Tag: cryptocurrency bubble

x42: The Cryptocurrency Gem You Don’t Want To Miss

By Spencer Kellogg | @Spencer_Kellogg

Open. Feeless. Infinite. Those are the three words that greet users of the x42 Protocol, a new cryptocurrency that launched in the late summer months of 2018. In the world of cryptocurrency, manufactured hype and speculation often cloud the true viability of new projects in the nascent marketplace. x42, however, appears to have all the trappings of a strong, working product for innovation and finance.

x42 is a decentralized cryptocurrency that promises zero fees and infinite scalability. The coin can be transferred privately in an instant and the platform itself acts as a creative authoring hub for launching an assortment of applications ranging from indie game developers to large-scale business models. Maintained by the blockchain, x42 provides a flexible entry for entrepreneurs and amateur content producers alike to create, maintain and execute smart contracts and customizable side blockchains.

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A technology based on the Stratis cryptocurrency, x42 smart contracts are written in the common language C# and provide builders with a framework to launch their own blockchain applications and projects. Utilizing the Breeze Wallet, x42 transactions are private and untraceable ensuring anonymity for core community users. The project is growing in interest every day and their Discord channel boasts over one thousand users already.

At this moment, the x42 team is focusing on releasing tiered nodes and an entry-level master node is available by purchasing and holding 1,000 coins in the x42 core wallet. x42 protocol employs Proof of Stake (POS) and rewards users who stake coins in the wallet with a payout every 1-3 days. x42 coins can be purchased at the Start-Ex cryptocurrency exchange.

Unlike many cryptocurrencies that utilized ICO’s during the crypto gold rush of 2017, the x42 team used a traditional launch that included a pre-mine of 25% of their full coin supply (42 million coins). The rest of the coin supply will be printed by the year 2030. This incentivizes users to hold their coins in a wallet and receive staking benefits. Block rewards are 20 coins per block until the block number 550,000 is reached (likely October of 2019) at which time the reward will reduce to 5 coins per block. For more information on coin supply and market cap, check out CoinGecko’s page for x42.

The use cases for x42 are impressive in their diversity. Developers have suggested that the platform can be used to create casual gaming infrastructures like Ethereum’s wildly popular CryptoKitties or to build more sophisticated tech like Maps or Virtual Reality applications. x42 can also be used to uphold contracts via a modeled reputation system or to even remotely control small and large-scale equipment for businesses.

x42’s combination of feeless, private transactions and a smart contract platform that can create and execute decentralized applications make it an interesting project to purchase and hold for the future. The team is active on several social media platforms and they have, so far, achieved every stated goal in a timely and professional manner. With less than 600 followers on Twitter, this is still very much the early stages for the x42 project and a good opportunity for speculators and tech-interested investors alike to join a budding project in its infancy.


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A Recent Spike in Bitcoin Leaves Members of Congress Speechless

By Dane Larsen | @therealdanelars

“As long as the stupid criminals keep using Bitcoin, it’ll be great,” -Michael Conaway (R- TX)

Representative Conaway of Texas’ 11th Congressional District made snide remarks about members of the American cryptocurrency community. Along with his traditionalist GOP and financially unstable Democratic colleagues, he took cheap shots at crypto investors, without giving opportunities for rebuttals.

At a segment of the Committee of Financial Services, the subcommittee of the Monetary Policy and Trade received some backlash from the crypto community. The 115th US Congress was incredibly biased against decentralizing the government in the economic sector during these meetings of the Subcommittee.

“As a medium of exchange, cryptocurrency accomplishes nothing except facilitating narcotics trafficking, terrorism, and tax evasion,” -Brad Sherman (D- CA)

The greatest allure of Cryptocurrency, its anonymity and decentralized nature, is under attack by legislators who seek to regulate currencies like Bitcoin. The House and Senate have already made necessary action forcing members of Congress to “disclose their holdings”, and passed a bill to facilitate exchanges of Bitcoin and other popular cryptocurrencies, in an attempt to stop illegal activity. Some councilmen and women have even been in the works trying to write a proposal flat-out prohibiting the mining and use of Bitcoin.

Predictably, the reaction by the media and elites was to cast doubt over the ability of cryptocurrency users to circumvent the Federal Reserve and current monetary policy practice. To praise people like Conaway for calling out the “criminals” is to go with the mainstream; in other words, the easy way out. Congress would rather clump all investors into this stereotype of the small minority, rather than sympathizing with the crypto investors and looking with a broader approach, at the sheer amount of people who are involved in the community without coming at it from an illegal standpoint. A very large portion of the community is involved to ‘stick it to the man’, not deal drugs or hold prostitution rings. We know this objectification all too well because cryptocurrencies have had a negative stigma since the launch of Bitcoin in January of 2009.

The feeling of detest for Bitcoin is bipartisan in the US House and Senate, yet the wonders of BTC, BCH, LTC, and ETH are global. The market shows many young people are interested in investing in bitcoin and other cryptocurrencies.

