Big Mover on Bittrex Today:
Zclassic is a fork of Zcash. Zcash was made to facilitate privacy but 20% of Every mined block is set aside to fund development of the Zcash and block rewards started out lower to later increase and have an initial scarcity.
Zclassic removes these two aspects of Zcash allowing miners to get full block rewards and having higher quantity block rewards.
Up 90% as I write this around $7/ZCL on Bittrex
My Futurist Prediction of the Day:
– Someone will discover how to use unused brain power for computing
– unskilled labor will lease excess brain capacity for Blockchain Mining
– the rewards from the mining will essentially become the universal basic income everyone is so up in arms about.
Those who are skilled will possibly use more brain power and get less from mining rewards but make up for it in the value of their skilled labor and vice versa.
Basically we’ll turn into a human server farm to process our growing demand for application processing. Technically this would be a free Market egalitarian society, I need to go all Robert Heinlein and write some sci-fi books.
Possible reasons for the sell off in crypto (aka upcoming buying opportunity):
– Deleveraging by those who leveled up expecting further rally’s and getting out before they lose too much in margin interest
– People expecting a New Years sell off (people take their gains after the ball drops to defer taxes on their 2017 gains) and are taking their gains now because they are worried about coinbase’s slowness when there is a massive amount of activity. (This time of year is usually rough for all financial assets)
– massive amount of low conviction investors leaving cause they can’t stand the volatility
– Some institutions taking their gains
Now some of the less famous Altcoins have still retained their value and have even grown in this correction. (Thank you WAVES)
Usually when BTC goes down everything else goes up because people decide to diversify. Instead we are seeing the USD value of all coins except a few drop which means the money isn’t going into Altcoins but people are cashing out. (Many Altcoins May not be dropping relative to bitcoin but as bitcoin drops in dollars so alts which often are traded in BTC)
I imagine some institutions are taking advantage of this buying opportunity seeing that the price is still 13k/14k (remember for every seller there must be a buyer)
Long term reasons for optimism on bitcoin:
– In 2020 there halving of the reward if I remember correctly meaning the growth of the Bitcoin supply will drop in half which will create a shortage.
– In 2018 as more Bitcoin vendors adapt Segwit (which will lower BTC fees) and implement the soon coming lightening network (which will make things a lot faster) some of the current issues will be resolved.
– RSK and Omni both are creating/have created a platform for smart contracts and token creation that work on top of Bitcoin instead of independent of it like Ethereum. (So your bitcoin address would be the same address you use when using these platforms). This gives bitcoin and its Blockchain even more use cases.
Reasons to be optimistic on Altcoins:
– People are developing interoperability among blockchains in a lot of ways with multi currency wallets and other more sophisticated apps that makes it easier for more than one Blockchain to find its niche and be a long term player.
– Privacy is still in demand so Dash/Monero/Zcash/Aeon/Stealthcoin and other Privacy coins still have a fight ahead of them and along the way also become used for retail uses.
– While Bitcoin waits for RSK/Segwit/Lightening to do their thing slow transactions and high fees will still plague the bitcoin network so there will be demand for currently faster lower fee networks like Litecoin and Bitcoin Cash at least for time being.
– Seeing the congestion in the Ethereum network shows there will be a need not just for one smart contracts/token/dapp platform but that there is room for many to handle the demand to process these applications so plenty of reason to think EOS/NXT/ARDR/BTS/WAVES/EXP/OMNI/NEO/BURST etc. have plenty of room to coexist and thrive.
– Despite congestion people are still developing many cool upcoming Dapps (decentralized apps) on top of Ethereum so there will be plenty of demand for Ethereum to facilitate the use of all these dapps.
Crypto Knowledge of the day:
Bitcoin Dark (an altcoin, Meaning a non-bitcoin currency) is on the way out, they’ve been doing a trade in for Komodo Coin which is the coin of the Komodo Platform.
