Online gambling legislation and regulation. Starting your own gambling product.
Mobile gambling If you plan to develop an app with the ability to deposit and withdraw real money, then such a product automatically falls into the category of gambling and you will need to license your business for successful operation. Mobile and Web Based Apps So let’s talk about the different kinds of online gambling apps available on web and mobile. We’ll be covering both free-play gaming apps and real money casino app games you can find for iOS, Android devices and web browsers. Mobile gambling is more common for poker, casino, bingo, and skill games. They have advantages in terms of a low barrier to enter the market, instant liquidity, product knowledge, and marketing expertise, minimal infrastructure costs, and the ability to bring a brand to the market quickly. Consequently, this form of gambling does not sit neatly with jurisdictional boundaries. Multiple gambling opportunities are available, including betting on various events and markets, in a relatively simple format. Gambling products can also be integrated into betting on television shows or virtual racing and sports games as well as offering lotteries, bingo, poker and casino games. Most Popular Gambling Apps Sports betting, casino, poker and lotteries are the most popular forms of online gambling. However, other forms are available too. These include the following: Bingo, slot machines, different card games, roulette and other game of chance. One of the best things about online gambling and betting apps is the number of choices you have.
Betting means making or accepting a bet on the outcome of a race, competition, or other event or process, the likelihood of anything occurring or not occurring, or whether anything is or is not true. Today most sports betting is done via mobile-friendly sites and apps.
Today most sports betting is done via mobile-friendly sites and apps.
The introduction of live betting for sports like soccer and tennis means that bettors who are sitting inside stadiums watching games can now pick up their mobile devices and find real-time betting value with the best sports gambling apps. This has really unlocked a door to the future of sports gambling and the popularity of online gambling apps.
Many sites offer free poker, where no real money is wagered, although in some cases players can accumulate credits that can be exchanged for prizes. This is the case why people are going to play for real money. There is an ongoing debate over whether poker should be classified as a game of chance or skill. The parameters of legal poker playing are still unclear and differ between jurisdictions. Since you are not gambling with money, I’m pretty sure under the law it’s just a video game for now.
Blackjack is the game of choice to many high-rollers and do you know why? Because blackjack is a challenging, logic and skill-based game where your thinking, strategy, and calculations determine the outcome of the game.
Bingo is one of the most popular and socially accepted games in the world. Bingo is a traditional form of gambling that has seen considerable innovation in recent years. It is also the only form of gambling recognized in the Gambling Act that does not have a specific statutory definition, the Act providing simply that “bingo” means “any version of that game, irrespective of by what name it is described”. Bingo must be played as an equal chance game. For game to be classed as “bingo” it must meet the Act’s definition of “equal chance gaming” (as opposed to casino gaming). Thus, it: must not involve playing or staking against a bank, and must be a game in which the chances are equally favorable to all participants in the sense that each ticket or chance has the same probability of success as any other. Licensed bingo is a well-regulated and socially responsible form of gambling that takes place in a safe environment. Many sites offer multiple forms of bingo with different features, types of games, and costs of play. These sites often cater specifically for women and some research suggests that they may appeal to markets who would not typically engage in traditional forms of gambling.
Slot machine is one of the most beloved game among the gambling community and it has been a part of the industry for a long time. They provide fun and entertainment and their simplicity allows gamers to start playing at once. This can play out in different ways depending on the machine you’re playing. For instance, there’s Pick a Fortune, a five-reel, 20 line game that puts players right in the studio of a television game show, including the potential to play a Deal or No Deal-style bonus round. A super trend over the past few years is mobile-friendly slot games. These apps and websites were developed to enable players to enjoy their favorite games on their smartphones at any time. Another dominant slot trend is licensed branded slots that are based on popular movies, television, and musicians. Virtual Money vs Real Money Let’s find out the difference between social gambling and real money gambling, as well as the differences between gambling through apps and gambling through a web browser. It can be quite confusing trawling through all the casinos, slots, and lotteries available, both through your mobile web browser as well as through mobile app stores, in the form of downloadable apps.
The main difference between virtual money and real money gambling is that the in-game virtual currency in social games and gambling-type games is used only like credits that are not paid out as winnings or anything given to player in cash, making these games exempt from gambling regulations.
Virtual money is loaded on user game accounts via in-app purchases in mobile applications or the game balance funding from a card via web based applications.
Real money gambling
Real money gambling via your mobile device is only allowed in countries where laws have been passed that allow for this type of gambling online, or there are no laws in place that prevent it. The payment systems are the legal way of services payment in the gambling app, performing as the intermediary between the gambling facility and the client. With their help, users replenish deposits and withdraw funds to personal accounts in financial institutions. If the application uses the payment system of a well-known brand, that gives players additional confidence in the resource. Nowadays, there is a wide range of payment systems, some of which operate all over the world, other systems are oriented towards the citizens of one or several countries. A number of services accept money of different world currencies, while others allow currency transactions of one state only. What is an Online Gambling Licensing The internet has a global audience, there’s no single piece of legislation that covers the legality of online gambling for the entire world. Mobile gambling doesn’t typically accept customers from every single country in the world. It often focuses on certain specific regions.
Instead, most countries have their own local laws that deal with the relevant legal and regulatory issues.
Ultimately, questions of legality all go back to the location of the casino or where the website operates out of. In closed regulatory systems, such as Italy, France, and the Netherlands, licenses, and advertising rights are limited to domestic providers, which must be located within their country’s geographical boundaries and these are only permitted to offer some types of products. Some jurisdictions, for example, Norway, Sweden, and Canada legalize and regulate online gambling, but this is limited to a single site that is owned by the government. Under such an approach, the government becomes the operator and regulator and all revenues are returned to the government. Remote gambling is generally permitted. That means that an operator that is licensed may provide gambling services to citizens in the country via all forms of remote communication (and using equipment that may be located in the country or abroad). Equally, a remote operator may be licensed to offer gambling services to citizens in any jurisdiction in the world using equipment located in the country. The law provides that, for each type of gambling (betting, gaming, and participating in a lottery), there will be two forms of license available: remote and non-remote forms (land-based). If you provide facilities for remote gambling, online or through other means, and advertise to consumers you will need a license from the licensing jurisdictions or local licensing authorities. Before an online gambling site signs up its first customer, before it accepts its first bet before the first card is dealt, it must be licensed by a recognized governmental entity.
Certain regions in the world have specific legislation in place that allows them to license and regulate companies that operate online gambling sites or provide industry services (such as the supply of gaming software). These regions are referred to as online gambling jurisdictions or licensing jurisdictions.
Depending on what type of entertainment you are going to implement in your internet establishment, you will have to apply for the corresponding permissions. Online gambling laws in Europe vary from one country to the next. The industry is well regulated in some countries and less so in others. There are several online gambling jurisdictions located in Europe. Some of these are members of the European Union (EU), and thus subject to the various rules and regulations of that body, while others are independent. Each of these jurisdictions has an authority that’s responsible for approving gambling sites for licenses that enable them to offer their services legally. They also regulate their licensees. Countries that Provide Gambling Licensing Today there are lots of licensing jurisdictions located all over the world and offering different terms for their customers. Depending on the country, licenses can be local, international (distributed in several countries), have a different set of documents for registration, costs of registration and further support, various operating conditions and other special details.
Which gambling license is both internationally recognized?
The government of Ireland offers casino operators, software, and service providers in the gambling industry, with a gambling license that allows gambling operators to conduct business related to casino, lotto, and other gaming-related activities. Ireland Gambling License is one of the most popular license for online casinos worldwide. Ireland has long been recognized as one of the preferred locations for Online Gambling operators to base their operations. This success has been due to a combination of factors, such as a progressive legislative system, political stability, first-rate telecommunications facilities, and a well established financial services industry. A wide range of gambling sites operates out of Ireland including sports betting, casino sites, poker, bingo, and more. In stark contrast, the UK is the largest regulated market for online gambling in the world, and corporations are already comfortable exploiting the intersections of gambling and gaming, betting in-play, social gaming, Bitcoin, financial trading and spread betting, betting exchanges, e-sports and, most profitably, mobile gambling. 40% and 60% of online gambling in the UK took place in Gibraltar.
Europe is home to the following online gambling jurisdictions: Alderney, Gibraltar, Isle of Man, Malta. Malta is currently the country that is most accommodating to gambling companies, and the license offers whitelisted online gambling in sports and casino games in many European territories. But takes an extreme amount of time in paperwork and background checks. Also, you pay 5% of all your gross profit to the EU.
Among countries offering gambling licensing services, the attention should be paid to Curaçao jurisdiction, which is considered to be one of the most promising for the online gaming business.
Curaçao Internet Gaming Association (also known as Curaçao eGaming) is both a regulator and a licensor, and its licensing works worldwide except Curaçao itself, USA, France and Netherlands. Using Curacao as an example, let us examine in detail the process of obtaining a license, the necessary documents and expenses. How to get a License on Curaçao
Documents necessary for company registration:
bank account confirmation;
documents proving payments for utility services.
After the company is registered, an operator can apply for the license providing the following documents:
a document certifying the right of domain possession;
description of games planned to be used in the project;
a list indicating countries of potential operation;
illustration of server locations to be used in the project;
a copy of the agreement with a software provider.
Gambling license cost:
Bank account opening $1000
Company registration $3600
Company management per year $3600
Application processing fee $1000
License fee per year $4800
Equipment/software fee starting from $1500
Server maintenance per year $6000
Apart from that pay for technical support and maintenance every year. The entire license issuing process takes between 2-4 weeks. Curacao Internet Gaming Association (CIGA) also has the power to review a license and, if it finds that an operator has breached a license condition, has the power to impose a range of sanctions including revocation of the license. Apple and Google Gambling Rules You’ll be surprised at the limited number of real money gambling app options available on the AppStore and Google Play Store. Most real money casino gaming is done through gambler’s mobile web browsers and not through mobile gambling apps that you’ll find for iPhone and Android phones. Apple allows online gambling applications in a few forms, and not just in places where it is explicitly permitted. They do not allow any payments through the applications – those have to be done on the websites. Apple has far stricter developer guidelines for iOS apps than Google does for Android apps, so it’s fine to assume that whatever you choose to download from iTunes is usually safe, secure, and meets a certain standard.
Any real money casino in the iTunes app is required to have proper licensing and permissions before Apple will approve the app for use or downloads. While Google Play is technically regulated, it is much more loose in what can be hosted.
Gambling, gaming, and lotteries can be tricky to manage and tend to be one of the most-regulated offerings on the App Store. Apple has rules for apps that support real money wagering, including sports betting and poker. Those apps and lotteries must have necessary licensing and permissions in the locations where the App is used, must be geo-restricted to those locations, and must be free on the App Store, and Apple rate even simulated gambling apps as appropriate only for users 17-years-old and up.
Google keeps the reigns tight. To be able to successfully upload apps to the Google Play store, developers need to have a valid license for the specific countries they are targeting and comply with their regulations. The app must be free to download and must prevent under-age users from gambling in the app. As a final precaution, all gambling apps are required to display prominent information regarding responsible gambling practices. This brings its policy in line with the Apple App Store. Countries where gambling is illegal It is also important to remember that while gambling is growing rapidly in many places, in others it is totally or partially prohibited. As well as in the majority of the US, sports betting is illegal in India, Pakistan, and China, three of the largest gambling markets in the world. Most countries have rules against gambling. Almost all Islamic countries prohibit gambling of every kind, but many turn a blind eye to online gambling or simply do not have regulations in place for this grey area. In the United Arab Emirates, however, any kind of gambling is prosecuted. National lotteries are the only legal forms of wagering on the Asian country’s mainland. Cambodia, North Korea strictly forbids online and offline gambling amongst its own citizens but allows tourists to participate in these activities. Qatar is the strictest country of all when it comes to gambling laws. All forms of gambling activities are considered illegal, and even sports betting is not permissible. Starting your own gambling product Numerous online casino platforms in the market offer fantastic casino games like bingo, poker, roulette, and many more.
If you have an idea, but don’t know where to start, we advise you begin with a Minimal Viable Product (MVP) to pilot your proof of concept for investors. MVP spotlights your core features and lets your investors know there are bigger and better things to come.
For MVP you do not need a large team, just a few people are enough to create a fully functioning prototype. In the case of successful numbers of your prototype, the further development of a full-fledged product will require more team, resources and time, however you will be sure that your development and your costs will pay off.
Vertextrades.com Review: 2%-3.5% each working day for 50-75 working days
Vertextrades.com is a high yield investment program which provides long term deposit plans. It started on 26th May 2020. You can get 2%-3.5% each working day for 50–75 working days, this program provides profitable rewards for promoters. I listed it into Standard listing. My first withdrawal request was already processed successfully into my PerfectMoney wallet yesterday. Now let me introduce it to you. Started: 2020–05–26 My Deposit: $200
The amount of 200 USD has been withdrawn from your account. Accounts: U3869878->U21524869. Memo: Shopping Cart Payment. . Date: 13:10 19.06.20. Batch: 319883157.
