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Want to start fresh after the crypto crash? Here is a comprehensive guide on how to invest and prosper over the long term.

Well its happened, the crypto market just experienced the worst crash since 2014, the bubble has burst. The idiocy of newbies FOMO-ing into anything with low nominal value lead to endless twitter timelines like this, and now nobody has any idea where the market settles. What do you do now?
In the following weeks it will be a good time to rethink your investment approach and how you arrive at your decisions. Just buying whatever is shilled on Twitter or Reddit and jumping from one crypto to another isn't going to work like it did these last two months.
The good news is that we're finally back closer and closer to our long term moving average which is much more healthy for entrants, the bad news is that the fear might continue compounding if outstanding issues are not dealt with. Tether is the big concern for me personally for reasons I've stated many times, but some relief in the short term may come if the SEC and CFTC meeting on February 6th goes well. Nobody really knows where the bottom is but I think we're now past the "irrational exhuberance" stage and we're entering a period of more serious inspection where cryptos will actually have to prove themselves as useful. I suspect hype artists like CryptoNick and John McAfee will fall out of favor.
But perhaps most importantly use this as a learning experience, don't try to point fingers now. The type of dumb behavior that people were engaging in that was rewarded in a bull market (chasing pumps, going all in on a shillcoin, following hype..etc) could only ever lead to what we are experiencing now. Just like so many people jumped on the crypto bandwagon during the bull run, they will just as quickly jump on whatever bandwagon is to be used to blame for the deflation of the bubble. Nobody who pumped money into garbage without any use case will accept that they themselves with their own investing behavior were the real reason for the gross overvaluation of most cryptocurrencies, and the inevitable crash.
So if you're looking for a fresh start after the massacre (or just want to get in now), here is a guide:

Part A: Making a Investment Strategy

This is your money, put some effort into investing it with an actual strategy. Some simple yet essential advice that should apply to everyone, regardless of individual strategy:
  1. Slow down and research each crypto that you're buying for at least a week.
  2. Don't buy something just because it has risen.
  3. Don't exit a position just because it has declined.
  4. Invest only as much as you can afford to lose.
  5. Prepare enter and exit strategies in advance.
First take some time to think about your ROI target, set your hold periods for each position and how much you are actually ready to risk losing.
ROI targets
A lot of young investors who are in crypto have unrealistic expectations about returns and risk. A lot of them have never invested in any other type of financial asset, and hence many seem to consider a 5-10% ROI in a month to be unexciting.
But its important to temper your hype and realize why we had this exponential growth in the last year and how unlikely it is that we see 10x returns in the next year. What we saw recently was Greater Fool Theory in action. Those unexciting returns of 5-10% a month are much more of the norm, and much more healthy for an alternative investment class.
You can think about setting a target in terms of the market ROI over a relevant holding period and then add or decrease based on your own risk profile.
Example: Calculating a 2 year ROI target
Lets say you want to hold for 2 years now, how could you set a realistic target to strive for? You could look at a historical 2 year return as a base, preferably during a period similar to what we're facing now. Now that we had a major correction, I think we can look at the two year period starting in 2015 after we had the 2014 crash. To calculate a 2 year CAGR starting in 2015:
Year Total Crypto Market Cap
Jan 1, 2015: $5.5 billion
Jan 1, 2017: $18 billion
Compounded annual growth return (CAGR): [(18/5.5)1/2]-1 = 81%
This annual return rate of 81% comes out to about 4.9% compounded monthly. This may not sound exciting to the lambo moon crowd, but it will keep you grounded in reality. You can aim for a higher return (say 2x of that 81% rate) if you choose to take on more risky propositions. I can't tell you what return target you should set for yourself, but just make sure its not depended on you needing to achieve continual near vertical parabolic price action in small cap shillcoins because that isn't sustainable.
Once you have a target you can construct your risk profile (low risk vs. high risk category coins) in your portfolio based on your target.
Risk Management
Everything you buy in crypto is risky, but it still helps to think of these 3 risk categories:
How much risk should you take on? That depends on your own life situation for one, but also it should be proportional to how much expertise you have in both financial analysis and technology.
The general starting point I would recommend is:
Some more core principles on risk management to consider:
You can think of each crypto having a risk factor that is the summation of the general crypto market risk (Rm), but also its own inherent risk specific to its own goals (Ri).
Rt = Rm +Ri
The market risk is something you cannot avoid, it is essentially the risk that is carried by the entire market over things like regulations. What you can minimize though the Ri, the specific risks with your crypto. That will depend on the team composition, geographic risks (for example Chinese coins like NEO carry regulatory risks specific to China), competition within the space and likelihood of adoption and other factors, which I'll describe in Part 2: Crypto Picking Methodology.
Portfolio Allocation
Along with thinking about your portfolio in terms of risk categories described above, I really find it helpful to think about the segments you are in. OnChainFX has some segment categorization but I generally like to bring it down to:
Think about your "Circle of Competence", your body of knowledge that allows you to evaluate an investment. Your ability to properly judge risk and potential is going to largely correlated to your understanding of the subject matter. If you don't know anything about how supply chains functions, how can you competently judge whether VeChain or WaltonChain will achieve adoption? If you don't understand anything about the tech when you read the Cardano paper, are you really able to determine how likely it is to be adopted?
Consider the historic correlations between your holdings. Generally when Bitcoin pumps, altcoins dump but at what rate depends on the coin. When Bitcoin goes sideways we tend to see pumping in altcoins, while when Bitcoin goes down, everything goes down.
You should diversify but really shouldn't be in much more than around 12 cryptos, because you simply don't have enough competency to accurately access the risk across every segment and for every type of crypto you come across. If you have over 20 different cryptos in your portfolio you should probably think about consolidating to a few sectors you understand well.

Part B: Crypto Picking Methodology (Due Dilligence)

Do you struggle on how to fundamentally analyze cryptocurrencies? Here is a 3-step methodology to follow to perform your due dilligence:

Step 1: Filtering and Research

There is so much out there that you can get overwhelmed. The best way to start is to think back to your own portfolio allocation strategy and what you would like to get more off. For example in my view enterprise-focused blockchain solutions will be important in the next few years, and so I look to create a list of various cryptos that are in that segment.
Upfolio has brief descriptions of the top 100 cryptos and is filterable by categories, for example you can click the "Enterprise" category and you have a neat list of VEN, FCT, WTC...etc.
Once you have a list of potential candidates, its time to read about them:
  • Critically evaluate the website. If it's a cocktail of nonsensical buzzwords, if its unprofessional and poorly made, stay away. Always look for a roadmap, compare to what was actually delivered so far. Always check the team, try to find them on LinkedIn and what they did in the past.
  • Read the whitepaper or business development plan. You should fully understand how this crypto functions and how its trying to create value. If there is no use case or if the use case does not require or benefit from a blockchain, move on.
  • Check the blockchain explorer. How is the token distribution across accounts? Are the big accounts selling? Try to figure out who the whales are (not always easy!) and what the foundation/founder account is based on the initial allocation.
  • Look at the Github repos, does it look empty or is there plenty of activity?
  • Search out the subreddit and look at a few Medium or Steem blogs about the coin. How "shilly" is the community, and how much engagement is there between developer and the community?
  • I would also go through the BitcoinTalk thread and Twitter mentions, judge both the length and quality of the discussion.
You can actually filter out a lot of scams and bad investments by simply keeping your eye out on the following red flags:
  • allocations that give way too much to the founder
  • guaranteed promises of returns (Bitcooonnneeeect!)
  • vague whitepapers filled with buzzwords
  • vague timelines and no clear use case
  • Github with no useful code and sparse activity
  • a team that is difficult to find information on

Step 2: Passing a potential pick through a checklist

Once you feel fairly confident that a pick is worth analyzing further, run them through a standardized checklist of questions. This is one I use, you can add other questions yourself:
Crypto Analysis Checklist
What is the problem or transactional inefficiency the coin is trying to solve?
What is the Dev Team like? What is their track record? How are they funded, organized?
How big is the market they're targeting?
Who is their competition and what does it do better?
What is the roadmap they created and how well have they kept to it?
What current product exists?
How does the token/coin actually derive value for the holder? Is there a staking mechanism or is it transactional?
Is there any new tech, and is it informational or governance based?
Can it be easily copied?
What are the weaknesses or problems with this crypto?
The last question is the most important.
This is where the riskiness of your crypto is evaluated, the Ri I talked about above. Here you should be able to accurate place the crypto into one of the three risk categories. I also like to run through this checklist of blockchain benefits and consider which specific properties of the blockchain are being used by the specific crypto to provide some increased utility over the current transactional method:
Benefits of Cryptocurrency
Decentralization - no need for a third party to agree or validate transactions.
Transparency and trust - As blockchain are shared, everyone can see what transactions occur. Useful for something like an online casino.
Immutability - It is extremely difficult to change a transaction once its been put onto a blockchain
Distributed availability - The system is spread on thousands of nodes on a P2P network, so its difficult to take the system down.
Security - cryptographically secured transactions provide integrity
Simplification and consolidation - a blockchain can serve as a shared ledger in industries where multiple entities previously kept their own data sources
Quicker Settlement - In the financial industry when we're dealing with post-trade settlement, a blockchain can drastically increase the speed of verification
Cost - in some cases avoiding a third party verification would drastically reduce costs.

Step 3: Create a valuation model

You don't need to get into full modeling or have a financial background. Even a simple model that just tries to derive a valuation through relative terms will put you above most crypto investors. Some simple valuation methods that anyone can do:
Probablistic Scenario Valuation
This is all about thinking of scenarios and probability, a helpful exercise in itself. For example: Bill Miller, a prominent value investor, wrote a probabilistic valuation case for Bitcoin in 2015. He looked at two possible scenarios for probabalistic valuation:
  1. becoming a store-of-value equal to gold (a $6.4 trillion value), with a .25% probability of occurring
  2. replacing payment processors like VISA, MasterCard, etc. (a $350 million dollar value) with a 2.5% probability
Combining those scenarios would give you the total expected market cap: (0.25% x 6.4 trillion) + (2.5% x 350 million). Divide this by the outstanding supply and you have your valuation.
Metcalfe's Law
Metcalfe's Law which states that the value of a network is proportional to the square of the number of connected users of the system (n2). So you can compare various currencies based on their market cap and square of active users or traffic. We can alter this to crypto by thinking about it in terms of both users and transactions:
For example, compare the Coinbase pairs:
Metric Bitoin Ethereum Litecoin
Market Cap $152 Billion $93 Billion $7.3 Billion
Daily Transactions (last 24hrs) 249,851 1,051,427 70,397
Active Addresses (Peak 1Yr) 1,132,000 1,035,000 514,000
Metcalfe Ratio (Transactions Based) 2.43 0.08 1.47
Metcalfe Ratio (Address Based) 0.12 0.09 0.03
Generally the higher the ratio, the higher the valuation given for each address/transaction.
Market Cap to Industry comparisons
Another easy one is simply looking at the total market for the industry that the coin is supposedly targeting and comparing it to the market cap of the coin. Think of the market cap not only with circulating supply like its shown on CMC but including total supply. For example the total supply for Dentacoin is 1,841,395,638,392, and when multiplied by its price in early January we get a market cap that is actually higher than the entire industry it aims to disrupt: Dentistry.
More complex valuation models
If you would like to get into more fleshed out models with Excel, I highly recommend Chris Burniske's blog about using Quantity Theory of Money to build an equivalent of a DCF analysis for crypto.
Here is an Excel file example of OMG done by Nodar Janashia using Chris' model .
You should create multiple scenarios with multiple assumptions, both positive and negative. Have a base scenario and then moderately optimistic/pessimistic and highly optimistic/pessimistic scenario.
Personally I like to see at least a 50% upward potential before investing from my moderately pessimistic scenario, but you can set your own safety margin.
The real beneficial thing about modelling isn't even the price or valuation comparisons it spits out, but that it forces you to think about why the coin has value and what your own assumption about the future are. For example the discount rate you apply to the net present utility formula drastically affects the valuation, and it reflects your own assumptions of how risky the crypto is. What exactly would be a reasonable discount rate? What about the digital economy you are assuming for the coin, what levers affects its size and adoption and how likely are your assumptions to come true? You'll be a drastically more intelligent investor if you think about the fundamental variables that give your coin the market cap you think it should hold.

Summing it up

The time for lambo psychosis is over. But that's no reason to feel down, this is a new day and what many were waiting for. I've put together in one place here how to construct a portfolio allocation (taking into consideration risk and return targets), and how to go through a systematic crypto picking method. I'm won't tell you what to buy, you should always decide that for yourself and DYOR. But as long as you follow a rational and thorough methodology (feel free to modify anything I said above to suit your own needs) you will feel pretty good about your investments, even in times like these.
Edit: Also get a crypto prediction ferret. You won't regret it.
submitted by arsonbunny to CryptoCurrency [link] [comments]

Your Guide to Monero, and Why It Has Great Potential

/////Your Guide to Monero, and Why It Has Great Potential/////

Marketing.
It's a dirty word for most members of the Monero community.
It is also one of the most divisive words in the Monero community. Yet, the lack of marketing is one of the most frustrating things for many newcomers.
This is what makes this an unusual post from a member of the Monero community.
This post is an unabashed and unsolicited analyzation of why I believe Monero to have great potential.
Below I have attempted to outline different reasons why Monero has great potential, beginning with upcoming developments and use cases, to broader economic motives, speculation, and key issues for it to overcome.
I encourage you to discuss and criticise my musings, commenting below if you feel necessary to do so.

