I quit my job and today was my last day. This was made possible in part by Ethereum. I first bought Ether at 10 dollars back in January after hearing an interview with Vitalik. It sounded like a neat techonlogy and I thought maybe in 5 years I would see some returns. I had no idea what was about to happen. Fast forward 9 months and all I can say is it's been a hell of a ride. For my fellow Ethtraders, here a few lessons I've learned - usually the hard way - along the ride so far... 1) You, me, Jamie Dimon, Mike Novogratz, ScienceGuy9489 and even Vitalik have no fricking idea what's gonna happen. He's said so himself. Ethereum could shoot up to 750 tomorrow and then fall to 75 the next day. Or it could lurk around 300 for the next two years before exploding to 3000. Who knows! If you have conviction in the technology invest what you are willing to lose and don't get hung up on the day to day movement. It's just noise. 2) This has been said a million times, but for good reason: Don't invest more than you're willing to lose. For most people, this means no more than 10-20% of your money. This really goes for any asset class, even cash since there's inflation risk - but especially crypto. Ideally, in addition to crypto your money is diversified among a variety of asset classes like fiat, stocks, bonds, gold, etc. 3) Never, ever buy or sell on emotion. As a rule, if you feel like you have to buy or sell right away, then you don't. Sure, you might luck out once or twice doing so, but this is called gambling, not trading. Being impulsive will ultimately screw you over. Our brains are running on millennia old legacy software designed to run away from threats e.g., panic sell, to follow the herd e.g., fomo buy, and in general to survive, not to be rational. When big dollar signs are flashing around, our lizard brains think it's life or death and all reason goes out the window. This is why the vast majority of traders, even professionals, lose money. Of course in a bull market everyone is a genius. So it's easy to kid yourself, but you're probably not a great trader. I know I'm not. I've read books on trading, and I'm not a total idiot, but the fact is I would be sitting on a lot more Ether right now if I had just bought and held rather than getting all fancy. There are a few folks who have zen-like discipline or years of experience, but for the rest of us, short-term trading is a losing game. That said, you can treat a small portion of your holdings as play money that you daytrade. Just don't be surprised if it's gone next week. 4) Don't be a maximalist. God knows I was when I first arrived here. I thought Bitcoin was Myspace and Ethereum was Facebook. I came to realize Bitcoin and Ethereum are not competitors; they are trying to do different things. The world needs both gold and oil. 5) This may sound blasphemous, but don't be absolutist about HODL-ing. For most, I think it's wise to take some profits as it goes up by selling a small to moderate portion of your holdings. Then, if/when it majorly corrects you won't freak out and panic sell. Instead, you can buy some back at a lower price. And if it doesn't correct, you'll still walk away with some profit and peace of mind. Now, if you are very patient and don't need to take profits it's fine to 100% HODL if you are truly able to stick with it. Just be honest with yourself. There are a lot of fair-weather 'hodlers' here who hit the sell button whenever there's a major pullback. It's better, not to mention a hell of a lot easier to sell when it's pumping up than when it's plummeting. 6) It's human nature to never be satisfied. No matter how low you bought, you'll wish you had bought lower or bought more. Or you're gonna kick yourself for not selling at a peak. Remember, most people in this world still have no idea what Ethereum is and even if they do, they do not see its potential like you and me. We're early to the party. 7) Keep your life in balance. This is more important than all the above combined. Sure, it's fine to go through a phase where this consumes your life, but if you spend all day and night staring at red and green on GDAX your health and happiness will suffer. Trust me, I've been there. Trading is already addictive but throw in a 24/7 market that never sleeps with bewildering volatility and you have the perfect recipe for sleep deprivation, anxiety, and manic ups and downs. If you're overly obsessed with checking prices, try either setting ground rules (what I do is that I only check prices between 10am and 10pm) or step away completely for a few days or a week. I've done this a few times and I always return to the markets with renewed energy and perspective. Money is important but once you have enough to get by, it's far less so than friends, family, health, and finding meaningful things to do in life. Remember guys, love over lambos, balance over Binance, and bros over blockfolios.. okay that last one was a stretch.. Finally, it's been said before, but that's because it's the truth: the joy is in the journey. Everything in this world is temporary. Whether Ethereum faces some existential threat and gets wiped out tomorrow or goes on to revolutionize human civilization for centuries to come, someday something else will come along and replace it. Likewise, your stash may someday be worth zero or a million. But either way you will have won the bigger game in town if you enjoyed the ride and learned a few things along the way. Stay safe, stay hungry, and enjoy the ride! Note: Thank you guys for all the replies and encouragement, it means a lot. I had no idea this post would blow up like this. In hindsight, I wish I had titled this post something different and put less emphasis on the quitting job part because that's not what this post is really about. I realized from the responses that the post gives the impression that I am retiring for the rest of my life and intend to never work again. This is definitely not the case! Ethereum simply expedited me getting out of a job situation that I wanted out on anyway and has afforded me some more flexibility and freedom in the short to medium term. While I'm taking a bit of the break from the grind right now, I'll be pursuing work a bit down the line both for financial reasons and because it's part of a meaningful life
JP Morgan's Jamie Dimon is well known for his hatred of Bitcoin and love for the blockchain. It is understandable that he does not really have any clue what Bitcoin was created for or where its inherent value comes from. In a clip from 2017 at the Institute of International Finance seen HERE. Jamie Dimon was cautioning people saying bitcoin will one day hurt them, that bitcoin has no value, that blockchain is amazing and he loved it. Its really odd that a man would have such a hate for bitcoin and it was also clear that he did not understand the cash he values so highly loses 2-3% per year from inflation.
Inflation of currencies
To put that last statement into perspective, the USD loses between 2-3 cents of inherent value each year. This means if you leave money in the bank the last 5 years your 1 USD from 5 years ago is now worth only $.90. Yes that actually is true and how inflation works, but with bitcoin if you had bought a dollar in 2013 at say around $100 BTC your 1% of the BTC today would be worth over 35USD today. This is because Bitcoin's price is based on supply and demand economics and it is deflationary. Deflationary currencies unlike inflationary ones cannot print an unlimited supply which is actually what causes inflation. If you have 100 USD in circulation and print off more that 100USD actually loses value. This is why so many people say things like the Federal Reserve needs to end. It is because the printing of the USD, has since its inception caused the currency to lose approximately 95% of its original value and decoupling from Gold made the inflation more like hyper inflation without anyone noticing. When I was a child the same chocolate bar that now is 2 USD was $0.50 and I am only 33 years old. So in around 25 years the inflation has caused that chocolate bar to increase 4X in price. Now why is this an issue? Lets look at things like minimum wage, what we see is that has not even come close to rising as much as inflation. This actually causes the Rich-Poor gap to increase as it becomes hard and harder for the average citizens to survive. When we look at Jamie Dimon the reason he does not care is because he is the 1% or the 0.01% so to him inflation does not affect anything. People at that level of society can afford inflation, because they have money to invest. 📷
Impact on the average family
Lets look at the normal family and how inflation affects them. First things cost more actually everything costs more: Education, Insurance, Food, Water, Heating, Electricity, Gas, and the list can go on and on. If your income does not match the inflation in society each year you are at a company you actually are making less. The average family used to have more of a nest egg to invest, but with the global financial crisis of 2008 most have not recovered and sorry to say it but the markets look ripe to drop hard again in 2019/2020. If we do have another recession or worse a global financial crisis, we will see people start to flock towards bitcoin as the government will quantitatively ease and print off billions. Doing so will not really help long term and end up with more debt in society and honestly for many the struggle is real, especially those in the United States and we have seen this time and time again.
