What is an ICO in cryptocurrency?

ICO stands for Initial Coin Offering. When launching a new cryptocurrency or crypto-token, developers offer investors a limited number of units in exchange for other major cryptocurrencies such as Bitcoin or Ethereum.

ICOs are amazing tools for rapidly pouring development funds in support of new cryptocurrencies. Tokens offered during the ICO can be sold and traded on cryptocurrency exchanges if it is assumed that there is sufficient demand for them.

Ethereum’s ICO is one of the most notable successes, and the popularity of the initial coin offerings is growing as we speak.

A brief history of the ICO

Ripple is probably the first cryptocurrency to be distributed through ICO. In early 2013, Ripple Labs began developing the Ripple payment system and generated approximately 100 billion XRP tokens. They were sold through ICO to fund the development of the Ripple platform.

Mastercoin is another cryptocurrency that sold several million bitcoin tokens during the ICO, also in 2013. Mastercoin aims to token Bitcoin transactions and execute smart contracts by creating a new layer on the existing Bitcoin code.

Of course, there are other cryptocurrencies that have been successfully funded through the ICO. As early as 2016, Lisk raised about $ 5 million during their initial coin offering.

Nevertheless, Ethereum’s ICO, held in 2014, is perhaps the most famous so far. During its ICO, the Ethereum Foundation sold ETH for 0.0005 bitcoins each, raising nearly $ 20 million. Using the power of Ethereum’s smart contracts, he paved the way for the next generation of initial coin offerings.

Ethereum ICO, a recipe for success

Ethereum’s smart contract system has implemented the ERC20 protocol standard, which sets out the basic rules for creating other compatible tokens that can be transitioned to the Ethereum blockchain. This allowed others to create their own ERC20 compliant tokens that could be traded for ETH directly on the Ethereum network.

DAO is a remarkable example of the successful use of Ethereum’s smart contracts. The investment company raised $ 100 million in ETH, and investors received DAO tokens in return, allowing them to participate in the management of the platform. Unfortunately, DAO failed after being hacked.

Ethereum’s ICO and their ERC20 protocol outlined the latest generation of crowdfunding projects based on blockchain through Initial Coin Offerings.

Also facilitate investment in other ERC20 tokens. Simply transfer ETH, place the contract in your wallet and the new symbols will appear in your account so you can use them as you wish.

Obviously, not all cryptocurrencies have ERC20 tokens living in the Ethereum network, but almost any new blockchain-based project can launch an initial coin offering.

The legal status of the ICO

As for the legality of the ICO, there is a bit of a jungle. In theory, tokens are sold as digital goods, not as financial assets. Most jurisdictions have not yet regulated the ICO, so assuming that the founders have an experienced lawyer on their team, the whole process should be paperless.

However, some jurisdictions are already aware of the ICO and are already working to regulate it in a manner similar to the sale of shares and securities.

As early as December 2017, the US Securities and Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to stop ICOs, which they consider misleading investors.

There are some cases where the token is just a useful marker. This means that the owner can simply use it to access a particular network or protocol, in which case they may not be defined as a financial guarantee. Nevertheless, capital symbols, which are intended to be valued, are quite close to the concept of security. The truth is that most symbol purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs are still stuck in a gray legal area, and until a clearer set of regulations is imposed, entrepreneurs will try to take advantage of initial coin proposals.

It is also worth mentioning that once regulations are finalized, the costs and effort required to comply with them may make ICOs less attractive than conventional funding opportunities.

Concluding remarks

For now, ICOs remain an amazing way to fund new crypto-related projects, and there are many successful ones yet to come.

Keep in mind, however, that everyone is starting an ICO these days, and many of these projects are scams or lack the solid foundation they need to thrive and deserve an investment. For this reason, you should definitely do an in-depth study and research the team and history of any crypto project you would like to invest in. There are many websites that list ICOs, just do a Google search and you will find some options.

