How Regulation Will Unlock A New Crypto-Boom

Regulation is quickly becoming a hot topic in the crypto-world.
The unregulated, “Wild West” environment of the crypto market left investors wide open to fraudsters, scammers, and shady firms out to make a quick buck.
The technology of blockchain and Bitcoin is here to stay. But to bring value to investors, it’s going to need tighter rules and more responsible companies with their eyes on the future.
The crypto market, worth $450 billion, won’t disappear overnight. The next step will be figuring out how to establish rules, expectations and regulations for making the market work smoothly.
And one company is positioned to meet that need: Hashchain Technology Inc. (TSX:KASH.V; OTC:HSSHF)
This is a blockchain company that can do it all: mine coins, diversify investment in a variety of different crypto-currencies, and navigate the crypto marketplace.
But KASH is going a step further: it’s working on proprietary methods and new technologies to make compliance with new regulations easier.
At a time when state agencies are cracking down on the free-for-all within the crypto world, KASH is set to making earnings from crypto-currencies regulation.
Here’s five reasons to take a strong look at Hashchain Technology Inc.:
#1 Order to Chaos
Last year, Bitcoin and blockchain was on everyone’s mind. The value of crypto-currencies was shooting through the roof, and everyone wanted in on the action.
Major papers ran multiple stories trying to explain what cryptos were, how the blockchain worked to facilitate crypto transactions without middle-men, and investors were offered dozens of opportunities to buy into new cryptos through initial coin offerings (ICOs).
Now, the view is a bit different.
Governments, banks and investors are all worried that the frenzy over Bitcoin and other cryptos was fed by fraud.
South Korea and China began considering bans on crypto mining, which is immensely energy-intensive and difficult to monitor. South Korea specifically wants to start licensing crypto-currency exchanges to bring trading under closer surveillance, in order to prevent fraud.
Authorities in the U.S. are worried about crypto-currencies being used to launder money, and want investors to start ponying up their taxes.
The crypto-currency Bitcoin has been accused of acting as a Ponzi scheme. Coinbase, the popular crypto market hub, has even been subpoenaed by the IRS to get information on its customers.
Both political parties have now called for tighter crypto regulations.
While a full ban on mining isn’t being seriously considered, it’s certain that the crypto marketplace is going to come under greater control in the coming months and years.
#2 The KASH Way
Hashchain Technology Inc is ready.
The company sees regulation of crypto-currency as the logical next step for the industry, and it’s taking steps to meet the new business conditions.
The company, which began as a crypto-currency miner, has acquired the assets of Node40, a blockchain technology and accounting software firm, for $8 million and stock consideration. The acquisition indicates KASH (TSX:KASH.V; OTC:HSSHF) is diversifying beyond its mining strategy.
The Node40 software, called Balance, reports transactions from major crypto-currency exchanges. Individuals on the blockchain trigger taxable events when they buy and sell crypto, but until now, no one was charting these events in a way that ensured regulatory transparency. The potential for fraud was huge.
With Balance at its disposal, KASH is providing tools to investors and regulators to account for transactions, providing up-to-date information on the crypto marketplace.
“The acquisition of the NODE40 Business,” said CEO Patrick Gray in the company’s press release, “is an important next step of creating a global blockchain technology company.”
Regulation is the company’s “niche,” and it’s what makes KASH “different from everyone else,” Gray told Oilprice.com.
#3 Mining for Crypto Gold
Outside of its new approach to crypto regulation compliance, KASH (TSX:KASH.V; OTC:HSSHF) is a mining company with a fresh approach to the crypto marketplace.
The company currently has 870 rigs, with further acquisitions set to bring KASH to a total of 8.4 MW of crypto-currency mining capacity by the end of Q2 of this year.
What does it mean to “mine” bitcoin? Well, companies like KASH use massive amounts of computer processing power to verify bitcoin transactions, and gets paid in  new “coins” which can then be bought and sold on the crypto market.
Even with the booms and busts in the price of Bitcoin, the profits from crypto mining can be immense.
Where gold mining only yielded an 11 percent return last year, investment in certain crypto-currencies can yield returns as high as 20,000 percent.
And KASH doesn’t put its eggs all in one basket. The company plans to diversify its crypto-mining operation, from the major coins like Bitcoin, Dash and Ethereum to a host of smaller coins, which have the potential to bring significant returns.
That means that KASH can profit from the market, regardless of the ups and downs, and as mining difficulty increases for any particular crypto, the company plans to maximize profits by shifting its mining power to different types of crypto-coins.
When KASH scales up from its humble beginnings, it has plans to be one of the biggest crypto mines in the business. And its close appreciation of regulation means it’ll be in an excellent position to work with government agencies who may start cracking down on the more undisciplined crypto firms.
With a small market cap, KASH could be set expand quickly.
#4 Quality Leadership
Hashchain Technology Inc. (TSX:KASH.V; OTC:HSSHF)has a solid leadership team that will guide it through the transition in the crypto marketplace.
CEO Patrick Gray has already achieved tech success: his first start-up was sold to Xerox for $220 million. He was a recipient of Business Review’s “40 Under 40” award and he’s raised millions in start-up capital from investors.
Behind Gray, who provides the strategic vision for the company, there’s CTO Sean Ryan, co-founder of NODE40 and a blockchain expert. CCO George E. Kveton is a “lifelong dealmaker” with 20 years of experience in Fortune 500 companies. He’s signed deals in Israel, China and Silicon Valley.
The team at KASH aren’t the millennial millionaires who caught the media’s attention when Bitcoin took off last year – these are professional tech innovators, blockchain specialists and crypto-currency insiders who are taking the crypto revolution to the next stage, and are doing so in a responsible way.
#5 The Next Stage in Currency Evolution
While the price of Bitcoin may have dipped, the crypto-currency revolution has only just begun.
Investors learned that crypto-currencies are super volatile, prone to dramatic booms and busts, and offer plenty of opportunity for fraud.
But that hasn’t stopped innovators from continuing to develop the market. Branded corporate coins are starting to take off, and blockchain technology has been introduced in real estate, banking and shipping.
There are signs that even Wall Street is taking crypto-currencies more seriously. The price of Bitcoin, which sank below $6,000, has now jumped back above $10,000, suggesting that interest is still very strong.
Regulation won’t kill cryptos. Instead, it will make them more reliable and more secure from fraud.
KASH (TSX:KASH.V; OTC:HSSHF) is ready to take advantage of the need for order in the crypto market.
The company’s acquisition of Node40 means it’s positioning itself on the forefront of the regulatory swing in the crypto market, and the company’s mining vision truly sets it aside from the competition.
KASH is prepared for the next phase, and investors should take notice.
Other companies looking to revolutionize their industries:
 