JPM Coin and Stablecoins
To wrap this all into the JPM coin and stablecoins in general they are a short term solution. For now they let us store our value pegged to the USD, and potentially in JPM coins case let the banks transfer USD to each other. The Inherent problems around fiat currencies is that they are losing value constantly and are backed by nothing but a government. Stablecoins for now let us hold the USD value of our cryptocurrencies and are a good hedge in the volatile market. What we all need to understand here is Fiat currencies like Venezuelan Bolivars, and the Argentine Peso have been far more volatile and hyper inflation has hit them hard. The thing everyone is missing is when this eventually hits the USD and it already is showing it has on an economic scale what will everyone turn to? With deflationary currencies the solution is already here. For example BTC has 21 million coins that will ever make it into circulation at the time of this article there are 17,542,112 BTC with approximately 4M lost forever. As demand for BTC grows as it has in Venezuela, Brazil, Argentina and Turkey it will be a greater store of value. It will actually increase in price as you cannot make more and this is why John McAfee, Tom Lee and Tim Draper amongst others have put such a huge value per coin in the future of $150,000 to 1 Million USD. 📷 We all need to realize is Stablecoins are not the future, they aren't the solution. When the USD does meet its fate of hyper inflation as other currencies have, we will see cryptos like Bitcoin be the the world standard. JPM and USDT won't matter when the USD is similar to Bolivars and Argentine Pesos and this is what the future looks like. We cannot put a time on when this will happen, but when it does it is likely Bitcoin will be seen as a world currency. Bitcoin will back all currencies someday and this is why stablecoins are just a bandaid solution for the short term. Sorry JPM coin, USDT, USDC etc... You are only a for the short term, it is time to see why Deflationary Currencies are the future! Where you can find me! Joel Kovshoff Founder of BlockRake Inc, CEO of Athena Software Systems Twitter: https://twitter.com/JoelKovshoff Facebook page: https://www.facebook.com/AthenaVIP/ LinkedIn: https://www.linkedin.com/in/cryptocurrencyeducato Telegram: @kovshoff
Meet the Venture Capitalist Whose Childhood in Communist Bulgaria Led Her to Embrace Silicon Valley
Dafina Toncheva’s journey to Silicon Valley has been anything but ordinary. She grew up in Bulgaria (like me!) during a turbulent time of change when the country was struggling to emerge from communism. Although her parents were doctors, they each earned only $150 a month. Toncheva spent summers with her grandparents on their tobacco farm where they would pick tobacco leaves and work the land. “As you can imagine, it was just very manual, labor-intensive, and unpleasant work,” she said. But it was on that farm where her grandmother gave her advice that Toncheva would carry with her as she immigrated to the United States, graduated from both Harvard and Stanford, and entered the cutthroat world of venture investing. Her grandmother said, “If you don’t want to make a living with your hands, you need to invest in your brain.” “Her advice ultimately help me grow into an independent, self-sufficient, and self-reliant adult,” Toncheva said. “And those are also the qualities I look for in the founders I back.” Toncheva moved from Bulgaria to the United States in 1998 on a full scholarship to Harvard University. From there, she worked at Microsoft as a software engineer, went on to get an MBA from Stanford, and joined Venrock for her first job in venture capital. She became the first institutional investor in Cloudflare, a San Francisco-based network performance and cybersecurity firm that just went public. Toncheva has spent the last seven years investing in cybersecurity and enterprise software companies at early-stage investment firm U.S. Venture Partners. Last week, she was promoted to general partner. I recently caught up with Toncheva about all of this and more. Below is our conversation. TERM SHEET: When you were 15 years old, you created a peanut business that generated more revenue than the combined income of your parents. Tell me about that. TONCHEVA: I was born in a communist country, but my formative years were spent in a country that was trying to define itself, embrace capitalism, and open up to the world. It was a very turbulent time after [communism fell in] 1989 socially, politically, and economically. There were entrepreneurial-minded people who tried to take advantage of the change by starting businesses. Many people around us were opening small mom-and-pop shops — except for my parents. They were doctors and they felt very limited by their careers. So I remember thinking, “It’s kind of unfair that my parents spent so much of their lives studying, investing in their careers, and being good at what they do, yet we’re still barely making ends meet.” I wanted to help, so I decided to try and start something on my own. What entrepreneurship started to mean to me was courage, expression of freedom, creativity, and growth. It had this very noble, very positive connotation in my mind. So I started buying raw peanuts from local farms, and I began roasting them, packaging them, and selling them through wholesale retailers to restaurant chains. I created a real operation that was powered by me and my younger brother. With that very basic business, I made more money than my parents combined. That was the beginning of my self-sufficiency and independence that my grandmother always talked about. It was both exciting, but also disillusioning in some ways to know that I can make more money than my parents with a lot less education and experience. Why did you decide to immigrate to the United States? One of the things that was so defining for me in my childhood was that my parents valued education, ethics, persistence, and commitment to personal growth. My mother was an ENT (ears, nose, and throat) surgeon, and my father was a neurologist, yet they still barely made ends meet as a family. That was the reality of communism — where everyone was supposed to be equal — that made no sense to me. I knew I didn’t want my life to end up like that. During that time of change in post-communist Bulgaria, many people of my generation saw the U.S. as the symbol of meritocracy and the victory of capitalism. It was a very natural place for me as a teenager who wanted to build a better life to end up, but getting to the U.S. was very difficult. The person who opened my eyes to studying in the States was a young American volunteer who was teaching English in my hometown. Through him, I learned that I could apply to schools in the States, that they give financial aid to foreigners, and that it’s a real possibility. It was a long process, but I ended up contacting over 100 schools. I asked all of them to waive the application fee, and I applied for financial aid at every single school. I was very lucky to get into 12 schools on full scholarship. So I moved here in 1998, started at Harvard, and studied computer science even though I had never owned a computer and was very clearly behind all of my classmates. I thought technology was a growing market, and there was a real need for software engineers. I worked the whole time while I was at Harvard as a teaching assistant, later did internships with Microsoft during the summers, and ultimately, ended up working for Microsoft as a software engineer in 2002. You mentioned capitalism. There’s increasingbacklash against capitalismwith critics saying it needs a major overhaul to better serve society. Given your experience growing up in a country where you witnessed the effects of communism, do you think capitalism needs to be reformed? I firmly believe that we live in the best place in the world, and I say that unapologetically. That being said, I also realize that we have some challenges we need to work through. I love capitalism. It might not be perfect, but it’s the best out there. Having lived through communism and some forms of post-communist socialism, I just can’t imagine that system being a great alternative. Just the thought of communism and socialism depresses me. I envision it as this bleak world devoid of creativity and self-expression with no pursuit of self-improvement. It’s a dead end, it really is. I get scared hearing about people’s fascination with socialism because those are typically people who have never experienced it first-hand. It’s very theoretical for them. It’s just a different feeling for people who have lived through it and experienced it first-hand. I’m sure your parents also have some strong opinions about communism. My dad, especially. He recently told me a story about getting in trouble at school because he wrote “USA” on his bookbag when Bulgaria was still under communism. I’m not surprised at all. In Bulgaria, “USA” stood as a symbol for capitalism and a better life for many, many years. On the other hand, capitalism has left many people disillusioned. The equality gap is wide and widening, and it’s become a vicious, reinforcing cycle. I have to say I do appreciate the discussions going on especially by capitalists like Ray Dalio and Jamie Dimon who talk about ways to create more upward mobility. I think these are good discussions to be had, and it’s a way to evolve capitalism with the times. How did you end up in venture capital? I spent four years at Microsoft as an engineer