Bitcoin and the possibility of a super cycle

Original article at TrendingTopics in German HERE

Bitcoin fans are excited. Three years passed before Bitcoin reached a new all-time-high at 28,000 US dollars again. The last massive rise happened in 2017, when the digital cryptocurrency made a fabulous run from US$1,000 at the beginning of the year to US$19,655. In a super cycle, price jumps beyond a million euros for a bitcoin are mathematically conceivable due to network effects, the fixed bitcoin money supply, the increasing sluggishness of gold. Purely hypothetical, but possible.

Much seems similar now at first glance. but this time much is different:

  • the COVID pandemic of the century is keeping the world on tenterhooks.
  • Bitcoin is now being called the gold 2.0, the digital version of the store-of-value gold
  • institutional investors stepped in to buy the blockchain-based currency after the crash in 2018
  • Bitcoin is now much more user-friendly than it was three years ago

Bitcoin’s super cycle
But something else could be happening: The cryptocurrency could also defy classic thought models of a bull/bear cycle, break all conventions and experience a massive price increase through a “super cycle”. Bitcoin’s market cycle is typically around four years, and some experts hypothesize that the super
cycle could be triggered by the “halving” written into the blockchain code, the pre-programmed halving of Bitcoin’s new supply.

Bitcoin inventor Satoshi Nakamoto had the idea that reducing the supply of digital coins by halving them over time while increasing demand would create more value. An accepted explanatory model among experts for Bitcoin’s viral market loops is gradual scarcity. Specifically, Satoshi Nakamoto explains in the Bitcoin white paper:

As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as the number of users increases, the value increases, which could attract more users to benefit from the increasing value.

As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as the number of users increases, the value increases, which could attract more users to benefit from the increasing value.

Satoshi Nakamoto white paper

Satoshi is thus addressing network effects, postulating them at a time when Bitcoin had a value of 50 cents. In the chart below we have the bitcoin price and halves, which are the dashed lines. It is clear to see that there has been a bull run after each halving:

© http://www.investopedia.com

What is different from 2017?


The difference this time is that Bitcoin has strong fundamentals and there are additional substantive reasons for the price rise: Bitcoin is now needed to hedge against impending inflation. This narrative makes 2020 unique for the largest cryptocurrency.

Bitcoin was launched during the 2008 financial crisis and is a counter-model to what Nakamoto saw as an ailing financial and banking system at the time. The global economy has grown steadily since then, with no significant recessions in traditional financial markets since 2008. This changed with Corona: a veritable health crisis developed as an accelerant to a monstrous economic crisis, the most severe recession since the world wars, far more dramatic than 2008.

And this is the first litmus test for Bitcoin. Will all the Bitcoin disciples and crypto fans lose their nerve and sell? Will the Bitcoin price plummet as the global economy staggers? Is Bitcoin not a “safe haven” in times of crisis after all and cannot hold its own against gold and real estate as a valuable asset class?

At first, everything pointed to this: Bitcoin crashed dramatically along with the stock markets on 13 March 2020, Black Friday, to 4,121 US dollars. But the much-criticised cryptocurrency experienced a resurrection and emerged from this crisis strengthened, as we stand today at a price of 28,000 US dollars.

Inflation of fiat currencies


While Bitcoin was recovering, governments were outbidding each other with bailout programmes that they funded by printing money. And this cranking up of the money printing presses is unprecedented in financial history: Never before has the money supply been increased so massively in such a short time. But central banks are also moving with the times: they are not printing money, but buying bonds from financial institutions and banks and transferring fresh fiat money created out of thin air. Commercial banks put the fresh funds into circulation in the form of loans.

This means that governments are currently actively devaluing their currency. And this is exactly the scenario against which Bitcoin is one of the remedies: an inflation-proof currency that is not controlled by a state, whose money supply cannot be expanded at will. On the contrary, through halving, a smaller amount of Bitcoins is gradually issued, or more precisely only half of them at a time, until all 21 million Bitcoins have been distributed among the people.

Bitcoin as a store of value


Bitcoin was created as a store of value in a world where you cannot trust your government or bank. Such moments do not come often in life, world financial crises are rare, but the current financial crisis is a key event that could help Bitcoin to super-cycle and thereby dramatically increase in value.