Training objectives and trade objectives

Trading goals and training goals are two interesting and interrelated concepts in Forex trading. Traders for beginners and beginners mostly believe that trading goals are defined as a destination to be reached at the end of a certain period. They set commercial goals and then try to achieve them. In fact, Forex trading is not about achieving goals. Most of the goals that traders set for themselves are not actually treated as a final destination. Rather, these goals are actually their learning goals that they tend to set for themselves. Most beginners set unattainable standards and performance goals that they fail to achieve. Then they lose hope and leave after losing their money.

Big picture and learning goals:

Most beginners face the same scenario and then feel discouraged. Instead, look at the big picture. It’s just like worrying about a bucket of water when you’re about to win a swimming pool. Dear beginner, Forex trading is about perseverance. So you have to stick to it. Don’t give up too soon. The first and main learning goal of Forex trading is to monitor the overall picture. You need to focus on your long-term plan.

Dark tunnel:

If you fail once, it does not mean that it is a dead end. Forex trading is a huge dark tunnel. Only those who take heart and keep walking reach the end of the tunnel. Remember that the light of prosperity is at the end of this tunnel. Thus, try different trading strategies to survive in the initial phase of Forex trading. You just have to take the time to learn the basics of Forex trading. Then this time will pay you off in the form of a noticeable profit in your trading account. Don’t let your negative thoughts discourage you. You have to learn that just thinking about failure often closes our minds and judging abilities. That way, don’t let this negativity engulf your jealousy of trading so easily.

Daily trade and commercial purposes:

Similarly, you can’t be too confident in your success after winning the first deal. You never know when this overconfidence can make you lose a treasure. You cannot let the results of your daily trading control your judgment. Peace of mind is a necessary personality trait to become a successful Forex trader. You need to treat your business goals as your learning goals. Only then can you learn the basics of trading and finally make a bunch of profits.

7 Great Tendy Technologies That Will Insist In 2018

Today, integrated artificial intelligence automation technology is used to track business data, and cryptocurrencies are used to complete business transactions, such as bitcoin. As a result, the identity of competitors remains hidden. How do you think about the constant growth of your business? Today, the financial world has become more competitive. To gain a sustainable position in an industry, you need to know your competitors and their policies, but this has become impossible due to the introduction of technology.

It is clear that 2018 will be the year in which we will see the culmination of some key innovations – from blockchain and smart AI to configuration thinking, cloud, etc.

7 Great Tendy Technologies That Will Insist In 2018

The frontiers of innovation: AI and Blockchain: Blockchain and man-made consciousness (AI) will continue to disrupt the monetary administration industry. Improving artificial intelligence will focus on intellectual use in business, advertising, business, wealth management and the consistency of the money industry. This is a major step forward in the transition from modern automated innovations such as machine learning and a predictable test to real development in subjective registration. Synechron further predicts that robotic finance professionals will become the assembled stage of FinTech for the rich.

Giant investments in digital transformation: Meetings with non-managed accounts, such as retail and correspondence, shape the desires of buyers from banks and credit unions. As customers become more advanced, an even more demanding and better-informed legacy bank foundation is emphasized to help new engagement methods and develop primarily computerized endeavors. In light of the expanding focus of burdens and the growing desires of people, money-related organizations around the world are investing heavily in computerized change.

Configurational thinking: Synechron says that “outline thinking” must be combined with inventive building to convey the UX vision to the real world. Account provider management will focus on several key cases and improvements where the customer’s first plan is crucial, such as account opening and augmented reality. Augmented Reality (AR) and Virtual Reality (VR) will benefit from advances in a compelling UX configuration designed to enhance customer experience. The recording procedure will see the rise of UX contour innovations as more intelligent and playful participation with normal dialect handling and machine learning.

Computerized banks alone are becoming a real threat: With the entire management of the accounting industry moving to sophisticated channels, computerized players alone will pose an increasing number of difficulties to the registered dominance of conventional banks and credit unions. This new type of retention of money suppliers has contrasted the usual model with deeply imaginary objects and administrations with mass interest in the current carefully discerning buyer. These challenging banks will fuel expanded business rivalry by forcing conventional money-related funds to increase their computerized contributions and expand their reach to combat these destroyers.

