Daily Archives: September 1, 2018

Joost van der Burgt analyzed the correlation between Google searches for bitcoin and bitcoin's price.

Economist Finds Correlation Between Bitcoin Price and Google Searches

A Dutch economist and policy advisor to the Dutch National Bank believes that he’s found an exact correlation to Bitcoin price fluctuation and Google Bitcoin searches.

The period before the flagship digital currency’s price crash at the beginning of 2018 demonstrates his theory, states economist Joost van de Burgt. He surmised that regardless of the positivity or negativity of the news, the more the number of Bitcoin searches increased, the more the currency gained.

“If the buzz is everywhere, it doesn’t matter exactly what the news is about… nobody wants to miss out and everybody’s trying to get a piece of it,” said van der Burgt.

The economist is not happy with suggested links to the Hyman Minksy theory in which Minsky postulates that an economic bubble goes through five discrete phases; a theory much bandied about during the last global financial crisis. Minsky suggests that the levels of major financial instability follow a displacement, boom, euphoria, profit taking and panic pattern.

Joost van der Burgt analyzed the correlation between Google searches for bitcoin and bitcoin's price.

 

The desire to not “miss out”, Minsky suggests is the euphoria stage of the pattern. Van de Burgt disagrees suggesting that Bitcoin’s fluctuation fortunes didn’t constitute a bubble, therefore … “It wasn’t really panic, it was more of a scare,” said the economist.

Van de Burgt suggest that a bubble, followed by a subsequent panic was most likely saved by the introduction of Bitcoin futures, which seems to be indicated by the graph showing little correlation after futures to his Google search theory, arguing “My take on it is that because of the introduction of futures, that might have deflated the bubble before it got to a level where it might burst completely.”

Van de Burgt doesn’t buy into the Minsky theory suggesting it may be a mischaracterization arguing,“Then again, maybe Bitcoin is different than anything we have seen before, and maybe a decade from now its market capitalization will be sky-high as it attains the status of a new global currency.”

The researcher found no Google search correlation with the price of gold and other assets.

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Blockchain Created Over Coffee and Apple Pie in a New Jersey Diner

The Fintech world is now taking blockchain for granted, but the seeds were sown before the Satoshi Bitcoin phenomenon, originating in a New Jersey restaurant in 1990

Amy Whittaker writing for the New York Times delved deep and came up with blockchain’s fascinating origins, and events which almost took place 20 years before the release of Nakamoto’s “Bitcoin: A Peer-to-Peer Electronic Cash System.”

Whittaker’s research takes the reader back three decades to a Friendly’s chain restaurant in Morristown, New Jersey. Physicist Scott Stornetta and his friend cryptographer Stuart Haber had been considering the possibility of working on a system that could transform personal files into an accurate historical and tamperproof record.

The encryption technology which has made blockchain and cryptocurrencies possible has, and will, revolutionize the way money is perceived and used, taking financial systems into uncharted territory in the near future. At the restaurant Stornetta on that day made the connection, realizing that a workable, tamper-proof system would need to share multiple copies rather than be stored with a central recorder, thereby making alteration and interference virtually impossible.

From there the concept of a decentralized record or ledger-a blockchain-was born. The pair had been working at Bellcore at this time but decided to delve into Stornetta’s idea of a decentralized ledger filing system

In 1991 they published their paper “How to Time-Stamp a Digital Document” which basically outlined much of the theories of blockchain which are now well established. The pair published more papers on blockchain and were also named co-inventors of the Bellcore patent, before then moving on to setting up Surety, which linked any piece of information, a contract, into a block of transactions; thus a complete blockchain picture was created.

Despite both cryptographers staying on a few years, four years before Bitcoin arrived on the scene in 2004 the Surety patent lapsed after non-payment of maintenance fees. Haber seems nonplussed at the dizzy heights their ideas finally reached further down the track:

“It was an interesting little paper that turned into a company—which I didn’t expect—and then I went back to being a research scientist.”

