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Fred Wilson: 2019 Will Find the Bottom and 'Slowly' Enter ...
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Warren Buffett-you're wrong!
After Warren Buffett once again criticized bitcoin and the cryptocurrency industry the Icelandic company Genesis Mining, which provides services in the field of cloud mining, decided to remind the famous investor that not all his judgments in the past were correct. A co-founder of Genesis Mining Marco Krohn said on Twitter that his company has installed billboards in front of Buffett's office, with which they tried to show that in this situation not everything is so clear. "Warren, you said you were wrong about Google and Amazon. Maybe you are wrong about bitcoin?" At the beginning of May Buffett and his partner from Berkshire Hathaway Charles Munger did not mince words, criticized bitcoin, called bitcoin "rat poison in the box" and reminded investors that they would be in a deplorable situation, as soon as "the euphoria will evaporate". A week before, Buffett said that buying bitcoin had nothing to do with investing, but rather is a speculative game each participant of which hopes that he will be able to resell the cryptocurrency at a higher price. In response to these statements venture capitalist Fred Wilson wrote that bitcoin is a full-fledged investment, because"it feeds the decentralized infrastructure that exists on the basis of fundamental Internet protocols." http://casperproject.io
Battle Over Bitcoin: China Backs US Startup Coinbase And US Falls Behind In Virtual Currencies.
Indeed, virtual currencies are nothing new to the Chinese. For example, more than 100 million people on the social platform QQ have used the Q coin for more than 10 years. And after China’s state-run China Central Television, or CCTV, ran a half-hour-long documentary on bitcoins, downloads of apps for processing and “mining” bitcoins soared in the world’s second largest economy. Bitcoin, long the plaything of the Western ubernerd, now appears poised to grow substantially in China and other markets, like the euro zone, where government meddling in native currency valuations has left many distrustful of the money in their bank accounts. Americans don’t have this problem -- yet. And that may be a problem in itself. According to bitcoin proponents, if the U.S. tries to ignore the nascent currency, writing it off as a financial fad with less value than the seemingly stable dollar, Americans risk ceding to the Chinese and others control of the future of what could be the most disruptive force in monetary exchanges since the credit card. In turn, the dollar and the ability of the U.S. to navigate global currency conflicts could be seriously weakened. “Here’s the bottom line: Bitcoin has much higher popularity outside the U.S. and much higher potential outside the U.S.,” observed Andreas M. Antonopoulos of the Bitcoin Foundation. “If you go to an American and say, ‘Hey, there’s this new thing, bitcoin,’ they say, ‘Well, what’s wrong with the dollar?’ That question is different in other countries.” Bitcoins are a finite, Web-based currency created in 2009 by a group of hackers working under the nom-de-Internet Satoshi Nakamoto. Exactly 10,952,975 bitcoins are in circulation, all of which have been purchased on exchange networks or mined. The currency is mined using software that processes transactions on the bitcoin network, adding groups of transactions, called blocks, to the chain. Miners are paid about 25 bitcoins per block. That digital money can then be used to purchase a variety of goods online, from legitimate software to heroin on the infamous virtual black-market Silk Road. Bitcoin surged in value to $266 last month, thrusting the currency into the mainstream spotlight as investment poured in from sources as diverse as the hapless Brothers Winklevoss (of Facebook infamy) and Union Capital Ventures principal Fred Wilson (an early investor in Zynga, Twitter, and Kickstarter). Suddenly, everyone was talking about buying bitcoins. But the bubble burst in late April, and in the U.S. at least, bitcoin faded from the news. That was not the case in China, where Antonopoulos said downloads of bitcoin clients have eclipsed those in the U.S. Bitcoins are mined in several steps. After downloading a bitcoin client, such as Coinbase (which serves as a wallet in which to store the bits of code that constitute the digital money), miners often join pools where they share computing power to decode algorithms in which bitcoins are hidden. The concept of bitcoins and bitcoin mining is cryptic for many people, even some otherwise forward-thinking American investors. The irony is that, for now, American startups are leading the bitcoin charge, and the U.S. government was the first to issue guidance on using the currency as payment -- a seemingly tacit recognition of bitcoin’s validity as legal tender. Why China Poses A Threat Feng Li, the IDG partner who chose to fund Coinbase, said the Chinese have yearned for access to a virtual currency since the central government cracked down on the use of Q coins. Q coins were introduced in March 2002 by Tencent Holdings