Bitcoin for Beginners: Explaining Crypto and DeFi Coins During the Next Bull Run

Crypto experts believe the next bull run is coming. When it comes, you’ll need to once again explain crypto to your friends and family.

How do you explain the power of blockchain to someone? What’s a good elevator pitch to get someone to invest in bitcoin? How do you explain the power of crypto in a few sentences?

Preston Pysh (@PrestonPysh) just answered these questions on Twitter. Preston published several paragraphs on Twitter explaining how to explain the potential of crypto to friends, family, and anyone else you talk to – when they inevitably ask during the next bull run.

Before bitcoin hits $20,000 by the end of 2020, we’re here to help explain Bitcoin to your friends and family.

What Problems Does Bitcoin Attempt to Solve?

For technology to change the world, it needs to solve a problem. The iPod solved the problem of transporting 1,000 songs in your pocket. The internet solved the problem of global communication. The wheel solved the problem of moving big things around.

So what problems does bitcoin solve?

Bitcoin was created as the most secure, stable digital currency. It’s designed as a global, digital peg on fiat currency.

Some had seen fiat currency as a problem since the 1930s when the United States government seized gold from U.S. citizens and made it illegal to hoard gold. Others pointed to 1971 when global economies agreed to remove their fiat currencies from the gold standard, which is why today’s currencies are no longer pegged to…anything.

The lack of a fiat currency peg has led to…issues. Governments around the world are overusing inflationary monetary policies with no monetary peg. The $100 USD you owned 50 years ago only buys a fraction of the amount of stuff it did back then – due to inflation.

Bitcoin is deflationary. It has a fixed supply. There will never be more than 21 million bitcoins in existence. Out of the 17 million bitcoins in circulation, a significant portion (most experts guess around 4 million, but it could be higher) have already been permanently lost. If the demand for bitcoin continues to rise, and supply remains fixed, then bitcoin’s price can only go one direction: up.

But Bitcoin’s Price Is So Volatile!

“Why would I buy a bitcoin for $10,000 today when it could be worth $100 tomorrow? The price changes all the time, and I can’t trust a significant amount of money to crypto!”

It’s true that bitcoin’s price is volatile. Ten years ago, you could buy a bitcoin for a few pennies. Today, bitcoin is priced around $12,000. A few years ago, one bitcoin was worth $20,000.

Over time, bitcoin’s volatility should flatten. Bitcoin is a new asset, and investors are still trying to price that asset. Markets for uncertain assets fluctuate, and bitcoin is no different. The market is trying to find the actual value of bitcoin.

Of course, grizzled bitcoin fans will tell you that the price of bitcoin only fluctuates when comparing it to USD: 1 BTC has always been equal to 1 BTC. It’s only the BTC/USD (and BTC/any other fiat currency) ratio that fluctuates.

How Does Bitcoin Have a Fixed Supply? Can’t Someone Raise the Supply?

Bitcoin’s supply is fixed. There can only ever be 21 million bitcoins in existence. Nobody can copy their bitcoin to duplicate it. That’s one of the key technological innovations of bitcoin: unlike other digital files, one bitcoin cannot be spent twice or copied in two places. Bitcoin’s blockchain innovatively solved the “double-spend” problem.

There are 21 million bitcoins, but you can still break down bitcoin into smaller units. Each bitcoin can be broken down to 8 decimal places, which means there are 2,100,000,000,000,000 total bitcoin units (people call these ‘Satoshis’). There will never be more than this supply because of blockchain.

There Are Thousands of Cryptocurrencies – Why Would I Buy Bitcoin?

Bitcoin isn’t the fastest cryptocurrency. It’s not even the most secure or private cryptocurrency. In fact, from a technical standpoint, bitcoin has few advantages over many of its competitors. However, bitcoin has one significant advantage: first-mover advantage. Bitcoin was the world’s first cryptocurrency, and it’s the coin most people think about when they hear “crypto.”

