Lead developer quits bitcoin saying it 'has failed'

Eth 2.0 vs Polkadot and other musings by a fundamental investor

Spent about two hours on this post and I decided it would help the community if I made it more visible. Comment was made as a response to this
I’m trying to avoid falling into a maximalist mindset over time. This isn’t a 100% ETH question, but I’m trying to stay educated about emerging tech.
Can someone help me see the downsides of diversifying into DOTs?
I know Polkadot is more centralized, VC backed, and generally against our ethos here. On chain governance might introduce some unknown risks. What else am I missing?
I see a bunch of posts about how Ethereum and Polkadot can thrive together, but are they not both L1 competitors?
Response:
What else am I missing?
The upsides.
Most of the guys responding to you here are full Eth maxis who drank the Parity is bad koolaid. They are married to their investment and basically emotional / tribal in an area where you should have a cool head. Sure, you might get more upvotes on Reddit if you do and say what the crowd wants, but do you want upvotes and fleeting validation or do you want returns on your investment? Do you want to be these guys or do you want to be the shareholder making bank off of those guys?
Disclaimer: I'm both an Eth whale and a Dot whale, and have been in crypto for close to a decade now. I originally bought ether sub $10 after researching it for at least a thousand hours. Rode to $1500 and down to $60. Iron hands - my intent has always been to reconsider my Eth position after proof of stake is out. I invested in the 2017 Dot public sale with the plan of flipping profits back to Eth but keeping Dots looks like the right short and long term play now. I am not a trader, I just take a deep tech dive every couple of years and invest in fundamentals.
Now as for your concerns:
I know Polkadot is more centralized
The sad truth is that the market doesn't really care about this. At all. There is no real statistic to show at what point a coin is "decentralized" or "too centralized". For example, bitcoin has been completely taken over by Chinese mining farms for about five years now. Last I checked, they control above 85% of the hashing power, they just spread it among different mining pools to make it look decentralized. They have had the ability to fake or block transactions for all this time but it has never been in their best interest to do so: messing with bitcoin in that way would crash its price, therefore their bitcoin holdings, their mining equipment, and their company stock (some of them worth billions) would evaporate. So they won't do it due to economics, but not because they can't.
That is the major point I want to get across; originally Bitcoin couldn't be messed with because it was decentralized, but now Bitcoin is centralized but it's still not messed with due to economics. It is basically ChinaCoin at this point, but the market doesn't care, and it still enjoys over 50% of the total crypto market cap.
So how does this relate to Polkadot? Well fortunately most chains - Ethereum included - are working towards proof of stake. This is obviously better for the environment, but it also has a massive benefit for token holders. If a hostile party wanted to take over a proof of stake chain they'd have to buy up a massive share of the network. The moment they force through a malicious transaction a proof of stake blockchain has the option to fork them off. It would be messy for a few days, but by the end of the week the hostile party would have a large amount of now worthless tokens, and the proof of stake community would have moved on to a version of the blockchain where the hostile party's tokens have been slashed to zero. So not only does the market not care about centralization (Bitcoin example), but proof of stake makes token holders even safer.
That being said, Polkadot's "centralization" is not that far off to Ethereum. The Web3 foundation kept 30% of the Dots while the Ethereum Foundation kept 17%. There are whales in Polkadot but Ethereum has them too - 40% of all genesis Ether went to 100 wallets, and many suspect that the original Ethereum ICO was sybiled to make it look more popular and decentralized than it really was. But you don't really care about that do you? Neither do I. Whales are a fact of life.
VC backed
VCs are part of the crypto game now. There is no way to get rid of them, and there is no real reason why you should want to get rid of them. They put their capital at risk (same as you and me) and seek returns on their investment (same as you and me). They are both in Polkadot and Ethereum, and have been for years now. I have no issue with them as long as they don't play around with insider information, but that is another topic. To be honest, I would be worried if VCs did not endorse chains I'm researching, but maybe that's because my investing style isn't chasing hype and buying SUSHI style tokens from anonymous (at the time) developers. That's just playing hot potato. But hey, some people are good at that.
As to the amount of wallets that participated in the Polkadot ICO: a little known fact is that more individual wallets participated in Polkadot's ICO than Ethereum's, even though Polkadot never marketed their ICO rounds due to regulatory reasons.
generally against our ethos here
Kool aid.
Some guy that works(ed?) at Parity (who employs what, 200+ people?) correctly said that Ethereum is losing its tech lead and that offended the Ethereum hivemind. Oh no. So controversial. I'm so personally hurt by that.
Some guy that has been working for free on Ethereum basically forever correctly said that Polkadot is taking the blockchain tech crown. Do we A) Reflect on why he said that? or B) Rally the mob to chase him off?
"I did not quit social media, I quit Ethereum. I did not go dark, I just left the community. I am no longer coordinating hard forks, building testnets, or contributing otherwise. I did not work on Polkadot, I never did, I worked on Ethereum. I did not hate Ethereum, I loved it."
Also Parity locked their funds (and about 500+ other wallets not owned by them) and proposed a solution to recover them. When the community voted no they backed off and did not fork the chain, even if they had the influence to do so. For some reason this subreddit hates them for that, even if Parity did the 100% moral thing to do. Remember, 500+ other teams or people had their funds locked, so Parity was morally bound to try its best to recover them.
Its just lame drama to be honest. Nothing to do with ethos, everything to do with emotional tribalism.
Now for the missing upsides (I'll also respond to random fragments scattered in the thread):
This isn’t a 100% ETH question, but I’m trying to stay educated about emerging tech.
A good quick intro to Eth's tech vs Polkadot's tech can be found on this thread, especially this reply. That thread is basically mandatory reading if you care about your investment.
Eth 2.0's features will not really kick in for end users until about 2023. That means every dapp (except DeFI, where the fees make sense due to returns and is leading the fee market) who built on Eth's layer 1 are dead for three years. Remember the trading card games... Gods Unchained? How many players do you think are going to buy and sell cards when the transaction fee is worth more than the cards? All that development is now practically worthless until it can migrate to its own shard. This story repeats for hundreds of other dapp teams who's projects are now priced out for three years. So now they either have to migrate to a one of the many unpopulated L2 options (which have their own list of problems and risks, but that's another topic) or they look for another platform, preferably one interoperable with Ethereum. Hence Polkadot's massive growth in developer activity. If you check out https://polkaproject.com/ you'll see 205 projects listed at the time of this post. About a week ago they had 202 listed. That means about one team migrated from another tech stack to build on Polkadot every two days, and trust me, many more will come in when parachains are finally activated, and it will be a complete no brainer when Polkadot 2.0 is released.
Another huge upside for Polkadot is the Initial Parachain Offerings. Polkadot's version of ICOs. The biggest difference is that you can vote for parachains using your Dots to bind them to the relay chain, and you get some of the parachain's tokens in exchange. After a certain amount of time you get your Dots back. The tokenomics here are impressive: Dots are locked (reduced supply) instead of sold (sell pressure) and you still earn your staking rewards. There's no risk of scammers running away with your Ether and the governance mechanism allows for the community to defund incompetent devs who did not deliver what was promised.
Wouldn’t an ETH shard on Polkadot gain a bunch of scaling benefits that we won’t see natively for a couple years?
Yes. That is correct. Both Edgeware and Moonbeam are EVM compatible. And if the original dapp teams don't migrate their projects someone else will fork them, exactly like SUSHI did to Uniswap, and how Acala is doing to MakerDao.
Although realistically Ethereum has a 5 yr headstart and devs haven't slowed down at all
Ethereum had a five year head start but it turns out that Polkadot has a three year tech lead.
Just because it's "EVM Compatible" doesn't mean you can just plug Ethereum into Polkadot or vica versa, it just means they both understand Ethereum bytecode and you can potentially copy/paste contracts from Ethereum to Polkadot, but you'd still need to add a "bridge" between the 2 chains, so it adds additional complexity and extra steps compared to using any of the existing L2 scaling solutions
That only applies of you are thinking from an Eth maximalist perspective. But if you think from Polkadot's side, why would you need to use the bridge back to Ethereum at all? Everything will be seamless, cheaper, and quicker once the ecosystem starts to flourish.
I see a bunch of posts about how Ethereum and Polkadot can thrive together, but are they not both L1 competitors?
They are competitors. Both have their strategies, and both have their strengths (tech vs time on the market) but they are clearly competing in my eyes. Which is a good thing, Apple and Samsung competing in the cell phone market just leads to more innovation for consumers. You can still invest in both if you like.
Edit - link to post and the rest of the conversation: https://www.reddit.com/ethfinance/comments/iooew6/daily_general_discussion_september_8_2020/g4h5yyq/
Edit 2 - one day later PolkaProject count is 210. Devs are getting the hint :)
submitted by redditsucks_goruqqus to polkadot_market [link] [comments]

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

Crypto Banking Wars: Will Coinbase or Binance Become The Bank of The Future?

Crypto Banking Wars: Will Coinbase or Binance Become The Bank of The Future?
Can the early success of major crypto exchanges propel them to winning the broader consumer finance market?
https://reddit.com/link/i48t4q/video/v4eo10gom7f51/player
This is the first part of Crypto Banking Wars — a new series that examines what crypto-native company is most likely to become the bank of the future. Who is best positioned to reach mainstream adoption in consumer finance?
While crypto allows the world to get rid of banks, a bank will still very much be necessary for this powerful technology to reach the masses. We believe a crypto-native company, like Genesis Block, will become the bank of the future.
In an earlier series, Crypto-Powered, we laid out arguments for why crypto-native companies have a huge edge in the market. When you consider both the broad spectrum of financial use-cases and the enormous value unlocked through these DeFi protocols, you can see just how big of an unfair advantage blockchain tech becomes for companies who truly understand and leverage it. Traditional banks and fintech unicorns simply won’t be able to keep up.
The power players of consumer finance in the 21st century will be crypto-native companies who build with blockchain technology at their core.
The crypto landscape is still nascent. We’re still very much in the fragmented, unbundled phase of the industry lifecycle. Beyond what Genesis Block is doing, there are signs of other companies slowly starting to bundle financial services into what could be an all-in-one bank replacement.
So the key question that this series hopes to answer:
Which crypto-native company will successfully become the bank of the future?
We obviously think Genesis Block is well-positioned to win. But we certainly aren’t the only game in town. In this series, we’ll be doing an analysis of who is most capable of thwarting our efforts. We’ll look at categories like crypto exchanges, crypto wallets, centralized lending & borrowing services, and crypto debit card companies. Each category will have its own dedicated post.
Today we’re analyzing big crypto exchanges. The two companies we’ll focus on today are Coinbase (biggest American exchange) and Binance (biggest global exchange). They are the top two exchanges in terms of Bitcoin trading volume. They are in pole position to winning this market — they have a huge existing userbase and strong financial resources.
Will Coinbase or Binance become the bank of the future? Can their early success propel them to winning the broader consumer finance market? Is their growth too far ahead for anyone else to catch up? Let’s dive in.
https://preview.redd.it/lau4hevpm7f51.png?width=800&format=png&auto=webp&s=2c5de1ba497199f36aa194e5809bd86e5ab533d8

Binance

The most formidable exchange on the global stage is Binance (Crunchbase). All signs suggest they have significantly more users and a stronger balance sheet than Coinbase. No other exchange is executing as aggressively and relentlessly as Binance is. The cadence at which they are shipping and launching new products is nothing short of impressive. As Tushar Jain from Multicoin argues, Binance is Blitzscaling.
Here are some of the products that they’ve launched in the last 18 months. Only a few are announced but still pre-launch.
Binance is well-positioned to become the crypto-powered, all-in-one, bundled solution for financial services. They already have so many of the pieces. But the key question is:
Can they create a cohesive & united product experience?

