This Week in Bitcoin: $8 Billion BTC Trust and Maximalists Misbehaving

This Week in Bitcoin: $8 Billion BTC Trust and Maximalists Misbehaving

This Week in Bitcoin: $8 Billion BTC Trust and Maximalists Misbehaving

This Week in Bitcoin is your roundup of the prime talking points from across the cryptosphere. From the major news to the minor debates that erupted into huge arguments, we’ve captured the flavor of the frenetic soup that is Bitcoin and all that simmers in it. In this edition, the deadline for the $8 billion Tulip Trust looms closer and bitcoin maximalists are caught behaving badly.

Also read: Accused Onecoin Co-Conspirators Fight Criminal Charges in the US

Monday: $8 Billion BTC and Post-Fork Fixes

On Monday, September 9, we led with the story of the Tulip Trust, which is due to deliver $8 billion in BTC to Craig Wright in less than three weeks. Supposedly. We also covered the SEC approving a bitcoin futures fund, and the new IRS tax form targeting crypto owners in Monday’s regulatory round-up.

Also on Monday, in the wake of Ethereum’s Constantinople hard fork, researcher Antoine Le Calvez showed how thousands of dapps failed due to the changes made to smart contracts, which caused them to run out of gas. He noted how even crypto exchanges were affected, with Gemini unable to “sweep user deposits into its hot wallet after the fork, each attempt resulting in an out-of-gas error.” The Ethereum ecosystem suffered another blow on December 9 when a different researcher explained how a well-funded attacker could “turn $20M into $340M in 15 seconds” by exploiting the Makerdao contract.

On crypto Twitter, a debate broke out over Bitcoin’s lack of privacy. Business-owner Jason Smith explained his reservations with paying overseas staff in BTC, confessing: “I became frustrated with how open Bitcoin is. It exposes way more than one wants to the staff. That lead me to consider the improbability of the world adopting a financial tool that doesn’t afford business decent levels of privacy.” Ironically, Smith was formerly opposed to privacy coins, before undergoing a volte-face and paying his overseas employees in zcash.

Tuesday: Blockstream Alienates Everyone

On December 10, Blockstream caught flak after its plans to raise $50M by issuing a BTSE exchange token were leaked. The revelation that Blockstream was projecting an increase in revenue of 3,700% for 2020 to justify the token sale forced Samson Mow onto the defensive, a position he’s occupied on crypto Twitter for weeks, as the company’s beleaguered CSO has poured fuel on fires that were of his own making. As Cobra Bitcoin put it, “Liquid is just Blockstream’s platform for scam token issuance as a service. And how exactly does an exchange forecast going from $2M in revenue in 2019 to $100M+ in 2020?” The BTSE row was to rumble on all week, with Samson Mow and Adam Back digging themselves deeper into the hole they had constructed.

This Week in Bitcoin: $8 Billion BTC Trust and Maximalists Misbehaving

Elsewhere, in The War on Cash, Marty Bent highlighted tough new laws in Greece and Italy effectively criminalizing the use of cash, opining: “The governments of these countries are herding their citizens into the digital panopticon that is the current global financial system so that they can milk them for all of that sweet sweet tax money.” In related news, we covered Italians’ love of cash and growing appreciation for crypto. And in unrelated news, Ross Ulbricht had a stab at predicting when bitcoin’s next all-time high will occur.

Wednesday: Jack Tries Some Blue Sky Thinking

On December 11, Twitter CEO Jack Dorsey got the cryptosphere all of a stir when he revealed Blue Sky, a “small independent team of up to five open source architects, engineers, and designers to develop an open and decentralized standard for social media,” funded by Twitter. “It would be incredible for the future of free speech and censor-resistant information to see a decentralized twitter protocol with various clients and front-ends built atop that standard,” enthused Messari’s Ryan Selkis.

Jack Dorsey

“A tech CEO that understands Bitcoin and decentralized social networks,” tweeted Blockstack’s Muneeb. “Facebook is trying to start Libra. My guess is Jack will prefer to extend existing open crypto networks instead.”

Thursday: Bitcoin Maximalists Bust out the Banhammer

Crypto is full of contradictions, with one of the greatest being the glee with which certain proponents of censorship-resistant money will censor their opponents’ opinions. We’re looking at you, bitcoin maxis, with your high follower count and low tolerance for dissenting voices. The loss of Crypto Deleted, a Twitter account that screenshotted the foolish tweets hastily purged by members of the cryptorati, was led by Jameson Lopp.

Critics of the circle-jerking maximalists, including Romano, were quick to point out their hypocrisy. “Imagine writing a blog post that ultimately led to mass reporting and suspending an account that you didn’t agree with. And then imagine celebrating it – as a cypherpunk nonetheless,” chipped in Larry Cermak.

Friday: Tether Time

Friday 13th was to prove unlucky for Tether, which found itself on the receiving end of yet another legal brief from the New York Attorney General. “If these allegations are true Bitfinex/Tether’s chances in this case should be toast,” tweeted ‘lex node’ who broke down the filing for those who couldn’t face trawling through the full document. Others demurred, however, asserting that the NYAG’s latest doc contained nothing new.

Friday was a bad day for crypto regulatory news: BTC payments platform Bottle Pay revealed it was shutting down due to impending KYC/AML regulations, writing:

To maintain our integrity as service providers, and to protect the interests of our team, investors and users, we have taken the painful decision to shut Bottle Pay down completely rather than become subject to these new regulations.

Meanwhile, over on crypto Twitter, bitcoin maximalists finished the week the way they’d started it: by acting hypocritically and getting called out for it. This time it was Peter McCormack’s turn to get grief for his double standards and general sycophancy.

Finally, in real news, Dutch banking giant ING declared it was developing a crypto custody service, and the European Central Bank’s Christine Lagarde outlined her plans to keep the ECB “ahead of the curve” when it comes to digital currency and stablecoins.

Popular on News.Bitcoin.com This Week

What stories caught your attention this week? Let us know in the comments section below.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

Kai Sedgwick

Kai’s been manipulating words for a living since 2009 and bought his first bitcoin at $12. It’s long gone. He’s previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.

Quadrigacx Founder Dead or Alive? Request for Exhumation and Autopsy Filed

Quadrigacx Founder Dead or Alive? Request for Exhumation and Autopsy Filed

Quadrigacx Founder Dead or Alive? Request for Exhumation and Autopsy Filed

It has been a year since the founder of now-defunct crypto exchange Quadrigacx supposedly died in India. However, some 76,000 victims are still out of millions of dollars. A court-appointed lawyer representing them has now requested an exhumation and post-mortem autopsy in Canada of the dead body, highlighting the need to know if Gerald Cotten is in fact deceased.

