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What is Bitcoin?

Bitcoin is a digital crypto-currency with no single point of failure due to its decentralized peer-to-peer architecture. The source code is publicly available and changes to the reference Bitcoin client are made via concensus within the community. Advantages of Bitcoin include irreversible transactions (i.e. no possibility of chargebacks as with credit cards), pseudo-anonymous, limited and fixed inflation, near instant transactions, multi-platform, no double-spend and little to no barriers to entry and more. It was created by an anonymous person known as Satoshi Nakamoto. Find out more at WeUseCoins.com.

Bitcoin Latest News

Bitcoin & Ether Price Analysis: Bitcoin Still Going Strong While Ether Wearies

BTC ETH Price Analysis

Bitcoin and Ethereum continue to push all-time highs (ATHs) by most available metrics: price, market capitalization, daily traded volume, hash rate, transactions per day, etc.

mrkt cap.png

There appears to be a multifactorial convergence of fundamentals and technicals allowing for this surge to happen:

1. On-ramps

Specifically Coinbase for U.S. citizens, which now allows new users to purchase bitcoin (BTC), ether (ETH) or litecoin. Leading up to and even during the 2013 bubble, purchasing cryptocurrency was difficult for the average user. Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks cause a slight lag in on-ramping by limiting the total coins a new user can purchase. I expect the fuel for this rally to continue for at least another week.

2. Visibility in mainstream and popular media

At this point, you cannot use any social media or news source without hearing about Bitcoin. Everyone I’ve spoken with outside of the Bitcoinosphere is aware of its existence. Although purely anecdotal, this trend suggests Bitcoin is gaining visibility.  

3. ICOmania

Initial coin offerings (ICOs), similar to IPOs, allow for a company or brand to tokenize its assets through crowdfunding, most of which are done on the Ethereum blockchain. The quantity and rate of new ICOs remind many traders of the dot-com bubble due to large influxes of cash for almost every project.   

4. An agreement on the block size debate

The ongoing block size and scalability debate was stifling innovation surrounding Bitcoin. On Monday, it was announced that Barry Silbert and Bitcoin Unlimited proponents reached an agreement to activate SegWit now and hard fork in four months. Members of the Bitcoin Core community were not involved in the discussion. Shaolinfry, the user-activated soft fork (UASF) dev, had this to say regarding the agreement. UASF nodes continue to increase, despite the agreement.

To be clear, the proposal, as far as I can see, does not activate BIP 141, but is a completely new deployment that would be incompatible with the BIP 141 deployment. I’m not sure how that can be considered “immediate” activation. - Shaolinfry

uasf_nodes_all.png

5. Prices were already pushing ATHs  

Trend since 2015 has been bullish with several periods of extended consolidation. Price continues to break ATHs in large part due to further bullish technicals and market structure with every pullback/correction. Whether or not current price represents a bubble or euphoria is a bit irrelevant. What is more important is to look for signs of exhaustion. One such sign of exhaustion would be a toppy chart pattern such as an M double top or growing bearish divergence on a weekly chart.

Bitcoin

weekly.png

A bear div would consist of a higher high in price and a lower high on RSI, a measure of momentum. This would suggest lack of strength holding up price. In the case of BTC, however, there has been a steady increase in volume since the beginning of the year.

vol.png

As price continues to break ATHs almost daily, we can expect a large increase in volatility and range expansion, especially because there is no previous market structure at these levels. However, there are indicators that help determine support and resistance levels above ATH levels, the most common being Fibonacci extensions. Drawn from previous ATH to low, this would yield a target of ~$2,400.

daily.png

On a low timeframe, you can see yesterday’s $200+ volatility, which quickly rallied 50 percent of the drop.

15min.png

The current immediate target is the local top of $2,248.

Ethereum

Ethereum, on the other hand, is beginning to show signs of exhaustion. The weekly chart is showing a decline in volume since March, with ETH/USD pushing the top limit of RSI, and the ETH/BTC pair showing bear div.

ethusd.png

ethbtc.png

Structure currently has all the makings of an M double top. I would expect another retest of the previous consolidation level before moving higher. if Bitcoin makes a push past $2,400, however, it may drag up Ethereum with it as well.

ethusd 1h.png

The upside target should be between $198 and $217 according to Fibonacci extensions.

upside eth.png

Summary

  1. Bitcoin and Ethereum continue to push the envelope for almost every available metric and show little signs of slowing.

  2. Reliable on-ramping coupled with awareness and popularity continue to fuel demand.

  3. Despite several weeks of large gains, the possibility of continuing to further ATHs for Bitcoin remains high.

  4. With declining volume and a growing bear div on high timeframes, Ethereum is beginning to show signs of slowing.

The post Bitcoin & Ether Price Analysis: Bitcoin Still Going Strong While Ether Wearies appeared first on Bitcoin Magazine.

Posted on 23 May 2017 | 1:43 pm

Entrepreneur Vinny Lingham to Announce ICO at Consensus 2017

The CEO of blockchain identity platform Civic is expected to announce a forthcoming token sale today.

Source

Posted on 23 May 2017 | 9:15 am

Fidelity allows workers to use bitcoin in company canteen - Financial Times


Financial Times

Fidelity allows workers to use bitcoin in company canteen
Financial Times
Speaking on stage on Tuesday morning at Consensus, a bitcoin-themed conference in New York, Ms Johnson noted that Fidelity has made venture investments in a handful of bitcoin-linked businesses, while partnering with various academic initiatives to ...
Abby loves bitcoin: Fidelity chief touts digital currency in first major speechThe Boston Globe
Fidelity CEO Outlines 4 Problems With Bitcoin EcosystemInvestopedia
Fidelity CEO Talks 'Love' For Bitcoin, Why Blockchain Will 'Change' MarketsCoinDesk
Investor's Business Daily -BNN
all 8 news articles »

Posted on 23 May 2017 | 8:28 am

Bitcoin plummets $200 in 4 hours then recovers in wild trading that serves as a cautionary tale - CNBC


CNBC

Bitcoin plummets $200 in 4 hours then recovers in wild trading that serves as a cautionary tale
CNBC
Bitcoin's meteoric rise took a hit overnight as the digital currency erased, then mostly recovered, about $200 in 12 hours. The swing highlights how volatile the cryptocurrency can still be, even as some investors believe bitcoin can one day be a ...