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
 
Forward-Looking Information
Certain disclosure in this release, including statements regarding the performance of the Company’s current and ordered Rigs, and expectations regarding future operations may constitute forward-looking statements. These include that KASH will dramatically increase operations,  that the 5,000 Rigs will be successfully ordered and delivered, the 5,000 Rigs will perform as expected by management and the timing, installation and performance of KASH’s current and ordered Rigs will be consistent with management’s expectations; that mining capacity will increase to 8.7 MW; that KASH will utilize its committed Montana facility space and increase capacity to mine 20 MW;  that KASH will hold a diverse portfolio of cryptocurrencies through mining and otherwise; and that KASH’s software can become part of a regulatory push for regulation of cryptocurrencies.  The forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that the 5,000 Rigs will not be successfully ordered or delivered from the manufacturer or, if delivered, not when expected by management, and the risk that the Company’s current and ordered Rigs will not perform as expected by management or that expected capacity is not achieved; that KASH may not earn cryptocurrencies through mining and may not be able to purchase them;  risks related to changes in cryptocurrency prices, and the profitability of mining them; that cryptocurrencies will not increase in use as expected; the under-estimation of personnel and operating costs; that KASH will not receive required regulatory approvals for building new facilities, using power, or other aspects of its business; that cryptocurrency regulators don’t accept KASH’s accounting and other solutions; the availability of necessary financing; permitting of businesses that KASH intends to invest in; general global markets and economic conditions; uninsurable risks; risks associated with currency and cryptocurrency fluctuations; risks associated with competition offering better or cheaper solutions, attracting away employees or using tactics to drive out competition; risks associated with changes in the financial auditing and corporate governance standards applicable to cryptocurrencies; risks related to potential conflicts of interest; the reliance on key personnel; capitalization and liquidity risks including the risk that the financings necessary to fund continued development of KASH’s business plan may not be available on satisfactory terms, or at all; the risk of dilution through the issuance of additional common shares of KASH; the risk of litigation; the risk that KASH’s management and advisors may not contribute as much as expected to the company’s success; the risk and the risk that cyber-crime may severely damage the value of any or all of KASH’s investments. There may be many other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.
DISCLAIMERS
PAID ADVERTISEMENT.
 This communication is not a recommendation to buy or sell securities. This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. In most cases we are paid by the issuer or a third party to profile the issuer. In this case, Hashchain Technology Inc. (“KASH”) is paying to Safehaven.com eighty thousand US dollars for this article and certain banner ads. We have not investigated the background of KASH. The third party, profiled company, or their affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.
We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications is not researched or verified in any way whatsoever to ensure the available information is correct.
DISCLOSURE. Safehaven.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) does not make any guarantee or warranty about what is advertised above. The Company is not affiliated with, any specific security.
SHARE OWNERSHIP. The owner of Safehaven.com owns shares of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Safehaven.com will not notify the market when it decides to buy more or sell shares of this issuer in the market, but will not trade on material information that has not been disclosed to the public. The owner of Safehaven.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you agree to the terms of this disclaimer. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Investing is inherently risky. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site.

