How will Blockchain-enabled Smartphones Impact the Growth of Cryptocurrencies?

Colleagues, Sirin Labs, CryptoKitties and HTC have all announced plans to launch smartphones with Blockchain capabilities on-board. Some of these phones will have DAPPS and allow offline storage of cryptocurrencies which is a key step toward improved crypto security. This leads to two critical questions. First, will the smartphone market leaders Apple and Samsung follow suit and pre-integrate Blockchain into future versions of their smartphones? And second, what will be the number and breadth of cryptocurrencies which can be managed by these phones – this includes wallet, trading-exchange and perhaps even pre-integrated mining capabilities? We know that the HTC Exodus phone will be enabled to manage both Bitcoin and Ethereum. An excellent start. The other key player here is Google Android. If the Sirin, CryptoKitties and HTC phones gain market traction the Cryptocurrency Academy predicts that other Android device-based vendors will heavily lobby Google for Blockchain capabilities integrated on-board with Android. Collectively, this move could be a major catalyst for cryptocurrency adoption during the next 12-24 months. Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

PowerGhost cryptojacking malware poses a new threat which jeopardizes legitimate cryptocurrency mining

Colleagues, crypto mining remains one of the weakest links in the cryptocurrency ecosystem and in turn a high priority target for cyber criminals. Although not as numerous as personal computers and laptops, corporate servers and workstations typically far more computing power which makes them such attractive targets to cryptojackers. PowerGhost, recently reported by Kaspersky Lab’s is a fileless malware which injects a one-line PowerShell script is run that downloads the miner’s body and immediately launches it without writing it to the hard drive. This malware has been detected in third world countries including Tukey, India, Brazil and Columbia. Malware like PowerGhost is especially a threat to cloud-based computing environments.  Now that the prevalence of the problem has been observed and noted, service providers may wish to extend capabilities they already have to find and flag this content. Bottom line: Cyber criminals relentlessly exploit the weakest point in any ecosystem. Given the meteoric growth of the cryptocurrency ecosystem all participants needs to be equally relentless in keeping their OS and application software up-to-date and installing patches as soon as they are released. Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Will a central bank cryptocurrency enable Iran to evade US economic sanctions?

Colleagues, with US economic sanctions to take effect in August 2018 Iran’s government is renewing its quest to establish its own cryptocurrency backed by the country’s fiat currency – the “Rial”.  This plan is being led by the government’s Science and Technology Department in coordination with the Central Bank of Iran. This move is not unexpected as Iran’s economy struggles and the pressure from US sanctions mounts. Two broader questions emerge. First, will other rogue nation-states such as North Korea, Syria, Sudan, and Venezuela seek to implement their own cryptocurrencies … and with what backing? We do know that Venezuela intends to back their cryptocurrency with the price of crude oil. And second, are we seeing the bifurcation of the global cryptocurrency ecosystem into legitimate first world and underground thirdworld currencies … each with their distinct exchanges and protocols? The Cryptocurrency Academy believes this assume is valid and that the next 24-36 months will in fact witness two parallel crypto ecosystems develop. Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

What impact will BitGo’s Predictive UTXO Management have on crypto transaction fees?

Colleagues, transaction fees have been a major stumbling block for cryptocurrency traders and investors alike during the past 2-3 years. As trading volumes increase historical data suggest that transaction fees rise accordingly. BitcoinCharts Transaction Fee Historical chart clearly shows that fees reached about $58 in late December 2017, however, fees have fallen back to around $1 as of July 2018. With the launch of BitGo’s predictive UTXO (unspent transaction output) management solution the open issue is whether lowering transaction fees – especially during peaks in trading volumes – will lead to increased transaction levels? Yes, UTXO early adopters like Civic and Bitstamp fully expect that the answer will be a resounding “yes”. The bigger challenge will come from the largest Bitcoin exchanges Binance, OKEx, Huobi, UpBit, BitFinex and BitHumb? The bottom line: In the near-term (12-24 months) the Cryptocurrency Academy predicts that crypto traders with high transaction volumes of low-medium BTC value (e.g. under 100 BTC) are the likely beneficiaries. By contrast, institutional crypto investors will lower transaction volumes of over 1000 BTC will see far less benefit. Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Does AMD’s Q2 Revenue Drop in GPUs Portend a Decline in Industry-wide Crypto Mining?