In addition to the Corona crisis, there is another aspect: in contrast to 2017, institutional investors are adding this new digital asset class to their portfolios and buying Bitcoin in large quantities. Whereas in 2017 it was mainly retail investors and computer geeks who caused the bull run, now FOMO, the “Fear Of Missing Out”, is being felt by large investors: when COVID brought turmoil to the markets, financial service providers, pension funds and asset managers were looking for safe asset classes. Bitcoin offered itself as a store of value, as it proved to be better than gold, with a lot of imagination, carried by the tailwinds of digitalisation and with high upside potential.

Who are the main banks and financial services providers that have stocked up on Bitcoins, the “digital gold”, in the last three months:

  • JP Morgan
  • Fidelity
  • Bloomberg
  • Deutsche Bank
  • Citibank
  • Blackrock
  • PayPal
  • and many more.

Bitcoin shook off competitors


When Bitcoin had to contend with many serious competitors during the bull market of 2017, there are now no opponents left in the field. We remember the ICOs of 2016 to 2018, Initial Coin Offerings, with which blockchain startups tried to raise money and develop similar applications to Bitcoin and Ethereum, the second largest cryptocurrency. This was done by issuing coins and tokens that were in direct competition with Bitcoin. What followed was a bloodbath: almost all ICOs failed, the cryptocurrencies, often called shitcoins, lost value, only a few blockchain startups survived.

Annoying forks no longer play a role


Another opponent was the Bitcoin family itself. For the once sworn Bitcoin community of the years 2013 – 2015 was joined by the desire for technical further development of Bitcoin, added to this was the greed of some involved and high criminal energy of a get-rich-quick mania. As a result, the Bitcoin blockchain, loosely translated as a chain of data blocks, was often split and forked in fierce trench warfare, and Bitcoin spin-offs were created. The most important Bitcoin fork and competitor was Bitcoin Cash, which saw itself as a means of payment with which small amounts could have been settled quickly at the cash register. But the Bitcoin-Cash narrative did not catch on. Another important fork was Litecoin, which had already split off in 2011. However, Litecoin did not make the breakthrough either, the reason being that Litecoin founder Charlie Lee sold all his Litecoins at the last all-time high in December 2017 and left the project, the background of the exit is still not completely clear. Other Bitcoin competitors are Bitcoin SV (Satoshi version), Bitcoin Gold, Bitcoin Diamond, Bitcoin Zeo, Bitcoin Private, Super Bitcoin, all of no significance today.

Bitcoin unchallenged at the top


In 2020, Bitcoin clearly led the cryptocurrencies, the narrative of digital “Gold 2.0” bringing the coin a crucial unique selling point.

In the early years of Bitcoin, it was difficult for many people to buy Bitcoin and keep it safe. You often had to make a transfer in advance and then trust that the cryptocurrency exchange would actually buy the Bitcoins for you. Today, crypto exchanges are controlled by state supervisory authorities, in Austria by the Financial Market Authority. Numerous cryptocurrency exchanges with excellent user experience and impeccable services are now available to buyers. In addition, PayPal offer Bitcoin as a means of payment, and the Stuttgart stock exchange operates its own app Bison, which can be used to buy Bitcoin.

Is the super cycle coming?


If and when there will be a Bitcoin super-cycle cannot be predicted. However, compared to currencies, bonds, stocks and gold, a super cycle is more likely. This is because one should ask what will happen when part of the world’s managed wealth flows into Bitcoin. World financial assets are estimated at around €100 trillion. Even if only 0.01% of this is invested in Bitcoin, this could bring an almost unbelievable price increase to unimagined heights.

Here we are no longer talking about a rise from 20,000 US dollars to 100,000 US dollars, which is the result of the Fibonacci chart technique used many times.

In a super cycle, price jumps beyond a million euros for a bitcoin are mathematically conceivable due to network effects, the fixed bitcoin money supply, the increasing sluggishness of gold. Purely hypothetical. The super-cycle is where Bitcoin’s imagination lies, which other asset classes usually lack. That makes Bitcoin unique.

