October 18th, 2017
In my humble opinion...
#Bitcoin was created as a permisionless system to disrupt finance and now we all suddenly care about the opinions of bankers?
— ฿TF%$D! (@CryptoHustle) October 17, 2017
Coin of the Day
Power to the people: smart loans for the unbanked.
(CRYPTO: AMM) In the entire world, 12 million people are unbanked and need a financial system that can support them without hindering their reliability on cash. MicroMoney is a decentralized credit bureau that allows people to build their credit history and reduce financial risk when issuing loans. They have a credit rating database that uses a system of rapid assessment; it's more efficient as it eliminates the previous method of extreme collection of documentation to confirm the ability of a loan payment. MicroMoney integrates neural networks, machine learning, and Big data, which essentially means that the application is smart – and probably better at predicting potential credit risks than any human being. Though they've only been operating in Cambodia, Myanmar, and Thailand (where there is a high population of unbanked individuals), they have the metrics to back up their method; their process works, and embodies a key aspect of decentralized currency: economic freedom.
Many government institutions don't see Bitcoin working out, even though there's systematic evidence it will. Where's the disconnect?
News about crypto and blockchain is split 50/50; half positive and half negative (which is a much better ratio than what it was about a year ago). Support for crypto as a digital currency for businesses, small transactions, and state-backed currencies has been dramatically rising the past six months. Yesterday, Abkhazia, the partially recognized state in the Black Sea, announced that they're issuing their own cryptocurrency. They're also seriously considering completely leaving behind fiat currency in a few years. For countries undergoing political strife such as Venezuela and Catalonia, crypto is becoming almost a necessity. So why are people like Ben Bernanke saying that they "don't think [Bitcoin] is going to succeed"?
Well, there's the easy and obvious argument, which is pro-blockchain and anti-Bitcoin. The tech behind Bitcoin is undoubtably going to work, and it doesn't come with legal baggage. There's also potential legal issues that could arise down the road, but more specifically for the US, Japan (we'll see if this is fake news or not) and South Korea. Other first world countries like Sweden and Australia have been actively exploring digital currency options (the latter is replacing all paper money in the next ten years), so it may take some convincing to get a general consensus.
I have confidence in me: Overstock.com's shares predicted to rise 230% as Bitcoin gets close to $6,000.
Investors are predicting that Overstock.com's shares will rise as much as 230%(yes, that is the correct metric) thanks to increasing support and confidence around crypto, blockchain, and the company's investing strategies. As one of the first e-commerce websites that heavily invested into blockchain research (shout out to Patrick Byrne, Overstock's CEO for being an outspoken advocatefor the digital currency), the internet retailer is setting the precedent for crypto integration in a big business setting. That's exciting. The numbers don't lie: there is a clear future for business backed Bitcoin/blockchain which may depend heavily on not defining crypto as a security. Now we wait and see if the US government figures that out before it's too late.
While Overstock.com has confidence in cryptocurrency's future in American business ventures, it appears the US market has caused some heartburn for Bitfinex. The exchange is based out of Hong Kong and is in the process of removing all American customers from its services due to the US' regulations making it expensive and complicated to do business. As of now, the SEC is undecided about ICOs and crypto as a whole; thus, it makes sense that Bitfinex is avoiding the potential for a legal meltdown in the future. This is good time to examine ICOs and crypto companies that are based or planning on premiering in the United States– the question will be: Are they compliant with US regulations and will they be able to sustain their business in the long term?
The fork is becoming kind of overly dramatic – so what is Bitcoin Gold at this point? Fake news, a scam, dramatization for PR, or a gov't conspiracy? You decide.
Do your homework: Dutch bank ING was shocked when they realized that mining Bitcoin takes up a lot of energy. Duh.
Stupid article of the day: Goldman Sachs says gold is worth more than Bitcoin, even though Bitcoin's price is currently 4x above the precious metal.
Coin to Watch
We know, we know. The market's looking a little rough today. If you'd like to cheer up, check out TexX (PAY).