and a product manager. There, I worked on security products and then decided to go to business school. I attended Stanford, and that’s how I ultimately ended up in venture capital. Toward the end of my second year, I was introduced to Venrock, where I was focused on helping the team source investment opportunities in enterprise software and cybersecurity. While you were at Venrock, you led the first institutional investment round in Cloudflare,which just went public. What did you see in the company and the team that gave you the confidence to back them so early? I invested in Cloudflare exactly 10 years ago. There were three things that stood out to me. They were going after a really painful problem, which was that 50% of traffic is not authentic. It could be malicious. They were going after a customer group which was completely ignored, which was the long tail of the web. They said they would build a service that cleans up traffic to web properties from the long tail of the web — and they would do it for free and find other ways to monetize the business. That was very counterintuitive to how most security companies think. Most security companies would build a product or service and try to sell it to the biggest customers — the ones that have the biggest budgets. It was very contrarian what they were trying to do, but at the same time, it made a lot of sense. The team was thoughtful, persistent, and they had a clear vision around what they wanted to build. I just had a lot of faith in them that they would execute, and I’m really happy with how far they’ve come on this journey. Seeing them go public made me feel validated in my belief in them from Day 1 when they didn’t have anything — they didn’t have a single line of code. For me, it starts with the founders and how clear and persistent they are in their vision. It really is a character judgment that’s very difficult to explain, but it’s one of the most important aspects of early-stage investing. How do you tell if an entrepreneur is a true visionary or just completely delusional? It’s really hard. I think the same person can be both, and probably many of them are both, so it’s very difficult to distinguish between the two. I think the ability to execute is so important, and that’s where the distinction lies. Successful founders stand out in their ability to perform and execute. I also value transparency, honesty, respect for the facts, and self-awareness. I think a grasp for reality and pragmatism has to be there. If those things aren’t there, it’s almost impossible to work collaboratively with the team. What sector or company are you most excited about right now? I work on several areas at USVP focused on the enterprise tech space, but the one I feel most excited about is cybersecurity. I think security problems and security threats evolve faster than issues in almost any other industry. Security threats are aggressive, they evolve really fast, and their mutations are almost infinite. Because of those dynamics, cybersecurity is a very challenging problem to solve. Technologies become obsolete very quickly, and innovation cycles have to be very rapid. Even in the worst of times when budgets get cut for everything else, cybersecurity budgets continue to grow 10% year over year. That makes it a very attractive market for me to continue investing in. What do you think about emerging assets like Bitcoin and other cryptocurrencies? Have you invested in any blockchain companies? We have not made any investments in Bitcoin or blockchain technology. It’s an area I’m following closely and studying, but I don’t feel prepared to make investments in it just yet. There are definitely opportunities in the infrastructure building in that ecosystem to make investments. But I also think as an industry, it’s still in Version 1. There will be more iterations and more opportunities for investors to play in that space in the future. Do you think blockchain technology could have implications for cybersecurity? For sure. I think blockchain as a technology could be quite interesting when applied to security, and also the other way around: Security is a very important consideration for the existence and acceptance for the growth of those assets. Security is a foundational layer and it has to be figured out before [crypto assets] become broadly adopted by the mainstream. It’s been a little more than 10 years since you started in venture capital. How has the ecosystem changed since 2008 and 2009, and how important do you think capital efficiency is in a world of seemingly unlimited funding? It’s incredible how much things have changed in 10 years. When I started, there were only a handful of seed funds, and now, there are hundreds of seed funds on one end of the spectrum. On the other end of the spectrum, the large funds have become even larger. The abundance of capital on the late-stage is just enormous. As a result, we’re seeing inflating late-stage company valuations, companies staying private longer, and massive IPOs by the time they go public. In a time of abundant capital, capital efficiency has become even more important. I think capital efficiency is ultimately freedom. It gives you choices. It gives you options. It gives entrepreneurs the freedom to operate and not be imprisoned by their burn rate. Bigger funds talk a lot about growth at all costs and very rarely mention capital efficiency. I think efficient and responsible growth is way more important in the long-term. We’re starting to see some of that with companies going public that are wildly unprofitable. Public investors don’t seem to agree that the growth at all costs is the most important factor in determining whether a business is successful. Speaking of going public, Snap CEO Evan Spiegelrecentlysaid that going public was a very challenging experience. One specific thing he said that’s made a big difference is being more transparent with investors by providing quarterly guidance. How do you see some of these private companies that are used to keeping things quiet adapt to the more transparent nature of the public markets? Different companies have different boards with different expectations. It’s not as strict or clear cut as it is in the public markets. I have noticed that when a company is doing well and growing rapidly, private investors tend to forgive more. They tend to become less vigilant, while public investors are a lot more strict and much less forgiving. It’s a different mindset, so it really depends on what type of private board a company has been accustomed to. There are private boards that are just as demanding and detail-oriented as public investors. But for some, being public may come as a complete shock when the CEO realizes there’s a whole new way of doing things now. * More Details Here
I work for a Bank in NZ and was asked to write an article on Crypto
Our internal social media site had a couple of negatively-toned articles on Bitcoin and the state of Crypto-Currencies, which as a crypto-enthusiast irked me a little. I posted a comment on one of these articles arguing a more favourable point of view, to which the editors were intrigued and in return asked me to write a follow up article on it, expressing a different side of the debate. It received plenty of interest from staff who'd only ever heard the topic discussed in a negative light, so I thought I'd share it here for you all to read too. Let me know what you think :) IN DEFENCE OF CRYPTO-CURRENCIES Working for a Bank, I can’t help but feel uncomfortable publicly discussing my interest in crypto-currencies; it feels almost counter-productive, as the very ambition of these coins is to rewire the foundations on which the industry I work for is built. That being said, we live in an age now where disruptive technologies are being openly considered, if not welcomed - and so they should, regardless of any ‘threat’ it may pose to an established system or industry. Both crypto-currencies and the underlying ‘Blockchain’ technology they’re built on serve many purposes and can benefit both consumers and corporations alike. The media attention on the former is mostly negative, while the latter is discussed halfheartedly and not as thoroughly as it deserves. THE CRIMINAL ARGUMENT For those who heard about Bitcoin before its recent claim to fame when it crossed that psychological milestone of $10,000 USD in late 2017, you probably first remember its use as a digital payment method for drug dealers on the dark-web site, Silk Road. The main argument against Bitcoin at this time was that it facilitated the exchange of goods and services on the black market, allowing criminals to use an anonymous currency to purchase narcotics, weapons and other illegal products. This has since been debunked, as the Blockchain that Bitcoin is built on is entirely traceable – every single transaction that has ever been made on the decentralised Blockchain ledger, is not only public but immutable; it cannot be deleted or altered. For criminals, this is by no means ideal, and so they have since turned to ‘privacy coins’ such as Monero and Z-Cash. Further to the argument that crypto-currencies are an enabler for criminal activities, I would argue that this is testament to the Blockchain technology that Crypto coins are built on. This technology transcends borders, regulations, financial monopolies and in some cases offers near flawless privacy. Sure, this is attractive to criminals, but historically criminals will always use the most advanced technology to fuel their motives. The