There is no general consensus on the subject, but let’s face it, ICO’s (Initial Coin Offerings) will be a thing of the past, and, companies like rocketICO that are betting their futures on ICO’s will surely fail! Heck, the business model they created is just one of the companies creating that fear: Imagine having executed your ICO with one slight mistake, companies like Rocket will burn you at the stake and call you a scam or fraud!
There are plenty of potential examples: Imagine a Gold production company that produces a commodity that is generally desired by thieves / criminals. This type of business model requires utmost secrecy and privacy to protect employees identities and locations. Imagine posting an employee directory on an ICO page, this could create a hostile if not dangerous opportunity for thieves to start creating and hatching a plan to hold respective staff hostage, after all, it is South America we are talking about. It is Human Resource policy under management at most mines that states employees are not allowed Social Media accounts let alone personal cellphones on mining premises. Now a company like Rocket would state that ICO to be a sham and this would create a slew of potential legal suits.
There are so many grand ideas on building decentralized apps for the crypto revolution, just most are not well executed or thought out and, because of low or no standards in place, the first ICO’s decided on the rules of development. For example, why does everyone need a “whitepaper”, or need a list of “experienced blockchain staff”, or need “social media accounts” and the list continues. Honestly, how many really read it? Likely, they find the reward more fascinating when making the investment decision. I find it bizarre that in a decentralized concept there are so many who will toot their own horns but want to limit the field players. These techies prop themselves up as the only ones with experience and they need to sit on everyone’s executive boards. Take Vitalik of Ethereum, his name is synonymous volatility and he is a founder of Ethereums volatile infrastructure, coincidence? Maybe. How many boards does this computer guru sit on. From my position he has zero business experience and from his Whitepapers I see many deficiencies in his business model. I would give him a low grade for running a business and moreover i would run the opposite direction if he was required to sit on my board of directors just to have a successful ICO.
Now we have the Governments as a large obstacle, and after defending yourself through the policies set into place by tech gurus and ill-willed app developers, you now have this problem: The SEC for example are positioned by legislators who are positioned by lobbyists who are paid by the banks to create a larger than life issue about ICOs. Anyone doing the math can see that there is no real market share with crypto-currency. The amount of wallet holders Globally is such a small fraction that I believe banks sit back smoke cigars and drink their rum laughing at the chaos being created by these wallet “Hodlers”. It makes me angry to know the banks got away with all the fraud of the mortgage crisis and know that credit debt and government student backed loans are surely coming soon. Big Govt should be focused on the bigger prize “bank greed and fraud” than crypto supposedly being a issue. What is the real problem? Competition for the banks? Tax collection? Terrorism usage? Money Laundering? All these still exist with what we currently have in place. The only difference is crypto has more transparency.
So that covers a lot, but 90% of the problem with ICO’s is they are not generating enough interest with the populist, only with the “Gambling type” personality and this is why ICO’s will fail. The only reason most invest into ICO’s is because they were promised something and truthfully most believe the 1 token they purchased will be the next 18K bitcoin. The truth lies with this particular hashtag #hodl . For me I see the problem in the volatility. I may as well keep investing in Govt bonds, at least they are consistent. For the populist to get involved, there has to be something more stable and more usable and ultimately backed or have ability to convert. Most laugh at the #hodl but in truth it’s a bunch of wishful people hoping to become millionaires for having invested pennies. Most of the people that have not invested in crypto-currency that see these types, think it’s a joke and shake their heads and continue doing their thing.
Now that I covered 95% of why ICO’s will cease to exist, the last 5% is when most companies that have completed ICO’s, and actually collected a significant amount of Ethereum or Bitcoin in exchange for the crypto offering of that particular ICO, will be faced with the challenge of paying payroll and rent without having deep pocketed investors with fiat doing that for them. I can’t imagine employees feeding themselves and paying their electricity bill on the ICO token or even with Ethereum and / or Bitcoin. The real ICO’s that are successful are the ones that have two fold investors: ICO “hodler” buying their coin with Bitcoin and Ethereum and the Initial cash investor paying the payroll. So unless you have a mind blowing concept which will produce a cash heavy pocket and a populist consensus with all Govt requirements in order, don’t count on having a 80 million dollar Ethereum, Bitcoin equivalent ICO month anytime soon.
I’ll be the first to say, I don’t like the idea of text, chat, DNA, blood samples and Social Media on blockchain!
