A Gathering Storm: US SEC and International Governmental Bodies Seek to Regulate Cryptocurrencies

Friends, it is not too far of a stretch today suggest that Cryptocurrencies and Trading Exchanges are going through a “Wild West” early growth phase where almost anything goes and attempts by governmental entities worldwide are viewed with great skepticism at best. The quintessential example is Bitcoin and the US SEC. Flying under the radar has suited first gen Crypto traders, ICOs and Exchanges just fine. So why not keep it that way? As the aggregate value of Cryptocurrencies, including the advent of sovereign ICOs, and Exchanges has increased exponentially over the past 18 months they are now nearing the center of the radar screens of governmental regulators, most notably the US SEC and the UK FCA (Financial Conduct Authority). Bottom line: Will the impending level of “appropriate” government regulation impede the near-term explosion of Cryptocurrencies or pave the way for a more legitimate next wave of legitimate growth undergirded with governance, transparency and integrity which could bolster Cryptocurrency mainstream adoption for years to come? Let us know your thoughts today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Bitcoin is to Cryptocurrencies as Blackberry was to Smartphones

Friends, our thesis is that the market leader(s) in the early phase is of as new technology or business paradigm is likely to be usurped by a new solution or vendor in the late early adopter and mass market phase of market adoption. Case in point – the race toward a multi-function mobile communication device for the masses. For several years RIM’s Blackberry phone was viewed as an innovative and market leading device. However, after years of trial and error, false promises and failure to meet expectations Apple’s iPhone became the breakthrough product which revolutionized the mobile communications segment worldwide. The same principle likely holds true in the global Cryptocurrency arena. Bitcoin is the unrivaled leader in the Phase I of Cryptocurrency solutions. Nonetheless, our thesis is that within three-five years a new transformational (2^nd or 3^rd generation) product will dominate the Cryptocurrency space … just like the iPhone transformed the smartphone sector. The obvious questions are which currency with which features and ecosystem will emerge … and when? Share your prognostications with us today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Cryptocurrencies Test the US First Amendment: Should Crypto Ads be allowed on Social Media Sites?

Friends, this post concerns the nexus of Cryptocurrencies, Social Media and the US Constitution. Social media in general and Facebook in particular, are under enormous scrutiny around the world for their integrity, security and transparency. And while Cryptocurrencies as of early 2018 are aggressively seeking to go mainstream, many in the “traditional” side of currency trading still view them as highly speculative instruments. Thirdly, in the US free speech is highly protected via the 1^st Amendment to the US Constitution. Yet, where does that leave us when we consider placing online ads (aka free speech) for the Cryptocurrency ecosystem (which most would acknowledge is undergoing birth pains … at best) on largely unregulated Social Media a la Facebook, Twitter and for good measure …  Google AdWords? Purist will likely respond absolutely yes, however, our perception is that there is growing antipathy towards this three-way marriage among practitioners and regulators alike. What is your assessment? Send us your thoughts today. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

How Will Enhancements to Smart Contracts Bolster Blockchain Adoption?

Friends, Blockchain, promises the ability to improve the business processes that occur between companies and lowering the “cost of trust.” This technology may offer significantly higher returns for each investment dollar spent than most traditional internal investments. Credit Suisse has published a nice primer on this topic - download here and take a look. A Smart Contract   is simply a piece of code which is stored in the Blockchain network (on each participant database). It defines the conditions to which all parties using contract agrees. So if required conditions are met certain actions are executed. As the smart contract is stored on every computer in the network, they all must execute it and get to the same result. This way users can be sure, that outcome is correct. These smart contracts are extremely valuable across a wide variety of industries. They eliminate the need for (and fees of) intermediaries and allow transactions to run extremely smoothly. As the regulations and security behind these smart contracts grow stronger in 2018, their adoption will increase. Smart Contracts essentially remove the need for expensive third party involvement to process a transaction. Speed, security and especially OPEX reduction lie at the very core of Blockchain’s value proposition. What is your assessment of Smart Contracts? Send us your thoughts. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

When Will Amazon Begin Accepting Crytocurrency Payments?

