EP 22: Traditional Stocks vs Cryptocurrencies

On this weeks episode of Our Two Satoshis, we discuss making money via traditional stocks vs masternodes and how that applies to cryptocurrency. Eminem's new album, Aircoins Augmented Crypto Reality, and more!

Stocks vs Masternodes: https://cryptofizz.com/stocks-vs-masternodes-which-investment-is-better/
Rise of Servicenodes: https://cointelegraph.com/news/moment-of-truth-for-eos-whats-next-for-4-bln-eosio-following-launch-of-v10
Aircoins: https://aircoins.co/

Podcast Locations

CryptoFizz: https://cryptofizz.com/category/podcasts/
Spotify: https://open.spotify.com/show/6ualRmhV4M4b5Eh5RdpzAG
Podbean: http://cryptofizz.podbean.com/
Itunes: https://itunes.apple.com/us/podcast/our-two-satoshis/id1348383350
Google Play: https://play.google.com/music/listen?u=0#/ps/I3afdrr2y7d767aeyowfk2gveey
Overcast: https://overcast.fm/itunes1348383350/our-two-satoshis
Anchor FM: https://anchor.fm/s/27b32f0
TuneIn: https://tunein.com/radio/Our-Two-Satoshis-p1099808/
Alexa: “Alexa, play our two satoshis podcast on TuneIn”

Social Media

Facebook: https://www.facebook.com/cryptofizz
Twitter: https://twitter.com/CryptoFizz
Instagram: https://www.instagram.com/cryptofizz/
Google Plus: https://plus.google.com/u/0/106880695574256878731
YouTube: https://www.youtube.com/channel/UCKH5eIUiV5y-Dovw_-gqkzw

Communities

Join our Discord: https://discord.gg/uFtK9xm

Not financial advisors, do your own research.


Cryptocurrency Regulation header image

Everything You Need to Know About Cryptocurrency Regulation (Right Now)

The meteoric rise of cryptocurrencies has taken the world by storm. Innovators, investors, users, and governments are scrambling to wrap their heads around cryptocurrencies and the blockchain technology that they rely upon. The emergence of a new market and business model has created great opportunities for participants, but it also carries significant risk.

Cryptocurrencies present an inherently unique challenge to governments because of their new technology, cross-jurisdictional nature, and frequent lack of transparency. Governments are struggling to develop new ways to regulate cryptocurrencies, adapt existing regulations, and identify fraudulent schemes. Cryptocurrencies and their regulations are evolving before our eyes, and this article will provide a brief background on cryptocurrencies and an overview of where cryptocurrency regulations currently stand.

What are cryptocurrencies?

Cryptocurrency is, by any other name, a currency—a medium of exchange used to purchase goods and services. Or, as some have suggested, cryptocurrency is a “peer-to-peer version of electronic cash.” However, this currency has two qualities that distinguish it from traditional bills and coins.

First, cryptocurrency is a virtual currency that is created through cryptography (i.e. coding) and developed by mathematical formulas through a process called hashing. Second, unlike traditional bills and coins that are printed and minted by governments around the world, cryptocurrency is not tied to any one government, and thus is not secured by any government entity. The fact that cryptocurrencies are not secured by a government authority has led to concerns from critics that this is the second coming of Tulipmania, because we are ascribing value to an otherwise valueless item. However, the potential for cryptocurrencies as a medium of exchange remains enormous.

What is blockchain?

Blockchain is the technology at the heart of most cryptocurrencies, and explaining the technology in detail would require a blog post of its own. What is important to know is that blockchain is a record of peer-to-peer transactions categorized into blocks on a distributed ledger. Despite the obtuse terminology, blockchain functions similarly to a local bank authorizing and recording a transaction, but instead of only one party holding the entire ledger book, the transactions are recorded communally by member nodes, with each node being a computer in a peer-to-peer distributed network.

The blockchain can confirm a transaction within minutes, removing errors that exist when trying to reconcile and audit separate ledgers and transactions. Whenever a transaction takes place, the miners on the blockchain develop a new hash and digital signature to update the ledger and create a new “block.” This block, or recorded transaction, is time-stamped and encrypted and will remain on the blockchain for life.

Regulation in the US – Utility Tokens v. Investment Tokens

In the United States, there has been no federal regulation of cryptocurrencies. Instead, cryptocurrencies are often grouped into two non-binding categories: (1) investment tokens that fall under the purview of already existing U.S. securities laws like the Securities Act of 1933 and the Securities Exchange Act of 1934, and (2) utility tokens, which remain largely unregulated (for now).

Security Tokens

Whether the tokens being offered in connection with a particular cryptocurrency are security tokens is decided on a case-by-case basis that even experienced securities lawyers can disagree upon. Tokens are usually analyzed under the four-part Howey Test below to see if the token is in fact a security. Securities must meet the following criteria:

  1. An ​investment of money
  2. in a ​common enterprise
  3. with an ​expectation of profits
  4. predominantly from the efforts of others

Each characteristic of the token is analyzed against this framework to see if the cryptocurrency is in reality functioning as a new-age security. If it is, then regulators treat it as such, and cryptocurrencies must then be registered and handled with all of the same disclosures and precautions as any other security sold in the United States or to U.S. investors.

Utility Tokens

Cryptocurrencies can also be categorized as non-security utility tokens. These tokens purport to offer intrinsic utility and value, and are typically instrumental in powering the blockchain technology. These tokens function more like commodities than securities, and while they may act like currency in a fully functional network, they also have other values.