///Upcoming Developments///

Bulletproofs - A Reduction in Transaction Sizes and Fees
Since the introduction of Ring Confidential Transactions (Ring CT), transaction amounts have been hidden in Monero, albeit at the cost of increased transaction fees and sizes. In order to mitigate this issue, Bulletproofs will soon be added to reduce both fees and transaction size by 80% to 90%. This is great news for those transacting smaller USD amounts as people commonly complained Monero's fees were too high! Not any longer though! More information can be found here. Bulletproofs are already working on the Monero testnet, and developers were aiming to introduce them in March 2018, however it could be delayed in order to ensure everything is tried and tested.
Multisig
Multisig has recently been merged! Mulitsig, also called multisignature, is the requirement for a transaction to have two or more signatures before it can be executed. Multisig transactions and addresses are indistinguishable from normal transactions and addresses in Monero, and provide more security than single-signature transactions. It is believed this will lead to additional marketplaces and exchanges to supporting Monero.
Kovri
Kovri is an implementation of the Invisible Internet Project (I2P) network. Kovri uses both garlic encryption and garlic routing to create a private, protected overlay-network across the internet. This overlay-network provides users with the ability to effectively hide their geographical location and internet IP address. The good news is Kovri is under heavy development and will be available soon. Unlike other coins' false privacy claims, Kovri is a game changer as it will further elevate Monero as the king of privacy.
Mobile Wallets
There is already a working Android Wallet called Monerujo available in the Google Play Store. X Wallet is an IOS mobile wallet. One of the X Wallet developers recently announced they are very, very close to being listed in the Apple App Store, however are having some issues with getting it approved. The official Monero IOS and Android wallets, along with the MyMonero IOS and Android wallets, are also almost ready to be released, and can be expected very soon.
Hardware Wallets
Hardware wallets are currently being developed and nearing completion. Because Monero is based on the CryptoNote protocol, it means it requires unique development in order to allow hardware wallet integration. The Ledger Nano S will be adding Monero support by the end of Q1 2018. There is a recent update here too. Even better, for the first time ever in cryptocurrency history, the Monero community banded together to fund the development of an exclusive Monero Hardware Wallet, and will be available in Q2 2018, costing only about $20! In addition, the CEO of Trezor has offered a 10BTC bounty to whoever can provide the software to allow Monero integration. Someone can be seen to already be working on that here.
TAILS Operating System Integration
Monero is in the progress of being packaged in order for it to be integrated into TAILS and ready to use upon install. TAILS is the operating system popularised by Edward Snowden and is commonly used by those requiring privacy such as journalists wanting to protect themselves and sources, human-right defenders organizing in repressive contexts, citizens facing national emergencies, domestic violence survivors escaping from their abusers, and consequently, darknet market users.
In the meantime, for those users who wish to use TAILS with Monero, u/Electric_sheep01 has provided Sheep's Noob guide to Monero GUI in Tails 3.2, which is a step-by-step guide with screenshots explaining how to setup Monero in TAILS, and is very easy to follow.
Mandatory Hardforks
Unlike other coins, Monero receives a protocol upgrade every 6 months in March and September. Think of it as a Consensus Protocol Update. Monero's hard forks ensure quality development takes place, while preventing political or ideological issues from hindering progress. When a hardfork occurs, you simply download and use the new daemon version, and your existing wallet files and copy of the blockchain remain compatible. This reddit post provides more information.
Dynamic fees
Many cryptocurrencies have an arbitrary block size limit. Although Monero has a limit, it is adaptive based on the past 100 blocks. Similarly, fees change based on transaction volume. As more transactions are processed on the Monero network, the block size limit slowly increases and the fees slowly decrease. The opposite effect also holds true. This means that the more transactions that take place, the cheaper the fees!
Tail Emission and Inflation
There will be around 18.4 million Monero mined at the end of May 2022. However, tail emission will kick in after that which is 0.6 XMR, so it has no fixed limit. Gundamlancer explains that Monero's "main emission curve will issue about 18.4 million coins to be mined in approximately 8 years. (more precisely 18.132 Million coins by ca. end of May 2022) After that, a constant "tail emission" of 0.6 XMR per 2-minutes block (modified from initially equivalent 0.3 XMR per 1-minute block) will create a sub-1% perpetual inflatio starting with 0.87% yearly inflation around May 2022) to prevent the lack of incentives for miners once a currency is not mineable anymore.
Monero Research Lab
Monero has a group of anonymous/pseudo-anonymous university academics actively researching, developing, and publishing academic papers in order to improve Monero. See here and here. The Monero Research Lab are acquainted with other members of cryptocurrency academic community to ensure when new research or technology is uncovered, it can be reviewed and decided upon whether it would be beneficial to Monero. This ensures Monero will always remain a leading cryptocurrency. A recent end of 2017 update from a MRL researcher can be found here.

///Monero's Technology - Rising Above The Rest///

Monero Has Already Proven Itself To Be Private, Secure, Untraceable, and Trustless
Monero is the only private, untraceable, trustless, secure and fungible cryptocurrency. Bitcoin and other cryptocurrencies are TRACEABLE through the use of blockchain analytics, and has lead to the prosecution of numerous individuals, such as the alleged Alphabay administrator Alexandre Cazes. In the Forfeiture Complaint which detailed the asset seizure of Alexandre Cazes, the anonymity capabilities of Monero were self-demonstrated by the following statement of the officials after the AlphaBay shutdown: "In total, from CAZES' wallets and computer agents took control of approximately $8,800,000 in Bitcoin, Ethereum, Monero and Zcash, broken down as follows: 1,605.0503851 Bitcoin, 8,309.271639 Ethereum, 3,691.98 Zcash, and an unknown amount of Monero".
Privacy CANNOT BE OPTIONAL and must be at a PROTOCOL LEVEL. With Monero, privacy is mandatory, so that everyone gets the benefits of privacy without any transactions standing out as suspicious. This is the reason Darknet Market places are moving to Monero, and will never use Verge, Zcash, Dash, Pivx, Sumo, Spectre, Hush or any other coins that lack good privacy. Peter Todd (who was involved in the Zcash trusted setup ceremony) recently reiterated his concerns of optional privacy after Jeffrey Quesnelle published his recent paper stating 31.5% of Zcash transactions may be traceable, and that only ~1% of the transactions are pure privacy transactions (i.e., z -> z transactions). When the attempted private transactions stand out like a sore thumb there is no privacy, hence why privacy cannot be optional. In addition, in order for a cryptocurrency to truly be private, it must not be controlled by a centralised body, such as a company or organisation, because it opens it up to government control and restrictions. This is no joke, but Zcash is supported by DARPA and the Israeli government!.
Monero provides a stark contrast compared to other supposed privacy coins, in that Monero does not have a rich list! With all other coins, you can view wallet balances on the blockexplorers. You can view Monero's non-existent rich list here to see for yourself.
I will reiterate here that Monero is TRUSTLESS. You don't need to rely on anyone else to protect your privacy, or worry about others colluding to learn more about you. No one can censor your transaction or decide to intervene. Monero is immutable, unlike Zcash, in which the lead developer Zooko publicly tweeted the possibility of providing a backdoor for authorities to trace transactions. To Zcash's demise, Zooko famously tweeted:
" And by the way, I think we can successfully make Zcash too traceable for criminals like WannaCry, but still completely private & fungible. …"
Ethereum's track record of immutability is also poor. Ethereum was supposed to be an immutable blockchain ledger, however after the DAO hack this proved to not be the case. A 2016 article on Saintly Law summarised the problematic nature of Ethereum's leadership and blockchain intervention:
" Many ethereum and blockchain advocates believe that the intervention was the wrong move to make in this situation. Smart contracts are meant to be self-executing, immutable and free from disturbance by organisations and intermediaries. Yet the building block of all smart contracts, the code, is inherently imperfect. This means that the technology is vulnerable to the same malicious hackers that are targeting businesses and governments. It is also clear that the large scale intervention after the DAO hack could not and would not likely be taken in smaller transactions, as they greatly undermine the viability of the cryptocurrency and the technology."
Monero provides Fungibility and Privacy in a Cashless World
As outlined on GetMonero.org, fungibility is the property of a currency whereby two units can be substituted in place of one another. Fungibility means that two units of a currency can be mutually substituted and the substituted currency is equal to another unit of the same size. For example, two $10 bills can be exchanged and they are functionally identical to any other $10 bill in circulation (although $10 bills have unique ID numbers and are therefore not completely fungible). Gold is probably a closer example of true fungibility, where any 1 oz. of gold of the same grade is worth the same as another 1 oz. of gold. Monero is fungible due to the nature of the currency which provides no way to link transactions together nor trace the history of any particular XMR. 1 XMR is functionally identical to any other 1 XMR. Fungibility is an advantage Monero has over Bitcoin and almost every other cryptocurrency, due to the privacy inherent in the Monero blockchain and the permanently traceable nature of the Bitcoin blockchain. With Bitcoin, any BTC can be tracked by anyone back to its creation coinbase transaction. Therefore, if a coin has been used for an illegal purpose in the past, this history will be contained in the blockchain in perpetuity.
A great example of Bitcoin's lack of fungibility was reposted by u/ViolentlyPeaceful:
"Imagine you sell cupcakes and receive Bitcoin as payment. It turns out that someone who owned that Bitcoin before you was involved in criminal activity. Now you are worried that you have become a suspect in a criminal case, because the movement of funds to you is a matter of public record. You are also worried that certain Bitcoins that you thought you owned will be considered ‘tainted’ and that others will refuse to accept them as payment."
This lack of fungibility means that certain businesses will be obligated to avoid accepting BTC that have been previously used for purposes which are illegal, or simply run afoul of their Terms of Service. Currently some large Bitcoin companies are blocking, suspending, or closing accounts that have received Bitcoin used in online gambling or other purposes deemed unsavory by said companies. Monero has been built specifically to address the problem of traceability and non-fungibility inherent in other cryptocurrencies. By having completely private transactions Monero is truly fungible and there can be no blacklisting of certain XMR, while at the same time providing all the benefits of a secure, decentralized, permanent blockchain.
The world is moving cashless. Fact. The ramifications of this are enormous as we move into a cashless world in which transactions will be tracked and there is a potential for data to be used by third parties for adverse purposes. While most new cryptocurrency investors speculate upon vaporware ICO tokens in the hope of generating wealth, Monero provides salvation for those in which financial privacy is paramount. Too often people equate Monero's features with criminal endeavors. Privacy is not a crime, and is necessary for good money. Transparency in Monero is possible OFF-CHAIN, which offers greater transparency and flexibility. For example, a Monero user may share their Private View Key with their accountant for tax purposes.
Monero aims to be adopted by more than just those with nefarious use cases. For example, if you lived in an oppressive religious regime and wanted to buy a certain item, using Monero would allow you to exchange value privately and across borders if needed. Another example is that if everybody can see how much cryptocurrency you have in your wallet, then a certain service might decide to charge you more, and bad actors could even use knowledge of your wallet balance to target you for extortion purposes. For example, a Russian cryptocurrency blogger was recently beaten and robbed of $425k. This is why FUNGIBILITY IS ESSENTIAL. To summarise this in a nutshell:
"A lack of fungibility means that when sending or receiving funds, if the other person personally knows you during a transaction, or can get any sort of information on you, or if you provide a residential address for shipping etc. – you could quite potentially have them use this against you for personal gain"
For those that wish to seek more information about why Monero is a superior form of money, read The Merits of Monero: Why Monero Vs Bitcoin over on the Monero.how website.
Monero's Humble Origins
Something that still rings true today despite the great influx of money into cryptocurrencies was outlined in Nick Tomaino's early 2016 opinion piece. The author claimed that "one of the most interesting aspects of Monero is that the project has gained traction without a crowd sale pre-launch, without VC funding and any company or well-known investors and without a pre-mine. Like Bitcoin in the early days, Monero has been a purely grassroots movement that was bootstrapped by the creator and adopted organically without any institutional buy-in. The creator and most of the core developers serve the community pseudonymously and the project was launched on a message board (similar to the way Bitcoin was launched on an email newsletter)."
The Organic Growth of the Monero Community
The Monero community over at monero is exponentially growing. You can view the Monero reddit metrics here and see that the Monero subreddit currently gains more than 10,000 (yes, ten thousand!) new subscribers every 10 days! Compare this to most of the other coins out there, and it proves to be one of the only projects with real organic growth. In addition to this, the community subreddits are specifically divided to ensure the main subreddit remains unbiased, tech focused, with no shilling or hype. All trading talk is designated to xmrtrader, and all memes at moonero.
Forum Funding System
While most contributors have gratefully volunteered their time to the project, Monero also has a Forum Funding System in which money is donated by community members to ensure it attracts and retains the brightest minds and most skilled developers. Unlike ICOs and other cryptocurrencies, Monero never had a premine, and does not have a developer tax. If ANYONE requires funding for a Monero related project, then they can simply request funding from the community, and if the community sees it as beneficial, they will donate. Types of projects range from Monero funding for local meet ups, to paying developers for their work.
Monero For Goods, Services, and Market Places
There is a growing number of online goods and services that you can now pay for with Monero. Globee is a service that allows online merchants to accept payments through credit cards and a host of cryptocurrencies, while being settled in Bitcoin, Monero or fiat currency. Merchants can reach a wider variety of customers, while not needing to invest in additional hardware to run cryptocurrency wallets or accept the current instability of the cryptocurrency market. Globee uses all of the open source API's that BitPay does making integrations much easier!
Project Coral Reef is a service which allows you to shop and pay for popular music band products and services using Monero.
Linux, Veracrypt, and a whole array of VPNs now accept Monero.
There is a new Monero only marketplace called Annularis currently being developed which has been created for those who value financial privacy and economic freedom, and there are rumours Open Bazaar is likely to support Monero once Multisig is implemented.
In addition, Monero is also supported by The Living Room of Satoshi so you can pay bills or credit cards directly using Monero.
Monero can be found on a growing number of cryptocurrency exchange services such as Bittrex, Poloniex, Cryptopia, Shapeshift, Changelly, Bitfinex, Kraken, Bisq, Tux, and many others.
For those wishing to purchase Monero anonymously, there are services such as LocalMonero.co and Moneroforcash.com.
With XMR.TO you can pay Bitcoin addresses directly with Monero. There are no other fees than the miner ones. All user records are purged after 48 hours. XMR.TO has also been added as an embedded feature into the Monerujo android wallet.
Coinhive Browser-Based Mining
Unlike Bitcoin, Monero can be mined using CPUs and GPUs. Not only does this encourage decentralisation, it also opens the door to browser based mining. Enter side of stage, Coinhive browser-based mining. As described by Hon Lau on the Symnatec Blog Browser-based mining, as its name suggests, is a method of cryptocurrency mining that happens inside a browser and is implemented using Javascript. Coinhive is marketed as an alternative to browser ad revenue. The motivation behind this is simple: users pay for the content indirectly by coin mining when they visit the site and website owners don't have to bother users with sites laden with ads, trackers, and all the associated paraphern. This is great, provided that the websites are transparent with site visitors and notify users of the mining that will be taking place, or better still, offer users a way to opt in, although this hasn't always been the case thus far.
Skepticism Sunday
The main Monero subreddit has weekly Skepticism Sundays which was created with the purpose of installing "a culture of being scientific, skeptical, and rational". This is used to have open, critical discussions about monero as a technology, it's economics, and so on.

