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7 Steps To Getting Started With Trade Coin Club

7 Steps To Getting Started With Trade Coin Club

*These instructions were written at the very beginning of the pre-launch of TCC with limited information available about the program and while some of the website was still in Portuguese and Spanish. So please be lenient on the accuracy of my instruction steps. Also, keep in mind that website updates and program changes may occur which could also change the process. As needed, I will make updates to this document and make it available here.  [7 Steps Version 1.4, Updated on 3-11-17]

This is a written reference to accompany the Youtube video playlist found here:

Youtube Channel: https://www.youtube.com/channel/UCyc3WvQz66K-spYcsdlNBLg

Covered in this manual:

TCC Step 1: How To Sign Up Correctly In Trade Coin Club

TCC Step 2: How To Obtain Bitcoin To Purchase A Trade Coin Club Plan

TCC Step 3. How To Select And Buy A Plan In Trade Coin Club

TCC Step 4: How To Complete Your Trade Coin Club Account Profile

TCC Step 5: Trade Coin Club Back Office Dashboard Overview

TCC Step 6: How To Transfer Your Earnings & Commissions In Trade Coin Club

TCC Step 7: How To Introduce Other People To Trade Coin Club

TCC Step 1: How To Sign Up Correctly In Trade Coin Club

Step 1 Video: 

How To Sign Up Correctly In Trade Coin Club

  • Use the referral link from the person who invited you. It should look something like mine: https://office.tradecoinclub.com/register/chuck212 or if they’ve shortened the invite link to a forwarding link, then the final landing page URL should still look like the URL above. (The last word or letters after the last slash is your sponsor’s personal invite code. “chuck212” in my case.)
  • Fill out all of the information on the form
  • Use your main email address! (You can only sign up for one spot in TCC, so make sure you take your time and do it right the first time. It is virtually impossible for the TCC tech support staff to make corrections and changes in the position of people in the network. You are only allowed one account.)
  • In the “Type Your Log In” field, you can set it to whatever invite code you want. (It will automatically set it to your first initial and last name if not customized.)
  • In the ID space, type your driver’s license number or your passport number
  • IMPORTANT: At the bottom where it says “Click here to accept the terms stated in the contract” you need to click on it, then review the terms and conditions and scroll all the way to the bottom of it and type in your name in the signature field and click I Accept.
  • After you’ve filled out all of the form, click submit (Save).
  • You will then be sent an email from TCC. Check your email inbox and open the email. Copy your login credentials at the bottom, along with the login URL (back office) and past them to a notepad or word document. Keep them safe and secure. Then click the confirmation link inside the email and this will confirm your account.
  • You can now log into the back office with the credentials you created.

Learn more about the process of how to join Trade Coin Club here: http://TheCryptoCoinExchange.com/how-to-join-trade-coin-club/

 

TCC Step 2: How To Obtain Bitcoin To Purchase A Trade Coin Club Plan

Step 2 Video:

Obtaining Bitcoin:

In order to purchase a trading plan in Trade Coin Club, you need to be able to pay for it with Bitcoin. There are several different websites and services that offer an online Bitcoin wallet. I use Coinbase. It is one of the most popular Bitcoin wallets.

To open a Coinbase account, sign up here: http://bit.ly/CoinbaseAcct

However, Coinbase only allows a maximum of a $250 deposit per weeks for new accounts. Click Here and I will fund your account.

You will need to verify your account and add a payment method such as an online bank account and/or a credit card number. When I started mine a couple of years ago, I used a bank account since I didn’t have a credit card at the time. Back then at least, it took a few days for the Bitcoin to show up in my wallet after making the transfer from my checking account.

However, if a credit card (not a debit card) was used, then the Bitcoin wallet would be funded right away. So if you want a quick transfer of funds, then I suggest using a credit card to make your initial deposit.

Another service I’ve used is CEX.io. You can open an account with CEX.io here: http://bit.ly/joinCEXIO

One of the advantages with CEX is that you can use a debit card and still fund the account right away. (Although they charge a higher fee than Coinbase.)

Blockchain.info is another popular Bitcoin wallet. You can sign up for an account there by visiting: https://blockchain.info

Another route to take is using a Bitcoin ATM. I understand that you don’t even need an online wallet for this type of transaction. For example, you could simply create a hash in Trade Coin Club to fund the account to buy a plan, (Step 3) and create a hash for it, then go to a Bitcoin ATM and deposit your local currency in cash and send it to the Bitcoin hash you created in TCC. (Of course, you would still need to eventually open an external online wallet in order to verify your TCC account and be able to withdraw funds.

You can find local Bitcoin ATMs and learn how to use each brand of them on the Coin ATM Radar website: https://coinatmradar.com/

 

TCC Step 3. How To Select And Buy A Plan In Trade Coin Club

Step 3 Video:

To Purchase A Plan In TCC:

  • Log into your TCC back office
  • Click on Plans -> Buy on the top of the page
  • Enter the value of Bitcoin you will be depositing (Or click on one of the three plans to select one.)
  • *Make sure you take into account a 0.05 Bitcoin registration fee (for any package) and add that amount to the amount being deposited. (TCC will automatically deduct 0.05 BTC as a registration fee when you purchase your first plan.)
  • Confirm the amount
  • Generate Hash
  • Copy that hash number onto a notepad
  • If I’m funding your account and paying your hash, then send that hash to me in a message.
  • If funding the hash yourself: Sign into your external Bitcoin wallet (Coinbase, etc.)
  • Choose to Send Funds
  • Enter the total amount of Bitcoin you will be sending to TCC (including the 0.05 registration fee)
  • Send that amount to the Hash you just created
  • Then go back to TCC and click “Confirm Payment”
  • *Your account should be upgraded. If your plan isn’t actually purchased yet and the Bitcoin were just sent to your main “Funds” wallet, then you’ll need to go to Plans -> Buy, then select a plan and when it asks from which wallet you want to take the Bitcoin from in order to pay for it, you can select the Funds wallet, and type in the amount you want to use underneath it in the field, and pay with it.

There are actually a couple of different ways to complete the task of buying a plan. You can also go to the “Deposit Funds” link under Plans and generate a hash there. Then you would need to send Bitcoin to that hash from an external source: Coinbase, Blockchain.info, Bitcoin ATM, etc. and send the funds to the hash you created. The Bitcoin would then be deposited to your Funds wallet, where you can use them to purchase a plan or upgrade your current plan.

The idea is to get familiar with how to move funds around within TCC. You need to understand what the Counter Sign code is, (next step) and what Tokens are, (next step). You will need to use these as security measures when transacting in TCC.

Moving funds may seem a bit overwhelming at first, but once you get familiar with how the system works, and what to do when moving funds, it’s fairly easy to use.

*After buying the plan: Another important thing you need to do in order to begin trading is to select your trading risk level. This needs to be done sometime between Sunday at 4PM PST / 7PM EST and Monday  at 4PM PST / 7PM EST.

