Meet the Bitcoin Millionaires - Bloomberg

Why Ethereum matters, why we should root for Ethereum over almost all competing smart contract platforms

Bitcoin had a fair launch. Anyone who knew about Bitcoin and had access to a PC could mine from day 1. Over time, mining became more difficult but people could easily buy BTC on various exchanges or from other people who had Bitcoin. You didn't have to be a member of a privileged class to get into Bitcoin at the ground floor.
Ethereum had a fair launch. Unlike Bitcoin, the project was far too ambitious for the people who conceived of it to pay for its development out of pocket. So they held an open crowd funding to pay for development. Anyone who heard about Ethereum could participate in the crowdsale, priced at about 30 cents/ETH. After the chain launched, anyone with a modern graphics card could also mine Ether and put some away.
Some founders on the team didn't care for that funding model for Ethereum. They wanted Ethereum to be funded by insiders and VCs and held private for a long time. Some even left the project, or were encouraged to leave, over the difference in vision between an open community non-profit project, and a VC-held and VC-controlled for-profit organization.
And of course both Bitcoin and Ethereum are open-source projects with licenses that encourage the ability to copy, rework, and reuse the project code.
These days there are lots of Ethereum "killers", ETH 2.0 "killers" and ETH competitors launching and planned for launch. For the most part, they do not adhere to the Bitcoin or the Ethereum open participation models. Some are closed-source, copyrighted projects. Almost all were and are funded by VCs and the wealthy via SAFTs, often through secret deals where price and amount of tokens are not disclosed. The public is generally not allowed to participate until the tokens get marked up 5x, 10x or 100x before an exchange listing. So you will end up with the vast majority of tokens owned by a very few, already very wealthy people.
But a radically unjust token distribution isn't all that these new "Ethereum Killers" have. No, they also are, almost to the last, designed around plutocratic governance. That is, if you are one of VCs, the insiders and wealthy allowed to buy in early before the marking up to retail, you will have orders of magnitude more tokens and therefore you will have orders of magnitude more control over future changes to blockchain rules than the hoi polloi. Some even see this kind of governance as a feature and a good thing. I disagree emphatically!
Ethereum was an open, community-supported launch organized by a non-profit entity. It is today an open and community-participatory project. There are no fees to attach your application to Ethereum, other than gas costs. The blockchain is permissionless, no plutocracy can "vote you off the island". Ethereum is not run by rich VCs and "accredited investors" who got in on the ground floor when you couldn't.
I do hope that Ethereum wins out. I think there is an enormous difference between an open community project and almost all of the competitors who launched after. I do not want the future of humanity's financial internet to be based on plutocratic control by the fabulously wealthy. How would that be one bit better than the existing financial system?
If making these observations, if hoping that Ethereum becomes the global financial commons, instead of a pluto-chain taking over, makes me a narrow-minded Ethereum maximalist, so be it.
submitted by huntingisland to ethereum [link] [comments]

Reading This Make Me Cry, I Knew Bitcoin In 2009 But Didn't Buy It, And This Boy Bought Some Bitcoin And Now Has $4.5mil

Reading This Make Me Cry, I Knew Bitcoin In 2009 But Didn't Buy It, And This Boy Bought Some Bitcoin And Now Has $4.5mil
I was a university student at that time, I was trying to mine some Bitcoin but it was very complicated at that time, and I was not very good in Eng at that age so I didn't make it, but this boy not. I gotta say I'm kind of jealous of him, but he actually put a lot of work so he deserves it.
"While fleeing from the police, Finman saw a man in a shirt with a Bitcoin logo and he asked him What is Bitcoin. That prompted Finman to do his own research on cryptocurrencies and bought 100 BTC" => Teenager,s be curious and you can be rich as this kid!
Buying $ 1,000 Bitcoin at age 12, now the 20-year-old has a net worth of $ 4.5 million
https://preview.redd.it/tu5h6fr6b7j31.jpg?width=600&format=pjpg&auto=webp&s=20200cc670edb899c68dd6c51430c7377046e3ef
Finman grew up in Post Falls, a small town outside Coeur Keyboardlene, Idaho, USA. His parents met when he was a PhD student at Stanford University and Erik was the youngest of their three sons.
Finman first learned about Bitcoin from a "hippie" (a term used to refer to the eccentric young people against the conventions of society) in a demonstration and he thought it sounded promising.
In an interview with Cheddar, Finman shared the original story of how he discovered Bitcoin. Specifically, Finman's brother took him to a demonstration after the 2008 financial crisis. While fleeing from the police, Finman saw a man in a shirt with a Bitcoin logo and he asked him What is Bitcoin.
"I thought it would end Wall Street, all corruption and bad things," Finman recalls the sentence of the stranger.

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That prompted Finman to do his own research on cryptocurrencies, and he decided, along with his brother, to do something important. Finman used $ 1,000, the money his grandmother intended to save for later studies, to buy about 100 Bitcoin. At that time, each of these cryptocurrencies was worth only about 10 to 12 USD.
"Every day after that, I spend time trading to earn more," Finman said. "For three years, I simply made Bitcoin transactions and went to school."

https://preview.redd.it/4twndla8b7j31.jpg?width=640&format=pjpg&auto=webp&s=b484d6335f20e0f8e04ed1b88e7daa3bf4d3a5fa
At the age of 15, Finman sold Bitcoin worth more than $ 100,000 to raise money to start an education startup and drop out of high school.
Part of the reason Finman sold Bitcoin was to participate in a $ 8,500 lottery to meet his idol, Reddit co-founder Alexis Ohanian. As a result, Finman won and met Ohanian.

https://preview.redd.it/vtlvs2z8b7j31.jpg?width=640&format=pjpg&auto=webp&s=5e8a14b2c89e1b314a9a6772d5ebfb5aacd48259
Alexis Ohanian, co-founder of Reddit, who inspired Finman.
Finman was inspired by his own negative experiences with the school to create his educational startup, called Botangle. Sharing this, Finman said he hates school. He said a teacher told him to quit school and get a job at McDonald's.

https://preview.redd.it/jqflxjm9b7j31.jpg?width=630&format=pjpg&auto=webp&s=64cbca8045fdc21420e3c3752d0e54e0bab5c7b4
In June 2016, Finman posted feedback on Instagram with an email screenshot sent to his former mentor with the subject line "Look at me now!".
The caption of the photo read: "I have to send this email to the high school teacher who told me to drop out and go to work at McDonald's."
And so Finman created Botangle – a company that pairs students with online teachers – and he dropped out to work on it himself.

https://preview.redd.it/odk2hlaab7j31.jpg?width=631&format=pjpg&auto=webp&s=5ae93a70c44bd868dfd8f4e9116bbeae6d3f11e3
And Finman raised the bet in a bet with his parents: If he became a millionaire at the age of 18, he wouldn't have to go to college.

https://preview.redd.it/gq0d4t0bb7j31.jpg?width=628&format=pjpg&auto=webp&s=9dd5d898e88dc057c1fdaa2b63a9e3f33fec81c8
After applying for an internship at a startup selling Sprayable Energy, Finman moved to Silicon Valley. Sprayable Energy is a product, described by him as "Red Bull to your skin". It's like a "topical caffeine spray," and the manufacturer recommends that users spray it on their necks to boost their energy slowly.

https://preview.redd.it/j4owd8lbb7j31.jpg?width=627&format=pjpg&auto=webp&s=d2c667da737000ff9763ebe18d3c7b71d344d0ae
About two years after starting Botangle, Finman sold his company for 300 Bitcoin at age 17. However, in a recent share, the young man said he bought the brand because "liked the name so much".

https://preview.redd.it/0jwpag8cb7j31.jpg?width=629&format=pjpg&auto=webp&s=c58a60e00fb64a132743191edd1c76805d489649
In June 2017, at the age of 18, Finman became a millionaire when the value of Bitcoin surpassed $ 2,700. It means he won the bet with his parents.
Finman's first car was an Audi R8, now he keeps it in a garage in Los Angeles. This 2020 R8 Coupe costs $ 170,000.

https://preview.redd.it/mal83stcb7j31.jpg?width=630&format=pjpg&auto=webp&s=29a208c6b0360d5bfee8c9c5244dc81bee76dbf5
However, the young man also began to cultivate what he called a quirky personality on social networking Instagram – "half … my own satire" – to draw attention to upcoming projects. mine.
And his Twitter profile is "The appeal of new money".

https://preview.redd.it/dego6gndb7j31.jpg?width=632&format=pjpg&auto=webp&s=279b601ff10fd7a9a77aac02d536491fe3d0296f
"I turned Instagram into a crazy tool, to look like an eccentric young Bitcoin millionaire. You know, kind of a pattern fit," Finman said.
In an interview titled "Bitcoin Millionaires Are Preparing to Go," Finman said: "I woke up from a blanket made of hundreds of dollars. I stood up, they fell off my face and then I put on my Yeezys shoes as soon as I got out of bed, then brushed my teeth with a high-class brush. It was just a normal day in life.

https://preview.redd.it/77jynxveb7j31.jpg?width=627&format=pjpg&auto=webp&s=cb31e00b5ed7252661b6ba2097db2a4b81d12691
In May 2018, Finman led a team of engineers to create an Octopus Octopus Dr. suit in real life.
In December 2018, Finman led Project da Vinci, in which a group of teenagers will launch satellites into space.

https://preview.redd.it/q4y7oyhfb7j31.jpg?width=630&format=pjpg&auto=webp&s=9e70f1f5852a40e1b0c38404c8844e632b65ddcf
In May 2019 Finman launched CoinBits, a Bitcoin investment tool.
In August 2019, the Metal Pay project launched with Finman as an investor and he called it "Facebook's Libra killer." Yahoo Finance called Metal Pay a "peer-to-peer payment startup".
"If necessary, I am ready to put all of my bitcoins here," Finman said in his project announcement video. "I am willing to bet everything".
"I don't usually look like an investor guy, but I just want to be part of the team and then just do something together, push it forward," Finman said.