An enormous amount of knowledge that the American people know about Bitcoin (considering Litecoin, Etherium, and other cryptocurrencies are about as exotic of words to them as anything), is about the Great Spike in late 2017, when BTC rose to just about $19,000. After that, the people know that has decreased. But after that is where the stories go through two different paths. Most households believed that crypto fizzled out into nothingness until it was a memory: a forgotten commodity.

The extent of crypto knowledge for the average American is about the Great Spike of late 2017, and it’s eventual fall from grace. When BTC rose to $19,096.64 in late last year, then falling down thousands of dollars in a matter of days. The general public thinks Bitcoin is dead. However, this couldn’t be more wrong. Bitcoin is alive and well, showing signs of promise and great potential for the coming months to end off 2018. Bitcoin is up $2,324.52 since last month, reaching $8,200. Whether it was just a leap in public interest, or the word spreading about crypto, the price of Bitcoin is rising at a steady rate.

Since the Subcommittee of Monetary Policy and Trade, and the rise of Bitcoin, no Representative who called out or talked bad about the crypto market and/or community has made any public briefing admitting their fault or apologizing. Although expected, we can all sit back, disappointed at the disconnect from the D.C. members of Congress and the American public.


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No, Cryptocurrency Is Not “Quietly Dying Out”

By Mason Mohon | @mohonofficial

On Sunday, Russia Today posted an article titled “Is the cryptocurrency market quietly dying out?”, which was full of nothing more than explanations of recent cryptocurrency events along with market declines.

The article merely discusses recent market trends but uses a loaded editorialized headline to make it seem like crypto is dying. The recent decline and widespread burns are quite the opposite, though. The market is organic, and consumers have to take responsibility and learn for themselves.
Those who were scammed or bought Bitcoin at $19,000 may be too depressed to ever buy cryptocurrency again, but if they are wise they will see it as a learning experience. People who have been burned will now use a skeptical eye when looking towards any potential investments.
The failure of the cryptos with “broken blockchains” is just creative destruction at work. They couldn’t serve the consumers, so a better and safer technology is coming to take their place.
A decline in the price of popular currencies is not the end of an era. It is a learning opportunity, so take advantage of it and use it as such.
Note: This is not investment advice.

BIT CON: Bitcoin Tre & The Collapse of Bitconnect

By Spencer Kellogg | USA

When I first got started with Bitcoin in September of 2016 one of the first faces that I became familiar with was not Roger Ver or Charlie Lee but instead an Instagram famous, quirky black kid with dreads named Bitcoin Tre. In a world teeming with short white tech-obsessed geeks, Tre stood out like a stray asteroid that had barreled into an obtuse outer region of another galaxy. Sometimes Bitcoin Tre, (AKA The Black Logan Paul) would post pictures of his little kid or the girl that he was with but most of the time he just streamed updates about cryptocurrency to his Instagram. He seemed like he had made it and he made you think you could too. A year later, he is now persona non grata in the crypto community and investors far and wide have spent the better portion of the past week penning their own sob stories about the houses, wives and savings lost on the ugliest scam of 2018, his scam, the collapse of Bitconnect.

In 2016, we were all still on Poloniex and Tre would point his camera at the slate-colored charts to explain his strategies or show newcomers what it looked like to participate in the exploding world of online crypto trading. For beginners like me, Tre came off as a benevolent guy who was ready to help make you rich. By the beginning of 2017, Tre could be seen daily promoting high-interest returns on BTC loans through a project called Bitconnect. Whether out of an innate skepticism or because I was overwhelmed by the hundreds of other cryptocurrencies to research, I never did look up Bitconnect. When it launched into the Top 20 of CoinMarketCap this Fall (Bitconnect CoinMarketCap) I felt sick to my stomach. Bitconnect? That thing that Tre was always shilling, the project that had scam written all over it, had hit pay dirt and I didn’t own one of them! Only two months later, after the closure of Bitconnect (Bitconnect Ponzi Scheme), Tre’s close ties as chief promoter of the maligned project has made him the center of critique and anger throughout the community.

At its heart, Bitconnect was a lending platform that allowed passive income by providing Bitcoin loans through the Bitconnect platform. A user could send their Bitcoin to the Bitconnect platform, make a trade for Bitconnect tokens (BCC) and then lend out those tokens to other users at an interest rate of more than 40% a day over the first two years of operation. Tre gloated regularly about his returns but for most of us, something never quite added up. By the time Carlos Matos snorted a mountain of cocaine and dropped his worst Steve Ballmer impression on the cryptocommunity (BITCONNNECCTTT), the writing was clearly on the wall for any reasoned investor. At its height, Bitconnect garnered a $2.5 Billion market cap and an ever-increasing amount of scrutiny with many users in the cryptocommunity warning newcomers of the platform and roundly calling for its delisting from CoinMarketCap.com. After American securities regulators sent cease and desist letters to Bitconnect in early January, the market was sent spiraling and within a week the valuation of the service had dropped dramatically to less than $150 Million sending investors and speculators into a feeding frenzy of blame and anger that sat Bitcoin Tre front and center.