I question whether this means all my information I put on the blockchain lives forever? Because, if that’s the case, to hell with that! I like my privacy, and, if my young casual past life was on social media today, I think i might be embarrassed. Look at the implications Social media holds today for the “#knowmybusiness” generation. I don’t see this helping them in the future when they are seeking a job. Most company human resource departments use background checks before hiring candidates. And, they will tell you, the first thing they look at is a persons social media history — (for that matter, the US Government are planning on asking those visitors applying for visas for their social media passwords).
There is a new Buzzword out there: “hashtags”. Everyone wants one to prove that they are somehow connected to our ever changing technical world. And, what does it really get you? a digital presence? an extra thousand likes? I ask you, “Why has everyone gone #tellonmyself crazy”? There are too many questions to be asked, too much accessible data and too many willing to give their info away inadvertently. Consider Facebook, they have safety features to reduce exposure, but of course, you can always cancel the account which will guarantee the safety of your personal information.
Recall recently, the latest from social media juggernaut Facebook was caught selling subscribers information and the apology letter from Zuckerberg was sufficient enough to keep doing business as usual. I have to say, that was not enough for me; I canceled my subscription. Why? Not because I’m a worried nut case. I am just a guy who sees something so unethical I’m doing exactly what Zuckerberg said: “If we cannot protect your data, then we don’t deserve you as subscribers”. I 100% agree and that is why I opted out. Let’s use the instance of Julian Assage: Now he’s a guy that freely gave private information on corporations and governments hiding particular information from the public and is now 6 years in residence at the Ecuadorian Embassy in London. Then you have Zuckerburg that gave your private information to governments and corporations for profit and he’s the Man of the Year. Something deeply wrong with this and yet with the scandal so outrageously large you would believe most everyone would have cancelled their subscriptions.
Understanding decentralization from the mouth of a 24 year year old is “Blockchains are politically decentralized (no one controls them) and architecturally decentralized (no infrastructural central point of failure) but they are logically centralized (there is one commonly agreed state and the system behaves like a single computer)”. That is all good but where is the privacy? The 24 year old I’m speaking of is a Vitalik Buterin one of the originators of the Ethereum Blockchain. We can argue for many hours of the deficiencies of central and decentralized systems. But what no one is talking about is that all the information collected is as simple as databases of private or public information being open or closed to everyone. Facebook is centralized and for the greed of money, it is available at a price tag that someone or some government is willing to pay. This is not simple capitalism “buys all”, this is corruption, power grabbing and greed.
The biggest problem I see and that no one is talking about is that blockchains’ openness and ability to create algorithms to deciminate information is 100% available. That leads us to more computing and more intelligent systems: specifically, Artificial Intelligence.
The new decentralized generation is bringing about the growth of public databases like blockchain being accessed by Artificial Intelligence with algorithms built by corporations that identify the exact data they need to control the public.
It is not so far fetched, but it’s coming real soon all because a 24 year old thinks it to be our best next option for the health of our well being and everyone should be the same blah blah blah crap!
I don’t mind the idea of decentralization, but only in terms of limiting the reach of Governments and Big Banks that control everything from inflation to laws that take / steal from us.
At what public cost are we actually creating for ourselves when things like text conversations, blood and DNA, and social media are all public on the open chain and that this information will live forever and be accessible to the corporations that can afford the development of Artificial Intelligence to use this information?
I think we need to stop listening to 24 year old that wants everyone to be couch millionaires and have “equal everything” based on decentralization and look more closely at companies that have no ethics, with no need to report its earnings to wallstreet or to its investors its earnings.
We need to create technology with limited levels of centralization and allow key aspects to be decentralized. This will allow more fair competition and moreover, drive economics towards new jobs, greater growth, increased privacy, transparency, and greater accountability from the large transnational corporations / social media juggernauts. We need to take back control, not have the controlling corporations take it from us and use it against us. And, we need this today.
Recently Vitalik Buterin said “crypto communities, Etheream included, should heed these words of warning. Need to differentiate between getting hundreds of billions of dollars of digital paper wealth sloshing around and actually achieving something meaningful for society”. Seems accurate in the sense that tons of digital token and coin companies are valuing themselves by how many coins they minted. Look at Ripple, worth more than Ethereum, and because they likely have 100 Billion coins it means that they can soon be the most valued company on the planet. The next Ripple should create a Trillion coins! But, is it all really just digital money?
NO chance, its not ONLY Digital, its real green! Let’s take Ethereum. Ethereum’s gas prices are heading the same way as Bitcoin. Today, while writing this we sent 2 coins along the “Ethereum” road and after 30 minutes of trying we paid exactly $3.00 USD worth of Ether each for the pleasure. And, thats a one-way ride! Yes, that transaction cost MORE than the price of gas at the pump, and there is a lot of Real Hard costs associated with pumping petroleum out of the ground. How much does it cost to keep the Ethereum platform functioning? Is it equal to the costs of oil exploration? I just don’t think it is!
