Bitcoin - What is, Buy, Sell - Techzim Zimbabwe and ...
Bitcoin - What is, Buy, Sell - Techzim Zimbabwe and ...
Part 2 Zimbabwe: Living in a Multi-Currency World ...
Hyperinflation and Currency Collapse Fears ... - Bitcoin News
Zimbabwe currency collapse... again. Bitcoin in demand ...
Zimbabwe Finally Decides to Regulate Cryptocurrency ...
EMJAC tire recycling project chooses ExMarkets as IEO partner
Constant worries regarding climate change are forcing society to make a harder look at what human beings are doing to the Earth as a species. In the regions with higher levels of economic and social developments winds of sustainable living and environmental care are taking the lead. Responsible thinking is also opening a niche for startups and enterprises. There are real business cases out there that can help us make our surroundings cleaner, safer and more pleasant. Today, we are glad to announce that one such project is going to appear on ExMarkets for an Initial Exchange Offering and exchange listing afterward. Guys, meet EMJAC — the World’s 1st green energy DLT project. EMJAC is building a digital architecture to help the word to efficiently convert waste into renewable energy. EMJAC’s digital platform will be based on latest blockchain technology to manage, account and eventually reduce illegal tire dumping through blockchain based traceability solution. The long-term result will generate clean energy, reduce tire waste and hazards associated with it. EMJAC IEO will run for the full month of August starting on the 1st at 12 AM GMT and ending on the 31st. “We want the world population to join EMJAC to recycle and empower Blockchain towards a sustainable future” — commented Mr. Meng Kwan CEO, founder and CEO of EMJAC. Project supporters and ExMarkets users will be able to acquire EMJAC’s native tokens — EMJ in exchange for Bitcoin, Ethereum, Euros or USDC stable coin. Token price will start at $0.08 and will gradually increase approaching the end of the sale. Naturally, it makes more economic sense to contribute early and buy at the lowest price possible. Should you still need an account at ExMarkets, visit https://exmarkets.com/register and sign up immediately — we promise it won’t take longer than 3 minutes of your time. EMJAC project from up close The common way how fuel is generated is through the combustion process of raw materials. A similar process is employed when manufacturing tires. The good news is that Meng Kwan and Chu Wong discovered a decentralized system that facilitates the impact of favorable dimensions for the recycling and energy waste industries. According to the EMJAC team, the architecture of the platform will be fueled by EMJ token which will grant users access and rights to monitor the movement of the whole waste recycling process, buy, sell and exchange generated energy into EMJAC native tokens. The process is delightfully called TRU — Advanced ContinuousThermal Recovery Unit. TRU is a sustainable disintegration procedure that actually recycles 100% of waste tires without spewing any of the harmful gases or emissions and helps to directly reduce the carbon footprint. TRU is the ultimate solution to the global redundant tire recycling problem. It is constructed to achieve multiple objectives, all oriented towards increasing the efficiency of waste management and recycling sector, especially the used tire section. How does it work? TRU technology can be called the reverse engineering of tire waste. The anti-manufacturing removes sulfur from tires to recover raw material and transforms into its components: Euro 2 synthetic diesel, black carbon, steel wire, and synthetic gas. Various sources calculate that there are over 2 billion tires that are categorized as waste per year and is projected to keep growing and reach 2.3 billion as early as 2023. What’s even more surprising is the fact, that there are capabilities to recycle only 30% of them. It suggests that there’s a true need in society to do so and validates EMJAC’s business case. Especially when they are achieving this in a completely green and sustainable manner. What is also not the least bit less important is that EMJAC has been in close contact with the Malaysian Department of Environment and other agencies besides having established partners in other regions of the world, namely Asia, Europe, and the United States. To find out more about EMJAC’s work, recycling centers, and the EMJ coin, view the official explanatory video or skim through the whitepaper. Tokensale Fundamentals Ticker: EMJ; Price: $0.08 in Round I | $0.11 in Round II | $0.18 in Round III; Bonus: No; KYC: Yes; Restricted countries: USA, AFGHANISTAN, BURUNDI, CANADA, MYANMAR, COTE D’IVOIRE, CUBA, DEMOCRATIC REPUBLIC OF CONGO, DEMOCRATIC PEOPLES’ REPUBLIC OF KOREA, NEW ZEALAND, ICELAND, IRAN, IRAQ, LIBERIA, LEBANON, LIBYA, RWANDA, SIERRA LEONE, SINGAPORE, SOMALIA, SUDAN, SYRIA, THAILAND, TANZANIA, UGANDA, ZAIRE, ZIMBABWE AND COUNTRIES OR TERRITORIES OR INDIVIDUALS UNDER THE SANCTIONS OF THE UNITED NATIONS OR SINGAPORE OR COUNTRIES WHERE CRYPTOCURRENCY IS PROHIBITED Token total supply: 500,000,000 EMJ; Available for sale: 350,000,000 EMJ; Softcap/Hardcap: $8,000,000 USD/ $35,000,000; Accepted currencies: BTC, ETH, EUR, USDC; Blockchain: Ethereum (ERC20). “EMJAC just has a great case if you take the time to think about it. There are billions of tires out there just lying around that everyone wants to get rid of but can’t burn them without causing significant pollution. The statistics indicate that the amount is only going to increase in the foreseeable future. EMJAC’s TRU process does just that and decomposes waste into raw materials that can be monetized. It’s a benefit to all” — commented D. Sharkey, the head of sales at ExMarkets and CoinStruction. Anyone with some common sense and a pinch of awareness for the environment shouldn’t find it hard to understand the position EMJAC is in. It looks like a premium deal and you should definitely get in on it! We’re delighted that ExMarkets IEO LaunchPad will host the IEO sale. Take your chance to sign up now and get ready for the action! See you when the IEO starts! Don’t miss it and stay tuned by joining ExMarkets Telegram channel!
ABOUT THE AUTHOR
ExMarkets is a digital asset exchange platform powered by the state-of-the-art trading engine developed in-house. On the exchange, ExMarkets users can trade the most popular cryptocurrencies as well as gain the chance to participate in the token sales of the most promising blockchain and crypto projects through ExMarkets Initial Exchange Offering (IEO) LaunchPad. Fairly recently ExMarkets was granted 2 operational licenses for crypto-fiat gateway and custodian service provision by the Estonian regulator making it one of a few certified players in the market. It takes only a few minutes to set up your account and users are allowed to make deposits in Bitcoin, Ethereum, other supported cryptocurrencies, tokens, and most importantly Euros. To top it all off, ExMarkets is a part of the CoinStruction liquidity framework which is aggregating order-books from the most well-known cryptocurrency exchanges guaranteeing 24/7 crypto liquidity — a feature which can seldom be seen in the current market. All IT solutions and technology of ExMarkets and CoinStruction’s services are developed in-house guaranteeing that all security threats and third-party associated risks are kept at minimum levels throughout all stages of product deployment. Trade. Master. Profit. ExMarkets.
Trouble is, these crypto skeptics ignore the actual, on-the-ground consequences of such “bans” and how easily they can backfire. Let’s take a quick round-the-world tour, and I’ll show you exactly what I mean. And yes, we can start in Beijing. Back in 2017, the Chinese authorities didn’t pussyfoot around. They went straight for the jugular — the cryptocurrency exchanges. That made sense, or so they thought. Exchanges are formal companies that need to be compliant with the regulatory framework of the countries where they operate. But here’s the big all-important factoid that Beijing seems to have missed: For a population to adopt cryptocurrencies, they don’t need exchanges. https://preview.redd.it/286kb3e063x31.jpg?width=496&format=pjpg&auto=webp&s=1c0d94b90b9d8bab7d22f18f88d265d5e05e6a36 Are exchanges convenient? Yes. A dire necessity? No In fact, as I’ll explain in a moment, they are just one of the ways you can exchange your government-sponsored fiat money into cryptocurrency. Then, once you’ve completed that initial trade, you’re up in crypto-space. You can teleport your money anywhere you want. Your transactions are almost entirely outside the regulatory reach of any country on Earth. This doesn’t mean cryptocurrencies live in a Martian No Man’s Land. They do follow a set of bylaws. The difference is, they’re not the edicts or directives by any central authority. Instead … The only rules that apply to a public distributed ledger are the rules of consensus that exist within its network. Nothing else. In the parlance of the U.S. Securities and Exchange Commission or Commodity Futures Trading Commission, you might say that cryptocurrency networks are intensely rigorous — but amorphous — self-regulatory organizations. So, what was the net effect of the so-called “China ban” on cryptocurrencies? Beijing was unable to outlaw the possession of crypto assets; it’s almost impossible to even track down who owns what where. They understood this. So, they didn’t even try. Reason: By their very design, cryptocurrency networks are anonymous. Or, they’re at least pseudonymous. In other words, although each account and the amount held is public information, it’s not possible to directly tie the ownership of these accounts to any one individual. Meanwhile, despite the “ban,” China has turned bullish on blockchain. Last week, President Xi Jinping declared that China must “seize the opportunity” created by blockchain, and that it will play “an important role in the next round of technological innovation and industrial transformation.” And this week, China’s Communist Party is taking a series of steps to follow through. It underscores the reality that Chinese citizens are still very active trading crypto assets, despite the fact that the “ban” has been in force for over two years. This is not to say that banning exchanges has no effect whatsoever. Though said effect is limited. If established exchanges are not available, people simply move to specialized social media sites and similar applications. Consider websites like LocalBitcoins.com, a peer-to-peer trading marketplace, for example. These sites provide a framework to ...
Agree on terms and ...
Reduce the risk that either side will run off with the money.
In areas where cryptocurrency trading is officially “banned,” these kinds of platforms merely transform into de-facto over-the-counter (OTC) exchanges. To put it simply: So far, the only significant effect of crypto bans has been to drive some traders toOTC(over-the-counter) trading platforms. And it’s not just China. Similar crypto bans in countries like Venezuela and Zimbabwe have accomplished little beyond making these platforms that much more popular. Can governments shut down these as well? That would very difficult. The parties meet anywhere — at a café, outside a bank, on a park bench. They agree to the terms. The fiat portion of the trade is carried out. And once the buyer has transferred the fiat via bank transfer (or even in cash), the seller releases the crypto. Plus, for additional safety, both the fiat and the crypto can be locked in an escrow account under a smart contract.
