News of News For Bears and Bulls

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The first working day of the new year has seen bitcoin top $4,000 after a number of cryptos showed some bullishness recently.

Litecoin was the latest one to jump 10% yesterday after their copy pasta of bitcoin’s Lightning Network reached 100 nodes.

Ethereum had doubled in the meantime, jumping a bit yesterday to $160 alongside bitcoin. It gave the gains, however, to stay at just above $150.

That number gave bulls significant resistance. Now it may have become support ahead of eth’s next week upgrade where new issuance is to be reduced by 33%.

It remains to be seen what effect that will have on markets. While some might expect an instant reaction, it may be a more drawn out affair as the reduced new issuance is slowly felt in line with supply and demand.

The biggest demand factor in the foreseeable near future might be staking. 32 eth has now become a goal for many. At these prices, achievable for most of them too.

What might be harder to achieve is a crypto ETF. Japan’s central bank apparently owns 75% of Japans $335 billion ETF market. If a crypto one is greenlighted in Tokyo, that may well mean their central bank will buy some bitcorn.

Japan’s “Financial Services Agency is currently gauging industry interest in ETFs tracking digital currencies, according to a person familiar with the agency’s thinking who requested anonymity discussing private plans,” says Bloomberg.

That would open Asia’s pension markets after Japan apparently did not green-light futures. A company formerly known as Coinfloor, however, now called CoinFLEX, will start offering physically settled bitcoin futures to Asia’s markets.

In Italy, they’ve set-up a blockchain advisory board of 30 members. The grassroots M5S is quite fond of this space, with crypto tech there generally seen as an innovative advancement.

Today, on the 10th anniversary of the launch of Bitcoin, a project called Beam has launched promising to make cryptocurrency transactions drastically more confidential. 

Beam will become the first live implementation of ‘Mimblewimble,’ a heavily anticipated new blockchain protocol which was proposed anonymously in a whitepaper back in 2016 – in the same spirit as the Bitcoin whitepaper published anonymously 10 years earlier.  

Mimblewimble looks to make crypto transactions drastically more confidential than Bitcoin and Ethereum, which have been shown to be easily traceable with ‘blockchain forensics.’”

So we’re told. This was something proposed for bitcoin back when as a scaling method, but bitcoin has now become a sort of museum piece on the innovation front. So it looks like they’ve gone off to their own network.

With Zcash, Monero, and ethereans turning both into a smart contract, it’s not clear how rimblediimble can compete on the privacy front. No harm in trying tho, competition can only be good for end-users.

Ahh. A Trustnodes reader lifted us a bit by sending us a poem. We’ve published many of our own, of course, never considering that they might inspire others:

“Olives to oil
Wheat to bread
Grapes to wine
We are all children of god
May peace reign
Though the journey took time
Dark to light”

Far too nice. Off now to NEO, which is apparently to have a Devcon on February 16th-17th in Seattle where there will be 40 speakers, 30 projects, 20 exhibits and more than 600 attendees.

“NEO is working hard to develop the smart economy of tomorrow, so it’s fitting that we’re heading to Seattle, the home of Microsoft and some of the biggest technology businesses operating today,” Erik Zhang, Founder of NEO said.

They’ve grown up you see. Even small coins now have their own Devcon. Token projects like Status have their own hackathon. While eth’s ConsenSys now presumably hired AMD to build hardware.

Quite a different time from when it was just one bitcoin in 2013 and when the prime focus was getting it accepted by merchants.

More than 100,000 of them did so, but bitcoin itself was always a centralized point of failure. The github, afterall, has only one owner.

With so many cryptos now, and so many shades of just bitcoin, the most they can do is a banking blockade of exchanges as in China.

That has semi failed for PBoC, but the aim might not quite be to shut it all down, because they can’t. The aim might instead be to delay. Perhaps rightly.

There would be considerable implications if a crypto was widely accepted like cash. The bearer asset might easily place the holder under the mercy of violence, for example.

That can apply to many other things, with detectives one of the main reason why we pay taxes. Yet there’s a commons problem here in as far as no one has an incentive to freely give away templates or designs that at a mechanical level make theft close to not worth it, primarily because there might be plenty of money to be made were the solution to be offered through an intermediary.

This is all code, so in a cat and mouse game one can easily have a system whereby you can send the coins with one key and then you can reverse the transaction with another key.

When a robber comes, thus, you fully oblige as is quite rational. As soon as they left you utilize the other key. Increasing perhaps to unbearable levels any robbery risks.

The other option is chopping up the key, making a robbery close to impossible. In a situation of kidnapping, however, the reversible key trick can be very sweet.

Heavy the subject, but the point of it is to illustrate some real potential problems and some real solutions. It further aims to highlight the fact that certain dogmas (no chargeback) can be harmful to this space.

As this space moves further towards usefulness and its many complexities, so too it needs to address the challenges. The primary one for now is scalability, but usability is also quite an important one.

The latter however is necessarily incremental because there are many edge cases or semi edge cases that have to be gradually addressed as they rise.

It may thus be quite romantic to think there is some sort of organized adversary that wants to slow down this space, but the reality might be that it is actually reality itself doing so.

In its foundations, cryptos are little more than an alternative to a soviet style Fed that changes monetary policy as it pleases without any consultation from the market.

That Fed here is reduced to code, but that code can of course be changed. More correctly, thus, that Fed in this space is reduced to just another choice. Meaning cryptos have to compete and they have to be better. They have to satisfy the market more than the maestro, in some ways at least.

Copyrights Trustnodes.com 

 

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