Also read: Regulatory Roundup – Bitcoin Futures Fund Approved, India’s RBI-Backed Digital Currency

Exhumation and Post-Mortem Autopsy

Law firm Miller Thomson has sent a letter to the Royal Canadian Mounted Police regarding Gerald Cotten, the late founder and CEO of bankrupt Quadrigacx crypto exchange. The firm was appointed by the Supreme Court of Nova Scotia as representative counsel on behalf of users affected by the shutdown of the exchange. In its letter dated Dec. 13, the law firm wrote:

The purpose of this letter is to request, on behalf of the affected users, that the Royal Canadian Mounted Police (the ‘RCMP’), conduct an exhumation and post-mortem autopsy on the body of Gerald Cotten.

The letter explains that the aim of the request is “to confirm both its identity and the cause of death given the questionable circumstances surrounding Mr. Cotten’s death and the significant losses of affected users.”

Quadrigacx Founder Dead or Alive? Request for Exhumation and Autopsy Filed

Along with the letter, the law firm sent some background material to the police consisting of publicly available information on the history of the exchange, the supposedly dead founder, and other related materials. The firm emphasized:

In our view, further highlight the need for certainty around the question of whether Mr. Cotten is in fact deceased … Representative counsel respectfully requests that this process be completed by Spring of 2020, given decomposition concerns.

Suspicious Circumstances

Since the reported death of Cotten in December 2018 due to complications relating to Crohn’s disease while on honeymoon with his wife in Jaipur, India, there has been much speculation about what actually happened. Many people believe that the 30-year-old is not dead as circumstantial evidence continues to rack up against him. A Vanity Fair article published on Nov. 22 points out a number of theories and evidence surrounding the case, including the exchange’s co-founder, Michael Patryn, turning out to be a convicted fraudster.

Quadrigacx Founder Dead or Alive? Request for Exhumation and Autopsy Filed
Gerald Cotten, supposedly dead founder of bankrupt Quadrigacx crypto exchange

Cotten’s death was announced a month after he presumably died while his exchange continued to accept customer funds. The private hospital in India misspelled his name and the doctor later said that they were not sure about the diagnosis. By the time his death was made public, about 76,000 individuals could not access their funds totaling approximately $190 million. Cotten was also supposedly the only person with the private keys to the exchange’s cold wallets. However, court-appointed monitor Ernst & Young and several blockchain investigators found that the exchange’s crypto wallets were empty, and some funds were transferred to Cotten’s personal accounts or other exchanges. The company began bankruptcy proceedings in Nova Scotia in April, which were moved to Toronto earlier this year.

Both Canada’s tax authorities and the U.S. Federal Bureau of Investigation (FBI) are investigating Quadrigacx. On June 2, the FBI posted a notice on its website seeking victims in the investigation. Some people interviewed by the RCMP and the FBI said they got the impression that the agencies believe that Cotten might not be dead, explained the Vanity Fair article. One of the witnesses questioned by both agencies said:

They asked me about 20 times if he was alive … They always end our conversations with that question.

Do you think Gerald Cotten is alive? What do you think happened with Quadrigacx? Let us know in the comments section below.


Images courtesy of Shutterstock and Global News.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

Tags in this story
Bitcoin

,

BTC

,

Canada

,

Death

,

evidence

,

Exchange

,

Exit Scam

,

FBI

,

Gerald Cotten

,

India

,

Nova Scotia

,

Ponzi Scheme

,

Quadriga

,

QuadrigaCX

,

Scam

,

Victims

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.





Christmas Comes Early for Bitcoin.com Games Players

Christmas Comes Early for Bitcoin.com Games Players

Christmas Comes Early for Bitcoin.com Games Players

Bitcoin.com’s very own online gaming platform has a special promotion for the holiday season. Each day for the next 12 days, the players ranking in the top 10 places on the Stars leaderboard will be eligible to participate in a daily Christmas raffle. Players can win gift cards from Adidas, Columbia, Footlocker, Delta, and other major brands.

Also Read: Nexo Now Offers Bitcoin Cash Instant Crypto Credit Lines

Bitcoin.com Games Launches Special Promotion for Holiday Season

Christmas has come early for Bitcoin.com Games users. The online casino has launched a cool new promo where during 12 consecutive days the casino will give away daily prizes. The Christmas Raffle is part of the popular Stars Leaderboard promotion.

Players can now enter the Stars promotion by playing the platform’s exclusive games – Slots, Roulette and Keno – or by wagering on any of the slots available on the site. A separate leaderboard is available for players using bitcoin core (BTC) and for those who prefer playing with bitcoin cash (BCH). Both leaderboards are running with a weekly prize pool of $1,000 up for grabs. Prizes will be credited in BTC or BCH respectively.

Top 10 players on the promotions’ leaderboard are automatically entered into the daily Christmas Raffles. The raffles are held at midnight every day from Dec. 14 to Dec. 25. Lucky winners will get gift cards from Adidas, Columbia, Footlocker, Delta and other major brands valued up to $300.

Bitcoin Games is a secure platform that offers absolute transparency. The site allows users to enjoy the games anonymously. At the same time, players are offered two-factor authentication, password-protected accounts, and a dedicated customer support team to ensure a smooth gaming experience. Bitcoin Games offers a mobile app for Android devices so players can play all the available casino games on the go – even while waiting in line to finish the Christmas shopping checkout.

Join the Stars Leaderboard promotion now and pick up extra presents in the Christmas Raffle! Check out the promotion pages for Bitcoin Games and Bitcoin Cash Games for the full terms and conditions that apply to the offer.

Christmas Comes Early for Bitcoin.com Games Players

Bitcoin.com’s online gaming platform has recently been releasing a whole range of new games, thanks to successful partnerships with leading companies in the industry. More than 50 new options have been added to the roster since early October, with even more on the way.

The recently released games have been developed by popular providers from the online gaming industry such as Bgaming, Belatra, and Mr. Slotty. Many of the new options are based on game mechanics from that very popular casino attraction — the slot machine. The platform also offers a diverse range of other fun-to-play games and even has a stylized minesweeper for players to wager on.