So, why is it so expensive? According to Ethereum its all about the miners. But, is that it? This system could have been set up to include a flat fee on the smart contract. Then you could actually have a chance at creating a genuine utility token for mass use. But, with a sliding scale on gas pricing: the idea that you can offer more gas to encourage a miner to put your info in the next block is old economics: the era of the “Vig”. Or, maybe that was the plan all along. Make the big money on the gas with accumulated fees and cash out the Ether. I am not buying the idea that people are really buying Ether so they can have useful platform transaction funds! what for, the rate this is going the platform will be performing the same as Bitcoin: with the same people trading the same coin from one wallet to another at 20 dollars a flip while on the other side they see their Bitcoin advance in “value”. Artificial inflation? Smells like it to me.
I think people will start to see this as a poor solution towards a utility coin and try something with fixed costs. No fixed costs and massive volatility is no way to build a value based system: as soon as you figure out the costs they go up.
I think we should be looking for another platform, one built on freedom and democracy and not on a “Vig”.
The Bitcoin dilemma: many perceive Bitcoin as the largest held crypto currency in the WORLD and, that it’s a bubble. Two facts: 1. If there are 16.9 million bitcoin that means only 16.9 million people can own at least 1 bitcoin each, 2. for bitcoin it to be a bubble a large population would have to own it.
Right now as of last quarter 2017 there are 21.5 million Bitcoin wallets. Divide that with the number of people on the planet — 7.6 Billion, and that equates to .00276% of the population own a Wallet. Most own several wallets, so I say cut that in half, and that means .00138% of the population are bitcoin wallet holders.
Fortune Magazine says that a study has been done and 4 million coins are lost forever, thats 23.5% of the entire bitcoin amount. The Business Insider says founder Satochi Nakamoto owns as much as 1 Million Bitcoin another 6%. Now, 3.2 million are owned by the top 100 wallets; that’s another 19%. The next top 200 wallets have another 2 million bitcoin — 12%, and another 300 wallets own 2 million, another 12%. So that leaves the hard facts that 4.7 million Bitcoin have potential of circulation.
As stated in the article and using Bitinfocharts, the top 500 wallets that own Bitcoin account for 50% meaning that out of the 21.5 million wallet holders in the WORLD, they are currently fighting over a little under 5 million Bitcoin. That means all the ICO’s and Miners along with you all believe they can become Bitcoin Millionaires.
Next let’s take the mining industry: “In fact, taking into account bitcoin’s move lower to about $7,800 within the past week, miners in 41 of the 115 countries examined would probably lose money mining bitcoin” writes Sean Williams with fool.com. When this article was written there where 176K Bitcoin transactions in a 24 hour Period at the average cost of $1.28; that equates into $225K in fees collected for doing the mining.
Sean also states “ given that bitcoin has shed more than 55% of its value since nearing $20,000 per coin in December, the margin to mine bitcoin has tumbled from as much as $15,000 per coin to less than $4,000 per coin in the U.S.” Over the last 30 days the average transactions per block was 1300 more or less, that equates to 135 blocks created. So, where is the profit when the cost out weigh the expense? Calculated using coinwarz.com it would take a single user 18,194 days to generate one block mining bitcoin and 1455 days to generate 1 Bitcoin worth today $8500US. If you mined at the cost of .10 Kwh, which is very low, you would be ($250) in the negative for the year. So who’s making all the money?
Bitcoin Millionaire Grant Sabatier says “don’t buy bitcoin”. Have you ever gone to instagram and seen all the Bitcoin people calling themselves Whales and showing pictures of Rolex watches, stacks of cash, even million dollar sports cars with hashtag #hodl ? I have! I ask myself, how do they hold “#hodl” and have all these possessions?
My answer would be that they are “BIG FAT LIARS”, and they have neither. Let’s face it, you can’t hold “#hodl” and have at the same time, it’s impossible. The fact is that no one is getting rich. Why? Because no one is converting into usable fiat and the top 1000 wallets with the top 50% of bitcoin only have 1 transaction and that’s incoming and not outgoing. The wealth is all electronic and long term for most. Gambling, I would say! But is there a way to make money?
Fixing the problem, I believe we need to focus our efforts cutting out the rewarded miners who create higher cost computing and energy problems for everyone else and with it the potential to give all of us across the board the increased energy bills based on supply and demand. What can’t enterprise computing do that miners can? The answer is nothing! It’s actually more secure with enterprise computing and with less energy costs. Let’s just eliminate proof of stake and proof of work and use an algorithm and consensus that will create fixed transnational fees.