Preston Pysh recommends thinking of it like another open-source project everyone knows about – Wikipedia:

  • Wikipedia is an open-source website that anyone can legally copy and duplicate.
  • Anyone could copy the open-source code for Wikipedia, change the name, and try to adopt new users and overtake Wikipedia as the world’s best repository of knowledge.
  • This doesn’t happen because of “network effects,” explains Preston: bitcoin has the most substantial protocol network effect for pegged money.
  • Yes, bitcoin has its issues – but despite the fact, anyone can copy bitcoin, people don’t. And bitcoin has remained the world’s largest and most valuable cryptocurrency since launching in January 2009.

Won’t Governments Just Ban Bitcoin?

It’s true that governments have banned bitcoin in the past. The Chinese government banned crypto exchanges in September 2017, for example.

During the early years of bitcoin, it was a credible threat that governments could ban it. Today, it’s less of a risk. Countries around the world have already passed laws that legitimize bitcoin and protect bitcoin hodlers. Germany, Australia, South Korea, and other countries have laws protecting bitcoin ownership – just like they have laws protecting any non-digital property for citizens.

The government has the power to ban virtually anything – from free speech to guns to methods of payment. As long as the majority of people want bitcoin, and as long as you live in an open democracy, you should have nothing to worry about.

How Much Will One Bitcoin Be Worth Ten Years from Now?

Inevitably, bitcoin conversations turn to price – and how much money you can make by investing in bitcoin.

Of course, nobody can predict where bitcoin will go next. It could sharply fall before it rises again. It could skyrocket to $20,000 by the end of the year – and $100,000 next year.

People have all types of bitcoin predictions – they’re all over the board with predictions.

One thing to consider is that fiat currencies like the US Dollar may lose their value while bitcoin rises in value. With central banks around the world implementing inflationary policies and pumping new money into the economy, it’s possible fiat currencies will slowly become a thing of the past – while digital currencies become more popular for their fixed supply.

This is all conjecture – but this is the type of speculation that could get friends, family, and others interested in cryptocurrency.

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Author: Andrew Tuts

Maximum Issuance Of Ethereum to Drop 50% After the ETH 2.0 Launch: Vitalik Buterin

  • Ethereum monetary policies i.e. the minimum necessary issuance (MNI) troubles raises the need for the EIP 1559 proposal.
  • Ethereum 2.0 sets sights on reducing the issuance rate to under 2 million ETH, Vitalik Buterin says.
  • Minimum staking requirements for the ‘Phase 0 launch’ set to boost ETH prices.

Ethereum’s varying inflation rates due to Minimum Necessary Issuance (MNI), raising questions from the community as ETH 2.0 Phase 0 heads into launch. The second-largest blockchain employs a different rewarding structure from Bitcoin’s fixed supply rate; determining the minimum issuance rate as its difficulty bomb adjusts.

While the MNI ensures security on the network, several questions regarding the objectivity in determining the minimum rate and long term survival of the blockchain without continual forking have been raised.

In a recent podcast, Ethereum’s co-founder, Vitalik Buterin, answered these questions on the MNI, stating the mechanism ensures issuance and price of ETH remain at a “reasonable cost” in the long term. He said,

“In the longer term, a minimal viable issuance is an explanation for why the parameters like issuance are set up – it seems empirical that these parameters can motivate particular amounts of Ether to be sticking at a reasonable cost.”

ETH 2.0: Inflation set to Drop by 50%

Vitalik believes that the solution to high inflation will be quickly solved with the launch of Ethereum 2.0 Phase 0, expected in less than two months. In the podcast, Vitalik explained that the new proof-of-stake (PoS) mechanism will lower the inflation rate by over 50% despite the MNI remaining variable.

“One of the reasons why we’re doing Proof of Stake is because we want to greatly reduce the issuance. So in the specs for ETH 2.0 I think we have put out a calculation that the theoretical maximum issuance would be something like 2 million a year if literally everyone participates.”

Furthermore, Vitalik claims there is a good chance that the staking process will lower the inflation rate to only 1 million ETH tokens per year.

ETH Steady Rise to Continue Following PoS Launch?

Ether’s price skyrocketed past $200 last week as potential stakers filled their bags to reach the 32 ETH minimum limit needed to stake on the blockchain. Stakers will earn around 4-5% returns on their investments per year to keep transactions safe on the blockchain.