Invest $30–5000, earn 2% each working day for 75 working days and principal included Invest $5001–10000, earn 2.25% each working day for 70 working days and principal included Invest $10001–20000, earn 2.5% each working day for 65 working days and principal included Invest $20001–100000, earn 3.5% each working day for 50 working days and principal included
These are all the plans Vertextrades.com provides. Since trading takes place only 5 days a week, you will receive return on investment from Monday to Friday. I think the most suitable plan is the first one for all investors, because you only need $30 to start your investment journey. Let me take an example: if you deposit $100, then you can earn 2% daily from Monday to Friday, and you can withdrawal or reinvest the money at any time as your willings. After 75 working days, you will earn $150 totally and initial deposit included. That is to say, your net profit will be $50. Promotional Rewards
Referral Bonus Existing clients can earn referral bonus by introducing new clients. Vertextrades.com pays 10% referral bonus if the person whom you have referred makes a deposit. Referral bonus is paid instantly. Even the accounts that are not having active deposit are eligible to get referral bonus. The referral bonus will be credited directly to the E-wallet upon the completion of the registration and investment process of the members present down the line. Binary Matching Bonus Binary matching bonus will be credited only to the accounts with active deposits. Binary matching income is calculated every 24 hours. Please refer the binary chart for different binary matching slabs.
In binary plan, the new clients are placed below the introducer (referrer) to the left or right side (left or right sub-tree). The tree of a Binary Network Plan will have two legs-left and right; but if a member recruits more than two, then the additional member will be added to the next member down-line. This concept allows the additional member to be shared with down-line member (power leg) and the one who recruited them. This is referred to as spillover. With respect to profit leg, there won’t be a spillover as the profit leg will be expanded with individually sponsored downlines. The binary plan is mostly quantity oriented and not based on the levels. If you register through my personal link, then 10% of your deposit amount will be transferred back to your personal wallet. So don’t forget to submit your RCB request from top menu section on my website, I will transfer the money to you once admin processes my withdrawal request. Payment Options Vertextrades.com accepts PerfectMoney, Payeer, Bitcoin, Litecoin, Ethereum, BitcoinCash. Please remember that Bitcoin Payment takes 6 Confirmation in Blockchain. After Bitcoin deposit, it might take anywhere from 1 minute to 3 hours for the funds to be credited in your Vertex Trades account. Withdrawal Type The withdrawal processing time after withdrawal request is 48 hours, and the minimum withdrawal amount is 10 USD. Vertextrades.com charges a total of 10% withdrawal fee while transferring the funds from Vertex Trades E- wallet to your e-currency account. However, no fee is charged for internal transfer, i.e., transfer of funds from one Vertex Trades Account Balance to another Vertex Trades Account Balance, so you can use the internal transfer instead of withdrawal function to save the 10% fee. But remember that only use this function with your trusted friends to keep your money safe. Whois Information
Domain Registration: 2020/01/23–2023/01/23 IP Address: 220.127.116.11–1,541 other sites hosted on this server IP Location: California — Menifee — Sucuri ASN: AS30148 SUCURI-SEC, US (registered Feb 13, 2015)
Summary Vertextrades.com runs its website on an original template, and it now supportes 20 languages. Like most projects, admin also registered a UK company called “VERTEX TRADES LTD”, and you can check its certificate clicking here. From its investment plan, we can know that its profit is not too high, but from its promotional rewards, we can see profitable rewards for promoters. From the picture below, we can see that there is only 8 monitors although it has already operated for 92 days, maybe admin has his own promotional methods. If you have more questions, you can contact admin through its online chat box or the contact info I wrote below. Contact Info
Got this weird DM on reddit idk what this guy is up to have any of you ever heard of this https://tradeoptiongains.com Site? u/mikerobin25 Mikerobin2501:52 AM Hello there IDEKMyUsername09:34 AM Howdy Mikerobin2509:47 AM How's it going? IDEKMyUsername12:13 PM Not bad. What's up Mikerobin2512:36 PM I'm doing quite alright, How about you? IDEKMyUsername12:53 PM Not bad Mikerobin2501:39 PM Well, I don't mean to intrude but are you familiar with the term "cryptocurrency", Bitcoin to be precise? IDEKMyUsername03:10 PM Yes Aye Mikerobin2503:25 PM Well, I'm at the moment engaging in an outreach aimed at expanding the clientele of my platform and enlightening the populace on the monetary potential of bitcoin trading and mining. Would you be interested in this? IDEKMyUsername03:26 PM Uh yeah sure I can look into it. What does it include? Mikerobin2503:28 PM Are you familiar with the term "Bitcoin trading"? IDEKMyUsername03:29 PM Yeah somewhat Like selling and buying it? Mikerobin2503:33 PM Well, Bitcoin trading is the process of making profits by buying Bitcoin at a low cost and selling it when the price goes up, This method is referred to as Dollar Cost Averaging(DCA). The Bitcoin trade is volatile, and price move by a significant margin. This activity is done on trading platforms. Are you following? IDEKMyUsername04:07 PM Yep gotcha so far Sorry had to pickup a call Mikerobin2506:51 PM No problem mate. Every platform has an investment procedure and ROI method. Unlike other platforms that engage in day trading (profiting from the volatility of bitcoin which is inefficient), My platform is registered with S9 ant miners that mine the bitcoin you invest to increase exponentially and that’s how you earn profits. Have you heard of the term "Bitcoin mining"? IDEKMyUsername06:52 PM Yes I have Mikerobin2506:57 PM Good. For clarification, Bitcoin mining primarily involves generating and earning off the confirmation of blocks of transaction on the network such as the Blockchain network. This is made possible with the use of special and sophisticated devices called the Bit main devices, Such as the AntMiner S9 and ASIC hardware. These devices are extremely expensive to maintain and require a lot of electricity generation and technical expertise which makes it rarely an option for private individuals who are interested in going into Bitcoin mining. But my platform has been able to provide for this disability. Are you following? IDEKMyUsername06:57 PM I feel ya Yes Mikerobin2507:01 PM Moving on, My platform operates a full S9 Antminer farm. The Antminer s9 has a hash rate of 12.93TH/s which is -+ 7%, Which could generate a ROI of 0.5 BTC within an investment period depending on the investment capital. Note: ROI stands for return of investment while hash rates a measure of how many times the network can attempt to complete this puzzle every second. This means that hash rate is a good indicator of the Bitcoin network's health. Do i still have your attention? IDEKMyUsername07:02 PM Yes Mikerobin2507:05 PM Finally, All investments are made and monitored by the client (you) on the platform's website as you earn profits daily and you can contact me a "Broker" on the platform whenever you need assistance or more information. https://tradeoptiongains.com IDEKMyUsername07:05 PM Hm U have a history of wise investments? I mean don't really know you so not like your a "professional" of any means Mikerobin2507:06 PM Certainly We've been running for a span of 4 years now with optimum services provided IDEKMyUsername07:38 PM oh wow gimmie some more deets? how much money would I expect if i put a quick g bar in? IDEKMyUsername07:53 PM hm? Mikerobin2507:54 PM An investment of $1000 amounts up to the standard ROI stated above which is 50% of 1 bitcoin. Apologies for the late reply, Was attending to a client of mine. IDEKMyUsername07:55 PM so invest of about $1000 would give ruffly 5? nah ur good fam like how I go about that tho u know cause isn't bitcoin like kind of high right now? Mikerobin2507:57 PM Yeah though it would have been more profitable if you had started earlier when it was cheaper but you should be expecting more returns due to the halving coming up. https://www.bitcoinblockhalf.com/ IDEKMyUsername07:58 PM how high you think its going to get? Mikerobin2507:59 PM Its a highly speculative asset but from my experience and following it's previous halving events, Probably 15-18k. IDEKMyUsername08:01 PM oh jeez thats like as big as the big boom right? how you know its gonna do that? and what if it doesn't lol? do I just l;ose it all Mikerobin2508:05 PM Exactly. If it doesn't, It would remain at its breaking point of 9k or peak point of 10k but i highly doubt it doesn't pump(rise) based on past halving events. You can simply get started by creating your personal account on the platform by which you can start by purchasing bitcoin and you can do this by clicking on the "Register" icon to get started. IDEKMyUsername08:05 PM hmmm idk Kinda need some more security u know what I mean? Mikerobin2508:08 PM I understand. Loses are only made when you sell off, You money remains intact whether it rises or falls as long as you don't sell but your ROI is fully attained on your account on the platform. IDEKMyUsername08:09 PM o Mikerobin2508:10 PM Indeed Mikerobin2508:20 PM Any more questions? IDEKMyUsername08:20 PM uhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh no Mikerobin2508:22 PM Okay then, I'm available here if you're interested and need my assistance Enjoy the rest of your day. IDEKMyUsername08:25 PM o ok Yesterday Mikerobin2501:48 PM https://www.fxstreet.com/cryptocurrencies/news/breaking-bitcoin-price-takes-down-9-000-as-10-000-beckons-202004300334 https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-price-gold-oil-2020-best-performing-assets-a9492641.html IDEKMyUsername01:51 PM O I bought it Mikerobin2501:51 PM Pardon? IDEKMyUsername01:52 PM I bought one Mikerobin2501:52 PM On what platform? IDEKMyUsername01:54 PM I'm idk the one u sent me Um* Mikerobin2501:55 PM Really? When did you do this and why wasn't i informed? Today IDEKMyUsername10:19 AM Oh like last last night I thought it was expected U sent me the link and everything ;( Mikerobin2510:22 AM You would have informed me so i can enlighten you more on the procedure. Are you aware that it's a mining platform and you earn profits as an investor? IDEKMyUsername10:23 AM Yah so what would profit be ya reckon? For let's say $1000 over liek a year Mikerobin2510:24 AM What name did you use in registering the account? IDEKMyUsername10:24 AM Uh I'd have to look it up But how much profit did u say it would be about? Mikerobin2510:27 AM 0.5 BTC a month depending on your investment capital that is, I would need the name of your account to register it under my personal database so i can provide you with information and assistance when needed. IDEKMyUsername10:28 AM O damn that's some big bucks right there .5 btc like what 4g? 4 times 11 that's $44,000 a month Mikerobin2510:30 AM How much did you invest and what is the name of your account? Your profit is calculated in respect of your investment capital IDEKMyUsername10:31 AM Like 11grand Mikerobin2510:31 AM And the name? IDEKMyUsername10:31 AM Mmmm How do I find it? Is there a way on the site Mikerobin2510:31 AM What name did you use in creating the account? Didn't you register? IDEKMyUsername10:32 AM Oh like my irl name I thought u meant like a username Mikerobin2510:32 AM Username is what i mean IDEKMyUsername10:33 AM It's gonna be under Jeffery Henderson Jeffery L. Henderson Mikerobin2510:35 AM Okay, Give me a second to record it and ascertain your expected profit. IDEKMyUsername10:35 AM Sick Did u find my account? Mikerobin2510:41 AM I can't find your records on the platform, Maybe a technical difficulty. Could you please sign in and send me a screenshot of your funds deposited through discord please? IDEKMyUsername10:41 AM So tell me mike Where's the cash? Mikerobin2510:41 AM Pardon? IDEKMyUsername10:41 AM You lost it, oh you misplaced it. Now mike you know I don't like to be lied to right? Mikerobin2510:43 AM Since i can't find your account on the platform, I guess that's the ending of our conversation. Good day. IDEKMyUsername10:43 AM So why THE FUCK ARE YOU LIEING TO ME Mikerobin2510:44 AM Prove that you have an account on the platform by sending a screenshot IDEKMyUsername10:44 AM I cannot I did it on Computer Mikerobin2510:45 AM The sign in through your phone, Do i seem like a fool to you? I have a lot of clients to attend to and i don't have time for games IDEKMyUsername10:45 AM I ain't the I one that took another man's money and now can't find it You don't have other clients Let's not play games here How do I get my money out of this depreciating asset? You better help me get my money out of this or were going to have a major issue Mike... IDEKMyUsername11:16 AM U serious rn bro? Ur gonna scam me out of my 💰 ? A day will come when you think yourself safe and happy,. But suddenly your joy will turn to ashes in your mouth. and you'll know the debt is paid IDEKMyUsername08:01 PM Br You still my 11 grand Stole What's your name Tell me Or I'll find you
Here is an article by an author named Adnan about why Get Ticketing will explode: https://medium.com/@adnanzzz/the-bullish-case-of-get-protocol-451ad6059f2d Below is the same article copied and pasted for those who are too lazy to click the link. However, I recommend reading the article from the link instead as it has a lot of graphs, links, and pictures that gives a much fuller picture.
