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cryptoandblockchaintalk · 6 years ago
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EPISODE 18: Cryptocurrency and the Environment
Cryptocurrency and the Environment
“Bitcoin mining is using up more electricity than the entire country of Ireland.”
  While Ireland’s population is quite small with its less than 4.8 million people, the power consumption of Bitcoin is still often underestimated. It is odd to think that just one cryptocurrency might consume the same amount of energy every year as 6.3 million US households.
  But is it such a crime that the crypto-revolution which is changing the world needs a little juice to get going? Let’s look deeper into the situation.
  Using electricity in, and of, itself is fine. Electricity itself is part of nature; it’s not like Styrofoam, which is created in a contamination-free lab by scientists in white coats. The environmental hazards lie in how electricity is generated.
  Despite it being 2018, there are many countries still using coal and gas in their power plants. A disturbing piece of news really brought attention to the issue, when a decommissioned coal mining plant in Australia was purchased by a Bitcoin mining company, to be reactivated solely to power bitcoin mining equipment. In this light, it seems as if we are moving backward to create a forward-thinking, global currency when we should be concentrating our efforts on keeping our air clean and the ozone layer intact.
  However, there is a significant movement and belief that says we can have cryptocurrency mining and a clean environment, at the same time. According to research conducted at ICObench.com, there are 54 mining companies alone that started in the last 2 years, which boast using renewable clean energy that powers their mining rigs, using either solar, hydrogen, wind power, or a combination of the three.
  A handful of other mining farm startups claim special rate deals from local power plants, but ultimately they will struggle to compete with the rates of solar energy and hydro dams. There is even a project for creating electricity through a magnetic vacuum, which is an interesting innovation by itself. While there is no telling yet if this will work on a large scale, the necessity once again is driving technology forward.
  “Bitcoin is currently using 0.31% of all the world’s electricity.” - The Digiconomist
  Why does Bitcoin need all that energy, when many other coins don’t?
  To create Bitcoins, by far the most valuable currency at this time, you have to use a mining rig, which is a powerful computer that performs calculations of random math problems and submits the result to the blockchain. Every 10 minutes, one of those results will be right and is chosen to receive a block reward (contains a certain number of Bitcoins, which decreases over time), currently, that reward is worth almost $100,000 USD. This method of creating coins is called Proof of Work.
  This has another function though, as well. It keeps your network decentralized, so no one or a small handful of people control it. Proof of Work ensures the validity of transaction better than any other consensus method so far.
  This was an excellent way to do things, in theory, for many years. However, now that industry has got involved, there really are only a small handful of companies with large enough infrastructure to mine the majority of bitcoins. The vast majority of calculations solved per second (known as the network hash rate) is currently controlled by 7 major pools. That’s not at all what a decentralized network looks like, and is not what The Bitcoin Foundation intended.
   Bitcoin is not the only coin consuming tremendous amounts of energy. Ethereum is the next largest coin, around 1/3rd of the size of Bitcoin. Their founder is considering changing the consensus mechanism so no more coins can be mined, and going to a Proof of Stake system, which is extremely more energy-efficient.
  But then there will be another problem – new coins are given based on how many coins people already have. A powerful investor could easily just purchase the majority of the coin (several billions of dollars) and essentially own the entire network.
  As with demand, supply must grow, in parallel. What happens when all of the current renewable energy sources are not enough? Bitcoin miners simply invest in building more renewable energy infrastructure. When new consensus methods are discovered and mining is either obsolete or much more energy-efficient, this surplus renewable energy will then trickle into the rest of the grid, causing fossil-fueled plants to slow, and eventually shut down.
  While currently, the electricity consumption by Bitcoin may be a problem, in the long-term it could very well lead to a much cleaner, more energized, Earth.
  Listen to Crypto and Blockchain Talk for more interesting topics!
