Category Archives: Cryptocurrency
Singaporeans have lost $78,000 to cryptocurrency investment scams in the last three months, after authorities uncovered a wave of fraudulent marketing campaigns.
Cryptocurrency con-artists have duped citizens with phony articles featuring well-known Singaporean personalities to garner credibility, local media reports.
The advertisements falsely claim local celebrities earned huge returns on their Bitcoin investments made with fake companies. These lies eventually lured unsuspecting members of the public into sending in their cash, receiving nothing in return.
Police explained individuals who provided contact details normally received calls from supposed representatives, in a bid to legitimize the scams.
According to reports, these schemes originate from countries outside of Singapore. This unfortunately means they are not subject to the authority ofSingapores top financial watchdogs.
But even if these businesses were locally based, those regulators wouldnt be capable of doing anything at all. Singapores government does not actively regulate cryptocurrency. This means it is not able to impose any safeguards to protect local digital asset investors.
Surprisingly similar reports have surfaced in other parts of the world. A string of fake news articles recently hit New Zealand falsely starring local television host Daniel Faitaua.
The bogus ads claimed Faitaua doubled his money almost instantly, after buying a small amount of Bitcoin through a sham investment business in a televised interview.
He was eventuallyforced to make an on-air statement, clarifying he has no connection with the business, and had never bought any Bitcoin. Even more damning, the advertised interview never even happened. Go figure.
Published December 5, 2018 15:15 UTC
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Cryptocurrency scammers dupe Singaporeans out of $78,000 in …
Since it was created, nearly a decade ago, bitcoinand the cryptocurrency market it spawnedhavefaced a constant stream of doomsayers declaring the coin dead or headed for obsolescence. Even so, ten years later, a singlebitcoin is worth fourfigures, and it appears to have found some stability in tandem with its growing maturity. The same cant be said for the sector which now includes thousands of coins and tokens, each of which exhibits varying degrees of success.
Moreover, for all theirpromise,cryptocurrenciesstill can’t seem tobreak into the mainstream. There are still very few merchants that accept crypto payments, and most financial services continue to be settled in fiat currencies. Critics saycrypto may have been a flash in the pan. For supporters, though, the signs are clear that even with the current culling of the crypto ranks, the sector will emerge stronger.
The real question is, which group is right?
As of August 2018, the number of cryptocurrencies on the market liessomewhereabove 2,000. This should be a clear signal that the sector is booming, but the numbers are deceptive. A report issued in July of this year found that more than 800 of those are essentially dead, that isworth less than one cent. This comes on the heels of reports of rampant scams and fraud in the initial coin offering (ICO) market, and other signs of trouble for the sector.
The trouble starts with bitcoin itself, as the cryptocurrency faced substantial difficulty in 2018. After reaching stratospheric heights with a near-$20,000 valuation in December 2017, bitcoin prices came crashing down in January, and have struggled to reach last years’ heights. Additionally, the value of crypto transactions carried out, which was astronomical in the first quarter of the year, collapsed by nearly 75% during the second quarter. The number of transactions fell from nearly 360,000in late 2017 to roughly 230,000 by September of this year.
The lack of acceptance, especially in the investment arena can partially be attributed to the US SECs denial of more than a dozen applications to list bitcoin exchange-traded funds (ETFs). More importantly, the leeway and freedom cryptocurrenciesenjoyed as unregulated commodities is rapidly coming to an end. 2018 has witnesseda drastic upswingin regulatory efforts, with countries across the globe taking a more serious and deliberate stance. This, many skeptics say, could be yet another nail in the coffin, stifling growth and limiting the sectors true potential as a disintermediating force.
On the other hand, these are not necessarily new critiques of the crypto sector. While it is true that bitcoin pricesand by extension most other cryptocurrenciescrashed in early2018, the volatility that once defined the market appears to be gradually fading. While this is bad news for speculators, it is excellent news for institutional investorswhomany believe are the key to unlocking cryptos future.