Posted on 23 May 2017 | 8:18 am

Fidelity CEO Talks 'Love' For Bitcoin, Why Blockchain Will 'Change' Markets

The CEO of one of the largest private companies in the US is in love. At Consensus 2017 today, Abigail Johnson, chair and CEO of Fidelity Investments, went public with her enthusiasm for blockchain technology, bitcoin, ethereum and what the future holds for both open-source, public blockchains and more private alternatives. In her talk, Johnson discussed […]

Source

Posted on 23 May 2017 | 8:07 am

Japanese Budget Airlines Will Accept Bitcoin In 2017, Install BTMs At Airports - CoinTelegraph


CoinTelegraph

Japanese Budget Airlines Will Accept Bitcoin In 2017, Install BTMs At Airports
CoinTelegraph
Peach will become Japan's first airline to accept Bitcoin as the country's regulatory changes start paying off. In comments, Monday, Peach, which operates budget domestic flights as well as those to Korea, China and Thailand, confirmed Bitcoin would ...
Bitcoin Could Be Accepted at 300000 Japanese Stores in 2017CryptoCoinsNews
Fly with Bitcoin: Japan's Peach Aviation to Accept Payments in Digital CurrencynewsBTC
Bitcoin Payments Will Fly With This Discount AirlinePYMNTS.com
EconoTimes
all 8 news articles »

Posted on 23 May 2017 | 7:18 am

Bitt Reveals Big Plans for Cross-Caribbean Blockchain Settlement Network

A new partnership could be step one in a larger bid to unite some of the Caribbean's biggest financial institutions with blockchain tech.

Source

Posted on 23 May 2017 | 7:03 am

Blockstack Releases Blockchain-Powered, Tokenized Internet Browser

Blockchain startup Blockstack has released a decentralized browser aimed at making apps more easily accessible.

Source

Posted on 23 May 2017 | 6:52 am

Distributed Ledger Consortium R3 Closes Record $107 Million Funding Round

Global banking consortium R3 has closed an investment round larger than $100 million, the biggest round in distributed ledger history.

Source

Posted on 23 May 2017 | 6:31 am

The Value of Bitcoin Has Almost Doubled This Month - Fortune


Fortune

The Value of Bitcoin Has Almost Doubled This Month
Fortune
The surge of the value of the cryptocurrency can be attributed to a number in factors, including Bitcoin's new legitimacy in countries like Japan and China. In December, the Denmark-based Saxo Bank predicted Bitcoin's value would increase 165% in 2017.
Bitcoin jumps $200 in single day and has nearly doubled in May on surging global demandCNBC
Bitcoin hits record $2000 — and risingUSA TODAY
Bitcoin prices are soaring under TrumpCNNMoney
Wall Street Journal (subscription) -BBC News -Business Insider -CoinDesk
all 136 news articles »

Posted on 23 May 2017 | 6:17 am

Consensus 2017 Day 1 Recap: Collaboration, Education and Patience

CoinDesk's Noelle Acheson recaps a whirlwind day one at Consensus 2017, CoinDesk's New York blockchain conference.

Source

Posted on 23 May 2017 | 6:00 am

Bitcoin Growth Follows Gandhi's Famous Quote - CoinTelegraph


CoinTelegraph

Bitcoin Growth Follows Gandhi's Famous Quote
CoinTelegraph
There has been a very obvious increase in overall value for Bitcoin and major alternative currencies. Just two months ago, the Bitcoin market capitalization was about $16 bln, at the time of writing, the market cap has risen to over $35 bln. This ...
Should You Buy Bitcoin? 3 Pros, 3 ConsInvestorplace.com

all 4 news articles »

Posted on 23 May 2017 | 5:07 am

Consensus 2017: Blockchain Tech Leaders Predict Interoperable Future

At Consensus 2017, leaders of different blockchain projects discussed how their platforms could eventually become an interoperable "mesh" of services.

Source

Posted on 23 May 2017 | 5:00 am

Advertise with Anonymous Ads

Consensus 2017: People and Machine Problems – Solved with Blockchain?

In sessions focused on global issues and IoT at Consensus 2017 yesterday, the possibilities and hurdles for blockchain tech took centre stage.

Source

Posted on 23 May 2017 | 4:00 am

Advertise with Anonymous Ads

Bitcoin: To Infinity And Beyond? - Seeking Alpha


SBS (satire)

Bitcoin: To Infinity And Beyond?
Seeking Alpha
Bitcoin has blown through $2,100.00 seemingly on a one-way trip to infinity, and beyond. It may take a while for the crypto-currency to get to infinity. But, as its unabated pace shows it may actually get there. There are more reasons to pick up ...
Move over bitcoin, here's what we'll be using as currency in the futureSBS (satire)

all 2 news articles »

Posted on 23 May 2017 | 3:20 am

Consensus 2017: The Legality of ICOs – Past and Future

Afternoon panel sessions at day one of Consensus 2017 showcased a variety of positions on the emerging phenomenon of token sales.

Source

Posted on 23 May 2017 | 3:00 am

Bitcoin continues its massive surge - New York Post


New York Post

Bitcoin continues its massive surge
New York Post
The often maligned crypto-currency continued its incredible run on Monday, soaring to nearly $2,200 at 10:30 p.m. — leaving it up 124 percent this year and ahead nearly 400 percent over the past 12 months, according to Coindesk.
Bitcoin Surges Past $2200Futurism
Consensus 2017: Smith, Voorhees Talk Today's Bitcoin Market CrazeCoinDesk
If you'd invested ₹4500 in Bitcoin in 2010, here's how rich you'd be todayGQ India

all 5 news articles »

Posted on 22 May 2017 | 9:31 pm

Netki's Digital ID Service Tackles Global Compliance Challenges

Netki Digital ID Tackles Compliance

Netki, the New York–based software startup, wants to make blockchain technology more user friendly by launching its new universal Netki Digital ID service, so that anyone can access services on blockchains without re-validating their ID at every stop. The Netki Digital ID will be both KYC (Know Your Customer) and AML (Anti-Money Laundering) verified, allowing users to access a variety of blockchain businesses including financial institutions like banks, exchanges and healthcare services.