Huge data gets even bigger: Huge information activities push for more sophisticated and open action plans with better information devices and perceptions. While initial efforts to institutionalize information have just begun, budget organizations still depend on the design and foundations of heritage information. Moving forward with future frameworks is a need for information in 2018. In addition, it requires a new information framework to agree on the forthcoming new information preconditions such as the General Data Protection Regulation (GDPR) and the Payment Services Directive II (PSD2). With these progressions, better approaches have been developed to remove additional incentives from information, such as information virtualization, information genealogy, and information presentation.

Interaction with third-party providers to promote customer orientation: Through open APIs, banks and credit unions will undergo critical changes in the way they provide CX-based procedures. Fintech organizations become participants in customers’ adventures, and banks and credit unions are never again responsible for customer travel. Customers are gradually receiving contributions from FinTech for better administration, and banks and credit unions have not yet decided to adjust – or abandon.

The cloud: creeping in every corner: In 2018, the choice of cloud in account management will increase, but with an emphasis on security and administrative consistency, which remains ahead. I hope to see that the efforts for applications in the center and back office are starting to move in the cloud. Banks and credit unions will feel the impetus to make cloud action plans more empowered in 2018, while the use of open APIs will drive customers’ applications to the cloud much more.

So what should we do? We need to focus more on using technology to develop our own skills than on our competitors. Right?

What to look for when choosing a bot for trading bitcoins

The cryptocurrency market has become very popular and every trader strives to make it big by trading bitcoins. However, this is a very volatile market that can be difficult to handle, especially given that it is a market that never sleeps unlike the stock market. To make things easier for traders, trading bots have been developed. A trading bot can be defined as a software program that is designed to interact directly with financial exchanges so that appropriate information can be obtained and interpreted so that orders can be bought and sold on behalf of traders.

In essence, bots make decisions by monitoring market price movements and using pre-programmed rules so that losses can be stopped. The bot analyzes market actions such as price, volume and orders according to your preferences and tastes as a trader and makes the decision. If you are a bitcoin trader, then you may want to choose the best bitcoin trading bot to make the process easier for you. But with so many bots available, how do you know which one is the best?

Customization and ease of use

The interface of a good trading bot should be easy to use by all types of traders, including those who know nothing about coding. All the necessary information should be easy to find and profits clearly displayed along with all aspects of the trade that matter, including purchase orders and current sales. All you have to do is enter your pairs and numbers and then start trading with the click of a button. Aside from being clear even to first time users, a custom trading bot is even better. With this feature you will be able to change the way your skin looks so that you can have a program that you are happy to use every time.

Operating system compatibility

Not all bots are designed the same and not all merchants will use the same operating systems. For this reason, you want to get a platform that works on all operating systems. With this type of bot on your side, you can access your transactions from Linux, Mac or Windows, depending on the device you are using. With your orders and USB settings, you will only need to plug into each computer to continue trading with the operating system despite. A standalone bot that does not require installation and is compatible with all systems will eventually prove to be very convenient.

Support for pairs, coins and exchange

In addition to bitcoin, you may be a trader who is interested in other pairs, exchanges and coins. Therefore, it may be more useful to find a merchant bot that can hold various coins offered by major exchanges. A fully organized crypto bot will work great for a spontaneous type of trader.

Other features of the bot that might be useful are notifications and reporting, real-time testing, and historical backing, among others. Find out what the bot merchant can do and choose accordingly.

Can you dig bitcoins on your smartphone?

Let’s look at the Bitcoin price index from July 2012 to September 2020 for a better understanding of this digital currency –

Users who traded bitcoin have used many Android applications that are also used to store bitcoins. There are several apps available and you can download the best bitcoin app from either Google or the Google play store.