Binance Weaknesses

Binance is strong, but they do have a few major weaknesses that could slow them down.
  1. Traders & Speculators Binance is currently very geared for speculators, traders, and financial professionals. Their bread-and-butter is trading (spot, margin, options, futures). Their UI is littered with depth charts, order books, candlesticks, and other financial concepts that are beyond the reach of most normal consumers. Their product today is not at all tailored for the broader consumer market. Given Binance’s popularity and strength among the pro audience, it’s unlikely that they will dumb down or simplify their product any time soon. That would jeopardize their core business. Binance will likely need an entirely new product/brand to go beyond the pro user crowd. That will take time (or an acquisition). So the question remains, is Binance even interested in the broader consumer market? Or will they continue to focus on their core product, the one-stop-shop for pro crypto traders?
  2. Controversies & Hot Water Binance has had a number of controversies. No one seems to know where they are based — so what regulatory agencies can hold them accountable? Last year, some sensitive, private user data got leaked. When they announced their debit card program, they had to remove mentions of Visa quickly after. And though the “police raid” story proved to be untrue, there are still a lot of questions about what happened with their Shanghai office shut down (where there is smoke, there is fire). If any company has had a “move fast and break things” attitude, it is Binance. That attitude has served them well so far but as they try to do business in more regulated countries like America, this will make their road much more difficult — especially in the consumer market where trust takes a long time to earn, but can be destroyed in an instant. This is perhaps why the Binance US product is an empty shell when compared to their main global product.
  3. Disjointed Product Experience Because Binance has so many different teams launching so many different services, their core product is increasingly feeling disjointed and disconnected. Many of the new features are sloppily integrated with each other. There’s no cohesive product experience. This is one of the downsides of executing and shipping at their relentless pace. For example, users don’t have a single wallet that shows their balances. Depending on if the user wants to do spot trading, margin, futures, or savings… the user needs to constantly be transferring their assets from one wallet to another. It’s not a unified, frictionless, simple user experience. This is one major downside of the “move fast and break things” approach.
  4. BNB token Binance raised $15M in a 2017 ICO by selling their $BNB token. The current market cap of $BNB is worth more than $2.6B. Financially this token has served them well. However, given how BNB works (for example, their token burn), there are a lot of open questions as to how BNB will be treated with US security laws. Their Binance US product so far is treading very lightly with its use of BNB. Their token could become a liability for Binance as it enters more regulated markets. Whether the crypto community likes it or not, until regulators get caught up and understand the power of decentralized technology, tokens will still be a regulatory burden — especially for anything that touches consumers.
  5. Binance Chain & Smart Contract Platform Binance is launching its own smart contract platform soon. Based on compatibility choices, they have their sights aimed at the Ethereum developer community. It’s unclear how easy it’ll be to convince developers to move to Binance chain. Most of the current developer energy and momentum around smart contracts is with Ethereum. Because Binance now has their own horse in the race, it’s unlikely they will ever decide to leverage Ethereum’s DeFi protocols. This could likely be a major strategic mistake — and hubris that goes a step too far. Binance will be pushing and promoting protocols on their own platform. The major risk of being all-in on their own platform is that they miss having a seat on the Ethereum rocket ship — specifically the growth of DeFi use-cases and the enormous value that can be unlocked. Integrating with Ethereum’s protocols would be either admitting defeat of their own platform or competing directly against themselves.

Binance Wrap Up

I don’t believe Binance is likely to succeed with a homegrown product aimed at the consumer finance market. Their current product — which is focused heavily on professional traders and speculators — is unlikely to become the bank of the future. If they wanted to enter the broader consumer market, I believe it’s much more likely that they will acquire a company that is getting early traction. They are not afraid to make acquisitions (Trust, JEX, WazirX, DappReview, BxB, CoinMarketCap, Swipe).
However, never count CZ out. He is a hustler. Binance is executing so aggressively and relentlessly that they will always be on the shortlist of major contenders.
https://preview.redd.it/mxmlg1zqm7f51.png?width=800&format=png&auto=webp&s=2d900dd5ff7f3b00df5fe5a48305d57ebeffaa9a

Coinbase

The crypto-native company that I believe is more likely to become the bank of the future is Coinbase (crunchbase). Their dominance in America could serve as a springboard to winning the West (Binance has a stronger foothold in Asia). Coinbase has more than 30M users. Their exchange business is a money-printing machine. They have a solid reputation as it relates to compliance and working with regulators. Their CEO is a longtime member of the crypto community. They are rumored to be going public soon.

Coinbase Strengths

Let’s look at what makes them strong and a likely contender for winning the broader consumer finance market.
  1. Different Audience, Different Experience Coinbase has been smart to create a unique product experience for each audience — the pro speculator crowd and the common retail user. Their simple consumer version is at Coinbase.com. That’s the default. Their product for the more sophisticated traders and speculators is at Coinbase Pro (formerly GDAX). Unlike Binance, Coinbase can slowly build out the bank of the future for the broad consumer market while still having a home for their hardcore crypto traders. They aren’t afraid to have different experiences for different audiences.
  2. Brand & Design Coinbase has a strong product design team. Their brand is capable of going beyond the male-dominated crypto audience. Their product is clean and simple — much more consumer-friendly than Binance. It’s clear they spend a lot of time thinking about their user experience. Interacting directly with crypto can sometimes be rough and raw (especially for n00bs). When I was at Mainframe we hosted a panel about Crypto UX challenges at the DevCon4 Dapp Awards. Connie Yang (Head of Design at Coinbase) was on the panel. She was impressive. Some of their design philosophies will bode well as they push to reach the broader consumer finance market.
  3. USDC Stablecoin Coinbase (along with Circle) launched USDC. We’ve shared some stats about its impressive growth when we discussed DeFi use-cases. USDC is quickly becoming integrated with most DeFi protocols. As a result, Coinbase is getting a front-row seat at some of the most exciting things happening in decentralized finance. As Coinbase builds its knowledge and networks around these protocols, it could put them in a favorable position to unlock incredible value for their users.
  4. Early Signs of Bundling Though Coinbase has nowhere near as many products & services as Binance, they are slowly starting to add more financial services that may appeal to the broader market. They are now letting depositors earn interest on USDC (also DAI & Tezos). In the UK they are piloting a debit card. Users can now invest in crypto with dollar-cost-averaging. It’s not much, but it’s a start. You can start to see hints of a more bundled solution around financial services.

Coinbase Weaknesses

Let’s now look at some things that could hold them back.
  1. Slow Cadence In the fast-paced world of crypto, and especially when compared to Binance, Coinbase does not ship very many new products very often. This is perhaps their greatest weakness. Smaller, more nimble startups may run circles around them. They were smart to launch Coinbase Ventures where tey invest in early-stage startups. They can now keep an ear to the ground on innovation. Perhaps their cadence is normal for a company of their size — but the Binance pace creates quite the contrast.
  2. Lack of Innovation When you consider the previous point (slow cadence), it’s unclear if Coinbase is capable of building and launching new products that are built internally. Most of their new products have come through acquisitions. Their Earn.com acquisition is what led to their Earn educational product. Their acquisition of Xapo helped bolster their institutional custody offering. They acqui-hired a team to help launch their staking infrastructure. Their acquisition of Cipher Browser became an important part of Coinbase Wallet. And recently, they acquired Tagomi — a crypto prime brokerage. Perhaps most of Coinbase’s team is just focused on improving their golden goose, their exchange business. It’s unclear. But the jury is still out on if they can successfully innovate internally and launch any homegrown products.
  3. Talent Exodus There have been numerous reports of executive turmoil at Coinbase. It raises a lot of questions about company culture and vision. Some of the executives who departed include COO Asiff Hirji, CTO Balaji Srinivasan, VP & GM Adam White, VP Eng Tim Wagner, VP Product Jeremy Henrickson, Sr Dir of Eng Namrata Ganatra, VP of Intl Biz Dan Romero, Dir of Inst Sales Christine Sandler, Head of Trading Hunter Merghart, Dir Data Science Soups Ranjan, Policy Lead Mike Lempres, Sr Compliance Vaishali Mehta. Many of these folks didn’t stay with Coinbase very long. We don’t know exactly why it’s happening —but when you consider a few of my first points (slow cadence, lack of innovation), you have to wonder if it’s all related.
  4. Institutional Focus As a company, we are a Coinbase client. We love their institutional offering. It’s clear they’ve been investing a lot in this area. A recent Coinbase blog post made it clear that this has been a focus: “Over the past 12 months, Coinbase has been laser-focused on building out the types of features and services that our institutional customers need.” Their Tagomi acquisition only re-enforced this focus. Perhaps this is why their consumer product has felt so neglected. They’ve been heavily investing in their institutional services since May 2018. For a company that’s getting very close to an IPO, it makes sense that they’d focus on areas that present strong revenue opportunities — as they do with institutional clients. Even for big companies like Coinbase, it’s hard to have a split focus. If they are “laser-focused” on the institutional audience, it’s unlikely they’ll be launching any major consumer products anytime soon.

Coinbase Wrap Up

At Genesis Block, we‘re proud to be working with Coinbase. They are a fantastic company. However, I don’t believe that they’ll succeed in building their own product for the broader consumer finance market. While they have incredible design, there are no signs that they are focused on or capable of internally building this type of product.
Similar to Binance, I think it’s far more likely that Coinbase acquires a promising young startup with strong growth.

Honorable Mentions

Other US-based exchanges worth mentioning are Kraken, Gemini, and Bittrex. So far we’ve seen very few signs that any of them will aggressively attack broader consumer finance. Most are going in the way of Binance — listing more assets and adding more pro tools like margin and futures trading. And many, like Coinbase, are trying to attract more institutional customers. For example, Gemini with their custody product.

Wrap Up

Coinbase and Binance have huge war chests and massive reach. For that alone, they should always be considered threats to Genesis Block. However, their products are very, very different than the product we’re building. And their approach is very different as well. They are trying to educate and onboard people into crypto. At Genesis Block, we believe the masses shouldn’t need to know or care about it. We did an entire series about this, Spreading Crypto.
Most everyone needs banking — whether it be to borrow, spend, invest, earn interest, etc. Not everyone needs a crypto exchange. For non-crypto consumers (the mass market), the differences between a bank and a crypto exchange are immense. Companies like Binance and Coinbase make a lot of money on their crypto exchange business. It would be really difficult, gutsy, and risky for any of them to completely change their narrative, messaging, and product to focus on the broader consumer market. I don’t believe they would ever risk biting the hand that feeds them.
In summary, as it relates to a digital bank aimed at the mass market, I believe both Coinbase and Binance are much more likely to acquire a startup in this space than they are to build it themselves. And I think they would want to keep the brand/product distinct and separate from their core crypto exchange business.
So back to the original question, is Coinbase and Binance a threat to Genesis Block? Not really. Not today. But they could be, and for that, we want to stay close to them.
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How does cryptocurrency works?

How does cryptocurrency works?
When we were a much smaller society, people could trade in the community pretty easily, but as the distance in our trade grew, we ended up inventing institutions such as banks, markets, stocks etc. that help us to conduct financial transactions. The currencies we are operating with nowadays are bills or coins, controlled by a centralized authority and tracked by previously mentioned financial institutions. The thing is, having a third party in our money transactions is not always what we wish for. But fortunately, today we have a tool that allows us to make fast and save financial transactions without any middlemen, it has no central authority and it is regulated by math. Sounds cool, right? Cryptocurrency is this tool. It is quite a peculiar system, so let’s take a closer look at it.
by StealthEX

Layers of a crypto-cake

Layer 1: Blockchain

First of all – any cryptocurrency is based on the blockchain. In simple words, blockchain is a kind of a database. It stores information in batches, called blocks that are linked together in a chronological way. As the blockchain is not located in one place but rather on thousands of computers around the globe, the blockchain and the transactions thus are decentralized, they have no head center. The newest blocks of transaction are continuously added on (or changed) to all the previous blocks. That’s how you get a cryptocurrency blockchain.
The technology’s name is a compound of the words “block” and “chain”, as the “blocks” of information are linked together in a “chain”. That’s how crypto security works – the information in the recently created block depends on the previous one. It means that no block can be changed without affecting the others, this system prevents a blockchain from being hacked.
There are 2 kinds of blockchain: private and public. Public, as goes by its name, is publicly available blockchain, whereas private blockchain is permissioned, which only a limited number of people have access to.

Layer 2: Transaction

In fact, everything begins with the intention of someone to complete a transaction. A transaction itself is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the amount of coins transferred. The sender begins by logging in into his cryptocurrency wallet with the private key – a unique combination of letters and numbers, something you would call a personal password in a bank. Now the transaction is signed and the first step which is called basic public key cryptography is completed.
Then the signed (encrypted) transaction is shared with everyone in the cryptocurrency network, meaning it gets to every other peer. We should mention that the transaction is firstly queued up to be added to the public ledger. Then, when it’s broadcasted to the public ledger, all the computers add a new transaction to a shared list of recent transactions, known as blocks.
Having a ledger forces everyone to “play fair” and reduce the risk of spending extra. The numbers of transactions are publicly available, but the information about senders and receivers is encrypted. Each transaction holds on to a unique set of keys. Whoever owns a set of keys, owns the amount of cryptocurrency associated with those keys (just like whoever owns a bank account owns the money in it). This is how peer-to-peer technology works.

