President Trump’s threat to ban WeChat could disrupt the communication of millions of people. Decentralized technology is one solution, but will people really use it? Not necessarily, industry watchers say. In this video I’m going to explain why I believe that Investing in Crypto Now Is The Best Financial Move In Your Lifetime. Basically a tutorial how to do invest Cryptocurrencies are the most trending topic among technologists, entrepreneurs, and investors. Thanks to the innovative technology blockchain, for allowing users to make transactions through a decentralized network. Due to this feature, cryptocurrencies have become the primary medium of a fundraising system for many startups. With the price of Bitcoin at $11,608, the highest price in a year, MARA stock is trading at $4. Is the bitcoin miner worth buying? Cryptocurrencies latest news and history organized by date that contains 1000000+ news archives. Click here to read what world was saying about cryptocurrencies. The idea of decentralized finance is that financial institutions can be created that are run by computers, blockchains and rules that anyone can access free of gaining permission or having to show trust or be trusted. A nice dream, but… it works!
People from the world’s two largest economies could soon have a much harder time communicating with each other. Literally.
The U.S. may soon ban WeChat, the multi-purpose messaging app for more than 1 billion Chinese users, in addition to shutting down TikTok’s American operations. The ban could be disruptive for 19 million active WeChat users in the U.S., including Americans who regularly communicate with China. Popular messaging apps such as Telegram and Facebook’s WhatsApp are blocked in China, further limiting communication channels.
President Donald Trump’s threat highlights how governments can, by targeting centralized companies, disrupt the communication of millions of people. This should be the perfect moment for borderless, decentralized apps that can’t be easily shut down. But it’s not.
Related: China to Launch Major Expansion of Digital Currency Trials
Decentralized apps use blockchain technology to store data in a distributed manner, rather than having it be controlled by a single company. But technical immaturity, legal limitations and ambiguous regulatory frameworks prevent decentralized apps from becoming serious competition for centralized platforms such as WeChat and Facebook’s Messenger, industry watchers said.
“The daily chat activities are still happening in the Web 2.0 world,” Mable Jiang, a Beijing-based principal at Multicoin Capital, a U.S. investment firm with a focus on cryptocurrencies and blockchain technology, said in an email. “The User Interface/User Experience needs to be as good as the Web 2.0-based ones, and this point in fact is the universal hurdle for any decentralized applications to be adopted.”
Decentralized technology experienced exponential growth with large investments through Initial Coin Offerings (ICOs), in which tech companies raise capital through token sales. Status, an Ethereum-based messaging company that aimed to be the answer to WhatsApp, raised over $100 million in June 2017, while Telegram, which aimed to launch Telegram Open Network (TON), a public blockchain project that could be applied to its messaging app, managed to raise a staggering $1.7 billion. Telegram later had to abort the project due to a legal dispute with the Securities and Exchange Commission (SEC).
“Decentralized technology has improved tremendously over the past three years in terms of performance and user experience,” said Jonathan Zerah, head of marketing at Status. “However, much of the technology is still in its infancy and requires much improvement to be compared to legacy systems and web2 messaging apps.”
Related: Nigerians Are Using Bitcoin to Bypass Trade Hurdles With China
Blockchain-based messaging apps currently have only the most basic functions such as text messaging and audio chatting, and that might not satisfy all the needs of users, said Jason Wu, CEO of Definer, a decentralized financial services startup.
“If people want to video chat, they would probably use Skype or Zoom via a Virtual Private Network (VPN), which is otherwise unavailable on decentralized messaging apps,” Wu said.
Another reason why it is difficult for decentralized messaging apps to reach large-scale adoption is that many users on WeChat and Messenger might not view privacy, which is a top priority for decentralized apps, as their biggest concern.
Centralized messaging apps might store and analyze their users’ data to come up with new features that make the user experience more convenient. Facebook has long attracted controversy for using personal data to sell ads, and it’s well-known that WeChat messages could be accessed by Chinese authorities. But concerns about privacy have not caused users to abandon these platforms en masse.