https://preview.redd.it/z78avdagb7j31.jpg?width=629&format=pjpg&auto=webp&s=6c35d2f88bdda45ed525b400158c0edcfbe81fe7
Finman currently holds 446 Bitcoin, about $ 4.5 million, at the current exchange rate of over $ 10,000.
This guy also has an apartment in San Francisco and New York City, and he also spends considerable time in Los Angeles. Finman will turn 21 in October.

https://preview.redd.it/pfi8tywgb7j31.jpg?width=626&format=pjpg&auto=webp&s=c5235e054bc15f5bbc462500b2eab42e105d394b
Share on his next project, Finman said that he is preparing to do something in the field of education and will publish it soon to everyone."
submitted by haichauBK to teenagers [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

【EliteX】2019 World Blockchain Conference · Wuzhen

【EliteX】2019 World Blockchain Conference · Wuzhen

https://preview.redd.it/brju941p07041.png?width=1252&format=png&auto=webp&s=76927bd994263c12f1bc79d78de1756f51de7ff8
From November 8 to 9, 8BTC.com held the 2019 world blockchain conference in Wuzhen, where nearly 100 experts and scholars, technology tycoons, opinion leaders and founders of hot projects from global blockchain, digital assets, AI and 5G gathered. EliteX is also invited. It's a great honor to participate in such a large-scale conference, and we also feel the strength and enthusiasm of practitioners and enthusiasts from all regions of the world.
Alibaba, Tencent, Baidu, Jingdong, Huawei and other Internet giants gathered for the first time to discuss Wuzhen, which let many people see the layout and thinking of the giants in the field of blockchain.
Libra, central bank digital currency, domestic public chain, 5G, Defi… These rich hot topics let many people see the core trend of the blockchain era.
This Wuzhen conference focuses on several major topics. With breakthrough, transform and future, I deeply feel the charm of blockchain besides technology.

Breakthrough: birth, deduction and evolution of digital assets

Bitcoin's fourth production reduction was triggered at 630000 block heights, expected around 19 May, 2020. At that time, block bonus will be reduced to 6.25 pieces, and the daily issuance will be reduced to 900 pieces.
At this moment, the mining industry has been fully opened up, and miners are urgently ordering chips to expand their army and prepare for the war. A large number of futures mining machines rush to the front line. Bitcoin HashRate points to the 100E pass. However, with the end of the high water period, half reduction is bound to be a tragic elimination competition of mining machinery. The mining industry will usher in an iterative cycle. Bitcontinental is the mainstay, and HashRate will enter the stage of centralization. Mining profits will be uncertain.
At the same time, the global economy is in cold, the regional situation is tense, and the quantitative easing monetary policy is a point of no return. Bitcoin become digital gold like being acclaimed emperor. Whether it can become a reserve asset has become a hot topic for discussion. Some people swear that some people still have reservations.
In the secondary market, emerging exchanges and aggregate exchanges are covetous, and the head exchanges are attacking with futures, options, leverage, lending, DEX and other methods. The battle for the entry of cryptocurrencies has begun. It all depends on the bull market, but will it come? Will the division of mainstream and copycat be more obvious? Is the price of the currency bound to rise? But it is certain that all the heated discussion comes from blockchain.

Transformation: the underlying infrastructure of next generation blockchain

In 2019, there are not many opportunities left for the public chain. Cosmos and Algorand are on the scene, and Polkadot, Filecoin and Telegram are coming soon. The public chain is exploring the two dimensions of verticalization and wan-chain interconnection in depth. The simple dispute of efficiency has been expanded into the close combat of community users, developer ecology, landing applications and other dimensions. But do you really need so many public chains? Is the future a single chain world or one chain? Subsequently, the battle for the king of consensus between POS and POW has begun. Who can take the throne of power in the blockchain world?
In the field of underlying infrastructure, the privacy technology dominated by MimbleWimblew, the sharding technology dominated by Ethereum, the lightning network technology dominated by Bitcoin, and the two-layer network technology like Bytom are more mature. So, is the public chain really getting better and better? What technologies are likely to stand out for the future?
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Fusion: industrial integration and practice in the digital era

Blockchain has been suffering from "landing" and "small crowd" for a long time. But now the trend of technology integration, industry cross-border and scene landing has emerged. Blockchain is extending from a castle in the air to a real scene and business.
Technically, the combination of 5G, big data, AI and blockchain is ushering in more industry breakthroughs. In the industry, even the national government have begun to study blockchain technology, including Internet technology enterprises, banks, real estate, logistics. On the ground, more and more applications such as cross-border payment, digital content copyright, electronic certificate, supply chain finance, traceability, etc. , are used by enterprises to develop new business tracks.
However, how to popularize the value of blockchain, build new industrial standards, and promote user growth and cross-border cooperation have become the problems faced by the industry. If Bitcoin is the king of millions of users, can we see killer applications of tens of millions of users in 2020?
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These are several major topics, covering some of the most exciting and confusing directions in the blockchain industry today. It means that at this moment, the blockchain industry is facing considerable uncertainty, and it is difficult for you to sketch its future with a few strokes. At the same time, it also means a kind of certainty. When institutions come, regulators come, and giants come, you know it will grow vigorously in one direction.
Elitex was also honored to be invited to participate in offline activities organized by various major media, such as Beekuaibao, Jinse, Beep and Chainup. There is a warm atmosphere for participation. Let's have an in-depth interaction with people related to blockchain after the meeting.
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Thank you all for making this trip to Wuzhen more complete. Elitex will continue to remember its original intention and march forward bravely!
Author:Bom from EliteX
submitted by EliteXExchange to u/EliteXExchange [link] [comments]

The core concepts of DTube's new blockchain

Dear Reddit community,
Following our announcement for DTube v0.9, I have received countless questions about the new blockchain part, avalon. First I want to make it clear, that it would have been utterly impossible to build this on STEEM, even with the centralized SCOT/Tribes that weren't available when I started working on this. This will become much clearer as you read through the whole wall of text and understand the novelties.
SteemPeak says this is a 25 minutes read, but if you are truly interested in the concept of a social blockchain, and you believe in its power, I think it will be worth the time!

MOVING FORWARD

I'm a long time member of STEEM, with tens of thousands of staked STEEM for 2 years+. I understand the instinctive fear from the other members of the community when they see a new crypto project coming out. We've had two recent examples recently with the VOICE and LIBRA annoucements, being either hated or ignored. When you are invested morally, and financially, when you see competitors popping up, it's normal to be afraid.
But we should remember competition is healthy, and learn from what these projects are doing and how it will influence us. Instead, by reacting the way STEEM reacts, we are putting our heads in the sand and failing to adapt. I currently see STEEM like the "North Korea of blockchains", trying to do everything better than other blockchains, while being #80 on coinmarketcap and slowly but surely losing positions over the months.
When DLive left and revealed their own blockchain, it really got me thinking about why they did it. The way they did it was really scummy and flawed, but I concluded that in the end it was a good choice for them to try to develop their activity, while others waited for SMTs. Sadly, when I tried their new product, I was disappointed, they had botched it. It's purely a donation system, no proof of brain... And the ultra-majority of the existing supply is controlled by them, alongside many other 'anti-decentralization' features. It's like they had learnt nothing from their STEEM experience at all...
STEEM was still the only blockchain able to distribute crypto-currency via social interactions (and no, 'donations' are not social interactions, they are monetary transfers; bitcoin can do it too). It is the killer feature we need. Years of negligence or greed from the witnesses/developers about the economic balance of STEEM is what broke this killer feature. Even when proposing economical changes (which are actually getting through finally in HF21), the discussions have always been centered around modifying the existing model (changing the curve, changing the split, etc), instead of developing a new one.
You never change things by fighting the existing reality.
To change something, build a new model that makes the existing model obsolete.
What if I built a new model for proof of brain distribution from the ground up? I first tried playing with STEEM clones, I played with EOS contracts too. Both systems couldn't do the concepts I wanted to integrate for DTube, unless I did a major refactor of tens of thousands of lines of code I had never worked with before. Making a new blockchain felt like a lighter task, and more fun too.
Before even starting, I had a good idea of the concepts I'd love to implement. Most of these bullet points stemmed from observations of what happened here on STEEM in the past, and what I considered weaknesses for d.tube's growth.

NO POWER-UP

The first concept I wanted to implement deep down the core of how a DPOS chain works, is that I didn't want the token to be staked, at all (i.e. no 'powering up'). The cons of staking for a decentralized social platform are obvious: * complexity for the users with the double token system. * difficulty to onboard people as they need to freeze their money, akin to a pyramid scheme.
The only good thing about staking is how it can fill your bandwidth and your voting power when you power-up, so you don't need to wait for it to grow to start transacting. In a fully-liquid system, your account ressources start at 0% and new users will need to wait for it to grow before they can start transacting. I don't think that's a big issue.
That meant that witness elections had to be run out of the liquid stake. Could it be done? Was it safe for the network? Can we update the cumulative votes for witnesses without rounding issues? Even when the money flows between accounts freely?
Well I now believe it is entirely possible and safe, under certain conditions. The incentive for top witnesses to keep on running the chain is still present even if the stake is liquid. With a bit of discrete mathematics, it's easy to have a perfectly deterministic algorithm to run a decentralized election based off liquid stake, it's just going to be more dynamic as the funds and the witness votes can move around much faster.