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Stablecoin Tether now third largest crypto – Ripple dropped to fourth


Original article at TrendingTopics in German HERE


Tether (UDST) has overtaken Ripple (XRP) in the market cap ranking as the world’s largest stablecoin. This comes at a crucial time, as the cryptocurrency market has been experiencing an absolute surge for weeks. While Bitcoin and Ethereum remained unchallenged in first and second place in this autumn run, the third place on the podium is far more contested.

Yesterday, Tether clearly prevailed over XRP: The crisis-ridden blockchain project Ripple, with a market cap of 15.9 billion, clearly fell behind, while the US dollar-pegged Tether stablecoin rapidly caught up, beating XRP by a long way with a market cap of 20.4 billion.

Tether has been ahead before
The recent movement of the third and fourth places is not new in the 2020 crypto market. Tether was already ahead this year in May and September, surpassing XRP as the third largest cryptocurrency by market cap, but crashed afterwards. The reason for this was emerging doubts as to whether the stablecoin Tether is actually sufficiently secured by capital reserves and can actually maintain its price peg to the US dollar.

This discussion is now off the table, because confidence in Tether has grown strongly. In addition, Tether’s jump to the top spot is trend-setting, because USDT, as the acronym is called, is used for buying and selling other cryptocurrencies and is a reliable indicator of trading activity and thus sentiment in the cryptocurrency market.

XRP crash due to SEC lawsuit
The drop in XRP comes at the worst possible time, as yesterday the US financial markets regulator SEC announced a fat lawsuit against San Francisco-based Ripple, causing the XRP coin to fall a further 25%. Ripple and its founders Garlinghouse and Chris Larsen are accused by the SEC of taking a whopping $1.3 billion over the years in a securities offering for digital assets.

Ripple’s lurching price
Ripple is further burdened by a lurch in its business model: as recently as the summer, Emi Yoshikawa, Ripple senior director of global operation, claimed that XRP does not compete with either stablecoins or central bank digital currencies (CBDCs). According to Yoshikawa, Ripple was supposed to develop in a complementary way to stablecoins and CBDC. This direction is now being changed, as last week Ross Edwards, Ripple Global Head of Client Solutions made people sit up and take notice when he gave CBDCs and blockchain technology a key role in shaping the future of a global and interoperable financial system in a presentation.

Edwards emphasised that Ripple has built good relationships with the existing financial ecosystem through its partnerships. Ripple’s clients include some of the world’s major financial institutions such as Banco Santander and Bank of America. In addition, Edwards pointed out that Ripple is developing products, solutions and initiatives to provide businesses with a next-generation cross-border payments infrastructure, as he explained in a presentation on 14 December 2020.

Specifically, Edwards believes that Ripple’s products will be used to address and solve real-world problems, adding that “…Ripple is able to further leverage this technology as infrastructure suitable for the exploration, ideation and eventual deployment of a fully functional CBDC.” So CBDC after all: Ripple plans to position itself as an infrastructure provider for central bank currencies. The SEC’s lawsuit could permanently tarnish Ripple and massively impact its CBDC strategy.

Tether’s 3rd place sustainable?
Yes, Tether is likely to hold third place and prevail over Ripple in the long run. This is because Tether’s high market cap runs parallel to massive growth in other stablecoins this year. Both Tether and the stablecoin USDCoin (USDC) have recently cleared important hurdles, with USDC passing the US$1 billion trading volume mark in July 2020.

Unlike volatile crypto assets such as Bitcoin (BTC), stablecoins such as USDT and USDC are designed to provide a digital version of fiat currencies with a fixed peg to the US dollar, ensuring a ‘stable’ price. The one-to-one peg to the USD means that the price of Tether is always equal to one US dollar.

As a stable cryptocurrency, Tether is by far the largest cryptocurrency in terms of daily transaction volume. It is also exciting that at the time of going to press, Tether’s daily trading volume was more than 73 billion US dollars, while Bitcoin only has 45 billion in 24h trading volume.

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Where does Bitcoin go from here, Robby Schwertner?