Layer 3: Mining

Now let’s talk about mining. Once confirmed, the transaction is forever captured into the blockchain history**.** The verification of the block is done by Cryptocurrency Miners – they verify and then add blocks to the public ledger. To verify them, miners go down on the road of solving a very difficult math puzzle using powerful software, which is that the computer needs to produce the correct sequence number – “hash” – that is specific to the given block, there is not much chance of finding it. Whoever solves the puzzle first, gets the opportunity to officially add a block of transactions to the ledger and get fresh and new coins as reward. The reward is given in whatever cryptocurrency’s blockchain miners are operating into. For example, BTC originally used to reward miners in 50 BTC, but after the first halving it decreased to 25 BTC, and at present time it is 6.25 BTC. The process of miners competing against each other in order to complete the transactions on the network and get rewarded is known as the Proof-of-Work (PoW) algorithm, which is natural for BTC and many other cryptocurrencies. Also there are another consensus mechanisms: Proof-of-Stake (PoS), Delegated Proof-of-Stake (dPoS), Proof-of-Authority (PoA), Byzantine Fault Tolerance (BFT), Practical Byzantine Fault Tolerance (pBFT), Federated Byzantine Agreement (FBA) and Delegated Byzantine Fault Tolerance (dBFT). Still, all of them are used to facilitate an agreement between network participants.
The way that system works – when many computers try to verify a block – guarantees that no computer is going to monopolize a cryptocurrency market. To ensure the competition stays fair, the puzzle becomes harder as more computers join in. Summing it up, let’s say that mining is responsible for two aspects of the crypto mechanism: producing the proof and allowing more coins to enter circulation.

Types of cryptocurrency

In the virtual currency world there are a bunch of different cryptocurrency types with their own distinctive features.
The first cryptocurrency is, of course, Bitcoin. Bitcoin is the first crypto coin ever created and used. BTC is the most liquid cryptocurrency in the market and has the highest market cap among all the cryptocurrencies.

Altcoins

The term ‘altcoins’ means ‘alternatives’ of Bitcoin. The first altcoin Namecoin was created in 2011 and later on hundreds of them appeared in crypto-world, among them are Ravencoin, Dogecoin, Litecoin, Syscoin etc. Altcoins were initially launched with a purpose to overcome Bitcoin’s weak points and become upgraded substitutes of Bitcoin. Altcoins usually stand an independent blockchain and have their own miners and wallets. Some altcoins actually have boosted features yet none of them gained popularity akin to Bitcoin. More about altcoins in our article.

Tokens

Token is a unit of account that is used to represent the digital balance of an asset. Basically tokens represent an asset or utility that usually are made on another blockchain. Tokens are registered in a database based on blockchain technology, and they are accessed through special applications using electronic signature schemes.
Tokens and cryptocurrencies are not the same thing. Let’s explain it more detailed:
• First of all, unlike cryptocurrencies, tokens can be issued and managed both centralized and decentralized.
• The verification of the token transactions can be conducted both centralized and decentralized, when cryptocurrencies’ verification is only decentralized.
• Tokens do not necessarily run their own blockchain, but for cryptocurrencies having their own blockchain is compulsory.
• Tokens’ prices can be affected by a vast range of factors such as demand and supply, tokens’ additional emission, or binding to other assets. On the other hand, the price of cryptocurrencies is completely regulated by the market.
Tokens can be:
• Utility tokens – something that accesses a user to a product or service and support dApps built on the blockchain.
• Governance tokens – fuel for voting systems executed on the blockchain.
• Transactional tokens – serve as a unit of accounts and used for trading.
• Security tokens – represent legal ownership of an asset, can be used in addition to or in place of a password.
Tokens are usually created through smart contracts and are often adapted to an ICO – initial coin offering, which is a means of crowdfunding. It is much easier to create tokens, that is why they make a majority of coins in existence. Altcoin and token blockchains work on the concept of smart contracts or decentralized applications, where the programmable, self-executing code is ruling the transactions within a blockchain. By the way, the vast majority of tokens were distributed on the Ethereum platform.

Forks

Generally a fork occurs when a protocol code, on which the blockchain is operating, is being changed, modified and updated by developers or users. Due to the changes, the blockchain splits into 2 paths: an old way of doing things and a new way. These changes may happen because: a disagreement between users and creators; a major hack, as it was with Ethereum; developers’ decision to fix errors and add new functionality. The blockchain mainly splits into hard forks and soft forks. Shortly speaking, coin hard forks cannot work with older versions while soft forks still can work with older versions.
Hard fork – after a hard fork, a new version is completely separated from the previous one, there’s no connection between them anymore, although the new version keeps the data of all the previous transactions but now on, each version will have its own transaction history. In order to use the new versions, every node has to upgrade their software. A hard fork requires majority support (or consensus) from coin holders with a connection to the coin network. If enough users don’t update then you will be unable to get a clean upgrade which could lead to a break in the blockchain.
Soft fork – a protocol change, but with backward compatibility. The rules of the network have been changed, but nodes running the old software will still be able to validate transactions, but those updated nodes won’t be able to mine new blocks. So to be used and useful, soft forks require the majority of the network’s hash power. Otherwise, they risk becoming set out and anyway ending up as a hard fork.

Stablecoins

As it comes from the name, stablecoins are price-stabilized that are becoming big in the crypto world. Still enjoying most of the “typical-cryptocurrency” benefits, it is standing out as a fixed and stable coin, not volatile at all. Stablecoins’ values are stabilized by pegging them to other assets such as the US Dollar or gold.
Stablecoins include Tether (USDT), Standard (PAX), Gemini Dollar (GUSD) which are backed by the US Dollar and approved by the New York State Department of Financial Services.

Conclusion

Now that we hacked into cryptocurrency, you probably understand that it is much less mysterious than it first seemed. Nowadays, cryptocurrencies are making the revolution of the financial institution. For example, Bitcoin is currently used in 96 countries and growing, with more than 12,000 transactions per hour. More and more investors are involved, banks and governments realize that these cutting edge technologies are prone to draw their control away. Cryptocurrencies are slowly changing the world and you can choose – either stand beside and observe or become part of history in the making.
And remember if you need to exchange your coins StealthEX is here for you. We provide a selection of more than 300 coins and constantly updating the cryptocurrency list so that our customers will find a suitable option. Our service does not require registration and allows you to remain anonymous. Why don’t you check it out? Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example BTC to ETH.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
Follow us on Medium, Twitter, Facebook, and Reddit to get StealthEX.io updates and the latest news about the crypto world. For all requests message us via [[email protected]](mailto:[email protected]).
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/09/29/how-does-cryptocurrency-works/
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My Very Provisional List of COVID Anomalies, Red/ False Flags and Clear Indications of Scumbaggery. LIHOP, MIHOP Or HOAX/SCAM? Def Not As Described. Need Your Help To Source References and Links For Existing Categories And Add New Ones. This is WOEFULLY INCOMPLETE. I Know I've Missed Tonnes...Ideas?

My Very Provisional List of COVID Anomalies, Red/ False Flags and Clear Indications of Scumbaggery. LIHOP, MIHOP Or HOAX/SCAM? Def Not As Described. Need Your Help To Source References and Links For Existing Categories And Add New Ones. This is WOEFULLY INCOMPLETE. I Know I've Missed Tonnes...Ideas?
Here’s my Top 22 list of suspicious shenanigans and red flags surrounding the COVID narrative:

  1. The Imperial College Death data - Neil Ferguson and Gates-funded Imperial College, London Model that ‘persuaded’ Johnson and Trump to lockdown. 500K deaths in UK and 2.2m deaths projected in US, EVEN WITH LOCKDOWN. Less than 10% accuracy but 110% alarmist, and evidence that the coding was deliberately flawed and designed to inflate numbers. Gates funding everyone involved in the staged 'debacle'.
https://www.dailymail.co.uk/news/article-8164121/Professor-predicted-500-000-Britons-die-coronavirus-accused-having-patchy-record.html
https://www.telegraph.co.uk/technology/2020/05/16/coding-led-lockdown-totally-unreliable-buggy-mess-say-experts/
https://www.ukcolumn.org/article/who-controls-british-government-response-covid19-part-one
https://www.corbettreport.com/gates/
Ferguson, with a terrifyingly consistent track record for hyping minor viruses that fail to transpire into pandemics (Swine Flu, Bird Flu, BSE etc), failing upwards as a ‘safe pair of hands‘.
https://statmodeling.stat.columbia.edu/2020/05/08/so-the-real-scandal-is-why-did-anyone-ever-listen-to-this-guy/
https://www.thesun.co.uk/news/11565369/useless-professor-neil-ferguson-antonia-staats/
EDIT: I‘ve reposted, but thought I’d put back the 95% that disappeared some minutes ago....
2) Ferguson’s blasé attitude to his affair during lockdown - clearly not too worried for his lovers’ family, if he genuinely believed COVID was a threat. No "error of judgement", just a man who knew there was nothing to fear.
https://www.theguardian.com/world/2020/may/06/ministers-hypocrisy-over-neil-ferguson-lockdown-affair
3) Hospitals cleared of patients in readiness for a pandemic that never came. Desperate for cash, doctors and nurses were financially incentivised to put down patients dying with/ of COVID on death certificates to gain payments. In US $13,000 per patient, and $39,000 per patient on ventilator etc.
https://www.tweaktown.com/news/72070/this-is-how-much-hospitals-are-making-if-patients-have-coronavirus/index.html
Footage of empty hospitals worldwide: https://www.youtube.com/watch?v=wrJ9yaUOVKs
Nurses furloughed, sent home for suspected virus without testing. Nurses - with nothing better to do - on TikTok etc:
Nurses slammed for filming TikTok showing them carrying coronavirus 'body-bag':
https://www.mirror.co.uk/news/world-news/nurses-slammed-filming-tiktok-showing-21960411
https://www.youtube.com/watch?v=EMHU6MtPVqQ etc
4) Games played with age and numbers, proof that only the elderly and very sick elderly were dying, but less of pneumonia and flu than in previous years. Median age of 79 in US and 82 in UK. Meanwhile whole country on lockdown.
"The median age of the deceased in most countries (including Italy) is over 80 years (e.g. 86 years in Sweden) and only about 4% of the deceased had no serious preconditions. The age and risk profile of deaths thus essentially corresponds to normal mortality."
https://swprs.org/a-swiss-doctor-on-covid-19/
https://medium.com/wintoncentre/what-have-been-the-fatal-risks-of-covid-particularly-to-children-and-younger-adults-a5cbf7060c49
(table from 2/7 down the page...)
5) When this became apparent, initial scare stories in press about children dying of virus, later proven to have no merit, just to ensure the hysteria was generalised. Meanwhile, probability of a child dying from the 'virus' is 35m to 1.