“Many of the issues of decentralization lie in the tradeoff of security and privacy for convenience,” Zera said. “I think there needs to be better systems in place for identities and growing one’s network without sacrificing personal privacy and the privacy of their contacts.”
Popular encrypted messaging apps such as Signal and Telegram have better privacy protection, but they are not decentralized. While these companies claim they can’t read your encrypted texts, user data is stored in a centralized system and the companies have the ability to shut off their services.
Downloads of Signal and WeChat have spiked since the ban. WeChat users in the U.S. scrambled to install the latest version of the app before it is removed from the app stores, while people in China sought alternatives like Signal in case they can’t use WeChat to connect with people in the U.S.
The U.S. has not yet released specific guidelines on how to implement a WeChat ban. Some possibilities might include removal from apps stores in Apple’s IOS and Google’s Android operating system, or barring these two companies from providing access or updates to users in the U.S.
One argument for decentralized messaging apps is their technical resistance to government surveillance and censorship, as user data is encrypted and stored in a multitude of private servers.
“Centralized technology creates choke points and attack vectors for third parties to exploit,” Zera said. “They become susceptible to financial exploitation and even blatant censorship.”
However, a government can still retain a certain degree of control over decentralized apps, at least for now.
“With the current internet infrastructure available and general reliance on internet service providers (ISP), decentralized applications are not actually free from government control,” Zera said. “Oftentimes, an internet connection is still required to access decentralized applications, which are ultimately operated by centralized corporations or even governments – this has been proven in eastern Europe and other parts of the world.”
Following Belarus’ controversial presidential election result on Sunday, the country experienced a national internet outage. Major social networks and message sites including Viber, Telegram, Facebook, Twitter and Instagram were down, as were local news outlets.
A decentralized mesh network is one way to resist dapps’ reliance on the Internet.
In a general sense, a mesh network is a local network topology that enables infrastructure devices to connect to many other nodes in which data can be routed between users in the network.
A New York-based startup, GoTenna, aims to build a mesh network of bitcoin micropayment devices that can also relay mobile communications such as text messages. The device, which resembles a cylinder-shaped game controller, can function as a bitcoin hardware wallet that transacts bitcoin without an Internet connection. The base technology for this network is the Bitcoin Lightning Network, and the app in the device is based on the Android operating system.
While it remains to be seen whether a meshnet can be adopted in a transnational scope, crypto payment technology has already been used for censorship and surveillance-resistant communications.
Some decentralized messaging apps are based on crypto payment systems, where people can use their built-in digital wallet to transact major cryptocurrencies such as bitcoin or ether. Status has an ethereum-based wallet and another decentralized messaging app Juggernaut uses the Lightning Network as its base technology and has a built-in bitcoin wallet.
These crypto-native messaging apps are partly designed to help crypto holders make transfers and payments more smoothly while securing their communications in the apps. But mass adoption will require scalable base blockchain technology.
Borderless decentralized technology still has organizations behind it, and these organizations must be incorporated in a particular country. That means a government can exercise its legal power to surveil and control these organizations, according to James Cooper, an international law professor at California Western School of Law in San Diego.
ICOs, which were a common way for decentralized tech companies to raise capital, have been heavily scrutinized by financial authorities across the globe.
The encrypted messaging company Telegram raised $1.7 billion from its ICO in late February 2018, in part to build a more decentralized messaging system. Since then the Russia-originated company has battled the SEC in the U.S.. The SEC believes most tokens are essentially securities and companies that launch ICOs have a legal obligation to register with the commission and disclose how exactly they are going to use the investment to develop their technology.
Telegram refused to disclose the information out of concern that the disclosure could potentially lead to government regulation and surveillance of its system. Telegram eventually agreed in June to stop its TON project and return money to investors, as well as pay a $18.5 million penalty to the SEC.