NO EARLY USER ADVANTAGE

STEEM has had multiple events that influenced the distribution in a bad way. The most obvious one is the inflation settings. One day it was hella-inflationary, then suddently hard fork 16 it wasn't anymore. Another major one, is the non-linear rewards that ran for a long time, which created a huge early-user advantage that we can still feel today.
I liked linear rewards, it's what gives minnows their best chance while staying sybil-resistant. I just needed Avalon's inflation to be smart. Not hyper-inflationary like The key metric to consider for this issue, is the number of tokens distributed per user per day. If this metric goes down, then the incentive for staying on the network and playing the game, goes down everyday. You feel like you're making less and less from your efforts. If this metric goes up, the number of printed tokens goes up and the token is hyper-inflationary and holding it feels really bad if you aren't actively earning from the inflation by playing the game.
Avalon ensures that the number of printed tokens is proportional to the number of users with active stake. If more users come in, avalon prints more tokens, if users cash-out and stop transacting, the inflation goes down. This ensures that earning 1 DTC will be about as hard today, tomorrow, next month or next year, no matter how many people have registered or left d.tube, and no matter what happens on the markets.

NO LIMIT TO MY VOTING POWER

Another big issue that most steemians don't really know about, but that is really detrimental to STEEM, is how the voting power mana bar works. I guess having to manage a 2M SP delegation for @dtube really convinced me of this one.
When your mana bar is full at 100%, you lose out the potential power generation, and rewards coming from it. And it only takes 5 days to go from 0% to 100%. A lot of people have very valid reasons to be offline for 5 days+, they shouldn't be punished so hard. This is why all most big stake holders make sure to always spend some of their voting power on a daily basis. And this is why minnows or smaller holders miss out on tons of curation rewards, unless they delegate to a bidbot or join some curation guild... meh. I guess a lot of people would rather just cash-out and don't mind the trouble of having to optimize their stake.
So why is it even a mana bar? Why can't it grow forever? Well, everything in a computer has to have a limit, but why is this limit proportional to my stake? While I totally understand the purpose of making the bandwidth limited and forcing big stake holders to waste it, I think it's totally unneeded and inadapted for the voting power. As long as the growth of the VP is proportional to the stake, the system stays sybil-resistant, and there could technically be no limit at all if it wasn't for the fact that this is ran in a computer where numbers have a limited number of bits.
On Avalon, I made it so that your voting power grows virtually indefinitely, or at least I don't think anyone will ever reach the current limit of Number.MAX_SAFE_INTEGER: 9007199254740991 or about 9 Peta VP. If you go inactive for 6 months on an account with some DTCs, when you come back you will have 6 months worth of power generation to spend, turning you into a whale, at least for a few votes.
Another awkward limit on STEEM is how a 100% vote spends only 2% of your power. Not only STEEM forces you to be active on a daily basis, you also need to do a minimum of 10 votes / day to optimize your earnings. On Avalon, you can use 100% of your stored voting power in a single mega-vote if you wish, it's up to you.

A NEW PROOF-OF-BRAIN

No Author rewards

People should vote with the intent of getting a reward from it. If 75% of the value forcibly goes to the author, it's hard to expect a good return from curation. Steem is currently basically a complex donation platform. No one wants to donate when they vote, no matter what they will say, and no matter how much vote-trading, self-voting or bid-botting happens.
So in order to keep a system where money is printed when votes happen, if we cannot use the username of the author to distribute rewards, the only possibility left is to use the list of previous voters aka "Curation rewards". The 25% interesting part of STEEM, that has totally be shadowed by the author rewards for too long.

Downvote rewards

STEEM has always suffered from the issue that the downvote button is unused, or when it's used, it's mostly for evil. This comes from the fact that in STEEM's model, downvotes are not eligible for any rewards. Even if they were, your downvote would be lowering the final payout of the content, and your own curation rewards...
I wanted Avalon's downvotes to be completely symmetric to the upvotes. That means if we revert all the votes (upvotes become downvotes and vice versa), the content should still distribute the same amount of tokens to the same people, at the same time.

No payment windows

Steem has a system of payments windows. When you publish a content, it opens a payment window where people can freely upvote or downvote to influence the payout happening 7 days later. This is convenient when you want a system where downvotes lower rewards. Waiting 7 days to collect rewards is also another friction point for new users, some of them might never come back 7 days later to convince themselves that 'it works'. On avalon, when you are part of the winners of curation after a vote, you earn it instantly in your account, 100% liquid and transferable.

Unlimited monetization in time

Indeed, the 7 days monetization limit has been our biggest issue for our video platform since day 8. This incentivized our users to create more frequent, but lesser quality content, as they know that they aren't going to earn anything from the 'long-haul'. Monetization had to be unlimited on DTube, so that even a 2 years old video could be dug up and generate rewards in the far future.
Infinite monetization is possible, but as removing tokens from a balance is impossible, the downvotes cannot remove money from the payout like they do on STEEM. Instead, downvotes print money in the same way upvotes do, downvotes still lower the popularity in the hot and trending and should only rewards other people who downvoted the same content earlier.

New curation rewards algorithm

STEEM's curation algorithm isn't stupid, but I believe it lacks some elegance. The 15 minutes 'band-aid' necessary to prevent curation bots (bots who auto vote as fast as possible on contents of popular authors) that they added proves it. The way is distributes the reward also feels very flat and boring. The rewards for my votes are very predictable, especially if I'm the biggest voter / stake holder for the content. My own vote is paying for my own curation rewards, how stupid is that? If no one elses votes after my big vote despite a popularity boost, it probably means I deserve 0 rewards, no?
I had to try different attempts to find an algorithm yielding interesting results, with infinite monetization, and without obvious ways to exploit it. The final distribution algorithm is more complex than STEEM's curation but it's still pretty simple. When a vote is cast, we calculate the 'popularity' at the time of the vote. The first vote is given a popularity of 0, the next votes are defined by (total_vp_upvotes - total_vp_downvotes) / time_since_1st_vote. Then we look into the list of previous votes, and we remove all votes in the opposite direction (up/down). The we remove all the votes with a higher popularity if its an upvote, or the ones with a lower popularity if its a downvote. The remaining votes in the list are the 'winners'. Finally, akin to STEEM, the amount of tokens generated by the vote will be split between winners proportionally to the voting power spent by each (linear rewards - no advantages for whales) and distributed instantly. Instead of purely using the order of the votes, Avalon distribution is based on when the votes are cast, and each second that passes reduces the popularity of a content, potentially increasing the long-term ROI of the next vote cast on it.
Graph It's possible to chart the popularity that influences the DTC monetary distribution directly in the d.tube UI
This algorithm ensures there are always losers. The last upvoter never earns anything, also the person who upvoted at the highest popularity, and the one who downvoted at the lowest popularity would never receive any rewards for their vote. Just like the last upvoter and last downvoter wouldn't either. All the other ones in the middle may or may not receive anything, depending on how the voting and popularity evolved in time. The one with an obvious advantage, is the first voter who is always counted as 0 popularity. As long as the content stays at a positive popularity, every upvote will earn him rewards. Similarly, being the first downvoter on an overly-popular content could easily earn you 100% rewards on the next downvote that could be from a whale, earning you a fat bonus.
While Avalon doesn't technically have author rewards, the first-voter advantage is strong, and the author has the advantage of always being the first voter, so the author can still earn from his potentially original creations, he just needs to commit some voting power on his own contents to be able to publish.

ONE CHAIN <==> ONE APP

More scalable than shared blockchains

Another issue with generalistic blockchains like ETH/STEEM/EOS/TRX, which are currently hosting dozens of semi-popular web/mobile apps, is the reduced scalability of such shared models. Again, everything in a computer has a limit. For DPOS blockchains, 99%+ of the CPU load of a producing node will be to verify the signatures of the many transactions coming in every 3 seconds. And sadly this fact will not change with time. Even if we had a huge breakthrough on CPU speeds today, we would need to update the cryptographic standards for blockchains to keep them secure. This means it would NOT become easier to scale up the number of verifiable transactions per seconds.
Oh, but we are not there yet you're thinking? Or maybe you think that we'll all be rich if we reach the scalability limits so it doesn't really matter? WRONG
The limit is the number of signature verifications the most expensive CPU on the planet can do. Most blockchains use the secp256k1 curve, including Bitcoin, Ethereum, Steem and now Avalon. It was originally chosen for Bitcoin by Satoshi Nakamoto probably because it's decently quick at verifying signatures, and seems to be backdoor-proof (or else someone is playing a very patient game). Maybe some other curves exist with faster signature verification speed, but it won't be improved many-fold, and will likely require much research, auditing, and time to get adopted considering the security implications.
In 2015 Graphene was created, and Bitshares was completely rewritten. This was able to achieve 100,000 transaction per second on a single machine, and decentralized global stress testing achieved 18,000 transactions per second on a distributed network.
So BitShares/STEEM and other DPOS graphene chains in production can validate at most 18000 txs/sec, so about 1.5 billion transactions per day. EOS, Tendermint, Avalon, LIBRA or any other DPOS blockchain can achieve similar speeds, because there's no planet-killing proof-of-works, and thanks to the leader-based/democratic system that reduces the number of nodes taking part in the consensus.
As a comparison, there are about 4 billion likes per day on instagram, so you can probably double that with the actual uploads, stories and comments, password changes, etc. The load is also likely unstable through the day, probably some hours will go twice as fast as the average. You wouldn't be able to fit Instagram in a blockchain, ever, even with the most scalable blockchain tech on the world's best hardware. You'd need like a dozen of those chains. And instagram is still a growing platform, not as big as Facebook, or YouTube.
So, splitting this limit between many popular apps? Madness! Maybe it's still working right now, but when many different apps reach millions of daily active users plus bots, it won't fit anymore.
Serious projects with a big user base will need to rethink the shared blockchain models like Ethereum, EOS, TRX, etc because the fees in gas or necessary stake required to transact will skyrocket, and the victims will be the hordes of minnows at the bottom of the distribution spectrum.
If we can't run a full instagram on a DPOS blockchain, there is absolutely no point trying to run medium+reddit+insta+fb+yt+wechat+vk+tinder on one. Being able to run half an instagram is already pretty good and probably enough to actually onboard a fair share of the planet. But if we multiply the load by the number of different app concepts available, then it's never gonna scale.
DTube chain is meant for the DTube UI only. Please do not build something unrelated to video connecting to our chain, we would actively do what we can to prevent you from growing. We want this chain to be for video contents only, and the JSON format of the contents should always follow the one used by d.tube.
If you are interested in avalon tech for your project isn't about video, it's strongly suggested to fork the blockchain code and run your own avalon chain with a different origin id, instead of trying to connect your project to dtube's mainnet. If you still want to do it, chain leaders would be forced to actively combat your project as we would consider it as useless noise inside our dedicated blockchain.

