It’s the end of crypto as we know it and I feel fine

Watching the current price madness is scary. Bitcoin is falling and rising in $500 increments with regularity and Ethereum and its attendant ICOs are in a seeming freefall with a few “dead cat bounces” to keep things lively. What this signals is not that crypto is dead, however. It signals that the early, elated period of trading whose milestones including the launch of Coinbase and the growth of a vibrant (if often shady) professional ecosystem is over.

Crypto still runs on hype. Gemini announcing a stablecoin, the World Economic Forum saying something hopeful, someone else saying something less hopeful – all of these things and more are helping define the current market. However, something else is happening behind the scenes that is far more important.

As I’ve written before, the socialization and general acceptance of entrepreneurs and entrepreneurial pursuits is a very recent thing. In the old days – circa 2000 – building your own business was considered somehow sordid. Chancers who gave it a go were considered get-rich-quick schemers and worth of little more than derision.

As the dot-com market exploded, however, building your own business wasn’t so wacky. But to do it required the imprimaturs and resources of major corporations – Microsoft, Sun, HP, Sybase, etc. – or a connection to academia – Google, Netscape, Yahoo, etc. You didn’t just quit school, buy a laptop, and start Snapchat.

It took a full decade of steady change to make the revolutionary thought that school wasn’t so great and that money was available for all good ideas to take hold. And take hold it did. We owe the success of TechCrunch and Disrupt to that idea and I’ve always said that TC was career pornography for the cubicle dweller, a guilty pleasure for folks who knew there was something better out there and, with the right prodding, they knew they could achieve it.

So in looking at the crypto markets currently we must look at the dot-com markets circa 1999. Massive infrastructure changes, some brought about by Y2K, had computerized nearly every industry. GenXers born in the late 70s and early 80s were in the marketplace of ideas with an understanding of the Internet the oldsters at the helm of media, research, and banking didn’t have. It was a massive wealth transfer from the middle managers who pushed paper since 1950 to the dot-com CEOs who pushed bits with native ease.

Fast forward to today and we see much of the same thing. Blockchain natives boast about having been interest in bitcoin since 2014. Oldsters at banks realize they should get in on things sooner than later and price manipulation is rampant simply because it is easy. The projects we see now are the Kozmo.com of the blockchain era, pie-in-the-sky dream projects that are sucking up millions in funding and will produce little in real terms. But for every hundred Kozmos there is one Amazon .

And that’s what you have to look for.

Will nearly every ICO launched in the last few years fail? Yes. Does it matter?

Not much.

The market is currently eating its young. Early investors made (and probably lost) millions on early ICOs but the resulting noise has created an environment where the best and brightest technical minds are faced with not only creating a technical product but also maintaining a monetary system. There is no need for a smart founder to have to worry about token price but here we are. Most technical CEOs step aside or call for outside help after their IPO, a fact that points to the complexity of managing shareholder expectations. But what happens when your shareholders are 16-year-olds with a lot of Ethereum in a Discord channel? What happens when little Malta becomes the de facto launching spot for token sales and you’re based in Nebraska? What happens when the SEC, FINRA, and Attorneys General from here to Beijing start investigating your hobby?

Basically your hobby stops becoming a hobby. Crypto and blockchain has weaponized nerds in an unprecedented way. In the past if you were a Linux developer or knew a few things about hardware you could build a business and make a little money. Now you can build an empire and make a lot of money.

Crypto is falling because the people in it for the short term are leaving. Long term players – the Amazons of the space – have yet to be identified. Ultimately we are going to face a compression in the ICO and, for a while, it’s going to be a lot harder to build an ICO. But give it a few years – once the various financial authorities get around to reading the Satoshi white paper – and you’ll see a sea change. Coverage will change. Services will change. And the way you raise money will change.