"GET protocol — the sleeping blockchain giant Bear with me as I try to explain why the GET token is currently the most bullish crypto token in the space. The price surge will be driven by adoption and not just mere speculation. And adoption is already there but will only now start to gain huge momentum! By the time you have read this blog you will come to see how most other crypto projects lose value in your eyes when you compare it to a project with amazing fundamentals, a project that doesn’t need an “altseason”, driven by mere mindless speculation, to give you nice returns! Most people in the crypto space have never heard of the GET protocol. This is on one side suprising because there are 191.329 wallet holders to be exact. This means that 191.329 people have used the GET protocol, mostly without even knowing it! The focus has always been on building a product that works and where there is demand for. Where other projects have focused and spent their funds on marketing in the crypto space (meaning luring in new investors) GET has neglected that part a bit. Instead they focused their funds on building a waterproof system and acquiring clients who will use the protocol (venues, artists, governments, …). The effect of this is that the price hasn’t been affected by speculation. The list of artists who use GET-fueled tickets is endless and I have honestly lost sight of everyone who uses it. But to give you an example of adoption, here is a list of some of the artists who sell GET-fueled tickets:
Amsterdam Dance Event
Youp Van ‘t Hek
What is the GET protocol and what does it do? The GET Protocol offers a blockchain-based smart ticketing solution that can be used by everybody who needs to issue admission tickets in an honest and transparent way. The goal of GET protocol is to become the worldwide ticketing standard. To put it in simple terms: the ticketing industry is plagued by dishonest players. Not only ticket fraud but also scalping are an enormous problem in the industry. Once a ticket sale starts bots buy up the tickets and later sell them for enormous profits. Fans are sidelined and are forced to buy tickets of their idols for a much higher price. The scalpers, not adding any value in the process, make tons of money at the expense of artists, fans, venues, event organizers, … and everybody who makes the event industry what it is.
This is where GET offers a solution proven to work The tickets issued on the GET protocol are registered on your phone. This means that only the person in possession of the phone also owns the ticket. Every ticket is unique and is based on a QR code that updates itself and rotates to prevent fraud and scalping. The tickets are all registered on the blockchain as a mean of transparency and accountability. This means that fans can check ticket authenticity whenever they want. This is also where the GET token comes in play but more on that later…
GET is currently the best adopted microcap This is a bold statement but it’s not difficult to prove. Whereas other crypto “companies” confuse their investors with a lot of technical words that the average Joe doesn’t even understand and show off with meaningless partnerships, GET is actually changing the ticketing world for the better! At the moment of writing there are 4 ticketing companies that are completely integrated in the GET protocol, and together have sold many GET-fueled tickets! These companies currently run on the GET protocol:
GUTS Runs fully on the GET protocol and has sold over 400.000 tickets.
ITIX Established in 2009 and sells 2 million tickets/year. Is fully integrated in the GET protocol and will start selling GET-fueled tickets soon.
getTicket A new ticketing company in South Korea that will run fully on the GET protocol.
TecTix A Germany based ticketing company that will sell GET fueled tickets with a focus on the sports industry.
Integrating an existing ticketing company is a low investment move (only the GET token is needed) that offers traditional ticketing companies several benefits. That is why I expect many ticketing companies to integrate and GET to scale quickly.
The supply Some people are scared by the big difference in the circulating supply and the total supply. This is an unneccessary fear. The GET supply is made up of 3 portions:
Circulating supply (13.5 million)
Stability Fund (12,6 million): these tokens can never enter the circulating supply. They are used to supply the ticketing companies with GET so they don’t have to buy them directly from the market. The stability fund then buys these supplied tokens from the market to fill itself up. As the protocol shifts to open source the stability fund (together with all the tokens it holds) will be destroyed forever.
User Growth Fund (7,24 million): these tokens are used for discounts to new clients. These tokens should also in principle not enter the circulating supply. Only for marketing purposes and possible exchange listing costs a small portion of these might be liquidated.
This means that the circulating supply as it is now can only, ever, lightly increase for the purpose of growth. With the buybacks and burns being large enough the circulating supply will instead keep decreasing at a swift tempo.
GET in times of COVID19 In May Dutch group Di-Rect sold thousands of tickets for an online concert. They used GET’s technology to use a dynamic price setting. This means that fans were given the option to pay whatever they wanted for a ticket. Whoever paid €20 or more had the chance to win a lottery and be present at the concert. Once the concert starts, whoever bought a ticket, will be able to watch the streamed concert on GUTS’ app. This is yet another proof of the advantages a digital ticket offers. As this was a big succes, the expectation is that more and more artists will make use of GET’s technology. On 27/05 Dennis van Aarssen, The Voice Of Holland 2019 winner, announced that he will also do a livestreamed performance of classic covers and original music on June 7th. All tickets will be issued through the GET protocol. GET also offers several advantages in different areas in the fights against COVID19. The right of access being linked to your mobile makes it possible for potential clients to monitor the number of visitors in real time all the time, to apply an automated seating selection which consideres an appropriate distance between all visitors, queue control, booking of timeslots for museums, shops, parks, beaches, … so overcrowding can be avoided. When an event gets cancelled, whereas with paper tickets it’s sometimes impossible to track who owns the ticket at the current time, with GET’s technology the event organizer can, with one click, choose to make a refund to the current ticket owner, to communicate with him, to postpone the event, …
What more to expect in the (near) future? There are so many amazing things to come in the very near future so I’ll only focus on a few of them:
Integration with Klaytn
GET-fueled tickets for K-pop
Top tier exchange listing
More focus on marketing in the crypto space
Staking & nodes
GET as an open-source protocol
Integration in Klaytn
Seeing the adoption the GET protocol has, the solution they bring and the enormous potential they have in conquering the ticketing industry, they have been asked by Kakao to join their blockchain “Klaytn”. So GET is an initial service partner of the Klaytn blockchain. “Kakao’s global public blockchain project Klaytn is an enterprise-grade, service-centric platform that brings user-friendly blockchain experience to millions.” The choice for choosing to be an Initial Service Provider of Klaytn is based on two aspects. The first aspect is the fact that Klaytn’s blockchain infrastructure is fully business and integration focused, more than any other blockchain in the market. This results in huge improvements in areas as cost-efficiency, scalability, and data reliability. The second aspect is fueled by the potential of being part of the Klaytn ecosystem. Kakao is a giant in South Korea. GET will bring its adoption to Kakao’s blockchain and Kakao, with its giant network, in return will open many doors in South Korea. A win-win for everyone involved! In 2017 Kakao had more than 220 millions users on their messaging and content platform. The last few years the company has been rapidly expanding in other industry verticals.
GET fueled tickets sold for K-pop stars As mentioned earlier: South Korean ticketing company getTicket will run fully on the GET protocol. They have already deals in line to sell tickets for K-pop stars in their country. K-pop legend Mr. Won-Kwan Jung, as someone who has a lot of connections in the K-pop world, has joined the GET protocol as an advisor. He is an iconic figure and innovator in the world of K-Pop, owing to the fact that he was one of the three original members of SoBangCha, (or ‘Firetruck’ in English) which is regarded as the first K-Pop group to exist in the world. In a survey conducted in 17 countries in 2019, around 37.5 percent of respondents stated that the genre K-pop was “very popular” in their country. The survey found that the popularity of K-pop reaches far beyond South Korean borders. The fact that their idols will be selling GET-fueled tickets hasn’t reached the Korean audience yet. It is still a “public secret”. The news will be released in a directed marketing campaign later this year. You better believe that once the Koreans find out that they’ll be buying GET like hot cupcakes!
Tickets for museums and beaches to be in line with COVID19 restriction measures With the Corona virus still not wiped out but more under control, many countries are lifting restrictions. This needs to be done in a safe and controlled manner. This means avoiding overcrowding. GET’s technology can and will surely help here. GET’s system can do all that is needed now for a safe experience. Whether it’s booking a timeslot for the beach, for a museum,… or even for a shop from your home. The system lets the client monitor everything in real time. Someone can that way for example choose to go when there is less crowd. This all while fully respecting the user’s privacy. The GET sales team has been busier than ever, being in contact with governments, museums, … and the dev team is constantly creating custom made smart ticketing solutions for new costumers. I’m sure we can expect some major announcements in this area soon!
Top tier exchange listings & marketing in the crypto space The team has confirmed that listing on a top tier exchange has already been agreed. They’re just waiting for the right time to announce it, fitting in their marketing campaign. Besides that, a fiat on ramp exchange will list GET in a short timeframe. Many projects invested most of their funds in exchange listings and fake volume, creating artifical demand. These exchange listings are almost always accompanied by paying for a market maker. Once the funds dry up (and we have seen this with many projects) delisting becomes a reality and the funds end up being spent in vain. GET’s exchange listing and marketing campaign aren’t a means to pump the price but have the goal of creating liquidity for the end users (mainly ticketing companies) who will need to acquire a lot of GET from the open market in the short future.
Expansion in several other countries GET’s business developer Sander: "I am reached out by ticketing parties all around the world on a daily basis. The main challenge is to vet these parties. The goal of GET Protocol is to be the worldwide standard of digital admission rights and to get there we need to stay extremely lean and flexible in order to scale well. In that sense we need to be 100% convinced the parties we partner up in this phase have a very high potential of becoming a big player in their respective geographies. From the onboardings we currently experience, we learn to speed up onboarding processes upcoming year." And when asked how many tickets he expects to be sold in the near future and how many ticketing companies he expects to run on the GET protocol in 5 years time: "Along the journey, we here at GET and GUTS learned quite a few things. One of them is avoiding to publicly announce ticket sale estimates as the chances are that we shoot ourselves in the foot with that. If we don’t meet our estimates, life sucks and the community will let us know which is fine and rightful, but to be honest for GET nothing to win. If we meet our goal, it is okay but even then some people members manage to say they hoped for even better. In that sense, whatever we do, we can’t do well enough on that front, so I am reluctant about giving specific numbers (and I don’t have a crystal sphere either!). That being said, regarding the amount of ticketing companies in 2025, I expect many, in many countries. It’s a matter of time that we can easier offer our products in a whitelabeled manner. Only this week we got requests for more information about our services from Germany, Paraguay, Mexico, UK and Italy and Australia. This certainly doesn’t always mean a ticketing company could lead out of such a request, but the interest is certainly there. If we keep on doing what we do now, I believe we can boost ticketeers and event organizers around the world pretty soon and let them issue fully digital and blockchain registered tickets, all processed by GET Protocol. If more ticketing companies are onboarded, the amount of ticket sales processed by the protocol will grow exponentially." Knowing how GET’s team has always been very careful with their promises, I take such statements very seriously. If the past has taught me anything: they’re probably making an understatement. So expect GET to spread its wings in many regions around the world and take the ticketing world by a storm!
Staking & nodes GET’s blockchain developer Kasper Keunen has announced that a staking model is being developed. This means that you’ll be able to stake your GET. In return a portion of the ticketing fee will be rewarded to those stakers and nodes. So see it as a passive income. You sit down, relax and see it grow exponentionally as GET conquers the ticketing world :)
The end goal is to be an open source protocol The endgoal of the GET protocol is to become open source. There will be a governance model where changes to the protocol will be determined by GET token holders. That’s why I expect ticketing companies to acquire a lot of GET in time as their revenue relies on the direction of the protocol. GET will have a role as governance for the project as a whole. Such a role for the token is the most natural in a fully open-sourced environment of the protocol(currently not the case, yet). As then governance by stakeholders (ticketing companies) with a serious stake in the game as their ticketing revenue relies on the direction/quality of the code to be on point. As of yet, we do not really assign too much fundamental value to this role for the token (we barely mentioned it actually) as it is still a bit early for it to have serious merit. So pushing that value of the token now would be a bit false advertising. As we onboard more and more ticketing companies we will develop the governance of the token role more and more!
Why the GET token is set to explode Now that I’ve covered what the GET protocol is and where it’s going, it’s time to dig deeper in the token. And I have to say that I’ve never been more bullish on anything in my life. This for the simple reason that usage will drive the price to insanely high levels (where speculation isn’t even needed).
Tokenomics As mentioned above: to have full transparency and accountability (both missing links to make the ticket industry fraud- and scalpfree) all tickets sold are registered on blockchain. You can compare GET to a gas that is needed to fuel the protocol (every state change of the ticket needs to be registered — for which GET is needed). So for every ticket sold GET is bought back from the open market and burned forever.
A single state change cost €0,07 in Q1 2020
There are minimum 4 state changes per ticket
This means that a minimum of €0,28 worth of GET is needed for every ticket sold
In Q1 of 2020 107 059 GET were burned (proof of burn: ");
It is projected that at least 50% of all GET will be burned by 2022
At the moment of writing €161.944 worth of GET have been bought from the exchanges and burned forever (all triggered by adoption and ticketing companies needing the token).