However, having a utility token with a properly formed and functioning network does not preclude said token from being labeled a security by the SEC. In In the Matter of Munchee, Inc., a purported utility token with a non-functioning network was labeled a security by the SEC. While labeling a token without a functioning network as a security – as it has no present utility – is not unexpected, the SEC also concluded that: “even if [Munchee] tokens had a practical use at the time of the offering, it would not preclude the token from being a security.”

After analyzing the Munchee Tokens under the Howey test, the SEC concluded that they were investment contracts because purchasers of the tokens had an expectation of profits predominantly from the efforts of Munchee and its staff. The SEC further concluded that Munchee had primed such expectations through its marketing efforts.

While this new case does not eliminate the distinction between utility and security tokens, it does caution that, when deciding whether a given token is a security, the SEC will look beyond utility at the character of the instrument, and base their conclusion based on the terms of the offer, the plan of distribution, and the economic inducements held out by the token issuer.

State Regulation

So far only the state of New York has issued any kind of regulation specifically regarding cryptocurrencies: the BitLicense. The BitLicense is New York’s attempt to control cryptocurrencies within its borders by requiring cryptocurrency businesses to register and comply with several different disclosure and financial obligations. The regulation has been divisive, and many businesses have rallied against its high costs. While a few companies have applied for and received the license, most other companies have simply left the state or stopped offering services to its residents.

Regulation Abroad – The Ever-Shifting Jurisdictional Question

The United States is not the only country grappling with how best to regulate cryptocurrencies. Many cryptocurrency businesses face daunting questions regarding in which jurisdictions to form and to do business in. In the end, the question is quite difficult and fact-specific, requiring communication between legal counsel in different jurisdictions and taking into account nebulous and piecemeal country-by-country regulations. It is impossible to do a detailed analysis without knowing how a country’s existing securities laws, financial regulations, and banking regulations will operate (or will be adapted to operate) with cryptocurrencies. The fact that cryptocurrency-specific regulations are still developing does little to add clarity, and makes the analysis even more challenging. Yet a few global trends are noticeable:

Suspending Cryptocurrencies

Some notable countries, like China, and South Korea, have suspended cryptocurrencies. These countries have cited the risk of fraud and the lack of adequate oversight in suspending cryptocurrencies and their exchanges, forcing cryptocurrency companies and exchanges to relocate.

Regulating Cryptocurrencies

Other countries, like Japan and Australia, have adopted disclosure and regulatory measures, or have companies register with the applicable government authority. Several countries have also tried to implement disclosure or registration regulatory regimes when it comes to cryptocurrencies, but such regimes are cumbersome and expensive to fledging companies.

Cryptocurrencies as Commodities

On the other hand, Switzerland and Singapore, two of the countries at the forefront of the cryptocurrency market, have simply stated that cryptocurrencies are assets not currency, and that they will treat them as such under existing regulations.

Conclusion

Ultimately, cryptocurrency regulation remains in its infancy. Piecemeal regulation has already begun around the world as governments enact new regulations to control and legitimize cryptocurrencies, fold cryptocurrencies into existing regulations, or ban them outright. These splintered attempts at controlling a global phenomenon will keep the cryptocurrency market volatile, and pose a challenge to innovators, investors, and users. They will continue to work in the cryptocurrency space while pushing for legislation and regulation that will remove ambiguity and legitimize cryptocurrencies. At the same time, they must grapple with the possibility that new regulations may be confusing, detrimental, or have negative inadvertent effects.

 

This article was written by Gary Ross and originally published on UpCounsel.


EP 21: McAfee becomes CEO, Ross Ulbricht and Silk Road

On this weeks episode of Our Two Satoshis, we discuss John McAfee becoming the CEO of Luxcore, the new First Person Shooter where you can earn cryptocurrency, who Ross Ulbricht is and the story behind Silk Road and more.

Lux Coin: https://cryptofizz.com/what-is-lux-coin/
Ross Ulbricht and Silk Road: https://cryptofizz.com/who-is-ross-ulbricht-a-journey-into-the-dark-net-and-cryptocurrency/
War Field - Crypto FPS Game: https://cryptofizz.com/war-field-gldr-a-first-person-shooter-that-pays-to-play/
Learning Solidity a few resources: https://cryptofizz.com/learning-solidity-a-few-resources-to-get-you-started/

Podcast Locations

CryptoFizz: https://cryptofizz.com/category/podcasts/
Spotify: https://open.spotify.com/show/6ualRmhV4M4b5Eh5RdpzAG
Podbean: http://cryptofizz.podbean.com/
Itunes: https://itunes.apple.com/us/podcast/our-two-satoshis/id1348383350
Google Play: https://play.google.com/music/listen?u=0#/ps/I3afdrr2y7d767aeyowfk2gveey
Overcast: https://overcast.fm/itunes1348383350/our-two-satoshis
Anchor FM: https://anchor.fm/s/27b32f0
TuneIn: https://tunein.com/radio/Our-Two-Satoshis-p1099808/
Alexa: “Alexa, play our two satoshis podcast on TuneIn”

Social Media

Facebook: https://www.facebook.com/cryptofizz
Twitter: https://twitter.com/CryptoFizz
Instagram: https://www.instagram.com/cryptofizz/
Google Plus: https://plus.google.com/u/0/106880695574256878731
YouTube: https://www.youtube.com/channel/UCKH5eIUiV5y-Dovw_-gqkzw

Communities

Join our Discord: https://discord.gg/uFtK9xm

Not financial advisors, do your own research.