Stornetta says that Surety’s connection to Bitcoin is “pretty cool” and that he could have happily contributed any forthcoming royalties to blockchain development had they continued with their work. Stornetta eventually went back to teaching maths at High School.

When “Bitcoin: A Peer-to-Peer Electronic Cash System.” was released in 2008 outlining the concept of peer to peer payments system which would bypass financial institutions, eight citations of previous works were included; three of those were papers by Haber and Stornetta.

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Investigative Report Finds Petro Not Backed by Oil, It’s Untradeable

Venezuela has adopted the Petro as their national cryptocurrency and pegged its value of their new fiat currency, the Sovereign Bolivar. Each Petro is supposed to be backed by a barrel of oil, and if this was true the Venezuelan Bolivar would be backed by oil which would make it stable and end the hyperinflation crisis. However, a Reuters investigation finds that the Petro is backed by nothing, in addition to being impossible to trade.

Venezuela says the Petro is backed by 5.3 billion barrels of oil in a reserve near the town of Atapirire. While these reserves might exist theoretically, Reuters investigated on the ground and found that there is practically no oil infrastructure besides some abandoned test wells. Locals report that the government is not making any efforts to tap the oil in the ground in the region and that there are more viable oil reserves elsewhere in Venezuela that would be mined before Atapirire. It is apparently hard to even locate where these supposed oil reserves are, and it will take further surveys to pinpoint the reserves. Essentially this means the Petro is backed by oil that probably won’t be extracted for years, and therefore the Petro is backed by nothing.

It gets worse, Reuters investigated the digital trail of the Petro, and found little evidence of its use or even existence. Apparently, the best evidence for the existence of the Petro is an initial coin offering (ICO) conducted through the NEM platform. A NEM account that claims to be owned by the Venezuelan government created 84.2 million Petro, and only 2,300 of these were actually sold, equaling about USD 150,000. The government says Petro raised USD 3.3 billion in its ICO, which would have been true if all of these tokens were sold, but the data shows the demand was minuscule and Venezuela was not able to sell most Petro tokens.

Some users on Bitcointalk say they successfully purchased Petro during this ICO, but can’t use these tokens since the Petro isn’t traded anywhere. One user says the Petro ICO is a scam, another user blames the United States government for making the Petro illegal. Regardless, the Petro is completely untradeable since it is not accepted on any exchange in the world. Coinsecure was supposed to develop Petro’s trading infrastructure but got hacked into oblivion shortly after they began working with the Venezuelan government. Venezuela launched 16 crypto exchanges, most of them were unreachable, but Reuters talked to at least one of them and found that they don’t offer Petro trading.

Another NEM account claiming to be from the Venezuelan government issued 13 million tokens in a 2nd phase of the ICO aimed at big investors, which would be USD 850 million, but Reuters found no evidence to support that any big investors actually purchased Petro.

Aside from that, there is zero evidence that the Petro is available in Venezuela. The Venezuelan Blockchain Observatory confirms that the Petro is not a functioning cryptocurrency. The NEM tokens are supposed to be exchanged for actual Petro once the Petro blockchain launched, but it appears Petro’s blockchain technology is yet to be released and is not fully developed. It seems really crazy, for a lack of a better word, that Venezuela has pegged the Bolivar to a cryptocurrency that doesn’t exist yet.

To make a long tale of controversy and intrigue short, evidence suggests the Petro isn’t backed by anything and isn’t even a live cryptocurrency, at best it might be launched in the future and still won’t be backed by oil. This makes Petro equivalent to an ICO scam, and makes the United States’ decision to make Petro illegal very appropriate. Effectively, this means the Sovereign Bolivar is backed by nothing, and hyperinflation in Venezuela will continue to accelerate.