Ltd. (HKG:0700), the parent company of the country’s most popular instant-messaging service, QQ , and they currently average an annual transaction value of more than 1 billion yuan ($163 million). That value is growing at about 15 to 25 percent each year. Q coins, purchased with yuan, are predominantly used to buy virtual products and services in QQ and its related online games and social media. Originally, Tencent regulations prevented Q coins from being traded between users or converted back to yuan, but allowed users to trade points and purchase Q coins with their game accounts, then use the black market to convert them into cash. That caused concerns at the People’s Bank of China, China’s central bank. In January 2007, converting game points to Q coins was banned, and Tencent reiterated that Q coins constitute a product, not a currency, which seemed to satisfy the concerns. “There has already been proof with the Q coin,” Feng said of the Chinese likeliness to start using bitcoin. “It’s been very well circulated and very well adopted.” Already, shops on Taobao -- the Chinese equivalent to eBay Inc. (NASDAQ:EBAY), owned by Alibaba.com Ltd. (HKG:1688) -- accept bitcoins as payment for goods, as does the similar service, Tencent’s PaiPai.com. The Chinese are embracing bitcoins in other ways. The first bitcoin fund began to raise money in June, with the goal of raising 20 million yuan. The fund’s investment threshold is 10,000 yuan, and it will mature in four years. Q coin’s popularity isn’t the only reason bitcoin has appeal in China. As it turns out, China is the perfect place for bitcoin mining. While much of the developed world is well into the transition from personal computers to mobile devices, China’s PC market is still thriving, which provides the necessary computing power to run a successful business converting electricity into mined coins. Price caps on electricity already create wasteful use of energy in China, so running a code-crunching computer for hours on end isn’t as costly an investment as it would be in the U.S. And so-called “gold-mining” or “gold-farming” businesses already exist in China’s cybersphere. None of that will come as a surprise to any “World of Warcraft” player: Gamers in Chinese urban sweatshops are known to sit in front of glowing blue screens for hours, slaughtering players in the game for their spoils or mining gold deposits found in the sprawling milieu of Blizzard Entertainment’s international blockbuster. Those treasures are then sold to players in the game for real money. China has a heavily controlled currency, which also makes bitcoin attractive. “The more controlled the currency is, the harder the transactions are, the more friction there is in the national currency, the more appealing the coin is,” Antonopoulos said, noted that the most appealing place to use bitcoin would be a country whose economy is a veritable train wreck -- like Zimbabwe, except that the southern African nation lacks the necessary technology. “I would say China is perfect,” he said. “It’s got the penetration, it’s got the smartphones, it’s got the Internet and the people are familiar with virtual currencies. And, it’s got the not-as-appealing national currency.” Regulation In The U.S. Guidance issued in March by the U.S. Treasury Department said that companies issuing or exchanging online cash, including bitcoin, would be subject to the same scrutiny as traditional firms such as the Western Union Co. (NYSE:WU) to prevent money laundering. Less than two months later, the Department of Homeland Security proved that edict had teeth. Federal officials obtained a warrant Tuesday to seize an account tied to Mt.Gox, the Tokyo-based exchange company that handles about 80 percent of all bitcoin trades. Authorities accused Mt.Gox’s U.S. subsidiary, Mutum Sigillum LLC, of failing to register as a money-services company with the Treasury’s Financial Crimes Enforcement Network. An account held by the online-payments firm Dwolla was subsequently seized. Many feared the warrant execution could cast a chill over the bitcoin industry as a sector centered on a borderless, decentralized money came under the scrutiny of the federal government. That proved not to be the case, Coinbase’s Ehrsam said. “For bitcoin to go mainstream, or as it goes mainstream, it will be used in a higher and higher amount of transactions,” he said, adding that Coinbase is registered as a money-services firm. “There’s no way there will be all this money flowing through an unregulated system.” Chris Larsen -- the CEO of OpenCoin, a fellow San Francisco-based payment platform that processes most national currencies as well as bitcoin and its own virtual cash, Ripple -- agreed. “They definitely are regulating them, [and] we actually think that’s a really good thing for the industry,” he told IBTimes. “I thought the guidance was a good idea. One of the things the guidelines seem to make clear for the first time is that a virtual currency could be used for goods and services.” The Price Of Regulation But such regulation is a slippery slope, said Jerry Brito, a senior research fellow at the Mercatus Center at George Mason University. Perhaps it