On the dashboard section, on the right side of the page, is the risk level section. Make sure to choose your level, (I always recommend High risk) and set the trading to automatic. You simply want to make sure that your account is turned on and actively trading. (The yellow gear icons in that section will be turning if everything is turned on and the trading is going.)

 

TCC Step 4: How To Complete Your Trade Coin Club Account Profile

Step 4 Video:

*NOTE: This step is not necessary at first. You can still do the daily trading and also refer people to earn commissions without completing it. The only time this step needs to be finished is when you go to extract profits out of the system and send them to an external bitcoin wallet.

There are 4 main steps to completing your TCC account profile.

  1. Buy a package

This process was covered in the last step

  1. Enter an address

Click on the “My Profile” link at the top of the page, then scroll down to the bottom of the page, under the Address section and enter your physical address and your phone number.

  1. Send a Document

This is a picture you need to take and send in. It has instructions on the page, but I will cover it here as well. You need to take a clear, high-resolution photo of yourself holding up a government issued ID next to your face that has your picture and address on it. You can use your driver’s license or passport, or state-issued ID card.

I used my driver’s license and held it up next to my face and took a selfie with my phone. Since my driver’s license address matches the address I have on file in TCC, and the picture was clear and able to be zoomed in on, they accepted it right away. This way is fine, but don’t take a picture in the mirror. (The image of your ID would be backwards.)

However, if you have a separate address from your driver’s license or if you go by your middle name for example, then you’ll need to send in supporting documentation to prove your ID and address. If this is the case, then just contact TCC support and email them a couple good photos of yourself holding up each supporting document so they can easily tell everything is legitimate. And make sure to explain the situation and each document in the email, so that everything is crystal clear to them.

  1. Add your BTC wallet

This is simply your deposit hash for your external Bitcoin wallet. (Every Bitcoin wallet, (Coinbase, Blockchain.info, etc.) has a unique hash number assigned to your account. (Similar to an online checking account number). You can easily find this in the back office of your chosen external Bitcoin wallet. Just copy that Hash number and paste it into TCC in the BTC wallet section

And that’s it. After completing these simply steps, your account will be verified and you’ll be able to withdraw funds when you want.

 

TCC Step 5: Trade Coin Club Back Office Dashboard Overview

Step 5 Video:

Take a tour of the TCC back office dashboard and get familiar with all of its sections and functions.

Here you’ll learn about the platform’s back office dashboard and what all of its sections do. Watching the video for this step is the easiest way to take the tour. But here are written summaries of each section that you can use as a reference:

Dashboard

The Dashboard section gives you a quick snapshot of the balances of your 5 wallets. It also shows you where your profile is at in the stages of profile verification. It also shows you where you’re at within the cycle of your agreement (how many trading days have been completed) and lets you set your risk level and manage the trading settings.

My Network

The My Network section consists of 4 areas: My Network: this shows your overall network downline on your left and right legs. Matrix Network: Shows your 3X12 network of the people on your teams. Unilevel Network: Allows you to search specific members and view the points earned there. Qualification Plan: Shows you where you’re at in the number of cycles completed and what benefits and bonuses you’ve earned.

Financial

The Financial section shows records of your transactions and allows you to move funds. The Financial Extract section shows where you’ve moved money within TCC. The Pay Hash section allows you to search for a pre-generated hash and pay it with one of your wallets. And the Request Withdraw section allows you to extract funds from TCC and send them somewhere.

Plans

The Plans section allows you to Buy Plans and Deposit Funds. The Buy Plans process was covered in Step 3. (It’s where you choose a plan to purchase or upgrade your existing plan). And the Deposit Funds page lets you generate a hash to deposit Bitcoin into TCC from an external wallet.

Tools

The Tools section contains 4 pages: News, Videos, Downloads and Tutorials. Each page’s content is self-explanatory with the title and will be fleshed out with more content as time goes on. (Some of those pages are completely empty at the time this manual was created.)

My Profile

The My Profile section allows you to manage your Profile and Password. The instructions on how to complete your profile and verify it were covered in Step 4. Make sure this information is accurate and up to date.

Language

The Language section allows you to select your language. As time goes on, more languages will be available.

Support

This is where you contact support. Currently, it is simply an email address to use.

Sign Friend

This link opens in a new window and brings you to your sign up page with your personal invite code already embedded in the sponsor field of the form. This is the link you give others to sign up with.

Account

In the top right of the site, you can access the main aspects of your profile and log out.

TCC Step 6:
How To Transfer Your Earnings & Commissions In Trade Coin Club

How to make your first transfer, How to make other transfers after your first. One of the most powerful concepts of this opportunity is the concept of earning compound interest. So the idea is to transfer your daily trade earnings (and referral commissions if any) into your Exchange Wallet so you are trading with a higher and higher amount of funds every day throughout your 8 or 12-month agreement.

Here are the steps to transfer earnings within TCC wallets:

Step 1: Update your Countersign password if needed and make sure you have it handy. (This only needs to be done once. You do not need to do it every time you transfer your earnings.)

Step 2: Go to your Dashboard and look at your wallets and write down the amount of BTC you want to move. If you are moving BTC from more than one wallet, (example: your trading account plus your commission account to send into the exchange), then you need to add the totals and write down the sum.)

Step 3: Go to the Plans section, and then select the Buy link.

Step 4: Generate Hash. Type in the total amount of Bitcoin you want to move. (Remember if it is less than one Bitcoin, then you need to put a zero and then a decimal point, and then the amount.) Make sure the amount is correct and then click Generate Hash. And copy it to a clipboard. (Make sure you only copy the exact hash and not any spaces or other characters.)

Step 5: Go to the Financials Section and select Pay Hash. Paste in the hash code into the field and click the search button. (This will make TCC search its system and locate that hash transaction.)

Step 6: Enter the amounts under each Wallet that you want to move. (They should total the amount that you summed earlier.) Once you’re satisfied that all the numbers and amounts are correct, then click Pay.

Step 7: Then you’ll need to enter your “X-Pass”. This is your Counter Sign code that you set earlier. You may also need to confirm at Token. (A token for the transaction may need to be sent to your email.) So you may need to confirm the transaction with a Token also. (Check your email for a token number and paste in I the token field in TCC.) After you’ve confirmed the transaction, the funds will be moved and you will see that the totals in your Wallets are updated.

TCC Step 7:
How To Introduce Other People To Trade Coin Club

This step is of course optional. You are never required to introduce other people to TCC. You can simply deposit your Bitcoin in order to passively gain trading earnings. However, since the trading alone is so powerful and profitable, many people eventually tell others about their own success and offer an invite to their friends. This section of the 7 Steps will definitely be updated and improved as time goes on, but in this early stage, I thought it was important to at least have some rudimentary structure or outline for a basic process of how to introduce other people to TCC.

Step 1: Show them this short Introduction Video:
 https://www.youtube.com/watch?v=1_hAYr3pjt4

Step 2: Show them a recording of an official TCC webinar Video: 
https://www.youtube.com/watch?v=uTVUq-3om9s

Step 3: Give them your invite link and have them sign up and create a free TCC account.