More relevantly, cryptocurrencies, and blockchain in general, are starting to garner more mainstream adoption. While merchants remain wary ofdigital currencies, banks, major tech firms, and other corporations have already started employing them.
As Ceek VR CEO and founder Mary Spio noted, cryptocurrency is nowhere near dead, its just scratching the tip of the iceberg toward mainstream adoption, when companies offer purposeful real life value and integration of cryptocurrencies, we will begin to see the next wave and resurgence of cryptocurrency. Its all about creating more natural demand and less speculation and hype. Indeed, it seems many of the cryptocurrencies that have fadedwere those based on hype and little else.
Even though 2018 has seen a downturn in the market following the bull run in 2017, we are convinced that the future holds a rebound, driven by institutional capital flowing into crypto assets. Within crypto assets, the wealth distribution will shift away from utility tokens towards Bitcoin and likely security tokens, said Agada Nameri from iCapital, an iAngels subsidiary dedicated to blockchain opportunities.
It seems that while many have shot down the idea that bitcoin and the crypto market are mainstream, the sector is determined to prove them wrong. While cryptocurrencies may still not be a standard for payments and value exchanges, the technology that underlies themblockchainis quickly becoming a standard in a variety of sectors and industries. Perhaps more crucially, the services that these tools provide are all based on, and powered by, cryptocurrencies and tokens. As companies continue to fix pain points and uncover new frictionless solutions to old problems with blockchain, crypto will flex its muscles even further.
Despite its many doubters and doomsayers, the crypto market has continued to plug along and thrive. Although prices have fluctuated wildlyand in some cases enormously to the downsidethe sector is finally starting to stabilize and increasingly appears to be leaving its infancy behind.
As more companies discover uses for crypto and blockchain, and more users accept themas a way to simplify their lives, theywill remain a central point of conversation in technology. More interestingly, as it better demonstrates its value in a variety of situationsfrom banking to buying coffeethe technology will further ingrain itself. Coins may come and go, and many cryptocurrencies are indeed likely to fail, but the sector will continue to forge ahead unabated.
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Is Cryptocurrency Dead for Good? | Investopedia
Dmitri Love pitchedBundilan app that takes your spare change and invests in cryptocurrencyon Season 10 of Shark Tank. Cryptocurrency (Bitcoin, Ethereum, etc..) and the blockchain technology that powers it, has created new opportunities for investors, startups, and professionals in a variety of industries.
Musician and philanthropist, Akon created his own: Akoin.PatientoryCEO Chrissa McFarlane raised millions for her blockchain startup with an Initial Coin Offering (ICO), and online communities like Wacoinda have developed to share news and financial information about the cryptocurrency market. Knowledge is power but wading through the deluge of news about digital assets can make investing in the speculative asset class daunting.
Thats why Dmitri Love created Bundil, to make it easier for everyday investors to add cryptocurrency to their portfolio. After his appearance on Shark Tank, Black Enterprise contributor Brandon Andrews sat down with Love for an interview about the show and his business.
BUNDIL CEO Dmitri Love on Shark Tank (ABC/Eric McCandless)
Give us a quick overview of the crypto landscape. What is it and how does it work?
Thats a pretty loaded question. The crypto world is an ever-evolving space filled with prowess and ingenuity.Lets start with bitcoins because they are so well known. Bitcoin is like regular money and in a small way, stocks.Its like money in that it has value and you can use it to buy goods and services. Its also like stock because the value fluctuates based on supply and demand. Bitcoin operates on technology called blockchain. Other crypto, like Ethereum, are using that same blockchain technology to allow people to rent out (and make money with) part of their computing power when they arent using it. Its an exciting space thats still in its infancy.
Why should I invest my spare change in crypto instead of saving it or using it for another opportunity?
You should do both! We always advocate diversifying your portfolio. Save some, invest some, repeat. We are actually in the works of adding a savings feature to our platform in coming weeks.
How did you build the Bundil app? What was your biggest challenge in the development process?