Adam Cochran, a partner at MetaCartel Ventures, said the ETH supply may see a huge reduction following the staking and buying frenzy. He estimated that 10 to 30 million Ether could be taken off the open market and with the supply rate dipping 50% following the launch of ETH 2.0, ETH price may appreciate significantly.

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Author: Lujan Odera

IOTA Foundation Fixes Mainnet Issue But Puts A Question Mark On Its Decentralization

  • Those running the IRI node need to update to version 1.8.3
  • The incident puts the network’s decentralization in question
  • IOTA tanks 55% in 2019, everyone is returning to Bitcoin

IOTA Foundation has fixed an issue related to its mainnet, announced the non-profit behind the IOTA network on Dec. 30. The Foundation has asked those running an IRI node to update to version 1.8.3, available on GitHub.

The issue here was that IRI didn’t account for a transaction that was shared between two distinct bundles. What led to a corrupt ledger state was that once the transaction was marked as “counted” on one bundle, it was ignored for the next bundle.

The decentralized ledger for zero-cost transactions for the Internet of Things was reportedly unable to process transactions for about 21 hours due to the issue.

Now that the issue is resolved, transactions on the network are back to processing.

Yesterday, cryptocurrency exchange Huobi that “temporarily suspended” deposit and withdrawals of IOTA due to mainnet upgrade has now resumed its services for the cryptocurrency.

IOTA’s Decentralization or the lack of it in Question

This incident however, has the community questioning the decentralized nature of the IOTA network. Jake Chervinksy, General Counsel at Compound Finance said,

“Is it fair to say IOTAholders are relying solely on the efforts of the IOTA Foundation to fix mainnet? Just wondering if that’s Howey can look at this situation.”

Back in 2017, Nick Johnson, a developer at the Ethereum Foundation said he finds IOTA “deeply alarming.”

At that time Tuur Deemester, Founding Partner Adamant Capital said,

“I’m not sure the IOTA team has the required cryptographic pedigree for long term success.”

IOTA tanks 55% in 2019, everyone is returning to Bitcoin

Instead of using blockchain technology like other cryptocurrencies, IOTA uses Tangle which is a stream of interlinked and individual transactions. The cryptocurrency uses DAG to store its ledger, with scalability as the main motivation.

Currently, the IOTA Foundation is working on Coordicide, the death of the Coordinator, to realize the “dream of a permissionless and scalable distributed ledger technology (DLT).”

Now coming onto the price part, IOTA is currently trading at $0.161, down 97% from its all-time high of $5.54, as per Coincodex. In 2019, to date, it is down by 55%.

This Mati Greenspan, founder of investment firm Quantum Economics says is because,

“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth.”

The market has moved beyond winter, summer, or spring and we’re currently in a period of “great consolidation” where everyone is returning to Bitcoin, said Greenspan.

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Author: AnTy

Ethereum is still the “Unshakable” Leader of the Smart Contract Platform Industry – Report

  • Ethereum leads with 72% followed by EOS, Cardano, and Tron
  • Market in need for “new hotspots” as the smart contract platform sector declines
  • Staking “not conducive to the healthy and stable development of the industry.

Ethereum is still leading the smart contract platforms, accounting for 72% of market share despite the market capitalization of these platforms in Q3 of 2019.

The market cap of smart contract platform in the industry has fallen from 14.9% to 9.8% but still occupies the second place in the industry, reports TokenInsight in its research.

Other prominent projects in this race are EOS (11%), Cardano (4%) and Tron (3%). NEO, Cosmos, Tezos, Ontology, and Ethereum Classic each account for 2% of the share while VeChain only has 1%.

The return of each of these platforms has been negative in 3Q19, registering a sharp decline.

Market performance

These numbers indicate the disappointment of the market with the “smoke and mirrors” since 2017. The market the report states needs “new hotspots.” Development in the market has also been “difficult” because of the worse than expected fierce competition.

The growth momentum of the secondary market changed in Q2 and started adjusting, now this downtrend is further expected to continue in Q4.

Future Prospect

When it comes to development activity, EOS and Tron is leading in terms of commits, as per GitHub data.

Interestingly, Cosmos saw a high degree of code development as well, which has been comparable to Ethereum and higher than most of the platforms. This indicates developers are more interested in the blockchain operability.