Creating Reward, The only way that you can create wealth with crypto currency is to create something that is backed by “Gold”, that has little or no volatility and is highly circulated with fixed transactional cost. If you could lower cost by enterprise computing whilst using a consensus that is hosted by those enterprise servers you could create a fixed transactional cost that would cover the overhead expenses. The money left over based on high usage crypto-currency in the day to day platform could it fact create high demand, while simultaneously rewarding its clients like any credit card system rewards its users. Creating a system that rewards it’s clients could actually be the key to becoming crypto rich without risk.
The year planning an ICO token has many untold secrets until you finally launch your token. The struggles range from, “you want a smart contract? sure, how much? we only charge 80K dollars”, to the fiverr.com self proclaimed gurus willing to do it for $100. So, you look for the medium with concern for quality and security, you ride the middle line and pay 40K dollars. After it’s all done, you say “okay, but before I launch I need to have the smart contract audited”. Once again you’re being offered the 30K range before you know your Smart contract is ready for launching.
So, after suffering countless days and hours of work and no sleep, the final day arrives. The launch….. and, then you notice all the campaigning and advertising is not really doing anything. You get 3000K emails a day from some new ICO posting site. You get another 3000K emails from guys willing to write some nonsense for you to say that you’re posted on Bloomberg and all the major networks when in reality they are posting content in comment feeds. All your friends and family know how hard you worked on the project and they make trades for your ICO token. During all that time you notice all the underlying issues like: the volatility, the idea that the smart contract is not so smart. Why? you ask. Well, a smart contract determines the trade amounts, which means what you take and what you give. The sad thing is, if you did it like that hopefully your ethics would say that something was wrong because the first person in the ICO would be getting the best discount. Now, if down the road in three months Ethereum drops below the initial trade amount due of the volatility, then the person on the end that’s not supposed to get a discount less or equal to the beginning trades does, or better yet, gets it for nothing!
So the smart contract is not so smart and you, the ICO issuer — with the idea that all things being equal — now will need to issue manual trades. Of course, you see that the volatility in Ethereum is also reflected in the transfer fees. Paying the expense to send out your ICO token along with the volatile transfer fee begs the question of why bother in the first place. Then the realization hits you that you will be married to the Ethereum platform and all your ICO token holders will always need Ethereum to transfer the token you gave them.
Say that again!!
Let me explain in easier to understand terms. Let’s say I have traders that posses my token. They figure they want to buy a bicycle with my token, so they go to the store, agree on the amount of the trade with my token — let’s call it the “dollar-token”, and now the store owner accepts. But now that I paid the owner, the platform needs a “euro-token” to cover the transfer. So now I need two types of tokens to make the purchase. Dumb, right?
So now I’m married to this platform and I ask myself, what just happened? I traded for this Ethereum and I can’t even pay my staff because I’m currently at a loss. And, not only that, but if I wasn’t at a loss the exchanges are not converting the Ethereum into fiat to cover payroll. It makes me think that a lot of ICO’s are in trouble if they are experiencing these same issues. I believe most ICO people don’t understand the cost to the person making the trade. Most allow the smart contract to do its thing which means the person making the trade is usually bound to all the transaction fees. It’s not going to be until they personally transfer the tokens themselves will they realize the dilemma.
So, you want to know the solution to fixing the problem?
Catch the next article on how to joint-venture with a Gold backed blockchain. It will save you thousands if not hundreds of thousands. The solution provides the future along-side the best technology for building your own ICO. With our experience you can have an ethical crypto currency and do it the right way. In the end you can have something people can actually use.
The crypto-currency landscape is full of ups and downs, pitfalls and bumps that lead us all into head-spinning confusion — what’s going on? help!
Here is a good one: Bitcoin has more value than actual gold. I don’t mean that the price of Bitcoin is worth more than the price of gold, I mean that a 2 ounce coin cast with a Bitcoin logo on its face is greater than the gold value contained in the coin itself. And, the coin itself, well it’s the physical version of the digital coin. Ironically, Bitcoin is backed by fresh air, highly volatile, and mined by unsustainable energy resources with fluctuating costs. Of course, Bitcoin Gold coin promoters will have you believe that bitcoin is gold. Of course, the coin was made with gold for multiple reasons: it makes the buyers think Bitcoin has gold value, or it might make a buyer believe that it is backed by gold, or even better than physical gold. What’s your take?