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Dogecoin Rallies 80% as Dogethereum Is Announced

Dogecoin, a popular alternative cryptocurrency from the early days of crypto is finding new life during August 2018. Dogecoin has rallied from USD 0.0023 on 26 August to USD 0.0042 on 31 August, a massive 83% increase. This has mooned its CoinMarketCap ranking, it now sits at #23 with a market cap of USD 481 million, after being somewhere around #35 less than a week ago.

There are a couple of major developments in the Dogecoin world that is probably causing this rally. A partnership between Dogecoin and Ethereum has been announced, and this is being called Dogethereum. The developers of Dogecoin are creating Dogethereum with an Ethereum ERC-20 smart contract. Everyone who held Dogecoin at the time Dogethereum was launched will be rewarded the new crypto at the ratio 10,000 Dogecoins per Dogethereum.

It seems like Dogethereum has all the capabilities of Ethereum via smart contracts, the difference being it has the Dogecoin brand, and Dogecoin users will have an incentive to use Dogethereum because they are rewarded free Dogethereum. This could lead to the rise of a full spectrum of Dogecoin dApps, which has the potential to re-invigorate the Dogecoin community. The Dogecoin community has been active and healthy since the beginning of Dogecoin, and it is likely many people will jump on this opportunity to create Dogecoin dApps.

Additionally, Dogecoin has been listed on Robinhood as of July 2018, which is a popular stock trading app that began listing cryptocurrencies in the past year. Robinhood provides zero fee crypto trading, and therefore people will now be able to trade Dogecoin at no fee. This has the potential to increase Dogecoin’s market liquidity and demand, which may be exactly what we are seeing right now with this major Dogecoin rally.

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Superstar Rapper Eminem References Bitcoin in New Album ‘Kamikaze’

Rap superstar and legend Eminem has referenced Bitcoin in his new album ‘”Kamikaze’s” song “Not Alike”. The specific lyrics are “Remember everybody used to bite nickel, now everybody doin’ Bitcoin”. This is probably the first time a celebrity musician of such high status and caliber as Eminem has referenced Bitcoin.

These lyrics might be a reference to how everybody used to use fiat currency, since the nickel is a USD 0.05 coin, and now they’re using Bitcoin. While the lyrics are simple, it is quite prophetic and in agreement with expert crypto analysts who think Bitcoin will replace fiat currencies. This is because Bitcoin, unlike USD and other fiat currencies is decentralized, and not prone to money printing or other abuse by centralized organizations in order to make money and balance a budget. Also, Bitcoin transactions are instant and incur low fees especially when sending large amounts. Further, the digital currency is cryptographically secure, making it better than fiat for international finance.

A search of Urban Dictionary did have a result for nickel biter, it supposedly means someone who bites the nickels wealthy people drop on the sidewalks. If Eminem is using this definition, he is saying people who used to be poor are now coming up in the world and are using Bitcoin, since Bitcoin is now considered a sign of prosperity and wealth, especially after the rally to USD 20,000 this past year.

Eminem has 21.8 million Twitter followers, about half as many as the President of the United States, and has sold 47.4 million albums, 107.5 million singles, and 220 million records worldwide. Although this reference to Bitcoin was brief and buried in a long rap song, there is a high likelihood that millions of people will hear it, which could lead to increased Bitcoin adoption. Eminem listeners who aren’t already using Bitcoin might start to research Bitcoin after hearing about it from their favorite rapper.

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PR: Aidos Kuneen Unveils Most Crypto-Friendly Banking Network

Bitcoin Press Release: As the options to meet cryptocurrency exchanges’ banking needs are shrinking, Aidos Kuneen is offering crypto users the opportunity to park their wealth in a trustless network with easy access to fiat via banks.

August 27th, 2018. Madrid, Spain. With ADK, an open source project that focuses on privacy, decentralization and scalability, and a network of two African banks and one in Europe, the secure, private and untraceable solution to the problem of a lack of financial privacy can process crypto to fiat transactions in seconds.