internet wasn't widely understood when it first arrived, and the same argument was applied, suggesting that the Web was a haven for pedophiles & drug dealers – now look at us, completely dependent on the very same technology in our day-to-day lives. The point here is that just because a new technology can be utilised by criminals, it doesn’t mean it should be banned outright, as doing so would only stifle innovation, forcing criminals to continue their business and habits through other means. We should celebrate new technology and adapt to it, accepting that any detrimental aspects are part-in-parcel of growth, and can always be overcome through other creative solutions. THE BITCOIN OBSESSION Almost every article written in the mainstream media, is usually headlined with and focused on Bitcoin. This is understandable – Bitcoin was the first crypto-currency, and whose founder is curiously shrouded in mystery. Satoshi Nakamoto (the creator’s pseudonym) also created Blockchain, a very simple technology in theory, but a system of which could revolutionise all other industries, solving complex issues by means that are simple and effective. Satoshi, whoever he or she is, and depending on whether they are even still alive, would now be one of the richest people on the planet. Bitcoin has made unlikely millionaires and even billionaires out of people who wouldn’t have achieved this from attempting to game the traditional finance system. Its price has risen from literally a fraction of a cent when it first become tradable 7 years ago, to an all-time high in late 2017 where it topped $20,000 USD on some exchanges. And while other crypto-currencies are starting to be discussed in more depth, BTC is still the main trading pair for which the purchase of all other crypto-currencies is made possible. With the crypto market having such a dependence upon Bitcoin’s success, it’s only natural that it’s given so much attention. But in 2018, this will all change. Sure, Bitcoin’s price will continue to rise, providing that more fiat money is flowing inward rather than outward - with its limited supply of 21 million coins, the simple law of supply & demand guarantees an increase in value. But with a limited number of human beings to invest, and the possibility that interest in it will eventually decline, this growth will reach a tipping point and eventually stifle, whether that’s 6 months off or 50 years away. We've seen Bitcoin’s crypto market dominance drop from between 80% - 90% over a year ago, to as low as 35% recently. As new money flows into Bitcoin, investors are inevitably exposed to the other crypto-currencies traded on these exchanges, and eventually find themselves delving into the rabbit hole, alongside millions of others, learning about these different coins on sites such as YouTube, Reddit, Facebook groups and other online forums. This influx of money into ‘alt’ coins will continue to surge in 2018, and as a result, the discussion will no longer be so obsessed with the ‘King’, Bitcoin. THE BUBBLE I will be the first to admit that the amount of ‘shut up & take my money!’ investors flooding the market right now is concerning. When your mother expresses interest in cryptos over Christmas dinner, when your normally conservative father asks you to help him invest, or when your hairdresser starts talking about Bitcoin with a tone of authority, you know that the market is beginning to look a little bubble-esque. While I want financial freedom for all, and I also want friends and family to be able to invest in something whose returns are unbeatable, I agree that the current market is based purely on speculation, and this isn’t sustainable. People easily fall into the ‘get rich quick’ trap, but with an understanding of risk and having a patient attitude, many have become and will continue to get very rich from these alternative currencies. I do believe that eventually investor confidence and interest will inevitably plummet, as a result of either a slowing of market returns, persistent negative attention in the media, government attempts to regulate the market, or a combination of all of the above. REGULATIONS & CONSUMER PROTECTION With a recent market cap high of close to $800 Billion USD, it’s clear that we’re now dealing with big money – both institutional, and millions of small investors, innocent and gleeful. This is where big Banks and governments must be very careful of regulations if they are truly concerned about protecting the consumer. With so much market manipulation, both by ‘whales’ (investors with enormous balances) and by trading bots, some form of regulation surely can’t hurt. But if a group of governments came together to ban the trading of crypto-currencies and make crypto exchanges illegal, this would only hurt the consumer. Firstly, crypto-currencies will still be able to be traded outside the normal tracking process of traditional banking, as by nature they are decentralised. This will simply drive the use of the currencies underground even more for those who desire to keep using them. For those who are less educated or are less resistant to risk and change, they will panic sell before the ban, driving the price down and down until a huge portion of investors are now at a loss – all of this completely influenced by the stroke of a pen from the big cats of government, who as a result become responsible for the investment losses of the very citizens they were supposedly trying to protect. MAINSTREAM MEDIA BIAS In the above hypothetical scenario, the media will post headlines… “Bitcoin now valueless after govt regulations” and social media commenters will laugh, bragging that they saw this coming all along. This would further uproot investor confidence, and next thing we would see a massive crash that was entirely avoidable had these bullying tactics and unnecessary bans not been imposed. Mainstream media post an article every single time there’s a dip in the market, as if to prove a point, but rarely discuss the incredibly impressive returns that override these dips each time. They will call ‘Breaking News’, stating that South Korea, for example, is drafting legislation to ban crypto-currencies when this was incorrect as a result of a mistranslation, but refuse to exercise journalistic integrity by editing and correcting their articles. Governments, Banks and the media need to take a more mature approach to crypto-currencies - accept that they’re here, that they come with risks, but also exhibit technology that they themselves can benefit from. Acknowledge the legitimate concerns of investors losing money from market volatility, but understand the need to tread carefully when considering how to resolve this issue. SUMMARY Let’s move away from the Bitcoin-bashing articles that scoff at investors who’re falling for the supposed ‘bubble’ that they’ve been saying is going to pop for 5 years now. Let’s stop using the issue of Bitcoin mining taking up so much energy as a reason for it being banned, but rather start discussing the other cryptos such as Ethereum that are moving towards, or have already implemented a ‘Proof of Stake’ validation system that requires little to no energy at all. Let’s stop knocking Bitcoin itself as it struggles with huge network congestion, high fees and slow transaction times, but rather explore the other coins that have already solved this problem, and celebrate ones that are solving real-world issues such as the speed and cost with international SWIFT payments, or providing a viable alternative to the national currencies in Venezuela & Zimbabwe, which have been plagued with unhealthy inflation. Ultimately, we should start to focus on the positive side of Crypto & Blockchain tech; it’s unique, offers financial freedom to those in countries without it, and it showcases the most innovative, revolutionary disruption to the status-quo not seen since the inception of the internet. This technology is new and it’s not perfect, but can we at least try to build on it and see where it takes us? Can we work to see how it could be utilised to benefit our institutions, as opposed to outright dismissing it just because the majority of us don’t yet understand it? Crypto-currencies and Blockchain technology are here to stay in one form or another. Jamie Dimon, CEO of JP Morgan-Chase initially called those who invested in Bitcoin ‘stupid’, and then later (suspiciously) changed his tune, admitting he regretted making this comment. Now his Bank is experimenting with Blockchain technology. Mark Cuban, multi-Billionaire investor who previously laughed at Bitcoin, now recommends that people hold a small percentage of it to maintain a well-diversified investment portfolio, and is now actively investing himself in ‘ICO’ crypto-currency crowd sales. Mark Zuckerberg, one of the wealthiest people on the planet publicly shared his favourable thoughts on crypto-currencies, and his interest in Blockchain technology to his 2 Billion Facebook users. Knowing now that it’s not just you’re run-of-the-mill geek in his mum’s basement that’s speaking out in favour of crypto, perhaps it’s time to join the conversation, alongside the many influential people in the world, just some of whom are listed above. So one day when your grandkids come home from History class asking what it was like to live through and experience the Blockchain/Crypto revolution, will you excitedly tell them how you embraced and benefited from it during its infancy, or regretfully explain that you were late to the party because of your apathy and disinterest?