Netki wants their ID to work on any blockchain, public or private, around the world and to provide automated onboarding and validation of new customers, as well as easy sharing of digital identities.

The company’s goal is to create a digital identity certificate that uses a standard recognized by governments everywhere as legally validated, to process transactions anywhere in the world. Pricing will be based on the number of certificates and the complexity of validations.

The Digital ID uses a new peer-to-peer payment protocol (BIP 75) that allows senders, receivers and their financial partners to exchange all four identities via a private encrypted channel.

According to Netki’s announcement, the Netki Digital ID service will allow for the easy capture of an individual’s documents and biometrics via their smartphone, along with multiple levels of automated and manual verification, including database checks, machine learning and biometric analysis.

International Compliance: A “Herculean Task”

Netki IDs are already in use in the U.S. and Europe on the Bitcoin and Ethereum blockchains, and the company is hoping to expand its service both to new jurisdictions around the world and on new blockchain networks.

Netki’s CEO and Co-Founder Justin Newton talked to Bitcoin Magazine about the process of expanding its ID service, despite the challenge of many different legal requirements in an international regulatory environment.

The regulatory landscape is changing around the world at a rapid pace. With this in mind we designed our tools and protocols to be flexible in the case of differing, new or expanding regulatory requirements.

“As we work on each new use case, we work with the customer’s risk and compliance team to determine what requirements are appropriate for their needs.”

Newton told us their team spends time in each new jurisdiction consulting with local regulators before offering their service.

Amber D. Scott, whose company Outlier Solutions  works with blockchain startups on compliance and security issues, admires the spirit and sheer scope of Netki’s undertaking but recognizes that it is a herculean task to have any ID be compliant in every jurisdiction.

She recommends that companies planning to implement any new identification solutions should thoroughly research the requirements of the jurisdictions they are operating in, to ensure “that a solution meets those requirements in their entirety.”

Scott added, “We spend a lot of time with our clients conducting this type of testing, and very few solutions pass the tests.”

Michael Perklin, an internationally recognized security expert who oversees security for ShapeShift, acknowledges that verifying users can be time-consuming and expensive, and agrees that something like a universal ID would make this process easier.

“Many people complain that there are 20+ different identity standards and it seems that Netki is proposing a 21st. It seems like a great idea in theory but its success would depend on the community adopting the Netki ID as the industry standard as opposed to another service like uPort.”

UPort offers a mobile app that allows users to create self-sovereign credentials that would allow them to process transactions on blockchains.

Newton told us that while uPort is focusing on a business model, Netki has open-sourced their protocol. Another important difference between the two companies is that uPort stores private information on the blockchain while Netki stores information off-chain. That being said, Netki is currently partnering with uPort on several projects.

Caribbean Service Bitt Is the Test Case

Netki chose the Caribbean region to test its new service, partnering with fintech company Bitt, which provides a mobile wallet and payment services to anywhere in the world.

Newton told us:

“In terms of the project that we are working on with Bitt, we believe that one of the greatest promises of blockchain [technology] is around financial inclusion. The Caribbean region has far greater mobile phone penetration than banking penetration, and most banking is effectively controlled overseas,” he said.

By creating a locally run and focused alternative, they can lower the cost of remittance, spur inter-island trade and service many people currently excluded from banking and online finance.

Empowering Individuals Over Institutions

Netki’s founders believe that blockchain technology is the game-changer that will take society to the next level, allowing more democratization and levelling of existing silos.

Newton believes that blockchain technology is a means of empowering individuals and changing the way society interacts with each other; however, without easy access for the majority of people, universal adoption will remain a dream.

As part of simplifying and making blockchain technology more user friendly, Netki already offers a wallet-naming service for $9.99 per year, which allows users to register their unwieldy wallet address of letters and numbers to a simple name, making for easier transactions for both users and businesses.

Newton is excited about the future possibilities of blockchain technology for decentralization and democratization, saying:

“For the first time, using the standards we implemented at Bitt, and more broadly with BIP 75, regulated entities such as banks can operate on public networks like bitcoin and ethereum while still meeting their risk and compliance requirements.  With the recent institutional interest, and positive government movement around digital currency, these tools couldn’t come at a better time to enable the ecosystem to really step up to the next level in terms of both usage and opportunity.”

Netki is partnering with IBM in the Hyperledger Project and with PwC Australia in its Vulcan Project.

Investors in Netki incluse O'Reilly, AlphaTech Ventures, Colle Capital, Digital Currency Group, Plug and Play, the Husseine Group, Bitfinex and Base Ventures.


The post Netki's Digital ID Service Tackles Global Compliance Challenges appeared first on Bitcoin Magazine.

Posted on 22 May 2017 | 7:55 pm

EEA Adds New Members to Boost Future Ethereum Innovation

Enterprise Ethereum Alliance Expansion Announcement

The Enterprise Ethereum Alliance (EEA) has announced that 86 new members have joined the initiative that aims to bolster innovation around the Ethereum blockchain. The EEA, founded by corporate giants such as Microsoft, Intel and BP, views the Ethereum blockchain as a potential treasure trove of innovative opportunity.

Ethereum cryptocurrency founder Vitalik Buterin has praised the EEA, saying, “The Enterprise Ethereum Alliance project can play an important role in standardizing approaches for privacy, permissioning and providing alternative consensus algorithms to improve its usability in enterprise settings, and the resources the project and its members are contributing should accelerate the advancement of the Ethereum ecosystem generally.”

There are some more big names jumping into the alliance, joining Santander, ConsenSys and BlockApps. Some new members include Deloitte, Samsung SDS and the National Bank of Canada: all looking to build, promote and support Ethereum-based technology.

Deloitte is not new to Ethereum. Eric Piscini, Deloitte’s Global Blockchain Financial Services leader, said in a statement, “We have been investing on the Ethereum platform for a while. We are excited to actively contribute to the Enterprise Ethereum Alliance and drive blockchain adoption globally.”

Kwang Woo Song, vice president of Distributed Ledger Technology Business Group at Samsung SDS, stated, “As a company whose key focus and experience is in delivering solutions for enterprise business, joining the Enterprise Ethereum Alliance was a clear decision for us. Ethereum is one of the fastest growing blockchain technologies, with potential to provide exceptional benefit to enterprises.”