Colleagues, although AMD’s primary competitors are Intel and NVidia, its 3% decline in sales of GPUs for crypto miners is cause for concern. Yes, crypto mining sales account for only 6% of AMD’s total revenue. Nonetheless, the question remains: Is this revenue miss a one quarter aberration, is AMD losing market share to other crypto ASIC miners or is the crypto mining segment as a whole facing a slowdown? And what is the overall health of Bitmain, DragonMint, Titan V (NVidia) and Avalon? We do know that crypto mining in aggregate is highly correlated to price fluctuations in Bitcoin which reached an all-time high of $19,009 on December 18, 2017 and now has struggled to reach $8405 today. Other key factors in crypto ASIC mining demand include the price of Altcoins such as Ethereum, Ripple and Litecoin, along with the cost of electricity in China and Central Asia. Ultimately we need to examine the supply-demand ratio for ASIC mining rigs. Bottom line: While overall demand for cryptocurrency continues to expand at what point does the supply of available crypto tokens become limited? Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

How exposed are traders and investors to Crypto Exchange Fraud?

Colleagues, while cryptocurrency fraud is nothing new, the vast proliferation of exchanges, ICOs and investment funds should send a strong signal to traders and investors alike: Exercise extreme caution and perform 360 degree due diligence before you invest. Yes, many exchanges, ICOs and funds are legitimate. Nonetheless, the recent arrest of Jon Montroll by U.S. authorities in connection with crypto exchange site WeExchange and securities investment platform BitFunder and crypto exchange site WeExchange raise even more red flags. Some of the most common fraudulent tactics taken by crypto criminals include ICOs with no real coins (e.g. HoweyCoins), pump and dump strategies, pyramid and Ponzi schemes and crypto exchanges with questionable track records … at best. The Cryptocurrency Academy offers two baseline recommendations. First, for traders do not deposit personal funds that you are not prepared to loose. Stay with the established top-tier exchanges like CEX.io, Kraken, Coinbase, CoinMama, GDAX (CoinBase Pro) and Paxful. For institutional investors, use trusted investment firms and banks who will perform the due diligence for you – at a cost – however, also provide a much higher level of security and confidence. The growing list of players here include JP Morgan, Goldman Sachs as well as professionally managed crypto funds from the likes of Fidelity, Vanguard and Charles Schwab. Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

How effective will the Honeyminer App pool allow the masses to earn Bitcoin through their laptops?

Colleagues, yes many cryptocurrency mining pools tap into end-users’ servers, desktops and laptops allowing them to earn currency when their GPUs are not in use. Enter the Honeyminer App pool. This app concentrates on GPU-intensive currencies such as Zcash, Monero, Ethereum Classic and Ethereum. The Honeyminer App value proposition is simple for those with little investment capital: Earn Bitcoin by outsourcing your GPU as a means of generating incremental income (aka “crypto mining for the common man”). And Honeyminer Pro (currently on wait list status only) will allow owners of professional mining systems to participate as well. Based upon block size thee app rotates its mining activity between different currencies every 10 minutes. So how does Honeyminer compare to the top rated crypto mining pool including EasyMiner, MultiMiner, BFGMiner, CGMner and BitMiner? The Cryptocurrency Academy believes the answer lies in the array of cryptos being mined and the number of cryptos that can be earned. Send us your comments today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)

Is the Future of Crypto Exchanges in the Cloud? Consider the Huobi Cloud

Colleagues, according CryptoCoinCharts Huobi is the world’s fourth largest cryptocurrency exchange. Known as the “Huobi Blockchain Plus Industry Alliance" over the past few months the cryptocurrency exchange giant has been making efforts to build stronger networks for the Blockchain industry. The Huobi Cloud comprises of four approaches, including exchange, operational, OTC, and eco-system solutions. Bottom line: Will Binance, Bitfinex and HitBTC follow in Huobi’s path? Our view at the Cryptocurrency Academy is only after the Huobi Cloud exchange is stress-tested for transaction speed, the integrity of smart contracts and especially security will the crypto “Big Three” adopt cloud-based exchange solutions. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Will Dark DAO attacks undermine Blockchain delegated “proof of stake” voting and threaten Cryptocurrencies?