Step 4: Give them the 7 Steps To Getting Started With Trade Coin Club page:
http://thecryptocoinexchange.com/trade-coin-club-tutorials/7-steps-getting-started-trade-coin-club/

Step 5: Show them how to buy a plan and start trading. (Make sure they actually buy a plan and get started trading.) If you need to help them obtain Bitcoin and follow the 7 Steps, then coach them along the way. Touch base regularly and help them with each step until they have funded their account and are actively trading.

Step 6: Follow up with them regularly, helping them along the way. Once their account is active and trading, stay in touch. Make sure they have studied the 7 steps and know how to use their TCC account. Make sure they know how to move funds within TCC. Make sure they know the importance of transferring their daily trading earnings into their exchange account each day in order to maximize their profits. The important thing here is to keep the communication line open, so they keep moving forward and never get stuck.

Chuck Reynolds
Contributor
Please click either Link to Learn more about –
TCC-Bitcoin.

Markethive

Why Investing in SEO Makes Good Business Sense

Why Investing in SEO Makes Good Business Sense

As Google continues to unhinge marketing models everywhere, companies are increasing spending on digital marketing services. If you are considering investing in search engine optimization (SEO), it may be hard to decide where to spend money, especially when marketing budgets are always tight. Still, SEO firms can potentially bring a lot of value to your business, and many marketers are taking the plunge. According to media analysts at Borrell, SEO spending will reach $80 billion annually by 2020.

 

Why Investing in SEO Makes Good Business Sense

If you are considering hiring an SEO agency for your company, it’s important to understand what you’re buying. In general, SEO work falls into three main buckets:

Keyword research and optimization

This is what most people think of when they think of SEO. “Keyword research and optimization is about defining the audiences you want to reach online, then communicating to Google where you want to meet those people,” explains Andy Kerns, Content Strategist with Digital Third Coast, a Chicago-based digital marketing agency. Kerns continues, “The where in this equation is represented by specific keyword phrases, like “’running shoes’ or ‘payroll software. People search a specific term, and your company shows up in the search results. Then the searchers click on your link — and you meet a new prospect!”

Technical work on websites

This is work you might not associate with SEO, but it is often essential. “The algorithm Google uses to assess and rate all websites is very sophisticated and very picky,” Kerns says. “It has to work extremely fast, in nanoseconds. If you want to meet folks searching for keywords relevant to your offerings, your website needs to be a well-oiled machine that communicates quickly and clearly with Google, at all times. This is not as simple as it sounds. There are literally hundreds of technical considerations when optimizing a website for SEO purposes.”

Link building campaigns

This is an aspect of SEO that might surprise you if you are new to the game — and it’s a game changer. “Consider the hundreds of technical tweaks that need to be made when optimizing a website.There’s a single consideration for Google’s algorithm that rises above all others — we call it links.” Kerns says. “Links from other websites to your website, are what Google counts, and cares about more than anything else. If your website is associated with other important and popular websites, Google will automatically like you more — and display your company much higher (closer to the top of Page 1) in search results.”

The hard part is getting those links in a legitimate way using keywords you care about – and that is where an SEO firm can be invaluable. “If you develop first-class content that is educational, entertaining or both, and you make a concerted effort to share that content with the world, the world will link back to you. We promise. We do this every single day for our clients.,” Kerns notes. While often at least some of the work can be done yourself or with in-house staff, the truth is that letting experts do it for you more than pays for itself, and here are several reasons why: 

True SEO work is systemic.
“If you don’t address everything—technical issues, keyword optimization, link building—it’s highly unlikely you’ll get the results you want,” Kerns warns. “This work is systemic, it’s on-going, and it requires a broad range of skills that would be very tough and costly to add to your existing team.” Hiring an expert or, better yet, a firm of experts, can streamline the process and maximize the ROI —Return on Investment. 

  • Fresh perspective is your friend.
    A common challenge we have is helping clients understand when their keyword strategy needs to shift to meet prospects where they are. We also need to clarify the kinds of link building content that will attract attention from journalists without seeming promotional.” Kerns says. “It’s extremely difficult for most people to see beyond the boundaries of their business, to understand where they need to fit in to the larger picture, We can do that for them.”
  • There are no guarantees.
    You can spend a great deal of time getting educated about SEO and setting yourself up to give it a go on your own, using internal resources. And you may well be successful. But it’s a long shot. SEO is relatively new and it’s a delicate, esoteric trade. Finding a dedicated team with a proven track record and good recommendations is the smarter play here.
  • Get access to the coolest toolbox.
    Think of someone trying to build a house with an old school toolbox versus the tools professional contractors bring to the job. A great SEO team comes with a remarkable array of software tools,” Kerns notes. “These are the essential tools of the SEO trade. Even if you knew just what to source, they’d cost you tens of thousands of dollars to purchase, much less use.”

So, if you have a product or service that’s ready to go to the next level – especially one that has national appeal – strongly consider hiring an SEO firm as part of your growth plan. It’s a smart move for those who are ready for the big leap!

Chuck Reynolds
Contributor
Please click either Link to Learn more about – Inbound Marketing.

Markethive

Coinbase Hopes For Cryptocurrency’s ‘Netscape Moment’ With New App, Token

Coinbase Hopes For Cryptocurrency's 'Netscape Moment' With New App, Token

“Digital currency right now is having its Netscape moment” declared Coinbase chief executive Brian Armstrong at the Ethereal Summit, in Brooklyn, in a presentation about the cryptocurrency company’s most recent product, Token, “a messaging app with money baked in.” Speaking at the Ethereum-focused day-long conference featuring players in the decentralized web, Armstrong said that the Ethereum-based Token, in developer preview and unveiled a month ago, has four main features that show off the potential for innovation in blockchain-based products. First, it enables payments “in every country in the world from day 1,” he said. Plus, the payments are international. The users themselves, as opposed to financial institutions, are in control of the money they put in it. And the platform has its own reputation system, which Armstrong compared to a FICO score, “so you know who and which applications and people you can trust.”

Finally, Token can be used to make payments to apps. For instance, a Mechanical Turk-type app could enable users to do discrete tasks for small payments, but the workers could then be paid in actual money instead of in Amazon gift cards, which is how non-U.S. workers on Mechanical Turk are paid. Armstrong also envisions that Token, which is based on Ethereum, will host apps ranging from currency exchanges to marketplaces, remittance services to lenders,

advice services to cell phone top up providers.

Armstrong’s bold comparison of Token to Netscape,

the first widely popular web browser indicates the company’s hope that Token gains widespread consumer adoption. To begin, Coinbase, which so far has offered its services in developed countries such as the U.S., Canada, Europe, Australia, and Singapore, plans to promote Token in the developing world. Later this year, Armstrong will travel to Nigeria to foster development on the platform.

The comparison to Netscape also suggests Armstrong’s hope that Token ushers in a new stage of evolution in the industry, to a phase in which more consumers interact with blockchains and cryptocurrency but are not necessarily aware that they are doing so. Coinbase’s timing has historically been right. The startup began attracting a following in 2012 in what was then the tiny bitcoin community for making it safe and simple to buy bitcoin with your bank account. In 2015, responding to growing institutional interest in cryptocurrency, it launched Coinbase Exchange since renamed Global Digital Asset Exchange (GDAX), for professional traders.