Austria´s Innovation Magazine Brutkasten published an interview with me on Bitcoin, which hit an all-time-high of 20.000 USD.

Now that Bitcoin has surpassed the magic mark of 20,000 US dollars, many are wondering what will happen next with the “digital gold”. Crypto expert Robert Schwertner gave us his take on this.

Crypto expert Robby Schwertner sees two ways Bitcoin can continue:

It happened. Bitcoin managed to do what it failed to do three years ago in the “crypto hype”: Surpassing the $20,000 mark. Crypto expert Robby Schwertner, aka CryptoRobby, saw this development coming, as he explains to Brutkasten: “This has been on the horizon since Paypal allowed payment with Bitcoin and some companies are buying massively to hedge against impending inflation.”

“Market capitalization of 1000 billion conceivable”
When asked how the cryptocurrency will now continue, Schwertner sees two possible scenarios:
“Either Bitcoin continues to go up. The market capitalization today is 367 billion US dollars – 1000 billion is conceivable, which means a BTC price of over 50,000 euros,” says the crypto expert, but he also sees a second possible development.

Robby Schwertner: “Completely new group of investors”.
“Or it repeats the scenario at the turn of the year 2017/2018 and the 20,000 is a ‘bounce-back’ limit that cannot be overcome sustainably. However, the fact that a completely new group of investors is now entering the market argues against this version,” he says. Schwertner is referring to institutional investors, pension funds or family foundations that are turning to alternative asset classes due to the threat of inflation “from massive money printing by central banks.”

The “digital gold”
“Bitcoin, which is already being referred to as the ‘digital gold,’ has its finger on the pulse,” concludes crypto-influencer Schwertner: “Values can be transferred in a cheap, fast and in secure way via the Internet. Even although most people don’t believe it yet – Bitcoin meets these criteria.”

Source: DerBrutkasten

#China Crypto ranking: #1 EOS #2 Ethereum

The Chinese Center for Information and Industry Development (CCID) has presented the twentieth report evaluating the best crypto currencies on the market. EOS is still in first place, followed by Ethereum, IOST and TRON in 4th place.


The Chinese Ministry of Industry and Information Technology has presented its new project report, which examines the most valuable crypto currencies on the market based on various parameters. The authority updates this ranking once a month and wants to give potential investors and companies a first overview.

EOS further ahead, Ethereum fights its way up to 2nd plac


The top 3 crypto currencies have changed slightly. EOS is still in first place with 145.5 points, followed by Ethereum (formerly 3rd place) and IOST (formerly 4th place). TRON has dropped slightly to fourth place. IOTA, on the other hand, was able to advance to 30th place, after ranking 37th in last month’s ranking.

According to official information of the CCID, the analysis considers different indicators and categories in order to be able to illustrate the complex world of crypto currencies in a matrix in a simple and understandable way. The report goes on to say that the index assesses, among other things, the ability to use the currency in business and industry as well as in people’s everyday lives.

Beyond that the ranking possesses also a “creativity index”, which is not further in detail described, however with Bitcoin with 43,8 is largest. The strongest weighting in the Ranking finds the following metrics: Applicability, availability and adaptation of wallets, nodes, and the provision of a suitable test environment for developers.

Although some companies in the industry regard this ranking as useful, it has often been criticized in the past. Thus, the founder of QTUM, Patrick Dai, wondered why his crypto currency rose in the ranking even though there were no significant updates in the software or roadmap. He states:

Representatives from VeChain and IOTA were also wondering how the exact rating and ranking was arrived at. VeChain has numerous partnerships with the largest companies in the world and most recently received the China Green Technology Innovation Award at the largest high-tech exhibition in China. Also a consideration of the patents, which IOTA references as valuable technology, draws a clearly different picture.

For this purpose, IOTA Archive has examined the relationship between the number of patent references and the number of days since the respective start of the crypto currency. It was found that IOTA is in sixth place with 245 patent references, behind Bitcoin (8,806), Ethereum (4,530x), Litecoin (785x), Ripple (725x) and EOS (325x).

Although IOTA is one of the supposedly “young” crypto currencies on the market, companies are increasingly interested in tangle technology. The CCID has not yet disclosed the exact metrics, so the criticism from industry experts seems to be justified.