The Next Stage Of The Crypto-Boom

Cryptocurrencies have officially returned to a full-blown-frenzy.
Everyone is trying to get a piece of the crypto-pie. Corporate coins, government coins, and even commodity coins are flooding the market on every level, and investors are scrambling to sift through the madness.
But not all coins are created equal. Knowing which cryptocurrency is worth the investment can be tricky.
Adding to the confusion are companies making big promises to investors with no more than a whitepaper and a dream.
Assets are important in this race. It doesn’t matter if a company is planning to build a billion-dollar crypto-mine or wants to build a portfolio of hundreds of cryptocurrencies – if they have nothing, there’s no reason to invest.
Savvy investors are looking to companies with skin in the game, companies like HashChain Technologies (TSX:KASH.V, OTCMKTS:HSSHF).
Not only does HashChain already have mining rigs, they’re building up an array of assets within the space, beginning with the acquisition of Node40 which is poised to revolutionize the sector.
And the best part? Investors can gain exposure to HashChain’s stunning array of assets with a single call to their stock broker.
But HashChain’s promise doesn’t stop there…
Here are 5 reasons HashChain Technologies (TSX:KASH.V, OTCMKTS:HSSHF) is poised to take over the crypto-world.
#1 – Cryptos Have Huge Upside Potential

Over the past year, cryptocurrencies have seen incredible gains, with the sector averaging 20,000 percent price increases.
The mind-blowing growth of the crypto-sector has minted its share of millionaires, even leading Forbes to publish the very first “Crypto-Rich List.”

Despite media claims suggesting that the bubble has burst, cryptocurrencies still have tremendous upside potential, and HashChain (TSX:KASH.V, OTCMKTS:HSSHF knows it.
Cryptographically secure, transparent, and globally available, cryptocurrencies are poised to give cash a run for its money.
Even governments are racing to get in on the action. Arizona is already preparing to accept tax payments in bitcoin, and other states are sure to follow suit.
But right now, there are so many cryptocurrencies drowning the market, it is difficult for investors to gain their bearings. It’s true – the cryptocurrency does matter. Each coin serves its own purpose, runs on its own technology, and ultimately, these factors will determine a coin’s value and impact on markets.
That’s where HashChain (TSX:KASH.V, OTCMKTS:HSSHF) comes in.
In addition to mining DASH, bitcoin and bitcoin cash, three of the markets’ most innovative and top performing coins, HashChain is carefully considering other coins to pursue in the future. And with the mind-blowing gains seen in 2017, investors can expect the potential exposure to these expertly chosen cryptos to pay off.
#2 – Mining that Matters
2017 was certainly a good year to be a cryptocurrency miner. Profits hit the $2-billion mark for bitcoin miners at beginning of 2017, but by the end of the year, during the surge in prices across the board, total profits generated soared to $50-billion. That’s a 2500 percent increase in profitability is just one year.
Investing in a crypto-miner is a lot like investing in traditional miners, except crypto-miners have a much larger profit potential.
Gold mining, for example, only returns an average 11 percent, while cryptocurrencies are seeing huge returns, averaging 20,000 percent.
Currently, HashChain (TSX:KASH.V, OTCMKTS:HSSHF)  is operating 100 dash mining rigs in their Vancouver location, which enjoys cheap and environmentally sustainable electricity from nearby hydropower dams, and another 770-brand new bitcoin mining rigs are being set up at this very moment.
But HashChain’s ambitions don’t stop there.
Using cash on hand and profits generated from mining, HashChain is planning an aggressive expansion strategy, aiming to grow into a 40MW operation, consisting of approximately 26,500 mining rigs by the end of the first quarter 2019. And, in the process, begin mining other hand-selected cryptocurrencies, as well.
What’s the point of mining other currencies if Dash and bitcoin are performing so strongly, you might ask?
Over time, mining difficulty increases, leading to smaller profits and less return on investments.
HashChain is looking towards the future. Understanding that both the popularity of coins and the profitability of coins could change at any time, they are looking to avoid the inevitable before it becomes necessary. Not only do they aim to dodge the bitcoin bullet but capitalize on the potential growth of up and coming cryptos.
This could make HashChain one of the largest and most diverse crypto-miners on the planet.
HashChain Technologies, according to CEO Patrick Gray, gives investors the opportunity to profit from a volatile market, “that they can’t take advantage of themselves.”
In addition to HashChain’s huge mining operation, they will be running a Dash masternode. These masternodes are essential in the Dash ecosystem. They perform specialized transactions like InstantSend and PrivateSend, which set Dash aside from other cryptocurrencies.
Most importantly, the masternodes earn 45 percent of each block reward split between all nodes, providing the owner of the masternode a 7 percent yearly return on investment – a steady source of income for the owner.
#3 – Wall Street Exposure
As the cryptocurrency craze reaches a full-blown frenzy, Wall Street has definitely taken notice. Institutional investors, however, have favored more traditional platforms over investing directly in cryptocurrencies.
Blockchain pivots and cryptocurrency adoption by listed companies have proven to be huge investor magnets, with some companies surging by nearly 400 percent after adding “blockchain” to their name.
And these aren’t all small companies.
Retail giant Overstock.com saw a 30 percent boost in share prices after announcing an ICO for one of its blockchain subsidiaries, and Kodak, a household name in the United States, saw its share price nearly triple after announcing the KodakCoin.
The most surprising, and maybe even humorous pivot, however, was Long Island Iced Tea’s name change. After renaming itself to Long Blockchain and announcing the potential acquisition of new blockchain projects, its share prices soared by 183 percent.
New crypto and blockchain companies are exploding onto the market, as well. OTC listed First Bitcoin Capital saw an insane increase of 6000 percent YTD before trading was temporarily suspended by the SEC.
It’s clear that investors have been infected by the Fear Of Missing Out – but they’re still not quite sold on the loosely regulated nature of cryptocurrencies.
That’s why HashChain (TSX:KASH.V, OTCMKTS:HSSHF)  is poised to garner a lot of attention in the coming months.
With plans to build a diverse mining ecosystem, HashChain will allow investors to gain exposure to the growing crypto-space without getting burned if one currency takes a nosedive.
#4 – Bringing Order to the Crypto-Space
In a recent report, it was revealed that almost no one is paying taxes on cryptocurrency earnings.
It’s estimated that over 7 percent of the population in the United States has made taxable gains on their cryptocurrency holdings, yet only 0.04 percent of U.S. tax filers actually reported any earnings or losses to the Internal Revenue Service. And it’s almost understandable.
The process to calculate cryptocurrency earnings is beyond difficult. With cryptos reaching all-time-highs in late 2017, followed almost immediately by 50-80 percent losses the very next month, would-be taxpayers simply do not know what they owe.
Even tax professionals are struggling to keep up.
But, HashChain (TSX:KASH.V, OTCMKTS:HSSHF) is already looking toward the future.
With its recent acquisition of the assets of Node40, a blockchain solutions company, HashChain is at a particular advantage in the space. Node40 offers the most sophisticated crypto-tax software on the market.
In such a complicated sector, it can be hard for investors to track their gains and losses, but with Node40’s software, users simply enter their blockchain addresses and the program does the work for them.
The software tracks, adds value to, and totals each cryptocurrency transaction on a user’s blockchain, which will dramatically simplify the entire process.
With this revolutionary software, HashChain has a leg up on its competition.
This acquisition not only puts HashChain ahead of the pack, it brings regulation into the hands of the crypto marketplace rather than from pressure from governments.
#5 – The Crypto Dream Team
HashChain Technologies (TSX:KASH.V, OTCMKTS:HSSHF) is special. They have some of the brightest minds in the game, and with years of experience in the sector and hundreds of millions of dollars’ worth of deals under their belt, it is fair to say that the team is battle tested.
Patrick Gray, the CEO of HashChain, is a computer whiz who has mastered the art of the deal. Primarily involved in the tech industry, Gray knows the space through and through.
Patrick’s very first startup successfully sold for over $200-million, and that was just the beginning. Since then, he has been involved in a number of high-profile deals, and with his extensive tech know-how, investors would follow him to the end of the earth.
Sean Ryan is another expert in the field. As CTO of both HashChain and Node40, he is widely regarded as an industry leader in the development of blockchain infrastructure services and cryptocurrency accounting. Under Ryan’s technical guidance, HashChain is prepared to scale significantly to meet the demands of the growing blockchain industry.
HashChain’s Chief Strategy Officer, Perry Woodin is a cryptocurrency guru. As a Dash board member, one of the top cryptocurrencies in the market, Woodin is as connected as they come.
Not only that, he has changed the way people invest in and profit from blockchain-based networks.
As the founder of Node40, Woodin created an entirely new way to incentivize network participation that is set to revolutionize the entire sector. His experience in data management, and his app development expertise makes him a prized asset in HashChain’s already stacked arsenal.
With this tech dream team, the possibilities are endless.
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
 