begins with measures to prevent money-laundering, he said. But what measures would the government take to prevent the untraceable currency from being used for child pornography or human trafficking? “Bitcoin has the potential to be a disruptive technology that would be beneficial to the economy, and we don’t want to kill off that potential to get at the other potential for bad stuff,” he observed. Brito, who plans to speak next month at a conference on virtual currencies organized by the National Center for Missing and Exploited Children, added: “We’re already the first country to enforce money-laundering laws against bitcoin. But the U.S. would be shooting itself in the foot if it went too far [with regulations] and either outlawed bitcoin or made the legal guidelines impossible to comply with.” Will China Step In? So far, Chinese bitcoin merchants have little to fear. For many, the CCTV segment on bitcoin seemed to be a signal from Beijing, which heavily controls the channel’s content, that the currency is worth exploring. Some of those interviewed speculated that the Communist Party wants to see bitcoin stockpiled in China, allowing the government to invest in it if, or when, the dollar is shaken from its perch as the world’s reserve currency. It remains to be seen whether -- or, more likely, when -- China will intervene in the trade of bitcoin in its own economy. But for the U.S. to experience widespread adoption of the currency, which is considered a necessary step for gaining a grasp on the bitcoin market, limited government control will have to allow the money, like the Internet that birthed it, to develop organically.
"Bitcoin is dead, long live bitcoin" - Fred Wilson
Fred Wilson has a pretty solid daily mailing and is very involved in the VC community. A lot of people read it. This was his post today (edit: link): Bitcoin is dead, long live bitcoin I’ve been writing about the Bitcoin blocksize debate here at AVC (the only place I write and I’m hard core about that) for the past year. It’s a big deal. At the core of the debate is whether the Bitcoin blockchain should be a settlement layer that supports a number of new blockchains that can be scaled to achieve various goals or whether the Bitcoin blockchain itself should evolve in a way that it can scale to achieve those various goals. In my simple mind I liken it to this. Should Bitcoin be Gold or should Bitcoin be Visa. If it is Gold, it’s a store of wealth and something to peg value to. If it is Visa, then its a transactional network that can move wealth around the globe in a nanosecond. Mike Hearn, one of the early members of the Bitcoin core developer team, published a blog post yesterday stating that “Bitcoin Has Failed” in which he explains that the block size stalemate plus a few other big issues have led him to believe that Bitcoin is now a failed experiment. When one of the most important people in Bitcoin states something like that you have to listen. I read his entire post a couple times. And I generally agree with his description of what has happened and, more importantly, what has not happened. I’m not ready to declare that Bitcoin has failed. But I’ve always viewed Bitcoin as an experiment that could fail and I still do. I personally own a material amount of Bitcoin, but in our personal asset allocation it is at the very bottom, below our wine collection. And I’m not a wine collector. In every Bitcoin investment we’ve made at USV, and we’ve made four with multiple rounds in one, we have identified the failure of Bitcoin as a core risk element. We haven’t stopped including that in our risk factors. So we have our eyes wide open about the fragility of Bitcoin. But we also have our eyes wide open about the potential and the importance of this technology. I personally believe we will see a fork accepted by the mining community at some point this year. And that will come with a new set of core developers and some governance about how decisions are made among that core developer team. But it could well take a massive collapse in the price of Bitcoin, breakdowns in the Bitcoin network, or worse to get there. And all of that could cause the whole house of cards to come crashing down. Anything is possible. Even the return of Satoshi to fix things as an AVC regular suggested to me in an email this morning. The Bitcoin experiment is six years old. There has been a significant amount of venture capital investment in the Bitcoin ecosystem. There are a number of well funded companies competing to build valuable businesses on top of this technology. We are invested in at least one of them. And the competition between these various companies and their visions has played a part in the stalemate. These companies have a lot to gain or lose if Bitcoin survives or fails. So I expect that there will be some rationality, brought on by capitalist behavior, that will emerge or maybe is already emerging. Sometimes it takes a crisis to get everyone in a room. That’s how the federal budget has been settled for many years now. And that may be how the blocksize debate gets settled to. So if we are going to have a crisis, let’s get on with it. No better time than the present.