https://preview.redd.it/exxx18mdn8c51.png?width=2224&format=png&auto=webp&s=d9f00fd75d396a945a4244eab07b37325706eca3
"The second row shows that 2 deaths have been recorded among over 7 million school children aged between 5 and 14 (around 1 in 3.5 million), an extremely low risk — although additional deaths may be reported following coroners’ investigations. Over the last five years, there has been an average of 94 deaths registered over this 9-week period for those aged 5–14, and so the 2 Covid deaths represents only 2% of the normal risk faced by this group. That is, whatever average risk they would have faced in these 9 weeks if Covid had never existed — a risk which was extraordinarily low — was increased by Covid by only 2%."
from: https://medium.com/wintoncentre/what-have-been-the-fatal-risks-of-covid-particularly-to-children-and-younger-adults-a5cbf7060c49
https://www.telegraph.co.uk/news/2020/06/08/kawasaki-like-disease-affecting-children-caused-coronavirus/
https://www.dailymail.co.uk/news/article-8264135/UK-says-children-died-syndrome-linked-COVID-19.html
https://www.dailymail.co.uk/news/article-8316223/Up-100-British-children-mysterious-inflammatory-disease-linked-COVID-19.html
https://www.dailymail.co.uk/news/article-8278963/Ill-youngsters-directly-exposed-corona-victims-refused-tests-medics.html
6) The ludicrous claim that they had never considered economic and psychological DEATH toll of lockdown.
There was a press conference in June on BBC, where they said "saving lives" from the virus was considered more important. Hard to believe, but I can't find the footage yet...
"One of the most consistent themes that emerges from the minutes of SAGE meetings is how the Government repeatedly expected its scientists to account for the economic impact of lockdown restrictions – even though SAGE was not doing any economic modelling."
https://bylinetimes.com/2020/07/03/sagegate-part-one-treasury-and-downing-street-advisors-delayed-covid-19-lockdown/
7) Doctors globally openly being told they can save paperwork and earn money by basing cause of death on ASSUMPTION of COVID, based on the vaguest of pretexts and symptoms.
https://www.inquirer.com/health/coronavirus/coronavirus-covid19-cause-death-certificate-pcom-20200401.html
https://www.rollingstone.com/culture/culture-features/anti-vax-doctor-covid-19-death-certificates-984407/
https://www.youtube.com/watch?v=tlGkCABfyLw
Also, from the UK...Health Secretary Matt Hancock calls for urgent review into coronavirus death data in England.
It follows confirmation from Public Health England that reported deaths may have included people who tested positive months before they died.
https://www.bbc.co.uk/news/health-53443724
8) The propaganda campaign against any form of alternative to vaccine (Vitamin C and D, African cures, HCQ etc)
“The Government’s leading body for Covid19 drug trials – led by the controversial character Professor Peter Horby – Oxford’s Professor of Emerging Infectious Diseases and Global Health and heading the vaccine programme - stands accused of grossly misleading negative trial results for the coronavirus management drug Hydroxychloroqhine. (Conflict of interest, surely?)
The lead story in today’s France Soir – a long-respected and unaligned French daily – presents compelling evidence to suggest that the Whitehall/Cabinet Covid19 “advice” team cannot be trusted….and raises yet more doubts about BBC complicity in a false Coronavirus narrative.”
https://jonsnewplace.wordpress.com/2020/06/22/explosive-more-uk-covid-experts-facing-serious-data-manipulation-charges/
http://www.francesoir.fsociete-sante/remdesivir-une-molecule-dinteret-therapeutique-tres-discutable-sur-le-covid-19-partie ( in French)
The [Lancet’s] claim that hydroxychloroquine increases the risk of death in Covid-19 patients has been used by rivals as a stick to beat the US President, who has himself been taking the drug and hailed it a 'game-changer' in the war on coronavirus**.**
Mounting doubts over the study's reliability culminated yesterday when the authors retracted their study from the Lancet medical journal, whose editorial standards have also been thrown into question.
https://www.dailymail.co.uk/news/article-8391779/Lancet-paper-warned-against-Covid-19-drug-flares-accusations-political-point-scoring.html
“The Deputy Chief Investigator of the Recovery Trial, Prof. Martin Landray, gave an interview to France-Soir. What he revealed was quite remarkable.
Firstly, the mortality rate of the hydroxychloroquine patients was a staggering 25.7%.
The recommended hydroxychloroquine dose for an adult in the UK is no more than 200 — 400 mg per day. In France, 1800 mg per day is considered to be lethal poisoning.”
https://www.ukcolumn.org/article/the-hydroxychloroquine-scandal
https://time.com/5840148/coronavirus-cure-covid-organic-madagasca
https://www.livescience.com/coronavirus-vitamin-c-myth.html
9) The saturation of Gates into the narrative at every level. His hallowed and unquestioned presence in media as expert, the only Moses who can lead us out of this wilderness with his magic potions, release us from our prisons with his benevolence. His financial connections through BMGF to NIH, CDC, WHO, BBC, Guardian, CNN etc and of course every pharmaceutical company in existence....
https://www.corbettreport.com/gates/
Amazing Polly (pretty much every video this year):
https://www.youtube.com/watch?v=gm19xYwJ2nQ
BBC compromised:

“Transforming lives through media”? Gates and the CIA? Can we give up the pretence that neutral Auntie speaks for - or represents - us and our best interests?
Charities and foundations - without transparency, oversight and apparently universally trusted. Call your genocidal plans ‘charity’ and not only will you look like a philanthrApist, but people will even donate to their own demise.
https://www.bbc.co.uk/mediaaction/about/funding
EDIT: For further information, I just found this webpage:
https://unitynewsnetwork.co.uk/revealed-bbc-charity-receives-millions-in-funding-from-gates-foundation/
UK Guardian compromised:
Hear the Guardian is regrettably letting 180 staff go this week. Hopefully BMGF can find them suitable homes...
https://hectordrummond.com/2020/05/22/the-bill-and-melinda-gates-foundations-sponsorship-of-the-guardian/
From the article:
“This story came from a Guardian sub-section called ‘Global Development‘.
But then I came across this 2010 Guardian story about how the Guardian has started up this new ‘Global Development’ site in partnership with… the Bill and Melinda Gates Foundation.
So much information on Gates...almost “paralysed” with possibilities. Ideas?
10) Recent US and UK stories where people clearly dying of other things - cancer, suicide, motorcycle accidents etc are ascribed to COVID. Officially, George Floyd’s death should have been ascribed to COVID, since I believe he tested positive during autopsy. Might have led to a very different world...
https://cbs12.com/news/local/man-who-died-in-motorcycle-crash-counted-as-covid-19-death-in-florida-report
https://www.independent.co.uk/news/world/americas/george-floyd-death-autopsy-coronavirus-protests-a9548386.html
HighImpactFix video about case number “massage” and motorcycle anomalies:
https://www.youtube.com/watch?v=olz03OPeijM&feature=youtu.be
11) Recent US and UK stories of the deceitful practices by which:
i) the case numbers are conflated with all death numbers on certain days
ii) Dying "of" vs "with" COVID
iii) anyone who dies after testing positive is a COVID death
iv) cases being reported and subliminally conflated with deaths by the media, when death numbers fell too low to keep the public sufficiently terrified to accept coming measures
v) case numbers merely made up or inflated by a factor of ten, in Florida’s case last week.
https://www.cebm.net/covid-19/why-no-one-can-ever-recover-from-covid-19-in-england-a-statistical-anomaly/
Too many to include all here, but the recent Florida 'mistake' is here:
https://www.dailywire.com/news/florida-labs-found-significantly-inflating-positive-covid-testing-rate
https://www.youtube.com/watch?v=ta7g8BgKAXE
If this is a genuine event, what possible reason would there be to commit fraud in so many ways to keep it looking genuine, besides the need to control demolish the world economy and vaccine-shill?
12) Event 201. Drill gone live. Nuff said.
https://www.centerforhealthsecurity.org/event201/videos.html
CORBETT REPORT:
https://www.corbettreport.com/mml2020/
Amazing Polly:
https://www.bitchute.com/video/7O5RylrMUV8F/
13) The fact that there have been no surprises at all since the crisis began. Every next step had been telegraphed in the media well in advance. Everything began with the notion that a vaccine would be the only solution and the narrative has remained remarkably consistent to Event201.
14) Even with all of these statistical somersaults, the death numbers this year are not far from what they’ve been in previous years. Pneumonia and flu deaths are suspiciously down.

2020 - 6509 flu deaths in five months (Feb-June)
2020 - 6509 flu deaths in five months (Feb-June)
https://www.statista.com/statistics/1113051/number-reported-deaths-from-covid-pneumonia-and-flu-us/
Compared with:

2019- Flu killed 34,157 - more than twice amount for a similar period of five months this year.
2019 Flu killed 34,157 - more than twice amount for a similar period of five months this year.
https://www.statista.com/statistics/1124915/flu-deaths-number-us/
MUCH, MUCH MORE DATA NEEDED HERE....
15) That in the space of four months, they have managed to capitalise on this crisis and remove so many rights from us permanently. An opportunity for which they’ve been waiting for years, COVID sped up the process and kept us otherwise preoccupied.
Here is my list of achieved or achievable hidden agenda:
In no particular order:
  1. Controlled demolition of the stock market/ global economy. Global reset etc
  2. Transhumanist/ AI rollout (post-human, Gates patents for human batteries linked with cryptocurrency (60606). https://news.bitcoin.com/microsoft-cryptocurrency-system/
  3. Vaccine adulation and promotion (Gates etc promising vaccine = release from captivity - pharmaceutical companies in league with WHO to drum up mandatory sales)
  4. Expediting the climate change agenda, conflating it with the virus as a call for world government and global sustainability.
  5. Plus RFID/ ID2020 tracking through vaccines (mark of the beast, without which no transaction/ employment will be possible)
  6. Demonisation and eradication of cash (total financial dominion)
  7. Mass unemployment and Universal Credit system linked to Social Credit.
  8. Bank (and corporate) bailouts – this time round it looks legitimate and necessary, no public outcry.
  9. Using and conditioning us to the concept of quarantining as a future method of control should there be any hint of unrest.
  10. Cultification of the NHS to the point of a unifying religion (clapping and donations and lionisation of medical staff during what must be the quietest time in their history)
  11. Legitimation of multiculturalism and immigration (race-baiting through NHS and volunteers, #youclapforusnow
  12. A shot in the arm for the MSM and government as a whole: no longer irrelevant and dying, people watching 24-7 since pandemic. Taking attention away from alternative media.
  13. Privatisation of NHS/ public services – corporations will step in to ‘save’ us (public gratitude replacing scepticism)
  14. Makes government look noble and heroic (wartime/ WW2 mentality fostered)
  15. COVID19 as cover story for 5G radiation/ environmental pollution/ vaccine damage etc
  16. Mass Surveillance – using 5G ‘for our safety’ to track and trace
  17. Opportunity to pass draconian laws against human rights (assembly, sectioning, travel, speech)
  18. Social alienation/ conformity as preference/ patriotic duty
  19. Prevention of assembly in order to protest draconian laws
  20. Depopulation in stages (elderly first, then with vaccines and suicides/ bankruptcy etc due to system collapse)
  21. Censorship of social media and social discourse in general
  22. Installation of 5G during lockdown to avoid scrutiny
  23. Effecting the transition of the workplace, shopping district and school to the home, ending community and all nourishing human interactions.
  24. The ‘new normal’ - social revolution and culture creation through social distancing/ queuing for shops/reinvention of the word essential/ mask wearing etc
  25. Destruction of small and medium sized businesses and the high street in general
  26. Fauci’s early dismissive comments about virus, herd immunity and futility of masks, before the script was revised.
https://www.dailywire.com/news/watch-fauci-in-march-masks-make-you-feel-a-little-bit-better-but-unnecessary-for-general-population-warns-of-unintended-consequences
”You don’t need a mask.”:
https://www.youtube.com/watch?v=NUHsEmlIoE4
To the NEJM, he described COVID in March as a flu, with similar numbers predicted to suffer.
“WOW! Dr. Fauci in New England Journal of Medicine Concedes the Coronavirus Mortality Rate May Be Much Closer to a Very Bad Flu”
https://www.thegatewaypundit.com/2020/03/wow-dr-fauci-in-new-england-journal-of-medicine-concedes-the-coronavirus-mortality-rate-may-be-much-closer-to-a-very-bad-flu/
Why the u-turn? Surely we define our experts by their consistency.
F William Engdahl article:
https://fort-russ.com/amp/2020/04/shedding-light-on-the-dishonorable-record-of-dr-fauci-a-real-mengele/
Christine Grady (Fauci’s wife):
https://www.youtube.com/watch?v=jkYen0g4TRU
17) Boris Johnson, Matt Hancock and Nadine Dorries - The statistical chances (14%) of three members of the UK Cabinet (made up of 22 people), including the prime minister, actually catching it and one almost dying apparently, right before reversing his decision to let it pass.
https://www.spectator.co.uk/article/full-list-of-senior-government-figures-affected-by-coronavirus
https://www.bbc.co.uk/news/uk-51827356
A very intentionally dramatic start to our lockdown, announced by Johnson from his "death-bed", ensuring all were in the appropriate state of panic:
"Boris Johnson: Hospital doctors were ready to announce my death"
https://www.politico.eu/article/boris-johnson-hospital-doctors-were-ready-to-announce-my-death/
18) Meanwhile, racism knocks the virus off the front pages and our minds for a few weeks, but we’re meant to go right back to taking it seriously when requested.
https://summit.news/2020/06/05/1200-public-health-experts-sign-letter-advocating-mass-gatherings-because-white-supremacy-is-a-bigger-threat-than-covid-19/
19) The many proven fake media stories...of long lines for testing and hospital footage from NY, mannequins in beds etc
https://www.thedailybeast.com/cbs-news-accused-by-project-veritas-of-faking-footage-in-michigan-coronavirus-testing-report
https://www.youtube.com/watch?v=3BUBTtUTOII
https://nypost.com/2020/04/01/cbs-admits-to-using-footage-from-italy-in-report-about-nyc/
https://www.reuters.com/article/uk-factcheck-video-operating-dummy-coron/partly-false-claim-video-shows-doctors-operating-on-a-dummy-to-exaggerate-extent-of-coronavirus-crisis-idUSKBN21P2Q8
20) International care home scandals - Deliberately mandating coronavirus carriers into crowded care homes to bump up death toll and concomitant hysteria, kill off elderly...murder?
"It is remarkable how many deaths during this pandemic have occurred in care homes. According to the Office for National Statistics, nearly 50,000 care home deaths were registered in the 11 weeks up to 22 May in England and Wales — 25,000 more than you would expect at this time of the year. Two out of five care homes in England have had a coronavirus outbreak; in the north-east, it’s half.
Not all these deaths, however, have been attributed to Covid-19. Even when death certificates do mention it, it is not always clear that it is the disease that was the ultimate cause of death..."
https://www.spectator.co.uk/article/dying-of-neglect-the-other-covid-care-home-scandal
"The daughter of a 91-year-old gran who died of Covid-19 she contracted in a care home is demanding to know why her mum was “sacrificed” by ministers.
Retired teacher Anne Duncan died in Edinburgh’s Western General Hospitaltwo days after her family managed to force a move out of the care home in the city where they feared she would die alone.
Her daughter Linda hit out at what she called a “scandalous” policy to release coronavirus patients into care homes and called for her mum’s death to be investigated as part of a wider review."
https://www.dailyrecord.co.uk/news/health/scots-gran-who-died-covid-22172074
Also, more than 40% of US ‘virus‘ deaths occur in nursing homes:
https://thehill.com/homenews/news/504885-over-40-percent-of-us-covid-19-deaths-are-linked-to-nursing-homes-nyt
21) (thanks to law of confusion!) Ventilators - All of the sudden, a clamour for them generated panic demand and buying. Cuomo desperate, while he sat in front of a warehouse wall full of them. Hegelian dialectics at play. Trump apparently withholding, Trump giving them out like Oprah, then the evidence that they were killing most people on them.
“A giant study that examined outcomes for more than 2,600 patients found an extraordinarily high 88% death rate among Covid-19 patients in the New York City area who had to be placed on mechanical devices to help them breathe.”
https://www.bloomberg.com/news/articles/2020-04-22/almost-9-in-10-covid-19-patients-on-ventilators-died-in-study
22) Testing inconsistencies:
Half of CDC Coronavirus Test Kits Are Inaccurate, Study Finds.
”The study's lead author, Sin Hang Lee, MD, director of Milford Molecular Diagnostics Laboratory, found that the testing kits gave a 30 percent false-positive rate and a 20 percent false-negative rate.”https://www.msn.com/en-us/health/medical/half-of-cdc-coronavirus-test-kits-are-inaccurate-study-finds/ar-BB16S6M6
“According to the creator of the PCR test, Kary Mullis himself, it cannot be totally and should never be used as a tool in “the diagnosis of infectious diseases.”
https://www.weblyf.com/2020/05/coronavirus-the-truth-about-pcr-test-kit-from-the-inventor-and-other-experts/
Also, this about CT testing irregularities:
https://www.thewesterlysun.com/news/covid-19/connecticut-says-it-found-testing-flaw-90-false-positives/article_91811362-a9b3-53ab-9485-00067ce9e0d5.html
Funny how all the “mistakes” err on the side of positive...
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Initial capital in Bitcoin trading: experts have named the minimum amount