Bitcoin is an ongoing insult to market economies everywhere. It shouldn’t exist ― indeed, in important respects, bitcoin doesn’t really exist at all ― but a cabal of techno-hucksters have convinced gamblers and the gullible to quite literally buy into the idea that it does. Bitcoins, which began the year trading below $1,000, have skyrocketed to well over $16,000 since the late summer in a frenzy of pure speculative madness. “We’ve seen mortgages being taken out to buy bitcoin,” Alabama Securities Commission director Joseph Borg told CNBC on Monday. “People do credit cards, equity lines” ― taking on household debt for a wild gamble at getting rich quick. And it’s going to get crazier before the inevitable crash. Federal regulators at the Commodity Futures Trading Commission recently allowed the Chicago Board Options Exchange and the Chicago Mercantile Exchange to begin trading bitcoin futures. The CBOE’s market opened on Sunday, and in their first day of trading, bitcoin futures accounted for about half the total trading activity on the entire exchange... Bitcoin enthusiasts refer to it as a “cryptocurrency,” a word that has no real meaning other than “things like bitcoin.” In practice, bitcoin is something that people can buy and sell, but that has no inherent use or value itself. It’s supposed to mimic the function of money. Nobody believes there is $20 worth of paper and ink in a $20 bill, but we agree to let those green things with Andrew Jackson’s face on them serve as a store of value and a medium of exchange. Unlike actual money, however, bitcoin isn’t dependent on a government for its value ― it’s worth whatever people will buy and sell it for. This has a certain appeal among people who long to purge government from every corner of the market and realize the libertarian millennium on Earth. But it also underscores the conceptual limits of this peculiar philosophy. Because money stripped of political legitimacy is no longer money ― it’s a commodity. You can’t have modern markets without money and there can’t be money without government. Gold coins without a government to back them up are just pieces of gold. And bitcoin isn’t even a commodity. A commodity is a physical good that people can trade, moving it through space and time. Bitcoins are ethereal digital data points. At the moment, people have bid up the value of those data points to preposterous levels. This is not because bitcoin performance has vastly improved over the course of the year. It is because speculators are guessing that other speculators will continue to be willing to pay higher and higher prices for no real reason. Bitcoin, then, is money without political legitimacy, a commodity with no physical being, and an asset bubble without an asset. It is stupidity and confusion, marketed to speculators and fools. “It’s just not a real thing,” said JPMorgan CEO Jamie Dimon in September. He also called bitcoin “a fraud.” The decision by the Commodity Futures Trading Commission to permit bitcoin derivatives is an even greater insult to commerce than bitcoin itself. Futures allow people to speculate on the future price of a commodity. This has plenty of legitimate uses ― farmers might want to lock in a future price for their harvests, airlines might want to guarantee fuel costs, etc. But there is no reason why people should need to lock in a future price on bitcoins. The sole function of a bitcoin futures market is to expand the scale of speculation ― the same way that mortgage-backed securities and credit default swaps enabled trillions of dollars worth of speculation on subprime mortgages. In a sign of just how unhinged this project really is, a trade association representing the world’s biggest banks wrote an open letter criticizing futures commission Chairman J. Christopher Giancarlo for greenlighting the bitcoin derivatives markets without a thorough review. Bank lobbyists do not typically advocate for tighter government oversight. But in this situation, they’re afraid their companies will get stuck holding the bag for fraudulent or absurd bets when the price of bitcoins inevitably collapses. And due to the way trades are executed and guaranteed over commodity exchanges, the banks almost certainly will. Which brings us to the tax bill Republicans hope to soon pass. To the extent that its defenders have attempted to offer any justification for this multitrillion-dollar package of goodies for the wealthy, they’ve suggested it will spur investment in the economy, which will eventually trickle down into higher wages. Corporate executives, for their part, have made quite clear that if they receive the $1.5 trillion tax cut the GOP has set for them, they won’t invest it in new equipment or research, but simply pay out more to their shareholders. But to some conservative economists, including George Mason University professor and Bloomberg columnist Tyler Cowen, even this isn’t cause for alarm. “What if those investors take the money and put it in a venture capital fund or invest it in some other manner? The whole point of capital markets is to recycle resources into the most profitable new opportunities,” Cowen wrote in November. What’s then to stop rich tax-cut recipients from plowing the money into bitcoin? Ultimately, bitcoin is just a hyper-distilled example of what is going wrong in the American economy. Corporations are currently sitting on $2 trillion in cash. The stock market is enjoying record highs. But none of these profits are doing much for ordinary families. The median household income has barely budged over the past decade. If we put more money into the financial system without directly improving the prospects for working people, there won’t be any productive place for that money to go. It will end up in purely speculative projects that could destabilize the financial system. Under conditions of extreme economic inequality, big tax cuts for the rich aren’t just unfair; they’re dangerous. Maybe bitcoin is only a silly aberration. But I wouldn’t stake $1.5 trillion on it.
Best of the best Q&A Stephens and Shingos. Vision, Deeper idea and philosophy
Welcome stephen corliss, [21.08.17 18:05] Hello Everyone! First chance I've had to say hello to our great supporters! This is much more fun and exciting than anything I've done at Blackrock, Merrill, UBS, or any other firm in the old fin industry model!! Exciting times and we promise you we are going to deliver a platform that will leave you in awe! You folks are awesome and all the motivation we need. stephen corliss, [21.08.17 18:20] [In reply to Liam: Stephen, what was the number one thing that interested you in this project?] Liam, Tough but great question. It was initially the big vision that caught my eye as most innovators I know are afraid of big visions, especially ones that seem complex. However, what was equally appealing to me was the genuine commitment to the community and consumers. Too many businesses are not sincere about what they want for their users, this team is fully committed and genuine in its desire to deliver truly awesome products and capabilities for our users. I'm all in for just these reasons.
