November 9

Ethereum is submerging: Bitcoin secret exchange rate below 200 US dollars

On the evening of 8 September, the Ethereum exchange rate broke through an important support and is currently at 190 US dollars. Thus the exchange rate has fallen to values of July 2017. An important support is currently being tested, and the indicators suggest that it could fall even lower.

Bitcoin’s fall a few days ago spoiled the day for traders with a long position and hodlers. But Bitcoin, as weak as the performance of the Bitcoin price is at the moment, can still hold its ground above the support this year.

In stark contrast to this Bitcoin secret is the Ethereum rate

With the sale not only the support was undercut at 286 US dollars. The Bitcoin secret exchange rate thus fell below the minimum of September last year. The Ethereum rate is currently testing support from the end of July. If this does not hold, the next Bitcoin secret price target would be 155 US dollars – the minimum from mid-July 2017.

Reasons: General market situation, (self-)criticism of ethereum and postponement of Difficulty Bomb
It is often idle to name the reasons for a fall in prices. In the case of Ethereum, however, there are a few Ethereum-specific points in addition to the reasons for the fall of the Bitcoin course: Ethereum has recently been criticized from various quarters. Christian von Stellar X explained why he would not host an Ethereum-based ICO. The well-known magazine TechCrunch even sharpened its focus: Jeremy Rubin argued why, in his opinion, Ethereum’s value proposition cannot be fulfilled.

What is really dramatic is that no one less than Vitalik Buterin Jeremy Rubin partly agreed with Reddit. Vitalik admitted, however, that this would only be due to the consensus mechanism:

This hopeful view of an Ethereum system with Proof of Stake, which is to become real with Casper, has now been postponed to one year via the EIP-1234. Strictly speaking, the Ethereum Improvement Proposal only postpones the Difficulty Bomb, but quite a few interpret this step in such a way that Proof of Stake at Ethereum must now wait.

Let’s summarize:

An already bad situation on the market, coupled with harsh criticism of the Ethereum system, which is partly shared by Vitalik, and an extension of the waiting time for Casper, which Vitalik believes would be necessary, are sufficient reasons for such a dramatic fall in prices.

BUILDL – The rescue of Ethereum
Is this the end of Ethereum? It doesn’t have to come that way. Quite apart from the fact that the currently tested support can also hold, it is now necessary to develop dApps on Ethereum. The Ethereum community must show that the crypto currency can do more than just be a platform for anyone in ICOs. This is not unrealistic: No matter if you look at FOMO3d, Augur or Golem: The second largest of all crypto currencies, with or without Proof of Stake, can be much more than a platform for token sales!

November 4

Bitcoin: NYDFS plans temporary BitLicense for crypto trader

LawskyThe New York Department of Financial Services (NYDFS) has announced that it is actively considering a temporary and customized BitLicense for Bitcoin startups and small businesses.

The specific licensing would allow Bitcoin startups to operate within a slightly more flexible legal framework for an unspecified period of time and to have their corporate structure reviewed.

Expected transaction and business volume for the crypto trader

The formal announcement of the NYDFS strategy for crypto trader change came from superintendent M. Lawsky during his keynote address at the opening of the five-day Money 20/20 conference. The crypto trader conference will be attended by Bitcoin’s big names such as Cameron and Tyler Winklevoss, Circle CEO Jeremy Allaire, and Blockchain CEO Nicolas Cary.

With prepared comments, Lawsky explained his department’s decision and clearly explained how the NYDFS responded to criticism from Bitcoin Communiy during the 90-day comment period.

Lawsky said: “A problem we’ve heard almost throughout the comment period is the cost of compliance compliance for new companies in the virtual currency industry… There has to be a way for startups to start doing business, or to be directly crushed by compliance costs.” Lawsky said.

In addition, Lawsky spoke of a possible small group of special auditors who will supervise such start-ups and examine their applications. They will then help companies to find their way through the jungle of regulations.

Determining factors

Lawsky introduced some factors that have an impact on the temporary BitLicense:
Existing risk reductions through bonds or insurance policies
The nature and focus of the company
Whether the company is already registered with FinCEN as a money service company
According to Lawsky, the latest draft of the NYDFS is characterized by the feedback received from the Bitcoin community. He also hopes that the letters from the community will be published soon.
Lawsky hopes that the NYDFS will strike a healthy balance between customer protection and the continued growth of the Bitcoin industry.
“We hope that many new and innovative companies willing to do the right thing will do a lot of business in New York, the financial capital of the world.

Consumer engagement
In the course of the speech, Lawsky repeatedly pointed out that, in addition to relieving Bitcoin startups, the protection of customers from illegal activities is still a priority.

“We cannot turn our backs on the vital task of preventing money laundering, which sometimes makes indescribable crimes possible,” Lawsky said.