VC used to be about a team and a dream. Now it’s about a team, $1 million in monthly revenue, and a dream. The risk takers are gone. The dentists from Omaha who once visited accelerator demo days and wrote $25,000 checks for new apps are too shy to leave their offices. The flashy VCs from Sand Hill have to keep Uber and Airbnb’s plates spinning until they can cash out. VC is dead for the small entrepreneur.

Which is why the ICO is so important and this is why the ICO is such a mess right now. Because everybody sees the value but nobody – not the SEC, not the investors, not the founders – can understand how to do it right. There is no SAFE note for crypto. There are no serious accelerators. And all of the big names in crypto are either goldbugs, weirdos, or Redditors. No one has tamed the Wild West.

They will.

And when they do expect a whole new crop of Amazons, Ubers, and Oracles. Because the technology changes quickly when there’s money, talent, and a way to marry the two in which everyone wins.

Yahoo! Finance Rolls Out Bitcoin Core, Ethereum, Litecoin Trading

Yahoo! Finance Rolls Out Bitcoin, Ethereum, Litecoin Trading

“The virus is spreading,” tweeted Morgan Creek Digital’s Founder & Partner Anthony Pompliano at the news Yahoo! Finance (YF) had integrated bitcoin core (BTC), ethereum (ETH), and litecoin (LTC) into their trading platform. He was one of many enthusiasts to insist the event was an important step in the quest for mass cryptocurrency adoption.

Also read: Venezuela Loves Dash: Altcoin Surges 30% on Adoption Push

Yahoo! Finance Integrates Bitcoin Core, Ethereum, Litecoin Trading

“You can now buy Bitcoin, Ethereum, and Litecoin on Yahoo Finance,” Mr. Pompliano announced through his popular Twitter account. YF’s embrace of cryptocurrency has many in the ecosystem excited about future prospects for more mainstream adoption. That indeed could be the case, or it might also be a deep wish as fans of digital assets slog through a brutal bear market.

YF is, of course, a subdivision of Yahoo!, one of the original web portals in the net’s early days. YF has been around for over two decades, a go-to source of information about stocks and financials. Bitcoiners of a certain age will remember YF as a first glimpse into the power of net information and aggregation.

Yahoo! Finance Rolls Out Bitcoin, Ethereum, Litecoin Trading

Why Litecoin Ahead of Others?

Nowadays, it is less viewed as innovator, and more as a melange, a giant salad of financial information through news, commentary, financial reports, assorted original content and a staple at conferences, along with the usual facilitation of press releases and housing of data. It is just as likely to be seen as a reliable source of financial reporting.

It was gobbled up last summer by Oath Inc, a subsidiary of Verizon. It now claims to be among the largest business news websites in the US. Hints of the broader company dabbling in crypto actually came a few months earlier, spring of this year, when its Japanese wing asserted it would purchase a healthy amount of crypto trading platform Bitarg Exchange Tokyo with hopes of launching its own exchange in the spring of 2019.

Yahoo! Finance Rolls Out Bitcoin, Ethereum, Litecoin Trading

Though its platform does track other cryptocurrencies such as bitcoin cash (BCH), YF has not made them available for trade to the public as of yet (a curiosity, as both, say, ripple and bitcoin cash outrank litecoin, for example, in market capitalization). YF’s crypto data is derived from Crypto Compare.

Is Yahoo! Finance’s crypto integration important? Let us know in the comments below. 


Images via Pixabay.


We’re celebrating Bitcoin Journalist Pioneer Jamie Redman’s work. Check out Jamie Redman’s author archives. It’s an encyclopedia, a living history of crypto. 

The post Yahoo! Finance Rolls Out Bitcoin Core, Ethereum, Litecoin Trading appeared first on Bitcoin News.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Bitcoin in Brief today is slanted toward a crypto winter slowly thawing, as Pantera Capital bets on a moonshot price point. Also, the world’s most popular decentralized digital asset has been forked more than a plate of good pasta; there’s a growing list of countries who’re less likely to nab your crypto profits; Yahoo! smashes rumors; and a good-hearted wager between bitcoin core and bitcoin cash partisans exemplifies how ecosystem actors should treat one another.