Well, lots of code and late nights, haha. We knew who we wanted to help build the system. I had some software friends in my hometown of Fayetteville, Arkansas, who are absolutely brilliant. I cant express enough how much we value them and what they have done for Bundil. The biggest challenge for us was mitigating risk management in the roundup investment process. We knew traditional roundups may provide poor monthly investments for those who dont use their debit/credit cards often enough. We came up with the idea to add different round-up options so users can choose how much to round up based on their spending habits.
Bundil App (enjoybundil.com)
You appeared on Season 10 of Shark Tank! How did you connect with the show? Tell us the story.
Its actually pretty crazy. We were contacted by a Shark Tank producer within two days of launching the initial iOS app back in April. My co-founder and I didnt believe it at first, but after doing some research we learned that it was real. We were asked to send in a pitch video and shortly after I was flown out to LA to film. Its still a little surreal.
You took the Sharks to crypto school, with a chalkboard and everything, how was that experience?
Comfortable. I thought I would be intimidated pitching our tiny startup to the Sharks, but once the pitch started, I felt like I was educating and explaining my business just like I would to anyone else. I used the chalkboard to show how complicated investing in Bitcoin and other crypto can be without using the Bundil app. I felt comfortable throughout the interaction.
Give us an update, what have you been working on since being on the show?
Weve been working on scaling up and adding new features. We know that Bundils an amazing tool for the old and new members of the crypto community and we want to make sure we exceed our users expectations.
BUNDIL CEO Dmtri Love on Shark Tank (ABC/Eric McCandless)
How do you plan to grow the business in 2018 and beyond?
The exposure from the show is going to give us great visibility, which is a good start. We want to show the world that crypto is nothing to be afraid of. I think our efforts in providing a secure, safe, and easy platform to invest in crypto will speak for itself. We also plan to continue engaging the investment community. In the coming weeks, we will provide other features to skyrocket their portfolios, and show them that investing is fun!
Why should African Americans be interested in crypto? Are their specific opportunities for black investors?
There are definitely opportunities for black investors. I think a lot of African Americans feel intimidated by investing in crypto or any other asset, because we often dont have the same financial opportunities. We want to bridge that gap with Bundil. We also want to empower black investors with knowledge. You can invest no matter your background or economic status. Thats the core of why we built Bundil. To engage the people that dont know where to start, and provide an easy and fun way to participate. No matter where theyre from, what their economic status is, or what they look like.
Brandon Andrews is a senior consultant at Values Partnerships. He leads a nationwide casting tour for ABC’s Shark Tank. He writes about business, politics, and crowdfunding. Website – http://www.brandonandrews.me Twitter – http://www.twitter.com/brandontalk IG – http://www.instagram.com/yesbrandon Facebook – http://www.facebook.com/mr.brandonandrews Snap – @brandontalk
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Invest in Cryptocurrency With Spare Change – Black Enterprise
Mining cryptocurrency can be a lucrative endeavor with enough computing power
Mining cryptocurrency is in the news a lot lately. People are finding their computers have been compromised by malware and are mining, or in some cases entire botnets are mining. But what does that mean?
This isnt mining in the traditional sense. There are no pick axes or canaries involved. Instead. its more about trying to win a blockchain lottery to earn the reward at the end.
What does that all mean? Lets hash it out.
To begin a discussion of mining cryptocurrency we need to start with what cryptocurrency is. Cryptocurrency is a digital form of currency with a cryptographic underpinning that is used as a secure medium of exchange. There are literally hundreds of different cryptocurrencies with varying real-world values. Many believe its the future of currency.
The most popular cryptocurrency is bitcoin, you may have heard of others like Etherium, too. While cryptocurrencies may differ in terms of the algorithms and encryption they use, they all share one similiarity: blockchain. And thats what we need to talk about next.
Blockchain is a digital ledger of transactions that is impossible to alter. It uses hashing and a concept similar to salting to continuously complete blocks of information that chain to form an immutable ledger.