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cryptoandblockchaintalk · 6 years ago
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EPISODE 17: ICOs and Regulations: Taming the New Wild West
ICOs and Regulations: Taming the New Wild West
  ICOs - or Initial Coin Offerings - are a widely used method for cryptocurrency startups, and also how some blockchain technology companies raise their initial funds to get their projects started. It is very much like a Kickstarter or GoFundMe, with the “reward” being given in newly created tokens. These tokens can be used on the product or service that is being built, which is referred to as a utility token, or in some cases, held like a stock and entitles the holder to a profit share, which is referred to as a security.
  With an ICO, businesses will usually write a whitepaper which gives all the details about their purpose, ideas, and a roadmap to allow investors (both small and large) to have the information needed to buy into these projects for a fraction of the speculated cost, once the coin hits the open market. These projects, are mostly still in the beginning stages of development.
  That’s right, most have no working product yet, but still ask people to pay them… and people do! By the tens of thousands, or even millions in some cases. ICOs took in over $2 billion dollars in 2017. There are currently over 1500 ICOs that have taken place, with thousands more on the horizon. All on the promise of what might be.
  If that doesn’t sound scary enough, add this factor in - ICOs have been mostly unregulated. Until now.
  Until recently, the industry has not been taken seriously by governments, financial institutions, or most of the general population. But with a market cap today of over $424 billion dollars at the time of writing (May 2018), it is now just beginning to get the attention it warrants.
  While many have gotten rich beyond their wildest expectations, others have been defrauded, robbed, and scammed. For even a discerning mind, it can be difficult to tell the difference when taking in a project at first glance. As 2018 moves forward, governments around the world are taking notice and passing laws they feel best protects their people. There are many concerns:
  Fraud, is the first, and most obvious, concern. China and South Korea have both banned ICOs. The United States has launched several SEC investigations, and is considering whether it can claim crypto coins are securities (which can only be sold by licensed individuals/institutions).
  Ponzi/Pyramid schemes have been a big problem also. USI-Tech and Bitconnect are two of the largest successful scams to date, taking in hundreds of millions of dollars, on false pretenses, only to shut down (or be shut down by the government).
  A substantial amount of money is now leaving the traditional investment sector, to a place where it can vanish and never be recovered if a company goes under. For money to leave the country in the past, a wire transfer had to be created, which was recorded and monitored, and took a long time to complete. A cryptocurrency transaction can move any amount of money around the world in just a moment, with or without a trace (depending on which currency is used).
  Price fixing is an issue as well, with many coins being mineable (created), using computer hardware performing work. It is considered a “pump and dump” technique, to create and flood the market with supply at will, to control the price.
  Some cryptocurrencies are untraceable and private, so governments are worried they will be used for money laundering for criminals, and avenues that can be used to fund terrorism.
  It is important to mention in context, that all of the above activities still existed and thrived long before cryptocurrency ever came around. Even though automobiles are used by bank robbers to make their escape, not every car on the planet is used by a criminal. Hopefully, the same logic will prevail.
  Despite all the calamity, why are ICOs still growing in popularity? Because it gives people a chance to make an investment. The minimum investment into a wall-street IPO is tens of thousands of dollars. Many offerings are restricted to accredited investors only. The common person isn’t permitted or endowed enough to participate at the most profitable stages in traditional finance. Cryptocurrencies and blockchain companies are built and financed by the common person, united to build something that makes the world a better place. On social media channels and community sites like Telegram, you can see thousands of loyal (sometimes rabid) followers and investors who believe in their project of choice, and back it like their favorite sports team.
  Legal Standing in 2018
  China - ICOs are banned 100%. The Chinese companies who completed their ICOs were instructed to refund all the money they received. The government has also banned crypto exchanges and may be soon blocking all sites related to the cryptocurrency industry entirely.
  European Union - ICOs are regulated, as of November 13th, 2017. An ICO must adhere to Anti-Money Laundering and “Know Your Customer” policies. Investments cannot be anonymous, and full personal disclosure must be made by investors.
  United States - ICOs are heavily regulated. ICOs are required to obtain a license, and register with the SEC. Many who have not considered their own token to be a security have not registered yet, and are fearful the SEC will come after them. Anti-Money Laundering and Know Your Customer procedures are required. There is more regulation to come from currently ongoing investigations.