Friends, with Amazon's market leadership and voracious appetite for innovation begs the question regarding when the behemoth will begin accepting cryptocurrencies as payment for goods and services? Likely beginning with Bitcoin and subsequently expanding into more robust second and third generation cryptocurrencies, Amazon is poised to rise a payments tsunami and reap the incremental sales and revenue benefits. But not so fast you say, a Global 100 transaction-based B2C firm will undoubtedly conduct multiple customer trials to both hone their payment processing model ans well as determine the sweet spot when it comes the number and selection of one or more cryptocurrencies it accepts. Transaction speed, security, scalability and integrity are all "red flag" issues which must be addressed bore this type of payments paradigm shift will occur on a high-volume and global scale. Let us know your predictions here at the Cryptocurrency Academy (https://coinmarketcap.com/all/views/all/), Lawrence

Can Hashgraph Accelerate the Global Adoption of Blockchain?

Friends, as Blockchain begins to move beyond the cryptocurrency arena and transition from its early adopter phase into the mid-market for mass adoption it surely will face many barriers. Enter Hashgraph. Unlike Blockchains in use today, Hashgraph employs the Gossip Protocol, which is a computer-to-computer communication based upon the similar method used by social networks to disseminate information. Every event in a Hashgraph-based Blockchain occurs immediately and is communicated to all other computers in the network. Thus ensuring secure, fair and faster transactions. Bitcoin’s seven transaction per second is exceeded by a quantum leap with Hashgraph which processes hundreds of thousands of transactions per second. Let us know your assessment of Hashgraph’s potential impact on Blockchain adoption within and beyond cryptocurrency transactions. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

How Effective Can Blockchain Token Credits be in the Battle against Climate Change?

Friends, we all know that the potential applications of Blockchain go far beyond the realm of cryptocurrencies. Despite the US’ departure from the Paris Accord can Blockchain be used to successfully manage tokenized credits for carbon emissions between the private sector and government regulatory bodies worldwide? Commercial entities – especially in the manufacturing sector – likely will manage excess carbon emissions throughout their supply chains to create carbon neutrality while firms such as privately held Zerofootprint Software and CarbonX Personal Carbon Trading can enable and individuals to manage their carbon emissions. Undoubtedly other vendors and exchanges will rapidly enter this niche. Send us your predictions today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Which Third Generation Blockchain Platform(s) Will Succeed in 2018?

Which Third Generation Blockchain Platform(s) Will Succeed in 2018? Friends, like any new technology such as smartphones, A.I., machine learning, Blockchain will surely undergo multiple generations before a sustainable market leader or leaders are established.  Blockchain expansion and adoption will reach escape velocity once four critical barriers are addressed: Security, Governance, Scalability and Interoperability. Among the contending third gen platforms vying for the role of market leadership include ICON, Cosmos, Polkadot and Aion. A central element to consider is that unlike their forerunners these emerging platforms are “purpose-built” from the ground up and allow dissimilar systems to communicate. Share your picks with us today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Will Next Generation Cryptocurrencies Facilitate Trans-Border Trade and Monetary Transactions?

Friends, cryptocurrencies have the potential to increase transaction speed and reduce the cost of trans-border trade and financial transactions. Ripple purports to conduct 1,500 transactions per second, than six times faster than PayPal. What's more, Ripple's transactions comes in at just a fraction of a cent, which could prove significantly more attractive than PayPal, depending on the sender and receiver of funds. Ripple's transactions comes in at just a fraction of a cent, which could prove significantly more attractive than PayPal, depending on the sender and receiver of funds. Transaction speeds vary widely among cryptocurrencies. While currently limited to cross-border payments involving British pounds and Fijian dollars, the early-stage platform is nonetheless designed to scale to handle seven fiat currencies in the South Pacific - including the Australian dollar, the New Zealand dollar and the Tonga pa'anga. Perhaps the platform's most distinguishing characteristic, however, is that the project showcases how private and public Blockchain technologies are increasingly being used in tandem. While IBM's Blockchain solutions are designed to complete much of the workflow around transaction clearing, the actual settlement will be conducted using Stellar's Blockchain. What is your assessment? Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Reuters Prepares to Release a new Bitcoin Sentiment Tracker

Friends, it is quite easy to feel overwhelmed by the vast volume of news, ICOs, vendor announcements, etc. concerning the Bitcoin, Cryptocurrency and Blockchain arena. To help us separate real news from the chatter Reuters and its partner MarketPsych Data will scan over 400 portals to select the most relevant market-moving developments and convert them into a tradeable index as part of a new version of its MarketPsych Indices service. Bottom line: Less is more and quality is far more important than quantity of information for traders, investors, VCs, bankers and researchers alike. The goal here is on intelligent “tradeable” information. Send us your thoughts. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Will Gold-Backed Cryptocurrencies Outperform Bitcoin, Ethereum and Litecoin?