Bitcoin Cash can turn in to the biggest non violent protest against the establishment ever : "We simply stop using their money." Which is a great way of getting edgy teenagers to join us. There is an almost infinite supply of edgy teenagers in the world. (153 points, 42 comments)
The next wave of attack will be all the big internet giants supporting Bitcoin Core and LN. Facebook, Microsoft, Twitter, I bet you that the more successful Bitcoin Cash becomes the more you will see big cooperation’s be forced to go with compromised Bitcoin. (25 points, 28 comments)
Just because the nChain patents aren't on the base protocol level doesn't mean it's a good idea, BCH could end up with patents which are so part of its normal use it will effectively be part of it. (13 points, 33 comments)
BCH showerthought: The first one or two killer apps for Bitcoin Cash that drive mass adoption will be the thing that decides the standards/denominations based on what people are using and catches on. Not a small forum poll or incessantly loud Twitter spam. (167 points, 24 comments)
VCs not Investing in Blockchain: VC investment in blockchain and Bitcoin companies hit a new low in number of financed companies. While the total sum of investment was relatively high, half of it came from financial institutions and tech giants rather than VCs.
But Banks & Tech Corporations Do: Microsoft, Intel and Amazon, together with top financial institutions such as Bank of America and Citigroup are presenting new blockchain solutions to developers, but the VCs are still lagging behind them in terms of investment and involvement in the industry. Exceptions: Lightspeed, Union Square, and Andreessen Horowitz each hold an average of five portfolio companies in the blockchain and bitcoin space.
ICO Storm: ICOs are exploding, bringing in $1.73 billion dollars since the beginning of 2017, five times the total capital raised by ICOs by the end of 2016. Fight or Flight: VCs are afraid to jump into blockchain investment because of the competitive threat ICOs pose; because of heavy regulation, due to treating crypto tokens as securities; because of too many bankruptcies and too few success stories; inability to create monopolies; Blockchain’s lack of scalability; and because of the inability to separate Blockchain infrastructure from the shady aspects of Bitcoin. Blockchain technology has been a buzz word for quite some time, yet it is Terra Incognita for most industry leaders, and is a space that still suffers from underinvestment. As the black swan of the tech world, blockchain hasn’t managed to acquire the place other buzz-related technologies, such as self-driving cars or A.I., acquired long ago. Associated with the high volatility of Bitcoin, and some of the shady activities that have exploited the digital currency, blockchain is still raising too many question marks in the eyes of the VCs, the same people who usually pioneer investment in revolutionary innovations.