The Komodo platform is a company that actually creates blockchains for particular uses (different than tokenization, they are creating entirely new chains. Think of a Blockchain as the trunk of a tree and custom tokens as branches off that tree)
The cool thing about Komodos tech is their technology is supposed to allow assets be able to move and trade between these independent blockchains. There is also a decentralized Exchange for Komodo based blockchains.
Very interesting stuff!
Some knowledge about the WAVES Blockchain.
In the waves Blockchain using the Waves Wallet transactions cost .001 Waves (1.5 cents). If you want to create your own custom token it costs you one WAVES ($15 currently).
Although to send your token to another person it’d cost you .001 Waves. Although if you want to commit 10,000 Waves then you can create your own “masternode” that verifies transactions in which transaction fees can be paid in any token on the Blockchain including your custom token.
These nodes are “staking” Meaning their likelihood of staking the next block is based on the their waves holdings.
Using the WAVES client I can lease my WAVES to a node, in return they will share with me their winnings without having to leave my computer on (their computers are doing all the work but by leasing my Waves I increase their staking probabilities)
Download the Waves client at WavesPlatform.com, it’s a pretty nifty Blockchain.
If you are someone not involved with Cryptocurrency but Interested in getting involved here is a quick guide of some easy ways to get started.
You have 2 choices, buy crypto or earn crypto.
The easiest way to start earning crypto is the following:
⁃ Become a content contributor on the social network, SteemIT. By contributing blogs and commenting on the articles of others you can earn STEEM which can then be sold on an exchange for Bitcoin.
⁃ Join the Social Network SOLA where you can earn SOL for contributing popular content. Join by clicking this link and get 5 bonus SOL: https://sola.ai/r/YWUxMDJ
If you want to buy your crypto the basic ways are:
⁃ Coinbase or Uphold are probably two of the more popular platforms for buying Bitcoin/Litecoin/Ethereum for US Dollars
⁃ The CoinSeed app makes it easy to automate investing small amounts across 8 different cryptocurrencies allowing you to diversify among the most popular coins. (Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Zcash, Dash, Ripple, and Monero)
Crypto Knowledge for the Day
There are a handful of coins that are using a multi-currency approach to create different incentives to address concerns around single currency Blockchain incentives to mine, spend, buy.
What do I mean?
Sometimes there are incentives to mine (putting you computer to work and being rewarded in coin) but it gives no direct incentive to buy or sell so velocity doesn’t develop.
Staking (holding coin and being rewarded for leaving your computer on and connected) creates an incentive to buy and hold but discourages spending.
Some blockchains rewards you for frequency of transactions (I think this is called Proof of Burn) but you don’t want people spending just to spend too much (you know that whole mv = pq thing )
So the thought is if these incentives are spread across multiple currencies different currencies can play different roles (store of value vs medium of exchange, kinda like the relationship between gold and US Dollar as of late)
3 of these coins are…
Vericoin/Verium – Vericoin has much faster transactions and growing supply making it great for exchange Verium is much more limited and slower making a better holding currency/store of value.
Breakout Coin/Breakout Stake/Siscoin – Breakout Coin is a currency meant for gaming but its Blockchain is maintained by rewarding people with Breakout Stake for staking and siscoin for Mining.
NEO/GAS – I think you mine NEO but if you hold it you get a regular dividend in the form of GAS, a seperate currency.
The goal in each is to create the right mix of incentives to maintain the decentralized network for efficient payments.
Crypto Knowledge for the day:
The Method by which participants help verify transactions and are rewarded with Cryptocurrency come in many flavors the most popular two being… Proof of Work (Bitcoin, Ethereum, Litecoin) and Proof of Stake (Waves, Bitshares)
There are a handful of others but by far these are the most common.
PoW (Proof of Work): Essentially this is when you set your computer to crunch numbers in order to earn the right to mine the next block and get the reward. Essentially imagine a box with a super long combination, it would take a long time to guess it. The more powerful the computer (ASICS) and the more people you have guessing with you (Mining Pools) the more likely you mine the next block. The big problem with this is the actual electricity it takes to have these computers do this task and the limits it places on how many transactions can occur depending on the blockchains design. This is part of the reason for Bitcoin/Ethereums recent congestion issues.