“The enthusiasm around EEA is remarkable,” said Julio Faura, the chairman of EEA. “Our new members come from varying industries such as pharma, mobile, banking, automotive, management consulting and hardware, as well as the startup community driving innovation. It’s great to see everyone come together and build the next generation of our economy on Ethereum blockchain solutions.”

Companies joining the EEA in this announcement include names like Elevondata Labs Inc., Depository Trust & Clearing Corporation (DTCC), Hashed Health, Gem and Ledger. The collaborative efforts that may arise among the membership could lead to giant leaps in the Ethereum blockchain technology and a groundswell of supportive infrastructure that should solidify Ethereum as a staple in the blockchain marketplace.

There is amazing potential for Ethereum and smart contracts in healthcare. Hashed Health is excited to work with the Enterprise Ethereum Alliance on defining and developing enterprise-grade solutions that can safely and securely handle the complexities of the evolving healthcare marketplace. - John Bass, Founder & CEO, Hashed Health

The post EEA Adds New Members to Boost Future Ethereum Innovation appeared first on Bitcoin Magazine.

Posted on 22 May 2017 | 7:29 pm

Op Ed: How One Investor Is Riding the Cryptocurrency Token Wave

Op Ed: One Investor Rides Cryptocurrency Token Wave

I was yanked down the rabbit hole hard and fast when I first caught the Bitcoin Bug in late 2013. Before I even knew what a “blockchain” was I had founded what is now known as the Blockchain Education Network (then called the College Cryptocurrency Network), and was voraciously trading “altcoins.”

Back then, the term “altcoin,” which was used to describe any cryptocurrency besides Bitcoin, felt quite suitable. Most of those altcoins, including the most popular still in existence today, such as Litecoin and Dogecoin, were forks of Bitcoin’s code and were merely alternative “coins” with different rules or hashing algorithms. Watching these strange new financial vehicles violently fluctuate in value was both addictive and impossible to resist trading into. While I was slow to inoculate myself against that masochistic urge, I was quick to realize that few of these protocol tokens (that is, crypto-assets that incentivize validators, such as miners or stakers, to secure a blockchain) provided much value beyond Bitcoin’s own use case. Admittedly, I am shocked that many of these tokens still exist today.

On the other hand, as the blockchain ecosystem began to evolve, more novel iterations of Satoshi Nakamoto’s revolutionary financial tool began to appear. The rise of Ethereum, BitShares, MaidSafe and Omni, amongst others, represented a paradigm shift that went far beyond decentralized digital currency. Soon enough, I dropped out of school to focus on this industry full-time, and ended up cofounding Augur, a decentralized prediction market platform.

Lessons from Augur

When we first designed Augur, we wrote a white paper that outlined how to build a prediction market platform using Bitcoin’s source code — sort of like an altcoin. However, Bitcoin’s UTXO model did not jibe well with the sort versatility required for such a complication decentralized application. Soon after we published our white paper, despite the promise of Blockstream’s recently released sidechains proposal, our advisor and Ethereum Founder Vitalik Buterin convinced us to build Augur on his yet-to-be-launched smart contract–enabled blockchain. In hindsight, deciding to build Augur on top of what was then referred to as “vaporware” was a decision a more seasoned entrepreneur would have determined to be … “batshit insane.” But, the potential of the platform was too great, so we felt as if we had no other option.

Soon after deciding to build atop Ethereum, we began to realize that there was no way to create a decentralized oracle solution (i.e., a means to determine the outcome of markets without a centralized arbiter) unless we issued our own token. I went to game theorists, computer scientists and anybody else I could get to listen, to see if there was an alternative and whether it even made sense to do this. After much consultation and internal debate, we came to the decision to build an unstoppable betting engine that predicted the future, with no central point of failure (such as those that exist in a platform such as Gnosis), with a native token used by “reporters” around the world, to assert the outcome of events, was our only option. Thus Augur’s native asset, Reputation, known as REP, was born.

Venturing Into ICOs

2014 was winding to a close as we came to these conclusions, and the thought of performing a crowdsale was terrifying. (We would, for a short time, eradicate the term “ICO.”) Most conversations about Ethereum and recent token sales would lead to speculation about when regulatory authorities, namely the SEC, would bring down the hammer on token issuers.

With no other option, however, I hit the books and started reading about all sorts of securities laws and case law, in addition to prediction market and gambling regulations. I quickly earned the nickname “JG Esquire” within Augur, and spent much of early 2015 working with our legal team and advisors to find a compliant structure for the REP token sale. By the time our sale came about in late summer 2015, all involved parties had a fairly high degree of confidence that we had developed a token and offering that would not fall afoul of regulations.

Expanding Investment Opportunities in the Token Economy

While our sale raised over $5 million and was quite a success for the time, shortly after the Augur sale ended bitcoin and ether prices began to stagnate. Both the confidence and companies created during the first boom began to falter. In my mind, Augur was a ripple in the current before a tidal wave of new financial instruments to come, but it was unclear whether I was right and there was considerable coding remaining for the project.

With time before Augur’s launch, I joined Blockchain Capital as an entrepreneur-in-residence. I became an advocate for tokens backing legitimate networks and spoke about the matter frequently. However, it still took quite a while for the token economy to sprout. Then out of the blue in late 2016, ether began to rally in price, and token offerings, more popularly referred to as Initial Coin Offerings (ICOs), started popping up out of the blue, often raising millions in a matter of days, or even minutes.

This new trend was alarming to me, though in hindsight I suppose it shouldn’t have been. Ethereum, with its ERC-20 protocol, which allows the straightforward development of crypto-tokens on top of its blockchain, made the urge to create new assets irresistible. Instead of requiring developers to create entirely new blockchains and protocol tokens, which had to be secured by miners or stakers (a costly, challenging undertaking), a team could create a new token that was backed by the security of Ethereum’s blockchain in a matter of hours.

For the following few months into the new year I watched these developments from the sideline. It was apparent the biggest crypto-asset rally since 2013 had begun in earnest. I had sizable investments in ETH, BTC, XRP and, of course, REP. I couldn’t believe that this bull run and new trend of ICOs could be sustained. Not, at least, without the return of serious outside interest in the crypto-realm.