A cursory glance at Tre’s output (Bitcoin Tre Youtube) will tell you most of what you need to know about Tre: he doesn’t know what the hell he’s talking about. His stylized youtube channel mixed with his singular personality in the Bitcoin world is reminiscent of other hype men like Michael Suppo “Suppoman” (Suppoman Youtube). As a result, for as long as I’ve followed Tre, he has been dogged by claims that he is a scammer by some while others simply poke fun at his hyperbolic and constant uploads of crypto hype thinly disguised as analysis. When the bottom fell out, many in the community pointed their vitriol directly at the man who could be seen every day pumping up speculators on the Bitconnect project. In his rambling, crazed, “final rant” on Bitconnect (TRE BITCONNECT RANT), Tre stumbles his way, awkwardly looking out the window, through a half-assed non-apology to the people who followed his advice and invested tens of thousands of dollars into his pet hype project only to see their money burnt to a crisp in a span of less than 72 hours. Some have given Tre the benefit of the doubt but I find it hard to believe this is one simple little mistake. For example, in the video information from the above link, you can see Tre promoting another alleged scam with a link to the lending platform Davor which has been routinely called out on Twitter in recent weeks for its shady dealings.

I still remember the first days I spent using Circle App to try and exchange USD for BTC. In those days, Bitcoin Tre was one of the first on-ramps, socially, that I knew of in the mysterious world of crypto. Even then, before he became a 24/7 Bitconnect shill, there were detractors and ‘haters’ who would flood the comment section of Tre’s videos with accusations of cons and scams. As a noob, it was difficult to tell the truth from fiction and Tre himself had suggested that he was being blacklisted and attacked because of racial and social differences in the majority whitewashed cryptocommunity. While the community is defiantly white ivy league types, I knew his appeal was a falsity. As the infamous Ben Shapiro quote reads “Capitalism only care about one color – green” and Bitcoin Tre’s appeal to SJW tendencies did little to quiet the skeptics. In the world of high-risk anyone can become a millionaire. While dreams are made every day, more suckers are born every minute. Crypto con men lure new investors and speculators into the dim alleys of crypto while receiving kickbacks and dark bounties for promoting projects that stalwart crypto investors wouldn’t touch if it was given away.  In a space that is littered with false promises and moon projections, new investors should be wary of those who seek to take advantage of their hard earned money with promises of glory. Before you buy your next asset, recognize that people like Bitcoin Tre are piranhas that swim in the muddy waters of the crypto boom and you’re their next target.

 

 

The Free Market of Cryptocurrency is Under Attack

By Ryan Lau | USA

Last week, after a hard-fought legal battle in both the House and Senate, the Republican tax bill passed by a narrow majority. Since then, conservatives claiming to advocate for a smaller government have touted the move as a political success, and the biggest tax reform in decades. Though it does reduce some personal and corporate income taxes, the bill is in fact incredibly disturbing on a much different ground. In fact, the very people who claim to be calling for a reduction in government size have just taken a major step in killing the future of cryptocurrency. This tax bill, in its reclassification of the 1031 Exchange law, has in fact done more to extirpate any trace of legal economic freedom than any bill since the Affordable Care Act.

What is the 1031 Exchange, and why is it important? Essentially, this measure, an important part of our tax code, allows for investors to defer capital gains taxes, in the event that an investor is selling a property with the direct goal of purchasing a new one. This has been widely used by house flippers and cryptocurrency traders alike. However, the tax bill has removed cryptocurrency from the list of acceptable 1031 references. Though the IRS has classified cryptocurrency as a taxable capital gain since 2014, it previously was only taxable when exchanging large amounts of it for fiat currency. Hence, reinvesting and exchanging between cryptocurrencies was treated as a 1031 exemption, though this is no longer true. Now, the IRS has permission to tax any and all exchanges between cryptocurrencies, which is an attack on individual liberty and economic freedom.

What does this mean for the future of cryptocurrency? Though small investors will not be significantly impacted due to the simple fact that capital gains tax has a minimum threshold, the impact of larger investments is astronomical. A day trader, who may exchange cryptocurrency multiple times in one single day, he may now find himself subject to a 20% capital gains tax for each exchange. This new implementation will naturally take away some of the perks of trading, reducing the demand for such exchanges. Though investors may still leave their money in one single cryptocurrency for extended periods of time, this action naturally has a smaller maximum profit margin. Even so, the IRS is tight their fists around long-term investments, with a new Senate bill that threatens the future of all cryptocurrencies recently passing.

Though some coins, such as Monero, have greater levels of privacy than others, this ability to hide from the state is quickly shrinking. Action must be taken immediately to protect the rights of cryptocurrency traders, whether it be done through the law or the market. Though investing cryptocurrency in a 401K or Roth-IRA would currently avoid these taxes, these funds have virtually no liquidity, and there are very few, bleak alternatives, such as surrender of citizenship. One should never have to give up their United States citizenship or invest in an offshore account in order to avoid mass theft on personal property, yet with the government’s recent actions, is this fate inevitable? The IRS is concerned with losing out on income, yet forget that they are merely a collective of individuals with no legitimate claim to any individual’s income. This must be recognized, and this bill altered, if we are to protect the rights of the individual.