From a legal perspective, decentralized messaging apps are no less vulnerable to a country’s national security law than popular apps such as WeChat and TikTok.
“Decentralization in the end is trying to skirt much of state regulation, but I would encourage people to pay attention to the rules and the laws because national security trumps all,” Cooper said.
- A WeChat Ban Should Be the Moment for Decentralized Tech. But It’s Not.
- A WeChat Ban Should Be the Moment for Decentralized Tech. But It’s Not.
Author: David Pan
Investing In Cryptocurrency For Beginners
Personal finance is as boring as flossing. But investing for the future is probably a really good idea. realastate is to expensive, and investing in the stock market feels scary at the moment. Gold and silver has gone up, but sitting on a physical pile of gold just doesn’t suit me.
In this video I will explain in a simple way why you should invest in crypto, how you do it, how you can get passive income from crypto and of course why I believe cryptocurrencies will sky rocket very very soon…
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Why The Government Wants To Control Cryptocurrencies
Cryptocurrencies are the most trending topic among technologists, entrepreneurs, and investors. Thanks to the innovative technology blockchain, for allowing users to make transactions through a decentralized network. Due to this feature, cryptocurrencies have become the primary medium of a fundraising system for many startups.
Well, these startups are focusing on creating innovative applications, programs, and solutions for different purposes. For example, IBM is providing blockchain-based solutions to its clients in exchange for cryptocurrencies. But the government of several countries has banned cryptocurrencies for different reasons. The main reason is money laundering and fraud.
However, the government of some countries wants to impose rules to control digital currencies instead of banning them. Here are the main reasons why governments in regulating the usage of cryptocurrencies.
Reasons for Regulating Digital Currencies
There are various reasons for which the government wants to regulate digital currencies. Below are some major reasons that the government of many countries is trying to control digital currencies.
1. To Stop Money Laundering and Fraud
If you go back to the history of digital currencies, you will find that many people had lost their money in the crypto market. Digital currencies have come into existence in 2008, and the first digital coin is bitcoin. In the initial years, people couldn’t understand what is the usage and concept behind digital currencies. So cybercriminals used this as a way to loot money from the public by showing them great investment opportunities.
Due to the decentralized nature of cryptocurrencies, it is hard to find the identity of the person involved in the financial transactions. There are different ways to take away money from the public. Some of the ways that fraudsters use to deceive money from the public are by providing a fake trading exchange platform trough a fake ICO announcement, digital wallets. etc.
In 2011, Mt. Gox- a bitcoin trading exchange was ceased for conducting fraud activities and money laundering. To stop such activities the government wants to take preventive measures to save the money of the public.
2. To Prevent Illegal Activities
As cryptocurrencies allow the anonymous feature, smugglers, drug suppliers, gamblers use it for payments. To prevent such illegal activities, the government wants to regulate cryptocurrencies. If you are for a long time in the crypto space you must have heard about the Silk Road Scam. This scam was shut down in 2013, it was used for money laundering as well as for the trade of drugs, weapons, harmful chemicals, etc.
This platform was used for making illegal activities and the transactions were made through bitcoin. Over $200 million bitcoin transactions were done through the platform.
3. To Stop Terrorism
It was found that terrorist organizations are also involved in cryptocurrencies for financial transactions. As cryptocurrencies allow to make cross-border transactions without the permission of the government, they use it for payments.
4. To Provide a Trustworthy Infrastructure to the Citizens
Even though cryptocurrencies provide many benefits such as privacy, easy, faster, and cost-effective financial transactions, people can’t trust the system as it is deregulated. There is a fear among users that the system could be used for manipulation and they may lose their money. As people trust the government, so they will believe more in the system that is approved by the government. So, the government with financial transactions collaboratively wants to provide a trustworthy infrastructure to the public. Follow click money-system, if you want to invest in cryptocurrencies.