Friends, a token or coin is issued that represents a value of gold (for example 1 gram of gold equals 1 coin). The gram of gold is stored by a trusted custodian (preferably third party), and can be traded with other coin holders. Some countries starting with Kyrgyzstan in central Asia plan to issue their own national cryptocurrencies backed by gold. If the cryptocurrency becomes popular then the price of the coin can potentially increase in value, greater than the value of gold. Much more mainstream is the UK’s Royal Mint, the government institution responsible for producing all the physical money the country has for circulation, which has announced the launch of its own gold-backed cryptocurrency. It is a Blockchain-based coin called Royal Mint Gold (RMG), is a digital representation of gold. Thus, the key question for investors and researchers alike is simply this: Will gold-backed currencies outperform other cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc.? Send us your comments. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

At the Intersection of Blockchain and Big Data

Friends, most of us know that Blockchain is an enabling technology that is poised to transform industries and their business processes. Even more exciting is the potential when Blockchain is integrated into other emerging technologies such as Machine Learning, AI and Big Data. Such nexuses are boni fide strategic multipliers. Big Data analyses are performed by building models, based on the data we can collect, and then running simulations, modifying the value of data points each time and monitoring how it impacts our results. Blockchains greatly improve transparency in data analytics. Unlike previous algorithms, Blockchain design rejects any input that it cannot verify and is deemed suspect. Analysts in industries like Retail only deal with data that is completely transparent. The customer behavior patterns that Blockchain systems identify are likely to be much more accurate than it is today. That is the concept. But in reality will the nexus of Blockchain and Big Data fulfill this vision? Send us your comments. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Assessing the Impact of Blockchain on Anti-Money Laundering (AML)

Friends, Blockchain provides users with a digital public record of Bitcoin transactions (the digital currency through which these transactions are conducted) that have been executed by a particular entity. It is inherently difficult for hackers to manipulate. Copies of the Blockchain are distributed across potentially thousands of participants in the database. The results is that hackers would have to individually access and manipulate every single copy of the distributed Blockchain. Leveraging a Blockchain platform for AML nationwide or across a geographical region will give regulators, auditors and other stakeholders an effective and powerful set of tools to monitor complex transactions and immutably record the audit trail of suspicious transactions across the system. We believe that Blockchain applied to AML has great potential benefit to the banking and securities institutions such as the US SEC and FINRA. And in turn, may also help impede nefarious transactions of state-sponsored terrorism and mitigate strategies intended to subvert economic sanctions placed on Russia, Iran and North Korea. Send us your views. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Can the Quantum Resistant Ledger (QRL) protect Blockchains from Quantum Computer Security Risks?

Friends, the Quantum Resistant Ledger (QRL) project is a public Blockchain ledger designed to be secure against quantum computing (QC) advances. Unlike existing ledgers, the QRL is specially designed to use a form of post-quantum secure signature for transactions called XMSS. The QRL also uses a low power proof-of-stake (POS) algorithm which again utilizes iterative hash-chains and provably secure hash-based pseudo random number functions. The POS algorithm is designed to have zero reliance upon conventional signatures which are vulnerable to a sufficiently powerful QC and allows nodes to run on low power devices such as raspberry PI’s or laptops and passively earn income by staking. Quantum computers, with their increased efficiency, could solve it much quicker with their better computing capabilities. This could make current encryption technology ineffective and question the use of Blockchains. Let us know your thoughts today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

A New Opportunity for Cryptocurrency Investors – the Coinbase Index Fund

Friends, when it comes to cryptocurrencies investors are beginning to have more options to select from. Most of the hype in the press and media is about individual traders who make or loose a fortune buying and selling Bitcoin, Ethereum, Litecoin, etc. I liken this to the Dot.com boom and bust of the late 1990s. In the past two years we have seen bona fide “investment” funds – both passive and actively managed – infiltrate the cryptocurrency and Blockchain arena including BLCN, BLOK, Bitwise HOLD 10 Private Index Fund, GBTC and many more. This list just grew by one – enter the Coinbase Index Fund which provides investors exposure to all digital assets listed on Coinbase’s GDAX exchange weighted by market cap. Investors must be US-residents and have a $10,000 USD minimum to invest. Send us your feedback. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

How will Blockchain transform the Cost of Trust paradigm?