Now the company is trying to help the industry mature beyond these basic building blocks of a blockchain-based world to have more consumer-facing offerings. In its development of Token, the company created a new protocol called Simple Open Financial Application that makes it easier for developers to build apps for a platform such as Token. In the past, a well-known bitcoin developer who attempted to build a simple bitcoin app spent eight months to get it to work, whereas a developer using SOFA got an app up and running in eight hours. “If it’s that much easier to build these applications, we’re going to see several orders of magnitude more applications being created,” he said, comparing SOFA to the development of simple web programming languages like html and Javascript. He then invited developers to participate in a hackathon beginning June 3 to build applications for Token.

Because Token is more like a web browser than an app store, Armstrong says Coinbase will not be vetting apps that list on Token, though it will be choosing which ones to feature. When asked how the company would deal with apps that are, say, stealing people’s money, he compared it to how the web browser Google Chrome will warn a user if it thinks a site they’re trying to visit has malware or otherwise looks suspicious. “I’m not saying we have zero responsibility,” he told Forbes, adding that Token is not like an app store. “We want to educate users about what they’re using, and if they’re going to do something dangerous, make sure they really know what they’re doing.”

The company, which has raised $110 million from investors incumbents such as the New York Stock Exchange, USAA and BBVA, does not currently have plans to make money from Token though Armstrong said it could lend itself to some possible business models down the line, such as charging for pro features or for usage above a certain number of transactions a month. In his presentation, referring to a popular Chinese messaging app, he called Token “a WeChat for the other 180 countries in the world” and said that it would be like putting a bank in the pockets of every person in the world, which, according to McKinsey, said that financial services on mobile phones could add $3.7 trillion to the GDP of emerging economies within a decade. It's an ambitious goal, but a fitting one for a company whose mission is to "create an open financial system for the world."

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Markethive

Bitcoin Price Breached $2,000, Pundits Coin-Flip What Comes Next

Bitcoin Price Breached $2,000, Pundits Coin-Flip What Comes Next

  

Bitcoin price finally breached the much anticipated $2,000 line,

sending excitement throughout the burgeoning global cryptocurrency community. As early as five a.m. GMT+2 on Saturday, CoinMarketCap listed the pacesetter of digital currency for $2014 with almost $34 mln Market Cap. The $2,000 lane has been expected for some time now but it intensified three days ago when Satoshi Nakamoto's brainchild stabilized at the $1,800 range. On Friday it made it to the $1,900s further increasing the $2,000 price obsession. As much as it is good news for the whole community, what does this mean for all of us? What is in it for the ecosystem? Experts and community members differ on what’s ahead.

Lingham: not healthy

Bitcoin Price Pundit Vinny Lingham is not excited about the current price trend and sees it as very deleterious for space. "Not healthy in my opinion, but clearly everyone else knows best," he noted. "I'll just wait and see."

Malcolm Macleod: problems remain

More so, Gulden Wallet Developer, Malcolm Macleod's concern is that the price has been pushed too high, without the fundamentals to back it up and ultimately it is damaging to the ecosystem. He cites particularly the ongoing transaction queue problems. "These things are always a mixed bag, so probably some good and some bad things come from it," Malcolm stated.

More flow from fiat

But Alexandro Colorado of Bitcoin Mexico believes otherwise. For him, even though Bitcoin certainly has the availability issue but the rally has merits. "It makes sense as there is more money coming into the system," Alexandro explained to Cointelegraph. The Chief Cat Herder of Cryptopulco, the annual cryptocurrency conference in Acapulco, Mexico, Nathan T. Freeman had this to say:

"BTC increases in value relative to USD because people are willing to give up more fiat currency in exchange for Bitcoin. If you try to explain why they are willing, you are projecting a motive for their subjective value, and you're most likely full of shit. Even if the motive you ascribe is correct, you can't prove it. It's just an unfalsifiable claim in a sea of individual choices. It's all good."

Bitcoin Bubble to burst in 2019?

Though the network is growing impressively, hitting pass $2,000 seems like an impending doom for some experts. Whilst others point to some nagging fundamentals, many are optimistic it will keep growing without any blemish.

Alexandro Colorado says:

"A bubble is some sort of manipulation but actual growth is another thing. Companies grow billions in months, why crypto shouldn't? The Mexico-based Bitcoin enthusiast pointed out that a lot of the world still don't know or trust crypto but it doesn't mean we are heading into a bubble.”

When Cointelegraph asked Vinny Lingham if there is an impending bubble,

this was his answer:

"Yes, but people who called the bubble in 2011 were wrong. It took two years to burst."

Coin-flipper

Malcolm MacLeod is unsure if there is going to be a burst, but it is unclear to him what fundamentals if there are any behind the latest price growth. "I think there is a high chance that it is a bubble of some kind but I hope to be wrong," he indicated. Absorbingly, this is Nathan T. Freeman's take on whether it is a bubble and

Will it burst soon:

“There's only one major event in Bitcoin itself that could shape the future, and that's the outcome of the block size debate. All other factors are outside the purview of Bitcoin itself and therefore could shape out. Anyway, you're talking about predicting the simultaneous global effect of huge political shifts.”

"Predicting a bubble is a dice roll, and anyone who claims to know those outcomes is a coin-flipper," he added.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Markethive

Can Applications Communicate Over Blockchains?

Can Applications Communicate Over Blockchains?

  

The author Benedikt Herudek pushes the frontiers of decentralized systems in describing how Turing Machines can communicate over Blockchains.

We will suggest introducing Turing Blockchain Machines, using Blockchains as a Turing Tape. Turing Machines are a simplified yet powerful Model for Computability and the every-day life programs we design and use. We introduce them as a ‘Gedankenexperiment’ on an abstraction of Blockchains as Turing Tapes with specific features to try to answer the question, if applications could communicate over the Blockchain.

This endeavor is connected to the question, how far we can push Software Decentralization and with them human relations and society organized by them? Decentralization is a promise because the Implications of using Technology in the way Bitcoin does, suggest it is possible to defeat large cartel-like organizations, which sit right and accepted in the middle of society.

Technology does have a liberating power if designed right: kicking out ‘middle-’ or ‘highwaymen’ is one of them.

The question raised here (we are not ready to give an answer) is a connected precursor to the vision to endow Blockchains with a ‘Turing Complete Language’. Such Blockchains, foremostly Ethereum aim to have ‘programmable money’ and want to allow decentralizing any application logic, (not ‘just’ money). The approach suggested here aims to have any kind of signal (not ‘just’ money) exchanged via Blockchains, such that it is clear ‘what it means’. Both approaches have in common to attempt to generalize Bitcoin‘s Blockchain approach.

Ingredients of decentralization

If you purchase a good or a service from someone, who doesn’t happen to be your neighbor or a family member, you typically need these three ingredients.