///Speculation///

Major Investors And Crypto Figureheads Are Interested
Ari Paul is the co-founder and CIO of BlockTower Capital. He was previously a portfolio manager for the University of Chicago's $8 billion endowment, and a derivatives market maker and proprietary trader for Susquehanna International Group. Paul was interviewed on CNBC on the 26th of December and when asked what was his favourite coin was, he stated "One that has real fundamental value besides from Bitcoin is Monero" and said it has "very strong engineering". In addition, when he was asked if that was the one used by criminals, he replied "Everything is used by criminals including the US dollar and the Euro". Paul later supported these claims on Twitter, recommending only Bitcoin and Monero as long-term investments.
There are reports that "Roger Ver, earlier known as 'Bitcoin Jesus' for his evangelical support of the Bitcoin during its early years, said his investment in Monero is 'substantial' and his biggest in any virtual currency since Bitcoin.
Charlie Lee, the creator of Litecoin, has publicly stated his appreciation of Monero. In a September 2017 tweet directed to Edward Snowden explaining why Monero is superior to Zcash, Charlie Lee tweeted:
All private transactions, More tested privacy tech, No tax on miners to pay investors, No high inflation... better investment.
John McAfee, arguably cryptocurrency's most controversial character at the moment, has publicly supported Monero numerous times over the last twelve months(before he started shilling ICOs), and has even claimed it will overtake Bitcoin.
Playboy instagram celebrity Dan Bilzerian is a Monero investor, with 15% of his portfolio made up of Monero.
Finally, while he may not be considered a major investor or figurehead, Erik Finman, a young early Bitcoin investor and multimillionaire, recently appeared in a CNBC Crypto video interview, explaining why he isn't entirely sold on Bitcoin anymore, and expresses his interest in Monero, stating:
"Monero is a really good one. Monero is an incredible currency, it's completely private."
There is a common belief that most of the money in cryptocurrency is still chasing the quick pump and dumps, however as the market matures, more money will flow into legitimate projects such as Monero. Monero's organic growth in price is evidence smart money is aware of Monero and gradually filtering in.
The Bitcoin Flaw
A relatively unknown blogger named CryptoIzzy posted three poignant pieces regarding Monero and its place in the world. The Bitcoin Flaw: Monero Rising provides an intellectual comparison of Monero to other cryptocurrencies, and Valuing Cryptocurrencies: An Approach outlines methods of valuing different coins.
CryptoIzzy's most recent blog published only yesterday titled Monero Valuation - Update and Refocus is a highly recommended read. It touches on why Monero is much more than just a coin for the Darknet Markets, and provides a calculated future price of Monero.
CryptoIzzy also published The Power of Money: A Case for Bitcoin, which is an exploration of our monetary system, and the impact decentralised cryptocurrencies such as Bitcoin and Monero will have on the world. In the epilogue the author also provides a positive and detailed future valuation based on empirical evidence. CryptoIzzy predicts Monero to easily progress well into the four figure range.
Monero Has a Relatively Small Marketcap
Recently we have witnessed many newcomers to cryptocurrency neglecting to take into account coins' marketcap and circulating supply, blindly throwing money at coins under $5 with inflated marketcaps and large circulating supplies, and then believing it's possible for them to reach $100 because someone posted about it on Facebook or Reddit.
Compared to other cryptocurrencies, Monero still has a low marketcap, which means there is great potential for the price to multiply. At the time of writing, according to CoinMarketCap, Monero's marketcap is only a little over $5 billion, with a circulating supply of 15.6 million Monero, at a price of $322 per coin.
For this reason, I would argue that this is evidence Monero is grossly undervalued. Just a few billion dollars of new money invested in Monero can cause significant price increases. Monero's marketcap only needs to increase to ~$16 billion and the price will triple to over $1000. If Monero's marketcap simply reached ~$35 billion (just over half of Ripple's $55 billion marketcap), Monero's price will increase 600% to over $2000 per coin.
Another way of looking at this is Monero's marketcap only requires ~$30 billion of new investor money to see the price per Monero reach $2000, while for Ethereum to reach $2000, Ethereum's marketcap requires a whopping ~$100 billion of new investor money.
Technical Analysis
There are numerous Monero technical analysts, however none more eerily on point than the crowd-pleasing Ero23. Ero23's charts and analysis can be found on Trading View. Ero23 gained notoriety for his long-term Bitcoin bull chart published in February, which is still in play today. Head over to his Trading View page to see his chart: Monero's dwindling supply. $10k in 2019 scenario, in which Ero23 predicts Monero to reach $10,000 in 2019. There is also this chart which appears to be freakishly accurate and is tracking along perfectly today.
Coinbase Rumours
Over the past 12 months there have been ongoing rumours that Monero will be one of the next cryptocurrencies to be added to Coinbase. In January 2017, Monero Core team member Riccardo 'Fluffypony' Spagni presented a talk at Coinbase HQ. In addition, in November 2017 GDAX announced the GDAX Digit Asset Framework outlining specific parameters cryptocurrencies must meet in order to be added to the exchange. There is speculation that when Monero has numerous mobile and hardware wallets available, and multisig is working, then it will be added. This would enable public accessibility to Monero to increase dramatically as Coinbase had in excess of 13 million users as of December, and is only going to grow as demand for cryptocurrencies increases. Many users argue that due to KYC/AML regulations, Coinbase will never be able to add Monero, however the Kraken exchange already operates in the US and has XMfiat pairs, so this is unlikely to be the reason Coinbase is yet to implement XMfiat trading.
Monero Is Not an ICO Scam
It is likely most of the ICOs which newcomers invest in, hoping to get rich quick, won't even be in the Top 100 cryptocurrencies next year. A large portion are most likely to be pumps and dumps, and we have already seen numerous instances of ICO exit scams. Once an ICO raises millions of dollars, the developers or CEO of the company have little incentive to bother rolling out their product or service when they can just cash out and leave. The majority of people who create a company to provide a service or product, do so in order to generate wealth. Unless these developers and CEOs are committed and believed in their product or service, it's likely that the funds raised during the ICO will far exceed any revenue generated from real world use cases.
Monero is a Working Currency, Today
Monero is a working currency, here today.
The majority of so called cryptocurrencies that exist today are not true currencies, and do not aim to be. They are a token of exchange. They are like a share in a start-up company hoping to use blockchain technology to succeed in business. A crypto-assest is a more accurate name for coins such as Ethereum, Neo, Cardano, Vechain, etc.
Monero isn't just a vaporware ICO token that promises to provide a blockchain service in the future. It is not a platform for apps. It is not a pump and dump coin.
Monero is the only coin with all the necessary properties to be called true money.
Monero is private internet money.
Some even describe Monero as an online Swiss Bank Account or Bitcoin 2.0, and it is here to continue on from Bitcoin's legacy.
Monero is alleviating the public from the grips of banks, and protests the monetary system forced upon us.
Monero only achieved this because it is the heart and soul, and blood, sweat, and tears of the contributors to this project. Monero supporters are passionate, and Monero has gotten to where it is today thanks to its contributors and users.

///Key Issues for Monero to Overcome///

Scalability
While Bulletproofs are soon to be implemented in order to improve Monero's transaction sizes and fees, scalability is an issue for Monero that is continuously being assessed by Monero's researchers and developers to find the most appropriate solution. Ricardo 'Fluffypony' Spagni recently appeared on CNBC's Crypto Trader, and when asked whether Monero is scalable as it stands today, Spagni stated that presently, Monero's on-chain scaling is horrible and transactions are larger than Bitcoin's (because of Monero's privacy features), so side-chain scaling may be more efficient. Spagni elaborated that the Monero team is, and will always be, looking for solutions to an array of different on-chain and off-chain scaling options, such as developing a Mimblewimble side-chain, exploring the possibility of Lightning Network so atomic swaps can be performed, and Tumblebit.
In a post on the Monero subreddit from roughly a month ago, monero moderator u/dEBRUYNE_1 supports Spagni's statements. dEBRUYNE_1 clarifies the issue of scalability:
"In Bitcoin, the main chain is constrained and fees are ludicrous. This results in users being pushed to second layer stuff (e.g. sidechains, lightning network). Users do not have optionality in Bitcoin. In Monero, the goal is to make the main-chain accessible to everyone by keeping fees reasonable. We want users to have optionality, i.e., let them choose whether they'd like to use the main chain or second layer stuff. We don't want to take that optionality away from them."
When the Spagni CNBC video was recently linked to the Monero subreddit, it was met with lengthy debate and discussion from both users and developers. u/ferretinjapan summarised the issue explaining:
"Monero has all the mechanisms it needs to find the balance between transaction load, and offsetting the costs of miner infrastructure/profits, while making sure the network is useful for users. But like the interviewer said, the question is directed at "right now", and Fluffys right to a certain extent, Monero's transactions are huge, and compromises in blockchain security will help facilitate less burdensome transactional activity in the future. But to compare Monero to Bitcoin's transaction sizes is somewhat silly as Bitcoin is nowhere near as useful as monero, and utility will facilitate infrastructure building that may eventually utterly dwarf Bitcoin. And to equate scaling based on a node being run on a desktop being the only option for what classifies as "scalable" is also an incredibly narrow interpretation of the network being able to scale, or not. Given the extremely narrow definition of scaling people love to (incorrectly) use, I consider that a pretty crap question to put to Fluffy in the first place, but... ¯_(ツ)_/¯"
u/xmrusher also contributed to the discussion, comparing Bitcoin to Monero using this analogous description:
"While John is much heavier than Henry, he's still able to run faster, because, unlike Henry, he didn't chop off his own legs just so the local wheelchair manufacturer can make money. While Morono has much larger transactions then Bitcoin, it still scales better, because, unlike Bitcoin, it hasn't limited itself to a cripplingly tiny blocksize just to allow Blockstream to make money."
Setting up a wallet can still be time consuming
It's time consuming and can be somewhat difficult for new cryptocurrency users to set up their own wallet using the GUI wallet or the Command Line Wallet. In order to strengthen and further decentralize the Monero network, users are encouraged to run a full node for their wallet, however this can be an issue because it can take up to 24-48 hours for some users depending on their hard-drive and internet speeds. To mitigate this issue, users can run a remote node, meaning they can remotely connect their wallet to another node in order to perform transactions, and in the meantime continue to sync the daemon so in the future they can then use their own node.
For users that do run into wallet setup issues, or any other problems for that matter, there is an extremely helpful troubleshooting thread on the Monero subreddit which can be found here. And not only that, unlike some other cryptocurrency subreddits, if you ask a question, there is always a friendly community member who will happily assist you. Monero.how is a fantastic resource too!
Despite still being difficult to use, the user-base and price may increase dramatically once it is easier to use. In addition, others believe that when hardware wallets are available more users will shift to Monero.

///Conclusion///

I actually still feel a little shameful for promoting Monero here, but feel a sense of duty to do so.
Monero is transitioning into an unstoppable altruistic beast. This year offers the implementation of many great developments, accompanied by the likelihood of a dramatic increase in price.
I request you discuss this post, point out any errors I have made, or any information I may have neglected to include. Also, if you believe in the Monero project, I encourage you to join your local Facebook or Reddit cryptocurrency group and spread the word of Monero. You could even link this post there to bring awareness to new cryptocurrency users and investors.
I will leave you with an old on-going joke within the Monero community - Don't buy Monero - unless you have a use case for it of course :-) Just think to yourself though - Do I have a use case for Monero in our unpredictable Huxleyan society? Hint: The answer is ?
Edit: Added in the Tail Emission section, and noted Dan Bilzerian as a Monero investor. Also added information regarding the XMR.TO payment service. Added info about hardfork
submitted by johnfoss69 to CryptoCurrency [link] [comments]

Intersecting and competing interests of miners vs. investors

This post is pure speculation but it's something that I've been thinking about for a while. This post is informational - it's not a quick FUD/FOMO analysis. However, I do make a case for being a long-term bull (i.e. years).
There are two major groups with large individual resources: miners and crypto investors. These aren't your general traders, these are large, multi-million dollar groups (or larger). Let's look at motivations of both to see how it can relate to prices.
Crypto Miners
Miners obviously want maximum profit. There are several ways to do this:
Note that Bitcoin's difficulty is at all-time high. Litecoin too. Increased difficulty means the same equipment will take longer to generate the same reward. Also note that with the upcoming halving - coming in a month for Litecoin and next year for Bitcoin - the reward for each crypto will significantly decrease. This means that - all else being equal - the profit for miners will drop significantly (temporarily, at least).
The other news is that your typical miner isn't making a lot of money. Like many other examples, economies of scale come into play and your big investors that have large facilities and equipment are the ones making more money. This means more power in the hands of fewer people who have a larger investment with their various interests. How is an individual going to compete with something like this?
Also note that when the crypto market fell at the end of 2017, miner manufacturers had losses due to lack of new buyers. This led to a collapse in prices for various ASIC equipment and related hardware. This does affect stock market prices. Although crypto hardware isn't exactly a huge profit center, check out stock prices for AMD, Intel, and NVidia for the last 5 years. You'll see articles like this and this that support my conclusions. Someone could dig more into this to get better numbers.
Crypto Investors
Crypto investors (the whales), don't really care as much about buying vs. selling - they can profit in either move in the price. However, shorting is risky and shorting crypto is very risky so more are likely to err on the side of growth. It also benefits them for any large swing in prices as opposed to steady growth. They want the market to continue to grow since if it shrinks, it can be destroyed and their profits will go away. They also don't want the market to get too large too fast but some things are beyond their control once they overheat. They're frustrated since they want to pump a lot of money into this - for massive profits - but this attention will be noticed. For instance, if some whale invests $50b into Bitcoin, it'll cause havok on the market and the prices so they have to have relatively small investments. The big institutions want to throw more money into it but they know that if they do, the market will get out of hand. Being noticed invites unwanted regulations and this leads to loss of control and, likely, lower prices with less opportunity.
Note that the interests of both miners and investors sometimes overlap. For instance, miners want the crypto price to be higher so they have higher profits. Investors will also receive the rewards through higher prices.
However, sometimes their interests are in conflict. For instance, if I was running a mining business and I had some resources, here's what I see: an increasing rise in costs due to higher ASIC prices, lower reward due to higher difficulty, and lower reward due to halving.
What's my solution? I would:
You can see how investors could be working for this where some miners could get money together to hire professional traders to do this. Same with companies like AMD, Intel, NVidia, and others (ex: Samsung) who stand to make a lot of money selling this equipment.
The simple problem with crypto is for it to succeed:
The only solution is for the miners - and their suppliers - to continue to pump crypto prices higher to maximize their profits... indefinitely. Investors help out with raising prices but they also help when the market overheats and they cash out and/or short. A market crash temporarily helps miners who can now buy cheaper equipment.
We've all seen charts like these. How else can you explain such projectors (due to past history)? You do that with the continued - almost mathematically calculated - rises and falls in prices over time. If you add in difficulty, ASIC prices, and miner profitability, I'm sure you'll see a pattern. Larger difficulty (i.e. more costs) and higher hardware prices require higher crypto prices for miners to continue to be in business. Considering the market is still relatively small, it's easier to manipulate for higher prices.
submitted by SsurebreC to LitecoinTraders [link] [comments]