EP 20: Back from Vacation to a Sea of Red

On this weeks episode of Our Two Satoshis, Jay returns from vacation to a sea of red. We discuss DeepBrain Chain, Jay-Z's investment in Robinhood, our ideas on making money in down markets and principles we live by and more.

DeepBrain Chain: https://cryptofizz.com/deepbrain-chain-what-to-watch/
4 Altcoins on the Rise: https://cryptofizz.com/the-best-bitcoin-alternatives-4-altcoins-on-the-rise/
High Times IPO: https://cryptofizz.com/high-times-to-accept-crypto-in-upcoming-ipo/
Stock Market Principles for Investing: https://cryptofizz.com/crypto-investing-stock-market/

Podcast Locations

CryptoFizz: https://cryptofizz.com/category/podcasts/
Spotify: https://open.spotify.com/show/6ualRmhV4M4b5Eh5RdpzAG
Podbean: http://cryptofizz.podbean.com/
Itunes: https://itunes.apple.com/us/podcast/our-two-satoshis/id1348383350
Google Play: https://play.google.com/music/listen?u=0#/ps/I3afdrr2y7d767aeyowfk2gveey
Overcast: https://overcast.fm/itunes1348383350/our-two-satoshis
Anchor FM: https://anchor.fm/s/27b32f0
TuneIn: https://tunein.com/radio/Our-Two-Satoshis-p1099808/
Alexa: “Alexa, play our two satoshis podcast on TuneIn”

Social Media

Facebook: https://www.facebook.com/cryptofizz
Twitter: https://twitter.com/CryptoFizz
Instagram: https://www.instagram.com/cryptofizz/
Google Plus: https://plus.google.com/u/0/106880695574256878731
YouTube: https://www.youtube.com/channel/UCKH5eIUiV5y-Dovw_-gqkzw

Communities

Join our Discord: https://discord.gg/uFtK9xm

Not financial advisors, do your own research.


altcoins climbing

The Best Bitcoin Alternatives – 4 Altcoins on the Rise

A lot has changed in the crypto market since Satoshi Nakamoto first released his revolutionary Bitcoin white paper nine years ago. Today, Bitcoin is not alone in the crypto space. There are currently over four thousand altcoins available to investors. This growing variety can make it difficult to distinguish what is the best Bitcoin alternative.

Altcoins – The Best Bitcoin Alternative to Fill The Void

Bitcoin serves many purposes, and before you can determine the best Bitcoin alternative, you will need to decide what features you desire most in your cryptocurrency. Bitcoin was originally designed as a form of electronic cash. Unfortunately, blockchain congestion has increased Bitcoin transaction times and fees.

The added costs have limited Bitcoin’s ability to function as electronic cash in its current state. These scalability issues have forced Bitcoin into a store of value scenario for the time being. Lightning Network developers are hoping to alleviate Bitcoin’s blockchain congestion through the use of an off-chain protocol, but the project is still in its Beta testing stage.

As the development of the Lightning Network continues, many are looking to Bitcoin alternatives to fill the void. Let’s take a moment to examine some of the other major players in the crypto market, and see what unique features they provide users.  

Ethereum

A growing number of analysts predict Ethereum will surpass Bitcoin one day regarding market capitalization. Roger Ver aka Bitcoin Jesus is among this growing number of crypto professionals predicting the change. Ethereum entered the market in 2015 as the first cryptocurrency to offer smart contracts.

Smart contracts are self-initiated protocols that live on the blockchain. Smart contracts are standard among cryptocurrencies today, but this wasn’t always the case. Ethereum was the first second-generation cryptocurrency due to their introduction of smart contract capabilities.

Ethereum can largely be credited for the current boom in Initial Coin Offerings (ICO) as well. The altcoin’s ERC-20 token protocol is, by far, the most widely used token creation platform in the crypto space. Ironically, ERC-20 designers intended the protocol for intercompany use, but after recognizing the strong public demand for such a protocol, Ethereum executives decided to make it public.

All of these factors led to Ethereum’s rise in the cryptomarket and its current position as one of the best bitcoin alternatives.

Bitcoin Cash

Bitcoin Cash (BCH) entered the market on August 1, 2017. Bitcoin Cash was the first Bitcoin hard fork to occur. The cryptocurrency is similar to Bitcoin in many aspects, with the main difference being that BCH had an 8MB block size compared to Bitcoin’s 1MB blocks. The coins block size was increased again in May of this year to 32MB.

Bitcoin Cash is one of the most widely accepted cryptocurrencies by vendors. The altcoin has managed to stay in the top 5 cryptocurrencies regarding market capitalization since it first entered the market. Some of the most influential crypto professionals advocate for this altcoin, with many believing BCH is truly fulfilling Satoshi Nakamoto’s vision of “an electronic peer-to-peer cash system.”

Not everyone in the crypto community agrees with this perspective. BCH and Bitcoin supporters have often battled on message boards and social media platforms. Despite the controversial beginnings of this cryptocurrency, Bitcoin Cash managed to stay on top of the crypto market. Today, many crypto investors see BCH as one of the best Bitcoin alternatives available.