Initial capital in Bitcoin trading: experts have named the minimum amount

Initial capital in Bitcoin trading: experts have named the minimum amount
To begin with, one dollar may be enough on the cryptocurrency market, but in the future, experts recommend investing in digital money at least a thousand, and even tens of thousands of dollars.
The popularity of digital money is growing in 2020. More and more people are seeking to enter the blockchain industry through investing, mining or trading. However, first you need to decide how much money can be allocated for a risky attempt to make money on cryptocurrency. Experts told why $1 sometimes may be enough, and in which case it is not worth coming to the market without $50,000 in stock.

$ 1 trading

Vladislav Antonov, analyst at IAC “Alpari”
If a person comes to the market to trade, then he must first learn this craft and only then decide with what amount to start. You can buy a Porsche and tie it in a knot in a few minutes. To get behind the wheel of a car, you need to learn the rules of the road and learn how to manage them, avoiding accidents. After training, pass the exam and get a license. Here the market takes the exam. If you break the rules, he takes money from the deposit through traders who are on the other side of you.
On the Binance market, you can start trading with as little as $1. There is such a cryptocurrency — Stellar (XLM). 10 tokens cost 0.03 USDT, 100 tokens — 0.39 USDT, 1000–3.91 USDT. You can make 100 trades at 1 XLM, and you won’t even get losses by $1. Perfect conditions to hone your skills. The market can also be compared to ultimate fighting. Here it is important not to start with what amount, but to learn how to correctly calculate the trading volume from the protective stop. That is, a trader must first determine how much he is risking in one deal and calculate the risk. It is believed that the risk in one transaction should not exceed 5% of the deposit, and better not more than 2%. First you train, then you enter the ring.
If you take, for example, a $100 deposit, then 5% will be $5. You clearly know that if the market goes against you, you will lose $5. 90% do not do this and, using large shoulders, lose everything. Then, after analyzing the market, you find the entry point and the level where the protective stop will be placed (the level at which the loss will be closed). This is where the main problem of traders’ failures lies. Everyone wants to make a million from $100, only they take big risks.
The trader must find a comfortable amount of losses. Loss is the right to earn like a business expense. When a trader gives up driving on the market with a small amount of the deposit, then he can increase it. It doesn’t matter from what amount you count 2%. If the deposit is $1000, then this is a risk of $20, if the deposit is $10,000 — $200, etc. It is necessary to answer the question: at what amount of loss is it comfortable for me to trade? And if it is possible to reduce the risk per trade by less than 2%, then it is worth doing.

$1000 and diversification

Andrey Podolyan, CEO Cryptorg.Exchange
The average static deposit on crypto exchanges can be considered a deposit of about $1000. In general, for many traders this is already the amount that it is a pity to lose and with which it is interesting to work.
However, it is worth focusing on the income that OTC activities bring to the trader / investor. If a person earns $10,000 and more monthly, then, naturally, he will not be interested in a $1,000 deposit. And if a person earns $500–1000, then a $1000 deposit for him will be even too large an amount.
In my opinion, a trader is successful if he earns a little higher than the average national salary. Example: Average salary is $1000. On average, a trader earns 10% per month on his deposit. Therefore, the working deposit must be at least $10,000.
Valery Petrov, RACIB Vice President for Market Development and Regulation
When determining investments in cryptocurrency, first of all, you need to understand that cryptocurrency cannot be the only asset in an investment portfolio.
It must be diversified according to the risk-return criterion. The point of this approach is as follows: the entire portfolio is structured according to the level of risk that you are willing to take on.
Since cryptocurrency belongs to high-risk assets and, in fact, is a speculative asset, the risks of losses for which are very high, it makes no sense to allocate more than 25–30% of the portfolio to such an asset class. Especially in today’s market, when the classical theory of portfolio investment does not work very well. “Black swans” and other market fluctuations are constantly encountered, which do not fit into the classical theory of investor behavior in the market.
For a person whose main income is wages, the formation of such an investment volume should occur gradually. My recommendation is to transfer to such an investment portfolio about 10% of monthly income, despite the fact that it is at least $1500–2000. Then any loss will not greatly affect the lifestyle.
It makes no sense to start investing in cryptocurrencies from the very first deduction. A third of the conditional $200 is an insignificant amount to go to the digital money market with it. On the crypto market, it is advisable to start operations from an amount of approximately $1000. Then the commissions and market fluctuations that exist there will not lead to quick and negative changes in the portfolio.
From this amount, you can increase investments in the crypto market. At the same time, it is necessary to observe the proportions according to which the volume of investments in cryptocurrencies should not exceed 25–30% of the portfolio, given that other assets are less risky, but they will be able to ensure stability.

Investments from $ 50,000

Victor Pershikov, Lead Analyst at 8848 Invest
When determining the minimum investment amount, you need to take into account the specifics of the cryptocurrency market, which distinguishes this site from classical financial markets. Firstly, the cryptocurrency market is incomparably more volatile than classic financial instruments, which is reflected in both higher incomes and higher risks of losing funds. In this regard, the initial capital must be sufficient in order to receive a decent return on investment, while remaining tolerant of risk. Secondly, price corrections in the cryptocurrency market are more significant than corrections in other markets, and can reach 70–90% of the developing trend movement. This also leaves an imprint on the initial capital requirements, because the investor must understand that he is just facing a deep correction and not sell his assets ahead of time, fearing a trend reversal.
The cryptocurrency market is still very young and there are high risks of various manipulations. In this regard, the investor should distribute his assets into the most diversified portfolio possible so that a collapse or bursting of a bubble in one sector does not lead to significant capital losses. Therefore, an investor must have a higher, by the standards of classical markets, initial capital in order to comfortably invest in digital assets.
I recommend starting investing in digital assets with an amount of at least $50,000, since this amount of funds, on the one hand, allows you to receive income that exceeds income from classical financial markets, and on the other hand, you can be calm and wait out the drawdown or decrease in the crypto market capitalization, which happens quite regularly.
I would also advise focusing not on margin trading, but on investing in digital assets, since on the one hand, intraday trading is statistically successful with a fairly small number of participants, and on the other hand, the bullish nature of digital assets, coupled with a very real opportunity selecting truly worthwhile assets into your portfolio allows even a not too experienced trader to succeed in the CFA market.
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It is a good time to reflect on the departure direction of DeFi

It is a good time to reflect on the departure direction of DeFi

https://preview.redd.it/7qgmezggsnj51.png?width=700&format=png&auto=webp&s=af548c50ffe0568e2c49c6de1f14e298ae8a4ee3
In which direction should DeFi develop in the next step?
The market is changing dramatically. The past few days have been like riding a roller coaster. But after several rounds of fluctuations, the DeFi segment in the stock market is still unabated. However, the hidden worries lurking under the surface are always existing.
Almost all resources in the DeFi ecology are on Ethereum. However, there are problems with the DeFi network built by Ethereum, such as the single system performance brought by the foreseeable homogeneous sharding in the future, high gas fee, low security, and low scalability, etc. These vulnerabilities make the many applications hard to use on the DeFi network, including high-frequency trading and the transaction matching modes (We use the Uniswap asset pool model today.)
The problem with ETH1.0 is that the performance is limited, and all the transactions are mixed without any organization. Although there is composability for the DeFi applications, the network needs to operate both DeFi applications and other transactions or DApps.

Network congestion and skyrocketing gas fees

As we all know, Ethereum relies on the consumption of GAS to run its economic operation. Every step of the chain requires the consumption of GAS. Bitcoin plummeted by almost 50% to $3,800, and ETH fell as much as 65.2% just on March 12 and 13, 2020. The plummet caused a run, the Ethereum miner fees that carried a large number of DeFi and DApps skyrocketed, and the network was also congested. The Ethereum GAS fee increased to 10 times of the usual, and the GAS fee was once as high as 1 ETH to successfully package transactions. After that, because the lending operations of DeFi applications require frequent interaction with contracts, the gas fees on Ethereum have also remained high.

Problems inherited from ERC20 tokens are affecting the DeFi products on Ethereum.