Hashing is the act of mapping data of any length to a fixed-length output. When cryptography is involved its a one-way function. The most popular hashing algorithm is SHA-256, which outputs at a length of 256 bits. Every hash value is unique. Even the tiniest alteration to the data being hashed caused the entire value to change.
Hashing is considered one-way because of the amount of computing power it would take to reverse-hash it. For a 256-bit output, calculate 2 to the power of 256 (2 X 2 X 2 256 times). Your odds of finding the correct value are 1 in the product of that equation. Those are astronomical odds. It would take a supercomputer thousands of years to compute that.
Now lets fit it all together. With a cryptocurrency blockchain, as transactions occur they are broadcast and added to various private ledgers. Each one of these transactions is digitally signed for the sake of authenticity. On the other end, there are people or groups collecting these transactions and building ledgers. They are also computing to find a value that when hashed along with the ledger, produces a set number of 0s at the beginning of the hash value. Thats the portion thats similar to salting.
So lets say that for our example cryptocurrency, weve set the total to 10 0s. That means the first 10 spots of the 256-character hash value should all be 0s.
When the correct value is found, the block is closed, its broadcast officially and added to everyones blockchain, then the hash of the old block is put atop the new ledger and the process begins again. This is how blocks are created in the chain.
The act of computing the correct value to satisfy the hash function in blockchain is called mining. When it comes to cryptocurrency, a reward is provided to whoever solves for the correct value. That makes it lucrative to compute the correct value, though it takes quite a bit of power to accomplish that.
Oftentimes people pool their computing power together and split the reward if they solve for the correct value. In other cases, hackers have been known to co-opt others computers and use some of their computing power behind the scenes to mine cryptocurrency. There are entire botnets doing nothing but mining.
Really, solving for the correct value is like winning the lotto. There are countless people and botnets attempting to find the value and whoever finds it first gets the reward.
Of course, if you can accumulate enough computing power you could solve for the value enough of the time that you could accrue a substantial amount of cryptocurrency.
When someone says mining cryptocurrency what theyre referring to is the act of trying to compute a specific hash value by producing a set value that, when hashed along with the block ledger, produces a specific result. This requires considerable computing power, but considering the rewards its well worth it.
Heres what we covered in todays discussion:
Various countries mull creating their own cryptocurrencies. That is not an easy feat, as many different aspects need to be considered. In Saudi Arabia, such a new currency will be finalized in mid-2019. This currency will have the backing of the Saudi central bank. Despite this timeline, the working group behind this project is still evaluating the potential impact of such a currency.
The success of Bitcoin hasnt gone by unnoticed. Despite falling prices, the currency highlights some interesting potential. Digital cash is something a lot of consumers and corporations seem to favor at this time. This means governments and central banks need to cater to this demand. Creating a native cryptocurrency seems to fit this will quite well in that regard.
In Saudi Arabia, such a currency is being developed. It is a venture between the country itself and the United Arab Emirates. Not too much is known about the currency at this time. It has no official name, and its potential success remains unclear. The Saudi Arabian Monetary Authority is still investigating the feasibility of such a currency. Transforming finance in Saudi Arabia will not be without potential risks.
It is expected this new currency will come to market in mid-2019. More importantly, it will be supported by a limited number of banks. The central bank of Saudi Arabia wants to improve upon cross-border payments. Which banks will support this currency from day one, has not been officially communicated as of yet. This somewhat cautious approach to digital currency shows a lot of questions remain unanswered.
It is not the first time a country mulls creating a native cryptocurrency. To date, none of those regions have put any plans in motion to do so. It appears Saudi Arabia is leading the pack in terms of exploring the opportunities. Making cross-border payments more efficient is a worthy goal. It is something that can benefit consumers and corporations alike.
This news comes at a bit of an odd time. Ripple, the company developing xRapid and the XRP asset, has begun making inroads in Saudi Arabia. The countrys National Commercial Bank is a member of RippleNet. This move is also part of streamlining cross-border payments to and from the Kingdom. Additionally, the Saudi Arabian Monetary Authority conducted a Ripple-oriented pilot earlier in 2018.