The magic of Ethereum 2

Pic: cointelegraph

BREAKING: Ethereum 2 has been launched TODAY! 🚀🚀🚀

A new age of #Blockchain has just begun! 😇

Vitalik Buterin and his team decided in 2014 to change from energy-consuming Proof of Work to a more efficient Proof of Stake consensus mechanism.

In the “eth2 quick update no. 19” the launch of Ethereum 2 has been announced!

It´s like introducing a new currency or shift from horse carriages to automobiles. It´s a tremendous leap forward for decentralized systems!

In the first 4 hours over 230 times 32 Ether (totaling 2.9 Mio USD) have been transferred to the new system.

To trigger genesis at this time, there must be at least 16384 times 32-ETH validator deposits 7 days prior to December 1 2020. If not, genesis will be triggered 7 days after this threshold has been met (whenever that may be). For a more detailed discussion of how genesis is kicked off, see Ben Edgington’s genesis writeup.

Ethereum 2.0 Phase 0 has now been formalized for launch at some time around Dec. 1. The deposit contract is live and can collect the necessary funds to trigger staking.

An update by the Ethereum Foundation released on Wednesday explains how the genesis process is expected to happen.

Prospective stakers will now be able to deposit their 32 Ether (ETH) deposits to the contract via the dedicated launchpad and get ready for the launch.

The contract must collect 16384 deposits of 32 ETH each, a total of 524,288 ETH or about $200 million, to proceed with the launch.

The required sum must be collected at least seven days before the expected launch date of Dec. 1. If it is not, the launch is delayed to seven days after the threshold is reached.

The announcement marks the first time that a clear date for Ethereum 2.0 launch is set, after many years of anticipation and delays.

The community signaled its readiness, but there may still be potential issues in the clients. The Medalla testnet’s reliability has wavered in the past days, often failing to finalize due to issues with participation. While many believe this is due to the lack of incentives to staking, some issues in the software were reported as well. Nonetheless, the team considers most software clients to be “mainnet launch-ready.”

The end of one journey also marks the beginning of another — the launch of Phase 0 will not directly affect the existing Ethereum blockchain, which will continue operating as before with proof-of-work mining.

The Phase 1 and Phase 2 transitions, expected to occur in the next few years, will at some point move the existing Ethereum infrastructure and state to the new staking-based consensus.

#Ethereum is the second largest blockchain after #Bitcoin. However, in terms of adaptation and innovation it has a brighter future than #Bitcoin as more than 4,5 million different token have been issued on this truly decentralised blockchain. Moreover, #Ethereum will also use almost no energy in the future. And more than 46000 startups and industry enterprises are actively using this blockchain for their applications.

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Paypal to open up to Bitcoin

The German headquarters of PayPal is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow
The German headquarters of PayPal is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow

Reuters reports that PayPal Holdings announced on Wednesday it will allow customers to hold Bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies at the 26 million merchants on its network.

The new service makes PayPal one of the largest U.S. companies to provide consumers access to cryptocurrencies, which could help bitcoin and rival cryptocurrencies gain wider adoption as viable payment methods.

The San Jose, California-based company hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that central banks and companies may develop, President and Chief Executive Dan Schulman said in an interview.

“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” he said.

U.S. account holders will be able to buy, sell and hold cryptocurrencies in their PayPal wallets over the coming weeks, the company said. PayPal plans to expand the service to its peer-to-peer payment app Venmo and some other countries in the first half of 2021.

The ability to make payments with cryptocurrencies will be available from early next year, the company said.

Other mainstream fintech companies, such as mobile payments provider Square Inc and stock trading app firm Robinhood Markets Inc, allow users to buy and sell cryptocurrencies, but PayPal’s launch is noteworthy given its size.

The company has 346 million active accounts around the world and processed $222 billion in payments in the second quarter.

PayPal’s shares were up 4% at 1418 GMT, set for their best day in a month.