And then, of course, it started to come. Hedge funds, banks and consumers, many of whom had already begun professing their love of “blockchain technology” (albeit not Bitcoin), started funneling money into crypto-tokens new and old. Around this time, my friend Olaf Carlson-Wee, the first employee at Coinbase, announced that he would be investing in these strange financial instruments through a new type of hedge fund, Polychain Capital.

As I was busy working as a venture capitalist investing in traditional companies at Blockchain Capital, Olaf’s new fund was a means for me to gain exposure to this crazy new trend without falling into the crypto-asset rabbit hole as I had back in college. I quickly signed on as both a General and Limited Partner, and sent Polychain my first (but not last) wire.

Blockchain Capital’s Venture Fund

For most of early 2016, I was content to let Olaf (and his new partner, the talented Ryan Zurrer) review and manage any new ICOs I was sent. But the trend maintained. It appeared this new generation of crypto-assets was more than a massive pump-and-dump. In fact, my firm began to explore tokens much more seriously. Though it had often been teased that it was only a matter of time before I went to jail for Augur, there was an evolution in our thought process surrounding tokens and their corresponding offerings. Soon enough, we became convinced that Blockchain Capital should offer its own token, BCAPs, in order to provide a new sort of venture fund.

This decision would lead us to reevaluate the traditional scope of our investments mandate. Crypto-tokens, as I had long argued, could be revolutionary (or, at least, useful) financial instruments, and it would be foolish throwing out the crypto-asset babies with the altcoin bathwater.

Projects such as 0x, Maker, Golem and Filecoin demonstrated how much alternative crypto-tokens had evolved since the dodgy days of Doge and Darkcoin. Because of this evolution, I officially decided to take the plunge and deep-dive down the token rabbit hole once again with Blockchain Capital. In addition to my roles investing and as an entrepreneur-in-residence, I will be focusing considerable energy on the new token economy, evaluating new ICOs for the firm.

It is impossible for a firm such as Blockchain Capital, the earliest venture fund to state its commitment to this novel economy outside of Bitcoin, not to participate in this remarkable new chapter of the blockchain revolution. New platforms, such as AngelList’s Coinlist, will standardize and add further legitimacy to such offerings.

I am still extraordinarily skeptical of most ICOs and tokens in general, but I am more excited than ever about blockchain technology and all the ways it is bound to disrupt ingrained, outdated institutions. If decentralized applications and crypto-assets are the harbinger of such change, then I am on board.

It’s going to be a rocky road, and there will surely be corrections (if not dramatic drops), but I can’t say I haven’t seen it before. I look forward to sifting through the white papers, ponzis and pumps sure to fill my inbox in the coming months in order to find the game-changing diamonds in the rough. It’s going to be a wild ride. So buckle up, bring a barf bag and watch as the Crypto Rodeo brings out the bulls and bears.

This op-ed is a guest post by Jeremy Gardner. The views expressed are his own and do not necessarily represent those of Bitcoin Magazine.

The post Op Ed: How One Investor Is Riding the Cryptocurrency Token Wave appeared first on Bitcoin Magazine.

Posted on 22 May 2017 | 5:15 pm

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Bitcoin's rise: $1000 invested in 2010 would be worth $35 million today - MarketWatch


MarketWatch

Bitcoin's rise: $1000 invested in 2010 would be worth $35 million today
MarketWatch
One “regret” chart sent around on Monday by Jeroen Blokland, portfolio manager on the Robeco Global Allocation team, shows how a $1,000 investment in bitcoin in July 2010 would be worth more than $35 million. Comparatively, the equivalent investment ...

Posted on 22 May 2017 | 4:08 pm

Consensus 2017: Enterprise Ethereum Alliance Puts Blockchain Privacy Into Focus

Privacy and confidentiality are big-ticket priorities for the Enterprise Ethereum Alliance, ethereum-focused consortium launched in February.

Source

Posted on 22 May 2017 | 3:50 pm

Blockchain Technology Fuels Global Advancements in the Energy Sector

Blockchain Technology Fuels Global Advancements in the Energy Sector

As moonshot projects in the distributed world abound, it’s not surprising to see the energy sector jumping into the fray. This comes as the heavily regulated power industry eyeballs new approaches for allowing consumers to generate and sell electricity in various locales worldwide.

It’s here that blockchain technology is increasingly being seen as a potential, low-cost means for delivering energy transactions across a distributed network without need for a centralized authority. In fact, some surmise that blockchains may one day eliminate the need for intermediaries altogether, thereby allowing a more free market approach to energy distribution.

Blockchain tech could also boost efficiency by serving as the backbone for “smart grid” systems, automatically identifying and addressing network hitches that may arise. Moreover, when tethered with the Internet of Things (IoT) movement, energy devices such as those used for heating, cooling, ventilation, electric vehicles, solar installations and even batteries will be able to interact with one another, resulting in greater cost savings.

Not to be overlooked is the enhanced cybersecurity element that blockchain technology offers for an industry that has become increasingly susceptible to cyberattacks.

Despite blockchain technology’s potential utility, industry adoption may pose a number of gritty challenges. For starters, the energy grid is fraught with complexity associated with managing the process continuum of materials management, energy generation and delivery. Moreover, prevailing recordkeeping and data management systems remain cumbersome, resulting in costly missteps when it come to energy trading and asset ownership tracking.

Global Experimentation Abounds

As the intersection between blockchain technology and the energy sector advances, experimental demonstration projects are taking shape throughout the world.

Last year, the blockchain-centric Brooklyn Microgrid project, a peer-to-peer energy market for local renewable energy generation, attracted quite a bit of media attention. The intent of the startup is to deliver solar panels to this New York borough’s rooftops, allowing local residents to purchase and offload electricity within their community. This initiative allows for a system that bypasses power companies, thereby creating a generation-and-storage ecosystem that works in a more independent and efficient manner.

In another example, Austria’s largest regional utility company, Wien Energie, in collaboration with the Canadian blockchain startup BTL Group has engaged in a blockchain trial run targeting energy trading with two other utilities. The objective? To gather a repository of knowledge about blockchain technology, assessing the viability of it and relevant business models for the industry. This pilot ran from March to May 2017 and is expected to generate a set of new commercial strategies to explore.