Cross-chain and multi-layer architecture became a hotspot in Q3 2019 with sharding making “great” progress as well. Polkadot testnet is already launched and Cosmos’s IBC will be coming at the end of this year.

Development of leading projects

Ethereum also has the best ecosystem of decentralized applications (DApps) in the market and serves as a decentralized infrastructure of the future of open finance, reads the report. Ethereum’s 2,396 Dapps are followed by 634 of EOS and Tron’s 618.

Gambling and gaming are still dominating the Dapps. However, while gaming and gambling account for the majority of Dapps EOS and Tron, types of dapps on Ethereum are much more diverse. This is because of the stability and security of the Ethereum network.

As such, Ethereum has an “unshakable” leading position in the smart contract platform whether it is about financial innovation, lending platform’s lock-up value, or trading volume of a decentralized exchange.

EOS has the highest number of active users but both EOS and Tron active users are on a downtrend.

In Q3 2019, the market expectations from the smart contract platform dropped but sharding technology, cross-chain, multilayer technology, and staking has brought new ideas of the sector.

However, the report cautions that staking is getting much attention from the industry but it is “not conducive to the healthy and stable development of the industry.” While the idea that everyone can be a node may bring new challenges, the unfair distribution of tokens may widen the gap between the rich and the poor.

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Author: AnTy

Dash Explorer To Get Fresh ‘Insight’ Update On Jan 7th; API Users Will Have 3 Months To Changeover

  • Users of the interface will need to upgrade to the Insight API to prevent incompatibility.
  • Dash has been delisted from OKEx Korea and UpBit, due to compliance concerns.

The current Dash Explorer program is already based on the Abe API, but marketing manager of Dash Michael Seitz believes that this interface is “outdated” and that it offers “limited functionality.” To improve the system, Seitz published a blog post on December 4th to explain the “new and improved API” that the Dash Explorer will upgrade into – Insight.

The open-source Dash blockchain explorer will be ideal for apps that require more advanced blockchain queries, like web wallets, according to an article by CoinTelegraph. Users will easily be able to build their own services from the Dash network, due to the newly convenient way of reading data on it.

Furthermore, every user will be impacted by the upcoming update, since there will be differences between the current software and Insight. To prevent incompatibility issues, users need upgrade to the Insight API when the time comes.

At the end of October 2019, Dash Latam announced the end of their operation in eight countries, as well as 20 cities. The organization, which previously pushed for Dash adoption in Latin America, had formerly been available in Tobago, Colombia, Trinidad, Venezuela, Peru, Spain, Ecuador, Brazil, and Guatemala.

George Donnelly, the executive director of the organization, had previously stated that Dash Latam was left without funding, forcing the layoff of about 80 employees as operations shut down.

In the same month, OKEx Korea announced that they would no longer support Dash trading on their cryptocurrency exchange, along with other assets, due to regulatory issues.

The exchange had received recommendations from the Financial Action Task Force, pushing OKEx Korea to stop and review the “Travel Rules” and Dash’s compliance with them.

Dash was already delisted by UpBit, the largest cryptocurrency exchange by volume to operate in South Korea. The delisting, which happened in September, cited money laundering concerns as the reason for withdrawing support for Dash, as well as the possibility of “inflow from external networks.”

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Author: Krystle M

Poloniex US Customers Need to Withdraw Assets from Circle ASAP to Avoid Fees

  • Poloniex US customers were told in October that they would need to withdraw their funds from Circle.
  • Customers that do not withdraw their assets are at risk of being charged custodial fees or losing their funds entirely.

On October 18th, 2019, Circle posted a blog to announce that Poloniex would be separating from the platform, creating an independent company called Polo Digital Assets, Ltd. In the meantime, Circle expressed that they would still be building up their “open, global, and accessible financial system.” The blog noted that there would be major changes, including that US customers would no longer be able to trade on the exchange by November 1st, and that customers could still access their funds and wallets through December 15th.

The first deadline has already passed, which means that consumers only have about 12 days left to withdraw their funds from Circle. To ensure that consumers don’t miss this deadline, Circle just posted another blog on the matter today, stating that there’s a chance that Circle will start charging fees to the Poloniex US customers still on their platform.