Putting all of ones eggs in the same basket is never a smart idea. Diversification is key, especially in the financial industry. For banks, exploring different technologies and implementations will often yield the best results. This also confirms Ripple and a central bank-issued digital currency can potentially co-exist in the same country.
Do you think more countries will begin to consider issuing national cryptocurrencies? Let us know in the comments below.
Images courtesy of Shutterstock
For months, the price of Bitcoin has been hovering around the mid-$6,000s mark. No longer. The most popular cryptocurrency has plummeted by 12% over the last day, hitting a value of little more than $5,500.
The total market capitalization for Bitcoin now stands at $96 billionthe first time the market cap has fallen below $100 billion since October last year. The total market cap for the entire cryptocurrency scene now stands at $181 billion.
Bitcoin is far from the only casualty, with cryptocurrency price charts all firmly in the red right now. XRP (Ripple), the second-biggest virtual coin, is down 9.2%, Ethereums Ether is down almost 13%, and Bitcoin Cash is down 8.7%.
So, volatility is back, butas is so often the caseits not entirely clear why that is.
One theory, touted by BKCM founder Brian Kelly on CNBC, is that the crash is being caused by disagreements over a hard fork in Bitcoin Cash.
Hard forks are where a major software upgrade takes place on a cryptocurrency, essentially creating a new cryptocurrency (with free coins for existing coin holders) while leaving the old one intactthats how Bitcoin Cash formed in the first place, and now its doing it again. There is no majority agreement in the Bitcoin Cash community over which version would be best, though.
IMF chief Christine Lagarde also hit the headlines on Wednesday by calling for more countries to explore the potential of digital currenciesbut central-bank-backed digital currencies, not Bitcoin-style cryptocurrencies.
A few countries such as Sweden, China and Canada are already exploring this idea, with a key driver being maintaining the safety of currency-using consumers. There is a possibility that, if such schemes come to fruition, they could encourage regulators to crack down on competing cryptocurrencies that offer no such protections.
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Bitcoin and Other Cryptocurrency Prices Are Crashing Again …
A cryptocurrency is a medium of exchange, that is designed to work like a currency. Usually, cryptocurrencies use features found in strong cryptography, such as digital signatures to secure financial transactions, control the creation of additional units, and verify the transfer of assets. The first of them were created to be independent of a government-issued currency.
Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain , that serves as a public financial transaction database.Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Since then, over 4,000 altcoin (alternative coin) variants of bitcoin have been created.
In many cases, cryptocurrencies cannot be converted to real currencies; it is only possible to convert them to other cryptocurrencies, or to use them to buy things. Some cryptocurrencies can be converted to real currrencies: They usually have a high volatility, and using them carries a high risk. They are also a target for so-called Pump-and-Dump-Attacks. They act like a big distributed economic system: As they are not issued or controlled by central banks, their value is difficult to influence: For this reason, they cannot really take the place of a stable currency.
Cryptocurrencies are prone to speculation, which makes buliding a system of more or less stable exchange rates very difficult. Another problem is the inequality of distribution: Many cryptocurrencires are held by only few people. As an example: about 1.000 people hold half of the total amount of bitcoins in the world. This means that if any of these persons starts using their cryptocurrency, this has an effect on the exchange rate. It also means that these people have a great influence on the value of the currency, and are able to change its value easily. The currency itself only documents ownership changes. Exchange rates of cryptocurrencies are established outside the system. Exchange rates are issued by brokers and traders; their indication is no guarantee that the currency is traded at the value proposed. In itself, the unit of cryptocurrency has no value.
In contrast to cyptocurrencies, real currencies are issued and controlled by central banks. Certain econnomic phenomena such as inflation or deflation may change the value (and exchange rate) of a currency. The people who own units of the currency have no direct influence on its value.