  Canada - ICOs are regulated. Depending on the type of coin, it may be classified as a security, and is subject to government regulation. Canada looks at each project on a case by case basis, rather than one sweeping law that rules everything related.
  Switzerland - ICOs are treated with supportive regulation! Laws are friendly, and help protect cryptocurrency companies against suffocating regulations from other countries. They go through each ICO to weed out the potential fraud and poorly designed projects, leaving behind a good promising ICO market.
  Israel - ICOs are allowed, though a study is being conducted to decide how to regulate these operations in the future. There are plans to introduce tax laws on ICO tokens.
  Germany - ICOs are regulated. Germany warns the public that investments in these projects are risky. Germany defers to the November 13th, 2017 European Securities Market instruction to comply to securities standards.
  Japan - ICOs are allowed, but regulation is on the horizon. Japan is considering whether ICOs could fall under the Payment Services Act, or Financial Instruments and Exchange Act. In 2016, Japan declared Bitcoin a legal currency, a monumental achievement for the crypto community!
  Russia - ICOs are allowed. The government is currently watching things unfold while it determines what stance to take. In October 2017, it issued a ruling that requires all altcoin (a blanket term for any cryptocurrency besides Bitcoin) miners to register, and tax laws will be modified.
  Singapore - ICOs are allowed. Regulation seems to be coming soon, as the Monetary Authority stated in November 2017, that altcoins could qualify as a “capital market product” and be subject to existing regulations for other products in that industry.
  United Kingdom - ICOs are allowed. The government has issued warnings to investors about the risks of investing in these products, calling them “experimental”. Regulation could be coming soon, but there are no clear indicators of what the attitude will be.
  Brazil - ICOs are regulated. Virtual currency exchanges are banned. ICOs are considered securities and are subject to all applicable laws.
  Australia - ICOs are regulated. Australia looks to weed out scams and fraudulent ICOs, promoting the remaining ICOs as free from fraud.
  United Arab Emirates - ICOs are allowed. The UAE plans to pass regulation at some point in the near future.
  Taiwan - ICOs are allowed. The Taiwanese government is supportive of blockchain technology and cryptocurrency.
  While ongoing legislation is underway, the crypto market experiences extreme volatility and has nearly unimaginable dips and peaks, when fears about unfavorable rules or country-wide bans occur. In February 2018, the market overall value dropped more than 60% from January highs, as China passed its law banning cryptocurrencies and exchanges. As of mid-April 2018, it has since recovered the majority of that loss, (much of that growth happening in a 2 week span). It is a scary place to be a day trader, but those who hold for the future are always optimistic.
  With so much happening so fast, it can get confusing very quickly. In some places, the rules hurt ICOs. In some places, the rules help ICOs. In some places, the rules apply only to the ICO but not the actual coin and company itself. In some places, the rules apply to the entire industry regardless of the product. It is safe to expect that as time goes on, only more laws (and taxes) will be implemented. Some may see this as a good thing, paving the way for financial institutions and the general public to feel safe participating in the financial revolution, boosting the portfolios of everyone else who got in early. Others feel these rules are burdening and suffocating a decentralized worldwide market, prohibiting natural growth. In any event, there are many more changes to come in the next few years. It’s an exciting time to be alive.
  But before we leave, let’s have a look at Venezuela’s new country-backed cryptocurrencies, the Petro.
  Listen to Crypto and Blockchain Talk for more interesting topics!
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cryptoandblockchaintalk · 6 years ago
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ICO INSIGHT: BitLearn Network
ICO INSIGHT: BitLearn Network
We at Crypto and Blockchain Talk interviewed Fred Jin, CEO of BitLearn, who develops a new learning ecosystem with his team, which will tokenize college savings, capture skills acquired onto the blockchain, and empowers the best educators.
  They plan to make games educational with engaging kids who spend time on gaming and to provide them quality educational content.