  1. ‘Money’ and an accepted way to pay, like cash or electronic payment
  2. A common nomenclature as a basis for agreeing what you buy and the seller sells
  3. A governance framework to ensure you get what you ordered, you pay what you received and can dispute if appropriate

One form of trade trading over the Internet, private-public key cryptography and browsers are practically indispensable but taken as a given here. When you want to decentralize trade in this sense you need

Regarding (1):
Bitcoin. Bitcoin solves the double spending problem with a distributed System and a ‘hardened’ Ledger based on the proof of work mechanism

Regarding (2):
We can solve this problem if we can prove that Turing Machines can teach each other languages over a Blockchain. This is the focus here.

Regarding (3):
Turing Complete Blockchains, e.g. Ethereum. If we can establish

Smart contracts which are distributed, verifiable and ‘unstoppable’ we have a good chance to digitalize and decentralize important and relevant parts of governance Above listed ‘smart contracts’ realm is sometimes referred to as ‘Internet of law’ as opposed to ‘Internet of money’ referring to Bitcoin and other digital currencies. In the digital realm you can easily imagine one get music files delivered, based on cryptocurrency payment was done or certain conditions (amount of clicks on your post) are fulfilled. Where conditions and delivery lap over into the real world (like delivering a book after you successfully ran a marathon) currently it takes a bit more imagination (and IoT, sensors and maybe even Artificial Intelligence) to imagine the general working of such smart contracts.

Note that questions like ‘Can Machines teach languages’ or ‘Can Machines understand each other’ are rather ‘fuzzy’ questions. They can easily lead astray into questions like ‘Can Machines Think?’ With Chomsky and others, it is important to realize that these questions are ultimately questions as to which metaphor one wants to choose. A better way is to reuse Alan Turing’s approach and try to formalize the question such, that it can be answered.

Half way decentralization

Imagine you ‘don’t mind’ a translation layer as described above in (2). You only mind (1) the decentralized payment and (2) a Turing complete language as part of the Blockchain. Then, you set out to build a new kind of marketplace, a ‘decentralized eBay’ on top of it. Your infrastructure and your payment are decentralized, still, you will end up with a ‘large monolithic application’.

Even on decentralized platforms, for applications, some kind of organization has to define the rules, e.g. how to offer and purchase goods, which data formats they need to use and so on.

Everyone will have to abide the rules that ‘decentralizes eBay’ set up. Even if the founders have best intentions to not monopolize the process, centralization will have to happen because of the basic architecture of the System. A typical answer to this centralization on the Turing complete Blockchain is the so-called ‘Decentralized Autonomous Organization. The idea is essentially the organization defining all rules needed to run the applications, is itself democratic and decentralized.

But however well intended and efficient a Decentralized Autonomous Organization would be, it is still an institution to force parties into agreements on how applications should be set up. The more successful a DAO is the less an individual voice will count, the less autonomy there will be and the more centralized the DAO will look to the individual.

Seeking Decentralization in rich applications on top of a decentralized turing complete platform will lead to centralization on the Blockchain. The ‘trick’ to avoid this ‘successful DAO dilemma’ is to not place entire Applications on an immutable Blockchain. Rather, only the transactions that concern Communication between two parties should go to the Blockchain and only on those (but not on the entire Application Logic) should parties have to agree. To allow innovation you need to give autonomy to their applications and force them under agreements on the shared Blockchain, only where absolutely necessary. You want to keep your network dumb, allow autonomous edges to run innovation.

With ‘decentralization’ we foremostly target towards certain effects on power and social relations we would like to see in the real world, like e.g. making banks unnecessary for payment traffic and central banks obsolete for monetary (specifically inflationary) policies. Technology is an enabler only and technically, decentralization these days is typically implemented by a Distributed System with a consensus system, to ensure there is just one truth in spite of many copies of the shared database. If you stress values like ‘autonomy’, ‘resilience’ or ‘simplicity’ in your system you could with some right also claim that paradigms like ‘Service Oriented Architecture’ or ‘Micro-Architectures’ should be seen as part of the Decentralization Paradigm. Those are architecture patterns, describing how Systems can communicate while being decoupled. They are typically mentioned in an enterprise context and do not have the privilege of carrying the sub-service odor of Bitcoin but they certainly are architectures carrying the possibility to not build ‘huge monolith blocks’, which is really just another expression for ‘not Centralizing’. Some describe Microservice as Service Oriented Architecture without the so-called ‘Enterprise Service Bus’. This is the Integration Layer, which tends to take over a lot of logic like routing and translating different nomenclature. How ‘smart’ you want to design your network and how much logic you want to put into it, is a recurring theme in designing Systems and can have surprising effects, what power relations Systems can implicate.

Of course, there are legitimate usages of a turing complete Blockchain, e.g. for the Internet of Things. Nothing stops one (e.g. if one prefers DAO’s over conventional companies and that does hold a lot of promises) to rewrite known applications on a turing complete Blockchain. However, for the context we are looking at it, turing complete Blockchains main usage would be to – one fine day-(semi-) automate governance with smart contracts.

Automating Translation

Here is why you should care about (2), the translation layer: Your main reason, why Amazon or Ebay has a website you go to, is that it allows you get in touch with the creator or owner of something you would like to have. It allows you to pay (1) and when you paid, it gives you a governance framework (3) to ensure the process (like shipping) works for you because there are legal frameworks behind both the platform and the vendors offering their goods. Somewhat hidden is the fact that the platform delivers a significant (2) ‘translation exercise’ for you. That would be obvious if a Spanish person offers a good offered over eBay by a Chinese person and both only speak English. The platform just sets a common standard (English), how these people can interact. But that would be just the UI surface, the platform itself sets all kinds of standards that enable interaction: The vendor has to accept a certain User Interface and with that, a certain data format prescribing, how the article pictures and descriptions are rendered. That Data format to offer goods then works perfectly with the data format prescribed by eBay to purchase goods, which is the format working ‘under the hood’ when you press the order button. Ebay, in fact, acts as your translator, you have to pay for that. This might be more obvious if we think through this situation in a B2B context where companies would offer and order good via message Systems, automated and without a User Interface. The messages to offer goods would need to be matched with the messages wanting to buy goods. Someone needs to translate these messages into each other.

Typically this just happens via the man in the middle setting a standard. This is the common way these days to establish common terminology allowing applications to talk: per definition. In a typical enterprise, if you want two applications to talk to each other, you make a design, where both parties agree with which messages eg in formats like JSON or XML they will communicate. Whoever went through this, knows this can be a painful process and doesn’t make your projects ‘exactly agile’. On a broader scale, you will have entire bodies with the goal to set standards, like eg the World Wide Web Consortium. Many have good intentions, but the necessary effort and time for meetings and achieving agreements is not a healthy environment for fast innovation. Worse, there are ‘information-cartels’, whose business model eventually depend on establishing and dominating standards allowing people to connect. Ebay and amazon would dominate, even if we would all pay with Bitcoin and even if they were rebuilt on ethereum and ran as a DAO. But all they do is make sure technically people get in touch with each other.

Establishing a common nomenclature per definition is not only stifling innovation it also opens up the backdoor for monopolists and decentralization.