According to Jan Lansky, a cryptocurrency is a system that meets six conditions:
In March 2018, the word “cryptocurrency” was added to the Merriam-Webster Dictionary.
The world of cryptocurrencies is a quickly growing and expanding place. The value of cryptocurrencies such as Bitcoin have been going through the roof. The reality is that cryptocurrencies are becoming ever more important, valuable, and widely accepted as legitimate forms of money. With this great value comes a very real chance for people to make a serious income. Yes, the trading of Bitcoins, Ethereum, and other such cryptocurrencies is becoming much more common and profitable too. Just like with other forms of trading, Bitcoin and Crypto trading has a lot of merit in terms of its profit potential. That being said, there are also lots of threats out there that arise from this popularity of cryptocurrencies. This is why we here at the Cryptocurrency Army have come into existence, to help you fight off these threats and stay safe.
The sad reality is that there are countless cryptocurrency scams out there looking to take advantage of you. Just like with other scams and scammers, crypto-scams looks to expose beginners and people with limited knowledge. These criminals promise huge profits and awesome returns if you just give them some money. Whether it is a trading scam, a scam application, or an HYIP scam, there are plenty out there looking to bite a chunk out of you. These people are fraudsters, criminals, and scammers of epic proportions looking to make your life miserable with a ridiculous array of crypto-scams. Here at the Cryptocurrency Army our main goal is to keep you safe from scams, let you know about the legitimate trading applications out there, and to teach you everything there is to know about cryptocurrencies.
Here at the Cryptocurrency Army our mission is to keep you safe from scammers, criminals, and fraudulent peoples of all sorts. Were here to evaluate trading programs, investment opportunities, and to review anything and everything to do with cryptocurrencies. Whether Bitcoin, Ethereum, Litecoin, or any other form of digital currency, our goal is to ensure that your money is right where it should be, in your own pocket and not in the hands of scammers. To learn about cryptocurrencies, check out our section titled Cryptocurrency Explained and for info about the latest crypto-scams, visit our section titled Scam Report.
Homepage – Cryptocurrency Army
When you look at the complexities that go into making a physical dollar bill its plain to see why most people dont start trying to print a new form of currency every day, but making a new digital currency is surprisingly easy for someone with even basic coding skills. But coding isnt the only step to getting your digital currency off the ground. Here are the five steps you should follow according to the makers of three cryptocurrencies.
When you think about creating a new digital currency its easy to assume the first step would be to begin coding your coin, but thats the wrong place to start, according to Chris Ellis, a London entrepreneur and a community activist at Feathercoin.
The first step is to find a community and build a currency around them rather than building a currency and expecting everyone to show up, Ellis says. It has to be sensitive to their needs and be relevant to their cultural heritage and background.
Feathercoin was created by Peter Bushnell in April 2013. Bushnell left his job as head of IT at Oxford Universitys Brasenose College because he wanted to start his own currency that put people at the center. This was in response to what he saw as a lack of community involvement and inclusiveness by the existing cryptocurrencies, such as Bitcoin, on the popular cryptocurrency site bitcointalk.org.
Though he had not met Bushnell at the time, Ellis, who had been actively promoting and educating people on cryptocurrencies since last March, shared the sense of alienation and seclusion found on Bitcoin forums.
These forums were very tech focused and not very welcoming to newcomers or minority groups which are often served better by smaller teams, Ellis says. The forums did not make it easy for people to get involved in the development of the coin. Many people on these forums take a backseat and speculate on the price rather than actively getting involved.
Ellis found the cryptocurrency community activism he was looking for in Feathercoin, whose technical development he says benefits greatly from its community activism approach.
For Feathercoin we were a group of crypto enthusiasts, some of whom were new to the scene but who felt shut out from the rest of the space, Ellis says. Everyone at Feathercoin feels its important to demonstrate how a devoted group of people can establish a stable currency, he says. By working together a community of dedicated crypto enthusiasts are much better able to find and address vulnerabilities and security threats, like the 51% attack, which the community of coders at Feathercoin have successfully built protections against.