What do you think about the new holiday promotion by Bitcoin.com Games? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com.

Avi Mizrahi

Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.

The Country With Europe’s Highest Interest Rate Has Cut It 5 Times This Year

The Country With Europe's Highest Interest Rate Has Cut It 5 Times This Year

The Country With Europe’s Highest Interest Rate Has Cut It 5 Times This Year

Around half of European countries, over 20, now have 0% interest rates and a few are already in negative territory. Ukraine, which has the highest benchmark interest rate on the continent, has just reduced it again, for the fifth time this year. The race between central banks to cut rates, when there is inflation, has made it costly to keep fiat money in a bank account or under the mattress.

Also read: European Banks Struggle With Low Interest Rates and Strict Regulations

Ukraine Slashes Interest Rate by 2 Percentage Points

There are over 40 countries in Europe but only half of them nowadays have their interest rates above 0%, and just a few come close to Ukraine’s high rates. But the Eastern European nation, which has also been facing high inflation amid political turmoil, economic crisis and an unresolved military conflict, has reduced its benchmark rate five times this year.

The Country With Europe's Highest Interest Rate Has Cut It 5 Times This Year

This past Thursday, the National Bank of Ukraine (NBU) slashed its key interest rate again, from 15.5% to 13.5%, which is its lowest level in two years. As Reuters and local media noted, the decision has been motivated by Ukraine’s inflation that is slowing faster than expected, to 5.1% year-on-year last month, a strengthening hryvnia, and prospects of new loans.

Kiev reached a provisional agreement with the International Monetary Fund (IMF) on Saturday. But a new deal, expected in the first months of 2020, will depend on the progress of important reforms. For example, the IMF wants to make sure the government gets its money back from bailed out banks and ban the return of failed institutions that have been nationalized to their previous owners, as in the case with Ukraine’s largest lender, Privatbank.

Ukraine has maintained double-digit interest rates since 2014, when protests led to a change of the government administration in Kiev, followed by Crimea’s annexation by Russia, and the eruption of a bitter conflict with pro-Russian separatists in the country’s Eastern regions of Donetsk and Lugansk. Only a couple of countries in Europe come close to Ukraine’s interest rate figures, like Turkey with 12% and Belarus at 9%.

The Country With Europe's Highest Interest Rate Has Cut It 5 Times This Year

Europe’s Low Interest Rate Pandemic

Nations such as Sweden, Switzerland and Denmark are at the other end of the spectrum. Sweden’s key interest rate is currently at -0.25% but there have been reports of even lower rates imposed by Swedish banks on euro accounts, -0.40%. The other two countries have their interest rates set at -0.75%. Both Switzerland and Denmark have kept them below zero since early 2015 and they are currently at their record lows. None of the three countries belongs to Europe’s single currency area.

According to the Trading Economics website, 21 European countries currently have 0% policy rates and the majority of them, including the region’s largest economies, are members of the Eurozone. The benchmark refinancing rate in the monetary union reached its all-time low in March 2016 and has remained there. The main deposit rate, at which banks leave money at the ECB, was cut to a record low of -0.5% in September. During its Dec. 12 policy meeting, the European Central Bank (ECB) left its key rates and stimulus measures unchanged. They are likely to remain so or be slashed even further until inflation moves closer to the 2% target.

Most of these countries have a positive inflation rate, however, which averages 1% in the euro area and 1.1% for the whole European Union. In Sweden the annual inflation rate increased to 1.8% in November, from 1.6% the previous month and above market expectations of 1.7%. This means the citizens of the majority of European nations are losing on their savings every day, regardless of how they store their funds, in a bank account, in a safe deposit box, or at home.

The Country With Europe's Highest Interest Rate Has Cut It 5 Times This Year
BCH, 1-year inflation rate and price.

Inflation goes hand in hand with fiat money and attempts to stimulate the economy through quantitative easing and interest rate cutting is the recipe of choice for most governments nowadays. Decentralized cryptocurrencies, on the other hand, come with a limited supply. By design, bitcoin’s inflation rate follows a steady long-term downward trend.

A quick look at the Bitcoin.com Charts shows that the BCH inflation rate has been hovering around 3.74% in the last month and that of BTC has negligibly increased from 3.85% in early November to 3.89% now. At the same time, the growing crypto banking industry offers interest rates that are quite higher than what you’d get in the fiat world. For example, the global financial services platform Cred lets you earn up to 10% on your BTC and BCH holdings. And let’s not forget that the prices of cryptocurrencies can increase as well.

Do you think the interest rate cutting spiral is going to end in the foreseeable future? Share your expectations and thoughts on the subject in the comments section below.


Images courtesy of Shutterstock, Bitcoin.com.


Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card.

Tags in this story
banks

,

BCH

,

Bitcoin

,

BTC

,

Central Bank

,

crypto

,

crypto banking

,

Cryptocurrencies

,

Cut

,

Denmark

,

ECB

,

EU

,

Europe

,

european

,

holdings

,

IMF

,

inflation

,

Inflation Rates

,

Interest

,

interest rates

,

limited supply

,

nbu

,

Savings

,

Sweden

,

Switzerland

,

Ukraine

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Bulgaria, which sometimes finds itself at the forefront of advances it cannot easily afford. Quoting Hitchens, he says: ”Being a writer is what I am, rather than what I do.“ International politics and economics are two other sources of inspiration.

2019’s Bitcoin Miners Are 5x Faster Than Predecessors

2019's Bitcoin Miners Are 5x Faster Than Predecessors

2019’s Bitcoin Miners Are 5x Faster Than Predecessors

High-powered bitcoin miners and next-generation semiconductors go hand in hand and as process node technology grows, SHA256 hashrate follows. Coinshares’ recent bi-annual mining report highlights that newly introduced mining rigs have “as much as 5x the hashrate per unit as their generational predecessors.” Advanced chip technology has grown relentlessly and it’s significantly bolstered ASIC device manufacturing. Moreover, news from the International Electron Devices Meeting (IEDM) held on December 7-11 shows that the semiconductor industry is moving beyond the 7nm, 5nm, and 3nm processes and expects to design 2nm, and 1.4 nm chips by 2029.