GET’s valuation in the (near) future Bear in mind that this is my own expectation, based on big changes in supply and demand that I will try to explain below. Also keep in mind that I’m not a financial advisor and nothing is guaranteed in the crypto space! But I will try to explain why I personally believe that GET will be trading at 10€ per token and more in the near future. As time goes on and more tickets are sold, the demand for GET will keep increasing while the supply will keep decreasing. You don’t need to have a PhD in economics to understand what this will do to the price!
What kind of demand/buybacks can we expect? As explained above: for every ticket sold at least €0,28 worth of GET is needed by the ticketing companies. Most of this GET is bought back from the exchanges (the money to do this is included in the ticket fee). Some GET is supplied by the “user growth fund”. This is a fund created to give potential new customers a discount. This is done by subsidizing them a portion of their need for GET so these new customers don’t need to pay the full price immediately. Bear in mind that as time goes by this fund will dry up and all the GET that is needed will from that moment on be bought from the exchanges. Since the buybacks are based on the amount of tickets issued by the protocol, to calculate what kind of buybacks we can expect in the future we need to look at the ticket sales. As mentioned before there are 4 ticketing companies using the protocol right now (GUTS, ITIX, TecTix and getTicket). Below I will make an estimation of what to expect from them. GUTS has sold over 400k tickets. From just the deals already signed, over a million tickets would have been sold in 2020. Due to Covid19 most events had to be posponed (not cancelled). In the meanwhile the GUTS sales team hasn’t been idle and has atracted many more customers. This means that the 1 million tickets number is probably even on the low side. But let’s say a minimum of 1 million tickets will be sold the first year where all events will be allowed again. This means that at least €280.000 worth of GET will be needed in that year. ITIX sells 2 million tickets a year on average. Once fully integrated they will thus need at least €560.000 worth of GET on a yearly basis. TecTix, as a new ticketing company, it’s hard to predict what kind of numbers they’ll be running at the start. But given the expertise of the TecTix team I think 200.000 tickets is a safe bet to start with. That would put us on at last €56.000 worth of GET needed/year. And finally getTicket, a ticketing company based in South Korea. In their case it’s also difficult to make a prediction because they’re new and we have no previous data to rely on. But judging from the comments made by the team that “everything is bigger in Korea” and that they’ll be selling stadium concerts for K-pop stars (just one concerts can mean over 100.000 tickets sold) I think it’s safe to say that they’ll be selling at least 1 million tickets/year. That would bring their need for GET to at least €280.000 a year. So if we put this together the 4 ticketing companies will need over € 1 million worth of GET on a yearly basis. Bear in mind that more ticketing companies will keep joining and the existing ticketing companies will keep growing, taking away marketshare from ticketing companies that can’t offer all of the advantages mentioned before. Based on all of this I, pesonally, would say that €5 million/year in GET buybacks by 2023 is not an unreasonable prediction.
What can we expect from GET’s supply? Demand for a token means nothing if the supply is unlimited. The best example of the importance of the supply is the recent Bitcoin halvening that got everyone excited. Before the halvening around 1800 BTC were mined every day. Let’s say that at current prices this was around $16 million worth of BTC per day. The miners obviously have to sell a large portion of this to cover their costs. So even if there are no other sellers, a large number of BTC has to be bought from the market every day just to keep status quo of the current price. Halvening basically means that the speed at which the supply increases will be halved (900 BTC mined on a daily basis instead of 1800). The supply of BTC will still continue to increase, only at a slower tempo. Scarcity should be the ultimate goal when investing in utility tokens. With GET’s utility token things are different: every GET bought by a ticketing company will be burned. Contrary to BTC the supply of GET will thus continue to decrease as time goes on, removing the stacks of those eager to sell. This is not a dig at Bitcoin by the way as I’m a fan. Just highlighting the advantage an adopted utility token with good tokenomics has over “the king”. I hope you now understand my expectation that the price will explode. Many holders will obviously not be willing to sell at current prices with such an increasing demand. As the price is determined by many factors and we don’t know what the price will do exactly, it’s not possible to pin down the exact supply in the future. We do know that it will keep decreasing at a swift tempo unless the price goes parabolic.
Finding the equilibrum for the price The demand for GET will keep increasing through adoption and the supply decreasing as the used GET are destroyed forever The equilibrium price and equilibrium quantity occur where the supply and demand curves cross. The equilibrium occurs where the quantity demanded is equal to the quantity supplied. If the demand increases and the supply decreases then the price will rise until it finds a new equilibrium. Putting a correct marketcap valuation on a crypto project is an extremely difficult task. With traditional companies we can for example rely on the revenue, profit, dividend payments, … to estimate what the company is/should be worth. In most countries a 5% rental yield is considered a good investment. Of course it’s not fully comparable as these buybacks don’t automatically put money on your account. But they do increase the price and destroy the supply. So I think it’s in a way reasonable to extrapolate this 5% yield to our case. Having explained why I expect atleast €5 million in yearly buybacks by 2023, that would mean the marketcap should be around €100 million (5% = the buyback of €5 million multiplied by 20). The current circulating supply of GET is around 13,5 million. The expectation is that the burning mechanism will destroy more than half of that by 2023 (this takes into account an increasing price of the GET token). So let’s round it up to 5 million GET remaining. A marketcap of €100 million with a supply of 5 million GET would mean a price of €20/GET. This would be an increase of 6566.67%. Of course these numbers are not set in stone and merely a prediction but if you’ve been reading this blog you have come to understand why I am extremely bullish on the GET token. I have completely taken the speculation factor or an “altseason” or “fomo” out of the equation and only focused on a price increase driven by an increasing demand and decreasing supply! So the focus is on an organic price growth. Another great thing about holding a token with mass adoption and guaranteed buybacks is that I don’t have to worry about the price. As the buybacks are a guaranteed thing, the lower the price of GET the more GET is bought back and destroyed forever. So even a price decrease, as contradictory as it may sound, is bullish for longterm holders!
Bitcoin, dogecoin. How I tried to make my fortune in 2014 with the sweat of my computer.
https://preview.redd.it/mv21lvsa3do31.jpg?width=1280&format=pjpg&auto=webp&s=51bf5296a06eedc178079cf0b3ab4c3cfc44f271 Make money just by working on your computer: the rise of electronic currencies, in the wake of bitcoin, can be a little dream, especially in times of crisis. We tried the experiment. Wealth at your fingertips? Not for everybody. Reading time: 6 min. We have known at least since March 2013, with the soaring Bitcoin (BTC) price during the closing of Cypriot banks: electronic currencies, it has not much virtual. Since the creation of the enigmatic Satoshi Nakamoto serves as a safe haven, a playground for speculators, interests the States and even makes it possible to pay for his trip to the space where his beer, bigger world would dare to pretend that it only serves to buy prohibited substances on SilkRoad - if it ever was. At the end of November, James Howells was mocked a lot, this Brit, caught in a household frenzy, inadvertently threw a hard disk containing 7,500 bitcoins, the equivalent of 4.8 million euros. A small fortune now lost in the depths of the Docksway dump near Newport. Nevertheless, before causing the consternation of the global Internet, Jamie still had the nose to undermine the BTC at a time when the experience mobilized a handful of hardcore geeks. Since the rise (sawtooth) bitcoin, each unit currently weighs more than 800 dollars, nearly thirty cryptocurrencies have emerged. Is it possible, this year again, to let this promising, volatile and risky train pass, or to fall into
Choose your electronic motto.
All are based on the same principle: to summarize (very) big features , the issuance of money is governed by an algorithm, and the new corners put in circulation reward the resolution, by participants in a network of peer and mathematical problems, including the validation and archiving of transactions, which are public . Mining a cryptocurrency is like putting the computing power of your computer in the service of the network.
Since the program is decreasing , the mining becomes more and more difficult with time (and with the increase of the number of participants): to hope to make his pelote via the only computational activity, one must either have to at its disposal a large fleet of machines, to be a miner from the first hour. Exit the bitcoin, long since out of the reach of a personal computer.
I similarly gave up the litecoin and peercoin, already well launched (they date respectively 2011 and 2012), to set my heart on one of the most recent currencies - and certainly the hippest of the moment: the dogecoin.
As its name suggests, the cryptocurrency favorite Shiba Inus from around the world is a tribute to the Doge, one of the most famous memes of 2013, with its captions in Comic Sans, the font most sorry for the web. A geek joke, therefore, except that - the unfathomable mysteries of the Internet - its value jumped 900% in the third week of December, and she suffered a Christmas robbery online.
Admittedly, at the time when these lines are written, the dogecoin caps at 0.00023 dollars  - its quite ridiculous (and quite depressing), but even if you bet on the future, so much to go frankly.
2. The hands in the engine the billboard.
From there, things get tough (a little). Installing an electronic purse on ones computer is not very complicated (the software is available for Windows, MacOS, Android or, for the more adventurous, on a repository to compile under Linux). It is also possible to use an online wallet, but it is more risky (except, perhaps, when one is called James Howells). When opened for the first time, the purse automatically synchronizes with the Dogecoin network (be careful, it can be long), which gives you a payment address (we can generate more later).
The two most common ways to undermine electronic money are to use the computing power of the computers microprocessor (CPU) or, more efficiently, that of the graphics card processor (GPU). In the first case, the program is simple to install; in the second, it is necessary to choose the most adapted to its material . There are, thankfully, a lot of online tutorials. Still, to operate the corner board requires in all cases to trade the comfort of the GUI for aridity, so confusing to the layman, command lines - we have nothing for nothing.
Finally, at work alone, we prefer collaboration. Mining is best done in groups, or rather in pool: it distributes the gains, of course, but also the difficulty. For the dogecoin as for all the crypto-currencies, the pools are numerous. A quick tour of a dedicated section of the Reddit community site can help you make your choice.
3. Extension of the field of struggle.
And after? After, we can rest, since it is the machine that works. But the truth of a cryptocurrency - even at the exceptionally high LOL and LOL rates of the Shiba Inu - is cruel and brutal: not all computers are equal. Or rather, some are more equal than others. For while you heat your CPU or your graphics card to grapple some unfortunate corners, others will sweep the game thanks to specialized integrated circuits, computing capabilities much higher.
If the game of buying and reselling corners is basically just another stock exchange mechanism, less the intervention of the central banks - what is at stake, and the big political question they ask: are we certain to prefer speculation pure and perfect to monetary policies, however questionable they may be? -, production, it is the law of the strongest (in calculation). There are even lethal weapons at $ 10,000 each, with which your processors are like mosquitoes in front of an A bomb.
And if you think it does not matter because after all, it does not cost you anything, think again: the components, like humans, wear out faster when they work at full speed, and the bill of electricity can quickly grow. The profitability of the case is anything but certain, as evidenced by the results of online calculators. (Needless to say, our laughing dogecoin does not stand up to this kind of simulation.)
Much more boring, from a collective point of view: the carbon footprint, current and above all expected, of electronic currencies worries more and more. Last spring, Bloomberg estimated that the energy consumption of the Bitcoin network was equivalent to that of 31,000 US households. Not sure, according to the site, that their emission is less damaging to the environment than have been some physical currencies.
For exciting to analyze that is the emergence of cryptocurrencies, it is better to ask now about their cost, economic and ecological. To see it as a potential source of income, except for being a very early adopter with a hollow nose, an individual with a lot of computational capital or a clever trader, you have to make a point.
If the recurrent comparison with the famous Ponzi pyramid  is discussed (after all, the decentralized currencies do not make promises), remains that, as long as the value does not collapse, the system benefits mainly to the first entrants - except James Howells.
As the Bitcoin.fr site aptly states: all this is just an experiment, invest only the time and money you can afford to lose. LOLs love was not a worse reason than another to experiment, so I finally submitted my laptop to four days and three nights of intense activity, which makes me happy. owner of a good half a thousand dogecoins. Either the equivalent of 0.115 dollar, or 0.08 euro. It is obviously not worth the electricity consumed to generate them, it increases my carbon footprint, but it amuses my entourage. But laughter is, as everyone knows, a safe bet in times of crisis, less volatile than a real bitcoin.
And then, after all, you never know.
1. For explanations more provided (the case is quite complex), refer, for example, to the series of very detailed notes devoted to blogger Turblog.
2. And as such, searchable by everyone. It is the identity of the users that is not known, unless they reveal it, hence the reputation of anonymity (relative, therefore) cryptocurrencies.
3. In the case of bitcoin, the maximum of 21 million units should be reached around 2140.
4. For a day-to-day follow-up, see the CoinMarketCap site which lists the exchange rates of crypto-currencies, based on the dollar value of bitcoin.
5. We discover then, unfortunately, that some graphics cards do not allow the mining. This is the case for the author of these lines, reduced to working in conditions of extreme computer deprivation.
6. Comparison which is at the heart of a hilarious note on the ponzicoin, signed by the economic journalist Matthew OBrien, on The Atlantic (to read if you intend seriously to invest in the dogecoin).