Also read: Bitcoin in Brief Saturday: Hide Your Seed

A Panther’s Moonshot

Bulls have a panther as their advocate to help thaw this crypto winter. We reported this week, “Pantera Capital, an investment firm exclusively operating in the cryptocurrency and distributed ledger technology sectors, has published a letter predicting that bitcoin has established the low for its current bear market. Pantera cites a number of factors as informing its market outlook.”

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Among those factors are taxes on capital gains, where estimates are in the many, many billions expected from enthusiasts. That in turn, the fund theorizes, dragged prices down, and bitcoin core has found a bottom at $6,500, as holders were forced to sell in order to pay government bills. We continue, “Pantera also states that ‘It’s highly likely’ for the price of bitcoin to exceed its previous record highs of $20,000 ‘within a year,’ asserting that ‘A wall of institutional money will drive’ the growth in price.”

Speaking of Taxes

Until that prediction comes true, readers should pack their bags to save money from the tax man! Start looking for places to stay in Germany, Slovenia, Denmark, Belarus, South Korea, Singapore, as they’re some of the most advantageous.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

We stressed how many “jurisdictions have yet to update their tax laws to encompass cryptocurrencies. Rules governing taxation are often incoherent and very different even in countries that are part of a common space. In the European Union, for instance, tax rates in member-states vary between 0 and 50%.”

Forking Crazy

Be honest. You’ve never heard of Bitcoin Minor, Bitcoin King, nor Bitcoin Boy. How many times would you guess the Bitcoin network has been forked? During an extensive and really interesting investigation, we revealed nearly 70 times. That’s right, 70.

We summarized findings as how forking “bitcoin used to be a rarity. Then it became the norm. And then it became a meme, with anyone and everyone forking bitcoin on a weekly basis. There have now been a total of 69 bitcoin forks plus another 18 altcoin forks. Holders of bitcoin, monero, ethereum, and litecoin can claim almost 80 additional coins for free. Whether it’s worth their time to do so, however, is another matter.”

The Fork of All Forks Remains a Solid Option

The most famous of forks is, of course, bitcoin cash (BCH). Its being faster, sleeker, younger, and bigger (block wise) has lead those on the bitcoin core (BTC) side to take a stance on BCH’s long term viability. And while each side feels passionate about its coin, and the future that it entails, debate often become rancorous, turning everyone off.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet
A reader responds to a hilarious bet.

We reported how two well-known advocates joked and ribbed one another about Core’s anticipated Lightning Network solution. They bet bragging rights if a demonstration of the solution failed a basic transaction. Loser would have to wear a t-shirt of the winner’s coin. Regardless of which won, the import is how the two men exchanged laughs and good humor, and the ecosystem needs more of both.

Japan Continues to Lead

No laughing matter is how the crypto winter continues its thaw as “Yahoo! Japan has confirmed that it is entering the crypto space by acquiring a stake in a Japanese cryptocurrency exchange that is already licensed by the country’s financial regulator. The company plans to launch a crypto exchange in the fall of this year,” we explained.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

We Have the Best Readers in All of Crypto

Thanks to our readers liking and sharing, our post on aspects of Islam possibly opening to cryptocurrency was picked up and republished and referenced around the world. Some contend it was the root cause of bitcoin’s recent price rebound. Great job, gang.

The crazy good book by Wendy McElroy we continue to serialize brings in wonderful reader comments and observations. To wit:

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Do you think bitcoin will continue to rise or to fall to new lows? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Bitcoin in Brief Monday: A Panther’s Moonshot Bet appeared first on Bitcoin News.