Focused governance

Another issue of sharing a blockchain, is the issues coming up with the governance of it. Tons of features enabled by avalon would be controversial to develop on STEEM, because they'd only benefit DTube, and maybe even hurt/break some other projects. At best they'd be put at the bottom of a todo list somewhere. Having a blockchain dedicated to a single project enables it to quickly push updates that are focused on a single product, not dozens of totally different projects.
Many blockchain projects are trying to make decentralized governance true, but this is absolutely not what I am interested in for DTube. Instead, in avalon the 'init' account, or 'master' account, has very strong permissions. In the DTC case, @dtube: * will earn 10% fees from all the inflation * will not have to burn DTCs to create accounts * will be able to do certain types of transactions when others can't * * account creation (during steem exclusivity period) * * transfers (during IEO period) * * transfering voting power and bandwidth ressources (used for easier onboarding)
For example, for our IEO we will setup a mainnet where only @dtube is allowed to transfer funds or vote until the IEO completes and the airdrop happens. This is also what enabled us to create a 'steem-only' registration period on the public testnet for the first month. Only @dtube can create accounts, this way we can enforce a 1 month period where users can port their username for free, without imposters having a chance to steal usernames. Through the hard-forking mechanism, we can enable/disable these limitations and easily evolve the rules and permissions of the blockchain, for example opening monetary transfers at the end of our IEO, or opening account creation once the steem exclusivity ends.
Luckily, avalon is decentralized, and all these parameters (like the @dtube fees, and @dtube permissions) are easily hardforkable by the leaders. @dtube will however be a very strong leader in the chain, as we plan to use our vote to at least keep the #1 producing node for as long as we can.
We reserve the right to 'not follow' an hardfork. For example, it's obvious we wouldn't follow something like reducing our fees to 0% as it would financially endanger the project, and we would rather just continue our official fork on our own and plug d.tube domain and mobile app to it.
On the other end of the spectrum, if other leaders think @dtube is being tyranical one way or another, leaders will always have the option of declining the new hardforks and putting the system on hold, then @dtube will have an issue and will need to compromise or betray the trust of 1/3 of the stake holders, which could reveal costly.
The goal is to have a harmounious, enterprise-level decision making within the top leaders. We expect these leaders to be financially and emotionally connected with the project and act for good. @dtube is to be expected to be the main good actor for the chain, and any permission given to it should be granted with the goal of increasing the DTC marketcap, and nothing else. Leaders and @dtube should be able to keep cooperation high enough to keep the hard-forks focused on the actual issues, and flowing faster than other blockchain projects striving for a totally decentralized governance, a goal they are unlikely to ever achieve.

PERFECT IMBALANCE

A lot of hard-forking

Avalon is easily hard-forkable, and will get hard-forked often, on purpose. No replays will be needed for leaders/exchanges during these hard-forks, just pull the new hardfork code, and restart the node before the hard-fork planned time to stay on the main fork. Why is this so crucial? It's something about game theory.
I have no former proof for this, but I assume a social and financial game akin to the one played on steem since 2016 to be impossible to perfectly balance, even with a thourough dichotomical process. It's probably because of some psychological reason, or maybe just the fact that humans are naturally greedy. Or maybe it's just because of the sheer number of players. They can gang up together, try to counter each others, and find all sorts of creative ideas to earn more and exploit each other. In the end, the slightest change in the rules, can cause drastic gameplay changes. It's a real problem, luckily it's been faced by other people in the past.
Similarly to what popular and succesful massively multiplayer games have achieved, I plan to patch or suggest hard-forks for avalon's mainnet on a bi-monthly basis. The goal of this perfect imbalance concept, is to force players to re-discover their best strategy often. By introducing regular, small, and semi-controlled changes into this chaos, we can fake balance. This will require players to be more adaptative and aware of the changes. This prevents the game from becoming stale and boring for players, while staying fair.

Death to bots

Automators on the other side, will need to re-think their bots, go through the developement and testing phase again, on every new hard-fork. It will be an unfair cat-and-mouse game. Doing small and semi-random changes in frequent hard-forks will be a easy task for the dtube leaders, compared to the work load generated to maintain the bots. In the end, I hope their return on investment to be much lower compared to the bid-bots, up to a point where there will be no automation.
Imagine how different things would have been if SteemIt Inc acted strongly against bid-bots or other forms of automation when they started appearing? Imagine if hard-forks were frequent and they promised to fight bid-bots and their ilk? Who would be crazy enough to make a bid-bot apart from @berniesanders then?
I don't want you to earn DTCs unless you are human. The way you are going to prove you are human, is not by sending a selfie of you with your passport to a 3rd party private company located on the other side of the world. You will just need to adapt to the new rules published every two weeks, and your human brain will do it subconsciously by just playing the voting game and seeing the rewards coming.
All these concepts are aimed at directly improving d.tube, making it more resilient, and scale both technologically and economically. Having control over the full tech stack required to power our dapp will prevent issues like the one we had with the search engine, where we relied too heavily on a 3rd party tool, and that created a 6-months long bug that basically broke 1/3 of the UI.
While d.tube's UI can now totally run independently from any other entity, we kept everything we could working with STEEM, and the user is now able to transparently publish/vote/comment videos on 2 different chains with one click. This way we can keep on leveraging the generalistic good features of STEEM that our new chain doesn't focuses on doing, such as the dollar-pegged token, the author rewards/donation mechanism, the tribes/communities tokens, and simply the extra exposure d.tube users can get from other website (steemit.com, busy.org, partiko, steempeak, etc), which is larger than the number of people using d.tube directly.
The public testnet has been running pretty well for 3 weeks now, with 6000+ accounts registered, and already a dozen of independant nodes popping up and running for leaders. The majority of the videos are cross-posted on both chains and the daily video volume has slightly increased since the update, despite the added friction of the new 'double login' system and several UI bugs.
If you've read this article, I'm hoping to get some reactions from you in the comments section!
Some even more focused articles about avalon are going to pop on my blog in the following weeks, such as how to get a node running and running for leadewitness, so feel free to follow me to get more news and help me reach 10K followers ;)
submitted by nannal to dtube [link] [comments]