Bitcoin hit its highest since July 2019 on the news. It was last up 4.8% at $12,494, taking gains for the original and biggest cryptocurrency above 75% for the year. Cryptocurrency market players said the size of PayPal meant the move would be a plus for bitcoin prices. “The price impact will be positive overall,” Joseph Edwards of Enigma Securities, a cryptocurrency brokerage in London, said. “There’s no comparison with regards to the potential exposure between the upside of PayPal offering this, and the upside of any similar previous offering.”

VOLATILITY

Bitcoin and other virtual coins have struggled to become established as widely used forms of payment despite being around for more than a decade. Cryptocurrencies’ volatility is attractive for speculators, but poses risks for merchants and shoppers. Transactions are also slower and more costly than other mainstream payment systems.

PayPal believes its new system will address these issues as payments will be settled using traditional currencies, such as the U.S. dollar. This means PayPal will be managing the risk of price fluctuations and merchants will receive payments in virtual coins.

“We are going about it in a fundamentally different way to make sure we provide the maximum amount of safety to our merchants,” Schulman said.

PayPal’s service comes as some central banks have announced plans to develop digital versions of their currencies, following a Facebook-led <FB.O> cryptocurrency project Libra in 2019, which was met by strong regulatory pushback..

PayPal was among the founding members of this project but dropped out after a few months.

PayPal has secured the first conditional cryptocurrency licence from the New York State Department of Financial Services. The company will initially allow purchases of bitcoin and other cryptocurrencies called ethereum <ETH=BTSP>, bitcoin cash <BCH=BTSP> and litecoin <LTC=BTSP>, it said.

PayPal is teaming up with cryptocurrency firm Paxos Trust Company to offer the service.

Source: Yahoo Finance, reporting by Anna Irrera and Tom Wilson in London. Editing by Richard Chang and Jane Merriman

We will see a New World of Money!

Transcript of an interview with Robby Schwertner CryptoRobby 🦋 by Oliver Tanzer (many thanks!) of Austrian Newspaper FURCHE on #Blockchain

Find the original article here (in German), transcript in English:

In a crisis, people are in need of financial stability. Some take refuge in the purchase of gold and real estate. At the beginning of the pandemic, many also stocked up on cryptocurrencies, causing a short-term rise in the price of Bitcoin and other digital currencies. Would you agree with people saying that Bitcoin is the new gold?

Schwertner:

It has certainly proved its value in the crisis. The price of Bitcoin did not skyrocket as much as gold, but it has remained stable and that is a positive sign. That was not always the case. Provided, of course, that the price remains stable, it is a good store of value. Like gold. It is the digital gold! Statistics are showing that 31 percent of the working population in South Korea has invested in cryptocurrencies. In Austria, it is only two to three percent.

FURCHE:

But in view of the exchange rate fluctuations, you would not fill your safe with it.

Schwertner:

To invest in Bitcoin is at present still like going to the casino. You can try it out with smaller amounts. It is not there to save money for grandchildren or to believe that you can make a big fortune. It should be amounts that you are also willing to lose. It is still a risky investment. But it is the future, the technology is still in its infancy. However, blockchain technology can do much more than just serve as a portfolio.

FURCHE:

It is held very high by people who want to democratize society more. Why?

Schwertner:

First, blockchain enables direct contact between economic partners. You no longer need a bank, but can transfer amounts to other people securely, fast and almost without any deductions. Payment transactions are returned to a direct interaction between the participants, and I think that’s a wonderful aspect. Passing money on through the bank is economic inefficiency. The economy thrives on the elimination of inefficiencies.

Cryptocurrencies are not there to save money or make a big fortune with it. One should be able to easily cope with the sums one uses in case of loss.

FURCHE:

But there have been some teething troubles in the past, such as the possibility to launder money or smuggle it past the tax authorities via cryptocurrencies.

Schwertner:

For that, people would have had to stick to cash. With it one can drive delightfully to Liechtenstein and open an account. With cryptocurrencies there could even be systems in which the tax would be withheld automatically. In this sense, cryptocurrencies would be an advantage, not a disadvantage.

FURCHE:

A new directive is currently being negotiated in the EU Parliament to make cryptocurrencies less vulnerable to crime. How can one imagine this, if anonymity prevails here?