There are other coins similarly advertised: “gold-standard, gold-backed, weight in gold”. A cool one is Ethereum Gold. The site is littered with spelling errors. Minor details, right? We all know the important part is the decentralized system, no central bank connections, etc. Well, Ethereum Gold offer a Visa card against your digital wallet and call it “the future of payments”. My question is why not just use the visa? With their bright idea the owner of the crypto has to deal with fluctuating crypto values, unknown “fuel” costs on the “roller-coaster” Ethereum platform. Why do the creators of this coin think we consumers can’t see through their obviously flawed business offer? What must they think of us?
Another oddity is “Bitcoin Gold”. A non-gold related crypto-currency coin using gold as some recognition to their implied value. But, Bitcoin Gold was designed to allow more people to mine the coin and thus, open up the user base to “free” the bitcoin. Yes, you guessed it, the Gold part is to make us crypto-currency enthusiasts “double-take” and get some. But, it has no relation to Gold.
Have you seen Goldcoin? It’s another crypto-currency with no apparent relationship to Gold except that the company has actually implied that Goldcoin has performed better than Gold — or at least with less volatility that Real Gold over the same period. Their blog says Gold is volatile as it has fluctuated between 1200 and 1300 USD over the same period where their coin rose from 0 to 0.55 “before falling slightly back to 0.40”. The significant error in their statement is that there is a greater percentage variation with their coin than real physical gold. Seems they are hoping you don’t see that blatant misinterpretation of facts.
How about GoldBlocks? I read their vision statement. I am sure it is better in their own language because in English it does not translate at all. In fact, I have no idea what they are talking about, actually, its worse than that; I think I can say they are talking about nothing at all.
GoldReserves, another crypto-currency coin is masterful. The coin was created according to the founder “because there is not one altcoin which gives people the feeling that it will give a steady growth and if things goes sideways, and coins can easily liquidated at anytime without a huge loss” (grammar is all on them). The founder says all funds collected are used to buy gold so when the coin fails you can cash in your coin for gold. It’s a great idea! Here’s a better one: put you money in a piggybank and when you need it because you lost your money with Ether or Bitcoin you can get it from your piggybank. And, no middle-man!
Ever seen Goldcrypto? Have a look at the Mission statement. Seems that an investor will earn by investing in their Russian Gold mine. And, the profits will be secured in an escrow. Then there is this other gold producing company that somehow is involved with Goldcrypto — not clear. They generate revenues and share with members. Money is spent on overpriced new equipment (compare online pricing yourself). All of this is floated on the Ethereum platform as an ICO. Apparently, the escrow is in the UK. If any of this makes any sense, great. I am confused, and I am not sure about security. And, lets face it, an escrow is only as good as the document. Read the fine print.
And then there is a company called Puregold, I guess to differentiate between other companies that might be called gold plated. They promote an idea of Gold ATM’s, and Payment systems. But, in truth the Gold ATM is nothing more than a Gold Vending machine that you can use with a credit card — not so decentralized as they claim. As to the payment system, well you have to use a bank card. This is just another crypto-currency company advancing their business ideas using Visa or Mastercards. Same old banking system here, the only difference is that they are selling you real gold. Boring really.
A new product is the Realescoin. It is a “basket” of values: silver, gold, bitcoin, and altcoin. Looking at the white paper you can see things just don’t add up: They call Bitcoin Gold 2.0. Their reason is that not many people have heard of Bitcoin and therefore Bitcoin has a great upside for more sales. As they plan to carry the Bitcoin in their basket, backing their coin, holders of the Realescoin will benefit. Laughable economics! But, as prominent figures such as John McAfee and Wences Carsares say so then it must be so! Do these people do their own research? Here’s another gem: “Silver historically had [an] average ratio of 10:1 in relation to gold, meaning a one ounce of gold has historically been equal in value to 10 ounces of silver”. Well, that is NOT true, not even close! The average ratio of gold and silver over the 20th Century was 47:1. Realescoin’s basket carries 35% silver! Seems they have all their numbers wrong. I won’t waste your time or mine talking about the other issues.
Darico, a crypto-ecosystem. On a computer it is nice and shiny and Gold like, but has nothing to do with Gold. Apparently, the Darico coin “is your ticket into the Darico ecosystem. It gives you exclusive access to the tools you need to profitably invest in cryptocurrencies”. Seems like circular reasoning to me: buy crypto so you can invest in crypto. What? What I love about it is that they say it is exclusive, so exclusive that they have made available 240 Million coins. Does this make sense to you?
Here’s something special: you know how ICO’s offer some solution to a problem, or even tell you in their white paper what they bring to the world and how they can help you. Well, goldbitscoin does none of that. It explains bitcoin, and how to prevent fraud — nothing interesting or new about that. But, the white paper says nothing about their coin. Nothing! So, feel free to waste your own time finding out.