Also Read: Lightning Network Wiki Page Faces Removal for Lack of Notability

2019’s Bitcoin Mining Rigs Produce Far More Hashrate Than Last Year’s Models

As far as the bitcoin mining industry is concerned, the ASIC device manufacturing industry is growing fast. Today’s devices produce far more hashrate than the mining rigs produced years ago and a number of them produce far more hashpower than last year’s models. Coinshares Research published a report this week that highlights how today’s mining rigs have “5x the hashrate per unit” compared to the earlier-generation units produced. News.Bitcoin.com covered the rising hashrates per unit from devices sold in 2018 and the hashrate increase in 2019 has been exponential. For instance, in 2017-2018 many mining rigs shifted from the 16nm semiconductor standard to the lower 12nm, 10nm and 7nm processes. On December 27, 2018, top bitcoin mining machines produced an average of 44 terahash per second (TH/s). Top 2018 machines included the Ebang Ebit E11+ (44TH/s), Innosilicon’s Terminator 2 (25TH/s), Bitmain’s Antminer S15 (28TH/s) and the Microbt Whatsminer M10 (33TH/s).

2019's Bitcoin Miners Are 5x Faster Than Predecessors
Two of the top producing bitcoin miners manufactured in 2019.

In December 2019, a number of mining devices now produce 50TH/s to 73TH/s. There are high-powered mining rigs like Bitmain’s Antminer S17+ (73TH/s), and the S17 50TH/s-53TH/s models. Innosilicon has Terminator 3, which claims to produce 52TH/s and 2800W of power off the wall. Then there’s rigs like the Strongu STU-U8 Pro (60TH/s), Microbt Whatsminer M20S (68TH/s) and Bitmain’s Antminer T17+ (64TH/s). At today’s prices and an electrical cost of roughly $0.12 per kilowatt-hour (kWh), all of these high powered mining devices are profiting if they mine the SHA256 networks BTC or BCH. At the end of the Coinshares Research mining report, the study discusses many of the next-generation miners available, alongside older machines being sold on secondary markets or still being used today. The report covers machine logistics and prices from manufacturers like Bitfury, Bitmain, Canaan and Ebang. Each mining product is given an “Assumption Rating Strength from 0 – 10,” the report notes.

2019's Bitcoin Miners Are 5x Faster Than Predecessors
On December 27, 2018, top bitcoin mining machines produced an average of 44 terahash per second and today’s models produce upwards of 50-73TH/s.

While Bitcoin Miners Leverage 7nm to 12nm Chips, Semiconductor Manufacturers Have a Roadmap for 2nm and 1.4nm Processes

In addition to the notable performance increase with 2019 mining rigs compared to models produced last year, the semiconductor industry’s recent IEDM event shows ASIC miners will likely continue to improve as the years continue. The five-day conference underlined the growth of 7nm, 5nm, and 3nm processes within the industry, but more innovation is on the way. Slides from Intel, one of the top semiconductor manufacturers in the world, indicates the company plans to accelerate its 10nm and 7nm processes and expects to have a 1.4nm node by 2029. This week saw the first mention of the 1.4nm infrastructure in an Intel slide and anandtech.com says the node would “be the equivalent of 12 silicon atoms across.” The IEDM event slideshow from Intel also shows a 5nm node for 2023 and a 2nm node within the 2029 timeframe as well.

2019's Bitcoin Miners Are 5x Faster Than Predecessors
Participants at the International Electron Devices Meeting (IEDM) held on December 7-11 saw Intel’s first mention of the 1.4nm infrastructure.

Right now the ASIC mining rigs produced by manufacturers like Bitmain, Canaan, Ebang, and Microbt mostly leverage 12nm, 10nm, and 7nm chips. The 2019 units that utilize these chips are producing upwards of 50TH/s to 73TH/s per unit. This means as 5nm and 3nm processes fortify in the next two years, mining devices should improve a great deal as well. It’s hard to conceptualize how fast mining rigs packed with 2nm and 1.4 nm chips will perform, but they will likely be significantly faster than today’s machines.

2019's Bitcoin Miners Are 5x Faster Than Predecessors
Do you own high-powered mining hardware? If so, connect it to our powerful Bitcoin.com mining pool today.

Moreover, the majority of mining companies are using chip processes by the Taiwan Semiconductor Manufacturing Company (TSMC). The Taiwan semiconductor foundry plans to accelerate processes just like Intel and it’s possible that TSMC might be ahead of the game in that regard. Despite which semiconductor firm creates better chips faster, the improvements within the chip industry as a whole will most definitely bolster bitcoin mining rigs being built over the next two decades.

What do you think about the growth of high powered bitcoin mining rigs between 2018 and 2019? What do you think about the improvement of 7nm, 5nm, 3nm processes and the possibility of 2nm, and 1.4nm chips by 2029? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, Wiki Commons, Fair Use, Bitmain, Innosilicon, and Pixabay.


Did you know you can earn BTC and BCH through Bitcoin Mining? If you already own hardware, connect it to our powerful Bitcoin mining pool. If not, you can easily get started through one of our flexible Bitcoin cloud mining contracts.

Tags in this story
1.4nm Processes

,

2nm

,

3nm

,

5nm

,

5x the hashrate

,

7 nm chips

,

7nm

,

ASIC

,

BCH

,

Bitcoin mining

,

Bitmain

,

BTC

,

Canaan

,

chips

,

Coinshares

,

Ebang

,

Hashpower

,

Hashrate

,

Innosilicon

,

Intel

,

Microbt

,

mining

,

Mining Devices

,

Mining Power

,

Semiconductors

,

SHA256

,

Terahash

,

TSMC

,

TSMC 7nm

Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

If you bought synthetix (SNX) this time last year, you don’t need to read these words. You’re already rich after your moon bag lived up to its billing and pulled a 50x. Despite the era of undiscovered gems tapering off in 2018, there’s still a handful of tokens that achieve the impossible each year, making their holders ridiculously rich. Seele, synthetix, and link were among this year’s biggest winners. Which tokens will be next to 50x in 2020?

Also read: Lightning Network Wiki Page Faces Removal for Lack of Notability

Digging for for Diamonds in the Dirt

Glancing at this year’s best performing coins, as recorded by Coincodex, you could be forgiven for thinking astute investors were all presently sunning themselves on tropical islands, purchased with the proceeds from their ETM, with its 700 million percent gains.

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?
Most of the coins depicted here have no liquidity, and thus their percentage gains are meaningless.

The reality, of course, is less glamorous: there were few buy-and-hold winning trades this year, and the coins that proved profitable had actual tradable volume, unlike En-Tan-Mo and Dragonvein with their sick percentage gains but $0 market cap.