Forward-Looking Information
Certain disclosure in this release, including statements regarding the performance of the Company’s current and ordered Rigs, and expectations regarding future operations may constitute forward-looking statements. These include that KASH will dramatically increase operations,  that the 5,000 Rigs will be successfully ordered and delivered, the 5,000 Rigs will perform as expected by management and the timing, installation and performance of KASH’s current and ordered Rigs will be consistent with management’s expectations; that mining capacity will increase to 8.7 MW; that KASH will utilize its committed Montana facility space and increase capacity to mine 20 MW;  that KASH will hold a diverse portfolio of cryptocurrencies through mining and otherwise; and that KASH’s software can become part of a regulatory push for regulation of cryptocurrencies.  The forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that the 5,000 Rigs will not be successfully ordered or delivered from the manufacturer or, if delivered, not when expected by management, and the risk that the Company’s current and ordered Rigs will not perform as expected by management or that expected capacity is not achieved; that KASH may not earn cryptocurrencies through mining and may not be able to purchase them;  risks related to changes in cryptocurrency prices, and the profitability of mining them; that cryptocurrencies will not increase in use as expected; the under-estimation of personnel and operating costs; that KASH will not receive required regulatory approvals for building new facilities, using power, or other aspects of its business; that cryptocurrency regulators don’t accept KASH’s accounting and other solutions; the availability of necessary financing; permitting of businesses that KASH intends to invest in; general global markets and economic conditions; uninsurable risks; risks associated with currency and cryptocurrency fluctuations; risks associated with competition offering better or cheaper solutions, attracting away employees or using tactics to drive out competition; risks associated with changes in the financial auditing and corporate governance standards applicable to cryptocurrencies; risks related to potential conflicts of interest; the reliance on key personnel; capitalization and liquidity risks including the risk that the financings necessary to fund continued development of KASH’s business plan may not be available on satisfactory terms, or at all; the risk of dilution through the issuance of additional common shares of KASH; the risk of litigation; the risk that KASH’s management and advisors may not contribute as much as expected to the company’s success; the risk and the risk that cyber-crime may severely damage the value of any or all of KASH’s investments. There may be many other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.
 