If you use Ethereum’s native token ETH, the operation is simple. As long as the ETH is transferred to the contract of the target DeFi application, the contract operation will be the same as when we use cash to invest in stocks or wealth management products. No other operations are required.
However, the operation of tokens minted using ERC20 contracts is very different from native ETH, regardless of whether the tokens minted by these ERC20 contracts are well-known. Before trading, the ERC20 contract first authorizes the DeFi platform’s contract to transfer a specified number of ERC20 tokens on the account, such as USDT, USDC, or WBTC. After approval, the DeFi contract is called to transfer money. The intuitive understanding is to avoid frequent password input in small transactions, we authorized Paypal to open a password-free payment, so that the payment can be directly deducted during consumption. It sounds convenient, but is it that good?
There is a crucial problem here: if the DeFi contract is malicious during the approval process, this DeFi contract has the right to transfer all the ERC20 tokens on our account to any account. It is similar to that we authorize Paypal to perform a password-free operation of the balance, but if a hacker attacked Paypal successfully, this hacker could transfer all our money to his account. Similar things have happened before.
There is a famous project called Bancor, which used to rely on the type of authorization contract for ERC20 processing. However, there was a bug in the contract that allowed the contract to transfer the tokens in the user’s wallet to any hacker designated address after the user was authorized, which caused a loss of almost 100,000 US dollars.
The loss was not so significant because it occurred in the early stage of DeFi development. If it happens today that the DeFi asset scale on Ethereum already reached hundreds of millions, it would cause severe damage to the entire Ethereum ecosystem and the development of DeFi.

Cold shard and hot shard

DeFi needs composability, convenience, and a stronger capability of anti-run. If the throughput is insufficient, sharding technology can be introduced, which is what ETH2.0 does. However, due to the combinability of DeFi, these applications tend to aggregate into one shard, which is prone to clustering effects. This will result in different shards gathering different contents. This is called hot shards and cold shards, which are analogous to different types of cities such as metropolises as New York and Tokyo, and other places like Kyoto and Alaska. Some places have become Wall Street, while other places may become scenic or living areas. Because of the aggregation of different functions, different shards will have different features.
It is quite unwise to develop algorithms to forcibly redistribute load balancing on shards. This is equivalent to using a simple system to determine the development of a complex system, much like a planned economy. However, we can design different features in advance to make them more capable to display their own features, just as humans transformed and utilized the natural resources based on their understanding of nature, thereby improving efficiency. That means, to set up some shards with different performance and even different consensus algorithms (e.g., the features of PoW and PoS are different).
Maybe there will be a major financial shard, like London, or two other special shards with their own features, like New York City and Chicago. Financial shards require high throughput and high cost. These are called hot shards, which carry large-value transactions, otherwise, the gas fee may be too high. Most people will live in the countryside, which means cold shards here. When you need the hot shard features, you don’t need to live in Manhattan, nor do you need to travel to Manhattan occasionally. Most of the time, you will live well on another shard. When one really needs to run on a DeFi shard, it only takes a few minutes of cross-shard transactions.
But the problem generated from this is that since each shard has its own features, it may cause the shards to be independent. What we need is that shards can be harmonious but keep their differences, that is, cross-sharding DeFi needs to be achieved. Today’s multi-chain heterogeneous technology can contribute to solving this problem. Only by solving these problems can more DeFi applications be stimulated.
In our opinion, a mature DeFi platform must have the following features:
Higher Efficiency: Have faster concurrent processing capabilities, i.e., high TPS.
Lower Gas Fee: Lower gas fee can stimulate the enthusiasm of DeFi users and even catalyze the development of high-frequency trading.
More Secure: There are fewer interactive processes in the contract, at least structurally to avoid the problems ERC20 caused due to the different permissions, which leads to complicated interactions and lengthens the operation chain and increases loopholes.
Easier to Use: Various multi-native tokens can be used to pay gas fees during transactions, and thus no need to use designated tokens to pay gas fees.
Easier Combination: It can support the combination of a wide range of contracts, including the combination of different consensus in the same chain, ledger structure, and other elements, and even cross chains, making DeFi a real “Lego”.

Multi-chain heterogeneous + DeFi, one unhindered currency is helping to reach the perfect

Multi-chain heterogeneity has formed “cities” and “villages”, and DeFi has become the financial center among the cities. Since we use cities for comparison, how can we avoid each city’s independent governance and link up the chains of urban interests to form a greater network? The answer is the same as in real life, that is, the so-called currency everywhere.
Ethereum also provides currency, but this currency is not only inefficient, but also indirectly causes security risks. If you want long-term development, such a design is unreasonable.
In the QuarkChain mainnet, multi-native tokens are our primary function for building the next generation of DeFi. Multi-native tokens have basically the same status as QKC in the QuarkChain system. They can call contracts, perform cross-chain operations, and pay gas fees under certain conditions. Native tokens can achieve all of QKC’s functions, including cross-chain transactions, except participating in QKC governance. Most of the non-native asset inconvenience problems faced by Defi can be solved. In the future contracts, the functions of native tokens will be exactly the same as QKC, with the last barrier to the application of multi-native tokens being removed. This also avoids the problem of reducing the security of the entire DeFi system due to the ERC20 token’s authority issue. Next, we will launch our DEX, and then users will have the true feeling of the unimpeded DeFi platform on QuarkChain. Thus, the last piece of the puzzle of multi-chain heterogeneous + DeFi + multi-native tokens has been fulfilled, which brings cost efficiency, user easiness, and security to a new level.
Ethereum’s performance and contract security restrictions have affected development. After our repeated introduction and numerous testing, the multi-native token function is ready to be officially delivered to the community. Soon, community members can mint their own tokens and use them to transfer funds (including cross-sharding), pay gas fees, directly call smart contracts, etc. In conjunction with the DEX that we will launch in the next step, users can actually experience the convenience and innovation brought by multi-native tokens to the blockchain system.
To verify the validity of this theory, we recently launched the Game of DeFi Campaign. In the last stage of the campaign, we launched a simple DEX application and a game: QSwap — the multi-native token version of Uniswap, and Element Miner — a fun mining trading game. This is the new value that DEX and game-based mining will be able to bring to DApp and DeFi applications based on the verification of multi-native tokens with the game format. Because the gas fee is low enough, every step of the operation will be on the chain to ensure security. Meantime, instead of ETH’s high gas fee, which made users either high-cost and low-efficiency, or low-cost and low-security, the multi-native token proves the real security and convenience.
Our Game of DeFi Campaign has already entered the final stage. There are still millions of QKC reward pools waiting for the users to share. Users can download QPocket wallet to participate in this event.

Phase III: King’s Landing — Dex and Liquidity Mining

In this phase, all the community members can have the experience to use our two new products:

QSwap: Multi-native token version Uniswap

Unlike Uniswap, which can only support ERC20 tokens, QSwap supports multi-native tokens. Thus, no extra pre-authorized approval is required in the process, and any multi-native token can be used to pay gas fee ( not only QKC ). Users will get a better experience and maintain more security by avoiding granting unlimited authorization. Moreover, there will be a much lower gas fee due to sharding technology provided by QuarkChain infrastructure.

Element Miner: Interesting mining and trading DApp game

The player’s goal is to collect 5 elements to join the reward pool. However, since these elements are reinforcing to each other (just like the mining throughputs from different projects are different), using QSwap will be the most efficient approach.
One last question: This DeFi campaign uses test tokens. What if the network uses tokens with real value?
submitted by QuarkChain to quarkchainio [link] [comments]

Perfect storm leads to big sell-off for Bitcoin and DeFi: Weekly recap

A sharp correction in equities markets led Bitcoin price and DeFi tokens to sell-off sharply but have investors turned bearish?
Digital asset markets were on a parabolic surge until investor confidence took a major hit to close out the week with a bearish tilt due to a perfect storm of negativity.
Before reading the rundown, catch up on the most-read stories centered around the price of Bitcoin, the macroeconomic picture and the DeFi phenomenon gaining traction.
Bitcoin price, stocks and gold plunge in tandem — What’s next?
Don’t panic? ‘Smart money’ whales are waiting to buy Bitcoin at $8,800
Yearn.finance’s $140M yETH vault proves investors are ravenous for DeFi
Bitcoin mirrors gains of past halvings, suggesting $41K price in 2020
⁠Ethereum gas fees reach $500K as ETH price hits a 2020-high at $486
A significant drop in equities markets was led by blue-chip stocks that had been at all-time highs. As this occurred, many tokens tied to DeFi platforms corrected sharply, most notably, SushiSwap (SUSHI) which lost nearly 40 percent of its value.
The correction in traditional markets appears to have influenced Bitcoin’s (BTC) more than 10 percent drop before a small bounce back to the $10.3-$10.4K range.
More isn’t always merrier
Technology stocks that led US equities to record highs this summer reversed sharply this week, sending the Nasdaq Composite index tumbling almost five percent in its biggest fall since June.
Apple’s shares lost eight percent — wiping more than $150 billion from the iPhone maker’s value — while Amazon, Alphabet and Microsoft all fell more than four percent.
As a result, the VIX index jumped above the 30-point mark for the first time since mid-July, and the equivalent volatility index for the Nasdaq shot up to more than 40 points — nearly double its mid-August low.
Historically, the VIX has only surged into the 30s a handful of times in the past and almost always leads to a significant retracement.
It is a reminder that crowded trades bring a lot of volatility when someone begins to unwind their positions. Digital asset traders are more than aware of such dynamics and while the bulls may be feeling particularly salty about the reversal of fortunes, the pull-back offers an opportunity to rebuild.
The futures curve also flattened aggressively as leverage buyers were the first ones to look for cover, and there are plenty of opportunities in the options market to take advantage of market mispricing.
Are DeFi tokens the new pink sheets?
Ethereum transactions soared to multiple new all-time highs for the second time in three weeks and Uniswap V2: Router 2 is now the lead contributor to gas usage, according to Etherscan. The decentralized exchange is followed by Tether (USDT); and then the latest DeFi sweetheart that is SushiSwap: MasterChef LP Staking Pool.
And so, Tether has finally been dethroned from its top spot as the main contributor of gas usage.
The fact that it was toppled by none other than a DeFi platform speaks a lot for the recent growth of the industry and, as it stands, over $9.34 billion is locked across various platforms. Currently, Aave, Maker and Uniswap constitute about $1.5 billion TVL each.
On the one hand, DeFi is a high risk, high reward market, but so is trading small-cap (pink sheet) stocks. Both clearly have a market, and always will among those with an appetite for risk.
Is relief from high gas fees on the way?
The ongoing focus on DeFi and the recent hyperactivity on Ethereum has resulted in sky-high congestion and gas fees. This led Ethereum founder Vitalik Buterin to point out several solutions through rollups and sharding.
ZK-Rollups are a zero-knowledge proof technique that helps rollup or batch many transactions into a single transaction, and therefore, helps reduce congestion on the Ethereum blockchain. Less congestion means lower fees.
Optimistic and ZK roll ups can increase capacity from ~15 tx/sec to ~3000 tx/sec by doing most of the transaction processing on layer 2. Sharding, on the other hand, increases the capacity of the base layer by ~100x.
This could lead to a 100x decrease in fees, though realistically in the long term it would not decrease quite as much because the demand for Ethereum is also likely to increase.
The only solution to high transaction fees is scaling and Tether, Gitcoin and other apps are doing the right thing by migrating to ZK rollups. A positive development is that Tether is now planning to add support for another Layer-2 scaling solution (ZK-Rollups).

Bitcoin

Ethereum

Nasdaq

Transactions

Markets

Stocks

DeFi

submitted by DiFi_Update to u/DiFi_Update [link] [comments]

Blockchain Oracles: Connecting The Worlds. Part 1

Blockchain Oracles: Connecting The Worlds. Part 1
Many blockchain-based cryptocurrencies, and most importantly, Bitcoin and Ether, have become notorious for transaction failures, primarily due to scalability issues. And that’s pretty much all when we talk about plain-vanilla Bitcoin and its copycats like Litecoin or its clones like Bitcoin Cash. But with blockchains like Ethereum, which expand into the far reaches of a new territory known as smart contracts and decentralized applications (dApps), this is only the tip of the iceberg. In other words, only a beginning.
by StealthEX
What hides below the surface, and thus rarely emerges in public discussions about cryptocurrencies, is the closed-off nature of smart contract-enabled blockchains. To be ever so slightly useful, smart contracts and dApps running on top of them must have access to real-world data which is immensely off-chain, while they are permanently stuck within the constraints of their tiny on-chain world. So how do they escape out of the straightjackets put on them by their restrictive environments? That’s where blockchain oracles come into play.