ADK Growing as Planned

ADK founder, Ricardo Badoer, now owns 16% shares in Sumac Bank in Kenya and 23% in a Tanzanian bank (official announcement coming soon) and hope to launch an EU-based bank within five months. Badoer is on the board of directors of these banks which seek to create the most crypto-friendly banking network as well as offer remote bank account opening.

“Our goal from the start has been to offer a full working tech like ADK and have it connected to a fully working banking system,” says Badoer who has had more than 16 years of experience in the offshore banking sector. “We feel offering a trustless tech like ADK that is fully connected with a banking network is something that is missing in the crypto world.”

By having its own EU banking, ADK holders will be able to have personal IBAN accounts and be able to exchange their ADK to Euro and vice versa. Each account holder will also have a free debit card connected to their bank account.

Gaming firm Monster Byte Inc. also partnered with ADK to leverage its ecosystem which features a fully scalable, decentralized, anonymous and quantum secure system for transfer of value with zero fees. Monster Byte has since launched their own exchange Nessie with ADK listed on the platform.

Badoer adds:

“The crypto world is broken. It is not regulated. Though some of the “products” (e.g. coins / tokens) are OK, the whole ICO system and the exchange which is the most important infrastructure in the ecosystem are very bad. The crypto world today is a landscape filled with scammers, fan boys and exchange admins that just want to fill their pockets to list any coin that is willing to pay. I am the only person in the crypto space at the moment that is transparent. I have been audited by two central banks and will soon be audited by a third.”

At the detriment of users’ transaction data which is prone to leaks and improper use, Aidos enables users to spend their cryptos freely without any fear of being tracked or tainted.

About Aidos

Aidos is an open source and Quantum secure platform which features zero fee on transactions and is scalable without blocks. Its transaction system is based on a directed mesh with I2P as underlying network layer that protects its users’ identities from being revealed. Its AKshuffle keeps users anonymous and transactions 100% invisible and untraceable. The platform is backed by the Aidos Foundation. Aidos was founded by Ricardo Badoer in 2017. Badoer has more than 16 years working experience in finance, offshore banking and more than 8 years in digital currency trading.

Visit the website: http://aidoskuneen.com/
ADK Github: https://t.co/zWudEswsg5
ADK Whitepaper: www.github.com/AidosKuneen/whitepaper/releases
AidosMarketWatch: mw.adk.uno
Follow on Twitter: https://twitter.com/Aidos_kuneen

Media Contact
Name: Ricardo Badoer
Email: info@aidoskuneen.com

Aidos Kuneen is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. Token sales are only suitable for individuals with a high risk tolerance. Only participate in a token event with what you can afford to lose.

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Satis Group Issues Crypto Forecast, Expects $3.6 Trillion Market Cap by 2028

Satis Group has released an in-depth forecast of the crypto market through 2028, expecting that the total crypto market cap will rise significantly year over year and hit USD 3.6 trillion by 2028. By that year, it expects Bitcoin will be the top cryptocurrency with a price of USD 144,000, Monero second with a price of USD 40,000, and Dash third at USD 3,000. On the other hand, Satis Group expects Ripple, Ethereum, and Bitcoin Cash to be quite insignificant by the time 2028 rolls around.

The ICO advisory expects the total crypto market cap to first exceed USD 1 trillion by 2021, USD 2 trillion by 2024, and USD 3 trillion by 2027. There is a strong uptrend all the way up to the end of the forecast in 2028, when the crypto market cap hits USD 3.6 trillion, suggesting Satis Group expects crypto to rise far into the future. This is in agreement with crypto experts who think Bitcoin and other cryptos will eventually replace fiat currency as the dominant global currency.

Satis Group says that penetration of offshore capital will be the main thing driving the crypto markets, which makes privacy coins like Monero the best bet for the biggest gains long term. Monero is sitting at USD 109 as of this writing on 31 August 2018, but Satis is saying it will rally to USD 1,500 in the next year, and that will be just the beginning of a prolific rally that will bring Monero to USD 40,000 by 2028. This is because the privacy-centric cryptocurrency will be an excellent way to transact and store crypto while dodging government regulations.