To warn customers, the blog explained that there are two fees that these customers leave themselves open to if they don’t withdraw their assets before the deadline:

  • A monthly service fee, charged for holding the assets on the platform.
  • A one-time fee, for leaving the account dormant.
  • The current regulations state that Circle is allowed to send unclaimed assets to state governments if they so choose.

The assets on Circle’s platform must be pulled by the customers by December 16th, or they will face a few actions that will make their circumstances much harder. First, they will no longer have access to the Poloniex US accounts. Then, the assets left in their account will become USDC and stored as such. Plus, customers are left at risk of being met with one of the above-mentioned fees.

The blog concludes by urging customers to “withdraw their assets as soon as possible,” offering a link that takes Poloniex US customers exactly where they need to go.

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Author: Krystle M

Coinbase Offers 1.25% Interest On USDC Holdings for Stablecoin Users

You do not need to be a trader to profit from Coinbase anymore. The crypto exchange has started a new program for its customers recently. Now they can earn 1.25% interest yearly for holding the official stablecoin of the exchange: USDC.

According to Paul Katsen, product manager at Coinbase, the company is currently trying to create more ways in which people can grow their wealth by using the company. Coinbase knows how bad the need to move money back and forth via different accounts is, so they want to give some benefits for the people who choose to hold tokens in their wallets.

If the user has at least one dollar of USDC in the account, the rewards are automatically enabled. Max Branzburg, the director of product of the company, affirmed that the whole experience was created to be as smooth as possible. People will be able to see their rewards in real-time whenever they want to.

He also affirmed that this is least 15 times more than people will get if they let their savings rest in traditional saving accounts in the U. S. According to him, one of the main advantages of using the USDC Rewards program is that the person does not need to actually move the money since the program is automatic.

Now, Coinbase and Circle, which launched the token in a joint effort, are expecting to see more people using their stablecoin to recieve the rewards. If the program is successful, other ones can be started in the future.

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Author: Hank Klinger

Ripple’s xRapid Usage Experiences Sudden Increase in Usage: Senior VP

XRP-And-Ripple-Supporter-Raises-Concerns-About-Network-Decentralization

Ripple, a cryptocurrency founded on the need to offer real-time, instant and cross-border payments, is a no-ordinary asset. The coin’s consensus ledger is unique and a lot different from a majority of the digital currencies because it essentially requires no confirmation. Its original objective of being an alternative for banks and financial institutions to settle payments transparently and at a much lower cost is alive.

As for XRP, the project’s native cryptocurrency, the fact that it’s been doing quite well, according to Coinmarketcap, is a testament to how exciting Ripple is. XRP has been hovering around $0.30 lately, constantly exhibiting bullish signals that favor buyers. And this is partly linked to the recent happenings in the coin’s demand – an influx of XRP users.

Over the past few days, xRapid, a liquidity platform dedicated to banks that use Ripple, has been experiencing an unprecedented increase in traffic. According to the senior vice president of product management at Ripple, Asheesh Birla, the phenomenon is attributed to a massive user increase.

It is safe to say xRapid is Ripple’s most vibrant project right now. It has been active before, but not as alive with multiple banking institutions and other mainstream cash transfer entities as it is right now. It has been so buzzing lately that it is only recently that MoneyGram finally joined the clique of companies relying on it.

MoneyGram Inc, the world’s second-biggest financial transfer firm, chose xRapid for the cross-border transactions and payments. Besides the efficiency guaranteed, the decision is largely attributed to the platform’s surging number of customers.

ILP Connector Implementation Slated for Next Year

The platform’s newly acquired fame hasn’t been without questions, especially on Twitter. A user named Michael iPinky7 sought to know whether xRapid employed the ILP conductor functionality.

ILP connector is designed to address different network hosts and also guarantee swift completion of payments sent across various, independent ledgers. One of its core uses is to safely allow routing of disbursements across digital asset ledgers while eliminating any risk of intermediary failures between the two parties.

In response to the question, therefore, Asheesh Birla was categorical in her answer. First, xRapid, according to her, works as an ILP connector. She, however, said they are still working towards making it a fully-fledged one, a project they expect to complete in early 2020.

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Author: Lillian Peter