Colleagues, decentralized autonomous organization (aka “Dark DAO”) is a clear and present danger to the integrity of Blockchain voting. In an effort to formalize software decision-making process using smart contracts, Blockchain initiatives such as Decred, Tron, Polkadot, Tezos and EOS have used this technique to manage the governance of their code. Dark DAO strategies seek to manipulate the voting process. Low voter turnout gives Dark DAO cyber criminals the upper hand by allowing them to control the decision-making process. Bottom line: Dark DAO places power in the hands of the few which then seek to dominate voter participation. Thus, not only does Dark DAO effect Blockchains, but potentially undermines the cryptocurrencies on which they are based. Mitigation strategies appear questionable at best. More to come on this crucial subject. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Has Cryptojacking become the method of choice among cyber criminals?

Colleagues, some 32% of cyber-attacks as of mid-2018 are attributable to crypto mining malware as compared to only 7% of attacks coming from more traditional ransomware. These figures come from SkyBox Security’s 2018 Mid-Year Vulnerability Threat Report. Some analysts believe this shift is due to 1) The dramatic increase in global crypto mining activity, and 2) A trend for victims of ransomware attacks to simply refuse to pay the price – financial or other – demanded by the attacks. Some 21% of cryptojacking attacks are due to the cyber criminals targeting Cisco routers, including the VPNFilter, ASA and Smart Install. How can the top tier mining companies such as Bitmain, Hut 8, Bitfury Mines, Genesis Mining Enigma, Bcause LLC and GigaWatt mitigate this pervasive threat? Start by closely implementing any and all patches - and related tactics - from the Cisco Security Advisories (or other router vendors such as Juniper and Huawei). Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Blackrock to explore Blockchain and Cryptocurrency sphere – No surprise here

Colleagues, the Cryptocurrency Academy predicted last month that we would see several large commercial banks and asset management firms will actively participate in the global Blockchain and Cryptocurrency arenas during the next 24-36 months. Since then have seen Goldman Sachs and JP Morgan – not to mention MasterCard - state their intentions to do just that. Without question adoption of Blockchain-based distributed ledger technology increase transaction speed while reducing OPEX is a de facto no-brainer for financial institutions. This will take time and R&D investment and more than a few such entities have filed Blockchain patent applications. We have also seen the steady rise in third party cryptocurrency Custodial Services. For many the next step is the establishment of crypto trading and investing services. Blackrock CEO Larry Fink is on record as saying that none of Blackrock’s institutional clients have “sought crypto exposure”. That is, for now. We expect that to change in the near future. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Can Robinhood Effectively Compete Against the Top-Rate Crypto Trading Apps?

Colleagues, Coinbase, Bitworth, CryptoTrax, Zapo, Delta (aka “CoinDash”), Enjin, BTC.com and Investing.com-Cryptocurrency are among the most popular mobile apps available on both iOS and Android. These apps are commonly used by “millennial” crypto traders rather than institutional crypto investors. These apps are commonly viewed as “most popular” based upon 1) The number of cryptocurrencies they are equipped to trade, and 2) The market cap of the crypto assets they can trade (see CoinMarket Cap). Enter Robinhood. With much marketing fanfare the Robinhood app was designed with millennials in mind and began offering Bitcoin and Ethereum (the crypto assets with the largest market caps) earlier this year. Last week Robinhood announced that it would now trade Bitcoin Cash and Litecoin. Bottom line two-fold question: 1) Can Robinhood – despite the number of crypto assets it can trade compete against the more established apps, and 2) Just how many mobile trading apps does the global crypto sphere really need? The Cryptocurrency Academy predicts a pending shakeout and consolidation of crypto trading apps over the coming 24-36 months. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

The Battle to capture Institutions for Crypto Custody Services Heats Up

Colleagues, firms such as BitGo, Ledger, Coinbase and Madison Trust are all vying for institutional clients for their Cryptocurrency Custody services. Custodian services catering to large institutions is a growing and vital element of the broader cryptocurrency ecosystem. Such competition is one more indicator that crypto assets are crossing the chasm from individual traders to corporate and heavy weight institutions. For example, Madison Trust offers both Directed and Self-Directed IRA instruments for RIAs. Registered Investment Advisors are required to annually register with the SEC and disclose any conflicts of interest they have regarding the transactions they execute for their clients. A key data point is the Charles Schwab RIA Benchmarking Study which show steady grow in custodian services. While this study is rather conventional, what is really needed is a comparable benchmarking study of crypto assets under custodial management. The Cryptocurrency Academy fully expects crypto assets to comprise an increasingly higher percent of all assets under RIA management. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Are we approaching an Era of Regulatory Approval of Crypto Investments in the Global Equity Markets?

