, but everyone simply expected to get the appropriate share of tokens relative to the size of the “investment.” Was it that easy to get a quarter million dollars, without promising anything in return?!

In the case of Tezos, the tokens won’t be distributed until the network goes live. If the network ever goes live. Lawyers — and authorities probably as well — are circling over the Tezos dispute. Tezos has admitted that it will have no product until February 2018 at the earliest, raising questions about the use of the ICO proceeds.

Writes the Financial Times:

Delays and infighting at a venture which raised $232m in one of the largest “initial coin offerings” to date has raised concerns that the experimental financing mechanism could attract a swift crackdown by regulators.

At the heart of the conflict is the simple question who actually runs Tezos. The offering documents said the new tokens were to be controlled by the non-profit Tezos Foundation. It was registered in Switzerland and run by a digital-payments executive picked by Tezos co-founders Kathleen and her husband Arthur Breitman, Johann Gevers. And the Breitmans don’t want Gevers any longer on the foundation’s board. They want him out.

The Breitmans said Gevers had sought to pocket a bonus from the ICO proceeds, whose value had swollen to as much as $400 million because of a rise in the value of Bitcoin, and then lied about it to his foundation colleagues.

Gevers denies the allegations and speaks of an “illegal coup“:

As Arthur has done to others before me, this is attempted character assassination. It’s a laundry list of misleading statements and outright lies. [Arthur and Kathleen] are attempting an illegal coup. Attempt to control the Foundation as if it were their own private entity… by bypassing the foundation’s legal structure and interfering with management and operations.”

Mrs. Breitman specified the accusations. She said Gevers tried to pressure the other two foundation members, Diego Ponz and Guido Schmitz-Krummacher, into a bonus worth $1.5 million at the time based on the Tezzie’s valuation, but misrepresented this as being worth only $300,000.

Gevers counters these allegations, saying he brought “many millions of dollars in further contributions” to Tezos from his network, including ultra-high net worth individuals. Gevers enjoys sole signatory authority over the foundation, not uncommon given his role as Tezos head.

The Tezos foundation can dump Gevers and oust from the board if it follows procedure, but it is unclear whether Ponz and Schmitz-Krummacher, who have remained silent so far, want to do so.

Meanwhile Tezos and the monies of countless hopeful “donors” are stuck.

It is unlikely that U.S. investors will be able to challenge Tezos in a class action lawsuit because U.S. investors were explicitly not allowed to invest in Tezos to begin with, and even if they had, investment in Tezos was described as a donation, which remains outside of the SEC’s jurisdiction.

Gevers for his part has officially appealed to Swiss federal inspectors and requested “the supervisor to intervene, if necessary, to protect the interests of the Tezos ICO participants.”

Or… a setup from the start?

The terms and conditions consistently and painstakingly refer to contributions, but apparently the message didn’t reach its main venture capital backer, Tim Draper:

Draper told Reuters that cryptocurrencies are commodities like pork bellies, and characterized acquiring Tezzies as a purchase rather than a donation. Asked this month how much he donated during the Tezos fundraiser, he replied via email:

You mean how much I bought? A lot.

To be continued.

What’s the Buzz About the indaHash ICO Release?

Wed, 10/18/2017 - 08:05

indaHash, the global technology platform that connects more than 300,000 digital influencers with a combined reach of one billion followers to global brands such as Coca-Cola, McDonald’s, L’Oréal and MasterCard, has announced the launch of their indaHash Coin ICO with the pre-ICO set for November 8.

The emergence of cryptocurrencies, such as Bitcoin, has created a wave of fiscal opportunities and many companies are not hesitating to hop on board and ride the wave. indaHash is the first in the influencer marketing industry to create its very own indaHash Coin.

The indaHash Coin ICO release is grabbing the attention of media outlets around the globe. CNBC quoted Barbara Soltysinska, co-founder of indaHash.com, saying that it “makes perfect sense” for the digital business to launch a cryptocurrency. “With the introduction of indaHash Coin, we want to tokenize the influencer marketing world and create a revolution in terms of brand cooperation and audience development, solving a wide range of issues and challenges between influencers, brands and fan bases.”