Yahoo! Japan Confirms Entrance Into the Crypto Space

Yahoo! Japan Confirms Entrance Into the Crypto Space

Yahoo! Japan has confirmed that it is entering the crypto space by acquiring a stake in a Japanese cryptocurrency exchange that is already licensed by the country’s financial regulator. The company plans to launch a crypto exchange in the fall of this year.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Yahoo! Enters the Crypto Space

Yahoo! Japan Confirms Entrance Into the Crypto SpaceYahoo! Japan Corporation (TYO: 4689) announced on Friday that it is entering the cryptocurrency space. The company expects to launch an “easy-to-use exchange” for cryptocurrencies in the fall of this year, Nikkei elaborated.

Founded in January 1996 as a joint venture between Yahoo! and Japanese multinational conglomerate Softbank, Yahoo! Japan continues to dominate the Japanese internet industry while Yahoo! has been declining in popularity since the late 2000s.

Yahoo! Japan Confirms Entrance Into the Crypto SpaceThrough its wholly owned subsidiary Z Corporation, Yahoo! Japan confirmed the purchase of a 40 percent stake in a crypto exchange called Bitarg Exchange Tokyo Co. Ltd. A person familiar with the matter said that the deal is likely to “total 2 billion to 3 billion yen ($18.6 million to $27.9 million),” Reuters reported. The remaining 60% is still owned by CMD Lab, the parent company of Bitarg.

“We decided to expand the virtual currency business by collaborating with Z Corporation,” CMD Lab Representative Director Yoon Hee Yuan confirmed.

A Stake in a Licensed Exchange

Last month, Bitarg denied reports of Yahoo! Japan’s investment in the company, stating that many possibilities were being explored. However, Bitarg posted a notice on its website on Friday, stating:

Today, the company decided to accept capital participation from Z Corporation…the company will be able to utilize the service operation and security expertise of the Yahoo Japan Group, which will make it easier for customers, [in order] to prepare for the start of the exchange service managed by the company and to improve the operation after the commencement.

Yahoo! Japan Confirms Entrance Into the Crypto SpaceBitarg was established in May of last year. However, the exchange temporarily suspended its service in August 2017, according to Business Insider Japan. The company received a license from the Financial Services Agency (FSA) to trade bitcoin (BTC) in December of last year. According to the news outlet, the exchange service has not resumed as of April 13.

In a recent interview with Sankei, Yahoo! Japan Vice President Kentaro Kawabe explained:

The FSA is stating that [their] review will be tightened for new registrations of virtual currency exchanges, and it will be difficult to enter [the space] without [the] acquisition [of existing exchanges].

The FSA has been inspecting all cryptocurrency exchanges in the country and actively issuing business improvement and business suspension orders, following the hack of Coincheck. Six companies have already withdrawn their applications to operate crypto exchanges in the country.

What do you think of Yahoo! Japan entering the crypto space? Let us know in the comments section below.


Images courtesy of Shutterstock, Bitarg, CMD Lab, and Yahoo! Japan.


Need to calculate your bitcoin holdings? Check our tools section.

The post Yahoo! Japan Confirms Entrance Into the Crypto Space appeared first on Bitcoin News.

Crypto Community Fears Passage of the CLOUD Act

Crypto Community Fears Passage of CLOUD Act

The Clarifying Lawful Overseas Use of Data (CLOUD) Act just passed – almost in secret – tucked deep inside a voluminous spending package of well over a trillion dollars. No debate. No up or down vote on the merits of CLOUD. Instead, lawmakers would have had to reject the entire bill, thousands of pages, and risk government shutdown, in order to mount any kind of opposition. CLOUD is a broadening of international law enforcement power when it comes to online activity, and the crypto community is worried.

Also read: Bitcoiners Demand More Crypto CFDs and Spread-Betting in the UK

Hey! You! Get Off My CLOUD!

Senator Orrin Hatch, President Pro Tempore of the US Senate, explained, “The CLOUD Act bridges the divide that sometimes exists between law enforcement and the tech sector by giving law enforcement the tools it needs to access data throughout the world while at the same time creating a commonsense framework to encourage international cooperation to resolve conflicts of law.”