A different way of establishing communication could be to use an approach similar to how we translate natural languages with machines like google translate, essentially we just have a look at how so far parties communicated and draw our conclusion for the future. One could easily imagine building a general machine translation ‘google translate for apps’: all kinds of messages connecting different Systems would be fed in, working translations (typically initiated by humans via above described ‘definition’ approach) would be used to bootstrap the engine and then a self-learning ‘google translate for apps’ would be set up to translate message formats into each other. With the size and clumsiness of the Application Integration Business, it is a surprise, enterprises didn’t use Neural Networks to widely automate this part of the Application Integration Business, just as a decade ago cloud computing started automating (in the sense of ‘hiding from the client’) hardware setup.

Even more so because you don’t have to come up with fancy neural networks to predict, how some Systems will communicate. You could just say if two applications are part of the same industry, they probably use standard XYZ, if they are from the same vendor they probably use standard ABC, if similar Systems have used message formats 123 before for similar cases these two fellows might need just the same, maybe you can parse an XML and reassemble it with some other names and the target system will ‘eat it’. Sometimes a ‘nice & long if then statement’ is just about right.

But doing trade predicting future terminology based on the past just isn’t good enough in many circumstances. Sending Bitcoin over the Blockchain and establishing smart contracts on platforms like ethereum is a binding agreement, which absolutely cannot or should not be changeable: immutability leaving no room for disputes is the cornerstone of such use cases. If you inject now a level of uncertainty as to what your terminology was really supposed to mean, you open the backdoor for irrefutable disputes Imagine Application A sends a message, B takes the translation from an Integration layer, reasoning (‘messages XYZ usually mean in other contexts ABC for applications like me’) and delivers an expensive good. Now, A can always claim ‘well, you misunderstood me. The fact that in cases before the message XYZ translates into ABC doesn’t hold here. I want my money back.’

Predicting future translations based on past successful translations isn’t good enough for Blockchains and the level of trust and binding agreements to base smart contracts on them.

Another way of thinking of this is the following thought experiment. Imagine, a Mars-UFO lands in Amsterdam, Central Station. It’s an unmanned ship, but there is a pretty smart Computer inside. We want to communicate with this device. Connect it to the best and super-trained machine Language Integration layer. It will deliver no results, because saying that our ‘earth-machines’ communicate in ways XYZ, doesn’t mean anything for ‘mars-machine’. Even if we think we ‘understand’ the machine (with an assumption as ‘there are only so many ways how digital systems can operate’), we never really know, if we understand the machine correctly. Now, if ‘setting standards’ stifles innovation, fosters centralization and ‘predicting based on the past’ isn’t a safe enough bet, one way out of the deadlock could be machines teach each other the language, unambiguously and retraceable over an immutable Blockchain, with which they will transact.

Talking Turing Machines

A ‘Blockchain Turing Machine’ is a conventional Turing Machine with the following specifics:

  1. The Blockchain is the shared Turing Tape. There is one machine sending, while the receiving machine is attempting to detect the state machine table of the sending machine
  2. More general, in a Blockchain Turing Band, we will have several participants talking to each other. For our purposes, we will just consider one pair of sender and receiver
  3. Machines can never erase fields, that is for one direction when they move they can only read but not write. This is reflecting the Blockchain immutability feature.

State Machines would be any Applications behind an address, which write transactions onto the Blockchain to communicate with other Applications. There would be no Turing Complete Language, the endpoints, however, could have any Turing Complete Language and any rich features they like. The logical translation and communication layer would be connected to layers for payment and governance, the latter potentially turing complete.

Here is a simple example, Bit Inversion.

The Sender holds a State Machine with the Following State Table. So we write a 1 and move the tape right by one square. The symbol being read is now 1, so we write a 0 and move the tape right by one square Similarly, the symbol read is a 1, so we repeat the same instructions. If, in any case, the Receiver can ‘figure out’ the state table of the sending Turing Machine only if the Sender presents ‘all he got’ (operations, symbols) within a fixed time limit. With that in mind, our question is:

Can we describe a Blockchain Turing Receiver Machine, that is capable of noting down any Blockchain Turing Machine Sender state table unambiguously while watching all the Senders operations and symbols on a shared Blockchain Tape?

If this is the correct question, then one way of investigating is going over the numerous theorems proven over Turing Machine to see what they can contribute. Some other interesting questions to investigate could be:

  1. Are Blockchain Turing Machines (no erase possible) useful
  2. Do we need to restrict the language types (e.g. along the Chomsky hierarchy) sending Machines can use to make translation for the receiver possible
  3. Are there languages or certain statements that can in principle not be translated unambiguously?

We will not discuss those but ask, how we could interpret a ‘yes’ to the question we ask. My conjecture: It means ‘quite a bit’. Take a Computer Program that essentially ‘figured out’ what another Application does, of which it ‘just sees’ some messages. It means this program ‘knows’ what these signals mean and can, therefore, initiate appropriate action. Now, it’s a quite a leap from the Turing Machine sparse notation towards a full Web or Enterprise Applications sending JSON or XML message (‘Clients want a uber- ride Berlin Brandenburger Tor to Tiergarten right now’). But that’s the beauty of Turing Machines, they are simple but can simulate essentially ‘anything’ you need in the digital world. Note also that Applications absolutely do not need to know everything about each other, lots of the typical application logic (how the app works to order an Uber ride, what internal states are saved, how the UI works) is entirely irrelevant to the trading partner (the individuals offering the ride application): Only the transactions counts and that is often much simpler than the entire application producing the message.

Having such a Blockchain Turing Machine Translation Mechanism (transforming a Blockchain into a ‘Babel-chain’ if you will), would have considerable advantages over the above-listed Mechanism to connect Application. The Mechanism wouldn’t offer any ‘wiggle – room’ and no room undue transaction fees. Take the approach, where we assume Application ABC ‘probably meant that’ because similar applications ‘meant that’ in ‘similar cases’. You can’t base important transaction on that unless a human checked it. Because whoever ordered, could always argue there was a misunderstanding, and in this case, the machines cannot just conclude from the past to the future. If you involve humans to review Machine translations or simply set standards for communication from the beginning, you will have all the disadvantages that ‘middlemen’ bring along, best studied with the example of Banks: They will want a share of your transaction, even though they add little value other than facilitating a transaction. They tend to inflate their importance beyond their due position.

If you can automate the translation between Machines and run this over a public and immutable Blockchain, you leave no room for misunderstandings no backdoors as to what ‘was meant’. Everyone can check the ‘understanding handshake’ and the language the two machines agreed upon for their transaction. There is no place for humans or organizations taking an undue tax on your producers and consumers transactions.

After the terminology is agreed, the transaction itself goes into an immutable and verifiable Blockchain, payments and governance can be processed. If we can’t make turing machines teach their language we need to revert to one of the two other ways to make machines talk. Agreements can work, the internet, for example, is widely build on accepted standards like http and smtp – it works, but it is hard to imagine how you could get monopolists agree to standards today. Making a prediction based on past experience can take us far but also only so far as to the binding character we would like to see on Blockchains. A hybrid approach could be another interesting option, where you agree for example on an algorithm to generate translations based on past working translations. And the agreement is that whatever a certain algorithms spits out, will be the agreed message format.