Building such protections and nurturing the development of your currency give your coin legitimacy and trust in the eyes of the public, something that is hard to do if those involved in the currency are passive spectators looking out for their own interests.
Surprisingly, every single currency developer I spoke with said the same thing: Coding your cryptocurrency is usually the least time-intensive part of the process. Thats because virtually every cryptocurrency on the market today is based on the open source code of Bitcoin or Litecoin that is available on GitHub.
The creation itself does not take long. It is maybe only a day, says Peter Otterbach, one of the creators of Coino, which bills itself as the fastest cryptocurrency on the market with a maximum transaction time of only 50 seconds. To start coding you just need to know about C++ to build your own features in it.
The length of time could be a little longer than a day, however, according to Kolin Evans, developer of the Quark cryptocurrency. In coding the most complex steps may be related to how complex you plan to have the individual parameters of the blockchain, Evans says. For example, many currencies just use the Litecoin code and copy it, but with Quark there was a whole new Hash algorithmthat is to say, its separate from both Bitcoin and Litecoinso this aspect if you were to change it would certainly be the most difficult. And time consuming. In this case coding a cryptocurrency could take months. However, Evans notes that if a developer is just reusing code from GitHub and changing some simple parameters, thats something a competent coder could do in literally 30 minutes.
But just because anyone with some C++ skills can make their own cryptocurrency doesnt mean that there will be as many currencies as, say, iOS apps one day. Feathercoin is in fact a fork of Litecoin, says Ellis. It began with the minimum number of parameter changes because we felt the most important feature of a currency was survivability.
However, the Feathcoin team noticed that a few of the currencies that came before didnt last very long because they included a novel feature set which would gain short-term speculative hype but then the team often werent able to follow through on the stewardship of the project longer term and the project would fail. In other words, the developers of those coins that failed probably wanted to make some cheddar on some quick coin creation and didnt want to work at developing the currency for the long runsomething which doomed them from the start.
You have a duty of care at the development end in terms of bug fixing and ensuring the promise made at launch but you also have a duty to educate people of the risks and give them what they need to secure their wealth, Ellis says. If you cant do that, no one is going to stick around to use your coin, and the mining of it will drop off as quickly as downloads did of the first Doodle Jump knockoffs.
Once youve developed your coin you need to spread the word so people start mining it, which raises awareness of its existence and hopefully begins to gain some value in the eyes of its miners and users. This is where makers of cryptocurrencies need to stop thinking like coders and instead look into how human beings put trust (and value) in things.
A good start is half the way there and so this involves building trust, expressing your vision and intentions to miners, who have the hardware you need, and getting them on board with the opportunity ahead, Feathercoins Ellis explains. You have to be honest and respect peoples expectations and their tolerance of risk, which many people overestimate.
Overselling your coin will backfire. Including novel feature sets just to try and stand out will not work either. The market is there to test your grit and determination. You need a group of loyal miners committed to the cause who will process your payments even during slumps in price because they believe in the eventual outcome. Its about good communication and team building.
Many coins have failed because they undervalue the soft stuff. They think that throwing technology at a problem will make it disappear. Central banks think throwing money at problems does the same; the world has never worked this way. You have to be good at knowing what work needs to be done and be prepared to do the jobs nobody else wants to do.
Lets says youve made it this far. Youve conceptualized a good cryptocurrency and brought the right team together to code and nurture it along its way. Youve spread the news around the cryptocurrency forums and theres a healthy dose of miners actively working to grow your currency. The next step is marketing your currency so all the people mining it have a place to spend it. This is no small feat. After all, you need to convince individuals and merchants that these digital bits youve created hold value and can be traded for things, just like traditional, trusted money.
Its a process of confidence building, Ellis says. It takes good stewardship and time to work out what you really believe and stand for. People will buy in to your motives more than your actions, so once you feel confident you then have to start talking about your currency to friends, merchants, on Internet forums and on social media.