But there are other possible reasons for the lack of Blockchain support by VCs. A major force behind VC objection to blockchain technology is called ICO, or Initial Coin Offering. ICOs are a blockchain, token-based fundraising alternative that is quickly becoming popular, making VCs and their traditional, slow, and sometimes heavily taxing process completely redundant. ICOs not only simplify the investment process, but also provide ways for startups to share equity and other benefits with their investors, their users, suppliers, and the entire community around them. In that light, ICOs are filling the financing gap that VCs and other investors are leaving behind. So far, 2017 is the breakthrough year for ICOs as $1.73 billion has been raised by startups using token sales, and ICO fundraising is forecasted to reach $1.8 billion by October. Notable ICOs include those of Tezos ($208M), EOS.IO ($200M), Bancor ($153M), and Status ($95M), as well as about 60 token sales in total. Have the investors made a profit? It depends, but the total market cap for all Altcoins (Cryptocurrency excluding Bitcoin) has risen from $2.2B on January 1st to roughly $71B yesterday. This is an increase of over 3200%, so yes, some investors are definitely happy. For unbiased ICO reviews go to Coin.best. For unbiased research reports on startup companies go to Zirra But Blockchain technology extends way beyond ICOs and even digital coins. Leaving currency aside, blockchain turned out to be a viable system of value sharing with no need for a trusted third party, such as a bank, or any centralized system. Blockchain can be used as a trusted digital ledger for an infinite selection of applications: it can be used as the infrastructure of a digital wallet, a voting system, or a platform that authenticates identity, ownership or certification, or certifies the traces of a supply chain. Microsoft and Intel have developed their blockchain frameworks for enterprises and financial institutions such as Citigroup and Bank of America has been investing in blockchain startups. Yet VCs are not buying. Is it moral bias? Fear from the impact of ICOs? Seeing something the others don’t or simply “staying behind the curve”? It’s difficult to tell. Fact is, VCs are not aligning behind blockchain, leaving a vacuum that quickly fills up while posting possibly the biggest gamble for the future of their own ventures. How alienated are VCs from the blockchain industry? According to a recent study by CB Insights, traditional equity-based investment (non-ICO) in blockchain companies hit in the second quarter of 2017 their lowest point since 2013, to 16 financing rounds. However, these 16 rounds totaled in $232 million, which was actually as high as the entire VC investment in self driving cars in the entire first half of the year. But VCs were just a small part of that picture. Almost half ($107 million) of the VC-based quarterly funding for blockchain companies went to the banking consortium R3, which was actually funded by the largest financial institutions such as Bank of America, Citigroup, Barclays, Credit Suisse, HSBC and tech giants such as Intel. Another $40 million went to the Bitcoin-based digital wallet Blockchain, from cryptocurrency-oriented investors such as Digital Currency Group, and mainstream VCs such as Lightspeed and Mosaic. As the graph below shows, top VCs are hardly in the blockchain game, hesitant to invest in more than one or two companies per quarter altogether around blockchain technology. Only a portion invested in more than one company in the space in total. Notable VCs Lightspeed, Union Square, and Andreessen Horowitz each hold an average of five portfolio companies in the blockchain and bitcoin space. So, who are the most dedicated investors in bitcoin and blockchain technology? The leaders are cryptocurrency-dedicated funds and hedge funds such as Digital Currency Group, Blockchain Capital, Pantera, Fenbushi Capital and Future Perfect. They are joined by a small group of innovative VCs ,managed by partners who are keen to cryptocurrencies such as Marc Andreessen (Andreessen Horowitz), Fred Wilson (Union Square), and Tim Draper (Draper Associates). Blockchain is not waiting for VCs to enter the game. It is exploding. Here are 3 major signals for this: 1.ICOs are exploding: In the meantime, it seems like everyone but VCs have joined the blockchain party. The ICOs were the ones who took the bigger bulk of business press attention in the second quarter, raising about $750 million for 60 companies. However, VCs and other institutional investors were not among the investors, as long as ICOs are not regulated and are outside the charter of investment given to general partners by their limited partners. 