If you’re curious how the indaHash Coin will work and the ins and outs of the new cryptocurrency, indaHash has already produced a video with further explanation:



As the use of cryptocurrencies is still new for a vast amount of people, there are many FAQs.

1. Why will influencers use the indaHash Coin instead of traditional fiat currencies?

The benefit of using indaHash Coins are clear. One prerequisite will be the personalization of tokens. The ecosystem created by indaHash will enable influencers to create their own personalized coins which has been unheard of until now. With the creation of their own tokens an influencer can use their tokens as rewards for their audience. These rewards can be given in appreciation for an audience’s loyalty or to motivate and encourage more activity from the audience’s side, such as likes and reposts. As audiences gather more tokens they will have the option to exchange them for offers from their favorite influencers, which could be anything from personalized prizes like shoutouts, signed gadgets, mutual selfies posted on social profile, face to face meetings, and other engaging social activities mutually beneficial for both sides. The possibilities are endless, and will be a practical aspect of the optimization of the relationship between influencers and their followers.

indaHash has also revealed a unique “Pay-With-Fame” feature. With this, influencers can exchange their indaHash Coins for various offers from brands, including but not limited to early access to exclusive and limited edition products, events, and/or workshops. This will be a groundbreaking change and help link the connection between brands and influencers adding a sense of exclusivity for influencers when they are offered products and opportunities that they may not have had the chance to receive before. This will also be advantageous for brands as their products and services will be viewed and used by more and more promising influencers.

The option for influencers to exchange their tokens for payout will be available as well. Influencers should know that if they are to keep them, the value will be expected to grow with time. Payout with indaHash Coins will allow influencers to be a part of the the booming industry of cryptocurrencies. If anyone has followed Bitcoin over the past few years, it’s quite obvious that coins can be something lucrative to hold on to.

2. How will the circulation of indaHash Coins look like for everyone involved?

Basically, according to the recently published indaHash Whitepaper ICO, “indaHash cryptoeconomics assumes indaHash Coin circulation between three groups of receivers: brand, influencer, audience”. The infographic below, provided by indaHash and featured in the previously mentioned Whitepaper, gives a detailed breakdown of the circulation between those three groups.

3. How is the indaHash Coin worth anything if it is not regulated by a country or central bank? Will the value change or be something static?

Barbara Soltysinska, CEO of indaHash, has answered these questions in an interview with investitin.com:

What gives indaHash Coin value?

As with all cryptocurrencies, the ultimate value of indaHash tokens is dependant upon the demand and supply and the economies of scale. The more the indaHash business grows, the greater the value of the indaHash Coin. Pre-ICO, the value of 1 IDH will be around $0.06 but the future value of the indaHash Coin will be determined by the market. What is unique about the indaHash Coin is the fact that indaHash will constantly buy back its own indaHash Coins to pay influencers for campaigns. So, indaHash will create and drive the growing value of IDH. Furthermore, the indaHash Coin value should reflect wider influencer marketing industry conditions and it’s commonly known that influencer marketing is the fastest growing media segment.

How will this value change over time?

indaHash will issue 80% of all tokens. In order to be able to settle the payments in the indaHash Coin, the company will regularly purchase its own indaHash Coins for the fiat currencies received from the brands. Then it will give the indaHash Coins to the influencers. This will constantly fuel the demand and the value of our currency and it will grow together with the dynamic development and expansion of indaHash as a business.

4. How will people outside the realm of indaHash influencers, brands, and the audience be able to invest in and become a part of the indaHash Coin community?

If you are familiar with the cryptocurrency market, you will be excited to know that pre-ICO token distribution starts on November the 8th 2017 and there will be a one week bonus period where a pre-ICO participants will receive a 40% bonus on their contributions. The main ICO will begin on November the 29th 2017 and last until December 20th 2017.

If the decision is made to invest into indaHash Coins anywhere between November 8th and 15th, the offer will be 4480 IDH for 1 ETH. Afterwards a 20% discount may be taken advantage of until December 6th, with an offer of 3840 IDH for 1 ETH, and from that time till December 13th the discount will be decreased to 10%. After December 13th normal rates will apply with the offer of 3200 IDH for 1 ETH.