Friends, a major goal of Blockchain technology is to save time and money for businesses and their customers -- the product of which will be increased trust and transparency in many currently opaque industries. As transactions are executed and settled on a distributed ledger (DLT), counterparties do not need to have an established trust relationship. Deloitte Technology Consulting believes a new "trust economy" is now developing around person-to-person Blockchain-enabled transactions that are not dependent on more traditional methods such as credit ratings or guaranteed cashier's checks. An immutable and distributed ledger can be more secure than even a centrally managed relational database because there is no single server or node to attack. Let us know your predictions. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Assessing the impact of Blockchain on the future of Personal Genomics

Friends, professionals with even a superficial understanding of know that Cryptocurrencies are only the starting point for Blockchain technology to transform business models far beyond financial services and currency trading. Enter Personal Genomics which has the capability to transform Healthcare and Medical Services. Application of Blockchain will be a lifeline allowing to upgrade the development of Personal Genomics enabling each person the owner of his or her genetic data. Nebula Genomics – an offshoot of Harvard Medical School plans to address challenges facing Personal Genomics by mapping individuals’ genetic blueprints. Other vendors that are rapidly entering this segment include Luna DNA, Gene Blockchain  Encrypgen  Luna DNA  Zenome Longenesis , and Zenome. What will be the future impact when two transformational technologies – Personal Genomic and Blockchain – meet in the laboratory and ultimately the global marketplace? For further insights see the Center for Genetics and Society’s article entitled “Personal Genomics Meets Blockchain” and send us your comments. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

What is the best Cryptocurrency Mining Software for Your Needs?

Friends, cryptocurrency mining is rapidly moving from the realm of established firms and well-funded start-ups to individuals who want to cash-in on the cryptocurrency tsunami. Individual mining will give you large yet irregular payouts, whereas as pooled mining will result in smaller and more stable payouts. AvalonMiner 741, BitMain Antminer S9, T-bao Ethereum Coin Mining Miner and  Miner Baikal Giant X10 ASIC Bitcoin Mining are among the leading ASIC hardware mining devices. But which software should you use? Four products are top of mind. Yes, opinions vary, nonetheless, consider four of the top rated products including BTCMiner, CGminer, BitMinter and BFGminer. You want to ensure you select software that supports ASIC mining. Share your comments at the Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com), Lawrence

How Can Blockchain Bolster Security for Federated Identity Management?

Friends, the intended purpose of Federated Identity Management (FIMS) is to enable registered users of a specific domain to access information from other domains without having to provide additional administrative information. So how can Blockchain enhance FIMS security or will Blockchain emerge as the backbone of a new universal Digital Identity System?? While Blockchain is not a security technology in itself, so the end game is to employ Blockchain as the underlying storage technology supporting a viable FIMS. Firms such as Credits.Vision, GEM, Ripple and many others are actively exploring this issue. What do you think? Share your comments with the Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com). See you soon. Lawrence

Can Cryptocurrencies Escape From Under the Silk Road’s Dark Web Legacy?

Friends, Silk Road’s origins date back to 2011, some two years after the birth of Bitcoin. Operating as an underground exchange hidden within the dark web, it was largely known as a marketplace for illicit products and services (e.g. contraband and narcotics). As we fast forward to 2018 Bitcoin and other cryptocurrencies are known to be used for legitimate as well as shady business transactions which buyers and sellers want to keep out of sight from sovereign governments, intelligence entities and public corporations. Potential examples – suspected although not fully verified – may include the illegal exchange of weapons of war and biological agents as well as the vast arena of drug transactions (e.g. Russia, Iran, North Korea, Afghanistan, and related cartels). So why does this matter? Bottom line: If Bitcoin, Litecoin, Ethereum and other cryptocurrencies are to become accepted mainstream vehicles for global trade and commerce they will need to shed their dark sides. Is this possible? Share your thoughts with the Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com) See you soon, Lawrence