Where crypto trading is literally on the street
Does it work? Absolutely! I know because I’ve personally done these over-the-counter trades. My experience isn’t from a place where crypto is banned, but rather with a government that’s on the brink of default. As the authorities struggle to make ends meet and keep the lights on, they resort to draconian measures. That takes us to the next stop on our tour: Argentina, where the government has imposed a whopping 33% tax on international transactions. Think about that. It means that every time you want to use the banking system to get your money out of the country, the government takes nearly a one-third cut. Maybe you want to make an online purchase of an airline ticket from a foreign carrier. Or perhaps you just want to buy the latest smartphone not yet offered in local stores. It doesn’t matter. If the money leaves Argentina, you pay the tax. Or, consider the plight of businesspeople … My father, for example, does business with companies based in Argentina. Whenever he brings the money home, the one-third tax is the equivalent of a massive confiscation. All with practically zero hope it will end anytime soon! For him, the only chance to get his money out of the country is to get some Bitcoin. So to give him a hand, I went to Argentina to see how hard it would be to locate someone trading pesos for Bitcoin. As it turned out, not only did I find individuals, but I also found local dealers. “If you want to buy Bitcoin,” said one, “you pay us 15% over market. If you want to sell, we pay you at least 10% over market.” I did even better than the 10%. Bitcoin was selling for about USD 6,000 at the time, and I got between USD 6,800 and USD 7,000. The people I dealt with told me they’d buy as much crypto as I could lay my hands on. The crypto dealers’ business model makes a lot of sense, and it’s in big demand. They have high-net-worth clients looking to get their money out of the country. In big amounts and FAST. So, the dealers keep a healthy stash of cryptocurrency on hand, offering their customers the ability to get their money out of the country while bypassing the banking system. Instead of paying the government’s outrageous 33% tax, the customers are glad to pay the dealer his 15%. This a big change from the capital-control powers governments used to have just a few years ago! Back then, when countries imposed capital controls, they could ban black-market dealers and throw them in jail. Businesspeople would dress like hippies, stuff their backpacks with currency and try walking across the border. But border agents caught them frequently, and the controls were often effective. Not now! Not in the crypto age! The flight to Bitcoin in Argentina is the same thing that’s happening in nearly every country that has tried to impose currency controls. Argentina’s national currency is down 50% against the greenback just in the past year. And now, the same folks who helped cause the crisis have just been voted back into office. So, no matter what governments do or don’t do, you can see why crypto assets like Bitcoin are the only chance citizens in these countries have to protect their wealth. At the end of the day, what do governments accomplish with bans or draconian controls? They help to increase awareness of cryptocurrencies. They’re making crypto more popular.
Risks and advantages of fiat money over gold and cryptocurrencies
Why do people seem to trust fiat currencies so much, despite being nothing but pieces of paper? Because state authorities guarantee that his paper is real money that you can store, exchange, or use to pay for goods and services. We believe that it's nothing but a force of habit. It's been too long since the last crisis that would really devalue the currency of a major country. Of course, we remember that inflation in Germany reached millions of percent after the First World War — but this happened long ago. Of course, we know that the currency of Zimbabwe was recently devalued by a factor of millions – but it's a state that’s been ruled by a dictator until recently. And yes, we see that Venezuela – another authoritarian state – is going through hyperinflation right now. But all this happened or is happening in autocratic countries and can't possibly happen in a civilized state – this is the mantra that we repeat to ourselves. A short historical overview Fiat paper money has only emerged recently. For thousands of years, people used all kinds of items and goods as a means of payment – cowrie shells, gold, copper, bronze, spices, and so on. If at some point, a certain item became too plentiful, its price would fall, and you could therefore get fewer other goods in exchange for it – and vice versa. With time, people realized that paying in cowrie shells, metal bars, or something that could go bad or moldy was too complicated and costly. As with many other issues, it was the ancient Romans who decided to solve the problem once and for all. Every new emperor or dictator made sure to mint coins with their face on them. If there wasn't enough fresh metal available, he would just take coins minted by his predecessor, melt them and make new ones. It's from that point onward that we can track the key problem of fiat money – its constant devaluation. For instance, in early 1st century AD, Romans used denarius – a coin made of pure silver. Just 40 years later, during the reign of Nero, a denarius contained only 94% of silver – and by the end of the century, its silver content fell to 85%. What was the reason? Nero and his successors used this trick to pay less to their creditors. In 2nd century AD, there was less than 50% of silver left in a denarius. In 243, Emperor Philip the Arab reduced the silver content to just 0.05%. After the fall of the Roman Empire in the West, a denarius contained only 0.02% of silver. This way, over the course of roughly 200 years, the inflation of denarii reached several thousand percent. But if we study more recent examples – say, the real value of the US dollar or pound of sterling in the last 200 years – we'll see a similar picture. A forecast for the future Let's go back to the question we asked in the beginning of this article. Why do people trust fiat money? In the past 70 years, we haven't seen any major wars involving developed countries that could radically devalue their currencies. There haven't been any major natural disasters that could seriously damage the economy, either. Sure, such things keep happening in third-world countries, where currencies lose their value due to military coups, uncontrolled printing of new money, and so on. If you ask the population in those third-world countries that have been through hyperinflation how they feel about their fiat money, you'll find that their opinion is just the opposite of that shared by people in the West. That's why gold and jewelry are so popular in the Middle East, and that's why US dollars are in such demand in Latin America. Nobody wants to keep their savings in the local fiat currency – because its long-term stability cannot be guaranteed. Gold is a great way to store value, especially when fiat currency is devalued rapidly for no reason. Here's a simple example. Let's take country Z with a stable economy and equally stable fiat currency. Bob keeps his savings in a deposit account and earns a 5% annual interest. Alice uses her fiat savings to buy physical gold and then either buries it in her garden or stores it in a bank vault. A disaster strikes: a military coup, volcano eruption, flood – you name it. The fiat currency of Z loses most of its value in an instant. And if the government decides to print more money (to pay for disaster relief or as a populist measure), inflation can quickly reach astronomical heights. Bob's savings will be worth nothing – but Alice won't lose anything. If local fiat money is devalued by a factor of 100 relative to the US dollar, its exchange rate relative to gold will fall by a similar amount. Any educated person can understand this – but why are so few people actually buying gold to protect their savings? And why do the majority of people take their money to the bank, even though generations after generations have lost their bank deposits? There is only one issue with storing value in gold: buying it is complicated, costly, and sometimes dangerous. Here we'll cite just a few examples, although we could provide many more: - In many countries you have to pay a fixed tax or VAT when buying gold, ranging from 10% to 25%. This means you'll lose up to a quarter of your money at once. Not such a great investment, is it? - The spread between the buying and selling price of gold often reaches 10%; - Storing gold at home is risky; storing it in a bank vault means paying a fee and can still be dangerous; - In case of a military coup of natural disaster, if you need to exchange your gold for money, you can easily get killed. Modern-day Caracas is a good example: people are attacked even when they are suspected of carrying around as little as $100. Cryptocurrency to the rescue In the context of the issues described above, cryptocurrencies are a god-send for people in third-world countries. Crypto helps preserve the value of money and hide it in case of a crisis. The demand for Bitcoin among the middle class in Africa and Asia is several times higher than in Europe. Why do people prefer Bitcoin and show much less interest in other altcoins? Because the maximum number of Bitcoins is finite. Whatever happens in the world of fiat currencies, even if governments print dozens and hundreds of times more money, new Bitcoins will only enter the market through mining – and over 80% of the total have already been mined. Bitcoin doesn't belong to anyone. There is no organization or country that can control it. In the 10 years that have passed since its launch, nobody has managed to hack the system – while even the leading IT corporations regularly fall victim to hacker attacks. The only real problem is that most holders of fiat money and gold bars find it’s hard to accept Bitcoin's volatility. Indeed, if the BTC price has grown by a factor of 100 or 1000, it could theoretically fall by just as much, completely devaluing one's investment. Who would take such a risk? If only one could invest in digital gold that can't lose its value relative to fiat currencies and free from the risks and complexities of purchasing, storing and selling it that are inherent to physical gold. The future is already here DIGITAL GOLD is a company that has found a solution to the challenge of money storage. In summer 2019, it launched a new stablecoin which serves the purpose of Digital Gold. Now, investors seeking to protect their savings won't have to deal with the costs and dangers of buying physical gold. It's enough to purchase GOLD stablecoins, built on the popular ERC-20 standard. In less than a minute, any person anywhere on the globe can buy $10, $100, or $1000 worth of new digital gold. The tokens will be instantly sent to the buyer's wallet, and the only transaction fee will be the cost of gas. The risk factor is also low, granted that the greatest loss would be losing one's wallet credentials. Exchanging the digital gold back into fiat or another cryptocurrency takes just a minute as well, alongside the gas cost (usually a few cents). Why do we call GOLD stablecoins, digital gold? Because DIGITAL GOLD has pegged it directly to the price of gold at the ratio of 1 token = 1 gram of 99.99% gold. The new stablecoin features several key differences from previous projects that claimed to have gold-pegged tokens:
The number of issued GOLD tokens is equal to the amount of physical gold (in grams) owned by DIGITAL GOLD and stored in a constantly monitored secure vault belonging to BullionStar. Any investor can verify the amount of gold in the vault using the BullionStar audit system at any moment. A total of 7,200 tokens have already been issued, meaning that the company stores 7,200 grams of gold in the vault – a fact confirmed by the BullionStar audit.
New GOLD tokens will only be issued once a new batch of gold is deposited in the vault. For instance, the company might buy 5,000 grams and issue 5,000 new tokens.
DIGITAL GOLD guarantees full liquidity of its tokens. The company is ready to purchase any amount of GOLD through its official marketplace at https://gold.storage/market – at any moment and at a price that’s extremely close to the market price of gold.