[DISCORD CONV.] Can't help falling in love with IF

5/2
David Sønstebø - Today at 2:33 AM @Dusty Word, world leading companies on boarded weekly, cutting edge tech being released monthly, top talent hired bi-daily. IOTA is moving so fucking slow
David Sønstebø - Today at 2:39 AM I am refurbishing and renovating my whole house atm. and even just basic shit like painting a room where you know exactly the square meters, how much paint you need, you know exactly how much floor you need etc.
David Sønstebø - Today at 2:39 AM You can time it in your head, but reality will kick in and some uncertain variable will cause a delay
David Sønstebø - Today at 2:40 AM I was mounting my TV on my wall the other day and had the screws necessary, but they were 1 ( !!!! ) cm too short, which postponed it a whole day
Bambiota - Today at 5:26 AM When AMA?
leechi - Today at 5:26 AM david, can fake people stop real shit?
David Sønstebø - Today at 5:27 AM @Bambiota AMA will come in May, but there's sooo much lined up, so we want to get a few big announcements (including Ecosystem) out before, so everyone has some meat to tenderize for the Q&A @leechi Only temporary.
Apache Sidewinder 🚁 - Today at 5:26 AM David what's your favourite Guns N Roses song?
David Sønstebø - Today at 5:27 AM @Apache Sidewinder 🚁 Hmmm, good question. Probably Slash's guitar solo in Estranged
5/3
travel! - Today at 2:47 AM @David Sønstebø , is MOBI the only few « big » announcement before AMA ?
David Sønstebø - Today at 2:48 AM no....
David Sønstebø - Today at 3:19 AM With CRISPR gene-data traded securely over Tangle will become a reality
David Sønstebø - Today at 3:24 AM The thing is, once you get all of these meta-telematics data secured, you can sell them to other producers, including the gene fenotype, so they can reproduce the yield and quality The data will be very valuable
David Sønstebø - Today at 3:28 AM @yoda beautiful, agritech is high on the IOTA agenda
Hapa Haole - Today at 3:41 AM @David Sønstebø Since one of IOTA's strong points is Data integrity with sensors etc, are you guys receiving any backlash from companies that...like to lie and don't want to be invovled in that since a lot of big companies are corrupt lol?
David Sønstebø - Today at 3:42 AM @Hapa Haole Nah, I get the question though. However, this is a reality that is coming whether the entity likes it or not, by opting out you make yourself the target of suspicion
t00k - Today at 3:43 AM @David Sønstebø Okay if I PM you about a company in Sweden? Worked there before and have some connections left.. Want to set up something.. Or talk to someone else?
David Sønstebø - Today at 3:44 AM @t00k that'd be nice, we got some shit going in Sweden as you know (hint hint eKrone)
not batman - Today at 3:44 AM @David Sønstebø seriously? the swedish national crypto?
David Sønstebø - Today at 3:46 AM @not batman Actually it's good, it gives me TV and sound I can't provide any official update on eKrone yet, just that it's still ongoing
Alebu - Today at 3:54 AM David are there plans for an IF office in Switzerland?
David Sønstebø - Today at 3:54 AM @Alebu Not right now. Oliver Bussmann being president of Crypto Valley there and being part of IF is sufficient for now
matin619c - Today at 3:58 AM @David Sønstebø The United Arab Emirates (UAE) has launched a ‘UAE Blockchain Strategy 2021’, aiming to conduct 50% of government transactions at the federal level using blockchain technology by 2021. Great to see today IOTA as part of MOBI initiative announcement at Future Blockchain Summit in Dubai. Appreciate if IOTA is made available on BitOasis exchange - the only reliable exchange in Middle East for United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, and Oman to enter with fiat.
David Sønstebø - Today at 4:00 AM @matin619c you got a connect? We don't tend to reach out to exchanges, we leave it up to them
Sebastian - Today at 4:03 AM @David Sønstebø How is the audit of the wallet progressing
David Sønstebø - Today at 4:03 AM @Sebastian Very well
northernwhale Sidewinder - Today at 4:27 AM @David Sønstebø David! Do you have plans to change the iota logo at all ? I'm thinking of making something that will cost a fair amount from my pocket and want it to age well. Nda response is fine too x
David Sønstebø - Today at 4:28 AM @northernwhale Sidewinder I think the IOTA logo is already timeless. I see no reason for changing it.
w4lker - Today at 4:31 AM Anyone knows who came up with the design for the iota logo?
David Sønstebø - Today at 4:43 AM @w4lker me and another designer
5/4
Bernie Sanders - Yesterday at 11:25 PM Is there any plan for a laymans write up of how Q works, I think it would help a lot. Because right now Qubic is just a list of stuff that was on the roadmap
David Sønstebø - Yesterday at 11:26 PM @Bernie Sanders Wait until the date, then all of these things will come, yes
timvanhelsdingen - Yesterday at 11:26 PM there is a lot of EUUSD stuff in teaser, seems like the “after Q you dont need to go into fiat” wasn’t a joke
Eric Hop - Today at 1:22 AM Remember Star Trek? Q was omnipotent!
Qgelfisch - Today at 1:35 AM @Come-from-Beyond why smart contracts still in progress on your twitter bio?:
Come-from-Beyond - Today at 1:36 AM That text will be changed by a qubic
Eric Hop - Today at 1:37 AM Every day is a good day when you can work at IOTA
Come-from-Beyond - Today at 1:37 AM [is today a good day?] that kind of questions will be answered by Qubic oracles [Will IOTA's smart contracts be as powerful as Ethereum's smart contracts?] no much more powerful :
Eric Hop - Today at 1:38 AM Since when are ETH contracts smart?
Eric Hop - Today at 1:41 AM Can't airdrop what has already been distributed completely Our vision for IOTA is that everything and everyone uses IOTA as preferred coin. It's silly to build on top of IOTA and not use the built-in fee-less token.
CryptoSufi - Today at 1:44 AM So computational work is valued in iota
Eric Hop - Today at 1:45 AM Everything is. Why would you want to deal with exchange rates?
Eric Hop - Today at 1:52 AM In 30 days you will be able to come up with your own use cases. Qubic will be yet another tool for the community to come up with awesome solutions like IOTA, Flash, MAM, etc.
Come-from-Beyond - Today at 2:33 AM [wee gonna be rich] i doubt, most will sell at 1/10 of the real price
Come-from-Beyond - Today at 6:46 AM [Asia waking up?] No, it's just people expecting that Asia is waking up. Wait for real Asia.
Eric Hop - Yesterday at 2:01 AM Read David's announcement text if you want food for speculation.
Eric Hop - Yesterday at 3:49 AM https://medium.com/bethereum/how-oracles-connect-smart-contracts-to-the-real-world-a56d3ed6a507 ETH based but the general sentiment is the same
MrWiggles - Yesterday at 4:50 AM I thought iota is for interoperability, not for killing other Coins
Eric Hop - Yesterday at 5:03 AM It's called collateral damage. Or desired side effects
Eric Hop - Yesterday at 5:19 AM @Mark Thanks. Like I said it was hard to contain our excitement and not fuel the hype constantly knowing that the hype did not do it justice. We haven't even begun to explore the possibilities that Qubic will open the community up to yet. There will be killer apps that no one have even thought of yet. I expect a similar organic growth like happened with the Internet and such. It's like crypto all over again. Provide people with a new toy/tool and see what they come up with. Just as long as it's not ICO- or kitten-based
Eric Hop - Yesterday at 5:36 AM I never speculate on price. The only thing that seems sure is that price will go up. Demand for iotas will start driving the price at some point.
Eric Hop - Yesterday at 5:37 AM Price is nice. But it's about the new tech and what that enables us to do for humanity. Wouldn't it be nice to decentralize the shit out of conglomerats, banks, and government?
Eric Hop - Yesterday at 5:41 AM Like I said. It was hard to balance the excitement with not wanting to fuel the hype
Eric Hop - Yesterday at 5:42 AM And actually, nothing has changed in that regard. You guys will now speculate wildly with the limited new information and already I've seen outlandishly off ideas, and some people get really close.
eremal - Yesterday at 5:47 AM Yeah pretty much, but temperature sensors over an area as big a city might be a challenge. Im thinking more of how the overlaying consensus mechanism of the Tangle is that a transaction is confirmed when all nodes on the network has verified it indirectly or directly. The verification is done by each node checking their ledger if the transaction is possible or allowed. Now imagine a set of nodes having a sensor that tells them wether info X is true or not. And then you collect all these nodes into a consensus structure. You ask these nodes if X is true by issuing a transaction, and once all these nodes has confirmed it you can be positive that it is true
Eric Hop - Yesterday at 5:49 AM See? You have been thinking about this already! You're pretty much describing Oracles (the sensors, that post real-world info) and a smart contract that integrates the data into a result.
Eric Hop - Yesterday at 6:10 AM @shieeet The fact that you have thought about this should be a hint that other people may have done it as well. Especially the people trying to make this happen. That being said, I always love this kind of input, because there is no guarantee we haven't overlooked problem areas. We're as human as anyone else and make mistakes. So by all means keep throwing stuff like this towards us and we'll incorporate it into our solutions. There are a bunch of developments underway to lower the bar for participating in the network, and to come up with great incentives to participate. The problems are very visible. The solutions will take time to test and implement. This is an organigc process that will take time. Look at what Bitcoin had to overcome and after all these years it has hardly progressed beyond a speculation vehicle. In fact it has lost terrain as a payment system due to the fees. Now everyone in that space it trying to solve that problem. We see similar things happening with IOTA. We removed certain blockchain limittions by designing a completely new system, but that one of course has its own new limitations. One that everyone is going to bump into is network bandwidth for example.
Pitbullworkout - Yesterday at 6:17 AM @Eric Hop you've said a couple of times to read between the lines in David's announcement. I'm guessing JINN and possibly a third advisor to IF from large chip manufacturer?
Eric Hop - Yesterday at 6:17 AM We cannot reveal more at the moment, or we would have. We will reveal when we are ready to. Which is planned for June. But we also wanted to give you guys at least soemthing for the time being. Hence this teaser announcement.
Eric Hop - Yesterday at 6:19 AM We know from past experience that any news in crypto is short-lived. Tomorrow could bring another FUD article. We are not focused on that. We are focusing on getting shit done. And we want the community to share our excitement.
Eric Hop - Yesterday at 6:23 AM If you know your token value will multiply due to what you're building anyway, would you be selling right now? We don't need to pump the price. Once IOTA takes off demand for tokens will skyrocket. So we focus on making sure IOTA takes off.
Eric Hop - Yesterday at 6:27 AM Here is another instance of where you could solve a perceived problem as a community member. Just start thinking out of the can't-do-timestamps box and come up with a solution that makes timestamps a reality or unnecessary.
Eric Hop - Yesterday at 6:29 AM In my experience, saying 'this can't be done' you are always right. You won't be able to do it. And then someone who does not say that line comes along and does it anyway.
ZenJourney - Yesterday at 7:46 AM As someone working in a analytics, how can I prepare best to fully utilize Q?
paul douglas - Yesterday at 7:59 AM I probably can't say about how to prepare without violating the hush policy
Eric Hop - Yesterday at 11:29 PM Here's another hint: we revealed 3 things about Qubic. You guys only discuss 2 of them.
Yellow - Yesterday at 11:29 PM I wrote a small piece about my thoughts on Qubic. Would love to get some discussion going on: https://www.reddit.com/Iota/comments/8gzk7u/qubic_potential_impact/
Eric Hop - Yesterday at 11:39 PM Seriously, by far the best write-up I've seen out there so far. No weird speculations and everything thought through brilliantly.
Eric Hop - Yesterday at 11:44 PM You've taken the few things we gave you and thought them through without going off on wild speculations and turned it into a coherent story. Very impressive. This article should be basic reading for everyone interested in Qubic.
Eric Hop - Today at 12:15 AM We've already indicated in the past that IOTA is building protocols for IoT that are supposed to become the standard. Look at IOTA itself. It's very basic. Yet the community and IF members have come up with interesting protocols on top of that to make it more interesting. MAM, Flash, cheques, aliases, etc. And now Qubic. I see the same thing happening there. Give people a new toy to play with and they will come up with things you never even envisioned.
Eric Hop - Today at 12:17 AM Of course. We make stuff for you guys to play with. It's community effort, permissionless innovation, that will create wonderful stuff. Just look at what Semko is doing with Carriota for example.
Eric Hop - Today at 12:17 AM Our task is to provide secure, working, scalable protolcols.
Eric Hop - Today at 12:18 AM That's why I always compare it to the early internet. You had TCP/IP to play with. Then someone came up with HTTP on top of that. Later someone put HTML on top of that.
Eric Hop - Today at 12:19 AM IOTA is TCP/IP. Qubic could be HTTP or even HTML. I don't kow yet.
Eric Hop - Today at 12:19 AM And just as with the internet it will be gradual and organic growth.
Eric Hop - Today at 12:24 AM I actually created the original web page for the qubic teaser. With my 6-year old web app development skills. At that time you would test against all major browsers on desktop and no one even considered mobile. So I made the mistake of using my old skills and forgot to test on mobile. Luckily Edward caught me on that. So they converted the page to a more modern version. I was blown away by how many things changed in those 6 years. The JS they used was almost unrecognizable. This is what I see happening with IOTA, with MAM, with Qubic, etc
submitted by btlkhs to Iota [link] [comments]