Additionally, the SP Group, Singapore’s energy provider, will be developing blockchain solutions in partnerships with other providers throughout the world, with the goal of lowering consumer utility costs in that nation. This initiative is also intended to create simpler mechanisms for integrating new renewable energy sources into the mix.

Andre De Castro, founder of the NY-based Blockchain of Things and Catenis Enterprise — which delivers blockchain solutions for simplifying and accelerating secure global peer-to-peer edge device messaging, digital asset control, and recording of immutable data — tells Bitcoin Magazine that blockchain technology is just the beginning foundation for advancing the energy sector. “Having a distributed database doesn’t necessarily get you a trading system or an application. So what’s really needed is an application layer on top of the blockchain, to get real-world solutions.”  

De Castro says that his company enables the creation of digital assets, more commonly known as tokens, that can be applied to energy units across endpoints to create new business models for energy markets. “Everything is moving toward more open exchanges when it comes to the energy industry. Therefore consumers will soon be able to choose their own energy providers and even resell energy to their neighbors in certain areas of the world.”

He notes one additional benefit to the advancements, namely that the global Bitcoin blockchain is incredibly secure due to the fact that transactions can be cryptographically verified, thereby protecting critical assets on the energy grid. “This addresses a major challenge that currently exists today involving utility systems where there is a reliance on centralized cloud servers. What we’ve developed at Catenis with the blockchain allows for decentralization and the elimination of central points of failure that could affect big swaths of the energy grid.”

Ultimately, De Castro sees a day where blockchain technology will foster the creation of more flexible business models for exchanging power in open markets and selling that power back to the main energy grid. He also believes that this will open up immense opportunities in the clean energy space, welcome news for the eco-friendly movement. “I believe that control mechanism allowing digital tokens to be mapped will become more common resulting in lower energy costs while making peer-to-peer exchanges more efficient.

The post Blockchain Technology Fuels Global Advancements in the Energy Sector appeared first on Bitcoin Magazine.

Posted on 22 May 2017 | 2:58 pm

Deloitte Joins Blockchain Consortiums Ethereum Alliance and Hyperledger

Deloitte has revealed that it's joining two blockchain consortium efforts: the Enterprise Ethereum Alliance and the Hyperledger project.

Source

Posted on 22 May 2017 | 2:45 pm

Over 30: Deloitte Adds 'Mercury' Project to Blockchain Prototypes

Deloitte has unveiled a new trade finance initiative, one that adds to its growing list of blockchain projects

Source

Posted on 22 May 2017 | 2:45 pm

Consensus 2017: 'The Future Is Here' For Blockchain's Cross-Border Impact

Cross-border blockchain use was up for debate during today's Consensus 2017 panels.

Source

Posted on 22 May 2017 | 1:32 pm

131 Countries: BitPay Goes International With Bitcoin Prepaid Visa Card

BitPay is expanding its prepaid bitcoin card offerings to more than 100 new countries.

Source

Posted on 22 May 2017 | 1:15 pm

Nuco Launches Blockchain Beta for TMX Group Natural Gas Exchange

Blockchain startup Nuco has launched into beta with a partnership with TMX Group in Canada.

Source

Posted on 22 May 2017 | 1:00 pm

One for All? Citi, DTCC and PwC Talk Blockchain Teamwork at Consensus 2017

Enterprise blockchain was on full display at Consensus 2017 in New York City today.

Source

Posted on 22 May 2017 | 12:45 pm

IC3 Debuts Upgraded Off-Chain Transaction Protocol 'Teechain'

The Initiative For CryptoCurrencies & Contracts (IC3) has unveiled a new version of its Teechan off-chain transaction protocol.

Source

Posted on 22 May 2017 | 12:30 pm

ShapeShift Breaks New Ground With 'Prism' Digital Asset Portfolio Product

ShapeShift has unveiled a new product called 'Prism', one that brings a whole new style of investment to the cryptocurrency markets.

Source

Posted on 22 May 2017 | 12:00 pm

Consensus 2017: BitPay CEO Calls Bitcoin Fork 'Only Option' For Businesses

A panel focused on bitcoin scaling drew crowds at Consensus 2017 today, though panelists painted a somewhat murky picture of potential paths forward.

Source

Posted on 22 May 2017 | 11:30 am

If you bought $100 of bitcoin 7 years ago, you'd be sitting on $75 million now - CNBC


CNBC

If you bought $100 of bitcoin 7 years ago, you'd be sitting on $75 million now
CNBC
Monday marks the seven-year anniversary of Bitcoin Pizza Day – the moment a programmer named Laszlo Hanyecz spent 10,000 bitcoin on two Papa John's pizzas. More important than the episode being widely recognized as the first transaction using the ...
If You Bought $5 of Bitcoin 7 Years Ago, You'd Be $4.4 Million RicherFortune
Bitcoin Price Jumps to $2200 Per CoinInvestopedia
Somebody Once Paid 10000 Bitcoins for 2 Pizzas. Today, That Would Be Worth $21.7 MillionMoney Magazine
Business Insider -Newser -Mashable
all 27 news articles »

Posted on 22 May 2017 | 10:51 am

Op Ed: User Activated Soft Forks and the Intolerant Minority

Op Ed: User Activated Soft Forks and the Intolerant Minority

It does not take a majority to prevail … but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men.
Samuel Adams

In The Most Intolerant Wins: The Dictatorship of the Small Minority, Nassim Nicholas Taleb describes how a strong enough minority with more strict preferences can end up with the majority following their preferences. He speaks of many examples  —  food preparation standards, languages and taboos.

This principle can also extend to Bitcoin and the concept of soft forks. By extending this principle, it can show that a soft fork that has strong support from a minority still may be enough to provide economic incentives to its enforcement, even if the majority is ambivalent.

Soft forks, by their nature, are a form of intolerance. Users who enforce a soft fork are intolerant of some types of transactions or blocks that miners can produce. They will reject those blocks that miners produce much as an Orthodox Jew will reject pork. In cases where the majority is ambivalent and the cost for producers is low to adhere to the stricter standards, then the result is producers keep everyone happy by following those stricter standards.