If supply seriously exceeds demand, part of the gold can be sold in the commodities market, with a corresponding number of GOLD tokens taken out of circulation.
Venezuela on Brink of Civil War as Annual Inflation Nears One Million Percent on Cafe Con Leche Index; Crypto Blocked, Localbitcoins (BTC) Shut Down
https://preview.redd.it/jeehbqe1ffc21.png?width=690&format=png&auto=webp&s=8ba3a9797129d2ec4c9f0accc11e2830b58c7659 https://cryptoiq.co/venezuela-on-brink-of-civil-war-as-annual-inflation-nears-one-million-percent-on-cafe-con-leche-index-crypto-blocked-localbitcoins-btc-shut-down/ Localbitcoins Shutdown When Venezuelans Need Bitcoin The Most Volume on Localbitcoins in Venezuela hit a maximum of 5.3 billion Venezuelan Sovereign Bolivars (VES) traded per week in late December after exponentially increasing throughout 2018. This was due to a hyperinflation crisis in Venezuela, which has seen the price of a cup of coffee in Caracas increase from 0.45 VES to 800 VES in the past year. The annual inflation rate is 785,000 percent based on the past three months of data, and it’s ready to soar into the millions of percent. Bitcoin is being used as a safe haven currency in Venezuela, despite Bitcoin’s poor performance in 2018. Compared to the Venezuelan Sovereign Bolivar, Bitcoin is stable and a good store of value. Further, Bitcoin is cryptographically secure, making it much safer than holding cash. However, Venezuela has shutdown Localbitcoins, perhaps out of fear that the outflow of capital into Bitcoin was accelerating hyperinflation. After reaching peak volume on Dec. 22, Localbitcoins volume began to decline and was as low as 61.6 million VES for the week ending on Jan. 12. For the week ending on Jan. 19, there was zero volume. The shutdown of Localbitcoins perhaps makes it harder to obtain Bitcoin, but peer to peer Bitcoin dealing is likely continuing. That being said, the crackdown on Localbitcoins probably indicates that Venezuela is cracking down on Bitcoin dealers too, which would make peer to peer Bitcoin trading risky and far more expensive. Supposedly, Venezuela’s first Bitcoin ATM will be launching soon, but considering the Localbitcoins shutdown, it seems unlikely this Bitcoin ATM will last long. The only Bitcoin ATM in Zimbabwe, a country which dealt with hyperinflation and a currency collapse, is perhaps the historical precedent for what could happen to this Venezuelan Bitcoin ATM. The Zimbabwean Bitcoin ATM was shut down after a brief period of use. Likewise, the only Bitcoin ATM in India was seized by police. Venezuela On Brink Of Civil War The shutdown of Localbitcoins in Venezuela coincides with a rapid surge in civil unrest. Today opposition leader Juan Guaido declared himself interim President of Venezuela. President Donald Trump of the United States quickly recognized Guaido as the official president of Venezuela and has threatened to sanction oil exports from Venezuela this week. Simultaneously, Vice President of the United States Mike Pence said “Nicolas Maduro is a dictator with no legitimate claim to power. He has never won the presidency in a free and fair election, and has maintained his grip of power by imprisoning anyone who dares to oppose him… As you make your voices heard tomorrow, on behalf of the American people, we say to all the good people of Venezuela we are with you, we stand with you, and we will stay with you until democracy is restored and you reclaim your birthright of libertad.” Large amounts of protestors are taking the streets in Venezuela, and violent clashes are taking place between protestors and the national guard. Earlier this week, a small group of soldiers attempted an uprising against the government, which may have initiated the current wave of protests. Further, some of the military agrees with the opposition and thinks Maduro is officially a dictator after the recent election farce. Some Venezuelan troops in Peru have publicly declared that they do not recognize Maduro as their commander-in-chief and will support efforts to restore constitutional order. All signs are pointing to civil war in Venezuela. Crypto.IQ speculated on Dec. 6 that the “total collapse of the Bolivar will perhaps precipitate the collapse of the Venezuelan government since they will no longer be able to fund their activities via money printing, and perhaps eventually it will be clear that the Petro is a last ditch attempt by the Maduro regime to earn a warchest of cash and cryptocurrency for the struggle that is inevitably coming.” It appears this is exactly what is happening.
The consequences of Bitcoin adoption on fiscal and monetary policy
First off, I am happy to announce I will be moderating this sub with the others going forward. I've been giving this topic a lot of thought for a number of years, and having spent more time discussing it with makriath, I wanted to get these ideas down on "paper" for refinement. This seemed like a good place to do it. I'll keep it very short. As far as I can tell, there are 5 methods by which the government can raise capital for its expenditures:
Printing: The government uses its monopoly on force to create another monopoly for itself: the exclusive right to print new money.
Land Sales: This is the primary method by which countries like Hong Kong generate most of their revenue and how they are able to afford expensive, high-quality social programs while maintaining very low taxes while also running a surplus most years. Obviously, this isn't a long term solution ('long term' being a relative phrase, of course), since on a long enough timeline, the government will run out of land and real-estate to sell to private entities. Hong Kong is helped by the fact that property values never seem to dip (though that also seems unsustainable) and it owns a great deal of the land, so this may take a very long time before they need to dip more heavily into the other 4 sources of capital.
Business: The government starts a business with the hopes of running profits: see The US Postal Service; and I realize that the goal may not actually be to make a profit but to provide a subsidized service. Nevertheless, a government could attempt to run a business for the profit of the state.
Borrowing: The government can issue bonds to raise money today in which it promises to pay back plus interest at some point in the future.
Taxation: The government takes a portion of your income every year based on various conditions and exceptions.
One of the obvious consequences that mainstream, nation-wide adoption of Bitcoin poses can already be seen by observing countries who have adopted the US dollar - Zimbabwe and Bolivia among them. That is, once a country adopts a foreign currency, they give up their right to print fiat, more or less at will. This is a big deal, because it means the government cannot print its way out of irresponsible spending any longer. Usually, giving up this power is well worth it; very often the reason for adopting another nation's currency is because they have so thoroughly abused their own currency and the hyperinflation is so bad that their power to print is meaningless anyway. Venezuela may very well have to do this after (imo) the Petro and Soverign Bolivar (which are supposed to replace the Bolivar) fail to gain traction. After all, why would a Venezuelan trust Bolivar 2.0 when the same people printing it are the ones who printed Bolivar 1.0? Venezuela's inflation rate may hit 1 million percent this year; an astounding figure, given that just a decade ago, Venezuela was the wealthiest country in South America. Were Bitcoin to be adopted by a country instead of the USD, the country would be in much the same position as Zimbawe - no more printing.
Land sales, I would think, would not be affected by Bitcoin adoption. Real estate sales are real estate sales, whether in bitcoin or USD, whether sold by a private citizen or a sovereign government.
Business also seems largely unaffected - if a business is profitable, whatever currency you are transacting in seems irrelevant. Perhaps the only difference might be that the government couldn't count on itself to bail out the business when it is failing, as it must for quasi-businesses like the US Postal Service or GSE's such as Fannie Mae and Freddie Mac who nearly bit the dirt in the 08 crisis.
Borrowing is interesting. When having this discussion with others, many believe that governments will resort to borrowing more money through additional bond issuance since they can no longer print money. This seems dubious to me. Any time someone is buying a government bond, they are doing so on the assumption that the treasury issuing the bonds will be solvent and able to repay the bond and the interest it guarantees. Government bonds have traditionally been seen as the most conservative and safe place to put one's money because, historically, they have been the most reliable in terms of servicing their debts. The mistake, I think, is assuming that this reliability is an implicit feature of government debt, even if you divorce that government from its ability to print. You must ask yourself: why is the government so reliable in paying back its debts, even when its debts are almost always growing? At the end of the day, they achieve this reliability by either issuing more debt (borrowing from Peter to pay Paul) or the central bank has pumped government coffers with liquidity in the form of newly minted dollars. In the latter case, the central bank becomes the bond holder and the country, in a sense, owes itself they money, but even this scenario is predicated on the ability of the central bank (whether ostensibly private or public) to print new dollars, which it no longer can in the case of official Bitcoin adoption. If I am a potential buyer of government bonds then, I need to be reasonably certain that if push comes to shove, the government will be willing to take the measures necessary to pay me back and preserve its credit worthiness, and it seems to me this is simply not possible in a Bitcoin world. Of course, you might say the government will simply need to take more in through taxes.
Taxation is a bit of a wild card. Anyone who has seen a Laffer curve and stops to think for two seconds knows it is obvious that there is always an optimal tax rate. Tax too much, and you hamper growth, thereby eliminating future sources of tax revenue. Tax too little, and you are just leaving money on the table. No one really knows what the optimal rate is, but you could probably get close. The important point here is, you can't just say, "ok, we can't print anymore and so we can't really borrow as much any more, so we will make up the difference by ramping up taxes to 98%". The capital flight would be insane and, among the people who didn't pack up and leave, you'd be sucking so much capital out of the economy that you may end up killing whatever was left of your golden goose. Another fly in the ointment is that to effectively tax at the optimal rate, you really need to know the approximate income of the person you are taxing. It seems like a given that knowing this is only going to become harder and harder to determine as privacy BIPs slowly become a reality.
In conclusion, I really don't see how most countries could even remotely spend as they do today were Bitcoin to become the standard and because of this, I find it hard to believe that any country besides those who already face massive hyperinflation would voluntarily adopt Bitcoin as its currency. It seems like official adoption will have to come very reluctantly, often through great suffering on the part of the people. Tell me where I am right. Tell me where I am wrong. I want to know your thoughts.
What they really don't wan't you to know about Dash!