It hasn’t been a great couple of weeks for cryptocurrency privacy advocates. Revelations from notorious whistleblower Edward Snowden showed a long, consistent pattern of US government eavesdropping and tracking of bitcoiners in particular since at least 2013. Now, new US legislation smuggled into an2 omnibus spending bill appears to give government ever-more power in its ability to monitor online privacy.

Crypto Community Fears Passage of CLOUD Act
Sen. Rand Paul proved the only lawmaker to attempt reading all 2,232 pages.

On page 2,201 of a 2,232 page document finds S. 2383/H.R. 4943 Clarifying Lawful Overseas Use of Data portion, commonly referred to as the CLOUD Act. It’s the combined brainchild of legal minds at Apple, Facebook, Microsoft, Google, Yahoo! and Senator Orrin Hatch, 84, who has held his seat since 1977 (Star Wars opened, Jimmy Carter was president, and Atari 2600 was released).

A joint statement from all five companies reads, “The new Clarifying Lawful Overseas Use of Data (CLOUD) Act reflects a growing consensus in favor of protecting Internet users around the world and provides a logical solution for governing cross-border access to data. Introduction of this bipartisan legislation is an important step toward enhancing and protecting individual privacy rights, reducing international conflicts of law and keeping us all safer.”

EFF and ACLU See Further Intrusions and Worse

Companies such as Microsoft have been involved in privacy battles, and one of them has reached the US Supreme Court this year. The Court is mulling over whether Microsoft must give the Department of Justice (DOJ) data stored in Ireland. The case has been ongoing since 2013. It’s probably the case major tech companies want a uniform set of rules governing international compliance laws instead of litigating at every turn. Evidently these platforms feel the CLOUD Act is an optimum compromise between protecting privacy and necessary law enforcement access.

The Electronic Frontier Foundation (EFF), however, is having exactly none of it. Referring to the legislation as A New Backdoor Around the Fourth Amendment, the EFF stresses the CLOUD Act fails “to require foreign law enforcement to seek individualized and prior judicial review. Grants real-time access and interception to foreign law enforcement without requiring the heightened warrant standards that U.S. police have to adhere to under the Wiretap Act. Fails to place adequate limits on the category and severity of crimes for this type of agreement. Fails to require notice on any level – to the person targeted, to the country where the person resides, and to the country where the data is stored.”

Crypto Community Fears Passage of CLOUD Act

American Civil Liberties Union (ACLU) released its own warning regarding CLOUD in conjunction with two dozen privacy-oriented organizations. Among “other things, the legislation would: Allow foreign governments to wiretap on U.S. soil under standards that do not comply with U.S. law; Give the executive branch the power to enter into foreign agreements without Congressional approval; Possibly facilitate foreign government access to information that is used to commit human rights abuses, like torture; and Allow foreign governments to obtain information that could pertain to individuals in the U.S. without meeting constitutional standards.”

Well-respected cryptocurrency luminary Andreas Antonopoulos urged, ““The CLOUD Act passed. It destroys privacy globally, so it had to be snuck into the $1.3 trillion omnibus without debate. Encrypt. Encrypt. Encrypt. Go Dark. When privacy is criminalized, only criminals have privacy. We got sold out, again.” Indeed, cryptography by definition is a privacy oriented pursuit. And so undoubtedly the quest for better privacy coins and encryption methods will continue with at least a little more urgency.  

Does legislation like CLOUD worry you? Let us know in the comments!


Images via Pixabay, Twitter. 


At news.Bitcoin.com we do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published.

The post Crypto Community Fears Passage of the CLOUD Act appeared first on Bitcoin News.

Yahoo Finance launches social savings app Tanda, an alternative to credit cards

 Yahoo Finance today launched a new app called Tanda that allows small groups of either five or nine people to save money together for short-term goals. The app uses the concept of a “money pool” – that is, everyone participating in one Tanda’s collaborative savings circles will pay a fixed amount to the group’s savings pot every month. And every month, one member… Read More