2.Cryptocurrency, not just Bitcoin, is experiencing great momentum. The graph below tells the story. Bitcoin is barely the whole picture. Other blockchain-based cryptocurrencies such as Ethereum and Ripple are on the rise. This graph shows the total market capitalization for the top seven cryptocurrencies excluding Bitcoin: Here, Ethereum and Ripple can be seen gaining more and more market share of the entire cryptocurrency market: 3.Enterprises are pouring in: Technology corporations and financial institutions didn’t wait for the VCs to come and adopted their solutions for blockchain-based decentralized networks. Among tech giants, leaders Microsoft and Intel have been pushing blockchain agendas for internal use among their customers, which are mainly big companies. Earlier this week, Intel and Microsoft joined forces to launch Coco, a blockchain framework for business that processes about 1,600 transactions per second, 1000X more than comparable blockchain frameworks, such as Ethereum consortium. The new platform uses Ethereum-based smart contracts and enables confidentiality and security over the network with the aid of other distributed ledger systems. With Coco, fashion retailers, for example, might form a blockchain consortium to verify authentic designer merchandise, and track delivery, payments, and stock inventory. Earlier in 2015, Microsoft announced a cloud-based blockchain developer environment for Azure, its cloud platform. Since then, the company has partnered with numerous blockchain technologies such as HyperLedger Fabric, R3 Corda, Quorum, Chain Core, and BlockApps. Competitor Amazon made a similar move, partnering with blockchain investment firm Digital Currency Group to offer an experimentation environment for startups and developers and partnering with a few blockchain companies on its AWS cloud platform. Google too is in the game, although not directly, investing through its VC in Ripple, the third largest cryptocurrency after Bitcoin and Ethereum, and in Blockchain, a bitcoin wallet startup. At least two large-scale blockchain projects are permissioned by global enterprises: Open-source project Hyperledger, established by the Linux Foundation, is partnered with Intel, J.P Morgan, SAP, Fujitsu, Accenture, Daimler, and R3. Many of these organizations are also a part of the Ethereum Alliance, with the addition of enterprises such as Microsoft, BBVA, Credit Suisse and more. So, to sum up, why are VCs so afraid of blockchain? There are quite a few reasons for this: Fear of the impact ICOs have on traditional VC business: VCs have sustained many threats, from family offices taking up innovation, crowdfunding, and private equity firms digging into investing in startups directly. But never has the danger been so clear and imminent as with ICOs. In the long term, ICOs as a funding vehicle for start-ups could rival the traditional VC model. Blockchain tokens issued by start-ups during an ICO are a more liquid asset than any stock in a private company held by VCs. In the current situation, venture capital funds are an illiquid asset class, and they have to wait 7-10 years to realize their results and measure the IRR. But blockchain tokens are immediate and can disclose a company’s momentum in real time. Naturally, VCs would feel suspicious regarding a real-time investment model that challenges them. Also, ICO might bring to the table another new kind of investor, making deals less exclusive than what they used to be, on a scale that crowdfunding hasn’t done yet. On the other hand, this will demand disclosure by startups of performance indicators in the public domain. In that way, GPs and LPs will have a clearer idea of the performance of their portfolio. Inability to separate blockchain as an infrastructure for businesses from Bitcoin and ICOs: Blockchain is a technology concept that can turn over industries. It is a secured and distributed electronic ledger, which allows all transactions – such as payments, loans, and contracts- to be tracked in real time. Bitcoin is a coin that can be used for digital transactions, and ICOs are a method for raising money using the offering of digital coin based tokens. Most VCs will not even go so far as understanding these nuances, not to mention acting rationally upon each of these sectors. Inconvenient Regulation: Last month the SEC declared blockchain tokens to be considered securities, rather than assets. This decision puts the U.S in an inferior position relative to countries such as Switzerland and Singapore that treat blockchain tokens as assets. In order to attract investors and make the ICO process easier, U.S blockchain companies might list in those countries, or else use regulation S and D exemptions with the SEC in order to raise funds. That limits American funding to a mere 99 accredited investors, but does not limit global investments. Few exits and high rate of failure: As an immature discipline, Bitcoin and blockchain companies not only have a poor history of exits, but also a high rate of failure. According to research focused on cryptocurrency investments listed on the Coindesk database, 14% of a total number of VC-backed blockchain and Bitcoin companies went bankrupt or were sold in a fire sale. 85% of them were focused on Bitcoin. The numerous M&As in the business mainly concentrated around Bitcoin exchanges, and do not seem to be related to VCs. Blockchain was unscalable and not business oriented until recently: Putting aside cryptocurrency mining, which consumes a lot of