AMA - Community Edition

Updated:
11) $5m buyback
12) Release of yp part 3?
13) It is allegedly possible that ICX supply can be doubled in only 4 years thanks to a whopping 20% annual token inflation
14) One of the things that got me excited about crypto was that there was no inflation. I'm a bit disappointed in Icons approach here.
15) Where is the DEX?
16) How far are we from interoperability? Am I correct in saying that interoperability is years from completion?
I'll be answering all questions to the best of my knowledge, this list will update regularly.
1) Clear description how icx will go up by benefiting from the line partnership. -> 2 or 3 practical examples.
Don't forget Unchain is a joint venture, so Unchain is ICON's company as well, their success is directly beneficial to ICON. In a recent interview w Brad, Henry also shed some light regarding this JV and that it is way beyond a simple partnership agreement https://youtu.be/paFYyt1hVWc?t=155
2) Clear description how icx will go up by building private blockchains and connecting them. -> 2 or 3 practical examples.
I answered this to someone on telegram a couple days ago. Here's my example,
"So I asked what's the use for icx with private chains. They have no reason to connect to the public chain and they have no reason to tokenzie their business."
The missing link is interoperability. The private chains need a way to communicate w each other, this is actually how the ICON project was conceived. ICONLOOP(loopchain then) offered blockchain solutions to enterprises and consortiums, but they had no way to interoperate
So I think the argument originated from, if the design paradigm is emergent for private chains to go public, or interoperate through a public chain as a common block
We've heard about those use cases and see actual implementations from U-coin vending machines to hospitals making insurance claims etc
I agree in some cases it doesn't make sense for private chains to go public, if its designing a problem to solve, lets not do that
but i'd say, a random guess, that 90%+ of the private chains have a reason to connect, much like intranet/internet
Let me try another example, we've heard the hospital/insurance too many times
Let's say there's a trade financing supply system of a large manufacturer w thousands of vendors
before their enrollment, you'll probably need to do some identity and reputation check in the public chain (common services like ID validation should readily be available as a public service, like chainID)
that will validate their legitimacy.. then next step is prolly for the vendors who need the trade financing where they need a more complex system like a stable coin to avoid volatility.. and move the money around
instead of rebuilding a coin, they could adopt a coin system within the ICON network
then what happens next.. i guess disputes w goods lost or quality problems.. again, vendors can call for a public arbitration system where there'll be a network of lawyers who specialize in cross-border disputes or arbiters to provide the service
so we need a chain of services that can be called throughout the life cycle, interoperable between private and public chains
there are plenty more use cases, but its not a hard choice to make, its definitely possible to have a common meeting point while maintaining sensitive information within their local blockchain
In the example above, nothing is tokenized, their businesses are on the private blockchain without a native coin, but they use the common services from the public like stable coins or arbitration system
3) Monthly or quartal reports on partnerships, marketing, and the tech.
You mean something like this? https://medium.com/helloiconworld/icon-3q-achievements-8c42ea798a0b
4) Opinion why korean people dont bring icx volume on korean exchanges.
I don't think even president Moon has an answer to this :P But are people really this patriotic when it comes to money? Do Americans invest in American ICOs for being made in USA? I guess some will, but this is not (and shouldn't be) the main driving force of token demand.
5) Clarification what kind of understanding we should have about this 124 teampower - are they employees with 40 hours/week working contracts or just 2 hours, cooperations partners, freelancer, what ever.
I paid a visit to the KR office a couple months back, it was like a giant coding factory running full steam. I can attest to this, they're full time employees working around the clock.
6) Roadmap - stop giving yourself room for delays and interpretations by not offering a roadmap.
My suggestion on this one is to have a % completion roadmap with change logs. I think most people are more interested in progress, less deadlines.
7) Quarterly AMAs.
Sounds good.
8) Why the hell are ICON members still advisors at Sentinel Protocol, a ICO that promoted itself using icon as blockchain and then moving to EOS.
As far as I can tell, the two teams are still in good relationships. Timing was unfortunate, SP always had their first product (uppward) scheduled to launch shortly after their fundraising. Public presale also ended a lot faster than expected (scheduled to run for a week, ended in 3 minutes). During the period ICON was migrating to mainnet V3 and doing token swap. It made sense for them to deploy on a working platform, without compromising their schedule. Their team also said that they haven't ruled out the possibility to migrate back to ICON (although I think its less likely this day).
9) Spend some money on an english translation expert for you social media appearance.
The translations (YouTube subtitles) were a bit sloppy I agree, understandable enough but they should definitely spend more time proof reading, professional presentation is a thing.
10) How much from the received ICO money/ether has been provided directly or indirectly to iconloop.
The raised ETH from ICO are barely spent, you can check on etherscan from the contribution address.
11) $5m buyback
From the key announcement by ICON foundation’s CFO Jay, the repurchase program is a pending legal matter, after consultation with law firms they’ll proceed with the buyback. https://youtu.be/keDitkWssv8?t=160
The team stated two main intentions for conducting this program,
If you read between the lines from the buyback announcement https://medium.com/helloiconworld/key-announcements-from-icon-8ea0f5a18d6f
Repurchases under the foundation’s program will be made in open market or privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors.
What this is saying is that, the buyback has no intention to create short term pumps, otherwise all purchases would’ve been made in the open market under a timed schedule. What this also implies is that, there won’t be a public wallet with an open schedule, to avoid legal obligations (insider trading) or unintended purposes (manipulation).
So what is to be expected? Giving a deadline won't make sense because everything can be timed, so my take is that an announcement will be made after the repurchase has been completed. I don't think anyone can take advantage of this program but will still benefit directly with $5M worth of tokens off the market supply.
12) Release of yp part 3?
This is expectedly a highly anticipated yellow paper, as it will likely outline all the details we need to know about staking. This YP however is not just a simple table with your annual returns, this is also technically far more complex than the previous two YPs.
I provided a very simplified explanation for IISS in this thread: https://twitter.com/2infiniti/status/1020141186797846529
IISS is however a lot more complicated than this, it is a full AI based incentive scoring system to explore the optimal incentive scheme to vitalize the ecosystem. On top of incentives, it is also the base metrics for governance policies (voting). Incentives are designed with token economic studies, to reinforce target behavior, based on operant conditioning principles, eg. dormant accounts, distribution schemes based on activity levels, penalties for malicious nodes etc, and it is very difficult to get right.
If you look into the WP, IISS further explored with things like mitigation of inequalities, weighted average and adjustment, efficiency of IISS, fairness of distribution, prevention of misusage and many other topics explored in depth.
The point is, this YP is very complex, and personally I’d wish the team to take as much time as it needs to get it done right. IISS will ultimately decide the overall health of our ecosystem, its sustainability and well, our passive income.
With that said, I am also with you that I’d love to see the details asap, as I have plans to build a tool similar to the Virtual Step Calculator where people can easily calculate their returns. From the announcement at least, it does look like the team is close to completion and labeled the release "soon", so let's just have a little patience and let them do all the necessary last checks.
Also as a reality check, YPs are researches that need to be formalized, implemented and iterated enough times before an official release. So please don’t expect to start staking right away when YP pt3 sees the light.
13) It is allegedly possible that ICX supply can be doubled in only 4 years thanks to a whopping 20% annual token inflation
Please go to this thread for my explanation: https://twitter.com/2infiniti/status/1060397068852748288
14) One of the things that got me excited about crypto was that there was no inflation. I'm a bit disappointed in Icons approach here.
Most crypto token issuance models can be broken down into these 3 categories
All of the above models can work in their own ways, depending on the behavior its trying to incentivize. Sustainable crypto economies are backed by a recursive loop of value transfer that all participants are incentivized to participate in. The goal is to create an incentive loop that all parties act in their own self-interest, then creating greater value.
Let’s take a look at bitcoin’s incentive loop, a simple model where mining is profitable, more miners create more security and security adds intrinsic value.
Mine bitcoin -> market dynamics decide value -> incentive to mine -> security of network increases -> more incentive to mine ←|
Augur’s case
Trusted prediction platform -> more stakes in events -> more incentive for REP holders to verify truth -> more people verifying, more trusted ←|
In ICON’s case, incentives are centered around i_score, which is a function of activities within the network. The incentive loop would look something like this
I_score rewards and governance control (votes) -> more incentive to participate in activities and governance policies -> increased network security and activity ←|
Similar incentive loop found in SCORE
SCORE staking (virtual steps) -> increased activities -> sustainable SCOREs ←|
Now for continuous issuance models, the goals are no different from other models. They want to issue tokens, just enough that it is optimal for maintaining security and encourage participations, creating a healthy incentive loop.
But can’t these models infinitely issue to a point where my money is worth next to nothing?
Yes, this is in theory possible. For Ethereum, with majority of network miners approving such change (say removing ice age), and a new Ethereum client to accommodate this change, resulting in an issuance similar to a 51% attack. Since issued ETH is also linked to the value of a single token, this will render ETH much less valuable. In practice, this is extremely unlikely to happen, as miners are financially discouraged by doing so, since they have much more to lose, just part of the game theory.
ICON’s issuance is a system implementation which depends on activities happening in the network. There are also preventive measures such as issuance upper bound and representative mitigations. I explained issuance model in full in this thread: https://twitter.com/2infiniti/status/1060397068852748288
15) Where is the DEX?
For this one hear the explanation directly from Min: https://youtu.be/tk2tZpnrI0o?t=1662
16) How far are we from interoperability? Am I correct in saying that interoperability is years from completion?
Not entirely. Interoperability will likely take a few phases to roll out, what we should be anticipating for right now is BTP (Blockchain TransfeTransmission Protocol) specification.
What is exactly is BTP?
From the abstract level, BTP creates a mechanism by which two channels may pass messages to each other. BTP assumes that multiple channels (eg. private blockchains from ICONLOOP) running on the ICON network under their own state and logic, at the same time connecting to the base channel for consensus mechanism. This is the simplest form of interoperability.
Down the road we should expect more and more advanced versions, handling threat models, connection lifecycles, asynchronous requests, and all sorts of optimization and so forth. This is enabling interoperability between blockchains one phase at a time, gradually reaching the end game of hyperconnecting the world.
So how long is this going to take?
I do not know. But the purpose of this reply is to explain that interoperability is not an on-off switch, but will likely take many phases to roll out.
submitted by msg2infiniti to helloicon [link] [comments]

The Massive Value Prop of SUMOkoin: a Corporate Lawyer's Analysis

Can you guys help us all out and upvote those posts?
Trying to do my part to spread the word.
MERRY CHRISTMAS TEAM! (SKIP TO END FOR TLDR :)
[Note: this post was originally drafted on Christmas Day and subsequently edited]
[Disclaimer: I am posting this in triplicate on cryptocurrency cryptomarkets monero for visibility]

***Intro*** 
This is my first try at one of these. I am going to make a case for SUMOkoin (SUMO on Cryptopia) from a pure VALUE perspective. I’ve been researching privacy coins deeply and feel I’ve reached a sufficient conclusion to merit sharing SUMO.
SUMOkoin is a fork of MONERO (XMR). In my opinion, XMR is hands down the most undervalued coin in the top 15. Once people figure out how to value privacy into the value of a coin, XMR, along with the other privacy coins like SUMO, will skyrocket.
I am not here to argue SUMO is superior to XMR. That’s not what this post is about. I don’t find debating the merits of SUMO vs. XMR interesting as investing in SUMO has nothing to do with SUMO overtaking XMR. If anything, I’d argue that the merits of XMR underline the value of SUMO. What I do find interesting is return on investment (“ROI”). If you do want to argue about XMR vs. SUMO, I can point you to this infographic: https://i.redd.it/0eqfkg1hq2501.jpg

***Background*** 
I’m a corporate lawyer in Silicon Valley. my practice focuses on venture capital financing (“VC)”) and mergers & acquisitions (“M&A”). basically I spend all day every fucking day reviewing and revising cap tables, stock purchase agreements and merger agreements.
I started using BTC in 2014 in conjunction with silk road and TOR. I had a minor conniption when I recently calculated how much BTC I handled in 2014. My 2017 has been good with IOTA at sub $0.30, POWR at $0.12, ENJIN at $0.02, REQ at $0.05, ENIGMA, and PHORE.
My crypto investing philosophy is based on betting long odds. As Warren Buffet said, consolidate to get rich, diversify to stay rich. That said I strongly recommend you have an IRA and/or 401(k) in place prior to venturing into crypto. But when it comes to crypto, I’d happily strike out several times to have a chance at hitting a 100x. This is probably born out of working with VCs who do the same only with companies, not coins. I view myself as a mini-VC in the cryptosphere.
__
The Number 1 thing I've taken away from corporate law is that it pays to get in EARLY
Did you know that the typical founder buys their shares for $0.00001 per share? So if a founder owns 5 million shares, they bought those shares for $50 total. The typical IPO goes out the door at $10-20 per share. My iPhone calculator says ERROR when it tries to divide $10/0.00001 because it runs out of screen space.
At the time of this writing, SUMO has a Marketcap of $5 million. Given it’s market cap and its XMR-likeness, I am positive SUMO is the best value investment in the Privacy Coin arena at this time. PHR is another competitor, but at $50m market cap, I feel it has lost its mega potential for you and me.