Colleagues, South Korea and the UK are recognized as nations which are rapidly adopting cryptocurrencies along with a push toward strengthened regulatory environments. During mid-late July of a number of South Korean political parties are expected to propose legislation focused on regulating cryptocurrencies, ICOs and Blockchain-based investing. Concurrently, the UK is moving toward public companies with equities which can tokenized and issued within a fully compliant custody, settlement and clearing systems. Two small firms - 20|30 and Nivaura – are providing distributed ledger and corporate equity issuance. So how do these trends bode for the rest of the first-world cryptocurrency arena? The Crytocurrency Academy assumes that government regulators in the US, China, Russia and beyond are closely monitoring these developments. Moreover, if and when these programs transition from pilot to mass adoption other nations will closely follow. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Do Blockchain Firewalls Represent the Next Generation of Internet Security?

Colleagues, amid the fanfare of R3’s recent launch of the first Blockchain-based firewall the fundamental question is whether Corda Enterprise does in fact represent a new era of improved network and Internet security? Corda states it is able to limit communication between Blockchain nodes operating in different environments, and with different informational needs from their network. in any Blockchain architecture each node uses point-to-point messaging to communicate with other peer nodes. It would be naïve to deploy the Blockchain node in the DMZ with a public IP address. By targeting specific nodes, an attacker can influence how consensuses are reached and possibly even halt the Blockchain operation. To provide additional security to the Blockchain nodes. One technique is to filter network traffic, thus implementing a firewall for Blockchain applications. Cisco projects they can provide access control functionality which can effectively mitigate flooding attacks from multiple sources at simultaneously. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Are we seeing the emergence of a dualistic world order for Crypto Exchanges?

Colleagues, as if the crypto universe needs another twenty-five exchanges. Well the Philippine government appears to foresee economic growth and the opportunity to compete with the US, China, the Ukraine, India and South Korea. Formation of the special economic zone recently approved by the Cagayan Economic Zone Authority (CEZA) to serve both purposes. Bottom line questions: 1) Just how many crypto exchanges does the world need? and, 2) Can the Philippines financial and regulatory environment attract top-tier exchanges? The Cryptocurrency Academy is pro-competition, yet we question the ever-increasing number of exchanges around the globe … when in fact the five largest exchanges manage some 75% of all crypto transactions (see Crypto Coin Charts). We see the emergence of a dualistic crypto exchange world order whereby the 5-10 largest exchanges control the majority of “first-world” transactions in a reasonably secure and transparent manner. And in contrast, a multitude of micro- and/or specialty- exchanges process transactions for the “darker” side of the crypto world with little regulation and appeal to traders who seek to keep their transactions away from public scrutiny.  Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Bittrex & Invest.com: Does the Cryptocurrency World Need Yet Another Trading Exchange Platform?

Colleagues, US-based Bittrex and invest.com, a fintech startup based in London plan to launch a new EU-focused crypto trading platform. Skeptics abound as these same two firms had a false start earlier this year with the Zodiac exchange that was aimed at the retail market. The exchange in question has yet to be launched and information online regarding the platform has been sketchy at best. According to Crypto Coin Charts the five largest exchanges based upon overall trading volume are: Binance, BitFinex, HitBTC, Houbi and Coinbase GDAX. In aggregate these exchanges process some 75% of all cryptocurrency transactions worldwide. From a macro perspective the crypto segment is still in its infancy and the need for innovation is great. The Cryptocurrency Academy believes that a bona fide next gen platform which can manage multiple currencies with a high degree of security, speed and usability is needed. Bottom line question: Is the crypto world better off improving existing exchanges or developing new “purpose-built” exchanges? You make the call. Post a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Is the new Ethos Universal Crypto Wallet truly Universal, Convenient and Secure?