Request for Comment

Decentralization is the task of relieving us of the ‘middle-man’ tax. Gain and fame should be with the producers of goods and much less with cartels dominating trade – just like banks should have a serving, not a dominating role in the economy. Technology allowing true peer2peer transactions with no room for centralisation can play a liberating role. Avoiding centralisation in Networks implies placing the rich application in autonomous endpoints of the network. Doing this requires making ‘Applications talk’ such that there is no human intervention required and certainty over common nomenclature. Asking the question, if Turing Machines can communicate over Blockchains is a way of trying to push the frontiers of Decentralised Systems.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

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Sign up to the new-look Media Briefing: bigger, better, brighter

Sign up to the new-look Media Briefing: bigger, better, brighter

However, the leader of the UK’s psychiatrists said the findings were too simplistic

and unfairly blamed social media for the complex reasons why the mental health of so many young people is suffering. Prof Sir Simon Wessely, president of the Royal College of Psychiatrists, said: “I am sure that social media plays a role in unhappiness, but it has as many benefits as it does negatives. We need to teach children how to cope with all aspects of social media – good and bad – to prepare them for an increasingly digitised world. There is a real danger in blaming the medium for the message.”

Young Minds, the charity which Theresa May visited last week on a campaign stop, backed the call for Instagram and other platforms to take further steps to protect young users. Tom Madders, its director of campaigns and communications, said: “Prompting young people about heavy usage and signposting to support they may need, on a platform that they identify with, could help many young people.” However, he also urged caution in how content accessed by young people on social media is perceived. “It’s also important to recognise that simply ‘protecting’ young people from particular content types can never be the whole solution. We need to support young people so they understand the risks of how they behave online and are empowered to make sense of and know how to respond to harmful content that slips through filters.”

Parents and mental health experts fear that platforms such as Instagram can make young users feel worried and inadequate by facilitating hostile comments about their appearance or reminding them that they have not been invited to, for example, a party many of their peers are attending. May, who has made children’s mental health one of her priorities, highlighted social media’s damaging effects in her “shared society” speech in January, saying: “We know that the use of social media brings additional concerns and challenges. In 2014, just over one in 10 young people said that they had experienced cyberbullying by phone or over the internet.” In February, Jeremy Hunt, the health secretary, warned social media and technology firms that they could face sanctions, including through legislation, unless they did more to tackle sexting, cyberbullying and the trolling of young users.

Chuck Reynolds
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Movers & Shakers: Anna Braun, JT Mega, director of business development

Movers & Shakers:
Anna Braun, JT Mega, director of business development

             

ANNA BRAUN – Director of business development

Anna Braun is helping to build a course for future growth as director of business development at Minneapolis-based food advertising agency JT Mega. Braun said the agency has been interested in adding leadership to build on its strong organic growth, which led to the creation of the new role that she has taken. "The thing that's exciting about JT Mega is there is so much opportunity for continued smart growth," Braun said. "To work with a great foundation and start carving out what some of the next business opportunities look like is really exciting to me."

Braun's responsibilities also include developing new business strategy, leading business acquisition efforts and establishing industry relationships. She previously led brand business initiatives as a marketing manager at Polaris and worked as an account supervisor at Periscope. "I really love the combination of business management and agency creativity and agency strategic work," Braun said. "For me, this role is a perfect mix of that."

JT Mega, founded in 1976, is an independent agency whose clients include Hormel Foods, Land O'Lakes, and the Schwan Food Co.

Q: What's driving the agency's focus on business development?

A: It's been on the forefront of the owners' and the leaders' minds here. They realized that as organic growth opportunities were coming there's a big opportunity for someone to come in and be able to focus specifically on this (new business) effort and help lead that. This industry is changing so rapidly and there's a lot of growth in different areas within the business. You see where the industry is going and now it's: "How do we proactively start carving out space where the industry is growing?"

Q: What are some possible growth areas?

A: The two areas of focus are absolutely expanding our foundation in food service and building on the retail space. We work a lot with clients selling into K-12, into the commercial space. A handful of clients sell directly into retail and direct to consumers. We're looking at where some opportunities in the retail space that would make sense for us.

Q: Why should a company work with JT Mega?

A: We work as an extension of the client's team, bringing a different point of view to the table. We understand the nuances of what it means to be in the [food and beverage] industry. The other thing is our scalability. We work with small, medium and big companies both in the B2B and B2C space. That's something that we really enjoy especially with how quickly this industry is evolving.

Chuck Reynolds
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The technology and economic determinants of cryptocurrency exchange rates: The case of Bitcoin

The technology and economic determinants of cryptocurrency exchange rates: The case of Bitcoin

  

We theoretically discuss the technology

and economic determinants of the Bitcoin exchange rate We use the ARDL model with bounds test to address co-integration of a mix of stationary and non-stationary time series We find Bitcoin exchange rate relates more with economic fundamentals and less with technology factors as Bitcoin evolves We find the impact of computational capacities on Bitcoin is decreasing as technology progresses

Abstract

Cryptocurrencies, such as Bitcoin, have ignited intense discussions. Despite receiving extensive public attention, theoretical understanding is limited regarding the value of blockchain-based cryptocurrencies, as expressed in their exchange rates against traditional currencies. In this paper, we conduct a theory-driven empirical study of the Bitcoin exchange rate (against USD) determination, taking into consideration both technology and economic factors. To address co-integration in a mix of stationary and non-stationary time series, we use the autoregressive distributed lag (ARDL) model with a bounds test approach in the estimation. Meanwhile, to detect potential structural changes, we estimate our empirical model on two periods separated by the closure of Mt. Gox (one of the largest Bitcoin exchange markets). According to our analysis, in the short term, the Bitcoin exchange rate adjusts to changes in economic fundamentals and market conditions. The long-term Bitcoin exchange rate is more sensitive to economic fundamentals and less sensitive to technological factors after Mt. Gox closed. We also identify a significant impact of mining technology and a decreasing significance of mining difficulty in the Bitcoin exchange price determination.

Xin Li

is an associate professor in the Department of Information Systems at the City University of Hong Kong. He received his Ph.D. in Management Information Systems from the University of Arizona. He received his Bachelor's and Master's degrees from the Department of Automation at Tsinghua University, China. His research interests include business intelligence & knowledge discovery, social network analysis, social media, and applied econometrics. His work has appeared in the MIS Quarterly, INFORMS Journal on Computing, Journal of Management Information Systems, Decision Support Systems, Journal of the American Society for Information Science and Technology, ACM Transactions on Management Information Systems, IEEE Intelligent Systems, among others, and in various conference proceedings.