DISCLAIMERS
PAID ADVERTISEMENT. This communication is not a recommendation to buy or sell securities. This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. In most cases we are paid by the issuer or a third party to profile the issuer. In this case, Hashchain Technology Inc. (“KASH”) is paying to Safehaven.com eighty thousand US dollars for this article and certain banner ads. We have not investigated the background of KASH. The third party, profiled company, or their affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.
We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications is not researched or verified in any way whatsoever to ensure the available information is correct.
DISCLOSURE. Safehaven.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) does not make any guarantee or warranty about what is advertised above. The Company is not affiliated with, any specific security.
SHARE OWNERSHIP. The owner of Safehaven.com owns shares of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Safehaven.com will not notify the market when it decides to buy more or sell shares of this issuer in the market, but will not trade on material information that has not been disclosed to the public. The owner of Safehaven.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you agree to the terms of this disclaimer. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Investing is inherently risky. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site.

Does Survival of Cryptocurrency Technology Depend on Human Emotion?

Some technologies continue to exist even if their creators set them aside in favor of something else. A stone wheel remains a stone wheel, regardless of whether you use it. A printing press in a museum still operates precisely as designed, even though it’s been bucked in favor of digital printers. And combustion engines will still run on gasoline, even when the day comes that no one cares to use one anymore.
But this kind of staying power is not the case with the technology that underpins cryptocurrency: blockchain. If people stop caring about a given cryptocurrency, the blockchain that runs it will eventually die out.
How is this possible?
First, let’s review what a blockchain is and how it works. Despite its futuristic-sounding name, it’s actually a simple thing: a digital ledger maintained by a special kind of computer. Traditionally, a ledger is a piece of paper on which changes of ownership are recorded by hand. An ancient ledger might read that I have one sheep and you have three sheep. If either of us buys or sells a sheep, the ledger is updated accordingly. It tracks our account balances, so to speak.
As opposed to sheep, a blockchain records changes in ownership of its “base token.” A blockchain’s base token is also called its “cryptocurrency.” The Bitcoin network’s base token is a bitcoin, the Ethereum network’s base token is an Ether, and the Dash network’s base token is a Dash.
The people who run the specialized computers that execute account balance updates on the blockchain are called “miners.” If they own a competitive number of computers as compared to other miners in the network, they’re likely to win the right of entering an update to the blockchain. Making this update results in the creation of new base tokens — and the miner gets to keep them as his “pay.”
It’s these people who will make or break the future of cryptocurrency technology.
From the giant warehouses of mining computers in China to the little flash drive miner sticking out of your friend’s laptop, all mining efforts are focused on one thing and one thing only: turning a profit. For this reason, miners program their machines to only contribute effort to the cryptocurrency they estimate will bring the most profit — the network with the least mining competition and the highest payout. This is where human emotion begins to play a part.
Because none of us can predict the future, we’re left to make decisions based on how we feel. For example, no American can know for certain that a dollar will be worth anything tomorrow, but we feel pretty confident that it will be, so we choose to work in exchange for dollars today. If every dollar-holder in the world decided to sell all their dollars for something else tomorrow, however, the infrastructure that runs the dollar — that is, the partnership between the Federal Reserve and U.S. Government — would die.
So it is with a blockchain. Whereas all dollar-holders cast an implicit vote in favor of the humans running the U.S. Government and the Federal Reserve, the holders of any cryptocurrency similarly cast a “yes” vote to the humans who make up that network’s infrastructure – its miners.
A dollar collapse tomorrow is exceedingly unlikely due to the gargantuan demand for dollars at this time. The same cannot be said for each of the more than 1,000 (yes, more than 1,000) cryptocurrencies that can be bought and sold using online exchanges today. Some of these cryptocurrencies have a mere five, six or seven-digit market capitalization, which could feasibly be wiped out tomorrow by a mere whiff of bad news — the creation of a bad feeling. And still, other cryptocurrencies have fewer than 20 miners, meaning that on a bad day, the said blockchain is less than 20 peoples’ feelings away from extinction. Does that seem far-fetched? Here’s a list of hundreds of dead blockchains.
Some have called the advent of cryptocurrency the “Wild West” of money, and they would be correct. And like the Wild West, crypto country is rife with two things: opportunity and risk. It is unreasonable to believe that over 1,000 cryptocurrencies will survive in the long-term. Why? Because miners will eventually begin to coalesce around just the most profitable blockchains – the networks whose base tokens they feel will either retain their value or increase. In other words, miners will eventually want to be paid in the base tokens that shed the title of “cryptocurrency” and organically take on the more familiar one of “money.”
Cryptocurrency technology — that is, blockchain technology — may or may not win out in the long run. But, if there’s one thing society cannot function without, it’s money. Across the world, human emotion appears to be moving in favor of the transparency offered by blockchains. If this trend continues, it is almost certain that at least one cryptocurrency will see phenomenal adoption in the years to come. Which one will it be? The answer to that question is still far from settled. This Wild West has only just been discovered, and everyone’s still trying to work out how they feel about it.
Guest post by Amanda B. Johnson of Dash