Filter Coincodex’s year-to-date (YTD) returns for the top 200 assets and the picture becomes clearer. Top of the heap, with an impressive 3,417% return, is seele, whose YTD chart looks like this:

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

Zoom out to when seele was issued the year before, however, and its chart looks like this:

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

As Bruce Wayne’s butler, Alfred, mused in The Dark Knight Rises: “There is a prison in a more ancient part of the world. A pit where men are thrown to suffer and die. But sometimes a man rises from the darkness. Sometimes the pit sends something back.” In 2019, the pit of dead ICO tokens threw something back in the form of seele, which got market made to the max on Huobi, resulting in the most impressive YTD gains of any top 200 asset. To misquote Vitalik Buterin, “Congrats on this Seele. Seriously.”

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?
Alfred in “The Dark Knight Rises”

If You Bought ‘Molecular Future’ This Year, Take a Bow

Aside from seele’s rocket ride from ignominity to the moon, a handful of other tokens recorded triple or quadruple percentage gains in 2019 – and some were even achieved on the basis of fundamentals, rather than exchange-related jiggery pokery. Molecular future (MOF) is something of a mystery, but it was pumped hard on Okex, resulting in a price of $1.58 per token and a YTD gain of 3,280%. Impressive.

In third place comes defi favorite synthetix (SNX), perhaps this year’s overall winner given that its trajectory hasn’t been reliant on any single exchange. For a token that started the year at $0.03 and is currently trading for $1.27, SNX must down as one of this year’s best buys – and with the decentralized derivatives platform now the second largest defi protocol, with $170M locked into its ecosystem, Synthetix would appear to have a promising future. Just don’t count on it doing another 50x next year.

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

Other tokens that have had a very good 2019 include Constellation’s DAG, up 720%, and chainlink, up 600%. After that, the quality and gains of the top performing coins diminishes sharply. Whatever next year’s market brings, be it bull or bear, a handful of coins are likely to pull a seele and go 50x. But which? Picking 2-3 winners out of 3,500 tokens is a shot in the dark that’s almost certain to fail. That didn’t stop news.Bitcoin.com from polling a number of traders and industry insiders on next year’s likeliest to succeed coins. Here are their picks.

Arweave

If any project has a chance of emulating Seele and going from obscurity to mainstream awareness long after its token sale has concluded, it might just be Arweave. Its token sale ended in June 2018 and the AR token has yet to reach a major exchange – Bilaxy is as good as it gets. Despite this, the Arweave mainnet has been up and running since the start of the year, and its team intensively shipping code, organizing hackathons and raising awareness of its permaweb for archiving information, from websites to tweets.

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

In November, Arweave revealed it had secured funding from a16z crypto, Union Square Ventures, and Multicoin Capital, who have taken tokens as part of their stake in the project. Arweave appears to be that rare thing: a blockchain project solving a genuine problem – namely broken links and disappearing web content. It’s got the team, the VC backing, and the infrastructure in place. Now all Arweave needs is some liquidity for its AR token for beautiful things to happen.

Kleros

Justice as a Service project Kleros also had a busy year, rolling out useful products such as a generalized token curated registry (TCR). This enables anyone to create their own list of vetted vendors, merchants, products, services or places, with crowd wisdom used to gauge the validity of each entry. From rating restaurants to darknet marketplaces, the potential uses for Kleros’ TCR are vast.

Searching for Synthetix: Which Token Will Be Next Year’s 50x Winner?

That alone won’t cause the value of its PNK token to rocket, but other developments might. Kleros, which was singled out for praise by Vitalik Buterin this year, is currently building out Proof of Humanity with Democracy Earth, a process for establishing identity without relying on central authorities. Perhaps more importantly, from an investor perspective, Kleros is selling the second tranche of its tokens in January, setting PNK up nicely for a year of price discovery.

Elrond

As a Binance IEO, Elrond needs no introduction – even if most of those who’ve traded it have no idea what the project actually does. It’s a high speed interoperable blockchain basically – nothing new there, admittedly. However, Elrond does have a couple of things in its favor: for one thing, ERD is a low sat coin (currently trading for 28 sats), and for another its mainnet is about to launch. Coupled with the Binance factor, it seems reasonable to predict price appreciation for ERD next year. Not 50x, but 2x perhaps, and in the current climate, that’s a respectable return.

Pegnet and Nyzo

The final two tips for 2020 come courtesy of a professional 4chan shiller who, in keeping with the site’s ethos, would prefer to remain anonymous. His moon bags for 2020 include Nyzo, a collaborative verification project that uses a queueing system instead of PoW or PoS, and Pegnet (PEG), an open source, mineable stablecoin network which is currently only available on Citex exchange.

The odds of any of the tokens mentioned here pulling a 50x next year are vanishingly small, yet that won’t stop a small band of believers from trying their luck with these and hundreds of other mid- and microcap coins. One of them’s got to come in, right?

Which tokens do you expect to do well next year? Let us know in the comments section below.

Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

Kai Sedgwick

Kai’s been manipulating words for a living since 2009 and bought his first bitcoin at $12. It’s long gone. He’s previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.

Lightning Network Wiki Page Faces Removal for Lack of Notability

Lightning Network Wiki Page Faces Removal for Lack of Notability

Lightning Network Wiki Page Faces Removal for Lack of Notability

A slew of Wikipedia editors would like to delete the Lightning Network (LN) Wiki page because the subject matter does not hold notability. Wikipedia editors use notability as a test to find out if a topic warrants its own article. The LN article debate on Wikipedia is still raging as a few editors believe the subject is “dredging for mainstream press coverage” while highlighting that the article does not have reliable third-party sources.

Also Read: Mainstream Investment Vehicles Tied to Cryptocurrencies Grow Exponentially

Lightning Network Wiki Article Questioned for Notability and Sourced Content

The controversial LN scaling solution for BTC is being discussed on Wikipedia because a group of Wiki editors would like to delete the Lightning Network article for lack of notability. The discussion among Wikipedia contributors shows there’s a disagreement about the validity of the LN article. “There is a problem with notability of the subject: the citations in the article refers to self-published texts that are not acceptable for notability,” explains the editor Ladislav Mecir. “Other sources found also do not qualify as significant coverage by sources independent on the subject,” Mecir added. A few people came to the LN article’s defense and said that they think that the LN page “is sufficiently notable for WP.” “It’s fair to say that it’s one of the most important initiatives in the Bitcoin ecosystem and seems to be the only viable path for Bitcoin,” Wiki contributor ‘Jimd’ wrote.