5. To Gain Authority Over the Cryptocurrencies
Cryptocurrencies operate through blockchain technology which neither allow the government nor any financial institutions for approving financial transactions. As a result, the government is losing its authority over financial transactions. Again, central banks also losing their customers because of the demand for cryptocurrencies. Hence the government wants to regulate the cryptocurrencies so that it can gain its authority.
The government wants to regulate digital currencies for the above reasons. Some countries have completely banned the usage of bitcoin and other cryptocurrencies. However, banning the usage of cryptocurrencies is not a good solution.
No doubt, the government should impose rules for such fraudulent activities to safeguard the money of citizens. Now, what do you think about the actions of government regarding the cryptocurrencies? Please share your opinion and if you have any queries ask in the comment section.
©2017 ScienceTimes.com All rights reserved. Do not reproduce without permission. The window to the world of science times.
Author: Staff Reporter
Here’s Why You Need to Take a Pass on Marathon Patent Group
Marathon Patent Group (NASDAQ:MARA) hit a 52-week high of $5.25 on Aug. 6. The bitcoin miner filed a shelf registration to sell up to $100 million of MARA stock in the future.
While it’s fallen back some since the announcement, it’s still much higher than it was in late July when it sold $6.9 million of its stock at 90 cents a share. It used the net proceeds of the offering for general corporate purposes, including buying additional bitcoin miners.
Around the same time as the capital raise, the company announced it had purchased an additional 700 next-generation M31S+ ASIC Miners from MicroBT. This Chinese tech company specializes in blockchain and artificial intelligence.
Including the previous equipment purchased, Marathon will have 2,060 miners operational by the end of August, with a total of 3,020 purchased for future use by the company.
“Upon delivery and installation of the 1,360 miners due to arrive in August, the company will have 2,060 Miners operational, producing 184 PH/s. As a result, the Company’s aggregate hashing power capacity would increase by 320% from the current level of 56 PH/s. Based on current Bitcoin prices, the company would expect to become cash flow positive,” the company’s July 29 press release stated.
Marathon expects the final 1,000 S-19 Pro Miners to be delivered in the fourth quarter. In September 2019, it paid $4.1 million to buy 6,000, S-9 Bitmain 13.5 TH/s Bitcoin Antminers. In October, the company said that it would have 7,200 miners in production by mid-December, increasing its production to 100 PH/s (Peta hash or one quadrillion hashes per second).
Interestingly, Marathon never hit 100 PH/s. The company’s press release that mentioned the 700 miners said that it had 56 PH/s as of July 29, 44% less than its October projection. Further, rather than the 7,200 miners in production, it’s supposed to have 2,060 in operation by the end of August, producing 184 PH/s.
That’s a 229% increase in capacity.
Is it just me, or does this all seem like a bit of sleight of hand? It’s as if the entire business is built upon quicksand.
This makes me wonder about Marathon as a viable business. I don’t understand how any sane investor can evaluate this opportunity.
Marathon is paid in bitcoin (BTC) and ether (ETH) for the mining transactions it performs. Due to the fact, the number of bitcoins can’t exceed 21 million, the transactions it performs, theoretically, become more valuable over time.
According to the Bitcoin Clock, all 21 million bitcoins will be mined by 2140. Therefore, there are still 120 years for someone else to capture a big chunk of the market.
Unless I’m missing something, a cryptocurrency version of Barrick Gold (NYSE:GOLD) could swoop in with its billions of cash and permanently impair Marathon’s business.
However, let’s assume this doesn’t happen.
Chief executive officer Merrick Okamoto believes that with 2,060 miners operating at 184 PHs, the company will be cash-flow positive.
In the company’s quarter ended March 31, it had a cash flow of -$1.1 million on $592,487 of mining revenue. Its gross margin in the first quarter was -95.0%, a 21% improvement from its gross margin of -120.5% a year earlier.
Looking at its income statement for Q1 2020, the 157% increase in mining revenue is a step in the right direction.
That said, I have no idea whether the market capitalization of $116.9 million [based on 30.1 million shares outstanding] is overvalued, undervalued, or just about right.