Bitching/Profiteering/HODLing Has Killed Bitcoin [X-Post from /r/Bitcoin]

I will say from the outset that I am a genuine believer in Bitcoin as a payment mechanism, as a technology both in terms of the actual technological product and also the open source, community-based ethos. I have run my own Bitcoin node for free for the last 3 years, written (and open sourced) a status script so that others who run gratis nodes can show them to the world. I hold a very minimal amount of cryptocurrency, and have no desire to buy any.
I personally think that Bitcoin and the wider cryptocurrency world is the future of finance. If I could, I would like my salary paid in Bitcoin, I would like my morning coffee paid in Bitcoin, whether it's at a little independent store in Bristol or a global chain in London, or New York or Paris. One of Bitcoin's often-overlooked strengths is its global nature, and another of those strengths is the ethos under which it was founded.
HOWEVER ...
After a lot of discussion and reading (both the wider news and this and other subs), I have come to the conclusion that Bitcoin is nearing death, and the killer blow is most likely to come from the very community that should be nurturing it, in the form of one very common human trait: greed.
The economics of the current Bitcoin price isn't really that hard to grasp, on a basic level it's elementary supply/demand. Bitcoins are very desirable, there's a limited supply of them, therefore they're expensive. However, that characteristic is most common of a product, something that can be bought and sold as a commodity, not a currency.
I can guarantee that when most newbies buy Bitcoin, they don't buy them to spend. They buy them so that they can sell them later for a profit. It's this fundamental greed, the pursuit of value, the "to the moon" and "buy the dip" and "HODLing" that has given Bitcoin this commodity-like appearance and has ultimately killed any chance of it being a serious alternative to the likes of Visa and MasterCard.
What a lot of people don't seem to understand is that this opportunistic behaviour undermines the core purpose of Bitcoin's existence, and will ultimately hamper its ability to be taken seriously as a credible alternative to regular banks, which will in turn lead to its downfall, or at the very least its usage restricted to niche sellers who understand the volatility and nuances.
How many people walk into a currency exchange and buy a load of USD or GBP in the hope that in six months they can turn a profit? In order for Bitcoin to succeed, it has to be stable. Both in terms of technology (and I take no particular side in any of the ongoing bitching) and value. For a retailer to accept Bitcoin as payment, the business needs to know that the value is stable, and that they won't be left bankrupt overnight - the inherent volatility will mean that as soon as they have taken payment in BTC from the customer, the retailer will move the funds into a stable currency, which will defeat the entire point of having originally taken the payment in BTC.
On the subject of the current state of the Bitcoin community (basically - there isn't one) - this is what happens when open source software gets monetised, and the early adopters who have all gotten very rich very quickly get very greedy. They all want "the best" for the platform, which will always - consciously or subconsciously - be affected by their personal holdings.
Ironically I saw many positive news stories, both in the crypto press and the wider media, after the burst of the 2013 bubble. Payment providers were getting on board. The technology was being treated as a technology, not a commodity. Now, on the other hand, every news story is about the value, how it's hit another all-time high, which then feeds the entire circle because more people want to jump on the get-rich-quick bandwagon, which in turn drives the demand higher, which then drives the price higher.
This also then has a knock-on effect on the price of transactions. People don't think in Bitcoin (for now), they think in fiat. So, even if transaction fees are small portions of a BTC, when those small portions are actually worth a non-trivial amount of fiat currency (e.g. to the price of a beer, or another coffee), people will be put off, and the value has dealt another blow to Bitcoin's credibility.
Sadly, humans have killed Bitcoin, by being human.
submitted by CraigWatson1987 to BitcoinDiscussion [link] [comments]

This is crypto!

Bitcoin isn’t guaranteed to make you a better person. But it’s almost certain to have made you a wiser and more self-deterministic one. As the saying goes, give a man crypto and you feed him for a day. Teach a man crypto and you feed him for life.
Not All Riches Can Be Measured in Zeroes
The truth is, you could walk away from all of this tomorrow and crypto would have set you up for life. Not financially necessarily, but in every other respect, you’re better equipped than you’ve ever been for anything the world may throw at you. And there’s not a 51% attack or exchange hack in the world that can change that. Quantum computers could pop every private key and burn this whole damn cryptocurrency revolution to the ground and you’d emerge digitally poorer but inestimably richer.
It turns out that bitcoin’s killer feature isn’t blockchain or decentralization – it’s knowledge. Sure, brains alone won’t pay the bills, but the skills you’ve acquired since entering this space and will continue to acquire for every day you remain will benefit you more than any 10x altcoin ever could.
Cryptocurrency has already made you rich. You just didn’t notice
submitted by jgapickachu01 to CryptoCurrency [link] [comments]

Here is my argument for a free market alternative to universal basic income

Here are my premises

So what is this solution? UBI is obviously one, but I think there is another; Blockchain Securities.

For those who don't know, a token is necessary for a blockchain to work, it doesn't have to be strictly a currency or "cryptocurrency". In fact I'd say cryptocurrency is not the killer app for blockchain technology. There will definitely be a few cryptocurrencies that dominate and are necessary for the infrastructure of this new economy to work, but it's like how no one uses google because they like visiting the google.com per se, they use google because they like visiting other sites and google happens to be the best way to get from A to B.
Again this isn't common knowledge but there is something new to the industry called "security tokens" on blockchains, functionally you can use them in the same way you'd use bitcoin. You can divide them up to several decimal places and send fractions of a penny to anyone anywhere in the world for almost no cost (compared to traditional means). However, they have the added function that cryptocurrencies like bitcoin don't have, and that's being a security. One example is "crypto-stocks" which are tokens on a blockchain, as a financial instrument these are basically identical to traditional stocks as they actually pay you dividends and give you some small portion of ownership in a company. By my count there is at least a few dozen of these already on the market. A notable example is nexo which just a few days ago was officially marked as compliant by the U.S. Securities and Exchange Commission as a security. It a real stock that runs on a blockchain and that not only pays dividends but they do it monthly and are considering doing it weekly, as opposed to traditional stocks that pay out quarterly or annually. They can do that because blockchains make it much more logistically possible.
The advantages of crypto-stocks over traditional stocks are substantial. One advantage is you can purchase them (in principle) in any amount, in minutes. Traditional stock investing has absurdly high fees if you go through a firm or advisor. And not only that, you also have to have several thousand dollars in cash just to open an account in a lot of places. In order to be an "accredited" investor in America you essentially have to be a millionaire. This makes it very difficult for even middle class people to invest.
What's particularly interesting about crypto-stocks that wasn't really practical before blockchain, is that they would be just as fungible and divisible as currency. Imagine walking into a coffee shop and instead of paying with USD $$$ you pay with some composite of your portfolio. You buy a coffee and pay with $1.0 of Tesla stocks and $0.5 of Amazon stocks and maybe $0.5 of an asset backed security like gold, or any arbitrary combination of your choice that you set up in your personal settings of your payment app. And of course the coffee shop could receive fiat or cryptocurrency regardless of what you used to pay as the conversion is done instantly on the back end. And it's all done cheaper than a traditional credit card transaction. The major advantage of having stocks in your account as opposed to a national currency, is not only will you not lose money because of inflation, you will gain money because of the dividends just for sitting in your account. Also there is a lot of existential risk to your currency if you don't have the privilege of living in a first world country(See, Greece, Valenzuela, Zimbabwe, ect.).
So now lets imagine massive unemployment because of automation. Companies are making insane profits. If you can manage to buy some of these crypto-stocks, which should be possible since you can buy them in tiny amounts. Then you can receive passive income and you have a small piece of ownership in a company. Since (crypto)stock yields will be extreme in this scenario where companies are extremely profitable, you might be able to get enough to sustain your existence or even profit! If you think about it, it's almost the same as UBI in a way since with UBI the government just takes taxes from the companies, rather than profit directly, and then redistributes the wealth accordingly. However, the crypto-stock model removes the need for the government as the middleman and would arguably be much more efficient since funds can be distributed to everyone within minutes at high frequencies rather than having to go through an entire costly and slow tax system.
There are even more advantages to this system like removing tax burden of UBI on smaller companies which helps with innovation, since they are only paying if they make some profit. It also keeps competition between companies high which keeps them running efficiently. This system gives us all the benefits of wealth redistribution but the practicality and efficiency of a freemarket. And it encourages people to save since the more they save the more profit they can make in the long term which will reduce consumerism to the necessarily amount, which will hopefully have a positive impact on how much we pollute. Of course there will still be a gap between rich and poor but there would still be with a UBI model.
Everyone could decide which companies they want to invest in, which means people are more directly participating in the global economy, making it more efficient. Of course not everyone has the time or ability to be a stock analyst but that problem is easily solved with index funds, which would also be a crypto-stock.
TL:DR: Blockchain + insanely profitable companies due to AI and automation would allow for a free market alternative to UBI. It allows everyone to get a share of the profits of mega companies. It can shift the economy from a debt based one to an equity based one.
submitted by cryptonewsguy to Futurology [link] [comments]

"Code is Law": Comedy Gold Survey on Ethereum

Survey ID: 00001 Coin: Ethereum Client: Tyler Durden

Executive summary:

Ethereum is almost certainly the number 2 coin in comedy gold. It will likely surpass Bitcoin in comedy gold long before it passes it in market cap. Thanks in large part to a spam-based marketing campaign on Reddit, it also has a dedicated base of critics.
After its IPO, it was known as “Inthereum” for a while, infinitely powerful of course, as vaporware can do anything. It had a major version release, then another. Finally, a major smart contract, in terms of valuation, came along: The DAO. Not to be confused with other DAOs, before and after. The DAO was the biggest. It was going to be the best; it already was the best! Euphoria was off the charts.
Until just a few months in, a bug was found. And the killer app became the flash point. What could they do? Well, hard fork and give the money back, of course! And so they did.
“Code is Law”; but this is actually good for Ethereum because “[a]lthough some do question the analogy ‘code is law’. I do not. We just found out that we have a supreme court, the community!” [1]
After the D'OH, Ethereum struggles to top its ATH comedy gold, but there is still a bright future for popcorn and comedy gold from Ethereum.