Sharering (SHR) I believe this one is going to surprise so many. Already generating revenue and doing buybacks every week. Already over 10 000 registered users. Mainnet + app + masternodes and staking before EOY.
I got this stuff from Steve Aitchison, he wrote this review and posted it on Uptrennd. Figured I should put it on here as well since I truly believe this is an incredible moonshot. I'm personally holding SHR myself and am very convinced it will do extremely well. Give a read through it and you will immediatly see why. Enjoy guys. Introduction Imagine for a second the following scenario. You are a 2 car family. One car is used every day going back and forth to work, for shopping, all the little jaunts you and your husband like to go on. Your grown children are at university and come home for the weekends so the other car sits in the driveway all week and doesn’t get used during the week. What a waste of a perfectly good car. You think to yourself we could put that car to good use and actually help to pay for university fees, by renting it out during the week. However, then you think “well it’s only a little Ford Fiesta who’s going to want to rent that.” Well, it turns out a lot of people want to rent it and for a good price: £34 ($40) per day, a possible $800 per month. Peer to peer car sharing has grown massively over the last few years and people are making serious money by letting our vehicles on a daily basis, emulating the Airbnb model. In fact companies like Turo, Getaround and Drivy, which has just been acquired by Getaround for $300 Million, are bringing in serious investors like Toyota, Softbank Vision Fund, Menlo Ventures, and IAC to the tune of over $800 Million. A key difference between rental companies and peer to peer is that they have vastly improved technology with app interfaces that make locating assets and resources, reserving and using them, and making payment convenient and seamless. This, combined with location-specific analytics, allows by-the-minute access to assets and resources (e.g. cars or bicycles) and enables customers to pick up and drop these assets where and when convenient. Car sharing is just one example of an industry that is being disrupted. We have seen, experienced and read about the amazing growth of Airbnb which is now estimated to be valued at $38 Billion. Airbnb has been so successful that companies like booking.com are trying to get in on the act by adopting a similar model when it comes to booking accommodation. There is also the phenomenal rise of bicycle rentals which we see in cities all over the world, not quite the same as peer to peer sharing, but it’s another rental model that is ripe for being disrupted by the new sharing model. With this business model in mind what other areas could it be used in: Transport: Used for the rental of cars, trucks, scooters, trailers, and even heavy vehicles. Delivery Drivers: Facilitate booking and payment for delivery drivers. Agriculture: Garden sharing, seed swap, bee-hive relocation, etc. Finance: Peer to peer lending Food bank, social dining Travel Tours, shared tour groups Real Estate Airbnb, co-housing, co-living, Couchsurfing, shared office space, house swapping. Time: Labour, co-working, freelancing Assets Book swapping, clothes swapping, fractional ownership, freecycling, toy libraries. Transportation Car sharing, ride-sharing, car-pooling, bicycle sharing, delivery company, couriers And so much more! This newly emerging, but highly fragmented sharing industry, is currently worth over $100 billion. It is predicted to grow to at least $335 billion by 2025. As you can see from a few examples above the sharing economy has a lot of room to grow but what it doesn’t have, yet, is a company who can facilitate ALL of the above use cases in one place. That is until now! ShareRing is disrupting the disruptors by bringing everything together in one place and making it easy for you and me to share anything and everything and making it as easy as opening an app on your phone. Business Case The sharing market has exploded over the last several years. This is due, in part, to the digital age we live in, as we now have over 2.82 Billion people with smart phones around the world. It also due to how easy the business model of sharing lends itself to the digital world, and how with the simple installation of an app we can access a plethora of markets to rent almost anything from. Due to this rise of digital platforms and the proliferation of smartphones, revenues coming from sharing economy platforms are only expected to increase. It is estimated to grow to a $335 billion industry in 2025, compared to its $14 billion value in 2014. (PwC UK). The beauty of the sharing economy is that it is a win/win/win situation for the person who wants to rent something for a few days or weeks, the person who is renting out, and the company who facilitates the ease of the transactions between the renter and the person renting out. Typically the renter will save a lot of money whilst renting out someone else’s apartment, car, bicycle, clothes, dog sitting services etc and they can almost be assured of quality due to the social side of the business model with reviews from real people. The person who is renting out can make additional income and will want good reviews and therefore keep the standard of service higher. The company that is facilitating all of this can make a lot of money on transaction fees, as well as from advertising, and partnership deals, and obviously have an exit strategy for possible buyouts. When it comes to looking at the business model, ShareRing fits in to the Commission Based Platform as described in Ritter and Schanz study where they looked at the core difference in difference business models of the sharing economy: Singular Transaction Models, Subscription-Based Models, Commission-Based Platforms and Unlimited Platforms.) Commission Based Platforms are dominated by (at least) triadic relationships amongst providers, intermediaries and consumers with a utility-bound revenue stream. These business models enable their customers to switch between provider and consumer roles by creating and delivering the value proposition. Only a few employees work for the intermediary and the value creation and delivery is externalized. From a consumer perspective, consumers are empowered to collaborate with each other and to design the collaboration terms by negotiating the terms and conditions of the content, creation, distribution and consumption of the value proposition. Depending on the orientation of the value proposition, consumers purchase commodities (Tauschticket, ebay), access commodities in a defined timespan (booking.com, Airbnb) or buy services (uber, turo) from occasional and professional providers found via an intermediary. The intermediary mainly focuses on nurturing a community feeling and reducing exchange insecurity by incorporating rating systems, micro-assurances and standardizations of payment and delivery into the platform. The platform mainly takes commissions for successful matching and executing trade. (Journal of Cleaner Production Volume 213, 10 March 2019, Pages 320-331) The USP of the ShareRing Business Model The USP that ShareRing has is that it brings all of the different forms of sharing together in one app through partnerships and onboarding of users. No other company, to date, is bringing everything together in such a way. However there are other factors that make ShareRing unique, which we will look at. Token Economics SHR is a utility token and will be used to pay for transactions on the network, such as 'new booking', 'add asset', etc. SHR is used by providers to pay for their access to the ShareLedger blockchain, including the addition of assets, renting out of assets, adding attributes, adding smart contracts, and other features. SharePay (SHRP) is used by customers to pay for the rental of assets. Masternodes will also be a main feature of the SHR token. When a transaction fee is incurred, it will be distributed in a way that allows for masternode holders who provide a service to the platform to receive a reward from each transaction. Transaction fees are charged to sharing providers in SHR. The distribution of transaction fees will be as follows: 50% - will be distributed amongst the active masternode holders who host an active node on the blockchain at that point in time (these holders provide a service to the platform). The distribution will be based on a calculation of the Total Amount Staked and the total continuous uptime of the node. 50% - will be provided to ShareRing Ltd (view ShareRing owned masternodes) for various purposes that contribute to working capital and platform growth. Leased Proof of Stake Consensus ShareRing have chosen the Leased Proof-of-Stake protocol as the consensus algorithm for ShareLedger. This choice is based on the practicality and security benefits evident in the Waves platform. It is also much more cost effective than Proof-of-Work (POW), and will not suffer from the current issues Bitcoin and other POW cryptocurrencies are facing such as scalability and electricity consumption. As explained above master nodes will be a main feature but there is the other feature of lightweight nodes. A user with a lightweight node will be able to stake their tokens to a full node of their choosing and participate in reaching consensus. They will also be free to cancel their leasing at any time as there are no contracts or freezing periods. The more tokens that have been staked in a full node, the higher the probability the node will have in producing the next block. Since the reward is given based on the total number of tokens staked in the full node, there will always be a trade-off between the size of the full node and the percentage of the reward. As an average user of the platform, you will not need to have technical knowledge on how to set up a node nor will you have to download the entire blockchain in order to stake your tokens. Only a user who sets up a full node will be required to do this, making it simpler than ever for users to earn a reward for supporting the platform. The return expected for staking is expected to be around 6 - 8% although this has yet to be confirmed. Buybacks ShareRing are currently implementing a series of buybacks which started in the beginning of November: The buyback operation is done at a random time during the week. If there is enough liquidity, SHR tokens will be bought through a single market order at the time of buyback. In case there is not enough liquidity, a limit buy order at last sell order price will be placed on the market, and will remain open until it gets filled. The buyback program was implemented to test the API purchase process for when live transactions occur on ShareLedger The Buyback Program is expected to:
Reduce the supply of ShareTokens available in both public and private markets
Bring New capital and fund inflows into the Shareledger
Substantially magnify value creation for the ShareToken holders
The Token Flow ShareRing will bring in hundreds of merchants to list their rental products, either exclusively or as part of an aggregator system e.g. When you look at the likes of trivago.com they will list the best hotel prices from multiple merchants who are listed on their website. Essentially ShareRing will become part of the aggregator ecosystem and be listed on sites like trivago.com as well as have exclusive agreements with merchants who are listed directly on their app. ShareRing’s USP is that they have everything on one place as well as their OneID module with means buyers can get a hotel, rent a car, rent their ski equipment, book events all through the one app and using the OneID. With that in mind they are going to attract a lot of merchants. This is where it gets exciting so pay attention to this part. When a merchant is part of the ShareRing ecosystem and a buyer rents something from that merchant ShareRing will take a small % commission from that transaction. So say someone books a hotel for $100 for the night, ShareRing might take $0.50 as a commission. What ShareRing will then do is go to one of the exchanges that ShareRing (SHR) is listed on and buy SHR tokens directly using an API system using USDT. Now, the actual commission has not been disclosed yet however if we assume even a 0.25% commission that means for every $100 Million worth of bookings made through the app will net ShareRing $250,000 which means buy backs of $250,000 for the SHR token, which increases the liquidity of SHR on the exchanges. If you think $100 Million of bookings is a lot, booking.com customers book around 1.5 Million rooms per day, if we estimate an average of $50 per room that is $75 million of bookings PER DAY or $2 Billion worth of bookings per month. This revenue coupled with revenue from OneID and eVOA makes ShareRing profitable almost from day one of the app going live. OneID And eVOA Another exciting development from the ShareRing team is the collaboration between ShareRings Self Sovereign Identity protocol and third party providers to bring OneID and eVOA which will utilise OneID With the huge rise in E-commerce and with over 2.82 billion people who now own a smartphone we are entrusting our personal information to more and more centralised entities. These entities are frequently hacked and our information is leaked to outside parties. ShareRing aims to tackle this with their service OneID module. ShareRing’s OneID solution protects users' data by handling Know Your Customer (KYC) information through third parties and ShareRing’s Self Sovereign Identity Protocol. ShareRing does not hold any identifying information anywhere on its servers. It provides the ultimate security for the renter and also the provider, as the Protocol encrypts and stores your data in a secure manner within your device. Essentially, this means that it is near impossible for a hack or data leak to happen, simply because there is no centralized server of data for hackers to exploit. The OneID module is very easy to use. The end-user needs to complete their ID submission only once, with the entire submission process requiring less than two minutes to complete. Once this step has been completed, the customers KYC is destroyed by the 3rd party document verification system and the OneID module allows merchants to verify a customer’s identity via a hashed verification packet, stored on the users device and ShareLedger. This removes the need for merchants to store or see personal information; safeguarding both merchants and users from fraud. To create your ShareRing OneID, simply:
Take a picture of your government ID document
Take a selfie
Confirm and submit your details