PoS (Proof of Stake): instead of your computer guessing numbers you set your computer to “Stake” which just means your computer is left idle to verify transactions and maintain the Blockchain but the likeliness you get the next block depends on how large is your Stake (your % of currency holdings vs everyone else staking). This encourages people to hold their coins and to buy more. The problem is it may discourage spending by those who Stake while on some blockchains they get other cool abilities such as voting for stuff as the Blockchain develops. This takes a lot less electricity and can handle a lot more transactions with computational power but discourages velocity (turnover of currency).
Some have developed hybrid systems or complete alternatives… the more you know!
Learn more at BitcoinBlockchainCrypto.com
Get free collectible Waves Assets at FreeCrypto.BitcoinBlockchainCrypto.com
Some Crypto Thoughts:
– While some early adopters made a huge return there is no free lunch in crypto. Early adopters took a huge risk and often were individuals who put in time developing or financing all the software making the current crypto market possible and were rewarded handsomely for doing so. If you trade bitcoin and other cryptos you are taking a risk that may payoff, realize you are providing liquidity to the crypto economy that is the value you are provinding and MAY be rewarded for it.
– Be cautious of scams. If people ask for personal data (social, birthdate), private keys or logins they are probably planning to rob you blind. Outside of reputable exchanges/dealers (Coinbase/Gatehub/Bittrex) who try to comply with US Know Your Customer rules no one should be asking for personal info and especially your private key. You should only ever send people your “receiving” address. (It should be pretty clear what this is, it’s the address you get when you click “receive” on most wallets)
– If you are in the US try to keep track of value of your purchases as gains are taxable as short/long term capital gains. It’s currently unclear whether a crypto swap (one crypto for another, no cash involved) is a taxable event or not. (Some are trying to make it a 1035b swap which would not be taxable)
– Washington and New York have really annoying rules that pretty much make Coinbase your local crypto monopoly. Tether and Uphold will not Do crypto business with you for the time being unfortunately. (You can still use Uphold to buy gold and silver)
– Please take a moment to research any coin you are considering buying. Every coin of value usually has a website with a white paper that explains why their coin should matter along with bios of their team members. Please read these, if their case doesn’t make sense to you, don’t buy it.
Here is a list of reputable crypto stuff that I’m aware of:
Dealers: Coinbase, Uphold, Tether.to (for buying USDT, which are crypto dollars to trade on exchanges with)
Exchanges: Bittrex, Binance, Tidex, Kraken, Gdax (this is Coinbase’s Exchange, if you have a Coinbase account you have a Gdax account)
Mobile Wallets (Android/IOS): Jaxx, Coinomi, Blockchain, Abra, Coinspace, Trust
Desktop Wallet: Exodus
Web Wallet: MyEtherWallet
*WAVES and Bitshares Client also allow you to store bitcoin/litecoin and trade on their decentralized exchanges
Feel free to add extra info in the comments.
Probably the most profound thing I’ve learned from studying the Cryptocurrency Markets is that the role of money is so much more than we ever realized.
Money is not just solely a medium of exchange/store of value/unit of account but a tool or the key mechanism for decentralizing processes. Money as we’ve experienced it up till now has been serving the role of decentralizing the process of distributing goods and services. Doing so resulted in better outcomes than the centralized process ever could have.
If you take a look at a lot of these ICOs they are applying that concept to enterprise which has been a centralized process for the longest time. By using a enterprise specific token they are creating incentives for the processes of an enterprise to self-coordinate and run as the broader money supply helps coordinate the market.
This realization has only made me more in love with crypto technology. The entrepreneur of tomorrow looks at a problem and doesn’t ask how to set up a business to solve it but how can I structure incentives for the problem to solve itself and is rewarded by the rising value of the token used to create the cycle of incentives in that solution.