stephen corliss, [14.11.17 18:57] What is Bitquence? Bitquence is a cross-chain connector allowing the benefits of multi-chains to be leveraged by consumers without requiring interpretation of specific complex infrastructures. However, rather than adopt a broad industry view, Bitquence has opted to rather focus on Financial Services broadly to create a dynamic eco-system that dynamically connects all stakeholders digitally. As we all know financial services is at the core of all industries, which means our business / enterprise customers are not just financial industry participants but rather all industries having capital flows whether from consumers or corporate operating expenditures. Thus, NEO and Bitquence are both building eco-systems where Bitquence can / will add value to NEO and others like them. For what will the token be used and what will make it very valuable in the future, other than paying the predictors? Shingo: It is the fuel for Bedrock - our scalable API infrastructure. We plan on partnering with a lot of traditional financial firms who want to put various services on the blockchain and every single one that uses our platform will need the token stephen corliss, [26.10.17 18:48] ECO-SYSTEM !! Let me say this, if you wanted to redesign the global financial system and overall experience for all stakeholders, how would you do this? You begin by building a new eco-system. That is step #1 of many that will follow. Read my words very carefully as some hints are there... Greg: Are you planning to make new Crypto Wall Street? Or rather facebook style banking system with top secure assets and opportinities to grow for everyone joining your platform? 😃 New eco-system sounds huge! Stephen: Now Gregg is on to something! Blend some of that together and maybe your getting warmer! stephen corliss, [26.10.17 18:31] [In reply to August 888: What is the innovation that the BQX team has done that Suppo is talking about?] All, I think what is being consistently overlooked is whenever Shingo or I refer to the fact that we are building an “eco-system”! Thus, Bitquence will sit higher in the crypto stack where we are a gateway to all of crypto and interpret multi-languages (eg. cross chain) to deliver unification allowing Bitquence to streamline the entire crypto space. This is very important for all of us to really understand. Powerful stuff! stephen corliss, [26.10.17 19:25] Remember, we are building an investment eco-system! Notice the absence of any mention of a sub-industry or asset class. A model like this must be asset class agnostic! This provides a natural hedge against any particular asset bubble allowing us to intelligently mitigate risks. stephen corliss, [24.10.17 14:43] Trust me everyone, if I were you I would be paying close attention to Bitquence now. Things are moving at such a fast pace and I really want all of us to move down this road together. I’m telling you, I believe we will all be beaming with pride when we look back at Bitquence 3 years from now and say “Damn, that was so much fun! I cannot believe I played a role in building a new financial eco-system!” You all know us by now, yeah we’re not very flashy and we are a bit nerdy but we are always genuine and I hope a bit cool... (okay! I know I too old to be cool!) Our comments here are never hype my friends, it is just an extreme level of excitement and passion as we love this project. Honestly, I am going to ask the team to be sure to keep the first 4,000 community members contact info so we can all meet up in some awesome location in 5 years to have the biggest bash ever to celebrate what we’ve done, TOGETHER! stephen corliss, [24.10.17 15:12] All, As we have a lot of new people joining our community almost by the second, I want to spend just a few minutes explaining what Bitquence is and what it is not about. I know this industry is confusing, complex and even riddled with both scammers and folks/firms who naively make big promises that they could never deliver on. As you come to our community some of you will be skeptical about Bitquence because of previous bad experiences you may have had other places. What I want everyone to know is that Bitquence is a very different project with a very different mission. So, as you enter this community and see our excitement, I hope you can put aside all of those past experiences that make you skeptical and allow yourself to experience something that only comes once in a lifetime. I assure you, you won’t regret it! Let me leave you with this story. As you know, I had a long career in Global Financial Services. Almost everyday of my career, someone questioned my enthusiasm for my job and field as they just couldn’t allow themselves to believe that the passion I have is genuine. Most days, people just looked at me crossed-eyed because I didn’t fit the mold as your typical greedy arrogant Wall Streeter. To me that was something I took pride in as it showed me that I never forgot what financial services is suppose to be about, which is helping people live a better life. So, I’m a little guy, I will fight tooth and nail for the little guy and the entire Bitquence Team and I will never ever give up on our dream of a new healthier financial system that works for society rather than against it. No Fud, No Hype, No Pump and Dump, simply, No Bullshit. Now lets have some freaking fun! stephen corliss, [11.10.17 23:57] Let me share a story from this week. As is par for the course for us nowadays, I was in a meeting with a large global investment house earlier this week. When they heard the plan, they almost shit a brick.. Sorry for the crudeness! Why would a global investment house panic and sit up and take notice to little ole Bitquence?! Because delivering a new eco-system isn’t impossible as long as you have the vision, plan and the gumption to deliver. stephen corliss, [08.10.17 17:24] So, what is Bitquence? Bitquence is building a new investment eco-system for consumers with both short and longterm investment profiles. Investment and payments are 2 very different things. Yes, Bitquence is adding in universal payment solutions but this is something we grow into once the investment eco-system is achieved. What benefits does an investment eco-system deliver? It completely dismantles the system we have all come to dislike by maximizing consumers leverage in the standard c2b model. Meaning, today consumers assets give them very little leverage over service providers as the existing structure advantages businesses not consumers. Our eco-system fixes this and transfers the full value of assets away from service providers back to consumers, which will drive down fees, open access, increase additional yield generation capabilities that customarily are enjoyed by service providers. stephen corliss, [08.10.17 22:45] Okay, cut me some slack though don’t want to reveal all. When I say we are building the new financial eco-system, I don’t say this lightly. I know others make claims like this that are BS, but anyone who knows me by now should know we would never make such a reckless claim without a clever well thought out plan. So, how can you make such a claim if you don’t make new products available? You can’t! Thus, we will turn the current eco-system on its head by delivering unprecedented capabilities direct to consumer. Sorry, I warned everyone about having to remain vague so I hope you can give me a pass in the name of maintaining competitive advantage... stephen corliss, [20.09.17 04:02] [In reply to EstimatedProphet: I can't even imagine the growth if someone would see an analyst on Bloomberg taking about Bitcoin hitting new highs, and the next thing they see is an advertisement for Coinbase. Albeit it comes with a heft cost.] Right but here is what we cannot overlook. Traditional assets will undergo a massive transformation from their existing methods to entirely those of the digital kind. This is inevitable. Thus, crypto methods will become the standard except that current crypto methods will be forced into more traditional standards governed by regulations and laws. Planning for this will be essential and for those who get it right, winning is almost certain. Indulge me for a second. What most people aren't aware of is that retail investment isn't a driver of change. Change comes as a result of Institutional Investors who demand better services, lower risks and fees, better performance and increased transparency. This is what will drive traditional assets to move on to the blockchain. When this occurs, it will result in a massive transition of all retirement assets (defined benefit and defined contribution) from existing protocols to those involving the blockchain. If your strategy and vision accounts for these changes, then most others in our space will be left playing catchup while we sprint ahead. stephen corliss, [20.09.17 05:44] [In reply to EstimatedProphet: Do you feel you can get institutional investors on boad with BQX?] I absolutely believe we can get institutional investors on board. Although there are many ways we can win them over, the simplest way is by delivering them solutions to two main problems the financial industry has never and will never solve, and that is transparency and cost efficiencies. Transparency may seem like a simple fix but it is in fact multifaceted and complex. although this will be a longterm initiative occurring years down the road, it will require a clear upfront strategy and roadmap to ensure success. stephen corliss, [20.09.17 03:31] If you haven't noticed, our future vision involves both crypto and traditional fiat asset functionalities. I think this plays directly into the target audience you mention as high value wealth and investment management solutions are non-existent for > 90% of the global population. This allows a targeted campaign to capture the attention of non-millennials. Crypto is the primary focus! However, on the point of other teams chasing tokenized asset ideas, I would suggest to you that none of them will transform the marketplace but rather provide a digitized option. That isn't sufficient enough as it doesn't solve the fundamental problems associated with traditional asset and wealth creation/management. Reinventing the traditional model requires much more than digitization. We see the solution, not sure anyone else does. stephen corliss, [02.09.17 03:38] [In reply to Zev Rector: I am reading it now, I still struggle to understand how youre not a Money manager fund] Hello Zev, Thank you for the great questions. We are not a money manager for several reasons some of which is our secret sauce some I'm happy to share. Being an advisor or money manager is often decided by ones level of discretion, decision making, compensation, etc. None of those apply here due to our strategic model / design both from a business and technical perspective. There are numerous layers here that require much more space than is available here. stephen corliss, [23.08.17 01:59] The great thing about what we're doing is that our platform is "class" agnostic. Mass adoption of crypto is in reach. stephen corliss, [23.10.17 16:24] Thanks all! The only thing I can promise is that we are going to build you a powerful financial platform to manage all your assets!