Schwertner:

Bitcoin is no longer anonymous. It is a combination of transparency and anonymity. This state is called “pseudonym”. In other words, it can be traced very well when which money flows were moved where. There is also a special forensic department at the Ministry of the Internal Affairs that can successfully track how companies send their Bitcoins back and forth. That is an important development. Control is a good thing. Cryptocurrencies that remain completely anonymous probably have no future.

FURCHE:

You mentioned trust. When it comes to money, trust is linked to the state. How can blockchain technology replace that?

Schwertner:

Blockchain is actually called the trust technology. People trust the algorithm. No one can steal the encrypted codes.

FURCHE:

But there are repeated reports of hacked cryptocurrency exchanges.

Schwertner:

But that doesn’t happen because the blockchain would be insecure. But because, as with money, many a storage location be insecure. If somewhere a theft is done, no one blames the monetary system actually. To Bitcoin: There were certainly criminals who pulled money out of people’s pockets with the promise of making them rich. But here, too, the system is not the culprit. The Bitcoin code is public and has been verified thousands of times. It is very robust. So far Bitcoin is not has been hacked. In this sense Blockchain interweaves transactions with each other, as in a solid fabric. In this sense, one trusts the programming.

FURCHE:

What if the programmer makes a mistake?

Schwertner:

This happens with blockchains again and again, and also with new cryptocurrencies. We live in an age comparable to the conversion from horse-drawn carts to automobiles. Of course, there will be the odd mistake in development. But generally, the advantages of the automobile will clearly outweigh the disadvantages.

FURCHE:

Are cryptocurrencies the death of banks?

Schwertner:

I don’t think so. The systems will converge, i.e. the banks will converge to blockchain. We will see a new world of money. The currencies will converge and offer bitcoin-based currencies. The EU is still in discussion. But China has been working on a digital renminbi for three years. It is already being tested as an app among 500,000 workers in some regions. And it works. The central bank also has access to this currency again.

FURCHE:

You mentioned other possible applications above.

Schwertner:

Current developments are moving towards services being integrated into products via blockchain. In the case of industrial companies, this is about payment transactions, accounting and other important things. In everyday life, the forms of application are even more colorful. The Austrian blockchain company “Riddle & Code” has programmed a “Car Wallet” for Daimler Chrysler, an electronic purse for cars. With it, cars will be able to pay parking fees or refueling independently in the future. A payment system integrated into the car is an important component for autonomous driving. After all, who is supposed to pay for services when cars are moving around the streets without drivers?

FURCHE:

There remains the disadvantage that only a few people understand the technology and the products are sometimes extremely user-unfriendly. At least this is the conclusion drawn from relevant studies.

Schwertner:

In fact, a lot of work still needs to be done on user-friendly solutions. But that in turn is an opportunity for start-ups and many new jobs. It is a long process and it has only just begun.

All articles of Oliver Tanzer, FURCHE

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RELEASED: Austrian Startup S1Seven GmbH develops #blockchain-based steel trading database! 🇦🇹

Source: Cointelegraph

Cointelegraph and INDUSTRIEMAGAZIN report that the startup Steel But Smart is working on a blockchain-based steel trading data system.

Alukönigstahl CEO Stefan Grüll Stefan Grüll and Hannes Stiebitzhofer are developing a new business model of a blockchain-based steel trading database dubbed “STEEL but SMART,” which targets traditional use cases. Within the framework of the project, Grüll reportedly founded a separate company called S1Seven GmbH that undertakes all blockchain-related activities.

The system is set to provide stakeholders with clear data on steel products’ origin, account and #industry standards, as well as information about product properties, processing, and deployment. As a result, the company intends to create a single source of complete documentation of the production history. Cool, it could be a breakthrough for many other cases!

This project is also supported by Austrian blockchain company RIDDLE&CODE – The Blockchain Interface Company and Sebastian BeckerThomas FuerstnerAlexander Koppel, which recently developed a blockchain based car wallet for automotive giant Daimler AG.

#ReturnOnSociety
Source: #Cointelegraph#Industriemagazin

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The complete list of Austrian #Blockchain Research Projects

Clemens Wasner, AI genius and CEO of Startup Enlite.ai and me collected the most relevant Austrian #research projects with a clear blockchain focus.