All right, Flashmoni claims to be the first all-in-on card bridging digital & real worlds. But, its really a bank card that connects crypto to users. The idea being to serve those who don’t have bank accounts. These people can bank their cash into Flashmoni atm stations. The credits go to their crypto accounts. The underlying question is why not just let them use the cards? what has crypto got to do with it? Users could just as easily make use of the card — which must be a bank card. It seems they are using the funds generated through the ICO to purchase bullion to back the crypto-currency, with the balance for the ecosystem (a word thoroughly overused these days for everything), actually, that is not quite accurate: only 8% is the development 22% is for investors, bounties and founders. Everything then is their ecosystem. Outside of their nice colourful site, and their inclusive video, I just don’t see the point. My guess is that Flashmoni is ONLY using the crypto-side of this to run an ICO. Really, they could run this thing with NO crypto except that they would have no excuse to run an ICO and get cash. Oh, they are using the Ethereum platform too. I guess they will be passing on the outrageous platform mining / transactional costs to the clients who have never seen a bank account before. Sure, they likely won’t even notice the first time. After that, well Flashmoni might change their name to Hemorrhagemoni! Read it for yourself, i’m not joking!
Here’s a great one: Sudangm. It’s a Sudan Gold Coin. The idea here is that they sell crypto with the proceeds going towards mining activities in the Sudan. You know, I am sure they are wonderful people, but this type of thing — in Sudan — is a local selective thing. I am not buying crypto for a Sudan project because it is in the Sudan. I love the people, but politically, I don’t think I will see anything back from it. Sorry, just my take on the politics.
Aurumcoin, according to them the first virtual coin (crypto?) backed up in solid gold. Never heard that before! — oh, well only a few times before, read this article over again. Anyway, they scare me a bit with the delusional language: “it was born from a profound understanding that we live in one global village”. Are they kidding? The world has never been so chaotic: Brexit, Trump, European Union fracturing, Russia and China expanding their global aspirations, poverty, middle-eastern disputes, Syria. Lets all hug and sing “Kum ba yah”. OK, these people are stretching reality. And, if they are doing this at the beginning of their crypto-party where will they be in a year. I’m going to use cheese as my currency, surely everyone likes Cheddar?
Digix global is another giant of it’s time. Wedded to the Ethereum platform, for sure. Digix say “Ethereum needs a unit of exchange that allows it’s users to store value over time”. Why, another one? That’s Ether’s roll on the Ethereum platform. Of course, my favourite line is “the digixdao governance model is currently undergoing a careful planning, development and auditing process.” It’s comforting to know that they are doing this AFTER raising the 5.5 Million Dollars in 12 hours from their crypto! (spelling error? you tell me) Tell me, why don’t these people read their own stuff before they ladle out more contradicting nonsense? Sorry, tired of this one!
I just read about Goldmint. For this one, there is a lot of reading to do. Nicely done guys. So, I went right to the meat of the issue: how much does the gold cost: 5% above the LBMA
price! Are they kidding? 5%! You know what, I am done with this one. We know where they are making their money, by overcharging for gold. I can get that from any “pawn shop” or gold seller online. Who the hell needs Goldmint. If you want to give your money away, go with Goldmint! Not me, no thanks.
Zengold is next on my list for a look. Forget this one, does not work, and has no info outside of Chinese. I suspect they are not ready yet due to the Chinese Governments’s views of the crypto-markets.
Hey, Hellogold. Look at that, free to register, never heard of that before, NOT! It seems you buy or sell, though you have to buy gold first before you sell by topping up your “free” account. You have to pay fees on the buy and the sell, and if you buy gold you have to pay for them to store it. Sure, it’s only 2% for each of these services but that can add up; Once again, they are selling gold at premiums. I’m moving on. nothing special about this one. I say goodbye gold!
I have to say, there are so many coins pretending or acting like they are gold backed that it is difficult to tell who really is real. Gold images of these coins proves nothing and there are plenty of examples of coins showing gold imagery but in truth they have no links to gold, and often, no real connection to crypto-currently. Trying to link a coin with a credit card or even debit card is not really conducive to the ideals of crypto. Certainly not at all “decentralized”. But does any of this matter? Do we really care? Aren’t we all looking to make a billion dollars on Bitcoin? Or, find the next “investment” vehicle for a penny and ride it up to $20,000.
For me, I just want a stable, gold-backed crypto-currency that will allow me to buy and sell good and services, with low transactional costs and no inflationary issues. But, I don’t think I will find that with the crypto-coins described above. But, I am confident that what I am looking for is out there.