EOS

EOS entered the market after hosting a year-long ICO that successfully raised over four billion USD. Unlike Bitcoin, EOS tokens do not perform a function. Instead, the EOS platform functions as an operating system that enables the development, execution, and hosting of commercial-scale decentralized apps (dApps).

Blockone is the development team behind EOS. The project’s founder, Dan Larimer, is also the co-founder of Steemit and Bitshares. Developers hold their EOS tokens to be eligible to utilize the resources of the EOS platform including increased scalability, usability, and flexibility when compared to previously designed cryptos such as Ethereum.

EOS uses a Proof-of-Stake mining system which is more environmentally friendly than the Proof-of-Work protocol used by Bitcoin. Proof-of-stake coins do not require intensive computing power. Many believe Proof-of-Stake coins to be the future of the crypto market. Instead of actively mining for the coins, coin holders get rewarded for staking (keeping) their crypto in their wallet. It’s these cutting-edge advancements that have made EOS one of the best Bitcoin alternatives on the market.

Stellar Lumens

Stellar Lumens (XLM) entered the market on July 31, 2014. Stellar is an open-sourced decentralized cryptocurrency that focuses on creating an open global financial network. Stellar is particularly well-suited to accommodate the billion dollar remittance industry. Also, Stellar incorporates the use of credit anchors to seamlessly facilitate fund exchanges without having to wait for third party approval. A similar system is used by PayPal to speed up their fund transfers.

World Remittance Stats Via Statista

The Stellar development team, headed by Jed McCaleb and Joyce Kim, continues to make inroads in the crypto market. Both of these individuals are well-known in the crypto community, and they have used their experience to create a unique Bitcoin alternative. Before Stellar’s official release, the team created a website called “Secret Bitcoin Project” to find interested parties willing to test Stellar’s capabilities.

Stellar continues to see growing adoption. Already, some nonprofit organizations such as the Praekelt Foundation have signed on to the project. Currently, Stellar has strategic partnerships with firms from the Philippines, India, and West Africa. Last year, Stellar expanded their strategic partnerships to include IBM and KlickEX. All of these factors have made Stellar Lumens an attractive Bitcoin alternative to consider.

The Best Bitcoin Alternatives Are Here

The crypto market continues to produce new and ever more innovative concepts. These altcoins are pushing the boundaries of the crypto community and ushering in a new era of decentralization. Soon, you may see a day where one of these Bitcoin alternatives pushes Bitcoin out of the top spot. For now, you should keep your eyes on these projects as they are sure to see continued development in the coming months.

 

This article was originally published on coincentral.com


High Times to Accept Crypto in Upcoming IPO

Update: According to this CoinTelegraph article, this announcement was made in error. Cryptocurrency will NOT be used to pay for shares in High Times. Total buzz kill..

 

High Times is high on crypto.

The magazine famous for promoting counterculture and the legalization of marijuana is set to become the first company to accept Bitcoin and Ethereum in it’s upcoming IPO. CEO of High Times, Adam Levine, says the initiative will broaden the pool of potential investors.

“High Times has been at the forefront of popular culture for more than four decades…Now we’re taking another step into the future, not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow Bitcoin and Ethereum as part of our public capital raise.”

The capital raise will be conducted through a Regulation A+ crowdfunding event. A Reg A+ offering, also called a “mini-IPO,” allows private companies to democratize the fundraising process by enabling customers to own a piece of the company. Before Reg A+ offerings, private companies could only crowdfund from accredited investors.

High Times prides themselves on being progressive. Therefore, accepting cryptocurrencies seems to be consistent with that ethos. However, they didn’t seem to keen on conducting an ICO.

“Beginning with our Reg. A+ crowdfunding, we’ve been focused on giving everyone from retail investors to long-time fans more ways to own a piece of High Times. While we didn’t believe that the ICO process was the right move for our brand, it would’ve been foolish to leave this emerging investor base out.”

Apparently, the potcoin model did not appeal to High Times.

According to the article, investors can now purchase shares in the company for as little as $11.

Courtesy of Bitcoin Exchange Guide

Is High Times starting a trend?

As the first company to accept cryptocurrencies in a traditional fundraising format, High Times has a unique opportunity to be a trendsetter. As consumer cryptocurrency adoption increases, it’s possible we will see other companies follow suit. Accessing larger pools of liquidity increases the likelihood of raising a successful round.

So why wouldn’t a company want increased access to funding?

The answer is two-fold. First, cryptocurrencies are volatile. Therefore, fundraising with cryptocurrency introduces volatility to a company’s monetary base. $1mln worth of bitcoin can turn into $750,000 overnight. Thus, financial planning becomes much more speculative and opaque. Second, the stigma around cryptocurrencies might instill fear

If nothing else, this initiative could catalyze a discussion about cryptocurrency’s place in traditional fundraising practices. However, if the initial promises of ICO’s are ultimately fulfilled, then the discussion will be moot – everything will become tokenized, irrespective of the asset class.

 

This article was originally published on coincentral.com.


evident proof cover image

Evident Proof Passes Smart Contract Audit with a 100% Score

This is a PRESS RELEASE. The views herein are not of cryptofizz.com

 

London, UK- 31July 2018 — Evident Proof, the platform that leverages the Ethereum blockchain to provide immutable evidence of the provenance of data records, has passed its smart contract audit by renowned audit experts Hosho – scoring a 100% rating for its testable code.