And what role do they play, exactly?

Enabling smart contracts and dApps to interact with the outside world opens both endless possibilities and a big can of worms. Now that the entire world is made available to a smart contract, it can take an input from an external source of information, make some calculations that require this data or arrive at a decision based on it, and then get down to some work like moving contractually-locked funds from Alice to Bob. Or from Bob to Alice, depending on the verdict. Sounds cool, huh?
But here’s the catch. As transactions on a smart contract blockchain are supposed to be irreversible (while the blockchain itself immutable), it can lead to catastrophic consequences if the input has been tampered with or just happens to be incorrect for some arbitrary reason, not necessarily ill in intent. This fundamental problem of internalizing the outside world for on-chain execution of contractual agreements on smart contract blockchains has become most apparent with the advent of Decentralized Finance (or simply DeFi) a few years ago.
DeFi is a promising new kid on the blockchain arena. It hinges on the idea of decentralizing most financial services that we use today, but without a bank or other financial institution in the middle. It is envisioned that with the help of smart contracts and dApps using them we will be able to lend money and borrow with collateralized digital assets, offer and receive banking services including mortgages and insurance, buy and sell digital assets safely on decentralized marketplaces, as well as issue stablecoins and user tokens. Pretty impressive list, isn’t it?
However, for all of this to work properly we need trustless and reliable sources of information outside the blockchain that provide inputs to dApps running on that blockchain. DeFi requires trustless data feeds about the state of the world to ensure correct on-chain execution of smart contracts powering dApps. But how do we get these and manage to retrieve external data that cannot be verified through cryptography but that we can still trust and rely on? Entities that provide off-chain data for on-chain consumption are called blockchain oracles. Technically, an oracle is an interface through which a smart contract queries and retrieves information from an external source of truth.
As it turns out, DeFi is not the only field of application where blockchain oracles turn up quite handy, but since their use is most indispensable there, it makes sense to delve deeper into this area.

Oracles of DeFi

Today, the space is crowded with a plethora of players that aim at providing DeFi with so much needed real-time market information, for example, digital asset prices. There are many forms of oracles, but the most important distinction is drawn between centralized and decentralized ones. As DeFi is supposed to be a trustless, decentralized environment, the decentralized oracles are the flesh and blood of this ecosystem, so we are mostly concerned here with this type of blockchain oracles (just in case, there are centralized oracles too).
DeFi platforms deploy various oracle solutions in their pursuit of retrieving real-time information about the market price of digital assets. The most well known among these is the MakerDAO lending platform which uses an oracle module called the Medianizer to obtain the real-time exchange prices. Technically, it is a smart contract that accepts price updates from independent data feeds, discards false ones along with outliers, and calculates the median price (hence the name) to be used as a reference for other smart contracts.
Another blockchain-based borrowing and lending platform, Compound, uses administrators who are holders of the platform’s native COMP token. They manage and control price feeds through aggregator contracts they create. Authorized sources of information called reporters are then queried for reference prices by aggregators which verify the data and calculate median values to be used internally. A somewhat similar approach is utilized by AmpleForth, a developer of a stablecoin with elastic supply, and Synthetix, a platform for creating crypto-backed synthetic versions of assets like commodities, stocks, indices, cryptocurrencies, and fiat.
On the other hand, there are a few blockchain projects that provide decentralized oracle services to other platforms and blockchains, mostly Ethereum and EOS. Such projects as Provable (formerly Oraclize), ChainLink, Band Protocol, Tellor aim at providing blockchain-agnostic protocols that allow query and retrieval of virtually any type of reference data in a standardized manner. As authenticity and veracity of the information retrieved is of crucial importance to its consumers, these projects run their own decentralized blockchains whose primary task is to validate data feeds and check that the information received is authentic and has not been tampered with.
Realistically, these special-purpose blockchains come closest to the implementation of a blockchain oracle idea in a truly decentralized and trustless way.

To be continued

In the second part of this two-part article we will look into other uses of blockchain oracles beyond DeFi, and talk about potential problems and pitfalls of this nascent technology, as well as approaches used to deal with them. Stay with us and remain in the know!
And remember if you need to exchange your coins StealthEX is here for you. We provide a selection of more than 250 coins and constantly updating the list so that our customers will find a suitable option. Our service does not require registration and allows you to remain anonymous. Why don’t you check it out? Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example COMP to DAI.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
Follow us on Medium, Twitter, Facebook, and Reddit to get StealthEX.io updates and the latest news about the crypto world. For all requests message us via [[email protected]](mailto:[email protected]).
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/08/12/blockchain-oracles-connecting-the-worlds-part-1/
submitted by Stealthex_io to StealthEX [link] [comments]

Gold and Silver: Where Do They Go From Here?

https://federationofglobalmerchants.com/2020/08/14/gold-and-silver-where-do-they-go-from-here/

Investors know by now that one of the leading indicators of an unstable and unpredictable stock market is a surge in the price of precious metals like gold and silver. In February, amidst the COVID-19 pandemic, the markets officially entered a recession, even though just months later several of the major indices have reached all-time highs. It was a brief dip into recessionary territory, but this sort of volatility is what gives investors hesitation in putting their money into the stock market, rather than something that is perceived to be more stable. Gold future contracts are selling well above $2000 per ounce for the rest of 2020 and well into 2021 as well showing that investors are confident that gold will continue to rise in price. Silver is also surging reaching new all-time highs on a daily basis. So investors may be curious as to how to get into this red-hot market, especially as the markets continue to fluctuate.
Gold:
For centuries now gold has been literally the ‘gold-standard’ of currency and wealth. Dating back all the way to around 40,000 B.C. in Spanish caves, gold is a naturally occurring element that has both fascinated and lured people for as long as barter systems and wealth has been recorded. Currently, gold is enjoying its highest valuations in history as investors flock to the stability of the precious metal through various streams. So what is the allure of gold and why is it so stable?
Warren Buffett once said, “Gold is a way of going long on fear.” That is quite a statement from perhaps the greatest investment mind of our generation. But what does this mean for the novice investor? Even the most successful blue-chip stocks can crash. Obviously the more prominent and profitable companies with mega market caps will not crash as easily as smaller companies, but given the volatility of the pandemic, we can see anything happen. But as stock markets fluctuate on a daily basis, the price of gold remains mostly stoic. Not as manipulatable as stock prices, gold is as steady as it gets for investors.
What makes gold so stable? It is a combination of factors, first and foremost, it is a physical and tangible element which makes it possible for people to store and stockpile. It does not corrode or wear down over time, making it durable and ensuring that the value remains. There is also a finite supply of it in the world. This reinforces that it will always keep a certain level of valuation as the supply is kept in check.
Today, as the Federal Reserve tries desperately to pump money into the American economy to stave off a global recession and keep companies afloat. Printing more American dollars helps in the interim, but it is a temporary band-aid for the bigger problem. As more of the dollar gets created the more it gets devalued as a form of currency. This is another reason why gold is skyrocketing. The two valuations always work inversely to each other, so as the greenback continues to plummet, the price of gold will continue to surge which makes perfect sense if one thinks about it. The value of gold is priced in American dollars per ounce, so if the value of an American dollar retreats, the cost of gold will rise in response.
So how can investors take advantage of the current state of gold? In the age of internet investing, there are plenty of ways to invest in gold or anything in that matter. Most American platforms give inventors the ability to buy fractional shares of companies. While this comes in handy for expensive stocks like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), or Tesla (NASDAQ:TSLA), it also allows investors to diversify their funds across multiple companies to form a basket approach to an industry. There are also plenty of ETFs or Exchange Traded Funds, available for investors to consider. These funds have the diversification of a mutual fund or index fund, but trade like individual stocks. Here’s a few of the better gold ETFs to consider if you are looking to get into the industry:
  1. IAU – iShares Gold Trust: One of the better known gold ETFs out there, iSHARES is a reputable brand with great overall market performance. The fund has returned over 17% to inventors already this year, and with the price of gold projected to continue to rise, this fund should keep delivering for investors into next year.
  2. DGL – Invesco DB Gold Fund: Another well known and reputable ETF, the Invesco Gold Fund has slightly higher fees than iSHARES but has also had a slightly better return so far this year.
  3. IAUF – iShares Gold Strategy ETF: Another iSHARES ETF, this one has parts of IAU, as well as gold futures contracts, to get a long term forecast of the price of gold so the investor gets exposure to a wider range of gold options.
There are dozens of other ETFs available for investors that cover everything from miners to the finished products. Mining company stocks are another great way to get exposure. As the demand for gold increases, these mining companies should see a rise in their revenues and eventually, their profits as well. These changes will be reflected in their stock prices and we have already seen some of this already this year.
  1. ABX – Barrick Gold: One of the largest gold mining companies in the world, this Canadian company has seen healthy gains in their stock price so far in 2020. Over the last 52 weeks, Barrick investors have enjoyed a 131% increase in stock price. With mining projects ongoing in Canada, America, Australia, South America, and Africa, Barrick has already announced that it is on track to achieve guidance this year despite closures from COVID-19.
  2. FNV – Franco-Nevada Gold: This stock price rose almost 15% in July alone. Franco-Nevada operates as a funding company to gold mining companies, rather than actually doing the mining themselves. Sustainalytics, a guidance and analysis company, rated Franco-Nevada number one amongst 104 precious metal companies.
  3. NEM – Newmont Goldcorp: The largest gold stock by market-cap and the only stock to trade on the S&P 500, Newmont is probably the safest company for gold investors to invest in. On top of steady returns and low volatility in the stock price, the company pays a fairly healthy dividend as well.
With gold at all-time highs, we can begin to question how high the precious metal may go. With a second wave of the coronavirus making its way around some parts of the world, and America, still making its way through their initial wave, the uncertainty that exists in today’s markets may continue into 2021. Some Wall Street analysts have forecast gold to rise as high as $10,000 per ounce, but that seems like a little ambitious. Gold has just recently hit all-time highs at $2000 per ounce and to imagine that it can run up another 500% in the next few years seems far-fetched at this point in time. That would require the markets to enter an extended bear-market, which of course is possible after a decade of a bullish run, but it would also require the American dollar to continue to be further devalued.
Gold is pegged to continue to rise for the rest of this year though and well into 2021. That means investors and analysts are foreseeing a further devaluation of the American greenback as well as continued volatility in the markets and economy. Is gold a safe haven? Some people believe it is, but if you are an investor that enjoys high returns over long periods of time, investing in precious metals may not be for you. Investors love the stability of gold but the returns are never astronomical, with the last few months being an exception. It helps to have a portion of your portfolio dedicated to precious metals to diversify and protect you from any sudden market corrections, but investors should not be looking at gold as a short-term way to get wealthy.
Silver: The other precious metal that has been flying sky-high of recent months is silver, the eternal younger brother to gold. Mined from silver-ore, it is a highly malleable metal that was once valued higher than gold by the Ancient Egyptians. Today, it is relatively low in price per ounce compared to gold, reaching all-time highs recently of just under $30 per ounce. Silver is another stable alternative to gold, and at lower prices, it may be a little more affordable for the novice investor to jump into.
Like with gold, silver has an inverse relationship to the American dollar, and to all currencies in general. Again, this is another reason why silver is hitting all-time highs right now, with silver future contracts predicting a steady rise to mirror gold, well into 2021. There is also something that Wall Street calls the gold silver ratio, which is exactly what it sounds like: the ratio of the price of gold per ounce to the price of silver per ounce. This ratio has historically moved together, which makes logical sense if both precious metals are independently moving inverse to paper currencies. Historically, the gold and silver prices do move together though as the general ratio has been in the range of 17:1 to 20:1.
Silver also has numerous ways for investors to get involved in, including silver mining and production companies, as well as the ever popular silver ETFs. These Exchange Traded Funds have gained popularity amongst retail investors in recent years as a way of purchasing a diversified product as a single equity with low costs, and no trading fees if your platform allows it. Here are a few of the better performing silver ETFs that investors can look into adding to their portfolios if they are interested in the precious metal:
  1. SLV – iShares Silver Trust: Probably one of the better known silver ETFs, this is fully backed by silver bullion and coins held in a vault. While usually fairly steady, this ETF has enjoyed a 52-week increase of 152% with much of that coming in the last few months.
  2. SIVR – Aberdeen Standard Physical Silver Shares ETF: Very similar to SLV but with lower fees, this is an ideal fund for novice and experienced investors to get into as they start to diversify their portfolios.
  3. DBS – Invesco DB Silver Fund: Again another stable ETF for investors to get into, and another good performing one as well. Just as with their gold ETF, Invsco focuses on silver futures contracts for this fund, so it is a nice long-term play if investors are bullish on silver.
Just as with gold, investors can get a slice of the silver pie by buying shares of silver mining companies as well. Here are a few of the top silver mining company stocks that investors can look into adding to their portfolios.
  1. PAAS – Pan American Silver Corp.: This Canada based miner is focussed on the exploration, development, extraction, refining, processing, and reclamation of silver. They operate mines in Peru, Mexico, Bolivia, and are developing more as well for the future.
  2. WPM – Wheaton Precious Metals: Another Canadian based company that deals with miners of gold, silver, palladium, and cobalt. Wheaton is not a direct miner, rather they purchase these precious metals from other mining companies.
  3. AG – First Majestic Silver Corp.: Canadian companies seem to be dominating the silver industry, and First Majestic is another of those. This company focuses mainly in Mexico for gold and silver.
Silver may never be as popular as gold for investors to keep track of but the two precious metals move in a synchronized fashion, and both are looked upon by investors as safe havens for their money when the market is in flux.
The rest of 2020 seems like a wildcard right now, with many analysts expecting a further correction to the markets at any point. There seems to be an inevitability to a market crash of some sort, whether it is as big as the one that happened back in February and March, remains to be seen. Investors are looking at the precious metal industry to hold their funds to wait out any sort of correction or crash. If this does happen, we may expect a pullback in precious metals too as investors selloff to get back into some stocks at their low levels. Such is the ebb and flow of the economy during turbulent times like the current one we are in.
At the same time, what if a market correction does not happen? Will the uncertainty continue or will investors feel relatively secure in the way the markets are progressing? This could cause a reduction in the demand for silver and gold, culminating in lower prices in the future. Of course this also depends on the Federal Reserve diminishing their rate of printing paper currency to bailout the economy, which does not seem like a reality in the short-term at least.
Another point of contention for investors is the ongoing economical and political tensions between China and America. The two world powers have been feuding for the past couple of months over various things, but it escalated as China social media app Tik Tok gained popularity in North America. It was alleged that TikTok was sending data and information from mobile phones back to China, though nobody is sure of their intended use of this data. Regardless, the markets have stumbled several times lately because of this. Both sides have threatened economic sanctions and the banning of certain product use in each country. The prices of silver and gold have shot up as the tensions have escalated between the two governments, as investors flock to the precious metals. Many of the biggest companies on the major stock indices rely on China for materials or production, so any sort of breakdown in supply chains could cause an enormous change to their stock prices. An example of this is a sudden 5% correction in the price of Apple (NASDAQ:AAPL), as it was thought that iPhone sales would decline if China’s chat platform WeChat was banned in America.
There are other factors that may have an effect on gold and silver prices as well. In this modern economy, many of the retail investors have trended towards younger adults with a sudden influx of income. Popular platforms such as Robinhood combined with increased time at home during the quarantine, have caused retail investor usage to skyrocket during the pandemic. Many of these investors are more lured in by the shiny new objects of cryptocurrencies like Bitcoin. Perhaps we will start thinking of these cryptocurrencies as a modern day version of precious metals one day, as many investors and some analysts, believe that Bitcoin may be a safe haven in the future. Already, the price of Bitcoin has risen above $12,000 in August, mirroring the highs of gold and silver. If the demand for Bitcoin rises higher than the demand for precious metals, we may see an investor migration to cryptocurrencies rather than tangible metals.
Conclusion: Gold and silver are staples of our global economy, and will continue to be so as long as the demand for precious metals exists. In times of uncertainty, gold and silver are viewed as safe relative to the volatility of the stock market. Sure, their prices can vary as well, but because they are tied to a less dynamic valuation that is based on an inverse relation to paper currency, their prices will not and can not fluctuate as much as the liquidity of individual stocks.
As long as the world remains in flux, there will be a general feeling of instability, especially for global markets. A second wave of COVID-19 in the third or fourth quarter of 2020 could prove to be enough to push the markets over the edge and into another recession. The bull market has been rallying for over a decade now, with astronomical gains over the last few years, especially for sectors like the big tech FAANG stocks. Another factor to consider is what a Biden government could bring to the world if he is elected over President Donald Trump in October. A new government could ease some of the tensions with China, as well as within America itself. These are all big what ifs, and could all have potential impacts on the economy and the world. As long as all of these factors are up in the air, investors will be looking to gold and silver as ways of stabilizing their portfolios and protecting their finances from a potential market crash in the future.
submitted by Toughcatlove to u/Toughcatlove [link] [comments]