Lightning Network Wiki Page Faces Removal for Lack of Notability

Another editor who wants to pull the entire subject from Wikipedia said he finds it difficult to take any press coverage of the LN project seriously. He further said that the ‘Bob and Carol’ explanation within the article is a better example but “still laughable.” “I’d prefer to get rid of the whole lot — Ultimately it looks like many people are having the wool pulled over their eyes by a few crooks who claim the impossible — There’s no reason for Wikipedia to get involved at all.”

Another contributor said that the subject may be best suited for a broader article on consensus-less decentralized payment systems. The editor further added that the LN project would be near the bottom of the list as the project is not “Bitcoin-specific but could be used with a multitude of systems.” During the LN article deletion debate, an editor named ‘Jtbobwaysf’ said that [Wikipedia] doesn’t “remove old dead subjects.” “They are useful from a historic perspective — Also think your suggestion of a broader article would be nice, maybe we can do that when there are some other similar networks on Ethereum, etc.,” Jtbobwaysf wrote. “Or maybe they will later all be referred to as Lightning if that becomes the common name.”

Lightning Network Wiki Page Faces Removal for Lack of Notability

Greg Maxwell: ‘LN Article Has a Fringe Chance of Removal’

After this comment, Bitcoin Core and Blockstream developer Greg Maxwell stepped into the conversation. Maxwell is well known for contributing to Wikipedia but some Wiki contributors have called him an editor who “regularly makes personal attacks.” Maxwell believes the LN article should be kept and told Jtbobwaysf that “Lightning is very much not dead.”

“My only point there was that effort debating the boundary of cryptocurrency notability would be better spent on things that weren’t close to obvious keeps,” Maxwell remarked.

Lightning Network Wiki Page Faces Removal for Lack of Notability

The debate continued with a few more editors throwing in their two cents about the LN article on Wikipedia. It seems a good portion of the contributors believe the sources used in the article were not up to standards. Throughout most of the commentary, there were issues about the validity of sourced content. Besides the source problem, an editor named ‘Kjerish’ believes that the LN subject “has enough notability as a data structure alone.” “The subject potentially applies to several chains (not just Bitcoin),” the editor added. After the news spread about Wikipedia editors discussing deleting the LN page, a few crypto influencers spoke about the subject on social media.

Lightning Network Wiki Page Faces Removal for Lack of Notability

“Go ahead, delete it,” tweeted Casa CTO Jameson Lopp. “The Wikipedia page for Bitcoin was deleted in July of 2010 and it wasn’t a big deal — It ended up being restored 6 months later.” When someone posted about the subject on r/bitcoin, Greg Maxwell told the creator of the thread not to “spam this sort of thing” on the Reddit forum. “Wikipedia is exceptionally unlikely to remove this article, and in the fringe chance it were removed it would only be merged into some bigger article,” Maxwell stressed. Instead of discussing the subject further the Redditor said: “All right, deleted the post.”

What do you think about the Wikipedia editors who would like to see the Lightning Network article removed for lack of notability? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Twitter, Wikipedia, and Fair Use.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

Tags in this story
BCH Payment Button

,

Beta

,

Beta Software

,

Bitcoin Core

,

BTC

,

BTC Scaling

,

Greg Maxwell

,

Jameson Lopp

,

lightning network

,

ln

,

LN Wiki Article

,

Sources

,

Wiki

,

Wiki Contributors

,

Wiki Editors

,

Wikipedia

Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

Lagarde Sees Demand for Stablecoins, Plans to Put ECB ‘Ahead of the Curve’

Lagarde Sees Demand for Stablecoins, Plans to Put ECB 'Ahead of the Curve'

Lagarde Sees Demand for Stablecoins, Plans to Put ECB ‘Ahead of the Curve’

At her first press conference as head of the European Central Bank (ECB), Christine Lagarde outlined her plans to lead the ECB “ahead of the curve” in the field of digital currency. “There is clearly a demand out there that we have to respond to,” she said, referring to stablecoins.

Also read: Regulatory Roundup – Bitcoin Futures Fund Approved, India’s RBI-Backed Digital Currency

Lagarde’s Plans to Put ECB ‘Ahead of the Curve’

New European Central Bank (ECB) President Christine Lagarde talked about her digital currency plans while explaining other monetary policy decisions at her first news conference as head of the ECB on Thursday. The press conference followed a meeting of policymakers in Frankfurt where the topic of central bank digital currencies was reportedly discussed. In answering questions regarding the Eurosystem’s digital currency, Lagarde said:

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

Regarding stablecoins, she also noted: “we only know of one at the moment but there are others being explored and underway.” While the new ECB chief did not name the stablecoin she was referring to, an ECB Occasional Paper Series report published in August entitled “In search for stability in cryptoassets: are stablecoins the solution?” discusses a number of stablecoins including Facebook’s libra, tether, and nubits.

Lagarde Sees Demand for Stablecoins, Plans to Put ECB 'Ahead of the Curve'

Lagarde also revealed that the ECB has set up a digital currency task force and will accelerate its digital coin efforts, drawing on research by the eurozone’s central banks that have spent resources on studying central bank digital currencies (CBDCs). She proceeded to outline her plans.

“We will identify number one the purpose that we have with that,” the former International Monetary Fund (IMF) chief explained. “Are we trying to reduce cost? Are we trying to cut out the middleman? Are we trying to have inclusive finance at no cost? There’s a whole range of objectives that can be pursued. So I think we will start by doing that.” Next, she elaborated, “we will identify the technicalities of it all, which is not a given, particularly when you talk about the Euro system.” The new ECB president concluded:

I think we’re trying to do that by mid-2020.

Lagarde Sees Demand for Stablecoins, Plans to Put ECB 'Ahead of the Curve'

ECB’s Own Digital Currency

The ECB has also reportedly been looking into the prospect of issuing its own digital currency that would give the holders direct claims on the central bank. Several countries have similarly increased their efforts in this area following the announcement of the Libra project in June by Facebook, which was met with resistance from many regulators. The European Council and the European Commission jointly issued a statement last week stating that “no global ‘stablecoin’ arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.” Furthermore, the ECB indicated last week that it will develop its own digital currency if the private sector cannot make cross-border payments faster and cheaper.