It’s a huge endorsement from the global leader in blockchain technology security — which has awarded a score that far exceeds the industry standard.

Smart contract audits are crucial because live code deployed on the blockchain can be difficult to rectify. However, many blockchain projects fail to complete a audit.

Matt Roden, Evident Proof CTO, said: “We’re delighted to receive this endorsement from Hosho of our impeccable software development standards. We believed before this audit that our protocol was close to flawless. But we know our customers need transparency to put their trust in us for such an important service.

“Hosho has a reputation for being the world’s most diligent smart contract auditors so this is an important milestone for us.”

Evident Proof describes itself as an ‘Immutable Proof As A Service’ or ‘IPAAS’. It receives the data of a business, organisation or individual, encrypts it, then creates a unique signature – a seal – for each. These are stored in an immutable ledger, called a proof chain, which lives on both a private and a public blockchain.

The platform aims to deliver businesses, organisations and individuals immutable proof certificates that verify the accuracy, completeness and time order of digital records it holds for them.

Evident Proof’s management team has vast experience in running and building large-scale multinational IT platforms. CEO Adrian Clarke is a former CTO at Microsoft. And the Evident Proof team worked with Microsoft to develop its proof of concept.

Hosho said: “The team of experts at Hosho, having backgrounds in all aspects of blockchain, cryptography, and cybersecurity, can say with confidence that the Evident-Proof contract is free of any critical issues.”

Evident Proof is now putting in place a bug bounty program  to encourage further analysis of the smart contract by other third parties.

The validation comes as Evident Proof helps a growing number of businesses, organisations and even individuals to justify and verify many of their data activities.


EP 19: What is Bitcoin, FunFair Interview Recap, and Masternodes

On this weeks episode of Our Two Satoshis, we recap our interview with FunFair (FUN) Ceo Jez San from last week. Discuss a few articles we have recently posted about Bitcoin and Masternodes, and talk about our insights on current market sentiment. It also has some tips of projects we are currently looking at.

FunFair Interview: https://cryptofizz.com/special-interview-with-funfair-fun-ceo-jez-san/
FunFair Article: https://cryptofizz.com/funfair-what-the-book-says/
Masternode Deployment: https://cryptofizz.com/masternode-deployment-platforms-a-short-guide/
What is Bitcoin: https://cryptofizz.com/what-is-bitcoin-part-2/
The Two Week Portfolio: https://cryptofizz.com/the-two-week-portfolio-how-to-invest-like-a-crypto-millionaire/

Podcast Locations

CryptoFizz: https://cryptofizz.com/category/podcasts/
Spotify: https://open.spotify.com/show/6ualRmhV4M4b5Eh5RdpzAG
Podbean: http://cryptofizz.podbean.com/
Itunes: https://itunes.apple.com/us/podcast/our-two-satoshis/id1348383350
Google Play: https://play.google.com/music/listen?u=0#/ps/I3afdrr2y7d767aeyowfk2gveey
Overcast: https://overcast.fm/itunes1348383350/our-two-satoshis
Anchor FM: https://anchor.fm/s/27b32f0
TuneIn: https://tunein.com/radio/Our-Two-Satoshis-p1099808/
Alexa: “Alexa, play our two satoshis podcast on TuneIn”

Social Media

Facebook: https://www.facebook.com/cryptofizz
Twitter: https://twitter.com/CryptoFizz
Instagram: https://www.instagram.com/cryptofizz/
Google Plus: https://plus.google.com/u/0/106880695574256878731
YouTube: https://www.youtube.com/channel/UCKH5eIUiV5y-Dovw_-gqkzw

Communities

Join our Discord: https://discord.gg/uFtK9xm

Not financial advisors, do your own research.


Woman holding cryptocurrency

The Women Investing in Cryptocurrency

Research from eToro, a cryptocurrency exchange, indicates that the cryptocurrency market has been male-dominated, with women making up only 8.5% of all investors while men account for 91.5%. Others have estimated the number of women investors and users of cryptocurrency to range between a mere 1% to 5%. This gap mirrors the general lack of women in tech and finance.

According to senior business analyst Agnes de Roeyer of the London Block Exchange, that trend could now be changing:

“There’s still a common misconception that cryptocurrency is a game for men, but we’ve seen hundreds of women sign up for our exchange in the last few months and some of the most inspiring and knowledgeable investors, leading the way in the industry are female.”

It will be interesting to see how having more women in the crypto space could shape the industry. According to Perianne Boring, founder of the Chamber of Digital Commerce, a D.C.-based trade association for the blockchain industry: “...people don’t understand what Bitcoin is. The perception is skewed, and it won’t be accepted as a legitimate technology unless we find a way to get this imbalance sorted.”

BARRIERS TO WOMEN PARTICIPATION 

Unfortunately, raising money has been a tall hurdle for women founders. According to a Babson College report from 2014, just 6% of partners at VC firms are women, and only 15.8% of startups worldwide have at least one female founder. And when it comes to venture capital, women have been getting only a fraction of what male founders are given. This has resulted in an imbalance of power that has even played out in abusive ways.

Initial Coin Offerings (ICOs) are presenting a way to bypass this imbalance. Through ICOs, the public funds new projects so that entrepreneurs do not need to rely on just investors to raise capital. This method is showing much promise, especially with the successful funding of $3.6 billion in ICOs in just this past year. One of the largest raises this year— the $232 million ICO of Tezos — was co-led by a woman. Although ICOs might not be for everybody, Boring thinks that they “can allow for the democratization of ideas.”