Why the future of payments may lie deep in the past

It’s that time of year when we take stock, review where we are and try to work out where we are going. Of particular interest is what we term ‘payments’ — a simple term which belies its importance.
Every banking transaction is a ‘payment’ — nearly 400 billion of these were made globally in 2014. And if this appears to be a big number, it is estimated that this makes up only 15% of all transactions worldwide, with the rest being cash-based.
While the past decade has been overshadowed by the near-death of global banking, the ways we give and receive money have undergone a quiet revolution, driven by so-called ‘Fintech’ companies which use leading edge technology to deliver lower-cost financial services.
As a consequence for example, we have seen a rapid rise in peer to peer services. P2P lending organisations such as Lending Club are already moving beyond their social networking roots and adding stronger governance, linking high net worth with lower risk individuals.
Meanwhile London-based Transferwise, which enables P2P currency transfers between individuals without using banks as intermediaries, has been valued at a billion dollars.
Payment mechanisms are also becoming more affordable and, therefore accessible. As we have seen, Near Field Communication (NFC) payments via cards and smartphones are giving people confidence to let go of cash and accept mobile payments.
And in many countries, any small business can buy a card reader terminal for tens of dollars or less, from the likes of Paypal or Square, supporting chip card or NFC payments.
A third trend is how cryptocurrencies such as Bitcoin continue to rise in popularity. Due to their system of record, Blockchain, cryptocurrency payments can take place without involving banks, inviting new models for purchasing goods and services — not least music and arts.
So what does any of this mean? Most importantly, as costs reduce and confidence increases, so the lower limit on transaction size drops. We are unlikely to see the death of cash any time soon, but small change may become a thing of the past.
Acceptance of smaller electronic payments also encourages the rise in minimal-cost services (such a, for example, the individual play of a song). And while traditional cash has a minimal measure, cryptocurrencies operate at sub-cent levels, further enabling micro-payments.
As well as seeing a growth in such services, we also need to watch out for the potential for micropayment misuse, for example for currency laundering or fraudulent provision — if a service is offered for a ha’penny then fails to deliver, few would bother to make a complaint.
We will also, inevitably, see the creation of new intermediaries which offer a layer of governance and trust on top of payment mechanisms. Many are vying for this position, from service providers and handset manufacturers to old and new financial institutions.
Indeed, a new ecosystem is already evolving. Santander, JPMorgan, UBS and Barclays are looking into Blockchain, and Transferwise is in talks with traditional banks about adding a P2P currency exchange feature to their mobile banking apps.
The consequence is of improved flow of money. This is both a blessing and a curse as it yields market unpredictability, as various trading disasters in recent years serve to illustrate. Technology also brings its own risks — not least, it can be buggy or insecure.
Overall however, less friction makes for more efficiency, meaning that the payment mechanism reduces in importance compared to the products or services we are selling or buying.
Currency was never meant to become more important than the things that we do with it, but over the last couple of thousand years it has become so. While we may never go back to a system of barter, our experiment with currency may well be moving back to its proper place.

Fighting for Their Financial Freedom: Millennials Reinventing FinTech

One of the more enlightening sessions at this year’s Money 20/20 payment industry conference (9,000+ attendees) featured new findings from a Foundation Capital survey on Millennials and Financial Services. The survey found that U.S. Millennials as a generalized group (those born between 1984 to 1997) are financially stuck – they have bank accounts, but are swimming in student debt and thus have no money to spend on investments and the extras after food and rent. Not surprisingly, most Millennials do not believe that what savings they have – mandatory Social Security contributions – will actually materialize for them in retirement.
And as indicated by such emerging social constructs as the post-college group house, Millennials are essentially stuck in the bottom tiers of the needs pyramid — not only can’t they save for big purchases, but they are also postponing milestone life events such as getting a place of one’s own, marriage and family.
Ergo you could say that millennials – even more so than the capitalist generation before them (i.e. the wolves of Wall Street) – are obsessed with money. And how it holds them back.
At the same time, Millennials are very facile with their mobile financial apps and rely heavily on them for financial information, services and purchase decisioning. They may have big brand bank accounts, but to them the brick and mortar branch, the ATM, even physical money– are becoming less relevant.
All the above lays the groundwork for continued massive disruption in financial services as Millennials fixate and act on their [lack of] money obsession and the status quo education and financial systems that have literally left them living in their parents’ basements.
And thus driven by the financially disenfranchised (but still optimistic) Millennials, a new FinTech Renaissance is emerging. From alternative methods of lending like SoFi ($1 billion capital raised in Sept. 2015 to help consumers refinance their student loans) to services focused on helping consumers to understand and take control of their credit scores (Credit Karma raised $175 million in June 2015), to bitcoin and other cryptocurrency technology that represent a new payment rail and partial replacement for fiat ($1 billion+ investment in 2015 with blockchain development companies like Chain raising $30 million), Millennials are taking down – or at least making less relevant — the traditional financial power structure one sector at a time.
Over the course of the next year, we’ll take a look at some of the emerging financial services disruptors and trends coming out of Y-Combinator and other incubators and launchpads such as Draper FinTech Connection and Plug and Play’s Fintech Accelerator.

Wiper thinks messaging apps could be the key to bitcoin payments

Wiper, an ephemeral messaging app that launched in 2014, has a reputation as a Snapchat clone, but it’s actually closer to Line, which uses over-the-top messaging as a platform to sell stickers, games, and other entertainment and services. Taking a kitchen-sink approach to messaging apps, Wiper doesn’t just provide messages you can delete with a push of a button, but also includes free calling, YouTube music playlists, and now, payments powered by the bitcoin protocol.