With the steady increase and decrease in the price of bitcoin in India, bitcoin will remain at the current price or decrease. In addition, bitcoin mining has an advantage over everything else and there are several smartphone applications for bitcoin mining. If you are not interested in digging, you can buy bitcoins using a bitcoin exchange in India, such as WazirX.

Is it possible to dig bitcoins using Mobile?

Yes, bitcoin mobile mining is possible; but there are several reasons not to continue with it. In addition, there are few cryptocurrencies that do not require proof of performance mechanisms that are in their infancy and can be mined on a smartphone.

Because we are aware that today’s smartphones are very powerful and it can be used to extract cryptocurrency. But when we compare the tools that miners use to dig for bitcoin, they are very powerful and sophisticated, and mining in smartphones means that they are less attractive in terms of prizes.

The user can dig bitcoins on the smartphone on a smaller scale or join a mobile mining farm or digging pool. When network miners share their rewards, you will receive a small percentage based on your computing power.

How can you dig with the help of smartphones?

You can use your smartphone for mobile bitcoin digging using Android as it is a convenient mining operating system for mobile devices. As the percentage of BTC in India changes, the market is developing more Android apps that allow you to directly dig bitcoins from your smartphone. These apps cannot be found in the Google play store, as appropriate.

Applications that can be used to extract bitcoins via a smartphone

If you are still fixed for digging bitcoin via a mobile device, the only requirement is that you need a digging application and a battery charger for standby. Below are the few applications that could be used to extract bitcoin via smartphones.

  • MinerGate
  • This is a mobile application for a miner that helps you dig bitcoins and altcoins. Some of them include Dash and other altcoins. In addition, MinerGate offers the best built-in wallet where you can store your bitcoins and other cryptocurrencies.

  • Bitcoin Miner
  • This is one of the most popular applications currently available on most devices. It offers a user-friendly interface and you can find good reviews for its performance. The Bitcoin miner application supports several altcoins.

  • AA Miner
  • This application supports several cryptocurrencies, which include Bitcoin, Litecoin, Dash, DigitalNote and many others. This application is mainly used for mining cryptocurrencies for Android.

    Final thoughts

    Although mobile mining does not offer more rewards, it is not a complicated process. The only requirement is, you need a smartphone and download the best extraction app. When you use your smartphone, the application runs in the background; and these applications interfere with the operation of your smartphone. In short, mining smartphones is one of the simplest ways to make money, but not like using specialized hardware through computers.

    How to start an initial coin offering – some questions to ask yourself

    Many people believe that cryptocurrency is the next frontier in the world of FinTech. Launching an ICO can be a great sign of success for blockchain platforms. However, the main obstacles that currently fragment the industry also need to be overcome. Success requires much more than just a strong product or an excellent ICO white paper.

    Before embarking on the path of setting up an ICO for your business project, it is imperative that you have a general idea of ​​how to start an initial coin offering so that you stay on the right path that brings you closer to your recruitment goals. money. Consider these important questions to ask yourself before launching an initial coin offering:

    Are ICO campaigns suitable for any type of business or niche?

    ICO campaigns can be successful for a business or futile for some. Many start-up owners believe that ICO is a great way to obtain funding for any project. It allows for rapid fundraising plus the avoidance of the costly procedure of registering an IPO with authoritarian agencies. For businesses to thrive in the cryptocurrency industry, the main requirement is to generate value for consumers and investors. Authenticity and transparency are among the main pillars of ICO and cryptocurrency.

    What should you emphasize before starting an ICO?

    The practice of many ICO campaigns shows investor protection, target interests and topics that meet the interests of the audience. The business owner must have a strong mind and must openly express his goals and long-term goals to the public before successfully starting an ICO.

    How to involve the team in an ICO campaign

    From the investor’s point of view, the professional team working on the project is one of the most important factors when contributing to the initial offering of coins. It’s important to have a list of all core team members with their faces, as well as social media profiles, so that every valuable contributor can actually see the brains behind the project. At the same time, however, you can look for industry professionals and put them on board as project advisors.