Colleagues, the Cryptocurrency Academy applauds the introduction of the Ethos Universal Wallet. The goal of a wallet which enables traders and investors alike to manage all their cryptocurrencies and tokens from one mobile device is a noble endeavor. This wallet was initially launched on Android with plans to introduce an iOS version in the near future (date – to be determined. Universality, security and convenience are three critical success factors for any crypto wallet. With new cryptocurrencies and next gen versions of existing currencies continuously coming to market only time will tell just how universal this wallet really is. A mobile app-based wallet surely is convenient. However, the fact that this is a software-based wallet raises significant security concerns in comparison to hardware wallets, particularly the Ledger Nano S, Trezor Bitcoin and the KeepKey wallets. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Are We Approaching an Era Where Cryptocurrency Transactions Can Increasing Be Tracked?

Colleagues, money laundering, illicit drug transactions and nation-states seeking to side-step trade sanctions have all sought refuge via the use of cryptocurrencies. However, the emerging crypto world order may in fact be an era in which such transactions can in fact be tracked. The cyber security struggle between good and evil is playing out before our eyes as central banks (e.g. US Federal Reserve) and regulatory entities (e.g. the US SEC) seek the upper hand against crypto cyber criminals. Firms such as CipherTrace, Chainanalysis and Bitfury are introducing tools designed to gain insight into crypto transactions. Bottom line question: Which side of the crypto privacy vs. transparency ecosystem will succeed? The Cryptocurrency Academy predicts that not unlike other cybercrime and warfare, this will be a long-term dilemma whereby each side develops new technologies and tactics that the other will thwart or mitigate. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

The BetterHash Crypto Protocol Seeks to Pre-Empt Highly Centralized Stratum Mining

Colleagues, this is a follow-up to our recent post about alternative Bitcoin mining protocols. Well Bitcoin core developer Matt Corallo has officially launched BetterHash which offer a decentralized alternative to Stratum the most common BTC and much more centralized protocol used by AntPool and Bitmain. The goal is to give miners more control over block templates and help mitigate the risk of a government ordering a locally-operated mining pool to censor transactions. Moreover, BetterHash’s sub rosa plan appears to be to prevent Stratum in general, and Bitmain in particular, from achieving a 51% majority stake in BTC mining. So how well will BetterHash be accepted and potentially pre-empt Stratum-Bitmain’s control over BTC mining?  You make the call. Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Can a $2m Incentive Help Buglab Enhance Cryptocurrency Exchange Security?

Colleagues, the Coincheck, Bitgrail, Coinsecure and Coinrail cryptocurrency exchanges have all fallen victim to cybercrime thefts in 2018 alone. So what can be done to increase exchange security and bolster both crypto trader and investor confidence? Well, our friends at Buglab holding a hacking contest to uncover vulnerabilities in their platforms with a $2m BGL token prize. They are an Ethereum-based platform which helps exchanges around the globe resolve security weaknesses in digital solutions such as web apps, DAPPS, smart contracts and IoT. Major software and IT vendors such as Google, Apple and Microsoft commonly hold such security bake-offs to stress-test the integrity of their solutions. Crypto exchanges are often believed to be the weakest link in the emerging cryptocurrency ecosystem. The key question is which bugs can be identified combined with strong mitigation techniques? Share a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Is Bitcoin a “Buy” at $5,000? Mohamed El-Erian at Allianz Thinks So

Colleagues, despite today’s BTC gains it is a fair to say that when Mohamed El-Erian speaks people listen. Without doubt El-Erian is among the elite financial minds in the US, if not the world. The former PIMCO CEO, El-Erian believes that cryptocurrencies should be viewed more like commodities rather than sovereign bank currencies. What El-Erian did not say is as important as what he did say. He did not join the chorus of Bitcoin evangelists such as Jeet Singh and Tim Draper who predict than the crypto asset will reach stratospheric levels of $50K and $250k respectively. Bottom line: For long-term investors the Cryptocurrency Academy recommends that cryptocurrencies should comprise no more than 5% of your portfolio. Yet for some 20-something crypto addicts Bitcoin and Altcoins may in fact comprise a much higher percent of their assets. We stand by our previous claim that Blockchain technology-focused firms represent a far more tenable investment alternative. Post a comment visit us today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)