Lawsky also said that startups must expect severe penalties for misconduct and that all companies subject to BitLicense must meet strict anti-money laundering (AML) and capital standards. For startups, however, there is also the possibility to outsource these risks:

“We had the same problem with smaller banks in the financial sector. We quickly noticed that if a company consists of 12 employees and 9 of them are compliance officers, that is not a healthy business model”.

Lawsky concluded by saying that the latest version of BitLicense will soon be released for revision and that the final version will probably be released in January.

November 1

New tricks of cryptosoft, but still the same old dog

All the technology will sound music to the ears of banks, merchants and payment processors. But for the Bitcoin community it’s more of a slap in the face.

For starters, Apple’s partnership with banks and payment processors keeps the already established system under control. The only thing that changes in the payment channel.

Apple Pay is therefore still a thorn in the side of the Bitcoin mission, bringing with it central financial control.

If cryptosoft wants to take on Apple Pay, it has to reinvent itself

Second, Apple Pay beats cryptosoft with the user experience. The entire ecosystem is very user-friendly and focused on the end customer. The company has spent years building a perfect design and a huge cryptosoft following that is second to none in the technology industry.

People understand the Apple Phones and thanks to Jony Ive’s team they will quickly understand the Apple Watch. They also long for the devices.

Bitcoin, on the other hand, continues to fight for mainstream acceptance. Despite the good news from PayPal, Circle and Stripe, the concept is still incomprehensible to many.

Bitcoin is by nature a grassroots movement. Bitcoin does not enjoy such a top-down organisation as Apple. Due to the many implementations, design, user experience and security are contradictory, making it difficult for the mainstream to understand Bitcoin.

It’s going to be a tough battle

Apple Pay will probably be successful because it attracts people in droves, no matter what control they have to give up and what advantages Bitcoin offers. History has shown several times that control is exchanged for convenience. If you have any doubts, just take a look at Facebook.

Of course, there are also advantages. If Apple Pay brings NFC technology to the market, Bitcoin can also use this technology. But Apple Pay will be there by then.

Apple Pay will not be able to erase Bitcoin, but it will establish itself very well. It will attract a large number of customers who want to make use of the convenient payment method, while Bitcoin still has a big challenge ahead of it: Bitcoin must evolve from a highly speculative commodity into a real currency used by millions of people every day.

Bitcoin must continue to work on this transition to bring more liquidity to the market and unleash its true potential.

So if the Bitcoin industry is serious about taking on Apple Pay, it needs to reinvent itself. Bitcoin has to market itself to people so technologically ignorant that people are willing to throw their iPhones into the microwave (yes, that really happened). This is not a really easy task.

Disclaimer: The views in this article are those of the original author and do not necessarily reflect the views of BTC-Echo.

October 26

Iceland: From Mining Site to Blockchain Hub

Iceland, with its cold climate and low-cost electricity, has attracted many crypto enthusiasts who sensed their great mining opportunity on the windy island at the Arctic Circle. After the onslaught reached its peak in December last year, the Icelandic mining business continues to decline. Experts now see the next – and possibly longer lasting – hype coming: the development of blockchain technology.

Iceland’s largest data center provider Advania had to contend with enormous demand from abroad last December. The cold climate and cheap electricity, 98 percent of which Iceland generates from geothermal energy, attracted many miners to the island. However, as the news portal Red Herring reported on September 23rd, Bitcoin’s fall and several thefts of mining computers soon cooled the mining euphoria. Instead of turning completely away from modern technology, many Icelandic companies are now concentrating on developing the blockchain.

Cowboys are moving out of Iceland

As a manager of Advania Red Herring pointed out, he had seen many “cowboys” who came to Iceland only because of mining and disappeared accordingly quickly. In particular, the cheap electricity had made the island the ideal location for Bitcoin mining. While the PUE, a value used to indicate the energy efficiency of a data centre, is 1.78 on European average, it is only 1.03 in Iceland. This makes Iceland almost twice as cost-efficient as many of its continental neighbours. So it is not surprising that many international mining companies such as BitFury and Genesis have found very cheap mining opportunities on the cold island.

Where a lot of money is suspected, imaginative criminals are not far away. Thus it came at the beginning of the year to several thefts of mining computers. Some of them could even have made it as far as China.

After mining comes the blockchain

The Icelandic government had not put a regulatory stop to the mining-hype. Nevertheless, it viewed the development with suspicion. The onslaught of a new branch of industry, which many still associate with the Silk Road, could not cause a storm of enthusiasm in politics. Nevertheless, he ensured that many people were interested in the world of Bitcoin and Co and the underlying blockchain technology. Halldór Jörgensson, Chairman of the Borealis Data Center, explains:

“The demand is for us to focus more on the pure blockchain business. So you could say that the Bitcoin wave, the big wave of Bitcoin demand, has helped us to build very quickly because there were really aggressive or interested parties who wanted to do something and we managed to build it. We firmly believe that the whole Bitcoin thing has been reduced to a level that isn’t as crazy as it was a year ago. We believe there is another wave that will take advantage of the infrastructure that was built during the Bitcoin mining phase.”