    What are the important features of an ICO?

    Good time and communication are the necessary characteristics of ICO. It may be important to start your Crowdsale campaign as soon as possible. In many cases, ICOs are limited in time, so time plays a vital role. The most important things that need to be covered are the goals, the conditions of the investor and the team. Another important feature of the Crowdsale campaign is PR. Make sure you keep talking to your audience both before and during the ICO campaign.

    What shouldn’t be the ideal practice while starting an ICO?

    When dealing with other people’s money, you need to make sure that you do not break any laws at every turn. Therefore, it is highly recommended that you hire a lawyer while organizing an ICO campaign. Breaking the law is just like losing people’s expectations. That’s why it makes sense to update participants about the growth of your project. In addition, keeping in touch with participants is one of the most important things you can do for the Crowdsale campaign.

    Do you have a vision for the future?

    Preparing for an initial coin offering included a solid vision, so it’s crucial for you to consider how you can reshape the future economy through the project’s cryptocurrency. It is essential to align short-term goals by giving a positive trading experience that maximizes the trader’s profit.

    In fact, the above questions will definitely open your eyes before you start ICO. Knowing these important aspects and steps would solve all your inquiries about how to effectively start an initial coin offering. ICO is an exciting funding mechanism and we wish you all the best.

    Forex Trading Tips for Part-Time Forex Traders

    The most attractive feature of Forex trading is that it is a 24-hour open market. You can trade 24 hours a day and at the same time you can set your own trading schedule. Most traders today trade according to their established schedule, such as day or night or at any time they feel comfortable. Such traders are called part-time. Obviously, if you trade only for a certain hour of the day, you can’t miss some profitable trading opportunities. Thus, time constraints are a major problem for part-time traders.

    But there are many strategies that a part-time trader can use to make a nice profit. For example, if you trade at night, then you should use the strategy of Forex trading with those currency pairs that remain mostly active during the night. Some basic strategies that are useful for part-time traders are:

    Market opening time:

    As a part-time trader, you need to monitor the opening time of the major currency markets, this will help you choose which currency pair you want to trade.

    The forex market in Europe and Japan is mostly active at night, so you should use one of the following currency pairs.

    EUR / JPY

    EUR / CHF

    AUD / JPY

    You can also choose a currency pair that includes the Hong Kong Dollar (HKD) or the Singapore Dollar (SGD).

    Stop-Loss orders:

    This is the most widely used strategy by part-time traders. This is a risk management technique that protects the trader’s money in the event of a sudden change in his position.

    Strategy for trading in price actions:

    There are some part-time traders who trade at frequent intervals during trading, such as 10-20 minutes, etc. In that case, you can use a Price Price trading strategy. This strategy analyzes the movement and charts of your currency pair. It can inform you about the upper and lower bands associated with your currency pair. The upper bar reflects an upward trend, while the lower bar reflects downward trends.

    Detention for days:

    A sensible technique and strategy used by part-time traders has taken a position for a long time. You study and analyze the Forex market. You can then select certain positions and just hold it for days.

    New strategies:

    There are many strategies you can use in Forex trading. You can choose the strategy according to your ability to avoid risk. You need to keep in mind that what works for others may not work for you. What is Forex? It can be explained as a study of new strategies. This can also help you understand your strengths.

    How to get $ 10 free bitcoins, easy and simple

    By now, you’ve probably heard of bitcoin – there are stories of people making thousands of dollars a night with this and other cryptocurrencies.

    Like any new speculative investment, there is an element of risk. That’s why starting with a free $ 10 bitcoin is a good way to try it out and start learning how it all works. I am still new to all of this and came across this process during my research. It helped me, so I thought I should share it with you.

    The first things you need to know about buying bitcoin are that there are several basic ways to buy it and it is not that complicated to do so.