CRYPTO GAINS TRACTION WITH WOMEN 

The good news is that female involvement in cryptocurrency is growing steadily. In 2017, four of the 30 cryptocurrency ventures that led the largest fundraising rounds had female co-founders, double the number of women leading the 30 technology companies with the largest initial public offerings last year, according to Bloomberg. And in just the past 6 months the amount of women who are interested in investing in cryptocurrency has increased more than twofold from 6% to 13%.

“There are Women in Bitcoin groups popping up all over the world, with more established branches in San Francisco and New York boasting 381 and 986 members respectively. Some female cryptocurrency investors also see blockchain technology as a solution to common financial problems that women face, such as raising money to start a tech business."

A report from UK cryptocurrency exchange London Block Exchange that conducted market research shows that the cryptocurrency industry is most popular with millennial women. It could also be possible that women would invest differently from men, as the research suggests that women take a more strategic approach; they are being shown to be 50% less likely than men to suffer from a “fear of missing out” (FOMO), suggesting they would make fewer decisions based on impulse or an emotional urge to act in the moment.

Lastly, the report indicates that women are more collaborative than men, which is potentially tied to having a twofold greater likelihood of consulting with friends and family about any potential investments compared to men, who are statistically more likely to act independently. In reality, there is a wide range of characteristics and tendencies among women alone, and among men themselves; the likely scenario is that there will be varying investment behaviors among either group, but widening the pool of citizens involved in shaping the evolution of digital currency would help shape a financial system that benefits everyone in society.

WOMEN TO KNOW IN CRYPTOCURRENCY 

While the world of blockchain and cryptocurrency has been deemed a man’s game thus far, Connie Gallippi, the founder of the first Bitcoin nonprofit BitGive, notes that there have actually been many women in it all this time, but the problem is that “they’re just not given the same level of exposure or recognition.” Margaux Avedisian, one of the first influential female bitcoin leaders, mirrors Gallippi’s sentiments on how the industry should be giving more recognition to women’s accomplishments. While the Polycon18 conference hosts a Women in Blockchain panel, this is a segregated group and a limited audience.

When it comes to Cryptocurrency conferences, the lineups are almost exclusively all-male speakers — a trend that has frustrated Gallippi enough to send conference organizers lists of qualified and talented women in the space who they could leverage for their events. Avedisian has also argued that there are plenty of women with years of experience whose insights would benefit a much wider audience — one that is not limited to just women. For example, the founders of the two biggest ICOs — Bancor and Tezos — are females. Surely, they have insights that would benefit men just as much as women. Especially since, according to Gallippi, women are filling some of the top posts in cryptocurrency.

Below are some of the names that everyone should know in the cryptocurrency game

MARGAUX AVEDISIAN

Executive vice president at Transform Group LLC and partner and co-founder at CooLPool Fund, Avedisian was among the first female bitcoin leaders to gain influence in 2012. Since then, she has co-founded multiple cryptocurrency exchanges.

ELIZABETH ROSSIELLO

Rossiello, who is running one of the most widely known companies in the cryptocurrency space, has been viewed as a model of the potential that the cryptocurrency revolution holds worldwide. She founded a foreign exchange, and payment platform in Africa called BitPesa in 2013. The company uses bitcoin and blockchain technology to make faster payments between African currencies and the rest of the world with greater ease. It's an evolution on what mobile money is today. Rossiello had a lot of momentum in raising capital after a successful series-A round of funding, which also saw a healthy amount of participation from billionaire investor Tim Draper. Today, BitPesa is in seven African countries, Europe, and the U.K.

KATHLEEN BREITMAN

The co-founder and CEO of Tezos, Breitman raised a record-setting two hundred and thirty-two million dollars for her cryptocurrency project during a public crowdsale last July. The idea for Tezos was sparked by her frustration with the “glacial pace” that it took for Bitcoin to evolve. Tezos presents a solution to this by giving voting power to everyone who owns “tezzies”— the system’s coins— so they could democratically choose upgrades to the network. Breitman and her husband had been iterating on this idea for years before she finally made the plunge to leave her day job as the senior strategy associate and go all in on this venture. Since then, she has developed most of the company protocol and provided the brawns to overcoming challenges such as lawsuits and a feud with the president of the foundation.

TAVONIA EVANS

She has created $GUAP, a new cryptocurrency that is specifically designed for black consumers. It rewards spending behaviors that keep the money circulating in an ecosystem of black-owned businesses. Additionally, all $GUAP transactions will be available for analysis on a public blockchain. This will allow Evans to build insights on the ways in which black consumers spend their money and the spending power that black consumers have at-large. Now, her greatest challenge is getting consumers to adopt the new currency.

CONNIE GALLIPPI

The founder of BitGive, the first nonprofit in bitcoin, Gallippi got the idea for her venture at a bitcoin conference in 2013. Her “aha” moment was noticing that the cryptocurrency world needed a philanthropic organization. Today, BitGive is the number one place to go if you have Bitcoin and you want to donate some of your digital cash to charity.

Most recently, Gallippi is aiming for even greater impact with a new platform called GiveTrack. The platform, which will live on the BitGive website, holds charities more accountable for the donations they receive through Bitcoin technology. It will use bitcoin’s public records of all transactions to reveal how money that has been donated is truly spent.