  Best content from educators
Engage kids and award them
Help parents with insights.
Giving skills that are needed in private sector.
  Helping kids who struggle with homework and parents who might not know how to help them. BitLearn awards the students with tokens for their college fund. Learning quest instead of homework. Local schools are engaged.
  The most asked question for ICO Insight followers is how is blockchain implemented? In BitLearn:
Tokens are embedded inside of it.
Kids get experience and parents claim award, set up savings plan.
  There is already a teacher portal available with beta users. They can upload their learning sequence into their game format. They started for K8 and K12 classes, but plan for higher education and corporate learning. BitLearn launches in the U.S. first and hits worldwide market later.
  When is ICO coming out? It’s a simple reward token so people get rewarded when downloading the app and solving puzzles so there will be no traditional ICO.
  What is the revenue model? Small percentage premium fee is charged from parents and gives additional parental control features. Reward kids through good activities, earning and taking ownership with good financial literacy features built in.
  BitLearn challenges kids to take ownership of their own learning progress. To spread the joy of learning. A lot of top educational content is broken into small bite size like learning sessions that are 2 to 5 minute long games. Education is a core element of the BitLearn platform. BitLearn is using blockchain technology and Making You Smarter.
  Public beta coming soon. To signup, please visit http://bitlearn.network
Crypto and Blockchain Talk
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cryptoandblockchaintalk · 6 years ago
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Crypto And Blockchain Talk
#Russia has been considering a new national #cryptocurrency called the #CryptoRuble. #Vladimir #Putin has been quoted as saying it is a project that will help circumvent western sanctions and bring additional #cash flow into the country. Listen to this episode to find out how: http://cryptoandblockchaintalk.com/episode-14-crypto-is-going-country
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cryptoandblockchaintalk · 6 years ago
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EPISODE 14: Crypto is Going Country
Crypto is Going Country
  Currency is a major form of economic control and stability. So while it may seem like an already saturated marketplace is only going to get worse, everyone will not agree to use Bitcoin as the worldwide currency any time soon.
As countries evolve their currencies, this may lead to future dialogues about backing standards, what digital currencies represent, and might eventually create a more stable global economy. There is no telling if the distribution of digital wealth will change ratios along with it, or how this will affect poverty. These are issues world leaders must face when deciding on what to do with this emerging technology.
  This episode of Crypto and Blockchain Talk is talking about how cryptocurrency is used in such counties like Venezuela, Tunisia, Senegal, Sweden, Estonia, China, Russia, Japan, Israel, Dubai, Switzerland and Kyrgystan
  So, stay tuned, things are just starting to get interesting!
  Do plenty of research and due diligence before you decide to invest in something, for instance, do not confuse PetroDollar for Petro.
  What is the Petro?  
In early 2018, the South American country of Venezuela became the first country to declare a cryptocurrency as their primary currency (Japan acknowledges Bitcoin as a legal currency, but the Yen is still their primary). The former primary currency of Venezuela, the Bolivar, is under record-setting inflation, to the point that people were paying for things with trash bags full of money which are being valued by their weight, rather than the numbers that are on the currency – in other words, the money is being weighed out in bags. There are even people who are crafting handbags out of the worthless banknotes for a living, as this is a better use of the devalued currency. Starving, destitute citizens have turned to Bitcoin mining to make a living. At first, the government outlawed the practice, but as the grave situation worsened, they realized this might be the one thing to infuse money into their broken economy.
  The government decided to launch an ICO, pre-mining the entire 2.7 billion coins itself, and then selling a large stake of it to private investors, many of which included foreign governments themselves. China is one of the 133 countries that have expressed their intention to invest in Petro, which has received 200,927 offers of purchase intention, for an initial amount of 5,025,181,787.54 US dollars.
  The name “Petro” is significant. Each Petro coin is backed by Venezuela’s massive oil reserves, said to equal 5 billion barrels. Each coin is said to be worth the price of a barrel of oil, currently around $60 USD. The government itself is now preparing to set up 9,000 crypto mining machines.