In Bitcoin’s case, many potential soft forks fall into this category. Soft forks that do not degrade the security properties of Bitcoin, that do not take away from any currently used features, do not add costs to miners, and are preferred by some, would result in profit-maximizing miners choosing to serve a wider audience by enforcing the soft fork.

Strong-Willed Minority vs. Ambivalent Majority

In the above case, if there were strong believers committed to a soft fork with stricter rules, miners face a choice  —  do they allow the chain to split or serve everyone with the new stricter rules? If they allow the chain to split, they must pick a subset of users to serve, giving them less value than if they were to serve all. This also harms the network effect, which means the sum of the two parts is now worth less than the original. Thus, as long as the minority committed to the soft fork was sufficient in size that they cannot be ignored, a profit-maximizing miner will follow them (assuming there is little to no cost of enforcement).

Strong-Willed Minority vs. Miners’ Interests

In a case where a strong-willed minority requires non-GMO, organically certified food, this may not result in the minority getting its way. The cost of production may be too high to be worth it. A theoretical soft fork that reduces the block reward by half would be a good example. A minority may feel the block reward is too high and wish that it be lowered, and only allow miners to claim 6.25 coins instead of 12.5 per block. In this case, miners would give up a significant amount of income to have to enforce it, and the loss of “business” from excluding these users may be less costly than reducing their income.

Strong-Willed Minority vs. Strong-Willed Minority

A third case is when a strong-willed majority ends up alienating another portion of the potential consumers. If a new religious sect required that all food have bacon added to it, Jews and Muslims would not tolerate this and would splinter off, even if the majority did not care either way. In this case, a split is inevitable.

In the Bitcoin case, some users may wish to have all addresses logged in a government registry to ease KYC compliance. They could demand that miners only mine blocks that adhere to these standards. This type of action would be rejected by many users who would not go along with such a plan, and in fact may even take steps to block it if it was enforced. In this case, a split would be inevitable if both factions were sufficiently intolerant of the other.

The Importance of Commitment and Stubbornness

This only works if users are absolutely committed to their rules being followed. Commitment must be absolute and unwilling to change, no matter what the majority does. The most important part of the intolerant minority is to truly be intolerant! If the cause is not worth putting your neck on the line for, it will not be successful.

Some supporters of user-activated soft forks (UASFs) have stated that they intend to enforce the UASF unless it is not widely supported or followed, and then would back off. This is the surest way to guarantee failure. If you are unwilling to follow a minority chain with an economic minority, you aren’t truly an intolerant minority. You are only one with a preference.

Guidelines for User-Activated Soft Forks for Maximizing Success

  • Take away no existing useful features (do not create a hostile minority).

  • Do not add significant costs to miners (make burden for miners as low as possible).

  • Include functionality that users are willing to fork off for.

  • Ensure there is a sufficiently sized minority willing to commit.

A sufficiently sized, committed, economic minority is enough to have a successful user-activated soft fork. While Shaolinfry said that without an economic majority behind a soft fork, it should be withdrawn, I believe that statement to be too weak. The history of intolerant minorities making changes is long enough to show otherwise.

This guest post by Alphonse Pace was originally published on Medium and is reproduced here under Creative Commons license. Some rights reserved. The views expressed do not necessarily represent those of Bitcoin Magazine.

The post Op Ed: User Activated Soft Forks and the Intolerant Minority appeared first on Bitcoin Magazine.

Posted on 19 May 2017 | 8:08 pm

University Student Involvement Supports Australia’s Booming Blockchain Community

University Student Involvement Supports Australia’s Booming Blockchain Community

The blockchain industry is booming in Australia recently after the Australian Tax Office (ATO) announced changes to tax laws in the 2017–2018 budget summary by the Australian government, surrounding how digital currencies are treated in the country. In the few weeks since the announcement, active blockchain communities and events such as RegHack DownUnder have launched across the country, supported by universities and government regulators.

Australia has traditionally held strict tax laws when it comes to how they handle bitcoin and other digital currencies, defining bitcoin as a separate asset class to fiat currency and requiring that transactions involving digital currencies are taxed twice by the Australian Tax Office. The new budget summary removes any general sales tax made more than once in the supply chain using digital currency, in an attempt to “make it easier for new innovative digital currency businesses to operate in Australia” and to grow their nascent community into a global innovation hub.

The summary states, “The Government is committed to establishing Australia as a leading global financial technology (FinTech) hub and is announcing a new package that aims to position our local fintech industry as a world leader.”

This new regulatory environment has spurred growth in the community, from university campuses all the way up to the government regulators. Students have begun to launch clubs at universities across the country, and regulators and business executives have begun to take notice.

“We’re excited blockchain [technology] can finally move to our campus and Australia in a big way. There’s been a significant increase in interest from the community in the past few weeks,“ said Ryan Pousson, the regional head of the Blockchain Education Network (BEN) in Brisbane and the founder of the UQ Blockchain Club, in a statement to Bitcoin Magazine. This perspective was echoed by Jared Piper, a region head of the Blockchain Education Network in Melbourne.

Aaron Schwartz, the director of global engagement at BEN and partner at MLG Capital, told Bitcoin Magazine, “It’s super exciting to be part of a decentralized organization like BEN that is doing something unique with a swarm-style model. We are quickly spreading to countries all across the world with new chapters opening up across Australia, Colombia, Nigeria and Bangalore, just to name a few. We encourage anyone in a blockchain community around the world to reach out to get started growing their local community.”

On the weekend of May 12–14, government representatives in the energy sector and banking executives in the financial services industry came together to judge RegHack DownUnder. The brightest developers, UI/UX designers and entrepreneurs across Australia were encouraged to spend the weekend in Melbourne to develop blockchain technology solutions to solve some of the problems it faces in these two heavily regulated sectors.

In advance of the hackathon, Adam Lemmon, a blockchain expert from Toronto, flew down to Melbourne to present an overview of Ethereum development and Solidity to the community. Following the event, Lemmon said, “RegHack was an amazing experience and it was inspiring to see such a young blockchain community so excited about the technology.”