This is something I am really excited about for ShareRing and they already have made partnerships for other companies to use this feature which is another income stream for ShareRing. eVOA E-Visa On Arrival allows applicants to apply online and receive a travel authorisation before departure – this eVOA can be shown at dedicated Thailand immigration counters on arrival at major Thailand airports, allowing travellers to pass through in minutes. OneID system is scheduled to become the lynchpin technology in Thailand’s electronic Visa On Arrival (eVOA) system; one of only two companies to partner with Thai authorities to provide this service. The new Visa system eliminates much of the hassle involved in entering the country: This is a strong validation of the OneID system - immigration controls are some of the most scrutinized processes in any branch of government, and if the OneID solution can operate to their standards then it is truly business-ready. As explained by our COO, Rohan Le Page: “We are providing our OneID product for Thailand e-VOA (Visa On Arrival) that allows 5 Million travellers from 20 countries including China and India to complete the visa process on their mobile through our app. This provides a streamlined immigration process that negates the need for an expensive and time-consuming process when you get off the plane. Additionally, fraud is mitigated with several extra layers of security in the back end including our blockchain (ShareLedger) consensus model that makes all data immutable and all but impossible to hack.” Profit Margins on OneID So how does ShareRing make money from OneID and eVOA? With each application for an eVOA using the OneID module ShareRing will make an undisclosed commission. The e-VOA is available to citizens of 21 different countries and is intended for those who will be holidaying in Thailand and not working in the country. This means that each eVOA will last for a period of around 15 days which effectively means that ShareRing will get commission multiple times from each person travelling to one of the 21 countries listed below: Andorra, Bhutan, Bulgaria, China, Ethiopia, Fiji, India, Kazakhstan, Latvia, Lithuania, Maldives, Malta, Mauritius, Papua New Guinea, Republic of Cyprus Romania, San Marino, Saudi Arabia, Taiwan, Ukraine, Uzbekistan The profits on this alone, according to projections, are worth millions of dollars per year to ShareRing, with a healthy growth of about 35% in raw profit over the next 5 years, ultimately netting the company about $1.5 million profit per quarter. The ShareLedger Blockchain Platform ShareRing will utilize the registered intellectual property from the existing KeazACCESS framework (KEAZ: A car sharing company founded by Tim Bos) as well as improving it the blockchain experience in their team. It will consist of fo the primary elements: SharePay (SHRP) – SharePay is the base currency that will allow users of the ShareRing platform to pay for the use of third party assets. ShareToken (SHR) ShareToken (SHR) is the digital utility token that drives sharing transactions to be written to the ShareRing ledger that is managed by the ShareRing platform. Account – This will be a standard account, which such an account being represented by a 24-byte address. The account will contain 4 general fields: SHRP – SharePay token balance SHR – ShareToken balance ASSETS – linked/owned by the account (see below for definition of an Asset) ATTRIBUTES – Any additional attributes that are associated with this account. These attributes may be updated or added by Sharing Economy providers that utilise the ledger such as ID checks by rental companies. These attributes may be ‘global’ (i.e. used by any sharing providers) or ‘local’ (i.e. used by a specific sharing provider). Assets – An asset represents a tangible real-world or digital asset that is being shared, such as a car, a house, industrial machinery, an e-book, and so on. Smart Contracts – Similar to a number of other blockchain platforms, such as Ethereum and NEO, the ShareLedger blockchain will feature highly customisable smart contracts. These Smart Contracts will allow for decentralised autonomous applications that can be attached to an asset and/or account. Every smart contract will be Turing complete, meaning it will have the ability to implement sophisticated logic to manage the sharing of the assets. The smart contracts will be tested and reviewed by ShareRing in a sandbox as well as audited by reputable third-party code auditors prior to implementation. Proof of Stake Consensus ShareRing have chosen the Leased Proof-of-Stake protocol as the consensus algorithm for ShareLedger. This choice is based on the practicality and security benefits evident in the Waves platform. It is also much more cost effective than Proof-of-Work (POW), and will not suffer from the current issues Bitcoin and other POW cryptocurrencies are facing such as scalability and electricity consumption. The ShareRing App At the heart of the ShareRing project lies the ShareRing app: A universal ‘ShareRing’ app is being developed that will allow anyone to easily see and use any sharing services around them. Each partner will have the option of developing a ‘mini’ app within the ShareRing app that will have functionalities specific to that partner. The app will use geolocation-based services to display the ShareRing services that are nearby Social Media Presence Coming from a social media background I feel this is an extremely important area to look into, especially in the crypto world. ShareRing has done an okay job in growing their social media presence however I feel it could be much better. Here is a look at some of the key stats for their online social media presence: Youtube: 191 Subscribers Instagram: 238 Followers Linkedin: 376 Followers Telegram: 6,525 members (very active) Twitter: 2,216 Followers (Fairly regular updates) Facebook: 1,965 Followers Whilst social media may not be a priority just now I feel there has to be a big presence with image-based platforms and video-based platforms. Youtube and Instagram should be made a priority here as it spans all generations: Other News on ShareRing There is a lot of stuff going on at the moment with ShareRing which is what makes it an exciting prospect. Rather than give information on each of them here are some highlights provided by the ShareRing team.: - ShareRing's revolutionary ID management based module OneID. - Worlds first Blockchain based eVOA in place with major Thai company targeting 5 to 10 million travellers from 20 countries. - 2.6 million International Hotels/ Accommodation coming on to the Platform. Lots more to come! - Partnership with HomeAway - 200,000 Activites, Tours and Events added to the ShareRing App - Multi Global Car Sharing Partnerships - 1 Partner Directly Integrating SHR's OneID consisting of 1.2 million Vehicles across 150 Countries - Luxury Car Brand Sharing Platform purely based on SHR - SHR payment system SHRP available in 10% Taxi Terminals in Australia - SHRP available in 10,000 EFTPOS Terminals Australia wide - White Labelling Services incorporating ShareRings revolutionary OneID - 20 Significant Unannounced Partnerships, more to come! - Major Partners include - - BYD (Largest Electric Car Maker in the World) - DJI (Largest Drone Maker in the World) - Keaz (300 locations around the world) - Yogoo EV Car Sharing - MOBI Alliance Member Overview of Positives and Negatives Negatives Social Media and marketing possibly needs to be ramped up in order to bring more awareness to the project. The roadmap and white paper has not been updated recently for 2019/2020 but this I believe is coming soon. Positives With a low market cap project like ShareRing the risk to reward ratio is very good for retail and institutional investors. Technical analysis of current prices, currently at 31 Satoshi, is also very good with resistance levels at 50, 77 and 114 Satoshi which would be nearing its all time high. Referral program will increase the numbers of users that are currently using the site. If ShareRing can capture even a small % of the overall sharing market then success looks assured. There are 20 new announcements coming up and with Tim Bos looking for more partnerships it seems likely that ShareRing will break ATH prices soon. Great long term hold, in my opinion. Realistic Expectations of ROI Short term (4 weeks - 12 weeks) Short term looks great for ShareRing both from a TA point of view and a fundamental point of view. With lots of news still to come out about ShareRing there is not going to be a shortage of fundamentals to drive the price up. From a TA point of view the next line of resistance stands at around the 50 Satoshi level which would complete a massive cup and handle formation from August 24th of this year. After that we are looking at resistances of 77 and 114 to reach near the all time highs which i expect ShareRing to reach going into 2020. Long term (6 Months - 2 Years) If ShareRing can onboard users and keep on making partnerships at the same rate there will be no stopping it. It’s all about onboarding the users and utilising the most powerful marketing tool ever - word of mouth! When a great app is realised with great and useful functionality then it tends to go viral and I am hoping this happens for ShareRing. With a market cap at the moment of just under $6 Million then I don’t think it’s crazy to talk about 1000% increases in the next 2 years and I really believe that is being extremely conservative, given where we think crypto is heading as a whole.
The below is the text from my latest blog post about bonds, if you want to see the original with pretty pictures, charts, graphs etc then click on this link. Ok, the title is an obvious dad joke, but as it happens it still fits in with my naming convention for posts so happy days! On to more serious stuff. The most common proposed asset allocation for people pursuing FIRE seems to involve having absolutely as much invested in equities (or to a lesser extent property) as possible, and reducing every other asset class to as little as possible. Which is certainly one way of doing things, and given the great performance of shares and property over the last 20 years or more there is an argument to be made for doing things this way. It’s certainly not the only way of doing things though, and I will be trying to show why there is a case to be made for investing some money in other asset classes, in particular Fixed Income aka Bonds. So what are bonds? Bonds are a type of debt that is issued by governments, semi-government organisations, and corporations, so basically you’re lending them money. In Australia we also have what are called hybrid securities, but they’ve got some big enough differences that I’ll talk about them in a future post (probably). Bonds are also one of those fun areas where there is an exception to every rule, so although what I’ve written below is broadly accurate there is always going to be some type of bond or a specific issue that breaks one of the rules. So please don’t be an internet hero and “well ackshually” me about premium redemption/issue bonds, soft calls, hard calls, investor puts, floaters, PIK notes and all the rest of it because broadly speaking it isn’t going to make much difference for the purposes of explaining bonds. Basically play nice readers! Talk numbers to me… Bonds are all about math. As I’m sure regular readers of this blog can imagine this makes me very happy, and probably explains in part why I spent a large part of my career working in an area where understanding bonds was crucial, although to make things more interesting we added on a bunch of other stuff like equity options, credit derivatives, FX etc. The main numbers to think about are the price you paid for the bond, the coupon on the bond, the yield on the bond, the time to maturity, and the maturity value of the bond. From those main numbers we also derive a bunch of other numbers I’ll talk about later. Bonds are normally issued at a price of 100, with a fixed coupon (interest payment based on the maturity value of the bond) and a fixed maturity value at a known maturity date. So that’s 4 of the numbers covered already, happy days! A lot of the time though you’re not going to be buying that bond when it is issued, you’ve buying it when it’s already trading in which case chances are pretty good you didn’t pay 100 for the bond. Buying it along the way doesn’t affect the coupon or the redemption amount at maturity or when it matures. What it does affect though is the yield. There are a bunch of different yield measures but I’m going to go with yield to maturity, ie what yield (return) will you get if you hold the bond to maturity. It’s not a perfect analogy, but one way to think about bonds is that they’re like a term deposit where the amount that you can buy it for moves around. If you buy a bond for $10,000 that is going to mature in a year and it has a 2% coupon and redeems for $10,200 (redemption price plus coupon payment), then your yield (2%) is the same as your coupon (2%). But if interest rates have changed and so the price of the bond has changed and you buy that bond for $9,900 or $10,100, then your yield will be different from your coupon, either 3% or 1% respectively. Hopefully that makes sense? BTW I’ve rounded the numbers here to try and keep it nice and simple. Most bonds pay interest on a semi annual basis (I used an annual payment in the example above to make things easier) so to figure out how much interest you get when it gets paid it’ll be the coupon divided by two. Hopefully all of that makes sense, if not let me know in the comments. Issuers of Bonds As I said above the main issuers of bonds are governments, semi government organisations, and corporations. Debt issued by governments is generally the safest type, because so long as they control the printing press then they can always print more money to pay you back. The Eurozone is a bit of an exception to this (understatement of the year) but in most of the other major sovereign bond markets like the US, Australian, the UK etc it’s true. Emerging markets are a bit different because they often issue debt in USD, which means that if things go pear shaped then they can’t just print more money to pay off bondholders. There can also be issues with getting your money back from sovereigns if they have too much debt, such as when they either don’t control the printing press (Greece) or the bond is issued in a different currency (Argentina) but for the most part if you lend money to a developed country in their own currency then you can pretty reliably count on getting your money back. There are also bonds issued by semi government organisations like the World Bank, European Bank for Reconstruction and Development etc, these are slightly less safe for the most part but you’re still not taking on much risk of not getting your money back. Debt issued by corporations is riskier, partly because businesses obviously can’t just print more money to pay you back, and because corporations can and do go bust. Sure it doesn’t seem likely that Telstra or Woolworths or the big banks are going to blow up any time soon, but there are plenty of other bond issuers out there with much more fragile finances. As you would expect the more risk you are taking on the more return you want in order to be compensation for doing so. This is because unlike a term deposit the value of your capital isn’t protected. If you put $10,000 into a term deposit for a year with an interest rate of 2%, then you know that in a year’s time you will get back that $10,000 plus $200 in interest. If for some reason the bank you invested that money through goes bust, the government will make you whole (up to the value of $250,000 per entity per approved deposit institution. If you invest in a corporate bond and the company goes bust, well you’re probably not going to get all or maybe any of your money back. The good news is that you’re more likely to get money back than equity holders, but if the debts of the company are a lot more than the assets then you’re going to be in trouble. There’s a clear framework for what happens if a company goes bust and who gets paid first and in how much etc, the short version of this is that equity holders are absolutely last in line but depending on what type of bonds you own you may not be a meaningful better position either. And unlike a stock, when you own