Dash is breaking away with regards to integrations, partnerships and developments that advocates of other Crypto Currencies have become frightened of Dash's future dominance. Unfortunately for most of these other Crypto Currency projects Dash as a platform is well and truly in the driving seat on so many levels. Lets take a look at some of the achievements in 2017 and upcoming events:
Saxo Bank 2018 Outrageous Predictions 2018 will be a true roller coaster ride compared to an outrageously placid 2017 Saxo Bank, the online multi-asset trading and investment specialist, has today released its 10 'Outrageous Predictions' for 2018. The predictions focus on a series of unlikely but underappreciated events which, if they were to occur, could send shockwaves across financial markets. While these predictions do not constitute Saxo’s official market forecasts for 2018, they represent a warning of a potential misallocation of risk among investors who typically see just a one percent likelihood to these events materialising. Commenting on this year’s Outrageous Predictions, Chief Economist at Saxo Bank, Steen Jakobsen said: “We have published Outrageous Predictions for more than 10 years and think this year’s list is one of the best we ever had, encouraging everyone to think outside the consensus box. It is important to underline that the Outrageous Predictions should not be considered Saxo’s official market outlook, it is instead the events and market moves deemed outliers with huge potentials for upsetting consensus views.” Head of FX Strategy, John J. Hardy, who lead the project this year, commented: "A year ago, many thought 2017 would prove a volatile year, given the seemingly impossible rise of Trump and the shock of Brexit. Instead, we got a year of outrageously smooth sailing that inflated risky assets the world around with nary a storm. But in 2018 we see the pendulum swinging back in favour of pronounced volatility risks as the irony of long periods of quiet and complacency in asset markets is that they sow the seeds for future volatility as investors underestimate tail risks and overleverage their bets on a continuation of the cycle.” “That being said, our predictions this year aren’t just about market crash concerns. We wax outrageous on everything from major central banks losing their policy mojo and a new political crisis in the EU, to China eroding the US dollar's reserve currency status and a new political spring welling up in southern Africa. We may or may not get any of these right but that isn't the point. Rather, our task here is to stimulate debate and thought on what outrageous direction things may head at major inflection points like those that 2018 will inevitably bring. “ The Outrageous Predictions 2018 publication is available here and the full list of Saxo Bank’s Outrageous Predictions for 2018 reads:
The Fed loses independence as the US Treasury takes charge Both the Republicans and Democrats vie for an increased share of the populist vote as we head into 2018 mid-term elections, with budget discipline entirely absent and GOP tax cuts bringing a massive revenue shortfall which will worsen as US heads into recession. The weak economy and the higher interest rates and inflation will leave the Fed with no answer on monetary policy. The Fed becomes a scapegoat for the economy’s weak performance, a bond market in turmoil and worsening inequality. The Treasury takes on emergency powers and forces the central bank to cap US government yields to 2.5% on long bonds to prevent a bond market meltdown, a policy which was last in place in the immediate aftermath of World War II.
Bank of Japan forced to abandon yield curve control The Bank of Japan’s policy of yield curve control depends on soft global interest rates and low yields, and in 2018 this centre will simply not hold. As inflation rises, yields too will spike, and the result will be a fantastical plunge in the yen. Ultimately, the central bank will need to resort to QE-style measures, but not before USDJPY hits 150, after which it rapidly devalues to 100.
China rolls out the Petro-Renminbi China is by far the largest oil importer, and many producer nations are already more than happy to transact in yuan terms. With the US’ global power and reach waning, and given the success of CNY-based commodity futures in general, the Shanghai International Energy Exchange’s decision to launch a yuan-based crude oil future is a runaway success. The introduction of the petro-yuan sees CNY appreciate more than 10% versus the dollar, taking the USDCNY rate below 6.0 for the first time ever.
Volatility spikes after flash crash in stock markets World markets are increasingly full of signs and wonders, and the collapse of volatility seen across asset classes in 2017 was no exception. The historic lows in the VIX and MOVE indices are matched by record highs in stocks and real estate, and the result is a powder keg that is set to blow sky-high as the S&P 500 loses 25% of its value in a rapid, spectacular, one-off move reminiscent of 1987. A whole swathe of short volatility funds are completely wiped out and a formerly unknown long volatility trader realises a 1000% gain and instantly becomes a legend.
US voters go hard left in 2018 election Changing demographics in the US which already has the under-35 millennials in place as a larger cohort than the post-war baby boomers will have a dramatic impact on politics in 2018. The general revulsion of younger voters for Trump’s persona, the widening inequality gap aggravated even further by the Republicans’ cynical tax reform, and a new breed of Democratic candidates who are unafraid to tap into Sanders-style populism from the left sees millennials turning out in droves at the polls in November. The Democrats pull the debate away from tax reform to spending stimulus for the masses. True populism means breaking out the chequebook for the 90%, and that means fiscal stimulus, deficits be damned. US 30-year Treasury yields rip beyond 5%.
Austro-Hungarian empire threatens EU takeover The divide between old core EU members and the more sceptical and newer members of the bloc will widen to an impassable chasm in 2018 and for the first time since 1951, Europe’s political centre of gravity will shift from the Franco-German couple to CEE. The EU’s institutional blockage does not take long to worry financial markets. After spiking to new highs versus the G10 and many EM currencies by late in 2018, the euro rapidly weakens towards parity with USD.
Bitcoin is thrown to the wolves Bitcoin peaks in 2018 above $60,000 and with a market capitalisation of over $1 trillion as the advent of the Bitcoin futures contract in December 2017 leads to a groundswell of involvement by investors and funds that are more comfortable trading futures than tying up funds on cryptocurrency exchanges. Before long, however, the Bitcoin phenomenon finds the rug torn out from under it as Russia and China move deftly to sideline and even prohibit non-sanctioned cryptocurrencies domestically. After its spectacular peak in 2018, Bitcoin crashes and limps into 2019 close to its fundamental “production cost” of $1,000.
Southern African Spring sees South Africa blossom In 2018, after a surprising turn of events, a wave of democratic transition spreads across sub-Saharan Africa. The forced resignation of Zimbabwe’s long-term president Robert Mugabe at the end of 2017 triggers a wave of political change in other African countries. South Africa’s Jacob Zuma is forced out of power and Congo’s Joseph Kabila faces unprecedented demonstrations pushing him to flee the country. South Africa, however, is the main winner as the ZAR becomes the EM darling and returns 30% against the G3 currencies. It brings the world’s strongest rates of growth in South Africa and satellite frontier economies of the region.
Tencent topples Apple as market cap king China, still the world’s most populous country and one with a rapidly rising standard of living, is opening up its capital markets and its reform programmes are driving a rise in investor sentiment. This is particularly evident in Chinese technology stocks with market leader Tencent’s shares rocketing 120% higher in 2017. In late 2017, Tencent moved into the global top five in market cap terms, nearing $500 billion and even eclipsing Facebook at one point. In 2018, though, Tencent leaves the other giants in the dust with its shares advancing another 100% despite the company’s already enormous size , stealing the world market cap crown from Apple at well above $1 trillion.
It’s their time – women crash the glass ceiling Over the last generation, women have started achieving higher education levels than men, with US universities now graduating some 50% more women than men at the bachelor’s degree level. Women also now comprise nearly half of all business graduates. And yet in 2017, only 6.4% of the CEOs in the Fortune 500 list are women – though on average they earn more than their male peers. Change is coming – not because it is “fair”, but for the practical reason that women realising their desired potential is the last way left to grow the pie without growing the population in our low-productivity and aging developed economies. In 2018, the chauvinist old boys’ clubs are shaken to their core by shareholders and a woman occupies the top spot at more than 60 Fortune 500 companies by the end of the year.
Here is my argument for a free market alternative to universal basic income
Here are my premises
Automation will continue to happen in the economy at an increasing rate because of A.I. and economic feedback loops putting people into more technical jobs thus increasing the rate of technological progress and automation even more.
Automation doesn't need to replace all jobs to create societal problems. In fact it doesn't even need to destroy jobs faster than they're created. It could be causing a net increase in potential careers. It only needs to replace jobs at a faster rate than average(or even below average) people can retrain and/or save enough money to retrain for a new career. As there will be a lot of problems if even 50% of the population is perpetually unemployed.
Future companies will be extremely profitable in an automation runaway event and the gap between rich and poor will increase accordingly.
So what is this solution? UBI is obviously one, but I think there is another; Blockchain Securities.