  On February 20th, 2018, the Venezuelan government released the first public offering for Petro coins. However, just 38.4 million coins were made available to the public to purchase. Furthermore, it is not found on any currency exchanges, but ones hosted within the country. The whitepaper for the ICO suggests that this is an ERC-20 token, but other reports say it is running on the NEM blockchain.
  It remains a massive struggle for citizens in Venezuela, and it is not clear yet whether this move into the crypto world will be enough to rescue its failed economy. Amidst cries of “scam” and “worthless” from Western-based analysts and politicians throughout the world, there is still hope that not all is lost. In this bleak situation, mercy from other ends of the world (through private crypto investments and infusions into Venezuela, and into the Petro) may be the only act of grace left for this struggling nation to hope for.
  The Petro is being hailed as a means of salvation to the Venezuelan economy and the citizens of Venezuela. However, this is not an isolated case of a country embracing cryptocurrency as a national working currency. There are several countries, both rich and poor, excited to participate in this revolution.
  Tunisia
In 2015, which already seems like an eternity ago, Tunisia used blockchain technology to create the eDinar, a digital version of their current money. You can use this coin to pay bills and make money transfers. The blockchain also is used to manage identification documents.
  Senegal
The government of Senegal collaborated with local banks to produce its own coin, the CFA Franc. It is tied to the fiat currency of the nation, yet also compatible with neighboring currencies. This is a fantastic way of stabilizing purchasing power of not just a country, but an entire region.
  Sweden
The central bank of Sweden, Riksbank, is working on the creation of the eKrona. However, when the public was surveyed about the project, it received only 10% support from citizens. The majority of the people had heard of Bitcoin, but only 2% had used it.
  Estonia
Estonia is extremely blockchain friendly, using that technology in several levels of government, for example, their entire healthcare system is on blockchain. The release of Estcoin seems to be on the horizon, but as a member of the European Union, Estonia is legally obligated to use the Euro as its national currency, and needs to decide how to assign value to an Estcoin, if it decides to move forward.
  China
China is exploring options to not just create a digital currency, but eliminate their paper currency altogether. This has been ongoing for several years, with no official plan yet in place. Though it may explain the ban on Bitcoin a little more clearly, as they do not want the market to decide the plan for them.
  Russia
Russia has been considering a new national cryptocurrency called the CryptoRuble. It has been rumored since 2015, but it looks like it may actually come to life around 2019. Vladimir Putin has been quoted as saying it is a project that will help circumvent western sanctions and bring additional cash flow into the country.
  Japan
J-Coin is scheduled to launch in 2020, valued 1:1 with the Yen. The project is spearheaded by a consortium of Japanese banks, rather than the government. Japan already recognizes Bitcoin as legal currency and many stores accept it.
  Israel
  Looking into possibility of launching its own digital currency, the digital shekel. It’s a project still being mulled over by both the government and The Bank of Israel. Until they figure out how to put the technology to use, no decision will be made to move forward. But it seems inevitable, as they believe it will help prevent tax evasion if every transaction is done on a mobile phone wallet. It appears to be just a question of when, not if.
  Dubai
EmCash is a government-backed blockchain-based currency being created by Emcredit and Object Tech, which will serve the residents of UAE. Object Tech has also been contracted to create blockchain-based digital passports for UAE citizens as well.
    Switzerland
In Switzerland, the country is looking into state-backed “e-franc” had has commissioned reports on the risks and opportunities associated with launching such a cryptocurrency. Switzerland is one of the few European countries which don’t use the Euro and all transactions are still undertaken using the Swiss franc.
  Kyrgyzstan
A plan for a currency backed by gold reserves, called GoldenRock, is under development. The government hopes to raise somewhere in the neighborhood of $40,000,000 USD from this token sale. The funds raised will be used for investment in agriculture.
  Besides the country cryptocurrency projects mentioned above, there are also several other coins in existence which are tethered to just national pride, meaning more than official government issuance or recognition, such as the Maplecoin in Canada, and the IrishCoin in Ireland.
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