Chami Akmeemana, the organizer of RegHack DownUnder, predicts a fast growth in the community. He said to Bitcoin Magazine following the event: “It was a mammoth success. Close to 100 participants spent three days exploring tech solutions to regulatory issues. We now have 100+ blockchain enthusiasts, that I expect [will grow] to over 1000+ by the end of the year. I’m hoping to see some world-class blockchain applications coming out of Australia and I’m stoked to be part of this boost to the ecosystem.”

The regulators in Australia are on board too with this digital transformation. Igor Simunovic, a representative from the Australian Transaction Reports and Analysis Centre (AUSTRAC), said in a statement following the event that “the event provided opportunity for industry (including government) and freelancers/students/developers to meet, integrate and share through the problem solving required to address the Hackathon ‘problems.’ Such meeting and teamwork opportunities are rare and often bound by the [confines] of conferences or meet-ups. The process of discovering new technologies and frameworks was just a bonus.”

It is still the beginning in the growth trajectory of the blockchain community in Australia, but it is an exciting time to be part of a global movement. For example, in the few months following November’s RegHack TO, the first hackathon hosted by a securities regulator in Canada and inspired by Chami Akmeemana, the number of people attending meetups in Toronto has tripled from 200 to over 700 at the most recent blockchain meetup in Toronto. Getting the entire community on board from universities to business executives to government regulators is an important milestone for any community striving to become a blockchain hub.

The post University Student Involvement Supports Australia’s Booming Blockchain Community appeared first on Bitcoin Magazine.

Posted on 19 May 2017 | 2:32 pm

Bitcoin Price Analysis: Nearing a Bubble...but We’re Not There Yet

Bitcoin Price Analysis

Bitcoin has now shown about eight weeks of consecutive buying, leading into new all-time highs (ATHs) for the past three weeks. Trying to stay objective with mild to extreme euphoria in times like this can be difficult. As someone who was a new trader during the 2013 bubble, the chart is beginning to look very similar.

Market capitalization and trading volume both on exchanges and over-the-counter markets have hit ATHs as well.

Screenshot 2017-05-19 at 6.34.52 AM.png

Screenshot 2017-05-19 at 6.37.51 AM.png

Screenshot 2017-05-19 at 6.46.22 AM.png

Despite being in price discovery mode, there is an established, longstanding trend we can compare the current price against, as well as the entire left side of the chart. Past results don’t always predict the future, but they can influence it.

There are a few questions we can investigate:

  1. Is the price near an interim top?

  2. Is the price nearing parabolic conditions?

  3. Will the price continue on the previous trend at the same rate?

Looking at the monthly Bitstamp chart, there have not been too many candles of this proportion. This would suggest we are nearing bubble-like conditions.

stamp monthly.png

Price has also begun to close outside of the longstanding trend. This weekly candle has not closed yet, but if it does close outside of the diagonal, it will be the first weekly candle to do so. This again points to breaking the trend strongly to the upside.

stamp channel.png

Fibonacci retracement and extensions are admittedly partly magic voodoo, but there are plenty of traders who use and watch them to make the resistance and support levels legitimate. Drawing this Fibonacci from the local high established on March 10, 2017, to the low on January 14, 2015, several Fibonacci extensions emerge as well.

fib from low to local high.png

These can be seen as resistance levels, the next being the 1.618 at $2,088. Although the horizontal levels are arbitrary, we can confidently predict resistance based on the fit of the previous horizontals. Most of the prior “Fibs” match the price. This should be seen less as curve fitting and more as levels that just make sense. Based on the Fibonacci levels alone, there is not necessarily evidence for top or bubble just yet.

We can tease apart the trend even further by using the Fibonacci tool on each previous high and low.

stamp fibs.png

In the trend, a consolidation from the previous high to low has yielded a price that has seen resistance at the 2.272 Fibonacci extension. Currently, the price has exceeded the previous 2.272 Fibonacci extension and shown it was supported based on the multiple candle touches. This suggests price is moving faster than the previous trend as well as closer to bubble-like conditions.

For low-timeframe, intra-day trading, there was a long entry signal when the price cleanly broke the consolidation triangle. On the next correction, pullback or consolidation event, I’d expect the support diagonal (green) to remain the same.

coinbase triangle.png

Remember that splashy gold parity headline? BTC is now sitting several hundred dollars above it.

xau vs usd.png

Summary

  1. Bitcoin is making ATHs by almost every available metric: price, market capitalization, volume, hashrate, difficulty and fee per transaction.

  2. Although $2,000 is the next milestone and resistance target, the price will likely exceed that level based on the strength and rate at which the price is exceeding current trends.

  3. Watch for signs of a large pullback or correction in the near future, two to three months at the latest, based on previous price history.

Trading and investing in digital assets like bitcoin is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

The post Bitcoin Price Analysis: Nearing a Bubble...but We’re Not There Yet appeared first on Bitcoin Magazine.

Posted on 19 May 2017 | 1:15 pm

CRYENGINE now accepts Bitcoin

Posted on 29 March 2017 | 1:24 am

Consulting firm EY Switzerland accepts Bitcoin

Posted on 26 November 2016 | 12:47 am

Bitcoin Trading Bots

There have been a wide variety of situations in which algorithmic trading programs have proven to be beneficial for investors. However, investors who only trade a cryptocurrency can also take advantage of bitcoin trading bots. Through bitcoin bot trading, traders can become more flexible and prompt, minimize errors and process information more rapidly. At this… Read More »

Posted on 8 November 2016 | 6:20 pm

Major Magazine Publisher to Accept Bitcoin Payments

Posted on 18 December 2014 | 12:43 pm

Microsoft accepts Bitcoin

Posted on 11 December 2014 | 5:06 am

Mozilla accepting Bitcoin

Posted on 20 November 2014 | 1:55 pm

Wikimedia Foundation Now Accepts Bitcoin

Posted on 30 July 2014 | 3:14 pm

German Newspaper "taz" accepts Bitcoin

Posted on 22 July 2014 | 1:32 pm

Expedia to accept Bitcoin payments for hotel bookings

Posted on 12 June 2014 | 12:41 pm

Bitcoin Core version 0.9.1 released

Posted on 8 April 2014 | 4:27 pm

Bitcoin taxfree in Denmark

Posted on 25 March 2014 | 5:46 pm

May 23, 2017 -
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