For those who don't know, a token is necessary for a blockchain to work, it doesn't have to be strictly a currency or "cryptocurrency". In fact I'd say cryptocurrency is not the killer app for blockchain technology. There will definitely be a few cryptocurrencies that dominate and are necessary for the infrastructure of this new economy to work, but it's like how no one uses google because they like visiting the google.com per se, they use google because they like visiting other sites and google happens to be the best way to get from A to B. Again this isn't common knowledge but there is something new to the industry called "security tokens" on blockchains, functionally you can use them in the same way you'd use bitcoin. You can divide them up to several decimal places and send fractions of a penny to anyone anywhere in the world for almost no cost (compared to traditional means). However, they have the added function that cryptocurrencies like bitcoin don't have, and that's being a security. One example is "crypto-stocks" which are tokens on a blockchain, as a financial instrument these are basically identical to traditional stocks as they actually pay you dividends and give you some small portion of ownership in a company. By my count there is at least a few dozen of these already on the market. A notable example is nexo which just a few days ago was officially marked as compliant by the U.S. Securities and Exchange Commission as a security. It a real stock that runs on a blockchain and that not only pays dividends but they do it monthly and are considering doing it weekly, as opposed to traditional stocks that pay out quarterly or annually. They can do that because blockchains make it much more logistically possible. The advantages of crypto-stocks over traditional stocks are substantial. One advantage is you can purchase them (in principle) in any amount, in minutes. Traditional stock investing has absurdly high fees if you go through a firm or advisor. And not only that, you also have to have several thousand dollars in cash just to open an account in a lot of places. In order to be an "accredited" investor in America you essentially have to be a millionaire. This makes it very difficult for even middle class people to invest. What's particularly interesting about crypto-stocks that wasn't really practical before blockchain, is that they would be just as fungible and divisible as currency. Imagine walking into a coffee shop and instead of paying with USD $$$ you pay with some composite of your portfolio. You buy a coffee and pay with $1.0 of Tesla stocks and $0.5 of Amazon stocks and maybe $0.5 of an asset backed security like gold, or any arbitrary combination of your choice that you set up in your personal settings of your payment app. And of course the coffee shop could receive fiat or cryptocurrency regardless of what you used to pay as the conversion is done instantly on the back end. And it's all done cheaper than a traditional credit card transaction. The major advantage of having stocks in your account as opposed to a national currency, is not only will you not lose money because of inflation, you will gain money because of the dividends just for sitting in your account. Also there is a lot of existential risk to your currency if you don't have the privilege of living in a first world country(See, Greece, Valenzuela, Zimbabwe, ect.). So now lets imagine massive unemployment because of automation. Companies are making insane profits. If you can manage to buy some of these crypto-stocks, which should be possible since you can buy them in tiny amounts. Then you can receive passive income and you have a small piece of ownership in a company. Since (crypto)stock yields will be extreme in this scenario where companies are extremely profitable, you might be able to get enough to sustain your existence or even profit! If you think about it, it's almost the same as UBI in a way since with UBI the government just takes taxes from the companies, rather than profit directly, and then redistributes the wealth accordingly. However, the crypto-stock model removes the need for the government as the middleman and would arguably be much more efficient since funds can be distributed to everyone within minutes at high frequencies rather than having to go through an entire costly and slow tax system. There are even more advantages to this system like removing tax burden of UBI on smaller companies which helps with innovation, since they are only paying if they make some profit. It also keeps competition between companies high which keeps them running efficiently. This system gives us all the benefits of wealth redistribution but the practicality and efficiency of a freemarket. And it encourages people to save since the more they save the more profit they can make in the long term which will reduce consumerism to the necessarily amount, which will hopefully have a positive impact on how much we pollute. Of course there will still be a gap between rich and poor but there would still be with a UBI model. Everyone could decide which companies they want to invest in, which means people are more directly participating in the global economy, making it more efficient. Of course not everyone has the time or ability to be a stock analyst but that problem is easily solved with index funds, which would also be a crypto-stock. TL:DR: Blockchain + insanely profitable companies due to AI and automation would allow for a free market alternative to UBI. It allows everyone to get a share of the profits of mega companies. It can shift the economy from a debt based one to an equity based one.
Cyptocurrencies mixed this weekend as Bitcoin nears USD$6,500 price level, Ethereum above USD$200, and Tezoz sees 30% gains before official launch
According to a research study conducted by blockchain researcher Alex Lebed and crypto consultant Alexey Akhunov, the implementation of recently launched Gemini Dollar (GUSD) can be changed by a Gemini custodian every 48 hours. In reviewing GUSD’s white paper, the code of GUSD’s smart contracts are able to be changed every 48 hours to become non-transferrable or frozen at any moment. The white paper cites a need for the ability to manage token transfers in case of unforeseen circumstances.
After his appointment this summer, Zimbabwe’s finance minister, Mthuli Ncube, is taking a pro-cryptocurrency stance in seeking solutions to Zimbabwe’s cash problem. Zimbabwe’s central bank, the Reserve Bank of Zimbabwe, has historically taken the opposite stance. Ncube has promised to try to judge the Reserve Bank of Zimbabwe towards establishing a cryptocurrency division within the central bank.
Bitcoin’s hashpower has doubled since just before the start of the summer, despite cryptocurrencies observing a largely bear market. Fundstrat analyst, Sam Doctor, believes that the reason for mining hashpower growing despite price declines is because miners are trying to position themselves for the future, despite losing out on currency profits. Furthermore, this implies that the Bitcoin mining community believe in the success of Bitcoin for the long-term.
Civil, a blockchain startup aimed at distripting media, will offer its crypto token to accredited and unaccredited investors next week. The interesting thing about Civil is the structure of its initial coin offering sale. Civil’s ICO will require buyers to complete a quiz that demonstrates their knowledge of token sales and not allow users to sell tokens until their wallet has demonstrated some level of use, dubbed ‘proof-of-use'.
Crypto exchange, Coinbase, is expanding from 20 to 150 employees amidst the move to its new New York City office. The digital asset exchange said that despite the crypto bear market, institutional demand for Coinbase’s services did not recede, saying institutions saw this year as an opportunity to enter the market when things are not too frothy.
Despite banning cryptocurrencies, China has seen a spike in offerings of cryptocurrency custody services. For example, InVault a Chinese startup that offers crypto custody services, specifically marketing to crypto exchanges. A crypto custodian would hold a client’s assets for safekeeping, but Chine could potentially disallow any mainland organization that is either holding virtual currencies or holding assets that belong to other companies that have no legal standing in China’s mainland.
Japanese financial services company, SBI Holdings, will launch a consumer payments application on Android and iOS using Ripple’s blockchain technology, dubbed MoneyTap. MoneyTap will enable domestic bank customers to transact instantly, 24-hours a day and seven days a week using a QR code, a phone number, or a bank account number. The intended launch of MoneyTap is somewhere between September and December 2018.
Mastercard has filed patents for the use of blockchain technology in keeping track of consumer payments. The payment services giant filed a series of very similar patent filings last week to the US Patent and Trademark Office. In the patents, Mastercard outlines a distributed edger that could be used to record point-to-point transactions as they are processed. Particularly, a blockchain ledge would be ideal for streamlining account management by simplifying the process in which purchase orders are registered and monitored, one of the patent application details.
The Korean Customs Service (KCS) and Samsung SDS have agreed to implement Samsung’s blockchain technology in an exports customs clearance system. A memorandum of understanding has been signed by the two entities, and sees 48 other organizations join the agreement, including government organizations, shipping operations, and logistics firms.
South Korean cellular carrier, LG Uplus, will launch a blockchain-based overseas payment services, it announced Sunday. The cellular carrier will work with companies in Japan, Taiwan, and the US to offer users of three mobile services cheaper and faster payments while traveling internationally. The project is slated to launch in 2019.
The world’s largest cryptocurrency exchange, Binance, will soon begin its private beta testing of a crypto-fiat exchange in Singapore, announced via tweet by CEO Changpeng Zhao on Saturday. Allegedly, the fiat-crypto exchange will support the local Singaporean Dollar. Singapore was ranked as the world’s third most favorable country for initial coin offerings in mid-July.
Tezos’ native token, XTZ, saw gains of over 30% this weekend in anticipation of the networks official launch today, Monday. XTZ began to see price gains after developers tweeted that Tezos’ leaves beta and officially launches Monday. Trading volumes of XTZ also jumped 169% on Friday, touching a nine-week high of USD$5.13 million. The Tezoz project raised USD$232 million via ICO in July 2017.
Venture capitalist, Tim Draper, predicted that total cryptocurrency market capitalization will reach USD$80 trillion within the next 15-years, according to news outlet DealStreetAsia. Draper went on to explain that the recent slide in cryptocurrencies is attributed to people who have not yet adopted digital currencies as a new asset class.
QuarkChain Testnet 1.0 was built based on standardized blockchain system requirements, which included network, wallet, browser, and virtual machine functionalities. Other than the fact that the token was a test currency, the environment was completely compatible with the main network. By enhancing the communication efficiency and security of the network, Testnet 2.0 further improves the openness of the network. In addition, Testnet 2.0 will allow community members (other than citizens or residents of the United States) to contribute directly to the network, i.e. running a full node and mining, and receive testnet tokens as rewards. QuarkChain Testnet 2.0 will support multiple mining algorithms, including two typical algorithms: Ethash and Double SHA256, as well as QuarkChain’s unique algorithm called Qkchash – a customized ASIC-resistant, CPU mining algorithm, exclusively developed by QuarkChain. Mining is available both on the root chain and on shards due to QuarkChain’s two-layered blockchain structure. Miners can flexibly choose to mine on the root chain with higher computing power requirements or on shards based on their own computing power levels. Our Goal By allowing community members to participate in mining on Testnet 2.0, our goal is to enhance QuarkChain’s community consensus, encourage community members to participate in testing and building the QuarkChain network, and gain first-hand experience of QuarkChain’s high flexibility and usability. During this time, we hope that the community can develop a better understanding about our mining algorithms, sharding technologies, and governance structures, etc. Furthermore, this will be a more thorough challenge to QuarkChain’s design before the launch of mainnet! Thus, we sincerely invite you to join the Testnet 2.0 mining event and build QuarkChain’s infrastructure together! Today, we’re pleased to announce that we are officially providing the CPU mining demo to the public (other than citizens and residents of the United States)! Everyone can participate in our mining event, and earn tQKC, which can be exchanged to real rewards by non-U.S. persons after the launch of our mainnet. Also, we expect to upgrade our testnet over time, and expect to allow GPU mining for Ethash, and ASIC mining for Double SHA256 in the future. In addition, in the near future, a mining pool that is compatible with all mining algorithms of QuarkChain is also expected to be supported. We hope all the community members can join in with us, and work together to complete this milestone! 