320 million IDH, or 80% of all coins (400 million IDH), will be available during the pre-ICO and the ICO with registered users given the exclusive ability to participate in the token sale. An 18% maximum of the total supply of indaHash Coins will be used to engage and educate both new and existing influencers.

You can register for the pre-ICO, and find loads of useful information on indahash.com/ico.

So, what’s the buzz about the indaHash ICO release? We’ve covered the basics here, but be sure to be on the lookout for big things coming from indaHash for the influencer marketing industry and the world of cryptocurrencies!

Check out the following links below for more information and an in depth look into things mentioned in this article:

CNBC: Social influencers can soon get paid in cryptocurrency indaHash Coin
investitin: indaHash — crowd sourced marketing, the power of influencers.
indahash.com/ico
YouTube: indaHash ICO Review | Tokenizing The Influencer Industry
indaHash Whitepaper ICO

This is a sponsored post.

Ripple & Earthport Joint Product

Tue, 10/10/2017 - 11:45

Key to the successful rollout of Ripple‘s frictionless distributed ledger protocol to send money globally are Ripple partners, such as CGI, a Canadian IT consulting and systems integration company, or Earthport, a company under U.K. law “enabling its clients to harness the benefits of new payments innovation and better service their customers needs world-wide.”

San Francisco-based Ripple, now serving more than 100 financial institutions around the globe, can’t provide all the system implementations by itself. Ripple offers the product, collaborations with partners such as CGI and Earthport offer the IT specialists and technicians contracted to go to the clients and set it all up for them.

While CGI and Earthport can’t divulge any information about ongoing Ripple pilots, Earthport was the enabler that made Santander U.K. back in 2016 the first bank to use blockchain to make faster and cheaper international payments.

What Earthport can share is just-finalized information on its collaboration with Ripple, as seen below.

Download the full Earthport & Ripple Joint Product PDF here.

Note: Ripple’s native digital token XRP is not used in any capacity related to the Earthport distributed ledger gateway. This just-announced pioneer honor belongs to Cuallix, world’s first financial institution to use a digital asset to reduce liquidity costs.

Ripple & Earthport Joint Product

What China’s Cryptocurrency Trading Ban Means for Global Markets

Sat, 09/16/2017 - 08:10

First off, it’s not a Bitcoin exchanges ban, it’s a cryptocurrency trading ban. All cryptocurrency exchanges in China will stop offering domestic coin trading and coin buying in Chinese yuan. The bigger ones keep on offering over the counter (OTC) trades, many smaller exchanges close down altogether.

How will this impact the global cryptocurrency markets?

Overall, China’s banning of domestic cryptocurrency trading is not a bad thing. Sure liquidity will suffer a bit, but the pseudo-communist party can’t just make Bitcoin & Co. go away. They’ll be back, albeit somewhat regulated, which also is not a bad thing. Or as Tim Draper tweeted:

The deadwood of the Bitcoin ecosystem is leaving now. Our faith in the crypto economy will be well rewarded.

— Tim Draper (@TimDraper) September 15, 2017

The too-much-Wild-West in the market doesn’t serve anyone. Cryptocurrencies today are too prone to manipulation. Certain players have gained manipulative power on Bitcoin especially and therefore on crypto markets in general. If cryptocurrencies want to appeal to a broader market and generate more use cases, then regulation is the next logical step.

And that is exactly what will happen in China. They chose strong-arm tactics for now, but rest assured in the background wheeling and dealing is going on as how the future of cryptocurrencies in China should look like.

Or you think it was just a coincidence that a high-ranking Chinese finance delegation recently met Ripple execs at their San Francisco headquarters? The distinguished visitors knew by a long shot what was brewing back home.

The Chinese miss no chance to make a good deal, but the government wants its own say, so it’s rather a miracle that the largest exchanges in China were allowed to operate without licenses for so long.

But what about that “China factor,” how does the crypto trading prohibition impact the global markets overall?

China’s influence wanes

Most importantly, China is no longer the dominant Bitcoin trader it once was, its influence wanes. A series of government bans — most recently a four-month trading freeze due to security concerns — have seen its share of global trading drop from more than 90 percent in previous years to just over 10 percent today.

Markets like Japan, Korea and the U.S. have emerged to account for the lion’s share of global trading volumes, so the impact of this China ban is not as severe as it initially may seem.

