Welcome to Daily Cryptocurrency News Roundup 3rd Nov, 2017 edition.
Find the most important news of the day in brief with insights. Subscribe us to stay informed.
#1 Is a Cryptobubble in the making?
- Most ICOs only need a business idea that is vaguely related to the blockchain to get success.
- Companies that simply added “Blockchain” to their company name, rose in valuations.
- Total market Cap is much more that just the circulating value of the tokens.
- Tokens are only good for are short “pump and dumps.”
- Currently a massive bubble going on in the space of “security token.”
People must exercise much restrain and caution when they wish to invest in ICOs.
#2 What Happens To Lost Bitcoins?
- Unused bitcoins just sit on the blockchain until someone uses their private key to move them to another address.
- There are ways to analyze the blockchain and see how long bitcoins have been idle or unused or haven’t moved around for a period of time.
- However, there is no way of knowing whether they are permanently inaccessible or not.
- Lost Bitcoins are lost forever akin to burying them in a planet many times the size of earth.
Avoid keeping Bitcoin money on your smartphone; instead, move them to a cold storage (offline wallet) or a hardware wallet. Use Multisig wallets for enhanced safety.
#3 Hydro Mining, Explained
- It refers to a specific method of cryptocurrency mining that relies on hydroelectric power and water cooling systems to create an energy-efficient and highly-profitable mining operation.
- According to data compiled by Digiconomist, a single transaction on the Ethereum network can power a typical American household for 1.5 days. At 5.5 days per transaction, Bitcoin is even more energy hungry.
- By placing mining equipment directly in hydro power stations in the Alps region, access to up to 85% lower energy prices than European average is possible.
- Visit https://www.hydrominer.org for more details.
#4 Bitcoin – Interest and Inflation
The nature of cryptocurrency is that, on the whole, its value constantly increases due to it being a finite resource, meaning as fiat money becomes less valuable due to inflation, digital currencies become more valuable relative to fiat ones.
When a deflationary asset (cryptocurrency) is sold to buy an inflationary one (fiat currency), it becomes far more difficult to buy back the digital currency that you initially sold. This implies that any cryptocurrency loan would eventually become unaffordable, with or without interest attached.
True cryptocurrencies are strictly finite, they are deflationary by definition. That forces a completely new paradigm for humanity, requiring a totally new take on what we refer to as economics, and how we will react to a system where interest is absent.
#5 GDAX Sets Crypto List Standards
- Framework uses six factors: Alignment with exchange values, general network assessment, laws and best practices, price manipulation metrics, adoption/network effect, and incentivizing participants.
- GDAX will apply know-your-client standards to publically visible founders or leaders.
As people want exchanges to list more coins/tokens, setting up standards would be good move.
#6 India’s Largest Bank Goes Big on Blockchain
- The State Bank of India is gearing up to implement blockchain solutions in a number of financial processes including the management of its Know Your Customer (KYC) system.
- SBI took the lead to establish ‘Bankchain’, India’s first financial blockchain consortium comprising of India’s biggest banks (both public and private) alongside technology companies including IBM and Microsoft to develop and implement blockchain applications in the financial services industry.
By leveraging blockchain components such as Intel SGX and Hyperledger Sawtooth and Primechain’s expertise to build blockchains, SBI plans to realize emerging fintech services such as P2P lending, crowdfunding and digital marketplaces that enables financial inclusion.
Disclaimer: Our views are only in good faith and should not be regarded as “investment advice” and Coin Frog cannot be subjected to any kind of liability.