AMBER BALDET

Excited by the potential for social good with blockchain, Baldet left her eight-year career at J.P. Morgan to work on a startup developing software for businesses exploring blockchain. She has not yet made a formal announcement about the new company and has kept quiet about any other details.

During her time at J.P. Morgan, Baldet helped the firm to recognize the importance of Bitcoin and the movement in cryptocurrency, and she helped lead the Blockchain Center of Excellence for over two years. In that time, she was exposed to “a breadth of perspectives,” including startups, investment banks, central banks, and hardcore blockchain developers, which will now prove to be invaluable in her new venture.

TESS RINEARSON

When Rinearson learned about the game-changing potential of bitcoin, she decided that she wanted to help shape this future. She then made it her goal to get a job at Chain, a company that partners with other organizations like Visa and Nasdaq to build blockchain networks for their financial services. Currently, an engineering manager at Chain, Rinearson works on developing Sequence, a product that takes the blockchain technology and securely puts it in the cloud. With women accounting for only 26 percent of Chain’s employees, the male domination of the industry stays top of mind for Rinearson. She is committed to encouraging more women involvement. Her projects include working with high school girls through Girls Who Code to educate them about bitcoin and teaching a program at the MIT Media Lab about blockchain technology. Her blog on medium also translates the complexity of blockchain and cryptocurrency into layman terms to make the industry more accessible.

Other women to watch out for in the crypto industry include Galia Benartzi, Meltem Demirors, and Elizabeth Stark.

FINAL THOUGHTS

If cryptocurrency and blockchain are the future of our financial system, then it is even more crucial that the people developing this system are an accurate representation of the global society for which they are creating — that means involving both men and women.

According to Elizabeth Stark, the CEO of Lightning Labs, which has recently launched a cutting-edge software designed to make Bitcoin transactions faster, cheaper, and more private: “There’s a massive opportunity here to change the global financial structure, to change a lot of ways that society interacts with technology... And it is crucially important that women participate.”

In Stark’s view, today’s blockchain technologies are similar to the early times of the Internet:

“Women need to be building this new frontier... There’s way too much of the prior generation of the Internet that was not built by a diverse group of people... I want to see broader participation... broader perspectives contributing to better problem-solving.”

 

This article was originally published on mintdice.com


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Capitalise CEO and Co-Founder Shahar Rubin on Simplifying Trading Algorithms

If there is a single shared experience beginners and new traders have when entering the cryptocurrency world, it’s usually the overwhelming complexity of getting anything done. From buying their first bitcoin or conducting their first altcoin trade, newcomers are likely going to encounter several hazy areas.

While the total market size of complex blockchain-based projects continues to grow, a peripheral market for simplifying the complicated continues to follow along.

One of the promising tools that aims to simplify and empower the masses to trade is Capitalise.ai. Capitalise is offering a language-based user interface to automated trading scenarios, and integrates with a variety of third-party exchanges such as Binance and Bitmex and executes the trades for you.

For example, you’d be able to type something like “Buy $10,000 worth of Bitcoin if it reaches $15,000, but sell it if the price drops below $12,000.” and your trade would be executed if the certain criteria are met.

No coding is required and simple everyday words is all you need to start executing these trades.

We got a chance to interview Shahar Rabin, the CEO & Co-Founder of Capitalise.ai. Rabin is an engineer who has over 15 years of experience trading in traditional markets and has developed automated trading systems for the derivated markets.

Enjoy!

*Editor’s note: No matter how well you can articulate your trades, trading (especially in the cryptocurrency world) is still a very risky endeavor. Do your own research, consult with professional financial advisors, and only invest what you can afford to lose.

Can you tell us a bit about the history of Capitalise? You co-founded it in 2014, was it initially for traditional market trading, or did you always have a vision for cryptocurrencies?

Capitalise was founded in 2015 with a vision of solving everyday problems for traders in the traditional markets. Back then cryptocurrencies we’re still a niche market without much activity in it and thus, we didn’t have cryptocurrencies in mind.

 

How much work was it to get the trading platform off the ground? How did you get the idea for it?

The idea of creating a platform that allows you to easily automate your trading activities came as a personal necessity. My co-founder Amir and I were working on our own algo-trading shop. Development cycles take weeks and even months to be completed and we were looking for a way to reduce these time spans. From our own necessity, we’ve created what is today Capitalise. It took 3 years to get this robust trading platform off the ground. The interface is built for simplicity and the engine driving this is massive and complex.

Who is Capitalise for? Your slogan is “leverage your trading skills,” does this mean that Capitalise is not for beginners but experienced traders?

At first, we were developing this for traders like us, traders who had specific scenarios in mind and that wanted to apply them on their portfolios. However, as time went by, we discovered that pretty much anyone that wanted to engage with the markets can use our technology.

 

So, a novice investor who just wants to buy a $1,000 of Bitcoin can do just that, and a professional trader can write complex trading scenarios. Anyone can use this technology depending on the unique requests they will write for themselves.

How many users do you have?

We’ve just recently launched this platform, open and free for everyone to use. Although we haven’t started marketing efforts just yet, we do have several hundred of users using this today.

We are very excited to see how adoption grows when more people have the opportunity of discovering this.

What made you decide to move over to cryptocurrency markets? What cryptocurrencies will you support?

Last year we’ve seen massive growth in trading cryptocurrencies. The kind of problems we solve for traders are even bigger in the crypto trading markets.