    The two main ways to buy bitcoin are through a broker or through an exchange. See the Coinbase – they are one of the largest exchanges, have a clean and easy to understand interface, are available from applications on various mobile and computer platforms and offer you $ 10. free bitcoins to get started. There are other exchanges I’ve tried that work well – BTCMarkets and Coinspot to name a couple, which are both – but only Coinbase has a $ 10 startup bonus.

    An additional advantage of Coinbase is that it works locally in multiple currencies – for example, if you are in Australia, all your data will be displayed in Australian dollars, so you do not have to stick to exchange rates and the like.

    It is also worth mentioning that Bitcoin is not the only cryptocurrency that Coinbase deals with – you can also buy Etherium (ETH), Bitcoin Cash (BCH) or LiteCoin (LTC) – whatever currency you choose to use, again you can get $ 10 from free bitcoin.

    Without further ado, here’s how you get your free $ 10 from bitcoin:

    1) Sign up for Coinbase (the link at the bottom of this article will entitle you to a $ 10 bonus)

    2) Complete the account setup process, including verifying your email address, phone number and uploading proof of your ID (driver’s license, passport or other photo ID – this can be done by taking a photo with your phone si)

    3) Enter your credit card information and check the card by reviewing the transactions that Coinbase will add to your internet banking statement (this is immediate and you will not be charged)

    4) Place an order for $ 100 worth of Bitcoin, Etherium – whatever – in your now activated account. If your local currency is not a US dollar, you will need to make sure you have ordered the equivalent amount of $ 100.

    *** IMPORTANT NOTE: All bitcoin purchases require a fee and Coinbase is no different. IN at most, the fee for your initial purchase of $ 100 should be around $ 4 ***

    5) That’s it! In a few days, a $ 10 bitcoin will appear in your Coinbase account – even when you deduct the purchase fee, you still find yourself ahead.

    So, if you are interested in bitcoin, you want to dip your finger without risk and you want to get free money (!) During the process, try this. The Bitcoin bonus will cover more than your fees for this first deposit and can help you learn what it’s all about.

    Sound good?

    Some concluding remarks:

    • This process will only work if you are a new Coinbase customer. If you already have an account, you will not receive the free credit

    • You can only get the free $ 10 if you register using the link below.

    • The above offer is limited in time – once you create your account using the link, you have 180 days in which to make the purchase of bitcoin, lightcoin or etherium worth $ 100 and still get a loan of $ 10.

    I hope you have a prosperous and happy future with bitcoin and take advantage of the free $ 10. Free money doesn’t come every day and with the pace at which bitcoin has grown recently, $ 10 can multiply quite quickly! My plan is to just sit for $ 110 for a while, see what’s going on, and feel the ups and downs of Bitcoin. Let’s see how we go.

    5 tips to keep in mind before investing in bitcoin

    In 2017, bitcoin grew strongly and people made a lot of money in the process. Even today, bitcoin is one of the most lucrative markets. If you are just a beginner, you may want to do your homework before putting money into bitcoin. Here are 5 expert tips that can help you avoid some common mistakes when trading bitcoins.

    1. Learn the basics first

    First of all, you may want to learn the basics so you can get a better idea of ​​how to buy and sell bitcoin. You may also want to read reviews of popular bitcoin exchanges to find the best platform.

    As with other types of financial investments, you may want to find ways to protect your investment. Make sure your assets are safe from scammers and cyberattacks. After all, security is the most important aspect of any type of investment.

    2. Consider market capitalization

    It is not a good idea to make this type of decision based solely on the price of the coin. However, the value of the cryptocurrency is valid only if you take into account the existing supply in circulation.

    If you want to buy bitcoin, don’t focus too much on the existing value of the currency. Instead, you may want to consider the total market capitalization.

    3. Invest in Bitcion instead of Mining Bitcoin

    The bitcoin mining industry is growing rapidly. Initially, it was not so difficult to earn bitcoins by breaking cryptographic puzzles. Later, it was possible to extract bitcoin only in special data centers.

