Our review of „The Block“ – The Blockchain-Event in Hannover

Yesterday the online magazine t3n and the blockchain consultancy PEY organized a blockchain event in Hannover – with success. We from BTC-ECHO were also there as media partners and would like to tell you about the highlights of the Blockchain meeting.

In contrast to most other Blockchain conferences, the audience consisted of people who were very familiar with Blockchain for the most part. Accordingly, after a short introduction, it was possible to get right into the subject.

Blockchain from the news spy

Andrei Martchouk made the first serve by talking about https://www.geldplus.net/en/the-news-spy-review/ the progress or not progress in the blockchain adaptation. Despite all efforts and billions, he does not expect quick blockchain implementations at the banks. Not necessarily because of a lack of the news spy competence, but out of a conflict of interest not to abolish himself.His explanation about the transformation of the securitisation of assets was particularly interesting. To this day, as the name securitisation already suggests, this is primarily linked to paper documents – regardless of whether it is a bond or a motor vehicle registration document. With the help of the blockchain, however, it is now possible to record these values and identities via the blockchain. For the first time, values that previously had to be documented in paper form can now be digitized without a physical document.

Digital identities on the Bitcoin secret

Besides ICOs, the topic of digital identities was one of the focal topics on https://www.forexaktuell.com/en/bitcoin-secret-scam/, so that Jolocom’s speakers Joachim Lohkamp and Blockchain Helix’s Oliver Naegele also discussed this blockchain application case in detail. During their presentations it became clear what enormous potential lies behind the idea of digitally verifying identities via a Bitcoin secret blockchain and, if necessary, managing them without companies and institutions. Particularly in developing countries, where securitisations, proofs of identity and documentation are generally subject to major deficits, the blockchain can fully unfold its socio-economic explosive power.

Corresponding to the digital identities, Smart Contratcs were also explained catchily by Fabian Vogelsteller, the developer of the Ethereum Wallet and the Dung Browser. He also created a differentiated outlook on the opportunities and hurdles of blockchain and smart contracts. All speakers agreed that blockchain technology is still in its infancy and that it is above all the interfaces to the analogue world that make blockchain implementation anything but easy.

ICOs in a nutshell
One topic that cannot be avoided these days is the topic of ICOs. The need for information on ICOs and how to analyze them was enormous on the part of the participants. The lecture „What is an ICO and how to evaluate ICOs“ by Dr. Shermin Voshmgir was followed by the audience with corresponding curiosity. Mrs. Voshmgir explained the pitfalls of ICOs objectively and gave the participants valuable information. Among other things, she stressed that one should pay attention to how many tokens are issued by the development team and to what extent the development team has an influence on the tokens in circulation and thus also on the course.

Voshgmir denied the audience’s question as to whether good marketing alone would be sufficient to successfully conduct an ICO. Without a competent development team with an appropriate reputation, it would be difficult to gain the necessary trust from the investors. Nevertheless, she could not deny that a lot of „stupid money“ is currently flowing into the crypto currency markets and that most ICO investors do not know what they would invest in.

The current Bitcoin price movement in two words

Asset AllocationThe Bitcoin price has risen again following PayPal’s good news regarding its partnerships with the three largest Bitcoin payment processors, but has lost around 50% in value since the beginning of the year.

Everyone is currently looking for answers to why the Bitcoin rate fell so sharply from its 1,100 US dollar high in December 2013. If you ignore some specific information, you can wrap the reasoning in just two words:

Portfolio Structuring as in cryptosoft

To put it simply, there are simply more interesting investments since the Bitcoin price has started to fall continuously from a relative high in June and July. The following chart shows the cryptosoft Bitcoin price since its high compared to other forms of investment:

btc price

As you can see, the S&P 500 (orange), the Dow 30 (yellow) and the US dollar (red) have clearly outperformed the Bitcoin since June. The money always flows where it can multiply. In addition, sales are increasingly accompanied by sales and a so-called feedback loop is formed. Since the Bitcoin continues to fall, sales will continue to increase, especially among traders and miners.

The prevailing opinion is: „Why should I hold something if it’s worth less tomorrow? This attitude will also remain until there are the right hedges, e.g. through derivatives, or the Bitcoin price slowly returns to a long-term upward trend.

USD vs Bitcoin
The following chart shows the 5-year course of the US dollar exchange rate. As you can see, the US dollar is currently reaching a new high:

btc price 2

The US dollar has left Bitcoin clearly behind since June and July and there are various reasons for the strong US dollar. Among other things:

The end of the quantitative easing (QE) on the part of the federal reserve in October and rising interest rates.

The perception of a crypto trader

Money which increasingly flows from European countries to the crypto trader. Should the US dollar lose wind again, this would be good for Bitcoin. A look into the future. If there is a correction in the equity market, the money will flow out of the equities and look for other asset classes. So the money could then flow into weaker assets such as crypto trader Bitcoin, commodities and growth markets.

Some members of the Bitcoin community have speculated that the Alibaba IPO could be the reason for the fall in prices. But this can also be seen positively, because those who bought their shares for 68 US dollars will probably sell them again when the 32% have made a profit and are looking for new investment opportunities.

On Wall Street, there’s an old rule:

„Shares do not rise in value if demand does not outstrip supply. Demand is measured in volume and therefore volume must precede price“.

Rising volumes and prices generally produce news. If you look at the downward trend to the end, you should also look at the volume. If the volume rises with the price due to good news, a cumulation is also usually to be observed.

If you look at the seasonality of the Bitcoin, the Bitcoin price started to rise last year at the beginning of October, maybe that is a pattern we will see this year.

How do I get Litecoin Cash at Hard Fork?

In the evening hours of 18 February a Litecoin Hard Fork is to take place. The controversial project is called „Litecoin Cash“ and is supposed to split off from Litecoin with block 1,371,111.

How should one behave in the next days?

A few days ago BTC-ECHO already reported: After Ethereum and Bitcoin there will be a Litecoin Hard Fork now. Charlie Lee has been very hostile to it and even spoke of a scam:

„The Litecoin team and I don’t do a Litecoin fork. Any fork that claims otherwise is a scam that tries to confuse you through the Litecoin association. Don’t fall for it and don’t give your private keys to a website or a client. Be careful!“

As mentioned in the linked article, the accusation „Scam“ is somewhat exaggerated, since any development team is free to change and „fork“ the code of an open source crypto currency. The amount of Bitcoin forks shows that it did not harm Bitcoin.

However, you can understand the accusation „Scam“ a bit, after all, the people behind Litecoin Cash don’t allow themselves to be completely looked into the cards, despite all transparency: Only the first names of the developers are known, the desktop wallets will be released on February 18th or 19th and the Github account is currently empty.

Whether it is a scam or not – the own Litecoin stock is not endangered by the fork. So you can keep calm in any case, Litecoin Cash does not endanger Litecoin any more than the different Bitcoin Forks did with Bitcoin.

How do I get Litecoin Cash?

The question of how to get Litecoin Cash came up more and more. Even if one can hope that Coinbase or a used Exchange Litecoin Holder will initiate a distribution of the LCC tokens, the best way – as always – is to hold the coins in one’s own wallet. By own wallet we mean those wallets that give the user knowledge about the Private Keys or about seeds that generate the Private Keys. The motto „Be your own bank“ also applies here!

If you want to participate in the crypto revolution or at least have a guaranteed claim to coins after a hard fork, you can’t get past the private key. At least for the time of the Hard Fork Litecoin has to be used on a wallet, which gives the user access to the Private Keys.