Chong Wang

is an assistant professor in the Department of Information Systems at the City University of Hong Kong. He received his Ph.D. in Information Systems from the Hong Kong University of Science and Technology. He received his Master's degrees from the Department of Finance at Tsinghua University, China, and his Bachelor's degree from the Department of Applied Mathematics at Peking University, China. His research focuses on understanding the social and economic impacts of information technology. His research projects cover topics in the areas of online social networks, crowdsourcing platforms, and financial information technologies. His work has appeared in the Information Systems Research, Journal of Management Information Systems, Decision Support Systems, and in various conference proceedings.

Chuck Reynolds
Contributor
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$1,700? Bitcoin’s Price is Up Even as its Tech Progress Stalls

  

Referred to as the 'honey badger of money'

(after a famous viral video), bitcoin enthusiasts may find this comparison particularly apt of late. Since the beginning of the year, the network's value has nearly doubled – even while the community continues to be mired in debate. Market observers so far have offered a wide range of reasons for this uptick, though not all of them are good, with increasing prices causing concerns that the industry as a whole is entering a speculative bubble.

Supply and demand

Still, not everyone believes the boost is due to speculation. Redwood City Ventures founder Sean Walsh, for example, sent CoinDesk a bullet-pointed email summarizing the various global developments that could be contributing to the bitcoin price surge. He believes developments in South Korea, Japan, Russia, and China have all contributed. The price surge, according to Walsh, is simply supply and demand.

"Bitcoin is dramatically more scarce than most people realize, especially in the context of its total addressable market of nearly 3 billion internet-connected adults," he continued. Walsh framed the situation simply as one where the cryptocurrency is seeing increased demand, which looks to only increase in the future: "Once the global race to own bitcoin commences, the tiny supply of new bitcoins (just 54,000 new coins per month) will be completely overrun by demand,"

he said, adding:

“There just aren't anywhere near enough coins to go around, and pre-existing holders will grasp ever more tightly into this surging market, as perennially dictated by human nature.”

Tensions subsiding

Still, to those following day-to-day technical developments, it might seem odd that the digital currency's price has seen such an upswing amid its scaling debate and a stalled upgrade known as SegWit. Kristov Atlas, a security engineer at wallet and data firm Blockchain, for example, wasn't able to find technical reasons for the uptick in demand.

He told CoinDesk

"I don't see how the price increase could relate to tech changes; no big changes in long term projects like Lightning lately, and the block size stalemate is still status quo."

"It must be something outside bitcoin that investors have changed their minds about," he suggested. While developers, admittedly, might not be experts on economic market conditions, those that have been in the industry for a while are perhaps more aware of how technical developments could contribute to bitcoin’s price. When asked, some argued the state of the technology could have something to do with the recent increase, though, perhaps in surprising way.

For example, bitcoin’s block size debate took a weird turn a couple of months ago, when discussions about the possibility of forking bitcoin into two networks reappeared. This time around, some miners and developers suggested the idea of destroying the chain that didn't follow along with the majority of hashing power.

This has yet to happen, though, and worries about such an event happening have since died down. Some wonder if this could have given the price boost. "I think part of the rally is due to increased confidence that the risk of a contentious hard fork has all but evaporated," Reddit moderator BashCo said. Yet some expect to see a 'correction', where the price dips to a more reasonable place.

The emotion factor

The idea that raised tensions contribute to price swings fits with bitcoin developer and Nakamoto Institute director of research, Daniel Krawisz's view that the price has more to do with emotions. "The price of bitcoin never makes sense and it doesn’t have very much to do with the tech," he said. "It’s about emotion. It’s about greed." Krawisz also sees the price more aligned with bitcoin's original value proposition of giving users more control, rather than more granular tech additions or debates. “It’s not the new features of bitcoin that matter. What matters are the old features? People keep moving into bitcoin because it's a better alternative than their own national currency,”

he said, adding:

"Bitcoin doesn't really need new features, because it's already better."

Though, perhaps echoing other developer's sentiments about a reduction in fear, Krawisz went on to argue that the increase in demand probably has to do with bitcoin's apparent stability, since it’s been around for a long time compared with many cryptocurrencies. "It's the same reason that people always get into bitcoin now as ever," he concluded.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

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The Intersection of Social Media and the Blockchain

The Intersection of Social Media
and the Blockchain

  

Every major social media platform has offered users

a way to communicate with others and earn social currency, such as followers, traffic to their content, likes and retweets. Now, a new breed of social media networks has emerged – one that uses blockchain technology to build platforms enabling users to control their data and escape the censorship imposed by the likes of Facebook and Twitter. In addition, these new social networks reward users with cryptocurrency.

One such new social media platform is Steemit , which runs on top of a decentralized network known as Steem. Steemit rewards users with its own cryptocurrency in addition to social currency. Much like Reddit and Facebook, Steemit uses its incentives to encourage users to post, share and react to content. When someone likes or upvotes a post, it becomes more visible on the site. Steemit rewards the original poster with Steem digital currency that can be exchanged for real cash via Bitcoin or reinvested into "Steam Power," a token that represents how much influence a person has on the Steemit platform.

So, the more Steem Power people have, the more their upvotes will count. Steem Power also allows users to earn additional Steem Power and Steem Dollars from the platform. Put simply, "Steem is a blockchain database that supports community building and social interaction with cryptocurrency rewards," according to the company. Last year, Steem issued a $1.3 million payout to Steemit users. Half was distributed in Steem Dollars, each worth about $1, and a half in Steem Power.

"Because it's based entirely on a blockchain, Steemit shows what social media can look like without censorship," said Steemit CEO Ned Scott at the time. "Everything we see on Steemit.com comes from the open source Steem blockchain, so the entire network is replicable on any front-end application." Another example of a decentralized social network based on the blockchain protocol is AKASHA, which uses the Ethereum blockchain to store user-created content.

AKASHA lets users publish, share and vote for entries, much like Medium and other modern publishing platforms. The difference, though, is that user content is published over Ethereum's decentralized network rather than on the company's servers. The votes are bundled with Ethereum microtransactions, so users can earn some Ethereum if their content is good and other users vote for it. It is "in a way, mining with your mind ." In the second and third quarters of this year, the company expects to open source the code powering AKASHA and run a community breakathon to find and fix the bugs that might have slipped by during development. The AKASHA team is aiming to launch the Ethereum main network in the fourth quarter of this year.

Blockchain startup Synereo is also creating a decentralized, next-generation social networking and content delivery platform. Recently, Synereo released Qrator, a tool that lets users monetize original content, get rewarded for sharing quality content with others and also discover the best content on the internet. Qrator is the first step toward Synereo's vision of a freer and fairer internet. The app will give users a look into the "Attention Economy" that puts creators and curators on top of the internet's "monetary food chain."

With Qrator, the company is looking to develop a cross-platform social graph, laying the groundwork for a fully-decentralized social content app based on blockchain and distributed storage technologies that will be built on the Qrator foundation later this year. Even as the world of social media is constantly evolving, blockchain technology is changing the world around us. Not just when it comes to financial transactions, but also by introducing decentralization that encourages free speech while doing away with the restrictions imposed by the social media giants.

Chuck Reynolds
Contributor
Please click either Link to Learn more about Bitcoin.

 

 

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