At the aforementioned press conference, Lagarde also talked about the Eurosystem’s existing digital payment frameworks: TIPS (TARGET Instant Payment Settlement) and PEPSI (The Pan European Payment System Initiative). “We have several items that are completely digitalized that are not at the front end, and that the bank’s clients do not perceive as being in operation,” she asserted. “They deliver in digital terms the operations of clearing and settling, sometimes in one single operation,” she added, emphasizing that through these systems, “settlement and clearing are actually taking place instantly.” Noting that some countries are not using the systems, she affirmed that she “will continue to push” for their usage.

Lagarde Sees Demand for Stablecoins, Plans to Put ECB 'Ahead of the Curve'

Progress on Central Bank Digital Currencies

Several countries worldwide have been studying the prospect of introducing their own central bank digital currency, as news.Bitcoin.com previously reported. China, for example, has said several times that it is working on a digital yuan. While the People’s Bank of China (PBOC) said that there is no timetable for issuing one, there are reports that the Chinese government is preparing to test its digital currency.

“I think there is also great interest outside our regional area. I know for instance that Canada, the U.K., other countries way beyond are certainly looking deeply into that to see if it makes sense, what purpose it serves and how we can best deliver on it,” Lagarde said at the Thursday press conference. Bank of England Governor Mark Carney has suggested that a global central bank digital currency might replace the dollar as the international reserve currency one day. Last week, the British Virgin Islands reportedly unveiled some details of its digital currency to be pegged 1:1 against the U.S. dollar for use within the territory.

However, some countries do not see the benefits of issuing their own central bank digital currencies just yet. In the U.S., Federal Reserve Chairman Jerome Powell and Secretary of the Treasury Steven Mnuchin said that they do not see a need to create a digital dollar, at least for the next five years. Nonetheless, the Federal Reserve is studying the costs and benefits of issuing one. The Bank of Japan has recently released a study on the legal impact of such currency but concluded that the bank is not looking to issue one currently. South Korea is another country that is taking a wait-and-see approach.

Do you think Lagarde will be able to lead the ECB ahead of the curve in the crypto space? Let us know in the comments section below.


Images courtesy of Shutterstock and Reuters.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

Tags in this story
Bitcoin

,

BTC

,

CBDC

,

central bank digital currency

,

Christine Lagarde

,

crypto assets

,

Cryptocurrency

,

Digital Currency

,

ECB

,

European Central Bank

,

Eurosystem

,

Eurozone

,

Facebook

,

IMF

,

Libra

,

makerdao

,

nubits

,

President

,

Stablecoins

,

Tether

,

Virtual Currency

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.





24K Casino Adds Ethereum

24K Casino Adds Ethereum

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

We live in an era where the latest technology profoundly shapes our daily lives. The past decade has seen an unprecedented growth in technology that not only revolutionized the online gaming industry but literally turned it on its head.

The technology we’re talking about here is none other than Bitcoin (BTC). When it comes to online casino entertainment in all its forms, 24K Casino, the crypto casino, has been ticking all the right crypto boxes.

With a diverse selection of more than 3,000 browser-based games, 24K Casino is the crypto-casino of the 21st century. It accepts cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The crypto-casino is owned and operated by S.G International, a company registered and licensed in Curacao.

Bitcoin at 24K Casino

Crypto assets like Bitcoin enables the casino gambler to get their cash in and out of 24K Casino at a blistering pace. After a player has registered an account and provided a few personal details such as an email and residential address, they can start depositing and playing in Bitcoin.

BTC is highly-rated among casino patrons. It is not curtailed by geographical boundaries, is cheap, fast, and secure. Crypto-casinos like 24K Casino clears Bitcoin withdrawals in less than one hour.

Banking

You can play direct with crypto or use it as a deposit method allowing you a wider selection of games to play from top tier software providers that are normally restricted in dedicated bitcoin casino sites.

Casino Games

Other than 24K Casino’s large assortment of games (slots, table games, video poker, specialty types), this bitcoin casino boasts a Live Casino as well. This is the next best piece of virtual gameplay that depositors will get to a land-based casino.

24K crypto-casino offers new Bitcoin participants a deposit bonus of up to $2,000 in BTC-related currency, spread across four deposits to play slots. Regular crypto depositors can participate in daily and weekend promotions where they receive complimentary points every time they deposit real cash. Free spins and exclusive bonuses are also on the menu.

Support at 24K crypto-casino can be reached 24/7 through email, online form, live chat, and telephone.

Contact Email Address
casino@24kcasino.com

Supporting Link
https://www.24kcasino.com

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Tags in this story
24K Casino

,

Bitcoin

,

Bitcoin Casino

,

browser-based games

,

BTC

,

Casino

,

crypto

,

Curacao

,

Email

,

Ethereum

,

Gambling

,

Games

,

games.bitcoin.com

,

live chat

,

online form

,

spins

,

technology

,

telephone

Bitcoin.com PR

Bitcoin.com is your premier source for everything Bitcoin-related. We can help you buy bitcoins and choose a bitcoin wallet. You can also read the latest news, or engage with the community on our Bitcoin Forum. Please keep in mind that this is a commercial website that lists wallets, exchanges and other Bitcoin-related companies.

Iran, Hong Kong, India: Failed Protests Point to Need for Crypto-Anarchy ‘Second Realms’

Iran, Hong Kong, India: Failed Protests Point to Need for Crypto-Anarchy ‘Second Realms’

Iran, Hong Kong, India: Failed Protests Point to Need for Crypto-Anarchy ‘Second Realms’

What is the second realm? It’s both an abstract and concrete “place” parallel to here, where temporary autonomous zones (TAZ) provide a chance to escape the burning surveillance spotlight of the state and brutal law enforcement culture, and allow for at least temporary exercises of human rights and freedom. A TAZ may allow for free and private trade of crypto and other goods, use of substances, and freedom of speech unafforded by the state. As governments worldwide crackdown violently on protestors more and more, these decentralized, concrete nodes of freedom become increasingly essential to the true proliferation of liberty in our lifetimes.

Also Read: New Cypherpunk Podcast Debuts Discussing Cryptoanarchy

The Second Realm

Sometimes the best way to defeat one’s enemy is to remain quiet and just do what you want. The protestor shouting in the street and lobbing rocks at riot cops may not be morally amiss, but ultimately a club to the face, pepper spray, jail time or a bullet awaits him. Begging tyrannical governments to please give some more leeway to exercise natural rights ultimately amounts to further empowering the control freaks at the top. After all, how would you feel as a ruler to see hundreds of thousands standing below in the streets, begging and yelping for mere permission to have their rights back? The power dynamic is clear.