On the contrary, I wouldn’t be surprised if China’s unintended efforts to push the digital currencies underground will most likely increase the value of selected digital coins. Larger over-the-counter (OTC) trades are still allowed, the government just doesn’t want the money in the hands of average people (sic!). Sure the Chinese will find ways to still get hold of cryptocurrencies, and they’re willing to pay a higher price for it, which could reflect positively on global prices.

Less ICOs

Yes, China completely shut down the market of ICOs (initial coin offerings), a market which in many ways degenerated into an easy way to easy riches for issuers while all investors got was a white paper. There are pros and cons to a shutdown, but needless to say that no ban will kill innovation, money and ideas simply will find new ways.

Bitcoin mining affected?

Mining? China’s huge cryptocurrency mining industry will likely be affected, but that’s also not a bad thing considering the huge carbon footprint crypto mining causes. Powering up those mining computers necessitates a phenomenal waste of energy.

China, home to the largest group of Bitcoin miners on the planet, produces a hefty sum of new tokens every day. Without access to domestic Bitcoin exchanges any longer, many of the flourishing mining operations in China may close down or switch to other cryptocurrencies as a central focus.

Should this happen, then Bitcoin production worldwide may change substantially. The overall effect on the price is somewhat hard to predict, yet it’s likely to erode Bitcoin’s dominance altogether and thereby strengthen altcoins.

Yet there is another hardly discussed risk: with Chinese mining supremacy, could China turn Bitcoin into, say, Chinacoin?!

Will other countries follow China?

Overall, doomsday is here should other nations follow China’s suit, yet that is highly unlikely. They all aim to regulate cryptocurrencies. Japan, South Korea, Australia and others are taking measures to legalize digital currencies, not least to strengthen money-laundering rules, but not to eliminate a market that offers more benefits than dangers also to state actors, mainly: increase the efficiency of all sorts of systems.

After a to-be-expected dive global markets shrugged off the China ban and quickly recovered. Yes there might be another slower Bitcoin dive down to the ranges of $2-2.5k, yet markets have become resilient. The main victim of China’s crypto trading ban turns out to be China itself.

Why Cryptocurrencies Are Such a Wild Ride

Mon, 09/11/2017 - 08:00

What takes a month in the stock market, takes a day in the wild world of cryptocurrencies. Here are a few reasons why Bitcoin, Ethereum & Co. offer an especially volatile ride these days. Again, this only seems to be the beginning of the crypto boom, market capitalization is likely to double each year. Yet, be careful out there:

“News” from China is to blame

Last week, the Chinese financial platform Caixin reported that China has banned so-called ICOs — a popular crowdfunding method in the crypto scene. This news was based on government sources and led to panic selling. The exchange rate of the major crypto currencies collapsed.

Yet more China “news”

At the end of last week, the same newspaper reported that China could take far more drastic measures: a fundamental ban on the exchange of cryptographic currencies for the state currency yuan was being considered. Caixin did not provide a credible reference to the source — but the report was still disseminated. Soon after, the Wall Street Journal reported on the coming ban, based on unnamed sources. In the nervous cryptography market, a few rumors are enough to change prices rapidly.

It’s Goldman Sachs’ predictions!

At the beginning of August, Goldman Sachs price analyst Sheba Jafari predicted that the bitcoin price would continue to rise — only to fall to halfway. The predictions were discussed in the crypto scene. All the more so as it was in fact true, at least partially. How low the price of Bitcoin will continue to fall — or how high it will rise — will become clear in the weeks and months ahead. However, it is undisputed that many speculators are guided by the information provided by established analysts.

It’s the fault of speculators!

The lucrative trade in cryptocurrencies has attracted various fortunate knights and gold diggers: they do not necessarily believe in the new technology, but instead believe in a fast return on investment. While investors believe in growth over a longer period of time and accept short-term price fluctuations, the speculator acts nervously. This fuels trends. Be it upwards or downwards.

The Asia factor

Most cryptocurrency trading is done in Asia, with especially China and South Korea driving the markets. They’re gamblers after short-term profits, not HODLers looking for long-term value.

It’s the “weak hands'” fault!