    These centers are filled with machines designed to extract bitcoins. Today, if you want to build a home mining center, you may have to spend millions. So, it is better to invest in bitcoins.

    4. Diversify your investments

    New bitcoin investors tend to have a short-lived passion for cryptocurrency. In fact, with Bitcoin you can diversify your investment risk. If you invest wisely in cryptocurrency, you can enjoy the same rewards you make by investing in Forex. All you have to do is put together a solid risk management strategy.

    In other words, you may not want to put all your eggs in the same basket. So, you may want to invest in other cryptocurrencies.

    5. Set clear goals

    Because Bitcoin is a new market, you may find it difficult to figure out the right time to trade your Bitcoin. The value of bitcoin is unstable, which means that you need to have clear goals in terms of profit and loss.

    You may not want to make mistakes when making investment decisions based on your emotions. Making smart moves can help you minimize losses and make good progress.

    In short, if you are going to invest in bitcoin, we suggest you follow the tips given in this article. This will help you make wise decisions and be safe at the same time. Just make sure you avoid common mistakes when running this business.

    Fear not, China does not ban cryptocurrency

    In 2008, after the financial crisis, a report entitled “Bitcoin: Peer-to-Peer Electronic Cash System” was published, detailing the concepts of the payment system. Bitcoin was born. Bitcoin has gained worldwide attention for its use of blockchain technology and as an alternative to fiat currencies and commodities. Named the next best technology after the Internet, the blockchain offers solutions to problems we have failed to address or ignore over the past few decades. I will not go into the technical aspect, but here are some articles and videos that I recommend:

    How bitcoin works under the hood

    Gentle introduction to blockchain technology

    Have you ever wondered how bitcoins (and other cryptocurrencies) actually work?

    Fast forward to today, on February 5, the Chinese authorities have just introduced a new set of regulations banning cryptocurrency. The Chinese government already did this last year, but many have been bypassed through a foreign exchange. It has now activated the all-powerful Great Wall of China to block access to foreign exchanges in an attempt to stop its citizens from making any cryptocurrency transactions.

    To learn more about the position of the Chinese government, let’s go back a few years to 2013, when Bitcoin was gaining popularity among Chinese citizens and prices were rising. Concerned about price volatility and speculation, the People’s Bank of China and five other government ministries issued a formal notice in December 2013 entitled “Bitcoin Financial Risk Prevention Notice” (Link in Mandarin). Several points were highlighted:

    1. Due to various factors such as limited supply, anonymity and the lack of a centralized issuer, Bitcoin is not an official currency but a virtual commodity that cannot be used on the free market.

    2. All banks and financial organizations are not allowed to offer bitcoin-related financial services or engage in commercial activities related to bitcoin.

    3. All companies and websites that offer bitcoin-related services must register with the necessary government ministries.

    4. Due to the anonymity and cross-border characteristics of Bitcoin, organizations providing Bitcoin-related services should apply preventive measures such as KYC to prevent money laundering. Any suspicious activity, including fraud, gambling and money laundering, must be reported to the authorities.

    5. Organizations providing bitcoin services should educate the public about bitcoins and the technology behind them and not mislead the public with misinformation.

    In a non-specialized mandate, Bitcoin is categorized as a virtual commodity (eg in-game credits) that can be bought or sold in its original form and not exchanged with fiat currency. It cannot be defined as money – something that serves as a medium of exchange, an accounting unit and a stock of value.

    Despite the notice dated 2013, it is still relevant to the Chinese government’s position on bitcoins and, as mentioned, there are no indications of a ban on bitcoin and cryptocurrency. Rather, regulation and education for bitcoin and blockchain will play a role in the Chinese crypto market.

    A similar notice was issued in January 2017, reiterating that bitcoin is a virtual commodity, not a currency. In September 2017, the initial coin offer (ICO) boom led to the publication of a separate notice entitled “Notice on the prevention of financial risk from issued tokens”. Soon after, ICOs were banned and Chinese stock exchanges were investigated and eventually closed. (Hindsight is 20/20, they made the right decision to ban ICO and stop pointless gambling). Another blow was dealt to the Chinese cryptocurrency community in January 2018, when mining operations faced severe repression, citing excessive electricity consumption.