Payments and messaging are a natural fit. In China, you can add a bank account to a WeChat account. More recently, in the United States, Snapchat introduced Snapcash with Square. But Wiper is eschewing partnerships with financial companies and using the bitcoin protocol instead for transferring money from person to person.

Wiper is positioning this feature as a way for people from other countries to send money home. Those payments are called remittances. From Wiper’s blog post:

This promises huge savings for immigrants sending money home and access to tools for the 2.5 billion adults who do not have bank accounts. It will also allow for microtransactions that were previously cost prohibitive, like tipping for media you like.

“If bitcoin is complicated for people who are tech-savvy and used to smartphones, imagine what it’s like for the first-time smartphone buyer,” Wiper CEO Manlio Carrelli said. “But the first-time smartphone buyer is used to the messaging interface.”

Wiper’s bitcoin implementation is fairly elegant. At the bottom of the app, there’s a tab for Bitcoin transactions. Instead of using a person’s inscrutable bitcoin address wallet, you can send bitcoins or fractions of bitcoins to Wiper usernames as part of a chat or through a separate transaction. Wiper lets you send Bitcoin to any wallet ID, even those without an associated Wiper account.

There are a few nice features included, like the fact that Wiper uses a different wallet ID for each transaction, but all wallets are still synced to your Wiper username. On iOS, Wiper uses Touch ID to validate payments. There is also the option to denominate all bitcoin amounts in local currency.

Screenshots-Wiper

There’s just one problem, though. If you don’t already have bitcoins, there’s no way to buy them from Wiper. To upload bitcoins into my Wiper account, I had to transfer them from my Coinbase wallet. On the other end, someone in a country like the Philippines or India might not have an easy way to turn bitcoins from Wiper back into money she can use.

“When you send money to Mom back home, you need to find a place that takes Bitcoin or offload it into local currency,” Carrelli said. “That’s what we’re going to work on next.”

There’s also the issue that bitcoin transactions — even sending the equivalent of $1 to a friend — are permanently and publicly recorded on the blockchain, which seems to be at odds with Wiper’s flagship feature, which is that it can delete all your messages with the push of a button. Your texts might be gone, but your bitcoin transactions will be accessible forever. However, Wiper will delete your transaction history from the app, and since it uses a different wallet ID for each transaction, the hope is that it would be “exceptionally hard to reverse engineer how much bitcoin you have.”

Anybody who’s seriously concerned with security wouldn’t be using Wiper anyway. As of now, you have to take the company’s word that its closed-source communication software is properly encrypted and messages are actually deleted when they’re wiped. Carrelli says that Wiper will release a “whitepaper” from a third-party auditor in the next year.

Still, the concept is simple and alluring. If you’re already using an app to call and message your family back home, why not add an easy way to send them money as well? In this case, despite its downsides, the bitcoin protocol has the advantage of potentially being cheaper than Western Union and similar services, as well as cutting through local regulations.

Wiper wouldn’t share user statistics with me, but it noted that its downloads on Google Play are in the 1-to-5-million range. Carrelli says the app has roughly equal numbers of iOS and Android users, and he also mentioned that Wiper is particularly successful in a few overseas markets like Thailand and Brazil. (According to App Annie, Wiper is the 77th most downloaded app in Thailand, although it climbed to the top spot at one point in December, and it’s currently the 140th most downloaded app in Brazil.)

Wiper has a 12-person team at the moment, based in New York, and it’s been funded by Michael Choupak, the former Intermedia CEO, who has contributed $2.5 million in seed funding.

https://www.youtube.com/watch?v=MM5yX33mewI&feature=youtu.be

Stripe makes its bitcoin pilot available to all US users

After nearly a year of testing bitcoin payments with select customers, Stripe is making the cryptocurrency an option for all of its customers – of at least those with a U.S. bank account. Stripe provides the payment processing for sharing economy apps, online retailers and mobile developers, and they will now be able to add bitcoin to the payment choices on their websites and in their apps with a line of code. Stripe converts all bitcoin transactions into U.S. currency, and it charges a 0.5 percent fee for each transaction.

Winklevoss twins plan to launch new US-based bitcoin exchange

The Winklevoss twins aren’t done with bitcoin yet. Since 2012, the pair so far has invested millions in the cryptocurrency, launched the WinkDex bitcoin price monitor and are still trying to clear regulatory hurdles for their bitcoin ETF, the Bitcoin Trust.

Today, the Winklevosses unveiled their latest bitcoin endeavor: Gemini, a New York-based bitcoin exchange that aims to be the first “fully-regulated” exchange on U.S. soil.

According to their blog post, the twins have been working closely with the New York State Department of Financial Services to build their “next-generation” exchange that is fully regulated and fits within the proposed regulatory framework of the state. As part of that, Gemini will be insured by a New York State-chartered bank, as the blog post explains:

[blockquote person=”” attribution=””]We are also thrilled to announce that we have secured a banking relationship with a New York State-chartered bank. This means that your money will never leave the country. It also means that US dollars on Gemini will be eligible for FDIC insurance and held by a US-regulated bank. Your US dollars on Gemini will be as safe and secure as they are in your bank account today.[/blockquote]

And just to make it clear that it is in fact a Winklevoss joint production (and not Mark Zuckerberg’s or anyone else’s), the name Gemini comes from the Latin word for “twins”, although the pair attributed it to some duality of money idea or Project Gemini laying the groundwork for the Apollo missions.