According to Morningstar.com, it has 12-month trailing sales of $1.55 million or 5 cents a share. That works out to a price-to-sales ratio of 77.6, a ridiculous multiple for a company with less than $2 million in revenue.
So, how should investors evaluate Marathon Patent Group stock? Quite honestly, I couldn’t tell you.
“‘Spillover from a resurging interest in cryptocurrencies’ is one reason for recent gains in mining stocks, according to Ryan Watkins, a bitcoin analyst at Messari. ‘It’s natural for mining stocks to rise with cryptocurrencies.’”
Voell goes on to say the analyst belies investors have priced in a bull market for bitcoin, which ought to produce a massive surge in revenue for Marathon.
Honestly, unless you fully understand cryptocurrencies, I don’t think you have any business owning MARA stock.
I’ve been asked to write about a lot of speculative stocks in recent weeks. This one takes the cake.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
Will Ashworth, InvestorPlace Contributor
Cryptocurrencies archive news by date
DeFi: Welcome To The Crypto Revolution
A new wave in crypto has begun and its buzzword is DeFi—which stands for decentralized finance. The idea of decentralized finance is that financial institutions can be created that are run by computers, blockchains and rules that anyone can access free of gaining permission or having to show trust or be trusted, and these cyber financial institutions run on a network of computers anywhere in the world along anarcho-capitalistic lines designed to resist outside interference.
A nice dream (perhaps), now a tangible thing that exists.
It takes forever to open a bank account and many a derriere has to be pecked. Then you can expect a regular flow of demands to prove you aren’t a drug lord or a insurgent, to carry on using their services. It took me much less than 30 minutes to buy some stablecoins and deposit them at compound.finance and have them earning me, well it’s not clear how much exactly, but let’s estimate 7% a year. I sent them no electricity bills, passport photos, drivers licenses and had no tedious forms to fill out or phone lines to queue on for 30 minutes or more to chat with someone in Bangalore to whom Mr Clem’s “phone call is very important to.”
Boom! Instantly I was earning interest and I could see it rolling up in real time. However, right now this technology is definitely version 1.0 (1. Ooooh!) and a messy thing. Interest rates move from one minute to the next; the stablecoins aren’t really stable when you are talking 7% a year and the stablecoins can oscillate around a 2% range in a day. The compound token, which you earn by participating, is a return booster but its value skids around all over the place and is impossible to predict and when it comes to knowing how much of it you will receive in the next year it is impossible to guess. Seven percent or whatever it will turn out to be, just doesn’t seem enough return for all the variables. It’s apparently safe, but like a theme park ride it feels as scary as hell when you have $10,000 locked up in it. Meanwhile Ethereum’s transaction costs have gone nuclear because of the runaway success of DeFi, so actually moving money around is prohibitively expensive unless you are dealing in say $30,000 or more.
My strategy is to be in on governance tokens now, just for a bit of fun in the initial run, then to buy (and trade if possible) the next series of bubbles and busts that always follows a tech revolution like this. Buy and hold is probably the best way to go. Buy and hold all the cool projects that you can actually play with. The scammers are undoubtedly on their way but the real deals amongst the oncoming cowpats will be a huge financial success and the only thing you need to do is skill up and separate the real from the scams.
Covid has changed the world and in the coming years the pace of change will be accelerated because of the dramatic aftermath brought about by the global shutdowns. The world will have to go “risk on” to recover and the winner of those races will undoubtedly grab onto the fastest and most dramatic technologies to try to drag themselves from the quicksand of economic depression. DeFi and crypto will undoubtedly be part of that and in the world that now talks in trillions of dollars, these developments will be hugely valuable.
Clem Chambers is the CEO of private investors website ADVFN.com and author of 101 Ways to Pick Stock Market Winners and Trading Cryptocurrencies: A Beginner’s Guide.
Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018.
Follow me on Twitter or LinkedIn. Check out my website.
Author: Clem Chambers