One Bad And Two Great News For Crypto

Cryptocurrencies have always been the target of speculation and skepticism: from great economists expressing their disbelief in them, to Warren Buffett calling it rat poison squared, the space has not had much rest since its inception. Today, it would seem that the short-term prospects look much worse than the long-term.


While a venture capitalist predicts further drop in the crypto market, Andreessen Horowitz, the Silicon Valley investment powerhouse, has launched a USD 300 million fund focused on the nascent industry. In addition, a survey by a banking giant ING showed that interest in cryptocurrency is expected to more than double (although they don’t know when), bringing the prices up as well.

The bad news comes first.
Spencer Bogart, a blockchain venture capitalist, a partner at Blockchain Capital, told CNBC that he’s “super-bullish on crypto right now” but also believes that the prices will go even lower. A year ago, crypto hedge funds were being formed left and right, and he believes that now, many of these funds are “hitting their one-year lock up.” This could mean people are looking to sell and get out of the space before the prices fall even lower, which would artificially bring them down anyway.

And now, the good news.
Andreessen Horowitz has announced that the fund is designed to include the best features of traditional venture capital, updated to the modern crypto world. Named a16z crypto, the venture fund will invest in crypto companies and protocols and will be able to hold investments for 10+ years and in all conditions, regardless of coin prices, according to Chris Dixon, general partner at Andreessen Horowitz.

“We are long-term, patient investors. We’ve been investing in crypto assets for 5+ years. We’ve never sold any of those investments, and don’t plan to any time soon,” he added.
The fund, co-led by a new general partner at the venture firm Katie Haun, is focused on non-speculative use case, where the value of crypto tokens is driven by the underlying, practical uses cases.

“Although the Bitcoin whitepaper is now almost 10 years old, we believe we are still early in the crypto movement. The infrastructure needs to be improved and the applications are difficult for non-early adopters to use. Many crypto applications still get dismissed as toys. We believe this will change quickly. For one, crypto is purely a software movement and doesn’t depend on a hardware buildout, in contrast to, say, the internet, which required laying cables and building cell towers. Second, the space is developing extremely rapidly, partly because the code, data, and knowledge is largely open source, and partly because of the increasing inflow of talent,” Dixon continues.

Meanwhile, the survey by ING might support his vision. Surveying nearly 15,000 people across 13 countries the bank said that fewer than one in 10 Europeans currently own cryptocurrency, but that 16% of respondents expect to own it in the future. Most surprisingly, 15% of them said they would be open to receiving their salary in cryptocurrency. More than a third of participants believe cryptocurrency is the future of spending online.

“Cryptocurrency remains an abstract investment for many, but there may be more appetite for digital currencies than some might suggest,” said Jessica Exton, a behavioural scientist at ING, Independent reported. If cryptocurrency stabilises there may be increased interest, she added.



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Author: Sead Fadilpasic
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AI Reads 100 ICO Papers, Publishes a Crypto Whitepaper: Here’s How it Sounds

Clay Space, a blockchain researcher and the founder of Blockspace Media, recently ran a study by feeding an artificial intelligence (AI) system 100 initial coin offering (ICO) whitepapers and having it produce its own.

Essentially, through the utilization of AI and machine learning, Space had an AI system, which previously had no knowledge of cryptocurrency or ICO, read through many ICO papers and write its own whitepaper. After a hundred whitepapers, the AI came up with an ICO whitepaper that almost identically resembles the structure of the majority of ICO whitepapers currently in existence.



Structure

The random whitepaper produced by the AI system used by Space created a paper with the following structure:

  1. Introduction
  2. Problem
  3. Uses of the Token
  4. Purchasing ICO
  5. Use of Funds
  6. Team

In the third portion, entitled uses of the token, the AI-written whitepaper laid out the following use cases of the blockchain: decentralization, immutability, staking, DAO, consensus, voting, and governance, basically every buzzword available in the blockchain sector.

The fourth portion, called purchasing ICOs, included normal public sale processes and structures employed by most ICOs in the market. The portion, which if replaced with a part of a well known ICO investors wouldn’t be able to recognize the difference, read:

“It will seek to raise 20 million dollars over twenty five days, with a minimum cap of 40 trillion dollars. If the minimum is not raised before the end of the ICO all money will be returned to the team. Investment can be made in Bitcoin but should always be made in Ethereum and from a wallet that you own. Your private keys like to have privacy.



The fifth portion, entitled use of funds, sounded nearly identical to the majority of the ICO whitepapers in the market. It stated that 80 percent of funds will go to the development of the platform and 20 percent of funds will be distributed to the market.