***Merits of SUMO*** 
So what’s so good about SUMOkoin? Didn’t you say it was just a Monero knock-off?
1) Well, sort of. SUMO is based on CryptoNote and was conceived from a fork of Monero, with a little bit of extra privacy thrown in. It would not be wrong to think SUMO is to Litecoin as XMR is to Bitcoin.
2) Increased Privacy. Which brings us to point 2. SUMO is doing a couple things to increase privacy and nimbleness simultaneously. Monero currently does many of these too — though at the fork MONERO could not. Don’t forget Monero is also 5.5 billion market cap to SUMO’s 5 million.
a) RingCT. All transactions are RingCT (ring confidential transactions) and the minimum “mixin” transactions is 13 (12 plus the original transaction) which gives passes the threshold to resist blockchain attacks. No transactions made on the SUMO blockchain can ever be traced to the actual participants. Nifty huh?
b) Sub-addresses. The wallet deploys disposable sub-addresses to conceal your real sumo wallet address even from senders (who typically would need to know your actual address to send currency). Monero also does this.
3) Fungibility aka “Digital Cash”. This term gets thrown about a bunch, but basically, it means ‘how close is this coin to cash in terms of usage?’ Well, Sumokoin is one of a few cryptos that can boast true fungibility — SUMO can act just like physical cash i.e. no other people can find where the money comes from and how many have been transferred.
5) Mining Made Easy Mode. Seeing as SUMO was a fork, and not an ICO, they didn’t have to rewrite the wheel. Instead they focused on putting together some solid fundamentals like a great wallet and a dedicated mining application that lets you start mining with your current CPU. Check out the “Sumojoin Easy Minder” - simply run and start mining.
6) Intuitive and Secure Wallet. This shouldn’t come as a surprise, yet in this day and age, apparently it is not a prereq. They already have a GUI wallet, litewallet, plus those unlimited sub-addresses to boot that I mentioned above.
7) Decentralization. SUMO is botnet-proof, and therefore botnet mining resistant. When a botnet joins a mining pool, it adjusts the mining difficulty, thereby balancing the difficulty level of mining.
8) Dev Team // Locked Coins // Future Development Funds. There are lots of things that make this coin a ‘go.’ but perhaps the most overlooked in crypto is that the devs have done an excellent job delivering ahead of schedule. If you’re an engineer or have managed projects, you know how difficult hitting projected deadlines can be. These guys update github very frequently and there is a high degree of visibility. The devs have also time-locked their pre-mine in a publicly view-able wallet for years so they aren't bailing out with a pump and dump. The dev team is based in Japan.
9) Broad Appeal. If marketed properly, SUMO has the ability to appeal to older individuals venturing into crypto due to the fungibility / similarities to cash. This is not different than XMR, and I expect it will be exploited in 2018 by all privacy coins. It could breed familiarity with new money, and new money is the future of crypto.
10) Marketing. Which brings me to my final point - and it happens to be a weakness. SUMO needs a community effort to distribute information to the masses. A good example is Vert Coin. Their team is very good at disseminating information. I’m not talking about hyping a coin; I’m talking about how effectively can you spread facts about your product to the masses.
To get mainstream SUMO needs something like this VertCoin post: https://www.reddit.com/vertcoin/comments/7ixkbf/vertbase_a_vertcoin_to_usd_exchange/

***Market Cap Discussion*** 
For a coin with using Monero’s tech, 5 million is minuscule. For any coin, 5 mil is nothing. Some MC comparisons [as of December 25th, 2017]:

Let's talk about market cap ("MC") for a minute.
It gets tossed around a lot, but I don’t think people appreciate how important getting in early can be. Say you buy into SUMO at 5 million MC. Things go well and 20 million new money gets poured into SUMO. Now the MC is 25 million. Your gains are 4x (you invested $1,000 and now you have 5,000, netting 4,000).
Now let’s says say you bought at 10 million instead of 5 million. $15 mill gets poured in until the MC again reaches 25 mil. Your gains are 1.5x (you put in $1,000, you now have 2,500, netting 1,500)
Remember: investing at 5 mil MC vs. 10 mil MC represents an EXTREMELY subtle shift in time of investment (“TOI”). But the difference in net profit is dramatic. the biggest factor is that your ROI multiplier is locked in at your TOI — meaning every 25 million that gets added to the MC pot, you 4X you're returns.
Example MC = 100
I strongly believe SUMO can and will 20x in Q1 2018 and 100x by end of Q4 2018 reach $500,000 MC. There is ample room for a tricked out Monero clone at 500 MC. That’s 100x.
Guess how many coins have 500 mil market caps? 48 as of this writing. 48! Have many of these coins with about ~500 mil MC have you heard of?
MaidSafeCoin?
Status?
Decred?
Veritaseum?
SUMO has potential to surpass those.

***The Importance of Privacy*** 
I want to close with a brief discussion of privacy as it relates to fundamental rights and as to crypto. 2018 will be remembered as the Year of Privacy Coins. Privacy has always been at the core of crypto. This is no coincidence. “Privacy” is the word we have attached to the concept of possessing the freedom to do as you please within the law without explaining yourself to the government or financial institution.
Discussing privacy from a financial perspective is difficult because it has very deep political significance. But that is precisely why it is so valuable.
Privacy is the right of billions of people not to be surveilled. We live in a world where every single transaction you do through the majority financial system is recorded, analyzed and sold — and yet where the money goes is completely opaque. Our transactions are visible from the top, but we can’t see up. Privacy coins turn that upside down.
Privacy is a human right. It is the guarantor of American constitutional freedom. It is the cornerstone of freedoms of expression, association, political speech and all our other freedoms for that matter. And privacy coins are at the root of that freedom. What the internet did for freedom of information, privacy coins will do for freedom of financial transactions.

***TL;DR:*** 
2018 = Year of Privacy Coins // Monero is legit aka is the most undervalued coin in the Top 15 // SUMO is low MC clone meaning great ROI opportunity // ROI is everything // did I mention ROI is everything? // Consolidate to get rich; diversify to stay rich // extra strong code foundation + strong dev team + SUMO team financial incentives locked in multi-year vesting schedule // un-limited sub-addresses associated with Wallet & Litewallet means complete anonynimity // RingCT w/ 12+1 minimum mixins means complete confidentiality // legit Fungibility (like cash) means MARKET VALUE of privacy is baked into the currency // Mining Made Easy for those interested/able // is Botnet mining resistant // has unique market appeal to UNSOPHISTICATED DEEP pockets due to similarity to cash.

Legal Disclaimer
THIS POST AND ANY SUBSEQUENT STATEMENTS BY THE AUTHOR DO NOT CONSTITUTE LEGAL OR FINANCIAL ADVICE AND IS NOT INTENDED TO BE LEGAL OR FINANCIAL ADVICE OR RELIED UPON. NO REFERENCES TO THIS POST SHALL BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THIS POST REPRESENTS THE LONE OPINION OF A NON-SOPHISTICATED INVESTOR.
submitted by UCBerzerkeley to sumokoin [link] [comments]

Best Cryptocurrency Exchanges for Beginners

Best Cryptocurrency Exchanges for Beginners
Best Cryptocurrency Exchanges for Beginners
Before we get into exchanges, let’s refresh our minds about what cryptocurrency is. The concept behind cryptocurrencies is relatively simple, while the math and technology are not. Essentially, a cryptocurrency is a virtual or digital currency that utilizes cryptography as a means for protection and security.
Cryptography is also used to regulate the creation of additional units, so as to not drive the overall digital currency market wild. One of the greatest appeals of cryptocurrencies is that they are not regulated by any government agencies. The most popular digital asset is the bitcoin, followed by ethereum.

What Are Cryptocurrency Exchanges?

Cryptocurrencies can be traded through cryptocurrency exchanges. These cryptocurrency exchanges are platforms through which you can purchase or sell digital currencies for dollars, euros, and pounds, as well as other digital assets. For example, you can sell bitcoins and purchase dollars with the sold bitcoins, or you could exchange bitcoins for ether. These exchanges are a vital part of the virtual currency expansion rate.
There are private exchanges, which are exclusive and operate by invite only, as well as those available for the public. Local exchanges also exist. Some are easier to use than others are; certain exchanges are so flexible that digital assets can be traded directly through the built-in chat features of specific popular messengers, like Telegram.

What to Consider When Picking the Best Cryptocurrency Exchanges

Here are a few things you will want to consider before picking the best cryptocurrency exchange suited for your trading and speculative needs.
Fees – Almost all exchanges charge fees for you to do business on their platforms. Make sure that when you are signing up or committing yourself to a specific exchange that you know everything about its fees.
Verification Requirements and Security – These are vital to understand before starting out on an exchange. Most exchanges require some sort of identity verification in the form of a passport, driver’s license, proof of residence, or other similar document before joining. The more complex the verification process, the safer the exchange platform.
Exchange Rates – Exchange rates are also important, as you don’t want to join a cryptocurrency exchange that charges draconian fees for transactions and exchanges. That just wouldn’t be fair to you or financially savvy.
Reputation – The best cryptocurrency exchanges always have ups and downs. However, the general opinion of the top ones is positive. The best exchanges have a solid reputation and are well trusted by traders.
Region – It’s also important to find an exchange that supports your geographic region. Some exchanges may support all of the countries in South America, while not supporting any of the countries in Asia, and vice versa. If you are living in Russia, for example, make sure you pick the best exchange platform that supports your region.
Now, let’s take a look at some of the best cryptocurrency exchanges out there.

Security

Something which is important to bare in mind when choosing a cryptocurrency exchange to make your trades and purchases on is their security measures. It is well-known that many exchanges have been hacked in the past, most notably the Mt Gox exchange, which people are still feeling the fall-out from ever since.
You should know that the your funds or coins on an exchange or not really yours, unless you own the private keys to the wallet of your coins you are relying on someone else to be custodian of your funds.
Luckily there are some basic measures you can take when using an exchange. The most important is to never store more there than you are willing to lose, if you have a significant balance, you should withdraw it back to your own wallet and for extra security, use a Hardware wallet to secure these funds.
Exchanges should be used for quick purchases of your desired cryptocurrency or for trading an amount you are happy with. They should never be used as your primary wallet, that is not their intended function.
Another important step to take is to use all the security options available on the site, make sure that two-factor authentication (2FA) is setup correctly and you use an app like Authy or Google authenticator. Do not use the mobile phone option which texts you a code, this is not safe as their have been a number of high-profile hacks involving sim-swaps which allow a would-be hacker to take over your phone number and then gain access to your account.

Coinbase

Coinbase is one of the, if not the, most trusted cryptocurrency exchange platforms in the world. It is also the largest digital asset exchange platform in the world. The platform supports more than 32 countries and has more than 4 million active users. Traders are allowed to acquire and sell bitcoins using their bank account, credit card, PayPal, and other payment methods, as well. In order to begin trading on Coinbase, you will have to set up an e-wallet for buying and selling cryptocurrencies. Furthermore, users have to be able to link a valid bank account in order to purchase bitcoins.

https://preview.redd.it/dauw912k1ze31.jpg?width=808&format=pjpg&auto=webp&s=25f1df9624cea90cc1359160ac7fd8b133eba1e7
Currently, fully verified U.S. residents are only allowed to hold up to 50,000 bitcoins per day. Overall, Coinbase has a great reputation and is highly respected in the trader community. Most transactions through Coinbase only have a 1 percent transaction fee in addition to any fees that your selected payment method may carry.
As with CEX, you can only purchase a few currencies: Bitcoin, Ethereum and Litecoin. You would then need to use Changelly to convert these to other crypto currencies.
Another benefit of registering with Coinbase is the fact you are then able to use the Coinbase Pro exchange which is owed by the same company. Coinbase Pro allows to more advanced trading features such as margin trading and Market, Limit, & Stop Orders. Coinbase Pro also has lower fees than Coinbase.
Read our full Coinbase Review here to learn more. We have also conducted a thourough look at Coinbase’s security measures here.
Visit Coinbase

Binance

Binance is a newer exchange but one we have grown to love, it has a wide range of cryptocurrencies available to purchase and trade and has a basic and advanced view which you can switch between easily. Their fees are very reasonable and they allow you to register and trade immediately without having to verify your account. You will then be able to make withdrawals of up to 2 BTC per day, if you want to withdraw higher amounts you will then need to upload your photo ID and a “selfie” photo.

https://preview.redd.it/01yawgfl1ze31.jpg?width=808&format=pjpg&auto=webp&s=28c23efac9899a48ce174693ed30a6dba08d94db
The public opinion of Binance at this time is very high with people praising the speed of the site, ease of use and cheap fees.
For more details you can read our complete review of Binance here.
Visit Binance

KuCoin

KuCoin is a new but very exciting exchange based in South Korea. They operate similarly to Binance in the fact that they list new altcoins much quicker than other exchanges so it’s a good place to purchase cryptocurrencies shortly after their ICO meaning there is a greater opportunity to profit by getting in early.
The interface is very clean and modern and much easier to operate than other older and more clunky exchanges.
They also offer their own token KCS which allows all holders to receive a daily share of profits of the platform, this is a great token to hold as you are paid in the many different currencies that the site allows people to trade in.

https://preview.redd.it/qav0qx9m1ze31.jpg?width=808&format=pjpg&auto=webp&s=2635f1242f7474a56f21fe123c0ad1c7718a8ee8
Visit Kucoin

LocalBitcoins

LocalBitcoins is a peer-to-peer cryptocurrency exchange used in most big cities around the world. The general principle behind this exchange is that you can find people who live in your area or city and meet with them in person to conduct an exchange. The platform also offers options for purchasing digital currencies via PayPal, Square, direct-to-bank transfers, and many other payment-processing methods. The platform charges a small fee of 1 percent per transaction in cases where sellers apply their own exchange rate.