Bitcoin will reign as king according to Satis Group, hitting USD 33,000 in the next year, breaching USD 100,000 in five years and USD 144,000 by the end of the forecast in 2028. Regarding Bitcoin, Satis Group says, “Despite a lack of appeal during retail frenzies, we continue to believe that BTC and its network effect will dominate end-market share within currencies and the overall cryptoasset market, driven by: 1) increasing liquidity and purchasing avenues, 2) increasing brand recognition, 3) its position as the default base-pair within the crypto markets, 4) declining relative volatility, 5) relative lack of attack vectors, 6) network capacity alleviation through the maturity of layer-2 solutions, and 7) an increasingly high attack and overthrow cost”.

Other currencies that stand to gain long term are Litecoin and Dash, although their market share compared to Bitcoin and Monero will be small. Perhaps surprisingly, Satis Group says the current top-ranked altcoin, Ethereum, will struggle long term and only be worth USD 600 in 2028. This is because Satis Group thinks penetration of offshore capital will drive the crypto markets, not Dapp usage.

According to Satis Group, cryptocurrencies that are imitations and don’t offer any real technological advantages, like Bitcoin Cash, won’t grow long term. It says that in 2028, Bitcoin Cash will be worth USD 180 at the same time Bitcoin is worth USD 144,000.

Additionally, Satis Group thinks Ripple is centralized and misleading since it’s not even required to use the Ripple network, and they expect its price to decline to USD 0.004 by 2028, from USD 0.334 currently. The group actually says Ripple will crash 90% and EOS to experience a violent 99% crash in the next year, likely due to centralization issues.

 

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Bitcoin Custodians with $12 Billion Assets Secures Lloyds Insurance

Lloyds of London, the world’s leading insurance market providing specialist insurance services to businesses in over 200 countries and territories, has moved into underwriting crypto with a new account through its business syndication.

UK underwriter Lloyds, which was established in 1765 when button maker John Taylor and iron dealer Samson Lloyd first set up a business together, has added another page to its long history through its connection with South Dakota registered Kingdom Trust, a company which provides customized and innovative digital currency custody solutions for institutional clients.

The trend is clearly changing with more insurers considering providing services to cover custodied digital assets, with AIG, XL Catlin, Chubb and Mitsui Sumitomo Insurance all looking at this insurance sector as cryptocurrency grows in stature and popularity.

Until now insurance companies have very much stood back from the industry and some have not disclosed whether they are actually covering institutional assets such as cryptocurrency, due to the risk of compromised client accounts due to fraud and technical errors. Despite such risks, the sector is opening up.

“Insurance for cryptocurrency storage will be a big opportunity,” said Christian Weishuber, a spokesman for Allianz, who offer individual coverage for digital-coin theft. “Digital assets are becoming more relevant, important and prevalent on the real economy and we are exploring product and coverage options in this area.”

Its reported that Kingdom Trust, who has USD 12 billion in assets, secured the account due to the company’s cold storage protocol with the client’s digital currency stored offline. The broker who secured the account, Illinois-based Safe Deposit Box Insurance Coverage (SDBIC), says that Kingdom Trust’s level of security earned them a “drastic discount”.

SDBIC president Jerry Pluard suggests that Lloyds are comfortable with the direction it is moving in with this account and that more syndicates are looking at crypto. He commented:

“About ten syndicates in Lloyds have indicated a willingness and are somewhat active in evaluating crypto exposures… Of those ten, I would say there are five that have the level of expertise that allows them to be comfortable enough to do the analysis and underwriting of the risk, and then the other five will follow on with those leads in writing exposure.”

Kingdom trust reportedly stores 30 different digital assets including Bitcoin, Ethereum, Litecoin, Ripple and ZCash.

 

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