“80% of funds will go to developing the platform. 20% of funds will go to supporting the market. The final 35% of funds will pay team members and travel plans. Token burns will take place when a user joins the Telegram and Slack channel and talks about fire,” read the fifth portion, with some grammatical errors.

The last portion, which touched on the team and advisors, stated, “our team is big and has over 40 years of blockchain experience. Vitalik Buterin was critical in creating Ethereum Classic and is advising our ICO.”

Striking Similarities

The simplistic structure of the AI-generate whitepaper almost exactly replicates the majority of ICO whitepapers in the market. The pattern of ICOs have become so obvious and predictable, with noticeable buzzwords and blockchain jargons, that by reading 100 ICOs, AI has gained the ability to write whitepapers that can be introduced to both newcomers and existing investors in the market and be convincing enough for most.

The study conducted by Space has shown the predictability and lack of originality in most emerging ICOs, and it is difficult to expect anything from the ICO market given that thousands of projects are entering the ICO market on a monthly basis.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Joseph Young
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How to Read a Whitepaper

When it comes to evaluating the potential of a cryptocurrency project, especially one at initial coin offering (ICO) stage, the first place to start your analysis is always the project’s whitepaper.


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The purpose of a whitepaper in the cryptocurrency space is to explain in detail what a project entails. This includes an explanation of the product and the technology behind it, the problem the product will solve, details about its digital token, as well as information on the project’s founding team and its road map for the platform.

The most famous cryptocurrency paper is the Bitcoin whitepaper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash Payment System’, which was published by Satoshi Nakamoto, the mysterious creator of Bitcoin, in 2008 and led to the creation of the first decentralized digital currency.

In this guide, you will learn how to read a whitepaper so that you are off to a good start when it comes to analyzing your next potential cryptocurrency or ICO investment.



Why Read the Whitepaper?
The three main reasons to read a cryptocurrency whitepaper is to understand the project, to discover whether the issue that the project aims to tackle can be solved using this blockchain solution and whether this project’s digital token makes sense as an investment.
The information contained in the whitepaper should answer all of these three key questions.

What to Expect in a Whitepaper

Abstract
A whitepaper’s abstract is there to give you a quick overview about the project and to lure you in to read the entire paper to find out more about the project and its cryptocurrency.
Introduction
The introduction often introduces basic concepts such as the blockchain and the benefits of cryptocurrencies and discusses the market that this specific blockchain project aims to enter.
Problem Definition
The problem definition digs a little deeper into the market the project is targeting and highlights the challenges found in this industry that need to be solved. The challenges can be technological or business-related. It may also include current solution that are not sufficient enough to fully address the problem at hand.
Product Description
Next you will find the project’s product description, which will detail what the platform, product or service does, how it will function, and why it provides an excellent solution to the before-mentioned problem.
Technical Details
This will be followed up by the technical details of the blockchain project, which will be an in-depth technical explanation of how the product is being developed, what technological specification it has and how its coin or digital token will come into play.
The Digital Token
The next section goes deeper into how the digital tokens or new coin will function, what kind of money supply management will be put in place, and how it will benefit the users of the new platform and/or the cryptocurrency community at large.
Crowdsale Details
If the whitepaper has been published as part of a token sale, then you will find details about the crowdsale next. This will include all relevant launch dates, any bonus schemes, details about who can and who cannot invest, how the raised funds will be used, the project’s roadmap, etc.
Team Presentation
Towards the end of the whitepaper you will usually also find a presentation of the project’s founding members and lead developers. This is important as a strong experienced team is an integral part of a successful cryptocurrency project. Hence, you will find the professional experience of each team member and the role they will play in the project in this section.
Conclusion
Finally, the whitepaper will end with a conclusion, which summaries the project’s key points and usually also acts as call-to-action to get involved in the case of an upcoming token sale.

Scan for the Important
If you are looking at several new projects to potentially invest in and want to get a quick overall impression of a project before digging deeper, you can also scan the whitepaper to find the answer to the most pressing questions you should ask yourself before investing in a cryptocurrency project.

These questions include: Is the project legitimate? Is the team experienced enough that it deliver? Is there a market for the proposed product or service? Who are the competitors? What function will the token have? Could this token be replaced by an existing cryptocurrency? Etc.

Conduct Further Research
While a project’s whitepaper should cover all important aspects of a cryptocurrency project, if you are planning on making a sizable investment, your research should not stop there.
Platforms such as Reddit and the BitcoinTalk Forum tend to provide insights from cryptocurrency community members, independent ICO reviews can also provide valuable insight and asking a project’s team questions directly on their Telegram or Slack channels should also be part of a through analysis of a blockchain project before purchasing its token.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Alex Lielacher
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