a bond you don’t own a piece of the issuer of the bond, you just own part of their devt. So if the company does great and starts making a fortune, you as a bondholder don’t get paid any more than what the terms of the bond state. Basically you can get a fair chunk of the downside and none of the upside beyond the terms of the bond. On the plus side this doesn’t happen particularly often, most of the time you’ll get what you were promised Bond ratings Now obviously some companies are more secure and stable than others. If you take a bond from the biggest company in the ASX200 which is CBA, then it’s more likely to fulfil the terms of the bond than whatever the 200th company is. That’s not to say the 200th company won’t, just that there is more risk. The actual degree of this risk is quantified in a couple of different ways. First of all there are ratings agencies out there who will assign a rating from anywhere to super safe (AAA) to D (in default) with a bunch of graduations in between. Anything rated from AAA to BBB- is what is called Investment Grade (IG), everything below that is called High Yield (HY) or less politely Junk. Just because a bond is IG doesn’t guarantee it will pay off, likewise something which is HY isn’t guaranteed or even likely to fail. For the most part though the different ratings given tend to play out that way in the real world, with far less defaults for bonds rated AAA vs bonds rated BB for example. The big three ratings agencies are Standard & Poors (S&P), Moodys, and Fitch, and between them they’ll rate most of the bonds and/or issuers. They tend to be fairly backward looking in my opinion, and they were hugely and obviously wrong on rating mortgage backed securities back in the GFC. Still, they will generally give you a reasonable idea of the creditworthiness of the bond issuer. Because bonds are also traded in the marketplace you can take the yield offered on a bond with a particular maturity, compare it to an equivalent government bond, and using some fun math (yeah baby!) back out a credit spread which that bond trades over treasuries (or swaps but I’m not going to get into that). The higher the spread, the higher the perceived risk of the bond, and vice versa of course. Are bonds safe? Well it kinda depends on what you mean by safe. If you mean are the bonds likely to deliver what the issuer of the bonds promised, then generally yes. As I said with government and semi government bonds you will almost certainly get all your coupons and the maturity value of the bonds delivered on time. Yeah, there are some exceptions to this but you’re unlikely to run into trouble with Australia, the US, the UK, the more economically sensible members of the Eurozone etc. Similarly with corporates the vaast majority of the time you will get your money back on investment grade bonds, and it’s pretty rare to not get your money back on high yield bonds as well. That’s not to say it doesn’t happen, but it doesn’t happen much. If you mean am I going to get back what I put into the bond, well no they’re not necessarily safe, particularly if you sell before maturity. Remember when I said bonds are kinda like term deposits that can trade? Well when they trade those prices move around, and they can move around a lot! Why do bond prices move? There are a bunch of reasons why bond prices move around, the main ones are changes in the interest rate environment, changes in economic conditions, and changes specific to the issuer of the bond. We’ll talk about interest rates first. Bond prices have an inverse relationship with bond yields, which is a fancy way of saying if interest rates (yields) go down then bond prices go up. How much do they go up? Well that depends on the magnitude of the change in rates, and a bunch of factors involving the bond. Basically the longer till maturity on the bond, and the lower the coupon on the bond, the more sensitive it will be to changes in interest rates. This is measured using modified duration and convexity. Modified duration takes into account the timing of the cashflows of the bond (so coupons and maturity) and gives you a number which is typically a little less than that number of years to maturity, the higher the coupon the more it decreases the modified duration. If you multiply that modified duration by the change in interest rates in percentage terms, it will tell you how much the bond price will move by (in theory at least). So if you have a modified duration of say 7.117, then for every 1 percent move in interest rates the bond price will change by 7.117 points. So if your bond price was previously 100 and rates moved down by 1%, then your bond should now be worth 107.117. Happy days! Conversely if rates moved up, well your bond is now worth 92.883. Not so happy days. I’ve used the [ASX bond calculator](http://%20https//www.asx.com.au/asx/research/bondCalculator.do) to give a couple of examples using the current Aussie 10 year bond. You can hopefully see below that by changing the yield on the bond from 1.5% to 1% the market price has gone from 116.87 to 121.83, roughly a 4.25% change in price for a 0.5% change in rates, so presumably the modified duration on the bond is about 8.5. To make things slightly more complex, that relationship isn’t fixed due to something called convexity. Instead of being a linear relationship, it’s actually a changing one (a curve rather than a line). Basically the more bonds prices move away from where they were issued the more that relationship will change. Then there are things like GDP numbers, employment numbers, consumer sentiment surveys, PMI surverys, and all sorts of other economic news which will potentially move bond yields around, generally pretty slightly but it really depends on how important that economic number is and how much of a change from expectations it is. On top of that for corporations changes in their own situations will have an effect on what their credit rating/spread is which will affect prices as well. If a company goes from being loss making to suddenly making a profit, then that’s going to be good for their credit and the bond price is likely to go up. Bad news like a profit warning will potentially mean a higher credit spread and lower price for the bond. There is also general investor appetite for risk, so if investors are happy to take on more risk in their asset allocation (risk on) then they will likely sell off lower risk assets like bonds and buy higher risk assets like equities and to a lesser extent property. If things change and they want to go risk off, then the reverse happens and money tends to come out of equities and into bonds. What happens to bonds if the stock market crashes or we have another GFC? A stock market crash is actually one of the more compelling reasons to invest in bonds. This is because when stock markets crash investors tend to put their money into asset classes where they feel a lot safer ie, bonds. The rationale is that getting your money back is now hugely important, and even more important is not losing all your money as you will in those horrible equities which you knew you should never have invested in but that horrible financial adviser talked you into. People. Are. Not. Rational. People panic. People sell assets which are going down in value even though they know they should be holding on for the long term. This applies not just to retail investors, but also to professionals who should know better. In the GFC I spent plenty of time talking to institutional investors with a long term time horizon (ie 5 or 10 years etc) who suddenly decided they had to get out because of bad one month performance. People will bail out if the proverbial is hitting the fan. I wrote a bit about my experiences with the GFC here, and believe me there are a lot of people who are not going to be as cool calm and collected as they think they will be. It’s very very very very (extra very for emphasis) important to note here that at this point in time investors will not be thinking that all bonds are much the same. When they are looking for somewhere to put their money that they now have after panic selling out of equities, they will park it in the safest place they can find, ie government bonds (aka treasuries). This will cause the price of those bonds to rise because of supply and demand. If they still want to take on some amount of risk then they might put some into investment grade bonds, again this will push the price up a bit. They will almost certainly not put money into high yield bonds, because those are risky and in a crisis will behave pretty similarly to equities, ie they will fall in value. If anything they will more than likely try to pull money out of HY bonds, pushing the price down. This excellent post really shows this in the below graph which shows the average performance of different types of bonds for a 10% or greater fall in the stock market (all of this is for the US but the same principle applies to Australia). It doesn’t work in every case, as shown below (same source), but in almost all cases of a big crash in equities, treasury and to a lesser extent IG bonds gave you a big positive return to help out. HY, not so much and in some cases actually gave you a worse performance than equities themselves. Please believe me when I say it is a huge help psychologically to have some of your investments going up when the others are going down, which to me at least is a great reason to have some money invested in bonds. You’ve convinced me, how much should I have in bonds? Ok so I’m probably being slightly optimistic here given the number of posts I see on reddit about how VDHG would be so much better if Vanguard got rid of that terrible 10% that’s invested in bonds and put it all in equities instead. It would be nice to think though that some people are now realising that come the next crash they too might not behave entirely rationally, and it sure would be nice to own some assets that are going to zig when the stock market zags, so to speak. On the off chance that I have actually convinced people, well it really comes down to your particular risk profile. This is going to be hard to believe for some people, but in the US the default portfolio for most investors is 60% stocks and 40% bonds. Looking at Oz , the default balanced investment option for most super funds over here are supposed to have something like a 70:30 split between growth assets (shares and property) and defensive assets (bonds and cash) although the reality is a long long way from that if you actually look into how they invest (that’s a discussion for another time though). So that maybe provides a useful starting point. I know that the average FIRE portfolio that gets talked about particularly from younger bloggers (who have likely never experienced a sustained down market) is pretty much 100% equities and property, maybe even leveraged up. Which is fine if you can hold on through the downturns, but not everyone can do this because it is extremely difficult to do psychologically. I wish them all the best of luck, but I am pretty sure that at least some of them will decide that it’s all too much and sell whenever we have the next crash. There are exceptions to the rule though. One of my favourite bloggers, and someone who I know thinks deeply about this sort of stuff, is the FI Explorer who has about 15% in bonds and 15% in defensive alternatives (gold and bitcoin) as per his latest portfolio update. Whilst I don’t like Bitcoin myself, or gold for that matter, he writes a good explanation about why he holds both here. I still don’t like either asset myself, but I recognise that I am not infallible, I could well be wrong about this, and certainly historically they have worked well as hedges. In any case the more important point here is that there is basically a 30% allocation to what would be regarded as defensive type assets. This is actually a bit over his actual target of 25% in defensive assets, but he probably sleeps just fine at night. I’m a little more aggressive in only having about 21% of my assets (excluding PPoR) in cash and bonds, but it’s not a huge difference. Both of us have been invested through stock market crashes and hopefully have come to realise that we are not the hyper rational investors that economists believe we are, and therefore it’s best to have a bit invested in stuff that will go up or at least hold it’s value when everything else is crashing. How do I buy bonds? You can buy bonds individually, but you tend to need to have a fair amount of money to do so and you can run into a lot of problems with liquidity, big bid/ask spreads etc, it’s hard to build up a diversified portfolio etc. I buy bonds the same way I buy stocks, ie via an ETF. Most of the major ETF providers have some variety of index ETFs tracking Treasury only or Treasury plus Investment Grade bonds, or you can buy HY stuff if you want. Personally I just use one ETF which has about 75% in treasuries and the rest in IG. There are also some actively managed bond funds out there, either as ETFs or managed funds. For the reasons I outlined above about bonds being a psychological safe harbour I personally would (and do) only invest in bonds which are likely to up in a crisis, but different strokes for different folks applies as always. Any more questions? I’ve only really scratched the surface here of talking about bonds, but at the same time I feel like it’s an overwhelming amount of information. If you have more questions then as always I’m happy to answer them in the comments! Do you invest in bonds? If you enjoyed this post and would like to read more like it then please subscribe!
Transcript of discussion between an ASIC designer and several proof-of-work designers from #monero-pow channel on Freenode this morning