Research Projects – ENERGY

Digital4Energy – Digital Technologies for Energy Systems

ProChain – Prosumer- und user integration in the energy grid with blockchain

Blockchain Grid explores how producers of energy can be coordinated, and how blockchain technology could be used to integrate prosumers

R2EC – Regional Renewable Energy Cells

SonnWende+ – Efficient solutions for photovoltaic energy management based on blockchain technology

HotCity – Gamification als as an option for generating data for city planning

P2PQ – Peer2Peer in the district

GameOpSys – Gamification for optimising the energy consumption of buildings

BEYOND – Blockchain based Electricity trading for the integration Of National and Decentralized local markets

BIMCHAIN – Automated payment and contract management for construction industry with blockchain technology and BIM 5D

DigitalEnergy4All – DigitalEnergy4All with Digital Citizen Energy Communities

Research Projects – MOBILITY

Cycle4Value – Development of a blockchain-based reward system for fostering bicycle traffic

PLOGchain – Blockchain technologies for transport – use cases and research potentials

ShareMob – Innovative E-carsharing-concept as a tool for improving mobility in Vienna

Research Projects – INDUSTRY

Block-Tool-Data – Exploratory Project for a Blockchain-based Tool Data Marketplace

DMA – Data Market Austria

Easy Contracts – Blockchain-Applications for Organisations

GDP4PI – Generic data integration platform for the physical internet

NutriSafe – Securing of Food Production and Logistics with Distributed Ledger Technology

QM auf Blockchain – Blockchain basiertes Quality Management

SEMCON – Semantic Containers for Data Mobility

Smart-Toolbox – Smart-Toolbox for Community-Blockchains

Instigo – Instigo – The World’s first Autonomous Growth Hacker

Research Projects – FINTECH

BiKrCuMa – BitPanda Crypto Currency Market V2.0

CI MPP – Crowdinvesting Market Place Plattform

difacturo – Invoicing on Blockchain

Clusters and Research Centers

ABC – Austrian Blockchain Center

Research Institute for Cryptoeconomics at Vienna University of Business and Economics

DiMaHub – Digital Innovation Hub / Digital Makers Hub

RIAT – Institute of Future Cryptoeconomics

SBA Research – Austrian Research Center for Information Security 

Josef Ressel Center for Blockchain 

and we introduced a section of R&D hubs and #clusters. In the article, you find links to the projects and a short explanation.

There is a surprisingly large number of energy blockchain projects in Austria with a clear sustainability goal, followed by industry and mobility. This collection of projects is the first overview, more to come 😇.

Most projects are located in the capital #Vienna, some in automotive city #Graz, steel town #Linz and of #Mozart‘s birthplace Salzburg.

Do you miss a project? 📩comment or pm me!

#ReturnOnSociety#blockchain#cryptocurrency#research

Twitter: https://twitter.com/cryptorobby_

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LAUNCHED: The world’s largest industrial blockchain launched by Walmart and DLT Labs.

Forbes reported that Walmart Canada and DLT Labs released the world’s largest full production blockchain solution for any industrial application.

The blockchain-based freight #invoice and #payment reconciliation solution is rolling out across Walmart Canada’s 60 transportation carriers to increase trust, efficiencies and savings between Walmart and its carriers. All carriers in the nation-wide network will be on-boarded by February 1st.

Three goals:
1. Resolve carrier payment issues.
2. Drive efficiency in the ways of working today.
3. Increase visibility and trust in the freight payment process.

Loudon Owen, CEO of DLT Labs: “The new system uses distributed ledger technology to track deliveries, verify transactions, and streamline the payment and reconciliation process among Walmart Canada and its carriers that deliver goods to over 400 retail stores across Canada annually.”

#smartmouth
What is DLT?
DLT derives from “Distributed Ledger Technology”, a supercategory for blockchain-technology. Blockchain: data stored in chain of blocks.

Other DLTs: #hashgraph (Hedera) and #tangle.

#ReturnOnSociety > #RoI
Pic: John Bayliss and Loudon Owen

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