2 Introduction to Mining Algorithms 2.1 What is mining？ Mining is the process of generating the new blocks, in which the records of current transactions are added to the record of past transactions. Miners use software that contribute their mining power to participate in the maintenance of a blockchain. In return, they obtain a certain amount of QKC per block, which is called coinbase reward. Like many other blockchain technologies, QuarkChain adopts the most widely used Proof of Work (PoW) consensus algorithm to secure the network. A cryptographically-secure PoW is a costly and time-consuming process which is difficult to solve due to computation-intensity or memory intensity but easy for others to verify. For a block to be valid it must satisfy certain requirements and hash to a value less than the current target threshold. Reverting a block requires recreating all successor blocks and redoing the work they contain, which is costly. By running a cluster, everyone can become a miner and participate in the mining process. The mining rewards are proportional to the number of blocks mined by each individual. 2.2 Introduction to QuarkChain Algorithms and Mining setup According to QuarkChain’s two-layered blockchain structure and Boson consensus, different shards can apply different consensus and mining algorithms. As part of the Boson consensus, each shard can adjust the difficulty dynamically to increase or decrease the hash power of each shard chain. In order to fully test QuarkChain testnet 2.0, we adopt three different types of mining algorithms” Ethash, Double SHA256, and Qkchash, which is ASIC resistant and exclusively developed by QuarkChain founder Qi Zhou. These first two hash algorithms correspond to the mining algorithms dominantly conducted on the graphics processing unit (GPU) and application-specific integrated circuits (ASIC), respectively. I. Ethash Ethash is the PoW mining algorithm for Ethereum. It is the latest version of earlier Dagger-Hashimoto. Ethash is memory intensive, which makes it require large amounts of memory space in the process of mining. The efficiency of mining is basically independent of the CPU, but directly related to memory size and bandwidth. Therefore, by design, building Ethash ASIC is relatively difficult. Currently, the Ethash mining is dominantly conducted on the GPU machines. Read more about Ethash: https://github.com/ethereum/wiki/wiki/Ethash II. Double SHA256 Double SHA256 is the PoW mining algorithms for Bitcoin. It is computational intensive hash algorithm, which uses two SHA256 iterations for the block header. If the hash result is less than the specific target, the mining is successful. ASIC machine has been developed by Bitmain to find more hashes with less electrical power usage. Read more about Double SHA256: https://en.bitcoin.it/wiki/Block_hashing_algorithm III. Qkchash Originally, Bitcoin mining was conducted on the CPU of individual computers, with more cores and greater speed resulting in more profitability. After that, the mining process became dominated by GPU machines, then field-programmable gate arrays (FPGA) and finally ASIC, in a race to achieve more hash rates with less electrical power usage. Due to this arms race, it has become increasingly harder for prospective new miners to join. This raises centralization concerns because the manufacturers of the high-performance ASIC are concentrated in a small few. To solve this, after extensive research and development, QuarkChain founder Dr. Qi Zhou has developed mining algorithm — Qkchash, that is expected to be ASIC-resistant. The idea is motivated by the famous date structure orders-statistic tree. Based on this data structure, Qkchash requires to perform multiple search, insert, and delete operations in the tree, which tries to break the ASIC pipeline and makes the code execution path to be data-dependent and unpredictable besides random memory-access patterns. Thus, the mining efficiency is closely related to the CPU, which ensures the security of Boston consensus and encourges the mining decentralization. Please refer to Dr. Qi’s paper for more details: https://medium.com/quarkchain-official/order-statistics-based-hash-algorithm-e40f108563c4 2.3 Testnet 2.0 mining configuration Numbers of Shards: 8 Cluster: According to the real-time online mining node The corresponding mining algorithm is Read more about Ethash with Guardian: https://github.com/QuarkChain/pyquarkchain/wiki/Ethash-with-Guardian) We will provide cluster software and the demo implementation of CPU mining to the public. Miners are able to arbitrarily select one shard or multiple shards to mine according to the mining difficulty and rewards of different shards. GPU / ASIC mining is allowed if the public manages to get it working with the current testnet. With the upgrade of our testnet, we will further provide the corresponding GPU / ASIC software. QuarkChain’s two-layered blockchain structure, new P2P mode, and Boson consensus algorithm are expected tobe fully tested and verified in the QuarkChain testnet 2.0. 3 Mining Guidance In order to encourage all community members to participate in QuarkChain Testnet 2.0 mining event, we have prepared three mining guidances for community members of different backgrounds. Today we are releasing the Docker Mining Tutorial first. This tutorial provides a command line configuration guide for developers and a docker image for multiple platforms, including a concise introduction of nodes and mining settings. Follow the instructions here: Quick Start with QuarkChain Mining. Next we will continue to release: A tutorial for community members who don’t have programming background. In this tutorial, we will teach how to create private QuarkChain nodes using AWS, and how to mine QKC step by step. This tutorial is expected to be released in the next few days. Programs and APIs integrated with GPU / ASIC mining. This is expected to allow existing miners to switch to QKC mining more seamlessly. Frequently Asked Questions: 1. Can I use my laptop or personal computer to mine? Yes, we will provide cluster software and the demo implementation of CPU mining to the public. Miners will be able to arbitrarily select one shard or multiple shards to mine according to the work difficulty and rewards of different shards. 2. What is the minimum requirements for my laptop or personal computer to mine? Please prepare a Linux or MacOs machine with public IP address or port forwarding set up. 3. Can I mine with my GPU or an ASIC machine? For now, we will only be providing the demo implementation of CPU mining as our first step. Interested miners/developers can rewrite the corresponding GPU / ASIC mining program, according to the JSON RPC API we provided. With the upgrade of our testnet, we expect to provide the corresponding GPU / ASIC interface at a later date. 4. What is the difference among the different mining algorithms? Which one should I choose? Double SHA256 is a computational intensive algorithm, but Ethash and Qkchash are memory intensive algorithms, which have certain requirements on the computer’s memory. Since currently we only support CPU mining, the mining efficiency entirely depends on the cores and speed of CPU. 5. For testnet mining, what else should I know? First, the mining process will occupy a computer’s memory. Thus, it is recommended to use an idle computer for mining. In Testnet 2.0 settings, the target block time of root chain is 60 seconds, and the target block time of shard chain is 10 seconds. The mining is a completely random process, which will take some time and consume a certain amount of electricity. 6. What are the risks of testnet mining? Currently our testnet is still under the development stage and may not be 100% stable. Thus, there would be some risks for QuarkChain main chain forks in testnet, software upgrades and system reboots. These may cause your tQKC or block record to be lost despite our best efforts to ensure the stability and security of the testnet. For more technical questions, welcome to join our developer community on Discard: https://discord.me/quarkchain. 4 Reward Mechanism Testnet 2.0 and all rewards described herein, including mining, are not being offered and will not be available to any citizens or residents of the United States and certain other jurisdictions. All rewards will only be payable following the mainnet launch of QuarkChain. In order to claim or receive any of the following rewards after mainnet launch, you will be required to provide certain identifying documentation and information about yourself. Failure to provide such information or demonstrate compliance with the restrictions herein may result in forfeiture of all rewards, prohibition from participating in future QuarkChain programs, and other sanctions. NO U.S. PERSONS MAY PARTICIPATE IN TESTNET 2.0 AND QUARKCHAIN WILL STRICTLY ENFORCE THIS VIA OUR KYC PROCEDURES. IF YOU ARE A CITIZEN OR RESIDENT OF THE UNITED STATES, DO NOT PARTICIPATE IN TESTNET 2.0. YOU WILL NOT RECEIVE ANY REWARDS FOR YOUR PARTICIPATION. 4.1 Mining Rewards
Prize Pool A total of 5 million QKC prize pool have been reserved to motivate all miners to participate in the testnet 2.0 mining event. According to the different mining algorithms, the prize pool is allocated as follows:
Total Prize Pool: 5,000,000 QKC Prize Pool for Ethash Algorithm: 2,000,000 QKC Prize Pool for Double SHA256 Algorithm: 1,000,000 QKC Prize Pool for Qkchash Algorithm: 2,000,000 QKC The number of QKC each miner is eligible to receive upon mainnet launch will be calculated on a pro rata basis for each mining algorithm set forth above, based on the ratio of sharded block mined by each miner to the total number of sharded block mined by all miners employing such mining algorithm in Testnet 2.0.
Early-bird Rewards To encourage more people to participate early, we will provide early bird rewards. Miners who participate in the first month (December 2018, PST) will enjoy double points. This additional point reward will be ended on December 31, 2018, 11:59pm (PST).
4.2 Bonus for Bug Submission: If you find any bugs for QuarkChain testnet, please feel free to create an issue on our Github page: https://github.com/QuarkChain/pyquarkchain/issues, or send us an email to [email protected]. We may provide related rewards based on the importance and difficulty of the bugs. 4.3 Reward Rules: QuarkChain reserves the right to review the qualifications of the participants in this event. If any cheating behaviors were to be found, the participant will be immediately disqualified from any rewards. QuarkChain further reserves the right to update the rules of the event, to stop the event/network, or to restart the event/network in its sole discretion, including the right to interpret any rules, terms or conditions. For the latest information, please visit our official website or follow us on Telegram/Twitter. About QuarkChain QuarkChain is a flexible, scalable, and user-oriented blockchain infrastructure by applying blockchain sharding technology. It is one of the first public chains that successfully implemented state sharding technology for blockchain in the world. QuarkChain aims to deliver 100,000+ on-chain TPS. Currently, 14,000+ peak TPS has already been achieved by an early stage testnet. QuarkChain already has over 50 partners in its ecosystem. With flexibility, scalability, and usability, QuarkChain is enabling EVERYONE to enjoy blockchain technology at ANYTIME and ANYWHERE. Testnet 2.0 and all rewards described herein are not being and will not be offered in the United States or to any U.S. persons (as defined in Regulation S promulgated under the U.S. Securities Act of 1933, as amended) or any citizens or residents of countries subject to sanctions including the Balkans, Belarus, Burma, Cote D’Ivoire, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, Zimbabwe, Central African Republic, Crimea, Lebanon, Libya, Somalia, South Suda, Venezuela and Yemen. QuarkChain reserves the right to terminate, suspend or prohibit participation of any user in Testnet 2.0 at any time. In order to claim or receive any rewards, including mining rewards, you will be required to provide certain identifying documentation and information. Failure to provide such information or demonstrate compliance with the restrictions herein may result in termination of your participation, forfeiture of all rewards, prohibition from participating in future QuarkChain programs, and other actions. This announcement is provided for informational purposes only and does not guarantee anyone a right to participate in or receive any rewards in connection with Testnet 2.0. Note: The use of Testnet 2.0 is subject to our terms and conditions available at: https://quarkchain.io/testnet-2-0-terms-and-conditions/ more about qurakchain: Website: https://quarkchain.io/cn/ Facebook: https://www.facebook.com/quarkchainofficial/ Twitter: https://twitter.com/Quark_Chain Telegram: https://t.me/quarkchainio
Battle Over Bitcoin: China Backs US Startup Coinbase And US Falls Behind In Virtual Currencies.