To be clear, Gemini is not the first U.S.-based bitcoin exchange, but it may have a leg up on the others if it launches “fully compliant” with whatever regulation comes out of the BitLicense debate while the rest scramble to catch up. Exchanges like Coinsetter and Payward have been conducting U.S. business, along with Kraken who can operate in a few states and even merchant/wallet hybrid Coinbase. But the largest exchanges all host the majority of their operations overseas in China, London or Eastern Europe, which doesn’t help instill confidence in users, especially in the post-MtGox era of bitcoin.

Bitcoin has had a bit of a rocky start to 2015 after a security breach in an exchange and a rapidly fluctuating price. And while some big names — cough, Bill Gates, cough — don’t see a future for it, that hasn’t deterred investors or the Winklevii from continuing to pour money and energy into the infant cryptocurrency technology.

Now we just have to wait and see how long it will take this Winkle-venture to get up and running.

Russia blocks bitcoin websites over “shadow economy” fears

The Russian telecommunications regulator Roskomnadzor has blocked access to five bitcoin-related websites because the cryptocurrency “contributes to the growth of the shadow economy.”

The sites include Bitcoin.org, a primary community resource for the cryptocurrency that’s run by the Bitcoin Foundation, the Bitcoin.it community wiki, the Russian-language BTCsec.com security site, the London-incorporated Indacoin exchange, and Russian bitcoin community site Coinspot.ru — although the same service’s Coinspot.io address is not blocked, according to Roskomnadzor’s handy site-block checker.

Roskomnadzor has the power to order ISPs to restrict access to certain sites. Tuesday’s blockages stem from a court order dating back to September 30th last year, although they were only enforced today. In a blog post, the Coinspot.io team said no-one had contacted them directly about the court order, and they had no idea what the court in the city of Nevyansk, which issued the order, had to do with “cryptocurrency and the internet in general.”

An excerpt from the court’s decision posted late Tuesday on TJournal.ru read (according to Google Translate):

Introduction in Russia of other monetary units and production of money substitutes is prohibited. In such circumstances cryptocurrencies including ‘bitcoin’ are money substitutes, contribute to the growth of the shadow economy and can not be used by citizens and legal persons on the territory of the Russian Federation.

Legality issue

Bitcoin’s legal status in Russia is actually quite complicated. The authorities there said last February that it would be illegal to use it as a money substitute, highlighting its potential for criminal use by money-launderers and terrorists. In September, deputy finance minister Aleksey Moiseev said an outright ban may be instituted in 2015. Legislators have recently been talking about heavy fines for the use of cryptocurrencies.

However, the draft bill that would actually ban bitcoin in Russia was recently sent back for revisions by the Ministry of Economic Development, which complained that its definition of “money substitutes” was too general and could hamper corporate marketing programs.

Igor Chepkasov, the chairman of the Crypto Currencies Foundation of Russia, told Coindesk that he thought Tuesday’s blockages were “a dress rehearsal for the prohibition of bitcoin in Russia.” He urged enthusiasts to “unite and fight for their rights” and offered consulting and legal services to those affected.

Indacoin founder “Stan” (who did not want to give his full name) told me today that Indacoin’s hosting provider notified it beforehand that the blockage was imminent. He said his firm had already registered .net, .org and .io addresses, and these would go live in a few hours’ time. Stan, who is Russian, said the ban didn’t have a terrible effect on his business since only around 15-20 percent of Indacoin’s turnover came from the country (he said Indacoin’s turnover was around $1 million between May 2014, when the service began operations, and the end of the year.)

Stan said he thought the situation remained uncertain while the draft law remains under discussion. For that reason, he said, the court’s decision was inexplicable:

Bitcoin is not illegal here in Russia. It was not banned, so in fact they were not able to ban those websites. I guess they did it because they heard some buzz about regulations of bitcoin and bans of bitcoin, but they didn’t have deep insight into the situation.

The blockages are not comprehensive – for example, the Bulgarian site BTC-E, which does a fair amount of trade in ruble-bitcoin transactions, is not blocked in Russia. However, the targeting of the community resource sites in particular suggest that the authorities are trying to at least send a message. It may be relevant that the ruble is in a shaky position these days, thanks to sanctions related to Russia’s invasion of Ukraine, but then again bitcoin itself is less than a sure thing, having lost around half its value in 2014.

This article was updated at 8.55am PT to include and reflect the excerpt of the court’s decision.

Breached Bitstamp to resume trading during Friday, founder says

On Monday the bitcoin exchange Bitstamp suspended operations after discovering a security flaw that allowed the theft of around 19,000 bitcoins, worth roughly $5 million. On Friday morning, its co-founder said it would return later in the day. Bitstamp said on Wednesday it would reopen within 24 hours, and also that its customers wouldn’t lose money due to the incident. At the time of writing, the service has not yet reopened. Blockchain analyst Danno Ferrin wrote in a blog post on Thursday that the stolen bitcoins were likely “being spent or being prepared for spending.” Bitstamp co-founder Damijan Merlak told Reuters on Friday that the breach was under investigation by “various institutions” in Europe and the U.S.