Though the exact body count is disputed, a look at what’s happening in Iran with the recent lethal crackdown on gasoline price protestors shows who is ultimately in control. Similarly, protests and demonstrations continue in Hong Kong. Though some semblance of good seems to have been won there, struggle through police brutality and reported protestor violence against Beijing supporters has led to little but another form of slavery-lite. To the ignorant, flag-waving praise of the brutal American regime, complete with continued submission to mob rule, democratic governance. In another example, residents of India in recent months have not been able to access their own bank accounts, though they’ve demonstrated and petitioned persistently.

Protest is typically a first realm strategy. The second realm takes a much more direct approach. We don’t ask, we take what is rightfully ours. The second realm is both abstract and concrete, and its definition varies from place to place. Though nothing is a one-size-fits-all solution in scale or quality for the above listed woes currently plaguing the earth, the second realm focuses on individuals, and what they can do right now to take a little power back for themselves.

Iran, Hong Kong, India: Failed Protests Point to Need for Crypto-Anarchy ‘Second Realms’

Temporary Autonomous Zones

TAZs can be both physical, brick and mortar locations or more virtual and cyber spaces. A TAZ might be a private club, abandoned shipping container, or one’s own inconspicuous house where anarchists meet on weekends. It could be a darknet website, an OTC trading platform, a campground for a weekend, or a moving train car. Though a more conspicuous example, it can also be an event, such as the recent Don’t Comply activists’ illegal feeding and sheltering of the homeless in Dallas, Texas.

Anywhere that is generally out of the purview and attention of the state, or which becomes more of a hassle to investigate and invade than to just let it be, can be a useful TAZ. In the case of the Texas activists, police interference with the legally armed lawbreakers would likely be much more costly both physically and reputationally than simply letting them function in peace. In fact, what the second realm affords is a chance to exercise freedom in the same way that the state does. Backdoor meetings, quiet alliances, and private favors and trades. It cannot be said that top makers and enforcers of the state’s laws are truly beholden to those same rules. They function largely in anarchy. Why not allow good people the same freedom?

Unobtrusive Non-Compliance

Cryptoanarchists Frank Braun and Smuggler have recently released the second episode of their new Cypherpunk Bitstream podcast and go in-depth on the subject of the second realm. A point they repeatedly emphasize is the utility of blending in and remaining outwardly polite — as well as being a ‘non-good’ target for law enforcement. This goes hand-in-hand with maintaining good relationships with those surrounding oneself. Smuggler details:

Give them a story that is not too wrong … Keep a certain mystery, don’t tell everything, but give the plausible and unsuspicious part of what you do … Just be a good neighbor … build relationships, because they’re your allies.

He goes on to detail an episode where law enforcement was snooping around his community, and good relationships with those in the area helped to disincentivize further state interest (presumably in non-violent activities the state deems illegal). Braun and Smuggler note the value of impersonal non-compliance. Give a fake name. Don’t get hot-headed and shout about your right not to give it. Give a real name but refuse a search. Make yourself a “non-threatening” pain in the ass that isn’t worth the state’s time and resources. This can be part of the essence of functioning effectively in the second realm.

Iran, Hong Kong, India: Failed Protests Point to Need for Crypto-Anarchy ‘Second Realms’

Free Trade and Free Association

Second realm strategies don’t have to be illegal. Free and private trade of crypto can be afforded to individuals everywhere via non-KYC, encrypted internet trading platforms and private chats. Whether or not the individuals then choose to report their dealings to a violent agency like the IRS is up to them and only them.

Decentralized exchanges also afford crypto enthusiasts the ability to trade more freely, without jumping through the cumbersome, unethical hoops imposed by a violent, non-individual-self-ownership-respecting state. The second realm affords traders the ability to buy and sell in person, privately. If person A wants to sell a plant like cannabis, and B has the crypto to pay, they might meet in any TAZ and make their transaction with the lowest possible risk of state interference. Also with the lowest risk of attributability. Meeting in a crowded TAZ, in an urban environment for example, makes it harder for law enforcement to pinpoint any “guilty” party associated with the plant matter should they invade.

Iran, Hong Kong, India: Failed Protests Point to Need for Crypto-Anarchy ‘Second Realms’

A Network of TAZ ‘Nodes’

Critics of the second realm strategy might say it’s a fantasy. A kind of libertarian live action role play which ultimately has little effect on the tyranny of the state. But look where centuries of riots and protests have put humanity. The global economic and social situation at present is dire, with blatant abuse of human rights becoming more and more commonplace. One small shipping container facilitating disobedience and freedom for a few people may not seem like much, but multiply this “node” by a thousand, and then a hundred thousand, and that concrete feeling of freedom inspired by direct experience — and the network effect of disempowering the state and its culture via non-participation — becomes clear.

In the same way a decentralized network like Bitcoin has gained value and ubiquity to the point of being virtually unstoppable — and this in parallel, and not in direct opposition to, existing monetary systems — so can “encrypted people” around the world exercise freedom and liberty now, with a little knowledge and awareness, by creating their own second realms.

There is always risk to such disobedience. There is also great personal and societal risk in continuing to comply with anti-human laws and regulations. Each individual must decide what is right for them, of course. That said, a whole decentralized world of tiny nodes would be much freer than the monolithic, centralized violence we experience at present. And like cryptocurrencies, people could pick and choose freely which social nodes and networks they’d like to participate in, instead of being forced into non-consensual relationships, as is the current dysfunctional model under statism.

What are your thoughts on the second realm? Let us know in the comments section below.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock, fair use.


You can now purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a Bitcoin wallet to securely store it, you can download one from us here.

Tags in this story
anarchy

,

Bitcoin

,

bitcoin cash

,

Bitcoin Node

,

Cryptoanarchy

,

Cypherpunk

,

darknet

,

Government

,

Hong Kong Protests

,

India

,

Iran

,

Libertarian

,

Local.bitcoin.com

,

non-compliance

,

OTC

,

Podcast

,

Privacy

,

Regulation

,

Second Realm

,

State Violence

,

TAZ

,

Tor

,

Voluntaryism

Graham Smith

Graham Smith is an American expat living in Japan, and the founder of Voluntary Japan—an initiative dedicated to spreading the philosophies of unschooling, individual self-ownership, and economic freedom in the land of the rising sun.