energy, blockchain frameworks are not efficient enough for business applications. Ethereum, for example, processes around 16 transactions per second. However, Microsoft has recently showcased a blockchain framework that processes 1,600 transactions per second. Inability to create a monopoly: Investor Peter Thiel once said that “entrepreneurs starting a company should aim for monopoly and avoid competition.” However, the idea behind blockchain, a decentralized and public network, is intolerant to monopolies. Investing in ICO is still dangerous: In the current situation, direct investment in ICOs entails perils for VCs besides regulation. This includes a complicated process of cashing out (of a digital coin), currency’s high volatility, the high cost of capital in due diligence, and a reduced defensibility in the case of a large investment, according to a paper by Lerer Hippeau investment firm. How Can VCs Get Involved with Blockchain? It might be a little too late for VCs to join the blockchain revolution. The original early stage cherry-picking model of VCs calls for identifying a revolutionary technology before anyone else, rather than jumping on an already moving wagon. In addition to traditional equity investment in blockchain-oriented companies, VCs can act prudently, starting with new and creative formations. For instance, they can raise blockchain dedicated funds or hedge funds, re-contracting their LPs regarding the new rules of the game, such as raising a part of the fund through ICO or investing in liquidated securities such as cryptocurrency tokens. Another option is to invest in the economy created by an ICO, or in its token adoption, rather than buying tokens in the ICO itself. This can be done by providing money, real estate, computing power, guidance or support to developers that are building on top of the blockchain protocol. We at coin.best provide unbiased ICO reviews through an objective analysis and rating system, allowing blockchain investors to better understand the ICO market
juanbenet some questions! Advisor sale has raised 52 million, does that me the public sale starts at $1.35 or does it start at $1.00? How many confirmations are needed for Ethereum vs. Bitcoin vs. Zcash? AWS and Apple have caved in on privacy in China. Does IPFS work there and what will you do if the Chinese govt. contacts you about censorship? Is there going to be any annual/quarterly reports coming out of the Filecoin progress? What is the goal for advertising the Filecoin network? Word of mouth or something else? Are you concerned about mining consolidation to a few miners where internet and storage are really cheap? In 2 years, what will the Filecoin network look like if everything goes according to plan? Fred Wilson is on the board of Coinbase. Is there a non-zero chance that Filecoin gets listed there at the network launch? I imagine a pirate/criminal use case for Filecoin would be to record NFL games and distribute online. What would you do if the NFL requested you take a video down?
Swarm coins can generate a new coin, are you serious?
Yep, it's a pretty cool thing that was never possible until now. You can get coins for all of our future launches simply by having some SwarmCoin. We expect this distributed incubator model to dramatically impact how business are started and run since it has the possiblity of dramatically accelerating a company's path to market. Just think about it, you start off with a bunch of engaged users from the beginning and they give you money. What could be better than that? Can I mine swarm? No. All 100,000,000 coins are set at the beginning and locked so that no more can ever be created. You can get some SWARM in the fundraiser. How did you come up with this idea? I was initially inspired by the Decentralized Applications whitepaper (https://github.com/DavidJohnstonCEO/DecentralizedApplications) and Vitalik Buterin's writings on the Distributed Autonomous Organizations, including the Ethereum whitepaper (https://github.com/ethereum/wiki/wiki/%5BEnglish%5D-White-Paper). This led me to write my own paper about the possiblity of distributed governance (https://github.com/fractastical/distributed-governance/blob/mastewhitepaper.md). I then notice that folks in the VC industry who were very aware of the limitations of that model and some of the barriers to crowdfunding, including Fred Wilson of Union Square (http://avc.com/2014/03/unregulated-crowdfunding/) and Naval Ravikant of AngelList (http://startupboy.com/2014/03/09/the-bitcoin-model-for-crowdfunding/). After some more research, I did some writing for Let's Talk Bitcoin, Bitcoin Magazine, and my private blog, including articles on Cryptocurrency Crowdfunding: Problems and Potential, (http://evergreenthoughts.quora.com/Cryptocurrency-Crowdfunding-Problems-and-Potential; Bitcoin crowdfunding: Naval and Fred step up to bat, http://evergreenthoughts.quora.com/Bitcoin-crowdfunding-Naval-and-Fred-step-up-to-bat; AppCoin Manifesto, http://letstalkbitcoin.com/too-many-coins/; For Us By Us: Bitcoin Needs To Move Out of the Crypto-enthusiast Box, http://bitcoinmagazine.com/11133/us-us-bitcoin-needs-move-crypto-enthusiast-box/; Why