Deeper Idea and Philosophy
stephen corliss, [22.10.17 17:52] When you think about Bitquence we all need to be thinking about what building an “eco-system” really means. Personally, as you all know, I believe the current model in both crypto and traditional financial services is broken. This belief is not an instinct or feeling but yet something layered in facts. The questions I always ask myself are things like: What does income and wealth inequality mean to you? What does the unbanked and under banked mean? what does lack of access mean? Why is it that those with assets get access to critical products and services and those “truly” needing assistance get little to nothing? Is this model permanent or is there a viable alternative? How do we help the 90% rather than just the worlds top 10%? So, when I think about a new eco-system I think about all of these things and removing the artificial man made obstacles that create massive inequities. When I think about a new eco-system I think about permanently connecting all the dots and players all in one dynamic place. Bedrock is thus just one of the enablers for a new paradigm in global financial services. stephen corliss, [15.11.17 02:58] The issue that all of us often don’t notice is that someone stole our power and influence. If you really want change, you need to control those in positions of strength. How do you do that? You vote. If you are not aware of something dubbed “fiduciary capitalism”, I think it would be worth a few minutes of your time to review. However, the power of fiduciaries need not sit in the hands of corrupted or conflicted institutions but rather in all of us. Wait until you see what we have in store here! This is what wakes we up with excitement every day... Shingo, [15.11.17 02:46] [In reply to EstimatedProphet: Thanks for sharing that Stephen I’ll look into it. I’m hoping that Crypto will actually allow me to one day retire.] Every person should have the right to retire at a reasonable age. Many people aren't because of a highly unequal wealth distribution. A common misconception I think a lot of people have is that the wealth pyramid is an inevitable consequence of capitalism, but I would argue that TRUE capitalism (of which cryptocurrencies are essentially highly distilled capitalism) and TRUE equality results in a far fairer distribution It's all about giving people control of their wealth and making their wealth work for them instead of the people at the top Eventually I believe we will live in a tokenized economy where everything is liquid into everything else Why not buy your coffee in the morning with some excess power you generated with your solar panels? Or why not earn some money lending your google stock to someone else? The real democracy is in money. Take back control of money, take back control of the world :) stephen corliss, [15.11.17 03:09] Capitalism in its current form doesn’t work for a large share of the population and creates extreme volatilities that negatively impact all of those without the means to safely wait out the storms. We all need to reinvent this for current and future generations. It really isn’t impossible if we can de-program ourselves. stephen corliss, [20.10.17 01:42] I just want to remind everyone that our intentions are to solve and improve on finance and investing generally. When we think about inclusiveness & income and wealth inequality, we cannot rule out an investment class that in some way shape or form impacts all of society. So, although I believe crypto is the future, lets all do what we can to deliver a new hybrid eco-system that can thrive across all asset classes. Change is coming, but lets be sure we don’t leave anyone behind. stephen corliss, [22.10.17 14:53] [In reply to John McDoy: You're here for philosophical reasons, right?] At its base, yes. It starts with the desire to help others, which in finance means you must deliver transformational change by reinventing the eco-system and model stephen corliss, [02.10.17 01:14] Time to friggen up the ante! Turn up the heat and kick it up a notch...World domination. People powered means something very specific and special to me, "wealth and financial freedom is everyone's right and there is no room for those who only care about themselves especially in the socially driven financial system we aim to create" The old way is dangerous and I won't rest until it is demolished. Not easy but that is what we're committed to doing. stephen corliss, [13.09.17 13:08] [In reply to Dr Dxt: That is what I love about crypto gives everything equal opportunity.......Unlike the investment sector only for the select few or the so called Elites] Financial sector is riddled with too much selfish nonsense. If you are in the financial sector and don't wake up every day saying what will I do for the little guy/gal, then you don't belong. Unfortunately, this is not how most fin industry people begin their day. Not a good sign. I met a handful of some great people over the years who share these views but not nearly as many as anyone of us would want or expect. That's okay though, as this is a key motivator and differentiator for us. stephen corliss, [15.09.17 05:41] [In reply to Rawls: To the contrary, it sounds really important. Your experience is not only great for Bitquence, but for all of us that want to learn. You are foreseeing things that others don't (at least I haven't read this focus in other places and I try to read about this a lot)] Thank you. Yes, unfortunately there is too much fluff and not enough straight talking. Take Jamie Dimon yesterday, although he knows our industry solves problems they never could, instinct doesn't allow him to speak honestly. This is the problem. Personally, I would much rather live in a world where how much money you have doesn't decide whether you can live with dignity. In my view medical care and access to financial services are a god given right as you (children or adults) cannot live without either. I'm not a liberal bleeding heart but lets just keep things simple and honest. Today we live in a world where the cost of financial services is cheaper for the 1% and 10x more expensive for those without wealth. So, if I bring home $1,000 a month to feed, clothe and house my family, it is highly likely that I will give up 10% of my take home pay or $100 to pay someone to cash my check because I don't have a bank account. In what universe is that right?! None. So, enter the blockchain, and other innovations, along with a collective spirit that is frustrated with the old ways who have the will to drive change. Now that's exciting! stephen corliss, [18.09.17 21:09] [In reply to: How do you guys think the crypto market will react to the up coming stock market crash? It a over valued and it's waiting for a world event to pop it. Possibly if this north Korean crisis escalate further ?] Crashes are typically triggered by systemic issues rather than overvaluations. Without some sort of credit or debt crisis or other systemic problem, overvaluations are simply dealt with by more managed series of 10% pullbacks rather than crashes. If you believe overvalued markets are the result of systemic disinflation then maybe that could be a trigger. War or conflict typically would involve a short term risk-off reaction unless it involves some sort of global contagion. Depending on the severity of either scenario, an event would most likely cause an upswing in crypto but it won't change its longterm fundamentals. If its too severe, everything will suffer. stephen corliss, [04.11.17 06:17] [In reply to Hugh: Agree Stephen and im a holder and believer in this project it just grates on me when an individual with such influence can treat people like this.] I really appreciate your feelings. I just want to keep us focused on what matters. We all witness so much bs every day in our politics, life and big business and if we can just remain focused on the mission maybe we can start to move the needle towards something a bit more positive for society. We are all stewards of the Bitquence mission but the vision can only be achieved if we keep our eyes on the prize. Shingo, [04.11.17 17:33] I think blockchain has the ability for us to rethink the global financial system from the ground up. Financial firms tend to do a lot of abstraction: securities, funds, etc. in order to make the system more efficient. The entire system we have now can be made more transparent, ethical and accessible through blockchain. That is really the holy grail of blockchain technology stephen corliss, [13.11.17 00:50] [In reply to Greg: I just hope future in crypto will not be driven only by greed because it's not what we're fighting for] Couldn’t have said it any better myself. It certainly seems as though specific elements of our industry, and even those at its core, have forgotten what the mission is all about. This is not about getting ones self ahead but rather society as a whole.
Bitcoin heading over $10,000 in six to 10 months, former Fortress hedge fund manager says
Although he says digital currencies like bitcoin show signs of forming a bubble, former hedge fund manager Michael Novogratz is going all-in. The former Fortress Investment Group manager says he's been investing in bitcoin and its underlying blockchain technology for a while and sees bitcoin's price rising to over $10,000 in the next six to 10 months, largely because of heavy investor interest. Bitcoin was up 2.1 percent on Tuesday, to $4874.15 as of 5 p.m. ET, according to CoinDesk, and has surged in value this year. "I can hear the herd coming," he said during an appearance after market hours Tuesday on CNBC's "Fast Money." He likened bitcoin to digital gold. Novogratz is starting a $500 million fund to invest in cryptocurrencies, initial coin offerings and related companies. He put $150 million of his own money into Galaxy Digital Assets Fund and plans to raise the rest from outside sources by January, mainly from wealthy individuals and families and fellow hedge fund managers. He told Bloomberg Television last month that digital currency like bitcoin is "going to the be the largest bubble of our lifetimes." JPMorgan Chase CEO Jamie Dimon last month called bitcoin a "fraud" and said he would fire anyone at his bank for trading it. But whether bitcoin lasts or eventually gets replaced by the next new thing, the underlying blockchain technology is probably here to stay, he said. "Blockchain will change the way we live," he said. "This is not going away." https://www.facebook.com/BitQuotex/posts/1472252146184604
[uncensored-r/Bitcoin] What is being done about high fees?