Indeed, virtual currencies are nothing new to the Chinese. For example, more than 100 million people on the social platform QQ have used the Q coin for more than 10 years. And after China’s state-run China Central Television, or CCTV, ran a half-hour-long documentary on bitcoins, downloads of apps for processing and “mining” bitcoins soared in the world’s second largest economy. Bitcoin, long the plaything of the Western ubernerd, now appears poised to grow substantially in China and other markets, like the euro zone, where government meddling in native currency valuations has left many distrustful of the money in their bank accounts. Americans don’t have this problem -- yet. And that may be a problem in itself. According to bitcoin proponents, if the U.S. tries to ignore the nascent currency, writing it off as a financial fad with less value than the seemingly stable dollar, Americans risk ceding to the Chinese and others control of the future of what could be the most disruptive force in monetary exchanges since the credit card. In turn, the dollar and the ability of the U.S. to navigate global currency conflicts could be seriously weakened. “Here’s the bottom line: Bitcoin has much higher popularity outside the U.S. and much higher potential outside the U.S.,” observed Andreas M. Antonopoulos of the Bitcoin Foundation. “If you go to an American and say, ‘Hey, there’s this new thing, bitcoin,’ they say, ‘Well, what’s wrong with the dollar?’ That question is different in other countries.” Bitcoins are a finite, Web-based currency created in 2009 by a group of hackers working under the nom-de-Internet Satoshi Nakamoto. Exactly 10,952,975 bitcoins are in circulation, all of which have been purchased on exchange networks or mined. The currency is mined using software that processes transactions on the bitcoin network, adding groups of transactions, called blocks, to the chain. Miners are paid about 25 bitcoins per block. That digital money can then be used to purchase a variety of goods online, from legitimate software to heroin on the infamous virtual black-market Silk Road. Bitcoin surged in value to $266 last month, thrusting the currency into the mainstream spotlight as investment poured in from sources as diverse as the hapless Brothers Winklevoss (of Facebook infamy) and Union Capital Ventures principal Fred Wilson (an early investor in Zynga, Twitter, and Kickstarter). Suddenly, everyone was talking about buying bitcoins. But the bubble burst in late April, and in the U.S. at least, bitcoin faded from the news. That was not the case in China, where Antonopoulos said downloads of bitcoin clients have eclipsed those in the U.S. Bitcoins are mined in several steps. After downloading a bitcoin client, such as Coinbase (which serves as a wallet in which to store the bits of code that constitute the digital money), miners often join pools where they share computing power to decode algorithms in which bitcoins are hidden. The concept of bitcoins and bitcoin mining is cryptic for many people, even some otherwise forward-thinking American investors. The irony is that, for now, American startups are leading the bitcoin charge, and the U.S. government was the first to issue guidance on using the currency as payment -- a seemingly tacit recognition of bitcoin’s validity as legal tender. Why China Poses A Threat Feng Li, the IDG partner who chose to fund Coinbase, said the Chinese have yearned for access to a virtual currency since the central government cracked down on the use of Q coins. Q coins were introduced in March 2002 by Tencent Holdings Ltd. (HKG:0700), the parent company of the country’s most popular instant-messaging service, QQ , and they currently average an annual transaction value of more than 1 billion yuan ($163 million). That value is growing at about 15 to 25 percent each year. Q coins, purchased with yuan, are predominantly used to buy virtual products and services in QQ and its related online games and social media. Originally, Tencent regulations prevented Q coins from being traded between users or converted back to yuan, but allowed users to trade points and purchase Q coins with their game accounts, then use the black market to convert them into cash. That caused concerns at the People’s Bank of China, China’s central bank. In January 2007, converting game points to Q coins was banned, and Tencent reiterated that Q coins constitute a product, not a currency, which seemed to satisfy the concerns. “There has already been proof with the Q coin,” Feng said of the Chinese likeliness to start using bitcoin. “It’s been very well circulated and very well adopted.” Already, shops on Taobao -- the Chinese equivalent to eBay Inc. (NASDAQ:EBAY), owned by Alibaba.com Ltd. (HKG:1688) -- accept bitcoins as payment for goods, as does the similar service, Tencent’s PaiPai.com. The Chinese are embracing bitcoins in other ways. The first bitcoin fund began to raise money in June, with the goal of raising 20 million yuan. The fund’s investment threshold is 10,000 yuan, and it will mature in four years. Q coin’s popularity isn’t the only reason bitcoin has appeal in China. As it turns out, China is the perfect place for bitcoin mining. While much of the developed world is well into the transition from personal computers to mobile devices, China’s PC market is still thriving, which provides the necessary computing power to run a successful business converting electricity into mined coins. Price caps on electricity already create wasteful use of energy in China, so running a code-crunching computer for hours on end isn’t as costly an investment as it would be in the U.S. And so-called “gold-mining” or “gold-farming” businesses already exist in China’s cybersphere. None of that will come as a surprise to any “World of Warcraft” player: Gamers in Chinese urban sweatshops are known to sit in front of glowing blue screens for hours, slaughtering players in the game for their spoils or mining gold deposits found in the sprawling milieu of Blizzard Entertainment’s international blockbuster. Those treasures are then sold to players in the game for real money. China has a heavily controlled currency, which also makes bitcoin attractive. “The more controlled the currency is, the harder the transactions are, the more friction there is in the national currency, the more appealing the coin is,” Antonopoulos said, noted that the most appealing place to use bitcoin would be a country whose economy is a veritable train wreck -- like Zimbabwe, except that the southern African nation lacks the necessary technology. “I would say China is perfect,” he said. “It’s got the penetration, it’s got the smartphones, it’s got the Internet and the people are familiar with virtual currencies. And, it’s got the not-as-appealing national currency.” Regulation In The U.S. Guidance issued in March by the U.S. Treasury Department said that companies issuing or exchanging online cash, including bitcoin, would be subject to the same scrutiny as traditional firms such as the Western Union Co. (NYSE:WU) to prevent money laundering. Less than two months later, the Department of Homeland Security proved that edict had teeth. Federal officials obtained a warrant Tuesday to seize an account tied to Mt.Gox, the Tokyo-based exchange company that handles about 80 percent of all bitcoin trades. Authorities accused Mt.Gox’s U.S. subsidiary, Mutum Sigillum LLC, of failing to register as a money-services company with the Treasury’s Financial Crimes Enforcement Network. An account held by the online-payments firm Dwolla was subsequently seized. Many feared the warrant execution could cast a chill over the bitcoin industry as a sector centered on a borderless, decentralized money came under the scrutiny of the federal government. That proved not to be the case, Coinbase’s Ehrsam said. “For bitcoin to go mainstream, or as it goes mainstream, it will be used in a higher and higher amount of transactions,” he said, adding that Coinbase is registered as a money-services firm. “There’s no way there will be all this money flowing through an unregulated system.” Chris Larsen -- the CEO of OpenCoin, a fellow San Francisco-based payment platform that processes most national currencies as well as bitcoin and its own virtual cash, Ripple -- agreed. “They definitely are regulating them, [and] we actually think that’s a really good thing for the industry,” he told IBTimes. “I thought the guidance was a good idea. One of the things the guidelines seem to make clear for the first time is that a virtual currency could be used for goods and services.” The Price Of Regulation But such regulation is a slippery slope, said Jerry Brito, a senior research fellow at the Mercatus Center at George Mason University. Perhaps it begins with measures to prevent money-laundering, he said. But what measures would the government take to prevent the untraceable currency from being used for child pornography or human trafficking? “Bitcoin has the potential to be a disruptive technology that would be beneficial to the economy, and we don’t want to kill off that potential to get at the other potential for bad stuff,” he observed. Brito, who plans to speak next month at a conference on virtual currencies organized by the National Center for Missing and Exploited Children, added: “We’re already the first country to enforce money-laundering laws against bitcoin. But the U.S. would be shooting itself in the foot if it went too far [with regulations] and either outlawed bitcoin or made the legal guidelines impossible to comply with.” Will China Step In? So far, Chinese bitcoin merchants have little to fear. For many, the CCTV segment on bitcoin seemed to be a signal from Beijing, which heavily controls the channel’s content, that the currency is worth exploring. Some of those interviewed speculated that the Communist Party wants to see bitcoin stockpiled in China, allowing the government to invest in it if, or when, the dollar is shaken from its perch as the world’s reserve currency. It remains to be seen whether -- or, more likely, when -- China will intervene in the trade of bitcoin in its own economy. But for the U.S. to experience widespread adoption of the currency, which is considered a necessary step for gaining a grasp on the bitcoin market, limited government control will have to allow the money, like the Internet that birthed it, to develop organically.