The people behind Coino agree. To start the marketing you need to find the exact target group, Peter Otterbach says. At first you can just start at the cryptocurrency market itself because the people there know about coins and you see the first reactions. After that it gets more difficult. You need to convince people who mostly dont even know what a cryptocurrency is, so you have to get the currency accepted as a payment solution in online shops to get their attention.
I would add its not just about educating them with facts, Ellis notes, its about inspiring them to learn and discover the advantages for themselves. Money is a ledger, it is a tool that people will use as a way of achieving their goals and satisfying their needs. Understanding that will take you a long way in your marketing efforts.
Ellis says that merchant adoption is similar to miner adoption, its just a matter of understanding their different outlooks. Different stakeholder, same rules. The difference is that miners have a speculative sentiment and merchants are conservative. He notes that merchants have three principal aims: to make money, to save money, and to increase their awareness. If you can bring them customers and increase their sales while reducing their payment fees, the rest is a matter of persistence and making it as easy as possible to get them started.
The last step in your cryptocurrency journey is, according to pundits and conventional wisdom, world domination by your coin. But given that in over 5,000 years no single currency has dominated the globe, its very unlikelyno matter what Silicon Valley Bitcoin enthusiasts saythat any one cryptocurrency ever will.
Besides, global cryptocurrency domination doesnt have to be the goal, Ellis says. Currencies can be local, indeed we think of Feathercoin as a local currency that can serve a global market.
And therein may lie the true market for the burgeoning field of cryptocurrency: hyper-local currencies for certain neighborhoods, cities, events, venues, and groups of people that are built around a community of like-minded consumers allowing them to trade freely, quickly, and securely for goods and services that are important in their lives instead of having to rely on the central banks and larger markets to tell them what arbitrary item, be it a copper coin or a plastic dollar, holds value.
Indeed, in a market where cryptocurrency use is defined by neighborhood boundaries or group memberships there is no need for any one cryptocurrency to win. Theres room for them allexcept maybe the ones with memes.
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How To Create Your Own Cryptocurrency – fastcompany.com
Cryptocurrency prices that reached dizzying heights in late 2017 and into 2018 have plunged back to earth this year, bolstering the arguments of skeptics that the scorching hot market for digital money was an economic bubble due to burst.
According to Bloomberg News, the MVIS CryptoCompare Digital Assets 10 Index has fallen 80 percent from its January high — worse than the Nasdaq Composite index’s 78 percent peak-to-trough plunge following the dotcom-stock bust in 2000.
Bitcoin, the most widely used cryptocurrency, started the year priced above $17,000. It recently changed hands on $6,261, a drop of more than 60 percent, according to CoinDesk.Rival cryptocurrency ethereum recently traded at $173.25, down nearly 90 percent from its January high of $1,414.90. The total value of the top 100 cryptocurrencies tracked by CoinMarketCap, once nearly a trillion dollars, was pegged most recently at $188.5 billion, near its all-time low of $187 billion.
To be sure, fans of cryptocurrency have claimed that, much like the early Internet, digital money is an idea that will catch on eventually. They also note that prices have rebounded from steep sell-offs in the past. Indeed, there likely are bitcoin holders still in the black from the 1,500 percent price increase they experienced in 2017.
Bitcoin, which was first proposed by a person or persons who used the pseudonym Satoshi Nakamoto in 2009, has gained popularity among some investors as an alternative to conventional, or “fiat,” currency. The digital version is “mined” electronically by solving complicated mathematical equations. Converting cryptocurrency into “real” money can be tricky since it isn’t widely accepted.
Some of the leading figures in the investing world, including Warren Buffett, who likened bitcoin to “rat poison,” and JPMorgan Chase CEO Jamie Dimon, have urged investors to avoid the cryptocurrency market. The view, however, isn’t unanimous on Wall Street.
In a recent interview with CNBC, Mohamed El-Erian of Allianz Capital noted that the underlying blockchain technology behind cryptocurrencies, has some long-term potential and that bitcoin itself could be a buy if it falls below $5,000.
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