5 Largest Veins of Comedy Gold

Here are the largest comedy gold veins in Ethereum in potential reserves in our estimation in approximately descending order:
  • Cultlike euphoria - Now, this can certainly be said to be common to almost all cryptocurrencies. But Ethereum seems special here, even more than Bitcoin's community. There is a real belief here that this coin is going to change the world. This helps play into a "this is very good for Ethereum" mindset, wherein even the D'OH fork was a great success!
There is no greater terror than a fiend on ether.
  • Vitalik Buterin - The best name in cryptocurrency! Young genius central to Ethereum and almost universally seen as the most important leader in the project. In our view, his endorsement and leadership during the D'OH fork led to that route being taken. That is, we believe if he had opposed it from the start, he may have been able to prevent it or at least have led to what is now called ETC being the dominant of the two.
And so in our view, Mr. Buterin runs a billion dollar cryptocurrency right now. He and his team seem to have done reasonably well so far; it seems likely they'll continue to thrive. To the best of my knowledge, confirmed on /ethereum, there hasn't been a drug market implemented in Ethereum or trading with ETH so far. But while it seems like a terrible idea, because of the lack of privacy and proven mutability of contracts, it seems like eventually there's going to be a major drug market accepting ETH just because it has such a high value. And, they point out, monero and zcoin’s core privacy feature will apparently be available on ETH after this next fork, so look forward to anonymous ETH fueling drug markets!
And then the interesting question will be raised of how Chief Justice Buterin will rule on the case, whether it is worthy of an intervention or not. If not a drug market, then another buggy and hacked contract. Or a hacked exchange, and the question of whether to make it or its users whole, or "let the hacker win".
  • DAOs - From the beginning, it was proposed that Ethereum itself and its reserve fund would be turned into a DAO. How exactly this was going to happen would be figured out later of course. There was an initial estimate of 2016 for the transition.
Of course, in 2016, The DAO and the D'OH happened. I'm not aware of a current further push to put all of ETH's future funding into a DAO. But I'm sure the topic will resurface. And it will be hilarious on so many levels. The DAO actually collapsed too soon for peak comedy gold extraction. It had been predicted that there would be no consensus on any proposals and that nothing would be funded, and that there would be gold from that. But it was just a few months in when the bug was found. And while the D'OH fork was certainly a rich vein of comedy gold, it wasn't as rich as what the DAO could have been if it had floundered around for a year or so before the hack.
Surprisingly, there's actually a running, apparently working DAO on ETH that was started even before The DAO: digixDAO. If it keeps on running, it will continue to be hilarious as other DAOs fail to learn from it. If it fails, there's all the more hilarity for Ethereum, making it the platform where anything complicated enough to look like an original use case will break. The very existence of digix is proof-of-comedy-gold.
  • Immutability - The whole central notion of immutability is going to be a recurring question for Ethereum after the D'OH. While there was a lot of sentiment of "just this once and never again" at the time, there will someday be another major issue, and the precedent will mean that at least a major debate among the community will be had. Ethereum is "mostly immutable". Bitcoin is far better protected here, because while it's true they've hard forked to fix a bug before, that was years ago and the community is far more fractured now. Ethereum has a demonstrated capacity to do both routine and controversial hard forks. This strength is also a challenge, as it will invite constant legal and ethical questions about when it's appropriate to modify the chain itself with a fork: that is, rolling back some or all transactions after major bugs, thefts, frauds, and so forth.
  • Concentration of funds - This one I'm just guessing at. Although rich lists do exist, obviously one entity like an exchange could pool funds in an address without one person owning that much, or one person could splits their coins among many accounts. But it gives a rough guide. In Bitcoin, the top 113 addresses, having more than 10,000 BTC, in total are 17.46% of the current supply [ 2 ]. And in Ethereum, it's true that the top two accounts are marked as exchange accounts [ 3 ]. Still, having lots of funds concentrated in a single exchange wallet seems to still have some potential for comedy gold. In Ethereum, the top 50 addresses have more than double the proportion of the top 113 in Bitcoin, a bit over 40% of the current supply. My guess would be there are still a lot of people who invested heavily in the initial ICO who have held onto a significant portion of their initial ETH. While some of these top addresses are exchanges, I think there are probably many individuals represented in here as well, and every one of them is a multimillionaire from this account alone.
Of course, so far, because ETH is still smaller than BTC in overall market cap, these top addresses aren't as huge as the top addresses in Bitcoin in current market value. But if ETH were to overtake BTC's current position with a relatively unchanged distribution, there would be some real comedy gold coming off this factor. Cribs could have a spin-off Ethereum series.
This concentration was a part of making The D'OH what it was in my view as well: in Bitcoin, there would never have been so much of the coin tied up in one particular venture, at least not now. But in Ethereum, this concentration and groupthink can combine to hilarious effect.

A Brief History of Comedy Gold in Ethereum:

“Laws, like sausages, cease to inspire respect in proportion as we know how they are made” - John Godfrey Saxe
In the beginning, there was an offering. The greatest coin the world had ever seen; step right up and buy it! There was even code; this is no vaporware! Sure, there was more work to be done, but the ICO would fund that work, the founders would get a little, and create a reserve for the future and the rest would be mineable.
There was also some of the most vociferous objections on BCT, declaring that the stake allocated to the founders was too large, pointing to other coins which had done smaller or done without. Arguing against the reserve; arguing against having a presale at all. Some people, of course, completely failing to read the documentation accurately to see what was even being proposed. And an almost complete radio silence from this large team working around the clock on Ethereum.
It took some months from when the initial ANN was made until the sale actually started, but by the time they had their sale, they had perhaps the best documentation at launch to-date. Of course, there were some areas which seemed to lack some detail, like the budgeting, but never mind that, it was finally launching!
Launching the sale, at least. In July and August of 2014, Ether was first sold. It was described as “fuel” for the virtual machine they were going to build [ 4 ].
And then, a year later, Ethereum was released live. By July 2016, it had already had its first major crisis after The DAO was hacked and the D’OH fork introduced in response.
But the fact that Ethereum was ever released, and that it was released so quickly, is truly incredible. There was more than one person who thought that the stated goals of Ethereum were not possible. And, of course, many initial goals and deadlines didn’t happen. But unlike the railbirds on BCT were convinced, the team did not fail nor did it run off with the money. They were given a blank check, and they actually delivered a working product which has been successful so far financially.
Of course, having its flagship smart contract go belly-up quite so quickly after having finally gotten a “killer app” seems rather unfortunate. The oracle problem (the question of how to reliably relate smart contracts to the outside world) seems unresolved, but partial solutions are inevitable and can only serve to make increasingly complex and thus popcorn-loaded contracts possible.
Right now, all seems relatively quiet. But rest assured, there remains plenty of euphoria and gas to drive many more cycles of comedy gold production. Ether huffers need something to throw their ETH at. The more complicated; the better! Given some of the creations that have been made in NXT, for instance, a few more years of creativity on ETH should yield some very complicated and pop-corn rich smart contracts.

Researcher’s Narrative:

I was relaxing in my office, waiting for business. It was a dingy little one-room affair, but it would serve for now. Particularly with no clients. I had poured myself a double shot, and was about to enjoy it, when suddenly the door opened.
A man walked in, familiar somehow although I couldn't place him. I reached out my hand instinctively, and instead of shaking it, he handed me a dollar.
"Hello?"
He pointed at the sign in the window, advertising a promotional one dollar gold survey for the first client. Always astute, I quickly surmised he wished to hire me.
"Of course, sir! What coin would you like?"
"Ethereum."
"Certainly! And may I have your name for the log?"
"Tyler Durdan."
And with that, my newest client left. I downed my double and poured a generous triple to follow it. This was going to be a long day.
Ethereum was the ultimate prize in my line of work. The coin which proved the adage that truth is stranger than fiction; which had proved itself a lucrative source of comedy gold.
And who am I? Guy Noir, private comedy gold surveyor. I've seen things you people wouldn't believe. Premined scamcoins crashing on noname exchanges. I watched popcorn glitter in the dark on forgotten the BCT threads. Popcorn junkies strung out on a high, and I've delivered them more comedy gold, popcorn, salt and butter. There is never enough.
A dark night in a world that never sleeps and knows how to keep its secrets...But on the 12th Floor of the Acme Building, one man is still trying to find the answers to life's persistent questions: Guy Noir, private comedy gold surveyor.
Thank you, Narrator. Now, as I was saying, Ethereum is overloaded with gold. But the core is pretty straightforward:
Ethereum promised "smart contracts". Immutable. Turing-complete. This was what Bitcoin lacked. The bee's knees. Crypto 2.0. What could go wrong?
We'll skip over the "Inthereum" period. Perhaps the vaporware criticism was never fair: from their version, they had Proof-of-Concept code; they went through some iterations and eventually got to release.
Let's note clearly that there was plenty of time to determine some sort of official policy for what to do about a buggy or improperly written contract losing money. In Bitcoin, every hack has been a SFYL event, although it’s true that a bug in the coin itself was hard forked away before. Mt. Gox tried to blame malleability, but there was never a fork to try to recover funds. In Ethereum, immutability was often talked about. So far as I saw in skimming, “what if” scenarios to undo bugs wasn’t brought up front-and-center. Nor was immutability being debated that I saw.
So Ethereum releases. A major contract is launched, The DAO, which gets an astonishing portion of ETH invested. The world's largest crowd sale as they ultimately called it. All the major players in ETH buy into it, including Vitalik Buterin, the creator of Ethereum and the best name in cryptocurrency.
Just as they're starting to get into the comedy gold that The DAO doesn't really have a purpose, a bug is discovered. And just as its leader is assuring everyone that no funds are at risk, the funds start being drained out of the contract by an unknown party.
And suddenly immutable means "immutable unless we screw up on the biggest contract which everyone important has invested in heavily". Ethereum ultimately hard-forks to return investor funds and basically unwind The DAO. After claiming that the bug was in the contract, the coin itself is hard forked to fix the issue. And the first Ethereum clone results, one which simply does not follow the new hard fork.
So the natural question is: when can a contract be changed? In the first page of the Ethereum launch, this question was implied by asking about what would happen if there were an assassination market hosted by a smart contract on Ethereum. Of course, in reality, Ethereum is not really functional enough at present to enforce such a contract, but the question remains in case Ethereum were to actually attain a functioning smart contract platform.
Attempted reference to Tears in rain monologue, credit to Rutger Hauer
Guy Noir and narrator text lovingly stolen from Prairie Home Companion's Guy Noir, by Garrison B. Keillor.

