EOS: Block producers struggle with falling prices

Block producers at EOS are struggling hard with falling prices. Currently, producing EOS blocks is no longer worthwhile. One possible solution, according to a study, would be adjusted inflation.

The current situation in the crypto market is having an impact above all on those who support the networks. In the course of the falling Bitcoin price, several Bitcoin miners switched off their devices. It simply no longer seemed to be profitable enough. Due to a decreasing difficulty and new Bitcoin mining devices, the community got their problem under control again (to some extent). At EOS the situation looks a bit more dicey at the moment.

Study: Bitcoin revolution in trouble

As a recent study found out, the Bitcoin revolution is currently no longer worthwhile. Here is the Bitcoin revolution review. For example, 100 per cent of the EOS block producers surveyed stated that they were no longer in the profitable sector. According to the survey, the break-even point for the EOS block producers was an average EOS exchange rate of four US dollars in November.

One possible solution to these problems is the monetization of services in the EOS network. For example, it is conceivable to charge fees for websites, tools, ads and dApps. One concern of the block producers here, however, is a possible negative feedback from the community.

Solution: dynamic Bitcoin revolution

Since the reward for the block producers is fixed at one percent, a dynamic Bitcoin revolution would also be conceivable, the study continues: https://www.forexaktuell.com/en/bitcoin-revolution-scam/ It would therefore be possible to adjust the reward for the EOS block producers to the respective EOS share price. However, the majority of the block producers surveyed were in favour of the latter option:

“A whole 73 per cent of the block producers surveyed want dynamic inflation. And that despite the fact that they know exactly that they would limit their profits in bull markets with it.

ICOs still in the sights of the US stock exchange supervisory authority

The US Securities and Exchange Commission (SEC) continues to take a close look at the current ICO uncontrolled growth in the cryptoscene and is looking for a way to regulate young startup investments.

With the increase in ICO crowdfunding projects, more and more blockchain experts are concerned that the lack of transparency regarding the issuance of such tokens could pose risks to investors. Reason enough for government regulators to address the issue and look for possible ways to regulate and protect investors. A few days ago, the SEC announced that the ICO Token Sales were at the top of the regulator’s radar.

According to Reuters, the Securities and Exchange Commission is now keeping a watchful eye on the sharp rise in ICOs over the past few weeks.

Due to the virtual and decentralized nature of ICOs, such projects can easily be used for money laundering. This is also a good reason for the SEC to take a closer look at the current situation.

A challenge for the regulators of the Bitcoin secret

The problem for the Bitcoin secret regulators lies in particular in the business field in which the blockchain start-ups operate like this: https://www.geldplus.net/en/bitcoin-secret-review/. In a decentralized ecosystem, there is usually no single instance that can be held responsible for the token sale or for the legally compliant output of the tokens. Regulators can currently only use third parties such as wallet providers or Bitcoin exchanges.

SEC is not sure how to handle blockchain and ICOs.
Although the Securities Act of 1933 and the Securities Exchange Act of 1934 broadly define the scope of all “securities” such as stocks, bonds, futures, swaps, investment contracts and more, there are no regulatory guidelines on how to treat Bitcoin or Blockchain. Therefore, the SEC has decided that companies using blockchain technology to transfer securities must register as stock exchanges or brokers.

Therefore, any blockchain platform that brings buyers and sellers together and exchanges digital assets defined as securities could be required to register.

Fraud & Scam vs. Great Opportunity for Young Cryptosoft Startups

As you can see, it is probably only a matter of time before government agencies like the SEC take the first steps towards regulating cryptosoft ICO token sales. On the one hand, this would help to protect investors who invest arbitrarily in projects that later turn out to be fraud; on the other hand, regulation would probably close the doors to financing for many young block-chain start-ups and nip them in the bud.

Report considers Bitcoin’s anonymity insufficient

A new report by an open source advisory group has now found that Bitcoin users are still facing anonymity issues.

The Open Bitcoin Privacy Project (OBPP) published its study this week. The study is a survey of Bitcoin’s anonymity and privacy in 2016 and identifies vulnerabilities in the ecosystem.

The team consists of developers and scientists from the Bitcoin loophole area

OBPP has previously addressed anonymity and Bitcoin loophole issues and published two issues on the subject in 2015. The new report identifies four key threats that Bitcoin loophole users faced last year. These threats included aggregating co-owner transactions into individual transactions, re-using Bitcoin addresses, tracing a network identity back to specific Bitcoin addresses, and aggregating specific addresses to network activity.

The publication may address a core aspect here based on the Bitcoin. The digital currency provides a pseudonymous, open-access service to send money around the world. For some, financial privacy is the main reason why they have gone digital at all.

Security risks & judicial authorities of the news spy

The report also discusses how security risks can undermine the news spy and what steps need to be taken to mitigate these threats. For example, OBPP recommends the use of the Tor network or similar services. They are designed to route the data through various points around the world to disguise the news spy origin and destination. This is to bypass the fact that an identity is tied to a particular node.

The report appears in the midst of great concerns on the part of governments around the world. Anonymisation skills are a big issue. Last month, judicial authorities, including Interpol and Europol, called for raids on so-called transaction mixers. These tools disguise the origin of transactions before they are linked to other transactions.

In a previous conversation between CoinDesk and OBPP member Kristov Atlas, Atlas said the current status of the ecosystem’s privacy was “pretty bad”. He stressed that the work on wallet anonymity has degenerated over the past two years.

He continued:

“Practical implementations to improve privacy have currently stopped. In general, I would give the industry an insufficient rating.”

From Atlas’ point of view, the reasons for the weak privacy are particularly regulatory reasons, but also technical reasons, which combine to form a “confluence of challenges”.

Leaving out the challenges, Atlas stressed that anonymity should be preferred by companies when they offer tools for Bitcoin.

“I think it’s important to put these privacy concerns on the to-do list of companies and remind them that it’s important and that they haven’t really taken care of it yet,” he said.

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.