Bitcoin is not a currency, http://evergreenthoughts.quora.com/Why-Bitcoin-is-not-a-currency). The rest came together gradually as I tried to figure out the appropriate technology set to build off of and to put together a team to work on this. What technology set are you using? At the moment, Bitcoin, the second generation protocol Counterparty (https://www.counterparty.co), and a customized vending machine on Counterparty that automatically generates and distributes user-created assts. We anciticipating supporting other 2.0 protocols once they support automatic asset generatoin. Is this legal? We believe this falls into section (1)(d) of our Cryptoequity whitepaper (https://docs.google.com/document/d/1qY0GCGKByXc8aeUaHIgggaSGzYjYHKCY0TeLKYt9b3I), meaning it is allowable under U.S. law and is probably not problematic elsewere. That said, we are not laywers and advise you to consult the local law to see if and what you are doing is regulated. Is there a pre-mine? 8% of the holdings goes to the Swarm reserves, which is split between founders, swarm representatives, and bounties for specific projects. We wanted to avoid a large pre-mine, since that creates misaligned incentives: https://gist.github.com/fractastical/b236024cd106e97b38d0. That said, we thought if there was no pre-mine then founders and early contributors would have less incentive to see the project to completion. We hope we've reached a healthy balance. How will this influence the Bitcoin price? Reliable infrastructure allowing asset issuance via the Bitcoin Blockchain will probably boost the price of Bitcoin significantly, as people will buy Bitcoin in order to access other assets that are available via our platform. Are you a DAO (Distributed Autonomous Organization) ? We are laying the groundwork for Distributed Autonomous Organizations that exist entirely on the blockchain. As more functionality exists, we will integrate it into our platform. Are these coins secure? Will it be vunerable to a 51% attack? We build on Bitcoin 2.0 technologies, specifically Counterparty, so all coins are secured by the full strength of the Bitcoin network. What is decentralized due diligence? One of our goals is to fully decentralize the process of launching your coin, including the very important part of promoting awesome coins and filtering out scam coins. Decentralized due diligence allows multiple groups to compete in the filitering process, with the market ultimately deciding which becomes the trusted option. What about sidechains? We like sidechains. If working sidechains emerge we will extend our platform to support asset issuance on a sidechain. Is Swarm a company? As of right now, there is no legal entity that represents the Swarm. This will certainly come at a later stage. Our goal is to postpone dealing with any of these issues until there is need. How do I get my own coin? In stage two of our fundraiser we will make public a form something like the following: https://docs.google.com/document/d/1IEUIcXK2bNYQqIG3wUrtox4cDO1xCWsbHIVo4ZxbNYA/edit
Continuing, Wilson also spoke about the advantage of Bitcoin and other cryptocurrencies over conventional financial instruments like stocks and bonds. The suggestions Wilson offered is also something he practices. Wilson has made a significant investment in the likes of Coinbase and other crypto-startups through Union Square Ventures. He also personally holds cryptocurrencies like Bitcoin ... A prominent bitcoin exchange is in major trouble, prices are fluctuating rapidly and the virtual currency's reputation has taken a major hit. In other words, this is the perfect buying opportunity ... Fred Wilson: Why are Banks Backing Blockchain Tech Over Bitcoin? Reading Time: 2 minutes by Evander Smart on June 9, 2016 Business , Commentary , News , Tech Bitcoin’s blockchain technology has taken the investment and financial world by storm over the past eighteen months or so. Fred Wilson, the co-founder of Union Square Ventures, holds that 2019 will see the cryptocurrency market bottom out and 'slowly' enter a new bull run. Fred Wilson, the co-founder of Union Square Ventures, holds that 2019 will see the cryptocurrency market bottom out and 'slowly' enter a new bull run. Venture Capitalist Fred Wilson is a self-proclaimed bitcoin believer, but when speaking at New York University recently he highlighted some of the negative aspects of the digital currency, which ...
bitcoin,altcoin,ethereum,mine bitcoin,mine ethereum,easy mining,easy bitcoin mining,amd mining,nvidia mining,nicehash,dag,claymore,claymore dual ethereum,asus,asus ... Fred Wilson on his continued belief in Bitcoin and the blockchain - Duration: 9:32. Coin Center Recommended for you. 9:32 . Robert Kiyosaki 2019 - The Speech That Broke The Internet!!! KEEP THEM ... This video is unavailable. Watch Queue Queue. Watch Queue Queue The Vista Network mini mining machine HOAX! Yes.. It's not often that I trash other people's businesses, but I'll call out a liar when I see one... In this video I critically analyze the Mini ... www.myricalgroup.com. This video is unavailable. Watch Queue Queue