[08:07:01] lukminer contains precompiled cn/r math sequences for some blocks: https://lukminer.org/2019/03/09/oh-kay-v4r-here-we-come/ [08:07:11] try that with RandomX :P [08:09:00] tevador: are you ready for some RandomX feedback? it looks like the CNv4 is slowly stabilizing, hashrate comes down... [08:09:07] how does it even make sense to precompile it? [08:09:14] mine 1% faster for 2 minutes? [08:09:35] naturally we think the entire asic-resistance strategy is doomed to fail :) but that's a high-level thing, who knows. people may think it's great. [08:09:49] about RandomX: looks like the cache size was chosen to make it GPU-hard [08:09:56] looking forward to more docs [08:11:38] after initial skimming, I would think it's possible to make a 10x asic for RandomX. But at least for us, we will only make an ASIC if there is not a total ASIC hostility there in the first place. That's better for the secret miners then. [08:13:12] What I propose is this: we are working on an Ethash ASIC right now, and once we have that working, we would invite tevador or whoever wants to come to HK/Shenzhen and we walk you guys through how we would make a RandomX ASIC. You can then process this input in any way you like. Something like that. [08:13:49] unless asics (or other accelerators) re-emerge on XMR faster than expected, it looks like there is a little bit of time before RandomX rollout [08:14:22] 10x in what measure? $/hash or watt/hash? [08:14:46] watt/hash [08:15:19] so you can make 10 times more efficient double precisio FPU? [08:16:02] like I said let's try to be productive. You are having me here, let's work together! [08:16:15] continue with RandomX, publish more docs. that's always helpful. [08:16:37] I'm trying to understand how it's possible at all. Why AMD/Intel are so inefficient at running FP calculations? [08:18:05] midipoet ([email protected]/web/irccloud.com/x-vszshqqxwybvtsjm) has joined #monero-pow [08:18:17] hardware development works the other way round. We start with 1) math then 2) optimization priority 3) hw/sw boundary 4) IP selection 5) physical implementation [08:22:32] This still doesn't explain at which point you get 10x [08:23:07] Weren't you the ones claiming "We can accelerate ProgPoW by a factor of 3x to 8x." ? I find it hard to believe too. [08:30:20] sure [08:30:26] so my idea: first we finish our current chip [08:30:35] from simulation to silicon :) [08:30:40] we love this stuff... we do it anyway [08:30:59] now we have a communication channel, and we don't call each other names immediately anymore: big progress! [08:31:06] you know, we russians have a saying "it was smooth on paper, but they forgot about ravines" [08:31:12] So I need a bit more details [08:31:16] ha ha. good! [08:31:31] that's why I want to avoid to just make claims [08:31:34] let's work [08:31:40] RandomX comes in Sep/Oct, right? [08:31:45] Maybe [08:32:20] We need to audit it first [08:32:31] ok [08:32:59] we don't make chips to prove sw devs that their assumptions about hardware are wrong. especially not if these guys then promptly hardfork and move to the next wrong assumption :) [08:33:10] from the outside, this only means that hw & sw are devaluing each other [08:33:24] neither of us should do this [08:33:47] we are making chips that can hopefully accelerate more crypto ops in the future [08:33:52] signing, verifying, proving, etc. [08:34:02] PoW is just a feature like others [08:34:18] sech1: is it easy for you to come to Hong Kong? (visa-wise) [08:34:20] or difficult? [08:34:33] or are you there sometimes? [08:34:41] It's kind of far away [08:35:13] we are looking forward to more RandomX docs. that's the first step. [08:35:31] I want to avoid that we have some meme "Linzhi says they can accelerate XYZ by factor x" .... "ha ha ha" [08:35:37] right? we don't want that :) [08:35:39] doc is almost finished [08:35:40] What docs do you need? It's described pretty good [08:35:41] so I better say nothing now [08:35:50] we focus on our Ethash chip [08:36:05] then based on that, we are happy to walk interested people through the design and what else it can do [08:36:22] that's a better approach from my view than making claims that are laughed away (rightfully so, because no silicon...) [08:36:37] ethash ASIC is basically a glorified memory controller [08:36:39] sech1: tevador said something more is coming (he just did it again) [08:37:03] yes, some parts of RandomX are not described well [08:37:10] like dataset access logic [08:37:37] RandomX looks like progpow for CPU [08:37:54] yes [08:38:03] it is designed to reflect CPU [08:38:34] so any ASIC for it = CPU in essence [08:39:04] of course there are still some things in regular CPU that can be thrown away for RandomX [08:40:20] uncore parts are not used, but those will use very little power [08:40:37] except for memory controller [08:41:09] I'm just surprised sometimes, ok? let me ask: have you designed or taped out an asic before? isn't it risky to make assumptions about things that are largely unknown? [08:41:23] I would worry [08:41:31] that I get something wrong... [08:41:44] but I also worry like crazy that CNv4 will blow up, where you guys seem to be relaxed [08:42:06] I didn't want to bring up anything RandomX because CNv4 is such a nailbiter... :) [08:42:15] how do you guys know you don't have asics in a week or two? [08:42:38] we don't have experience with ASIC design, but RandomX is simply designed to exactly fit CPU capabilities, which is the best you can do anyways [08:43:09] similar as ProgPoW did with GPUs [08:43:14] some people say they want to do asic-resistance only until the vast majority of coins has been issued [08:43:21] that's at least reasonable [08:43:43] yeah but progpow totally will not work as advertised :) [08:44:08] yeah, I've seen that comment about progpow a few times already [08:44:11] which is no surprise if you know it's just a random sales story to sell a few more GPUs [08:44:13] RandomX is not permanent, we are expecting to switch to ASIC friendly in a few years if possible [08:44:18] yes [08:44:21] that makes sense [08:44:40] linzhi-sonia: how so? will it break or will it be asic-able with decent performance gains? [08:44:41] are you happy with CNv4 so far? [08:45:10] ah, long story. progpow is a masterpiece of deception, let's not get into it here. [08:45:21] if you know chip marketing it makes more sense [08:45:24] linzhi-sonia: So far? lol! a bit early to tell, don't you think? [08:45:35] the diff is coming down [08:45:41] first few hours looked scary [08:45:43] I remain skeptical: I only see ASICs being reasonable if they are already as ubiquitous as smartphones [08:45:46] yes, so far so good [08:46:01] we kbew the diff would not come down ubtil affter block 75 [08:46:10] yes [08:46:22] but first few hours it looks like only 5% hashrate left [08:46:27] looked [08:46:29] now it's better [08:46:51] the next worry is: when will "unexplainable" hashrate come back? [08:47:00] you hope 2-3 months? more? [08:47:05] so give it another couple of days. will probably overshoot to the downside, and then rise a bit as miners get updated and return [08:47:22] 3 months minimum turnaround, yes [08:47:28] nah [08:47:36] don't underestimate asicmakers :) [08:47:54] you guys don't get #1 priority on chip fabs [08:47:56] 3 months = 90 days. do you know what is happening in those 90 days exactly? I'm pretty sure you don't. same thing as before. [08:48:13] we don't do any secret chips btw [08:48:21] 3 months assumes they had a complete design ready to go, and added the last minute change in 1 day [08:48:24] do you know who is behind the hashrate that is now bricked? [08:48:27] innosilicon? [08:48:34] hyc: no no, and no. :) [08:48:44] hyc: have you designed or taped out a chip before? [08:48:51] yes, many years ago [08:49:10] then you should know that 90 days is not a fixed number [08:49:35] sure, but like I said, other makers have greater demand [08:49:35] especially not if you can prepare, if you just have to modify something, or you have more programmability in the chip than some people assume [08:50:07] we are chipmakers, we would never dare to do what you guys are doing with CNv4 :) but maybe that just means you are cooler! [08:50:07] and yes, programmability makes some aspect of turnaround easier [08:50:10] all fine [08:50:10] I hope it works! [08:50:28] do you know who is behind the hashrate that is now bricked? [08:50:29] inno? [08:50:41] we suspect so, but have no evidence [08:50:44] maybe we can try to find them, but we cannot spend too much time on this [08:50:53] it's probably not so much of a secret [08:51:01] why should it be, right? [08:51:10] devs want this cat-and-mouse game? devs get it... [08:51:35] there was one leak saying it's innosilicon [08:51:36] so you think 3 months, ok [08:51:43] inno is cool [08:51:46] good team [08:51:49] IP design house [08:51:54] in Wuhan [08:52:06] they send their people to conferences with fake biz cards :) [08:52:19] pretending to be other companies? [08:52:26] sure [08:52:28] ha ha [08:52:39] so when we see them, we look at whatever card they carry and laugh :) [08:52:52] they are perfectly suited for secret mining games [08:52:59] they made at most $6 million in 2 months of mining, so I wonder if it was worth it [08:53:10] yeah. no way to know [08:53:15] but it's good that you calculate! [08:53:24] this is all about cost/benefit [08:53:25] then you also understand - imagine the value of XMR goes up 5x, 10x [08:53:34] that whole "asic resistance" thing will come down like a house of cards [08:53:41] I would imagine they sell immediately [08:53:53] the investor may fully understand the risk [08:53:57] the buyer [08:54:13] it's not healthy, but that's another discussion [08:54:23] so mid-June [08:54:27] let's see [08:54:49] I would be susprised if CNv4 ASICs show up at all [08:54:56] surprised* [08:54:56] why? [08:55:05] is only an economic question [08:55:12] yeah should be interesting. FPGAs will be near their limits as well [08:55:16] unless XMR goes up a lot [08:55:19] no, not *only*. it's also a technology question [08:55:44] you believe CNv4 is "asic resistant"? which feature? [08:55:53] it's not [08:55:59] cnv4 = Rabdomx ? [08:56:03] no [08:56:07] cnv4=cryptinight/r [08:56:11] ah [08:56:18] CNv4 is the one we have now, I think [08:56:21] since yesterday [08:56:30] it's plenty enough resistant for current XMR price [08:56:45] that may be, yes! [08:56:55] I look at daily payouts. XMR = ca. 100k USD / day [08:57:03] it can hold until October, but it's not asic resistant [08:57:23] well, last 24h only 22,442 USD :) [08:57:32] I think 80 h/s per watt ASICs are possible for CNv4 [08:57:38] linzhi-sonia where do you produce your chips? TSMC? [08:57:44] I'm cruious how you would expect to build a randomX ASIC that outperforms ARM cores for efficiency, or Intel cores for raw speed [08:57:48] curious [08:58:01] yes, tsmc [08:58:21] Our team did the world's first bitcoin asic, Avalon [08:58:25] and upcoming 2nd gen Ryzens (64-core EPYC) will be a blast at RandomX [08:58:28] designed and manufactured [08:58:53] still being marketed? [08:59:03] linzhi-sonia: do you understand what xmr wants to achieve, community-wise? [08:59:14] Avalon? as part of Canaan Creative, yes I think so. [08:59:25] there's not much interesting oing on in SHA256 [08:59:29] Inge-: I would think so, but please speak [08:59:32] hyc: yes [09:00:28] linzhi-sonia: i am curious to hear your thoughts. I am fairly new to this space myself... [09:00:51] oh [09:00:56] we are grandpas, and grandmas [09:01:36] yet I have no problem understanding why ASICS are currently reviled. [09:01:48] xmr's main differentiators to, let's say btc, are anonymity and fungibility [09:01:58] I find the client terribly slow btw [09:02:21] and I think the asic-forking since last may is wrong, doesn't create value and doesn't help with the project objectives [09:02:25] which "the client" ? [09:02:52] Monero GUI client maybe [09:03:12] MacOS, yes [09:03:28] What exactly is slow? [09:03:30] linzhi-sonia: I run my own node, and use the CLI and Monerujo. Have not had issues. [09:03:49] staying in sync [09:03:49] linzhi-sonia: decentralization is also a key principle [09:03:56] one that Bitcoin has failed to maintain [09:04:39] hmm [09:05:00] looks fairly decentralized to me. decentralization is the result of 3 goals imo: resilient, trustless, permissionless [09:05:28] don't ask a hardware maker about physical decentralization. that's too ideological. we focus on logical decentralization. [09:06:11] physical decentralization is important. with bulk of bitnoin mining centered on Chinese hydroelectric dams [09:06:19] have you thought about including block data in the PoW? [09:06:41] yes, of course. [09:07:39] is that already in an algo? [09:08:10] hyc: about "centered on chinese hydro" - what is your source? the best paper I know is this: https://coinshares.co.uk/wp-content/uploads/2018/11/Mining-Whitepaper-Final.pdf [09:09:01] linzhi-sonia: do you mine on your ASICs before you sell them? [09:09:13] besides testing of course [09:09:45] that paper puts Chinese btc miners at 60% max [09:10:05] tevador: I think everybody learned that that is not healthy long-term! [09:10:16] because it gives the chipmaker a cost advantage over its own customers [09:10:33] and cost advantage leads to centralization (physical and logical) [09:10:51] you guys should know who finances progpow and why :) [09:11:05] but let's not get into this, ha ha. want to keep the channel civilized. right OhGodAGirl ? :) [09:11:34] tevador: so the answer is no! 100% and definitely no [09:11:54] that "self-mining" disease was one of the problems we have now with asics, and their bad reputation (rightfully so) [09:13:08] I plan to write a nice short 2-page paper or so on our chip design process. maybe it's interesting to some people here. [09:13:15] basically the 5 steps I mentioned before, from math to physical [09:13:32] linzhi-sonia: the paper you linked puts 48% of bitcoin mining in Sichuan. the total in China is much more than 60% [09:13:38] need to run it by a few people to fix bugs, will post it here when published [09:14:06] hyc: ok! I am just sharing the "best" document I know today. it definitely may be wrong and there may be a better one now. [09:14:18] hyc: if you see some reports, please share [09:14:51] hey I am really curious about this: where is a PoW algo that puts block data into the PoW? [09:15:02] the previous paper I read is from here http://hackingdistributed.com/2018/01/15/decentralization-bitcoin-ethereum/ [09:15:38] hyc: you said that already exists? (block data in PoW) [09:15:45] it would make verification harder [09:15:49] linzhi-sonia: https://the-eye.eu/public/Books/campdivision.com/PDF/Computers%20General/Privacy/bitcoin/meh/hashimoto.pdf [09:15:51] but for chips it would be interesting [09:15:52] we discussed the possibility about a year ago https://www.reddit.com/Monero/comments/8bshrx/what_we_need_to_know_about_proof_of_work_pow/ [09:16:05] oh good links! thanks! need to read... [09:16:06] I think that paper by dryja was original [09:17:53] since we have a nice flow - second question I'm very curious about: has anyone thought about in-protocol rewards for other functions? [09:18:55] we've discussed micropayments for wallets to use remote nodes [09:18:55] you know there is a lot of work in other coins about STARK provers, zero-knowledge, etc. many of those things very compute intense, or need to be outsourced to a service (zether). For chipmakers, in-protocol rewards create an economic incentive to accelerate those things. [09:19:50] whenever there is an in-protocol reward, you may get the power of ASICs doing something you actually want to happen [09:19:52] it would be nice if there was some economic reward for running a fullnode, but no one has come up with much more than that afaik [09:19:54] instead of fighting them off [09:20:29] you need to use asics, not fight them. that's an obvious thing to say for an asicmaker... [09:20:41] in-protocol rewards can be very powerful [09:20:50] like I said before - unless the ASICs are so useful they're embedded in every smartphone, I dont see them being a positive for decentralization [09:21:17] if they're a separate product, the average consumer is not going to buy them [09:21:20] now I was talking about speedup of verifying, signing, proving, etc. [09:21:23] they won't even know what they are [09:22:07] if anybody wants to talk about or design in-protocol rewards, please come talk to us [09:22:08] the average consumer also doesn't use general purpose hardware to secure blockchains either [09:22:14] not just for PoW, in fact *NOT* for PoW [09:22:32] it requires sw/hw co-design [09:23:10] we are in long-term discussions/collaboration over this with Ethereum, Bitcoin Cash. just talk right now. [09:23:16] this was recently published though suggesting more uptake though I guess https://btcmanager.com/college-students-are-the-second-biggest-miners-of-cryptocurrency/ [09:23:29] I find it pretty hard to believe their numbers [09:24:03] well [09:24:09] sorry, original article: https://www.pcmag.com/news/366952/college-kids-are-using-campus-electricity-to-mine-crypto [09:24:11] just talk, no? rumors [09:24:18] college students are already more educated than the average consumer [09:24:29] we are not seeing many such customers anymore [09:24:30] it's data from cisco monitoring network traffic