https://preview.redd.it/p3igqf3n1ze31.jpg?width=808&format=pjpg&auto=webp&s=2eae56e0e8dbe452e1d327f24ecc96642de2bc70
Similar to the way Uber passengers and drivers are rated, LocalBitcoins applies a rating to each trader that uses the platform, and this rating is publicly displayed. Trades first have to undergo an escrow process to ensure that nobody will be scammed by using the platform. Once everything is verified, the funds and cryptocurrencies transfer between traders. LocalBitcoins takes a commission of 1 percent from sellers. W
Take a look at our LocalBitcoins Review to find out more.
Visit LocalBitcoins

CoinMama

CoinMama is a large bitcoin brokerage that allows users to acquire coins with their debit or credit cards. The platform issues small fees for transactions. To make up for this, however, the limits for how many bitcoins a user can buy are much higher in comparison to Coinbase. Users can acquire up to $5,000 of coins per day or up to $20,000 per month. All users need to do to use CoinMama is to set up an account, log in, and navigate to the profile page section to fill in personal information.

https://preview.redd.it/rafwelwn1ze31.jpg?width=808&format=pjpg&auto=webp&s=e1ee6986f8f04ebfb40f0110fabab246203c2c66
Following this, users will be introduced to a page that allows them to select how many bitcoins they would like to purchase, and once a fitting amount has been selected, users will be allowed to add their preferred payment methods and bitcoin addresses. Users will also be required to verify their phone number and email address. CoinMama does not require most users to upload their government-issued ID. After completing the aforementioned steps and passing the verification process, users will be able to acquire bitcoins through CoinMama.
Read our complete CoinMama Review here.
Visit CoinMama

CEX.IO

CEX.IO is one of the oldest cryptocurrency exchanges in the world. However, despite being referred to as a cryptocurrency exchange, CEX.IO can only be used with bitcoins and ethereum which are the main two trading pairs for alt-coins. If you want to purchase other currencies, you can use CEX and then a service named Changelly to convert them to many other cryptos.
The platform is registered with the FINCEN and applies KYC and AML principles. In other words, users have to completely verify their identity before they can get involved in any trades with this platform. Currently, the platform supports purchases with credit cards, wire transfers, or SEPA transfers for European residents.

https://preview.redd.it/dvrr5yto1ze31.jpg?width=808&format=pjpg&auto=webp&s=46fa36889957b7742bf1eb1f682c6c8c31c1f164
Once you enter a trade, the platform automatically calculates the price of the transaction and freezes the exchange rate for 120 seconds, which is quite convenient. However, many users note that there are occasional hidden fees. CEX.IO has a flat fee of 7 percent for anything involving fiat currencies. For example, if you acquire $100 in bitcoins, you will only receive $93 in coins.
Read our indepth CEX Review here to learn more.
Visit CEX

Bittrex

Bittrex is well established and highly regarded crypto trading platform, with many coins and tokens to choose from. The interface is not for complete beginner’s but you should be able to find your way around after a little while.

https://preview.redd.it/xa00ycmp1ze31.jpg?width=808&format=pjpg&auto=webp&s=e42aedf2b51ff01005847ec0867c69ba94e8a7dd
Read our full review of Bittrex here.
Unsurprisingly, Bittrex’s most popular trading pairs are BTC and ETH. It must be noted that the exchange currently does not offer any kind of fiat-to-crypto pairs, e.g. with U.S. dollars, euros, or British pounds). One thing investors can do is buy USDT (Tether tokens) via wired bank transfers in order to use USDT for crypto-to-crypto exchanges.
However, you’ll need to be fully verified and willing to slap down at least $10,000 USD for Bittrex to even consider the transfer. And we here at Blockonomi don’t remind this approach anyways; there’s been a lot of controversy surrounding Tether lately, and it’s best just to stay away for now until further developments actualize.
Visit Bittrex

Conclusion

Picking the ideal cryptocurrency exchange platform for your specific needs may be a difficult and time-consuming process. Remember to pay attention to the fees, reputation, security, verification processes, and geographical services an exchange platform has to offer. Remember that you are not limited to using only one cryptocurrency exchange. Hopefully, the information provided will assist you in deciding which exchange platform to use.
We have selected 6 Cryptocurrency exchanges here which are trustworthy and easy to use for beginners to get started building their investment portfolios.
Original article link: https://blockonomi.com/cryptocurrency-exchanges/
submitted by Tokenberry to NewbieZone [link] [comments]

The Massive Value Prop of SUMOkoin: a Corporate Lawyer's Analysis

https://coinmarketcap.com/currencies/sumokoin/
MERRY CHRISTMAS TEAM! (SKIP TO END FOR TLDR :)
[Note: this post was originally drafted on Christmas Day and subsequently edited]
[Disclaimer: I am posting this in triplicate on cryptocurrency cryptomarkets monero for visibility]

***Intro*** 
This is my first try at one of these. I am going to make a case for SUMOkoin (SUMO on Cryptopia) from a pure VALUE perspective. I’ve been researching privacy coins deeply and feel I’ve reached a sufficient conclusion to merit sharing SUMO.
SUMOkoin is a fork of MONERO (XMR). In my opinion, XMR is hands down the most undervalued coin in the top 15. Once people figure out how to value privacy into the value of a coin, XMR, along with the other privacy coins like SUMO, will skyrocket.
I am not here to argue SUMO is superior to XMR. That’s not what this post is about. I don’t find debating the merits of SUMO vs. XMR interesting as investing in SUMO has nothing to do with SUMO overtaking XMR. If anything, I’d argue that the merits of XMR underline the value of SUMO. What I do find interesting is return on investment (“ROI”). If you do want to argue about XMR vs. SUMO, I can point you to this infographic: https://i.redd.it/0eqfkg1hq2501.jpg

***Background*** 
I’m a corporate lawyer in Silicon Valley. my practice focuses on venture capital financing (“VC)”) and mergers & acquisitions (“M&A”). basically I spend all day every fucking day reviewing and revising cap tables, stock purchase agreements and merger agreements.
I started using BTC in 2014 in conjunction with silk road and TOR. I had a minor conniption when I recently calculated how much BTC I handled in 2014. My 2017 has been good with IOTA at sub $0.30, POWR at $0.12, ENJIN at $0.02, REQ at $0.05, ENIGMA, and PHORE.
My crypto investing philosophy is based on betting long odds. As Warren Buffet said, consolidate to get rich, diversify to stay rich. That said I strongly recommend you have an IRA and/or 401(k) in place prior to venturing into crypto. But when it comes to crypto, I’d happily strike out several times to have a chance at hitting a 100x. This is probably born out of working with VCs who do the same only with companies, not coins. I view myself as a mini-VC in the cryptosphere.
__
The Number 1 thing I've taken away from corporate law is that it pays to get in EARLY
Did you know that the typical founder buys their shares for $0.00001 per share? So if a founder owns 5 million shares, they bought those shares for $50 total. The typical IPO goes out the door at $10-20 per share. My iPhone calculator says ERROR when it tries to divide $10/0.00001 because it runs out of screen space.
At the time of this writing, SUMO has a Marketcap of $5 million. Given it’s market cap and its XMR-likeness, I am positive SUMO is the best value investment in the Privacy Coin arena at this time. PHR is another competitor, but at $50m market cap, I feel it has lost its mega potential for you and me.

***Merits of SUMO*** 
So what’s so good about SUMOkoin? Didn’t you say it was just a Monero knock-off?
1) Well, sort of. SUMO is based on CryptoNote and was conceived from a fork of Monero, with a little bit of extra privacy thrown in. It would not be wrong to think SUMO is to Litecoin as XMR is to Bitcoin.
2) Increased Privacy. Which brings us to point 2. SUMO is doing a couple things to increase privacy and nimbleness simultaneously. Monero currently does many of these too — though at the fork MONERO could not. Don’t forget Monero is also 5.5 billion market cap to SUMO’s 5 million.
a) RingCT. All transactions are RingCT (ring confidential transactions) and the minimum “mixin” transactions is 13 (12 plus the original transaction) which gives passes the threshold to resist blockchain attacks. No transactions made on the SUMO blockchain can ever be traced to the actual participants. Nifty huh?
b) Sub-addresses. The wallet deploys disposable sub-addresses to conceal your real sumo wallet address even from senders (who typically would need to know your actual address to send currency). Monero also does this.
3) Fungibility aka “Digital Cash”. This term gets thrown about a bunch, but basically, it means ‘how close is this coin to cash in terms of usage?’ Well, Sumokoin is one of a few cryptos that can boast true fungibility — SUMO can act just like physical cash i.e. no other people can find where the money comes from and how many have been transferred.
5) Mining Made Easy Mode. Seeing as SUMO was a fork, and not an ICO, they didn’t have to rewrite the wheel. Instead they focused on putting together some solid fundamentals like a great wallet and a dedicated mining application that lets you start mining with your current CPU. Check out the “Sumojoin Easy Minder” - simply run and start mining.
6) Intuitive and Secure Wallet. This shouldn’t come as a surprise, yet in this day and age, apparently it is not a prereq. They already have a GUI wallet, litewallet, plus those unlimited sub-addresses to boot that I mentioned above.
7) Decentralization. SUMO is botnet-proof, and therefore botnet mining resistant. When a botnet joins a mining pool, it adjusts the mining difficulty, thereby balancing the difficulty level of mining.
8) Dev Team // Locked Coins // Future Development Funds. There are lots of things that make this coin a ‘go.’ but perhaps the most overlooked in crypto is that the devs have done an excellent job delivering ahead of schedule. If you’re an engineer or have managed projects, you know how difficult hitting projected deadlines can be. These guys update github very frequently and there is a high degree of visibility. The devs have also time-locked their pre-mine in a publicly view-able wallet for years so they aren't bailing out with a pump and dump. The dev team is based in Japan.
9) Broad Appeal. If marketed properly, SUMO has the ability to appeal to older individuals venturing into crypto due to the fungibility / similarities to cash. This is not different than XMR, and I expect it will be exploited in 2018 by all privacy coins. It could breed familiarity with new money, and new money is the future of crypto.
10) Marketing. Which brings me to my final point - and it happens to be a weakness. SUMO needs a community effort to distribute information to the masses. A good example is Vert Coin. Their team is very good at disseminating information. I’m not talking about hyping a coin; I’m talking about how effectively can you spread facts about your product to the masses.
To get mainstream SUMO needs something like this VertCoin post: https://www.reddit.com/vertcoin/comments/7ixkbf/vertbase_a_vertcoin_to_usd_exchange/

***Market Cap Discussion*** 
For a coin with using Monero’s tech, 5 million is minuscule. For any coin, 5 mil is nothing. Some MC comparisons [as of December 25th, 2017]:

Let's talk about market cap ("MC") for a minute.
It gets tossed around a lot, but I don’t think people appreciate how important getting in early can be. Say you buy into SUMO at 5 million MC. Things go well and 20 million new money gets poured into SUMO. Now the MC is 25 million. Your gains are 4x (you invested $1,000 and now you have 5,000, netting 4,000).
Now let’s says say you bought at 10 million instead of 5 million. $15 mill gets poured in until the MC again reaches 25 mil. Your gains are 1.5x (you put in $1,000, you now have 2,500, netting 1,500)
Remember: investing at 5 mil MC vs. 10 mil MC represents an EXTREMELY subtle shift in time of investment (“TOI”). But the difference in net profit is dramatic. the biggest factor is that your ROI multiplier is locked in at your TOI — meaning every 25 million that gets added to the MC pot, you 4X you're returns.
Example MC = 100
I strongly believe SUMO can and will 20x in Q1 2018 and 100x by end of Q4 2018 reach $500,000 MC. There is ample room for a tricked out Monero clone at 500 MC. That’s 100x.
Guess how many coins have 500 mil market caps? 48 as of this writing. 48! Have many of these coins with about ~500 mil MC have you heard of?
MaidSafeCoin?
Status?
Decred?
Veritaseum?
SUMO has potential to surpass those.

***The Importance of Privacy*** 
I want to close with a brief discussion of privacy as it relates to fundamental rights and as to crypto. 2018 will be remembered as the Year of Privacy Coins. Privacy has always been at the core of crypto. This is no coincidence. “Privacy” is the word we have attached to the concept of possessing the freedom to do as you please within the law without explaining yourself to the government or financial institution.
Discussing privacy from a financial perspective is difficult because it has very deep political significance. But that is precisely why it is so valuable.
Privacy is the right of billions of people not to be surveilled. We live in a world where every single transaction you do through the majority financial system is recorded, analyzed and sold — and yet where the money goes is completely opaque. Our transactions are visible from the top, but we can’t see up. Privacy coins turn that upside down.
Privacy is a human right. It is the guarantor of American constitutional freedom. It is the cornerstone of freedoms of expression, association, political speech and all our other freedoms for that matter. And privacy coins are at the root of that freedom. What the internet did for freedom of information, privacy coins will do for freedom of financial transactions.

***TL;DR:*** 
2018 = Year of Privacy Coins // Monero is legit aka is the most undervalued coin in the Top 15 // SUMO is low MC clone meaning great ROI opportunity // ROI is everything // did I mention ROI is everything? // Consolidate to get rich; diversify to stay rich // extra strong code foundation + strong dev team + SUMO team financial incentives locked in multi-year vesting schedule // un-limited sub-addresses associated with Wallet & Litewallet means complete anonynimity // RingCT w/ 12+1 minimum mixins means complete confidentiality // legit Fungibility (like cash) means MARKET VALUE of privacy is baked into the currency // Mining Made Easy for those interested/able // is Botnet mining resistant // has unique market appeal to UNSOPHISTICATED DEEP pockets due to similarity to cash.