    Although there is no official explanation for the repression against cryptocurrencies, capital controls, illegal activities and the protection of citizens from financial risk are some of the main reasons cited by experts. In fact, Chinese regulators have introduced stricter controls, such as a restriction on foreign withdrawals and regulation of foreign direct investment, in order to limit capital outflows and ensure domestic investment. The anonymity and ease of cross-border transactions have also made cryptocurrency a favorite means of money laundering and fraud.

    Since 2011, China has played a crucial role in the meteoric rise and fall of bitcoins. At its peak, China accounted for more than 95% of global bitcoin trade and three-quarters of mining operations. With regulators intervening to control trade and mining, China’s dominance has shrunk significantly in exchange for stability.

    With countries like Korea and India following the example of repression, the future of cryptocurrency is now being overshadowed. (I will repeat my opinion here: the countries regulate the cryptocurrency, not ban it). No doubt we will see more nations join in the coming months to take over the turbulent crypto market. In fact, an order was long overdue. Over the past year, cryptocurrencies have experienced unprecedented price volatility and ICOs are happening literally every other day. In 2017, the total market capitalization rose from $ 18 billion in January to a record $ 828 billion.

    However, the Chinese community is in a surprisingly good mood, despite the repression. Online and offline communities are thriving (I’ve personally attended a lot of events and visited some of the companies) and blockchain startups are springing up all over China.

    Major blockchain companies such as NEO, QTUM and VeChain are attracting a lot of attention in the country. Startups like Nebulas, High Performance Blockchain (HPB) and Bibox are also gaining a lot of traction. Even giants like Alibaba and Tencent are also exploring the possibilities of a blockchain to improve their platform. The list goes on and on, but you understand me; will be HUGGEE!

    The Chinese government is also embracing blockchain technology and has intensified its efforts in recent years to support the creation of a blockchain ecosystem.

    In China’s 13th Five-Year Plan (2016-2020), he called for the development of promising technologies, including blockchain and artificial intelligence. He also plans to step up research into the application of fintech in regulation, cloud computing and big data. Even the People’s Bank of China is also testing a prototype of a blockchain-based digital currency; However, as it is likely to be a centralized digital currency flooded with some encryption technology, its acceptance by Chinese citizens remains to be seen.

    The launch of the Trusted Blockchain Open Lab, as well as the China Forum for Technology and Industrial Blockchains by the Ministry of Industry and Information Technology, are some of the other Chinese government initiatives to support blockchain development in China.

    A recent report entitled “China Blockchain Development Report 2018” (English version in the link) by the China Blockchain Research Center details the development of the blockchain industry in China in 2017, including the various measures taken to regulate the cryptocurrency on the continent. In a separate section, the report highlights the optimistic outlook for the blockchain industry and the tremendous attention it has received from VC and the Chinese government in 2017.

    In summary, the Chinese government has shown a positive attitude towards blockchain technology, despite its application to cryptocurrencies and mining operations. China wants to control the cryptocurrency and China will gain control. Repetitive coercive measures by regulators were aimed at protecting their citizens from the financial risk of cryptocurrencies and limiting capital outflows. It is currently legal for Chinese citizens to hold cryptocurrencies, but they are not allowed to make any form of transaction; hence the ban on exchange. As the market stabilizes in the coming months (or years), we will undoubtedly see a revival of the Chinese crypto market. Blockchain and cryptocurrency come hand in hand (except for a private chain where the token is unnecessary). That way, countries can’t ban cryptocurrency without banning blockchain great technology!

    One thing we can all agree on is that the blockchain is still in its infancy. Many exciting events await us and right now is definitely the best time to lay the foundations of a world activated by a blockchain.

    Last but not least, HODL!