This market never sleeps, it’s traded 24×7 and extremely volatile. All this means that a trader has to be able to react quickly to any event all the time. And that’s what made us decide to provide this technology to crypto traders.

Will customers be able to trade anything from traditional markets as well as crypto?

Sure thing. You will be able to link accounts from traditional global brokers such as “Interactive Brokers” to trade stocks, FX, etc. and link your crypto accounts from exchanges such as “Binance” to trade Bitcoin, eth, etc.

 

You have yet to publish a white paper. What’s the story behind that? Do you see your business model as needing your own token, your own cryptocurrency? If so, tell us briefly how that works.

Our whitepaper will soon be available on our website. In the near future, we will introduce a token. That token will be used to drive usage across all of Capitalise products, existing and future ones. More on that, at our soon to be released white paper.

How do you use artificial intelligence in your trading engine?

It’s the optimization engine that utilizes artificial intelligence, which is currently under development and will help users to optimize their trading strategies. Using big data analysis and AI algorithms, the system would be able to let the user know of better performing strategy, based on the strategy they entered.

Do you use machine learning as well? What is the difference?

Most of the machine learning development is concentrated in our language technology. The machine learning algorithms enable the language supported by the system to extend and in addition offer the user more relevant suggestions in order to help him creating a trading strategy.

How do you plan to combine blockchain technology with AI?

We have few use cases that will be developed based on the blockchain technology. One of them is the marketplace social arena.

How far along your roadmap are you? When will you be launching your crypto platform?

Actually, we already launched! Our platform is live for anyone to trade with and it’s free. For more information check out our website: www.capitalise.ai

How will you ensure that your users’ funds are safe?

It is very simple. Capitalise connects to your existing accounts in the different exchanges we support. Once you give us permission, we can trade on your behalf. We can’t however, withdrew any of your funds. So your funds remain in the exchange and are secured by the exchange. You never need to send funds to Capitalise.

How will you ensure continued uptime?

Part of the reason our technology was complex to develop is our uncompromising attitude, 24/7 accessibility is a key factor. Different servers, located in different parts of the world always act as a backup, if one server drops, another one will take his place immediately to ensure continues system uptime.

What happens if a trade happens by accident? If the trader accidentally types something or the machine misunderstands? Do you have a safety net in place?

The way our platform is designed makes a case of machine misunderstanding impossible. When you write a trading scenario, you can only write an explicit scenario. There is no way to write scenarios that don’t make sense or maybe has double meanings.

 

For those users who might be confused, we have a final confirmation screen that shows all your conditions written in a different way, so you can feel comfortable once you choose to run an automated scenario.

We do take care of some risky situations, for example, a user can set rules for entry, then rules for an exit, and run the whole scenario in a loop. If both the entry and exit conditions apply at the same time, it will result in a machine getting in and out of trades again and again at super speeds, which in turn drain an account just by the fact there are trading fees. For that case, we have a safety procedure that actually stops the automated procedure from running and notifies the user when it happens.

Do you think blockchain technology will lead to markets that are never closed? Are there any potential disadvantages to a 24/7 stock market scenario?

Definitely, this is the case now when it comes to crypto trading. I believe it will set a future standard for all trading assets in the future. The potential disadvantage is that we will all have to stay aware of what happens in the markets and be able to react to them 24/7. Less of an issue with our technology deployed.

What’s the biggest problem you’re solving at Capitalise?

A traders’ biggest enemy is himself. Fear, greed, and boredom are destructive to any trading plan. Our technology helps everyone to trade like a machine, leaving all emotions out of the play.

2018 has been a bear market for cryptocurrency. In your opinion, what are the best ways to make money even in a bear market? Is it possible?

Making money in declining markets is possible, one of the best ways is to use futures contracts to short the market and make money while they decline. You can trade future contracts with Bitmex, but I would only suggest doing so if you understand the risks these trading instruments hold.

2018 has also been quite the year of regulation. How has that impacted your business?

Our standards has always been high, we try to meet the strictest demands no matter where we operate. Having a business in the financial sector means we already had to face the strictest regulation. In that respect, we didn’t face a much struggle.

What is the biggest change we’re going to see over the coming years? What’s your biggest goal in life?

I think the blockchain has the potential of fundamentally changing a lot of business use cases and touch everyone. Due to that potential, I am sure we will see more and more companies, small and large, shift their focus and develop many blockchain based products. For the coming years, it will be the construction of a new world.

My personal goal is to be known for the good things I try to deliver to this industry.

When you’re not working and dreaming up new business ideas, what do you do?

Well, new ideas always pop up, being so involved, I can’t help it. But other than that, I am a father and a husband. With every free moment I have, I try to dedicate as much time to my family, which naturally, the most important thing in my life.

What advice would you give to anyone wanting to become a trader?

I would tell a person wanting to become a trader to go to an ATM, withdraw $1,000, then go to a busy street and throw that money in the air!

If you find it too painful, don’t even start. It’s a long road before you can become a successful trader, you are sure to lose a lot of money and it takes a long time to start become profitable.

Start small, trade with small amounts of funds and never jump too high too soon.

Anything else you would like our readers to know?

We have more exciting products coming soon, backtesting, marketplace, and more. So check out our website (www.capitalise.ai) to learn more. And we’d love it if you join our community!

Thank you!

 

This article was originally published on coincentral.com