Legal Disclaimer
THIS POST AND ANY SUBSEQUENT STATEMENTS BY THE AUTHOR DO NOT CONSTITUTE LEGAL OR FINANCIAL ADVICE AND IS NOT INTENDED TO BE LEGAL OR FINANCIAL ADVICE OR RELIED UPON. NO REFERENCES TO THIS POST SHALL BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THIS POST REPRESENTS THE LONE OPINION OF A NON-SOPHISTICATED INVESTOR.
submitted by UCBerzerkeley to CryptoCurrency [link] [comments]

Something is rotten in the state of DOGE mining

Shibes, something stinks in doge land. A problem in the design of dogecoin means that dishonest (or perhaps we should call them "creative") miners can take a disproportionate share of rewards, leaving everyone else to earn less than they deserve. Many of you have probably noticed that calculators estimate payouts larger than what you earn in practice (for example, dustcoin estimates ~1500DOGE/day @ 200KH/s while Non Stop Mine pays about a quarter of that rate), and most have written it off as bad luck: the blocks your pool found happened to be small, or your pool happened to be unlucky, and such is life. At least another friendly Shibe is having a better day, and it'll come around in tips anyway! Unfortunately, the truth is much darker.
The "random" DOGE rewards per block are not random. In fact, the value of each block is predetermined by a simple equation applied to the hash of the previous block. A creative miner can take advantage of this fact to mine dogecoin when the potential reward is high, and switch to litecoin when the potential reward is low. During some rounds, the reward is so small it isn't worth the electricity spent finding it; during more rounds, the reward is less than can be earned mining LTC; in a few rounds, the reward is spectacular. Honest miners mine with the expectation of earning an average of 500,000 DOGE per block, but when people are selectively mining the high-profit DOGE rounds, the average reward falls for honest miners.
So the question is: is this problem theoretical, or are honest miners really losing value to cheaters? I spent some time digging, and it appears that cheating is rampant! There are a few ways cheating can be detected.
If there is outside competition for high-value blocks, then pools should on average be finding blocks worth less than 500,000 DOGE (because some of the valuable blocks, but none of the low-value blocks, will be found by cheaters). The largest pool, Dogehouse, reports some useful averages: over all time, the pool has found 11,241 valid blocks worth 5365077071.0746 DOGE, for an average of 477,277 DOGE (including fees, which should actually raise the average above 500,000!). That's 4.5% below the expected average block value. Is it simply bad luck? No. With so many blocks found, there's about a 7% chance that the average will be above 505,000 or below 495,000; there's a <<1% chance their average will be above 510,000 or below 490,000, and effectively NO chance of seeing an average below 485,000. 477,000 is simply preposterous. Dogepool is either mind-bogglingly unlucky, or something is fishy.
Maybe Dogehouse is doing something fishy...but we can look at other pools. Dogechain's pool's all-time average block value is similar: 478847 DOGE. They're a smaller pool so the odds of this being bad luck aren't astronomical, but it's not very likely. Fast-pool's average is 477892. They're big enough that the odds are again astronomical.
And this only accounts for people cheating outside of the pools. Cheaters can operate inside our pools (more on this later)!
Maybe there's something wrong with the pools. They mostly run similar software. All their owners could be lying to us. We can check for signs of cheating independent of the pools: if more people are mining high-value blocks than low-value blocks, the hash-rate will be higher when the next block is high-value, so high-value blocks will be found faster than low-value blocks. Here's what you find if you look at 5000 recent blocks (blocks 80,001 to 85,000) and measure the average time to find a block, broken out by the block value:
I had to drop about 50 blocks which were missing good timestamps, but they're evenly distributed and shouldn't skew the averages.
The pattern is clear: the network is finding high-value blocks significantly faster than low-value blocks. Low-value rounds take as much as 10% longer than intended, and high-value rounds take around 5% less time than intended. Significant hashrate belongs to miners that cheat.
I mentioned cheaters can operate inside our pools. The payment algorithms used by most pools were carefully designed for bitcoin's (effectively) fixed block reward. They reliably protect against cheaters trying to hop in and out of pools based on short-term profitability, by making payouts solely dependent on the unknowable future (the straightforward pool payment schemes allow cheaters to look at a pool's recent history and use that to take an unfair share of its earnings; read this awesome paper for details). Since the future reward for a bitcoin pool is completely unknowable, PPLNS does not protect against a hopper who knows the future. In the case of Dogecoin, the future reward IS knowable, and PPLNS offers no protection.
Dogehouse is so big we can reasonably assume they'll find any particular block. Dogehouse is using a PPLNS target similar to an ordinary round's length. Someone who mines only during high-value rounds will, with high confidence, earn significantly more DOGE per share submitted than someone who mines Dogecoin 24/7. They also experience much lower variance in earnings.
The random block reward size needs to be removed. It's fun, but it rewards cheaters. Developing a more secure random block value selection technique is possible, but based on observations of GitHub, I do not trust the Dogecoin creator to get it right. Even subtle errors re-open the opportunity for cheating.
While I believe cheating is already unacceptably common, many will disagree until it worsens. To force the issue, I've included everything you need to join the cheaters.
Patch dogecoin/src/main.cpp:
diff --git a/src/main.cpp b/src/main.cpp index 2af23af..8c32dad 100644 --- a/src/main.cpp +++ b/src/main.cpp @@ -1794,6 +1794,8 @@ bool CBlock::ConnectBlock(CValidationState &state, CBlockIndex* pindex, CCoinsVi prevHash = pindex->pprev->GetBlockHash(); } +fprintf(stdout, "Next block value: %lld\n", GetBlockValue(pindex->nHeight, 0, GetHash())); +fflush(stdout); if (vtx[0].GetValueOut() > GetBlockValue(pindex->nHeight, nFees, prevHash)) return state.DoS(100, error("ConnectBlock() : coinbase pays too much (actual=%"PRI64d" vs limit=%"PRI64d")", vtx[0].GetValueOut(), GetBlockValue(pindex->nHeight, nFees, prevHash))); 
Perl script to control cgminer:
#!/usbin/perl use strict; use warnings; my $ltcMiner = "192.168.1.1 4029"; my $dogeMiner = "192.168.1.1 4028"; open (INSTREAM, "dogecoind|") or die; my $lastPool = 0; # LTC while (my $line = ) { if ($line =~ /Next block value: ([\d].*)/) { my $val = $1; if ($val >= 70000000000000) { # High-value DOGE round if ($lastPool == 0) { # Switch from LTC to DOGE $lastPool = 1; &onoff($dogeMiner, "en"); &onoff($ltcMiner, "dis"); } else { # Already mining DOGE } } elsif ($lastPool == 1) { # Low-value DOGE round and currently mining DOGE $lastPool = 0; print " Switching to LTC\n"; &onoff($ltcMiner, "en"); &onoff($dogeMiner, "dis"); } else { # Low-value DOGE round; already mining LTC anyway } } } close (INSTREAM); exit; sub onoff { my $miner = shift; my $enDis = shift; open (OUT1, "|nc $miner") or die $!; print OUT1 "gpu${enDis}able|0"; close (OUT1); } 
Then, simply run two instances of cgminer with separate API ports, one configured for LTC and the other configured for DOGE.
submitted by DisappointedShibe to dogemining [link] [comments]

I’ve been researching privacy coins deeply and feel I’ve reached a sufficient findings to merit sharing my stance re SUMO.

By Taylor Margot. Everyone should read this!
THE BASICS
SUMOkoin is a fork of MONERO (XMR). XMR is a fork of Bytecoin. In my opinion, XMR is hands down the most undervalued coin in the top 15. Its hurdle is that people do not know how to price in privacy to the price of a coin yet. Once people figure out how to accurately assess the value privacy into the value of a coin, XMR, along with other privacy coins like SUMOkoin, will go parabolic.
Let’s be clear about something. I am not here to argue SUMOkoin is superior to XMR. That’s not what this article is about and frankly is missing the point. I don’t find the SUMOkoin vs. XMR debate interesting. From where I stand, investing in SUMOkoin has nothing to do with SUMOkoin overtaking XMR or who has superior tech. If anything, I think the merits of XMR underline the value of SUMOkoin. What I do find interesting is return on investment (“ROI”).
Imagine SUMO was an upcoming ICO. But you knew ahead of time that they had a proven product-market fit and an awesome, blue chip code base. That’s basically what you have in SUMO. Most good ICOs raise over 20mil (meaning their starting market cap is $20 mil) but after that, it’s a crapshoot. Investing in SUMO is akin to getting ICO prices but with the amount of information associated with more established coins.
Let me make one more thing clear. Investing is all about information. Specifically it’s about the information imbalance between current value and the quality of your information. SUMO is highly imbalanced.
The fact of the matter is that if you are interested in getting the vision and product/market fit of a $6 billion market cap coin for $20 mil, you should keep reading.
If you are interested in arguing about XMR vs. SUMOkoin, I point you to this infographic
Background
I’m a corporate tech & IP lawyer in Silicon Valley. My practice focuses on venture capital (“VC)”) and mergers & acquisitions (“M&A”). Recently I have begun doing more IP strategy. Basically I spend all day every day reviewing cap tables, stock purchase agreements, merger agreements and patent portfolios. I’m also the CEO of a startup (Scry Chat) and have a team of three full-time engineers.
I started using BTC in 2014 in conjunction with Silk Road and TOR. I recently had a minor conniption when I discovered how much BTC I handled in 2014. My 2017 has been good with IOTA at sub $0.30, POWR at $0.12, ENJIN at $0.02, REQ at $0.05, ENIGMA at $0.50, ITC (IoT Chain) and SUMO.
My crypto investing philosophy is based on betting long odds. In the words of Warren Buffet, consolidate to get rich, diversify to stay rich. Or as I like to say, nobody ever got rich diversifying.
That being said I STRONGLY recommend you have an IRA and/or 401(k) in place prior to venturing into crypto. But when it comes to crypto, I’d rather strike out dozens of times to have a chance at hitting a 100x home run. This approach is probably born out of working with VCs in Silicon Valley who do the same only with companies, not coins. I view myself as an aggressive VC in the cryptosphere.
The Number 1 thing I’ve taken away from venture law is that it pays to get in EARLY.
Did you know that the typical founder buys their shares for $0.00001 per share? So if a founder owns 5 million shares, they bought those shares for $50 total. The typical IPO goes out the door at $10-20 per share. My iPhone calculator says ERROR when it tries to divide $10/0.00001 because it runs out of screen real estate.
At the time of this writing, SUMO has a Marketcap of $18 million. That is 3/10,000th or 1/3333th. Let that sink in for a minute. BCH is a fork of BTC and it has the fourth largest market cap of all cryptos. Given it’s market cap, I am positive SUMO is the best value proposition in the Privacy Coin arena at the time of this writing. *
ROI MERITS OF SUMOkoin
So what’s so good about SUMOkoin? Didn’t you say it was just a Monero knock-off?
1) Well, sort of. SUMO is based on CryptoNote and was conceived from a fork of Monero, with a little bit of extra privacy thrown in. It would not be wrong to think SUMO is to Litecoin as XMR is to Bitcoin.
2) Increased Privacy. Which brings us to point 2. SUMO is doing several things to increase privacy (see below). If Monero is the King of Privacy Coins, then SUMO is the Standard Bearer fighting on the front lines. Note: Monero does many of these too (though at the time of fork XMR could not). Don’t forget Monero is also 5.8 billion market cap to SUMO’s 18 million.
a) RingCT. All transactions since genesis are RingCT (ring confidential transactions) and the minimum “mixin” transactions is 13 (12 plus the original transaction). This passes the threshold to statistically resist blockchain attacks. No transactions made on the SUMO blockchain can ever be traced to the actual participants. Nifty huh? Monero (3+1 mixins) is considering a community-wide fork to increase their minimum transactions to 6, 9, or 12. Not a bad market signal if you’re SUMOkoin eh?
b) Sub-addresses. The wallet deploys disposable sub-addresses to conceal your real sumo wallet address even from senders (who typically would need to know your actual address to send currency). Monero also does this.
3) Fungibility aka “Digital Cash” aka Broad Use Case. “Fungibility” gets thrown about a bunch but basically it means ‘how close is this coin to cash in terms of usage?’ SUMO is one of a few cryptos that can boast true fungibility — it acts just like physical cash i.e. other people can never trace where the money came from or how many coins were transferred. MONERO will never be able to boast this because it did not start as fungible.
4) Mining Made Easy Mode. Seeing as SUMO was a fork, and not an ICO, they didn’t have to rewrite the wheel. Instead they focused on product by putting together solid fundamentals like a great wallet and a dedicated mining app. Basically anyone can mine with the most intuitive GUI mining app out there. Google “Sumo Easy Miner” – run and mine.
5) Intuitive and Secure Wallet. This shouldn’t come as a surprise, yet in this day and age, apparently it is not a prereq. They have a GUI wallet plus those unlimited sub-addresses I mentioned above. Here’s the github if you’d like to review: https://github.com/sumoprojects/SumoGUIWallet The wallet really is one of the best I have seen (ENJIN’s will be better). Clear, intuitive, idiot proof (as possible).
6) Decentralization. SUMO is botnet-proof, and therefore botnet mining resistant. When a botnet joins a mining pool, it adjusts the mining difficulty, thereby balancing the difficulty level of mining.
7) Coin Emission Scheme. SUMO’s block reward changes every 6-months as the following “Camel” distribution schema (inspired by real-world mining production like of crude oil, coal, etc. that is often slow at first, then accelerated in before decline and depletion). MONERO lacks this schema and it is significant. Camel ensures that Sumokoin won’t be a short-lived phenomena. Specifically, since Sumo is proof-of-work, not all SUMO can be mined. If it were all mined, miners would no longer be properly incentivized to contribute to the network (unless transaction fees were raised, which is how Bitcoin plans on handling when all 21 million coins have been mined, which will go poorly given that people already complain about fees). A good emission scheme is vital to viability. Compare Camel and Monero’s scheme if you must: https://github.com/sumoprojects/sumokoin/blob/mastescripts/sumokoin_camel_emission_cal.cpp vs. https://monero.stackexchange.com/questions/242/how-was-the-monero-emission-curve-chosen/247.
8) Dev Team // Locked Coins // Future Development Funds. There are lots of things that make this coin a ‘go.’ but perhaps the most overlooked in crypto is that the devs have delivered ahead of schedule. If you’re an engineer or have managed CS projects, you know how difficult hitting projected deadlines can be. These guys update github very frequently and there is a high degree of visibility. The devs have also time-locked their pre-mine in a publicly view-able wallet for years so they aren’t bailing out with a pump and dump. The dev team is based in Japan.
9) Broad Appeal. If marketed properly, SUMO has the ability to appeal to older individuals venturing into crypto due to the fungibility / similarities to cash. This is not different than XMR, and I expect it will be exploited in 2018 by all privacy coins. It could breed familiarity with new money, and new money is the future of crypto.
10) Absent from Major Exchanges. Thank god. ALL of my best investments have happened off Binance, Bittrex, Polo, GDAX, etc. Why? Because by the time a coin hits a major exchange you’re already too late. Your TOI is fucked. You’re no longer a savant. SUMO is on Cryptopia, the best jenky exchange.
11) Marketing. Which brings me to my final point – and it happens to be a weakness. SUMO has not focused on marketing. They’ve instead gathered together tech speaks for itself (or rather doesn’t). So what SUMO needs a community effort to distribute facts about SUMO’s value prop to the masses. A good example is Vert Coin. Their team is very good at disseminating information. I’m not talking about hyping a coin; I’m talking about how effectively can you spread facts about your product to the masses.
To get mainstream SUMO needs something like this VertCoin post: https://np.reddit.com/vertcoin/comments/7ixkbf/vertbase_a_vertcoin_to_usd_exchange/
MARKET CAP DISCUSSION
For a coin with using Monero’s tech, 20 million is minuscule. For any coin 20 mil is nothing. Some MC comparisons [as of Jan 2, 2017]:
Let’s talk about market cap (“MC”) for a minute.
It gets tossed around a lot but I don’t think people appreciate how important getting in as early as possible can be. Say you buy $1000 of SUMO at 20 mil MC. Things go well and 40 million new money gets poured into SUMO. Now the MC = 60 million. Your ROI is 200% (you invested $1,000 and now you have 3,000, netting 2,000).
Now let’s says say you bought at 40 million instead of 20 million. $20 mill gets poured in until the MC again reaches 60 mil. Your ROI is 50% (you put in $1,000, you now have 1,500, netting 500).
Remember: investing at 20 mil MC vs. 40 mil MC represents an EXTREMELY subtle shift in time of investment (“TOI”). But the difference in net profit is dramatic. the biggest factor is that your ROI multiplier is locked in at your TOI — look at the difference in the above example. 200% ROI vs. 50% ROI. That’s huge. But the difference was only 20 mil — that’s 12 hours in the crypto world.
I strongly believe SUMO can and will 25x in Q1 2018 (400m MC) and 50x by Q4 2018 reach. There is ample room for a tricked out Monero clone at 1 bil MC. That’s 50x.
Guess how many coins have 500 mil market caps? 58 as of this writing. 58! Have many of these coins with about ~500 mil MC have you heard of?
MaidSafeCoin?
Status?
Decred?
Veritaseum?
DRAGONCHAIN ARE YOU KIDDING ME
THE ROLE OF PRIVACY
I want to close with a brief discussion of privacy as it relates to fundamental rights and as to crypto. 2018 will be remembered as the Year of Privacy Coins. Privacy has always been at the core of crypto. This is no coincidence. “Privacy” is the word we have attached to the concept of possessing the freedom to do as you please within the law without explaining yourself to the government or financial institution.
Discussing privacy from a financial perspective is difficult because it has very deep political significance. But that is precisely why it is so valuable.
Privacy is the right of billions of people not to be surveilled. We live in a world where every single transaction you do through the majority financial system is recorded, analyzed and sold — and yet where the money goes is completely opaque. Our transactions are visible from the top, but we can’t see up. Privacy coins turn that upside down.
Privacy is a human right. It is the guarantor of American constitutional freedom. It is the cornerstone of freedoms of expression, association, political speech and all our other freedoms for that matter. And privacy coins are at the root of that freedom. What the internet did for freedom of information, privacy coins will do for freedom of financial transactions.
POST SCRIPT: AN ENGINEER’S PERSPECTIVE
Recently a well respected engineer reached out to me and had this to say about SUMO. I thought I’d share.
"I’m messaging you because I came at this from a different perspective. For reference, I started investing in Sumo back when it was around $0.5 per coin. My background is in CS and Computer Engineering. I currently research in CS.
When I was looking for a coin to invest in, I approached it in a completely different way from what you described in your post, I first made a list of coins with market caps < 20m, and then I removed all the coins that didn’t have active communities.
Next, because of my background, I read through the code for each of the remaining coins, and picked the coins which had both frequent commits to GitHub (proving dev activity), and while more subjective, code that was well written. Sumo had both active devs, and (very) well written code.
I could tell that the people behind this knew what they were doing, and so I invested.
I say all of this, because I find it interesting how we seem to have very different strategies for selecting ‘winners’ but yet we both ended up finding Sumo."