Market maker: who is it and what function do they perform?

Market makers have become as a key link in the financial markets. There is a misconception that market makers can influence the price of assets. In fact, this statement is far from reality. The main task of a market maker (MM) is to provide liquidity of any asset. If an asset traded on an exchange is provided with sufficient liquidity, the price and spread will be at an adequate level. If there is no liquidity — it will not be profitable to trade an asset, the price will stop at one mark and the spread will expand. So, what exactly do market makers do? Let’s analyze in more detail in this article.

Definition and responsibilities of the market maker

A market maker (MM) is a firm or individual who actively quotes two-sided markets in a security, providing bids and offers (known as asks) along with the market size of each. The profits of the market maker is made up of several aspects:
  1. Payments from the exchange as stipulated in the cooperation agreement.
  2. Spread from the execution of orders.
  3. Speculations and investments.
The SEC regulator explained the functions of the market maker — willingness to buy and to sell an asset on a permanent basis, at a public quote. In other words, maintaining an adequate level of supply and demand, as well as confrontation with the market, for example, selling bitcoin in case of its rapid growth or buying in case of a fall.
In addition, the market maker may act as an intermediary seller or a buyer in case of absence of one of the parties. If you decide to buy or to sell an asset on the exchange and your transaction has passed within a second, the market maker is acting as an intermediary. In this way, the liquidity providers remove unnecessary delays and difficulties in exchanging assets.

Market maker trading process

For example, there is a buyer on the exchange who is ready to buy 100 ETH and there is a seller who is ready to sell 90 ETH. The task of the market maker is to add 10 ETHs and to provide a price to a buyer, for example $200 and for a seller, for example $199. The buyer will pay $20,000 and receive 100 ETH, and the seller will receive $17,910 and give back 90 ETH. The market maker will receive $2,000 for the 10 ETHs and $10 spread, for providing liquidity. The liquidity provider makes a lot of such a trades a day, and as a result has a good profit. However to do this, you need to have an impressive stock of assets to maintain a level between supply and demand. With such not complex machinations, the market maker ensures the efficiency of financial markets, maintaining an adequate price for the asset and the minimum price divergence between exchanges.
Based on the above example, we can think that the activity of a market maker is not complicated and a stable way of earning, in the presence of impressive capital. However, this is not quite true. During time when the market is very volatile, liquidity providers can suffer losses. For example, there is a buyer on the exchange who is willing to buy 100 ETH and a seller who is willing to sell 10,000 ETH. A buyer buys 100 ETHs at $20,000 (price for 1 ETH $200) and a seller gets $19,990 (price for 1 ETH $199), the market maker gets $10 as a spread. At the same time, there are 9,900 ETHs left, which the seller wants to sell, and the market maker, respectively, must buy them back. Having paid $1,970,100 for the entire offer (price for 1 ETH is $199), the liquidity provider will not be able to sell them for the same price. Even if the price drops to $198.5, the total sale price of 9,900 ETH will be $1,965,150, with a loss of $4,950. Considering that the crypto market is famous for its volatility, the price difference may not be 50 cents.
A market maker cannot simply sell the ETHs they receive at a reasonable price for the following reasons:
  1. No one will buy the asset at an unfavorable price, and a sale of 9,900 ETH is likely to have impacted the market.
  2. The exchange’s service agreement states that the market maker cannot simply take and sell the assets, otherwise its services may be refused.
  3. This method can be considered as market manipulation.
Therefore, in a moment of strong volatility market makers simply leave the market, otherwise — it can lead to a serious loss. During high market volatility, it is often impossible to close a position at the right price, due to the lack of liquidity on the exchange. This indicates that the market makers have withdrawn from trading.
It is also possible to track the presence of a market maker on the exchange in the following way: if the spread is narrow and the price of an asset is in a sideways trend, the liquidity provider participates in trading on the exchange. If the spread is wide and the price of an asset is subject to volatility — the market maker has withdrawn from trading. In the same way, you can find out whether there is a market maker at the exchange at all, i.e. whether they resort to its services.
The Market Maker performs vertical market analysis, not horizontal market analysis as ordinary traders do. For the liquidity provider, in addition for buying or selling an asset, the order glass displays pending orders, Take Profit and Stop Loss. This allows you to correctly interpret the mood of the market participants and perform your direct duties as a market maker — to maintain liquidity levels and narrow spreads, as well as to provide large volumes of orders.

Market makers on the crypto market

Market makers in the crypto market are much more in demand than the traditional market and that’s why. If we talk about crypto currencies from the top 10 list — their liquidity is enough to buy or sell a coin almost instantly. However, there are about 3,000 crypto currencies for 2020 and not all of them are liquid.

The process goes like this:

Startup is going to be carried out by IEO (Primary Exchange Offer), a modern analogue of ICO. The stock exchange considers the token and leaves it. After a week, a month, six months the amount of investment in a token is minimal. There are two reasons for this:
  1. A skilled trader, when investing in a new coin, will rely on the order book. As the token is new, even if it is promising, but there are no records of selling and buying, so the trader will refuse to invest.
  2. A significant player has learned about the listing of a new token and its future prospects. It was decided to open a large, long term position, but there is no liquidity, that is, if the position is opened, it will be time consuming.
To avoid such a development, the crypto market should resort to the services of market makers. Liquidity providers may buy a token and artificially “fill” the order book. In fact, this will be a twisted indicator of liquidity and is suitable only for speculative purposes. But 90% of cryptotraders came to this market because of its high volatility, i.e. to earn on price hikes.
For this reason, crypto currencies need the services of market makers for the systematic establishment of the market and attraction of new, professional traders.

Strategies used

As a rule, market makers always resort to ATS (Automated Trading Systems) and HTF-trading (High Frequency Trading). Both systems require very advanced programming skills. In addition, it will require economy knowledge, preferably not minimal, in order to make right assessment of work and potential risks.
Sell-Side strategy — automatic trading systems are used to constantly maintain optimal prices and profit from spreads. It is not rare to have a strategy of placing Buy and Sell orders simultaneously. In fact — a common risk hedging.
HFT or high-frequency trading- is a type of algorithmic trading characterized by a high speed and turnover of capital, as well as short asset holding periods. To become an HFT trader you will need specialized robots and powerful computers as the main task of high-frequency trading is to conclude a lot of transactions in the shortest possible time. With the help of HFT trading market makers must set a quote or the last price and constantly update it.

Conclusion

Market makers are a necessary part of the economy. They do not earn on price movements, but create comfortable and loyal conditions for trading. In the end I would like to tell you about some myths that exist in the network in relation to market makers.

Market makers can affect market quotes

That’s true, however in a slightly different understanding. The task of a market maker is to create the market mood and push its participants to open orders in the right direction. Market makers cannot influence the quotes price for two reasons:
  1. The exchange where the market maker trades, monitors all its operations. In case of intentional influence on the price of the asset, the reaction will be immediate.
  2. This kind of activities are trade manipulations, i.e. they are prosecuted by state regulators, up to including deprivation of license to operate such activities.

Market makers cooperate with each other

At the beginning, I would like to mention that all market makers are competitors, and to disclose their plans to competitors is not a good idea. In addition, it is also punishable by law, up to deprivation of a license to conduct activities.

Most transactions on the platform are initiated by market makers

It’s not a very clear statement. The main profits of a market maker is spreads. How in this case should the liquidity provider earn, if all transactions on the site belong to him?
These are the most popular myths in the network regarding market makers. In the end I would like to add that the work of the market maker — is a complex and time-consuming process, the result of which is a balanced financial market.
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