I have to say, I got the inspiration for writing these comments on Gold-related crypto from “crypto-classification need to know before investing” at XGold site. I was surprised to find that there are so many coins pretending or acting like they are gold backed that it is difficult to tell who really is real.
Gold images of these coins proves nothing and there are plenty of examples of coins showing gold imagery but in truth they have no links to gold, and often, no real connection to crypto-currently. Trying to link a coin with a credit card or even debit card is not really conducive to the ideals of crypto. Certainly not at all “decentralized”. But does any of this matter? Do we really care? Aren’t we all looking to make a billion dollars on Bitcoin? Or, find the next “investment” vehicle for a penny and ride it up to $20,000.
For me, I just want a stable, gold-backed crypto-currency that will allow me to buy and sell good and services, with low transnational costs and no inflationary issues. But, Idon’t think I will find that with the crypto-coins described above. But, I am confident that what I am looking for is out there.
Has it come to anyone’s attention out there that Bitcoin seems to be feeding the apathy of the much younger “gamer” generation? These guys (men and women) already believe in immediate gratification! They are for sure not going to work in some “low paid — Low Skilled” job. Why work at all when they can sit at home and become digital paper millionaires by Holding onto Bitcoin! “Hey son/daughter, are you going to get a job today or just sit on the couch smoking legal marijuana? No, Mom, I made $50,000 today on Bitcoin, I think I will take the rest of the year off!
Great if that works for you but how do you buy a car? pay groceries, rent, dentist, child care or even go and buy a beer with Bitcoin? Though you could probably buy Marijuana because the “game” is the same. Outside of that, NO EXIT STRATEGY. You think these coin exchanges are taking heaps of Bitcoin and giving out cash? NO! They may take some, but if you think for a second they are cashing you out on all your brilliant “investor profits” you have another thing coming.
Ok, now you’ve checked that out, go here and read this, “A few years ago, investors talked about cryptocurrencies becoming a mainstream currency, so you would one day buy coffee with your ether. But high transaction fees, slow processing and wildly fluctuating prices make it a tricky replacement for cash. So what to do with $73 billion of digital money? There’s nothing to do with it, so hey, for a couple bucks now you can get a cat,” Mr. Flavelle said. “Nobody’s even pretending it’s going to be a transactional currency anymore. It’s a stored value.” (https://www.nytimes.com/2017/12/28/style/cryptokitties-want-a-blockchain-snuggle.html). Yep, stored value!
Oh, and what does stored value mean exactly? Well, stored value when discussing a bank card refers to the exact amount of Fiat currency the card holder has on deposit. As to stored value of Crypto, it means the amount of coin in terms of digital numbers but with no actual set value. One thing for sure we know, Fiat currency WILL lose value in terms of buying power. Crypto may lose or gain, its a gamble. And, if Crypto was my ONLY form of income I would surely have an Exit Strategy. Do you have an Exit Strategy?
If there is regulation then it is because those making the regulations have figured out how to get the most taxes from the Crypto-Currency Market.
If there is no regulation then I have to say it must be nothing more than to bring attention to the public. Anything else is interfering with commerce. All this makes me think of the health warnings on packets of cigarettes: Danger, Crypto — Currency will give you lung cancer! NO it won’t. But, if a person is cautious and reads carefully, or even just reads a little bit I think the public can be responsible for their own actions. Hey, Cigarettes are addictive and can encourage our youth to take drugs! Maybe Crypto-currencies can also lead to gambling and maxing out credit cards? Maybe, but people do that anyway, how can anyone bring that argument to the table!
What about Governmental opinions: What do the Chinese and Indian’s say? China does not allow the exchange of digital currency. India say Bitcoin is not legal right now. How about Japan? Well, Bitcoin is legal currency in Japan. USA? Totally legal. And yet, William Galvin, the Secretary of the Commonwealth of Massachusetts says the Bitcoin Market “doesn’t pass the smell test”. His responsibilities include overseeing the state’s securities division. Glad he used his high office to make the threat that the Bitcoin Market has risks. Makes me think of 18 U.S. Code § 1951 — Interference with commerce by threats or violence. Imagine, all these threats from persons of authority stressing their rights to bring these statements because of their political positions.
Lucky for Galvin, he also said he was not coordinating with other state regulators on the issue of Bitcoin and its danger at the moment. But, imagine, what will it mean when these politicians get together. You can be sure it wont be to print labels on Bitcoins.
Vitalik Buterin hit the nail on the head recently when he twittered the following: “all crypto communities, ethereal included, should heed these words of warning. Need to differentiate between getting hundreds of billions of dollars of digital paper wealth sloshing around and actually achieving something meaningful for society”.