Legal Disclaimer:
THIS POST AND ANY SUBSEQUENT STATEMENTS BY THE AUTHOR DO NOT CONSTITUTE LEGAL OR FINANCIAL ADVICE AND IS NOT INTENDED TO BE LEGAL OR FINANCIAL ADVICE OR RELIED UPON. NO REFERENCES TO THIS POST SHALL BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THIS POST REPRESENTS THE LONE OPINION OF A NON-SOPHISTICATED INVESTOR.
submitted by MaesterEmi to CryptoCurrency [link] [comments]

Cryptocurrency markets challenges and solutions

This has been bugging me for a while so thank you for endulging my rambling. TL;DR at the end.
I'd like for everyone to just think about what we're trying to do here. Don't forget what the ultimate goal is. Anyone remember? Is it to make a profit? No, that's a secondary goal. The primary goal is to develop widespread adoption of cryptocurrency as an alternative to fiat currency. Anyone remember this lofty goal or did we all forget this while chasing 30% daily price swings. We're trying to complete with USD, GBP, EUR, and CNY, remember?
This is EUR vs. USD. You'll note that this is all data (or click on "All" button on the bottom), going back to 1993 through today. What do you notice? You'll notice an open of $1.22 to €1. After a few months, it fell about 10%, then rose up 24% over the next two years only to drop about 40% over seven years and then almost doubling over eight years only to drop about a third in the last ten years to where it is today - almost where we were 25 years ago (approximately).
This is BTC vs. USD. You'll note that this is all data going back to 2011. During the last seven years it has... oh my God are you kidding me?! This is LTC vs. USD.
Let's not forget what we're talking about. We're talking about currency. For currency to be used, it needs to be relatively stable. Now compare the charts above. Let's say we created a new country called Cryptonia. Which of these would you like to use as currency? EUR? BTC? LTC? My money is on EUR. Why? Because it's relatively stable.
Now let's fast forward a bit and pretend that Cryptonia has adopted Litecoin as its official currency. Our largest trading partner is the US. How would transactions between merchants work in this scenario, taking into account the last few days. I'll use the following prices:
Let's run through a transaction:
1/16
1/17
1/18:
Conclusion:
This works both ways as far as you can do the math in USD vs. LTC to see how this screws over at least one party due to the wild price swings. Note: fiat currency does the same thing with one key difference explained later on.
Don't forget that this is all within 3 days. Now sure, obviously the last few days isn't something that happens every day ... but doesn't it? Look at the examples of EUR:USD. Any sharp spikes or drops have taken months to execute - enough time for relative prices to adjust. Look at cryptocurrency prices - the swings (from a percentage basis) are wild on a regular basis. In short, cryptocurrency isn't acting like currency. It's acting like an asset and not just an asset but a highly speculative one. The IRS is right to treat it like an asset because if it looks like an asset, and it acts like an asset, then it is an asset.
Where do I believe this should go? I believe cryptocurrency market needs to mature. I believe these drastic price swings need to stop. When will this happen? I believe it'll happen when the cryptocurrency market reaches a happy plateau where the market cap has reached a point where the buyers and sellers mostly eliminate one another and the relatively large price swings - from a percent point of view - are as boring as Mr. Stein. EUR vs. USD went up 0.03% today. 0.03%. In LTC-speek, that's going up $0.58 for the whole day. Oh and it was a wild ride too. Why it went all the way down to $1.21697 and all the way up to 1.22645. I know, I know - tie me down because I'm out of control.
Is this the only problem? No. Cryptocurrency has another problem and that's the sheer number of types of coins available. How many coins are available? 1,448. Nearly 1,500 coins all competing with each other for market share. We have Bitcoin at about $200b all the way to something like Digital Money Bits (DMB, an appropriate acronym). What is it? Who cares, it's worth $3,832. Not $3.832 billion or million but literally $3,832 with a volume of $35,509 today and hey, just this June, its market cap reached an all time high of $62,000! You missed the recent run-up though and boy did you miss it. On January 1st, its market cap was worth almost five hundred dollars! Yep, about two Litecoins! But look at it now - it went from $500 market cap to $3,832 in less than three weeks. Clearly this one is shooting to the moon.
This is a problem. Decentralization has an unfortunate side effect of - duh - nobody being in charge. There's no real clearance for these and some people with a little bit of money can literally copy and paste a whitepaper and have this chart and have a serious valuation of almost $17b from $140 million in literally 30 days. This doesn't act like a currency either. This is a problem.
Don't forget, this isn't like the dot-com era. We're not launching IPO's and .com companies that have different ideas. Amazon isn't like Ebay, or Google, or Yahoo, or Facebook or anything else. They all have different ideas for different segments of the population. We are in the cryptocurrency market. The world today has 180 fiat currencies. Cryptocurrency market is approaching 1,500. We need to trim the fat and the outright forgeries. Market cap isn't enough to weed them out. There needs to be something, a stabilizing force, that should act as a clearinghouse for launch of new cryptocurrencies. The market has failed to destroy shitcoins. Heck, it rewarded them based on lies, paid endorsements, FOMO, and FUD for other coins. This doesn't help the cryptocurrency market. It helps a few people get really wealthy really quickly and you are left holding the bag, so to speak. Should coins only be allowed to be introduced when its network reaches a certain hash rate? Isn't that the only objective point of value we have - number of mathematical calculations and power used in those calculations? You can't fake that.
What's another problem with cryptocurrency? It's what it represents. The governments don't see crypto as a positive force. After all, it directly competes with their own currencies. Can the governments shut this down? No - this is the Internet, after all. But they can kill it in other ways. I don't know how many people here remember but my first brush with Bitcoin was the ransomware viruses which wanted $300 in Bitcoin to unlock files. Bitcoin was seen as something tied to illegal activities. If governments - and let's say the US, South Korea, and China in particular - ban Bitcoin and cryptocurrencies in particular then what they'll really do is make transactions illegal. What's the on-ramp and off-ramp to/from crypto? The banks which are already regulated. Now let's say you're in the US, your bank account is tied to your Coinbase account and you have some cryptocurrency. US issues a regulation which states that trading cryptocurrency is now illegal. It issues orders to all US banks to shut down related accounts. The following things will happen: cryptocurrency prices will tank and everyone is going to scramble taking money out which would likely overload the system, causing massive delays.
But let's say you're left holding your crypto and it's been a month. What can you do with it? Not much. Crypto isn't accepted in enough places yet. You can continue holding, hoping the price and ability to extract will come back one day. After all, you can't get your money back. Your bank closed your related account. You can open another one at any new bank but they'll either ban you from connecting your account to Coinbase or they'll confiscate any money coming from Coinbase and charge you with a crime. Now have the governments banned crypto? No - you can use and trade crypto all you want since it can't be traced. But have they effectively? Yes. Ironically, it's the banks that'll save us and I think that's why Ripple blew up. After all, if you have a cryptocurrency that sucks the bank's [censored] and plays along, you can get:
I think that's why something like Ripple blew up - because it doesn't care much about regular people, it wants to be the speedy highway for bank<->bank transfers.
What's a solution to this problem? More regulation and playing nice with the governments. Crypto isn't going mainstream if you shut out all governments. It needs to be connected. This means working with regulators to make sure that KYC laws are followed, that people report and pay money on any gains, and that - to a point - there's some supervision and tracing of transactions in a way that if you're robbed, you can get your money back. This will create a new job field, which - considering our current growth - will create a whole slew of high-paying white-collar jobs. Considering the high-level of transactions, banks would start this, followed by private companies, governments, and law-enforcement agencies. A good way to start this is what CBOE and CME have started to do - legitimize the currency. This is a foot in the door to the real holy grail: FOREX markets. When it's legitimized and not in serious competition with governments, it'll be embraced and its availability - along with instant transfers and low fees - will be widely supported by serious platforms.
Until these problems are fixed, the cryptocurrency market will remain what it is today: a speculative asset and not a currency. During the time it's taken me to write this post, Litecoin has gone up 2.6%. Euro remains at 0.03% gain.
Thanks for reading!
TL;DR
submitted by SsurebreC to LitecoinTraders [link] [comments]

Litecoin vs Bitcoin - No Contest? GAME-CHANGING LITECOIN TARGETS  LTC PRICE READY FOR SUBSTANTIAL MOVE! Litecoin Gains Ahead  What LTC Has In Store Online CryptoCurrency Calculator with multi-Cryptocurrencies Simple Bitcoin Converter Litecoin vs Bitcoin Mining

Litecoin Mining Profitability Calculator. If you're new to cryptocurrency mining and looking to get started, or a pro doing some more research, this calculator is for you. It will tell you your estimated profit margins based on your hashing power or hash rate and any pool fees you may incur. Based the mining hardware inputs provided, 0.00081181 Bitcoin can be mined per day with a Bitcoin mining hashrate of 112.00 TH/s, a block reward of 6.25 BTC, and a Bitcoin difficulty of 17,345,948,872,516.00. After deducting mining power costs and mining fees, the final daily Bitcoin mining profit is $0.00 Bitcoin to USD. The answer for is Bitcoin mining worth it is dependant on a lot of factors. In this post we will cover what Bitcoin mining is exactly and how to determine if it's 5 easy steps to calculate your Bitcoin mining profitability. VERY accurate calculator! ASIC Mining. For miners and enthusiasts though, litecoin holds a much… Litecoin Mining Calculator. This simple but accurate Litecoin mining calculator will allow you to determine how much you can profit from a certain Litecoin miner (for example the Antminer L3+). 1 Litecoin = 47 USD Based the mining hardware inputs provided, 0.05944510 Litecoin can be mined per day with a Litecoin mining hashrate of 2,200,000.00 KH/s, a block reward of 12.5 LTC, and a Litecoin difficulty of 9,306,159.70. After deducting mining power costs and mining fees, the final daily Litecoin mining profit is ($2.16) Litecoin to USD.

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Litecoin vs Bitcoin - No Contest?

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