The future of public corporation funding – equities, debt and ICOs? Consider the UAE, Philippines and Malta.

Colleagues, the UAE is considering a new law that would allow corporations to issue ICOs as an additional method of raising capital. For most investors in the Western hemisphere and the Pacific Rim this seems to be a radical move. Moreover, is raises two fundamental questions: First, would you invest in the equity and/or debt of a company that “needs” to raise funds via an ICO? Second, which corporations are most likely to issue a successful ICO? One may argue that only companies that have troubled balance sheets would turn to an ICO as a desperate move to raise capital. However, in response to the second question, what if that company was itself a successful global leader in the financial or technology sectors – companies such as Goldman Sachs, JP Morgan, Apple, Amazon or Google come to mind. To take this scenario one-step further, what if such companies also offered crypto custody services or as some have speculated, owned and managed their own crypto exchanges. (Note: Facebook has be rumored to fall into this category). We at the Cryptocurrency Academy prefer to focus on facts and not idle speculation. Ii is not unfathomable that what we observe in Malta, the UAE and the Philippines could be precursors to a brave new crypto world in the next decade. Food for thought. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Can “Forward Blocks” Propel Bitcoin Toward Mass Market Adoption in Lieu of Hard Forks?

Colleagues, establishing consensus among developers and users alike has been a critical success factor necessary for emerging technologies to cross the chasm from early adopters to mass market acceptance for decades. Bitcoin, with its roughly 51% crypto market cap share, faces a crucial junction as it seeks to increase block size without losing is faithful followers. Changes to BTC’s proof-of-work and block size are inevitable if the cryptocurrency is to maintain its technical and market leadership. However, Bitcoin needs to avoid dissension among its developers and users, similar to the infamous hark for of 2017 that splintered BTC into Bitcoin and Bitcoin Cash. Enter so-called “Forward Blocks”. Proposed by developer Mark Friedenbach, in theory this technique can make future changes to block size and POW backward compatible. If successful “Forward Blocks” would eliminate the technical and market carnage that are typically caused by “Hard Forks”. The trillion-dollar question remains: Will “Forward Blocks” be successful? Share your comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Security and buy-in from millennials cited as the two big drivers influencing the US Fed’s position on cryptocurrency

Colleagues, the US Fed’s Jim Cunha, Vice President for Treasury and Financial Services, offered up a prediction that the US government could adopt a Blockchain-based cryptocurrency within the next five years. We have previously stated such a move could take place within three years. Perhaps the reality of US Fed-backed cryptocurrency lies somewhere in between. Cunha’s remarks at a recent conference in Boston (akin to an East Coast version of South by Southwest) reveal some insight to the US Fed’s thinking. The major reservation shared by Fed officials is security of a central bank crypto and its underlying Blockchain. By contrast, the 30-year Fed veteran recognizes that millennials in aggregate have concerns about the old-school financial establishment – presumably government and private sectors alike – which makes them much more open to a national cryptocurrency than their gray haired “over 50” financial leaders of our current era. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

US DOJ Incites Russians Who Are Claimed to Have Used Cryptocurrencies to Fund Disinformation Campaign

Colleagues, by now it should come as no surprise that the US government has filed charges in absentia against seven Russian nationals suspected of engineering a disinformation effort to influence (read the indictment). The defendants are alleged employees of Russia’s infamous GRU Main Intelligence Directorate. In addition, it is no surprise that the defendants purportedly used Bitcoin and other un-named cryptocurrencies to fund their illicit tactics. Bottom line: The goal of this campaign was to influence and undermine the credibility of US-based sports “anti-doping” entities including the US Anti-Doping Agency (USADA), which claims Russian illegally, allows doping among its athletes to boost their performance and stature. Cryptocurrencies, chief among them being Bitcoin, were the means used to fund these illegal actions. Why use cryptocurrencies? Two reasons emerge. First, the defendants are believed to have “mined” their own digital assets (akin to printing their own money). Second, the lack of transparency when acquiring computers and related infrastructure to implement their disinformation efforts to move public opinion in their favor. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Will a bug in Bitcoin’s software lead to double-spend exploits of Altcoins which use BTC’s public code?

Colleagues, a recent bug in Bitcoin’s public code has led to the illicit printing of some 235 million Pigeoncoins. Although Bitcoin has released a software patch which altcoins, exchanges and mining pools can install to mitigate this bug, the specter of crypto double-spend cyber-attacks looms large. Double spending is a problem unique to digital currencies because digital information can be reproduced with relative ease. Bitcoin transactions take some time to verify because the process involves intensive computational power and complex algorithms, which can be measured in seconds or milliseconds. Two fundamental questions emerge. First, just how many exchanges, pools and altcoins use BTC’s public code? Given the size, complexity and global diversity of the crypto ecosystem this question is almost impossible to answer. Second, how many of these crypto entities will expeditiously implement the software patch before cyber criminals can perform double-spend transactions? Sadly, this question is equally difficult to answer. When in doubt we once again offer our baseline guidance: Stay with established (aka Tier 1) currencies, exchanges and pools that typically have more comprehensive security measures in place. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Google Moves to Prevent Cryptojacking via Illicit Chrome Extensions

Colleagues, as we have previously reported cyber security attacks, specifically cryptojacking via Internet browsers, has risen some 400% YoY from 2017 through H1 2018. Google Chrome commands almost 67% market share according to data from Statista. Earlier this year Google banned cryptocurrency-related ads from AdWords and placed major restrictions on apps and extensions on Google Play and the Chrome Web Store. Therefore, it comes as welcomed news for individual and corporate Chrome users that Google has taken the next step of adding more stringent rules for developers of Chrome extensions. Chrome, Firefox and Safari have been the primary targets of cyber criminals seeking to perform crypto mining by way of installing malicious code (aka illegal extensions) to mobile and desktop browsers alike. The Chrome Web Store’s Developer Program Policies clearly states “Do not create an extension that requires users to accept bundles of unrelated functionality”.  Nevertheless, written policies are no better than the vendor’s enforcement practices and penalties. We will report back in Q1 2019 on the initial impact these stricter policies have on mitigating the cryptojacking tsunami impacting Chrome users … and hopefully stemming the tide of illicit crypto mining. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

What impact will Siacoin’s bricking of Bitmain and Innosilicon hardware have on cryptocurrency mining?

Colleagues, Siacoin is indeed a third-tier cryptocurrency when compared to Bitcoin, Ethereum, Ripple and Litecoin. CoinMarketCap ranks Siancoin’s market cap at 40^th on its global list of digital currencies. ASIC mining demand for Siacoin is dwarfed by comparison to its tier-1 competitors. So is there any bona fide reason to fuss over Siacoin’s decision – derived from an anonymous Reddit community vote – to implement a fork, which will obsolete Bitmain and Innosilicon ASICs from mining Siacoin. Our assessment leads the Cryptocurrency Academy to a two-fold answer. First, users Obelisk hardware from Nebulous to mining Siacoin are big winners – they will have a de facto monopoly on Siacoin mining. Second, within the context of the global cryptocurrency ecosystem this decision is nothing more than a blip on the radar screens of Bitmain and Innosilicon … business as usual. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)