Among the speculators there are many small investors with a narrow budget and little experience. They usually follow traditional trading patterns — which makes them predictable. They become bait for bigger investors, which lead trading bots and sophisticated algorithms into the field.

It’s all about manipulation

In a market that reacts so intensively to rumors, manipulation is the name of the game. When it comes to that kind of money, the spread of rumors is rarely a coincidence. Quite a few speculators therefore believe that any collapse of a token’s price might be caused by a so-called crypto whale, a major investor, in order to gain access to a more favorable price.

General uncertainty as a cause of volatility

In fact, the ownership or trading of cryptocurrencies is anything but a safe investment. Fundamental questions have not yet been answered: when will governments a.k.a. central banks intervene with regulatory requirements and what will they look like? Are the many promises — and many projects are no longer just promises — kept? Can the cryptocurrencies correct known deficiencies (transaction speed, usability, security)? Only when these issues have been clarified will the volatility in the market decrease.

It is only a price correction

On January 1, 2017, a Bitcoin still cost less than US$1,000 (963 to be exact) and Ethereum was below US$8. Today the Bitcoin is valued more than US$4,000 and Ethereum some US$290. The price for a Bitcoin has quadrupled within one year. The price of Ethereum has increased nearly 40 times. With such increases it is abundantly clear that price corrections can also be dramatic.

An ordinary day of crypto trading

Who is still surprised by these crazy market moves? Cryptocurrencies are like religions: there are various currents, many gurus and various believers who fight each other, and almost even wage war. But there is hardly any real, fundamental knowledge about what the hell is truly going on.

You have to be an agnostic to be able to deal with the wild mood swings of cryptocurrencies.

My take of the current volatility? Pure consolidation. Resistance become support levels, and off we rocket to new highs in an overall bullish trend.

The Anti-Cryptocurrency: Masculinity Coin

Sun, 08/27/2017 - 11:40

Only those living under a rock will have missed the increasing number of stories in the media referring to cryptocurrencies. Once the preserve of geeks and those purchasing dubious items from the dark Web, cryptocurrencies are now garnering mainstream attention thanks to the incredible rising price of Bitcoin, which has in turn pulled up the price of other cryptocurrencies.

So there is no better time for those with an interest in tech a.k.a. masculinity to introduce Masculinity Coin (MASC), the cryptocurrency for men.

Much has been said about the insane flood of ICOs (initial coin offerings). Much money will be lost. Some people are sold by a white paper. The cryptocurrency boom is also a boom of the charlatans. But here’s an exception: a digital coin offering that’s mocking the whole testosterone-driven crypto boom.

That’s right: testosterone-driven. Most actors in the industry are male. That’s why some ingenious weirdo created the Masculinity Coin — or the illusion of it:

Masculinity Coin can be considered as a useful thinking exercise, a giant act of trolling, or even a scam: all three of which can — and should — be applied to masculinity itself.

Ingenious, isn’t it. A cryptocurrency for men. A cryptocurrency that’s creating a “masculine coin” to philosophically ridicule the wave of ICOs — or put differently: to highlight the masculine drive behind of it all.

The creator of the coin, Dr. Joseph Gelfer, goes on:

Holding and trading of Masculinity Coin can be interpreted as either a celebration or critique of traditional masculinity.

It gets more practical and at the same time even weirder:

MASC is both a tradable coin and a catalyst for exploring personal identity. Masculinity Coin aims to decentralize masculinity as part of a more sustainable future.

In the longer term, Masculinity Coin has the potential to become a crowdfunding mechanism: batches of Masculinity Coin can be released for sale and the proceeds used to fund specific masculinity-focused research and initiatives.

Why not get your own MASC. The coin is initially pegged to the US dollar (1 MASC = US$1) and will remain as such until it is included on an open exchange or some other secondary market develops…

Says the creator, Dr. Gelfer:

By helping us think about the cost of masculinity, Masculinity Coin highlights the fact that it is one of the greatest costs in existence, yet it appears on few — if any — budgets. There does not even appear to have ever been a single comprehensive quantitative study undertaken of the cost of masculinity, despite decades of gender studies.

Read the whole “white paper” over at Masculinity Research.

Face it: there’s no “correct” interpretation of this coin. Just like masculinity, people can view it however they want.

Personally?

I’d favor a Chicks Coin.