https://preview.redd.it/3m9mr6g67rw11.png?width=1024&format=png&auto=webp&s=6ce9d2f1a48a2105487f008ed765fbcfd2bdf7ff Two years ago, on the eve of the US presidential inauguration, I appeared in a documentary on the British TV station iTV. A friend of the family asked my mom if she would be willing to be interviewed by the show’s journalist who was traveling across America speaking with voters on across the political spectrum. My mom wasn’t particularly interested so she nominated me. Now, admittedly, most of my life, I’ve been politically apathetic. My approach to politics was to put my head in the sand because even if I didn’t pay attention, life worked out. As immigrants, my family and I created prosperous lives for ourselves in the American Midwest. We lived in safe neighborhoods with great public schools. We made enough money, we bought real estate, and moved up the economic ladder. My sister and I both attended great universities. Outside of academic achievement, I never worried about much. So I never cared much about politics. That was until two years ago. On the eve of the inauguration, the documentary aired. Watching the broadcast, you would never know I was formerly a political schlep as I shared my aversion to current events. I’d like to say that I didn’t know what had come over me, but, I did. I was broken by the year-long public war on the American people, by the American people. To cope with my upset, I learned how to meditate. Focusing on something besides current events made me less anxious. Eventually, I began to feel better. Over the next year, I stumbled upon Bitcoin and blockchain technology and slid down the infamous rabbit hole. I watched the documentary Banking on Bitcoin and immediately the topics and themes made sense. I started researching Bitcoin and altcoins and the underlying blockchain technology. Like many, I became fascinated by the potential of digital currency to transform financial systems and tried to learn as much as possible. I learned about the implications of government-controlled fiat and how crypto could shift control to individuals. Domestically, Americans didn’t have to remain at the mercy of “too big to fail” banks. And abroad, crypto could be used as a strong hedge again national currency devaluation resulting from political turmoil. I read about economic issues in Nigeria, Zimbabwe, Venezuela, India, Greece. Learning about the rise of digital currency gave me hope. Imagine if crypto could do for banking what the internet did for media; to give access, power, and control to individuals rather than governments or financial institutions. This was thrilling. For the remainder of 2017, I enjoyed the dramatic rise in crypto prices and continued to learn as much as possible. Of course, at the start of this year, prices tanked but luckily, these new valuations did not completely destroy my enthusiasm for the space. I began to learn about blockchain technology and the potential impact of decentralization. I learned about the 19 industries blockchain will disrupt. Heck, it can even help us with election tampering. I immersed myself wholeheartedly into this new space. I loved the technology and the quest for solutions to long-standing issues of money, control, centralization, power. I was hooked! But what I enjoyed just as much as the promise of this new technology, was operating in a world where politics didn’t matter. I mean, how could they with so little regulation? This was uncharted territory where the same forces of polarization and manipulation did not exist. There was no precedent. There were no rules until we made up our own. DYOR, HODL, and BTFD applied to everyone. Politics didn’t matter because we all wanted the same thing — mass adoption. In this ecosystem, our desires were aligned. It was magic. Forget putting down someone else’s candidate. We were having too much fun speculating about the market, comparing shitcoins, and choosing our lambos! Fortunately, my understanding of and appreciation for blockchain today extends beyond making money. Of course, the bear market has forced me to manage my expectations and to adjust my portfolio. But it has also eliminated weak hands leaving only true believers to BUIDL a decentralized future. These believers include members of two outstanding, international teams I have worked with — first with Bitcoin for Beginners (BFB), a crypto education website, and now Kambria, an open innovation protocol initially focused on the robotics and AI verticals. At BFB, I was the only woman on the small, core team of leaders living around the world. At Kambria, our leadership team is all-female and split between Silicon Valley and Vietnam. In both organizations, team members value growing the crypto/blockchain ecosystem by sharing their knowledge, with integrity, with their respective communities. In my work, political parties do not apply. We don’t need to take sides in a zero-sum game because we know that connected communities are stronger than divided ones. We are all students and teachers at the same time, innovators intent on creating a new reality. I am grateful for my work, my colleagues, and this new space. Bring on the future! Laura Guy for the Kambria Network Website: https://kambria.io/ Whitepaper: http://bit.ly/2JbuET7 Telegram (ENG): https://t.me/kambriaofficial Telegram (KOR): https://t.me/KambriaKorea Telegram (VIE): https://t.me/KambriaVietnam Telegram (CHN): https://t.me/KambriaChina Twitter: https://twitter.com/KambriaNetwork Facebook Page: https://facebook.com/KambriaNetwork Facebook Group: https://www.facebook.com/groups/kambria/ Reddit: https://www.reddit.com/KambriaOfficial/ Medium (ENG): https://medium.com/kambria-network Medium (CHN): https://Medium.com/kambriachina Steemit: https://steemit.com/@kambrianetwork Weibo (CHN): https://www.weibo.com/kambriachina Email: [email protected]
Coinrevolution's Daily Report: 17/09/2018 – Regulation News from Japan, UK & Zimbabwe
Japan elaborates its regulation of cryptocurrencies
The crypto boom does not seem to stop in Japan. As of now, more than 150 companies are waiting to get an official license from the Japanese government to run an exchange. The Japanese Yen is the fiat currency with the second biggest volume to Bitcoin after the US-Dollar. The Financial Services Agency (FSA) is seeking to expand its personnel to cope with the flooding of new crypto projects. Japan has one of the most sophisticated regulation models in the world. Companies have to meet several regulations first before getting licensed in the East-Asian country. Currently, there are only about 16 officially licensed exchanges in the country. 📷
Zimbabwe reconsiders its anti-crypto policies due to money shortage
Zimbabwe is going through economic hardship ever since applying anti-white policies that included the expropriation of land. From 2004 to 2009 the country experienced a severe hyperinflation that is still very present in the collective memory of Zimbabwe. However, the country underwent a dollarization of its economy in the following years that is still going on. But as mistrust in public institutions and banks is high no one is depositing money into banks. The shortage of money damages the economy of Zimbabwe even more: a classic vicious circle. Now the South African country researches whether cryptocurrencies could solve the country’s problems. The finance minister Mthuli Ncube proposed a rethinking. As of now, the state of Zimbabwe maintains strong anti-crypto policies.
UK does not plan to regulate crypto
As of now, the United Kingdom is still lacking any kind of official regulation regarding cryptocurrencies. However, digital money is still not considered a legal means of payment in Great Britain. UK law as articulated in the Currency Act of 1983 or the Coinage Act of 1971 (among many others) determines that only bank notes that were issued by the Bank of England with exceptions for Scottish, Northern Irish and Welsh bank notes. Therefore, Bitcoin is not a legal means of payment in the UK. Using it as such will lead to difficulties before the court.
BitGo Approved to Offer Cryptocurrency Custody Services in U.S
BitGo, a new blockchain security company has announced that it has being approved to offer cryptocurrency custody services in the United States. As noted by CCN, this approval will have a major impact on growth of the company especially now when large institutional investors are reluctant to invest more money due to the substantial risks associated with provision of these services. According to a press statement from the company on Thursday 13th September, the regulatory approval was in form of a state trust company charter from the famous South Dakota Division of Banking. At the time of writing, BitGo is now the only regulated custody service in the market that is offering digital asset storage services in the country.
“Bitcoin enables certain uses that are very unique. I think it offers possibilities that no other currency allows. For example the ability to spend a coin that only occurs when two separate parties agree to spend the coin; with a third party that couldn’t run away with the coin itself.” – Pieter Wui (66 points, 14 comments)
Improvements to the way of managing money seem to have seen each day. Innovators in the world are always in an attempt to look for solutions to replace cash with digital assets, and eventually fiat currency with a digital replacement. As the need for this becomes imperative, you are forced to find ways of achieving it and there is no doubt that the instability of the Zimbabwean economy brings chances to innovation. Not so long ago, the Zimbabwe dollar was battered by hyperinflation. From 2003-2009 a series of land reforms and currency devaluations turned Zimbabweans into poor trillionaires. 2008 is the most terrible year of inflation, estimated at 79,600,000,000% per month. Therefore, paper currency has no values. Four failed devaluations later the government officially abandoned the Zimbabwe dollar in spring 2009 – just months after the first BTC ledger was recorded. https://preview.redd.it/gzk7f8wperh11.png?width=650&format=png&auto=webp&s=8b18c4a81279b6c5f20d52bbeba121fb16ea2913 Zimbabweans reluctantly accepted US currency and the neighboring South African Rand. Most transactions stayed off the books in a shadow economy that has come to dominate the markets. In a recent IMF study, it was estimated that about 90% of Zimbabweans work in the informal economy, which is driven by cash. This meant that people have been excluded from accessing traditional banking services. To address this problem, a mobile payment solution called Ecocash introduced by Zimbabwe’s largest wireless network has become a lifeline for people historically locked out from traditional banking services. The system is centralized and has particularly high fees for transfers beyond Zimbabwe, limiting the vital flow of remittances from the Zimbabwe diaspora. https://preview.redd.it/qmt8hg1serh11.png?width=650&format=png&auto=webp&s=292cd1cc46e152bd9d9bb961cac25a51e45e617b Zimbabweans enable to pay tolls, pay employees’ salaries, receive their own salaries, and pay shopping bills all through their mobile phones. Meanwhile, the lack of trust in notes ]pegged to the US dollar means that they are frequently rejected by citizens, and often shopkeepers are still obliged to make change with cigarettes and gum due to a lack of coins. So, cryptocurrency innovators made a tangible difference in a struggling economy. Despite a series of flip-flopping court rulings, Golix, the country’s largest crypto exchange, continues to deal in Bitcoin, DASH, and Bitcoin Cash. And now Kuvacash, a new crypto payments platform is offering its services through the DASH blockchain. DASH can process a payment in milliseconds at a minimal price, and anyone with a mobile number can use the Kuvacash system. The Reserve Bank of Zimbabwe has approved the project, and a team of dedicated entrepreneurs seek to bring the crypto revolution to a market that can use it the most. When your country’s currency no longer has any value, just create your own.
Chelwa expressed fears that the appointment of “pliant” Mvunga as Kalyalya’s replacement, means Zambia might be following the path walked by Zimbabwe until its economy collapsed in 2008. The Zimbabwean dollar seems unable to prevent yet another cycle of hyperinflation, while demand for Bitcoin continues to rise; Zimbabwean are experiencing some serious deja vu with the Zimbabwe currency collapse, since the national fiat currency is once again collapsing, and this is leading to a surge in crypto use. BitcoinFundi is a bitcoin exchange based in Zimbabwe. Find out everything you need to know about the exchange today in our review. What is BitcoinFundi? BitcoinFundi is a Zimbabwe-based cryptocurrency exchange that aims to make it easier for people across the continent of Africa to buy and sell cryptocurrencies.The company launched as a bitcoin exchange. The official currency of Zimbabwe is the RTGS dollar or Zim dollar. As you have just heard it is called RTGS, if it is the money on your bank account – RTGS is short for real time gross settlement. So it is called what it is, electronic money – an entry in a database. If it is in the form of cash, it is called Bond notes or Bond coins. These are the Zimbabwean Dollar paper notes. Cash. In ... The Index cites Zimbabwe’s vast informal economy and history of financial crises as key factors that could drive bitcoin adoption. But while Zimbabwe’s conditions are unique, digital currency experts believe it offers a valuable test case for the viability of bitcoin on a national scale, which could have global implications. “The underlying takeaway is that cryptocurrencies are here to ...
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