Not sure what people got from the statement. Many are still lost in the idea that crypto currency was created for the speculative/investment market. During December we saw Bitcoin drop 6,000 USD in “value” over 12 Christmas days. Some will see this as a perfect opportunity to get into the “crypto-market” by buying low with the intention of holding and then, selling high later. And, this is absolutely gambling.
What’s amusing are websites like Coindesk who show index tables and charting that allows users the ability to look for technical details in the charts with some notion that the user can work out where Bitcoin is heading. I can tell you, Bitcoin is going either up or down; place your bets please.
How about we take heed of Vitalik Buterin and support a real utility Coin that is entirely useful in terms of its ability to be acceptable in the market and understood by all. For sure we need a coin that has some fundamental backing — not sand or sugar, or trees or bananas, and certainly not USD (worthless paper); No, we need something far more universally acceptable. We need a crypto backed by Gold.
Now, if we are going to talk about a Real Utility Coin we MUST discuss the transaction costs. After running a brief experiment I can for sure say Bitcoin can never be a Real Utility Coin: Ijust used $50 USD value of Ether and ran it through Shapeshift to get Bitcoin. My $50 US dollars in Ether is now worth $20 in Bitcoin. What happened?
Well, Gas happened! For every transaction using Bitcoin costs right now a minimum of $21 USD (don’t take my word for it, go and check online). So, 21 for Bitcoin, around 2 for Ether and the rest for shapeshift. Now my remaining $20 is locked into Bitcoin and I will have to spend money just to release it. And, it will cost $21 to release it. Yes, I may as well forget it. I shall HOLD my Bitcoin as it is not worth the cost of using it. And, Ether is going down the same path too. In the early days it was a lot cheaper than now. As the Ether goes up in value so do the transactional costs — the gas. Does this sound like a good way to generate a Utility Coin? No way. It sounds like a good way to get rich: create a super fast highway and charge all the cars to use it. Do you hear all that Digital Paper Wealth Sloshing around? Maybe, but i also hear Ether gas accumulating into the Billions of USD.
Before we all start accusing each other of self-serving selfishness. We should really think hard about what a Real Utility Coin should look like, and how the coin should move about. Comments?
The most important term when discussing any crypto-currency is whether it has Utility. Utility is really the satisfaction from using something, or rather the ability of a “goods or service” to satisfy a want. Which makes we wonder what satisfaction I might get from a handful of Bitcoins. Well, I might be really satisfied that they have gone up since I first obtained some. But, this is not the same thing. Bitcoin were surely not solely created to turn a profit. Not at all. They came about as a utility coin: to be used as something to satisfy a set of needs. Has Bitcoin lived up to that objective? Well, I don’t see how you can exist solely on Bitcoin, and as it is somewhat difficult to cash it out it large qualities or even buy it in large quantities in Fiat currency without bringing attention to yourself I would say not really. I would suggest Bitcoin has taken on a sort of different role. That being a place to put a monetary value – albeit an unpredictable value, as a sort of unconventional investment vehicle with some hope that in a really short term with enough coins a person might be able to retire. So, does Bitcoin have satisfying utility? i don’t really know.
Of course, there are many other coins out there pretending to have utility, and some that do have utility. XGC is a Gold backed crypto-currency built for Utility. Here’s how: 1. It can be used to purchase goods and services in mining communities. 2. It can be used as a payment for wages/salaries in associated mining industries: Gold, Diamonds etc. 3. It can be used by Vendors who work in mining communities to accept in exchange for goods and services. In fact, XGC works in a full circle: it is used to buy gold and diamond products. The seller of the product uses the coin to pay wages. The wage earners use the XGC coin to buy supplies from local shops/vendors. The local vendors use the XGC coin to buy their goods at a wholesale price. The wholesalers redeem refined gold product from XGold Corporation in exchange for the XGC coin: complete circuit of maximum utility. And, why do they use XGC Coin? Well, because using cash is very dangerous: cash is bulky, cash needs to be banked, cash can be easily stolen from the holder, and cashing is expensive as banks change the holders of cash for keeping the cash! In fact, cash is all around a terrible medium for holding value and worse, it devalues the longer you hold it. XGC however does none of those things: XGC is digital and is secured by a secret pass code only the holder knows. XGC is an immediate value transfer system. There is no risk in carrying, banking, or holding, and as to value loss, whereas Cash is linked to nothing other than the good will of any sovereign governments ability to pay (all of them are broke), XGC is backed by Real Physical Gold. Does XGC pass the utility test? With flying colors.