Researcher’s Rant

Filed for psych eval
Twenty pages into the BCT ANN, I believe I have contracted cancer, again. I’m reminded of why I don’t generally go on BCT. As bad as altcoin forums tend to be for their circlejerking, it’s almost better than the, well, there’s really no way to put it other than FUD that inevitably appears in response to anything. Of course, it’s not paid shilling so much as it is willful and vocal ignorance. For all the critiques in that thread, most of them are utter nonsense and simply are misreading the initial information. On the other hand, it’s January 27th in the thread by now, with February 1st and the pre-sale start, and they don’t have their “prospectus” up yet. I also haven’t seen the change in mining rate yet.
Side note: eMunie; wtf? I guess I missed something? Either it’s gone through a namechange or it’s dead, because a quick coinmarketcap search didn’t find anything. A comedy gold mining project for another day.
Great; spoiler alert: fundraiser delayed apparently, so even more cancer to read through in that thread on the way to getting to a prospectus!
The first 44 pages of the thread was summarized thus: “I want to believe. Why are you not speaking to us? Throw me a bone. Just tell me what I want to hear, and I'll gladly throw my money in.” [ 5 ] Would that I had only had to read that quote rather than all 44 pages, and facing many more.
Pages and comments dragged on as I waded through the low-grade popcorn. When would this prospectus be released, so my torment would end? Oh god: a side-thread shows that by the time they get to April, there’s still no prospectus or presale date or estimate of when there may be a date [ 6 ]. It’s time to give up on reading through the cancerous mainthread on BCT and start jumping ahead pages to find the pre-sale and prospectus.
Okay, finally, in July, they release documents and start the sale [ 7 ]. Good enough.
I have mountains of links on my desk. Comedy gold is overflowing, but this is a survey expedition, not a mining operation. But by the time it’s surveyed, there’s always so much gold lined up to mine it gets hard to leave it behind and leave with the samples.
It’s time to hammer out some copy and close this file.
Folks, we hope you’ve enjoyed this descent into madness and comedy gold brought to you by the Comedy Gold Survey Company and our patron Tyler Durden. Do you need more comedy gold in your life? Of course you do! So please donate today; every $1 helps! I’ve added a new special: $5 lets you choose the next coin to be surveyed!
Thanks again to Tyler Durden, and I will now be re-watching Fight Club and questioning my sanity. Cheers y’all!
Resources:
Edit: 3/26/2020: Removed a link to a comment per request from the user.
Footnotes and other links:
submitted by coinaday to Buttcoin [link] [comments]

Atox builds a new ecosystem with a win-win thinking and returns to the initial wish of blockchain’s value


2019 is the year of return of blockchain’s value. Atox replaces the "family" thinking of "cutting leek" with "co-construction and sharing", practices the original aim of the blockchain, and achieves a win-win new ecosystem and becomes an industry leader.
1.AtoX builds ecosystem with win-win thinking and becomes the leader of new mode of ecological construction
Ecological construction is an indispensable part of the blockchain project. Bitcoin, Ethereum, Ripple, EOS and other relatively leading blockchain projects, each has a strong ecosystem. However, most of the past projects used the idea of “cutting leeks” to engage in ecosystem, and the great technological invention of ICO was reduced from a credit machine into a fraud tool. As a result, the market ruthlessly fell, the lesson was very painful, and the blockchain revolution was almost ruined.
AtoX follows the spirit of mutual benefit of co-governance and sharing, and regards ecological construction as the strategic fulcrum of the blockchain project, making full use of its advantages, such as core technology, business model, model of token economy , ecological construction, team strength, capital and resource capabilities. To create a fast profitable, sustainable development, social contribution to achieve a unified blockchain project. The head effect has emerged and it has become a leader.
AtoX is the core value of the AtoX project culture by taking the ecosystem as the family and taking the eco-builders as family members. AtoX practices the eradication of ICO’s cutting leek, returning to the value source of the blockchain, allowing the ecosystem to grow together with the project, to get rich together, and to create a new ecological construction model.
Two new slogans from AtoX: not to be a leek but a community member, do not privately mining a mine but as a node. In the world of AtoX, the relation of production is new, and we work for ourselves. The core development teams, foundations, all-nodes, investors, commune members, and users will all participate on an equal footing. Everyone work together, actively contribute, jointly create the ecosystem, and share the ecological results. The AtoX ecosystem has its own token AXC to motivate all parties. The ecological profit comes from the return of the AtoX project to economic and social transformation services. Due to the huge energy of AtoX, the potential is unlimited.
2.AtoX has the strength to become the leader of win-win new ecological model
(1) Ai enhanced cross-chain technology
AtoX's Ai enhances cross-chain, technically overcomes the triangular contradiction of decentralization, security and commerciality, and is a leading technical architecture. Currently, the AtoX ecosystem includes its own publci blockchain, its own wallet and exchange (its app is AtoXSwap) and its own token (AtoXCoin, abbreviated AXC).
AtoX's Ai enhanced cross-chain architecture, which is very scalable and can do a lot of things. The lightning network achieves high-speed TPS, and the decentralization and security can be handed over to AI, which is the underlying public blockchain. In the new financial business model, such as payment, there are more places to use big data and Ai. Combine with business and users, and then gradually upgrade and improve after the business has been done.
(2) New financial business model
AtoX has pioneered the lightning network and payment settlement that is not affected by the bear market. It has built a channel to support dual-token UT/ST and to provide funds for entities to become the leading new financial platform to support blockchain reform.
(3) Sustainable Token Economy Model
AtoX wallets support cross-chain, also support multiple coins, and match sellers and buyers. AXC can be used as an intermediary to mine, and the price of AXC can be supported for a long time. Super nodes, alternate nodes, lightning nodes, each node generates new blocks, they can receive different rewards.
(4) International team
The AtoX project team is headquartered in Switzerland, with a core technical team based in Silicon Valley, USA, and there are also offices in Italy, Germany, Australia and other countries.
Strict compliance with Swiss rules is a guarantee for the interests of all parties involved in the project.
  1. Lightning network and payment settlement are not affected by fluctuations in coin prices, and they stand out and develop rapidly.
The AtoX project started with lightning network and payment settlement, and grasped the pulse of market development. It is a touch of color in the bear market.
2019 will be a year of rapid development of the lightning network. Lightning Network is a bitcoin-based micropayment network. The cryptocurrency can be effectively transferred across borders, and you can quickly move funds to where it is needed, do not involve geopolitics, without embargoes, sanctions or controlling traditional currencies.
In the long run, cryptocurrencies can do what current payment systems, such as Visa, can't do, that is, complete cross-border settlements in milliseconds and complete payments at very low commissions. The amount of payment can be not only less than 1 US dollar, but less than 1 cent, and the transfer time is less than one millisecond. With such cross-border settlement, a real innovative applications will emerge.
Payment settlement will be a booming market. It is used to the payment and settlement of cryptocurrency and is not affected by currency fluctuations. Because when the value of cryptocurrency is low, it is not really affected by price fluctuations. For example, in the context of bear market in 2018, this market is also developing. If the system grows in flow and popularity, the volatility will naturally become smaller. The more people use it, the more they use it in their daily lives, the less volatility they have, because speculation is not the main driver. .
  1. Who actively participate in AtoX will eventually become a rich harvester
From the whole market, the fall in 2018 is only the market, and the blockchain is still growing rapidly. For example, the number of wallet users in the Bitcoin blockchain has increased by 10 million from the beginning of 2017 to more than 31.9 million. China's blockchain-related enterprises, According to the data of the State Administration for Industry and Commerce, there were 19,000 companies by the end of 2018, 5,000 at the end of last year, and nearly 15,000 registered in 2018.
In 2019, we believe that it is the year of making order out of confusion, value return, and not forgetting the original ideals and aspirations. The value of the blockchain’s credit mechanism, incentive mechanism, and organizational mechanism will once again become dominant. The top ten killer applications, such as new finance, digital asset trading, digital legal affairs, blockchain merchants, product traceability, distributed ledger, sharing economy, relief, new wisdom city, supervision sandbox and others will be born, leading the industry back to the bull market.
How do participants participate? If you have the technology to participate in the development, if you have the funds to invest, if you have the computing power to be a node, you don't have anything, as long as you have passion, you can be a member of the ecological construction community.
AtoX is an ideal project to participate in. The standard is very simple. First, the project is promising, and second, the team is reliable.
We are believers, we believe that the logic of the blockchain transforming the world is right; we are devotees, we actively participate in project investment, business, activities; of course, we are qualified to become a harvester, and we can certainly become a harvester!
Choose the AtoX project to let you break out in 2019. Participation link:
submitted by tongzhengshijie1 to u/tongzhengshijie1 [link] [comments]

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