The following post by btceacc is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/7999l8 The original post's content was as follows:
I've been following this big political ship-storm that's been happening with the split. Personally I am reconsidering my investment position based on the fact that I am starting to understand the issue with fees. I was wanting to move some funds around in order to secure them, however I realized that this is going to cost me upwards of $80 to do and could take many hours to complete. With all this arguing going on, I cant help but feel that BTC is going to have lost some major momentum in terms of adoption for anything other than a store of value. In the end, this will also be eroded by the fact that no one will want to store value with something they can't fluidly move around. This was one of the advantages of Bitcoin. I'm wondering whether other real competitors are going to take over while these politics are being played. The real "bitcoin" is ultimately going to be a cryptocurrency that people can transact with. They will then naturally use it as a store of value. To this end, how long is it really going to be before we see a reduction in Bitcoin fees such that we can transact cheaply and efficiently again? If we're saying a year, then I'd say a lot of ground is going to be lost. Please, I am not trying to stir emotions here. I am just trying to understand where we will realistically be in the next 12 months. EDIT: Thank you all so far for the level-headed discussion. One thing I would like to say that so far, is that many have argued in support of fees. This seems contrary to me. Imagine Jamie Dimon arguing how you should love the fees he charges because they feed the families of hard-working investment bankers. I fully support the Bitcoin ecosystem and the brilliance that incorporates fees to sustain the ecosystem. That said, this is just an amazing technical feat if it can't also compete in real-world transactions. EDIT #2: Thanks again to all who tried to answer my question. As a summary, here is some of the information that was relevant to me. I have distilled it and expressed it in layman's terms (because not everyone cares about the intricate technical details): What is being done to improve fees? (Thanks to u/StopAndDecrypt) There is a feature that is to be implemented (AggregateSignatures) that should bundle transactions and also enable larger sets of transactions to go though (block size increase, compression, etc). This should theoretically cause a decrease the fees but it's not clear (from what I understand) of what will actually occur. The development is complete but no go-live scheduled (?). What improvements are in the development road map? Something called the "lightning network". No one gave any detail on what this actually does, so there's no TL;DR for you. Start Googling ;) Is mining centralization going to be dealt with? No one gave any suggestion this was on the road-map. There were many other responses which unfortunately lost track of the essence of my post, so here is a further clarification of what sort of responses I was hoping to solicit: Bitcoin is a decentralized, uncensored, peer-to-peer ledger and never was meant to compete with banks/financial infrastructure Yes. In circa 2010, a brilliant person (or group of persons) built an absolutely amazing framework that facilitated a trustless medium of exchange. People were amazed that for the first time, they could allow people to participate in open financial exchange without restriction or borders. Fast forward 7 years and there are now many competing financial frameworks all touting the same thing. Where does Bitcoin fit in and will it be relevant in the next 7 years to come? No one of course knows for sure, but you can at least have an educated guess based on the work being done right now. Fees are what they are, accept them Fees are an economic reality but aren't nice. High fees just aren't nice. If you ask people to go elsewhere to transact cheaply, IMO you're ignoring the other economic reality that transactions are the life-blood of the system. What is being done to encourage more people to transact more with Bitcoin? Stop comparing Bitcoin to banks I have read many top-rated Bitcoin threads that say how the banks have something to fear from this disruptive technology. To have something to really fear, they need to have everyday people doing everyday transactions outside of the banking framework. I was hoping to learn more about why people think Jamie Dimon is shivering in his boots. Go use a different crypto-currency that suits you. I don't want to if I can help it. Bitcoin has conquered many things to get where it is. But of course technology is always evolving and no technology company ever should become complacent due to having the top-named brand. How does Bitcoin plan to stay ahead of the pack? Transactions don't need to be fast... In a world where time is money, transactions absolutely do need to be quick. We're in a world right now where having financial systems co-located can make big dollar differences. While I understand that this isn't where Bitcoin is at right now (and perhaps not even it's target market), there must be a plan to make things more efficient? As block-chain technology inevitably evolves, is there a next generation of Bitcoin to look forward to? Or is the future surety of the system based on everyone just squirrelling away their wealth and seeing deflation naturally takes its course to finally give HODL'ers their long-awaited investment reward (like that sea-side mansion they dreamed of 7-years earlier)?
Bitcoin heading over $10,000 in six to 10 months, former Fortress hedge fund manager says
This is the best tl;dr I could make, original reduced by 22%. (I'm a bot)
Although he says digital currencies like bitcoin show signs of forming a bubble, former hedge fund manager Michael Novogratz is going all-in. The former Fortress Investment Group manager says he's been investing in bitcoin and its underlying blockchain technology for a while and sees bitcoin's price rising to over $10,000 in the next six to 10 months, largely because of heavy investor interest. "I can hear the herd coming," he said during an appearance after market hours Tuesday on CNBC's "Fast Money." He likened bitcoin to digital gold. He put $150 million of his own money into Galaxy Digital Assets Fund and plans to raise the rest from outside sources by January, mainly from wealthy individuals and families and fellow hedge fund managers. He told Bloomberg Television last month that digital currency like bitcoin is "Going to the be the largest bubble of our lifetimes." JPMorgan Chase CEO Jamie Dimon last month called bitcoin a "Fraud" and said he would fire anyone at his bank for trading it. Whether bitcoin lasts or eventually gets replaced by the next new thing, the underlying blockchain technology is probably here to stay, he said.
Jamie Dimon, chair of JP Morgan Chase, was once again asked about his thoughts on bitcoin. In a wide-ranging interview on FOX Business, Mr. Dimon was given a few of his notable quotes back to him ... JP Morgan chief executive Jamie Dimon has backtracked on criticism of Bitcoin, saying he regrets calling the cryptocurrency a "fraud". The Wall Street boss was one of the most high-profile critics ... Bitcoin is not doing so well right now. The cryptocurrency has fallen more than 11 percent since CEO of JPMorgan, Jamie Dimon, called Bitcoin "a fraud." Yet he's not the only one wary of the new wave of currency. John Spallanzani, chief macro strategist at GFI Group, said the currency is hurting right for because the UK financial regulator FCA sounded the alarm over initial coin offerings, and ... Dimon still maintains that the emphasis in the financial sector should remain on the blockchain, rather than Bitcoin which he maintains, he has unintentionally become the spokesperson against, arguing, “I didn’t want to be the spokesperson against Bitcoin. I just don’t give a ….., that’s the point…Blockchain is real, it’s a technology, but Bitcoin isn’t the same as a fiat ... While the rest of the world is racing to invest in cryptocurrencies such as Bitcoin and Ethereum, the boss of America’s largest bank believes that Bitcoin is a scam that is doomed to fail. Jamie Dimon, the CEO of JP Morgan, shared his thoughts on cryptocurrency during a conference in New York, revealing that he would fire any of his workers found out to be trading or investing in Bitcoin.
You can't make this stuff up. Just days after Jamie Dimon proclaimed that "Bitcoin is a Fraud!" and he would "Fire any trader that worked for him that bought... Jamie Dimon, the CEO of JPMorgan Chase, had some harsh words on Bitcoin and Cryptocurrency, essentially calling it a fraud. But should you even care that the CEO of a $320 Billion Bank has ... This video is unavailable. Watch Queue Queue. Watch Queue Queue JPMorgan CEO Jamie Dimon breaks down his view on bitcoin while speaking Friday at the Institute of International Finance. » Subscribe to CNBC: http://cnb.cx/... J.P. Morgan CEO Jamie Dimon said that governments will "close [bitcoin] down." In the U.S., thankfully, that can never happen because bitcoin is protected by...