Why the Cryptocoin Crash of 15 June was much needed

On June 15, three well known cryptocurrencies — Bitcoin, Ethereum and Ripple — fell nearly 13-17% in one day of trading, while some smaller altcoins faced even higher drops in valuation. The overall decline in market cap of these cryptocurrencies combined is estimated to be around $16 billion. This came as a surprise to many as it occurred a few days after Bitcoin had achieved an all-time high of $3,000. What powered the incredible crash on June 15? What effect will it have on the future of cryptocurrencies? Continue reading as I explore the answers to these questions.

On a pessimistic note, the crash is a revelation of cryptocurrency volatility and the high risks associated with trading. Many have taken it as a sign that these currencies are untrustworthy, and for now fiat currencies are irreplaceable. MarketWatch commented “Stay away from Bitcoin — it’s complete garbage”. These views have certainly had a negative impact on Bitcoin’s image as a future currency replacement.

How the crash has helped cryptocurrencies attain sustainable levels

Bitcoin’s price of $3,000 was considered unsustainable by many. Yes, Bitcoin couldn’t last too long at those prices, and the fall could have been much more catastrophic. The truth is that Bitcoin’s fall to $2300 indicates a movement towards sustainability, rather than a highly pleasing but highly inflated price.  Andreas Antonopoulos, a Bitcoin expert, believes that the crash was more accurately a ‘market correction’ or a currencies method to return to its actual valuation, not bloated prices. The sprouting of 100s of ICOs (Initial Coin Offerings) and an increased hype had simply increased the risk of a Bitcoin bubble, where the coin could have lost almost all its value in no time.

Figure 1: Graph summing up why the crash was necessary

The chart shows how Bitcoin’s past growth

Stockholm will Host the First Large Conference on Cryptocurrency and Blockchain

On September 7, for the first time, the Swedish capital will host a large conference dedicated to blockchain technology and cryptocurrency – Blockchain & Bitcoin Conference Stockholm.

The event is a part of Blockchain & Bitcoin Conference, which is the first and the largest network of crypto conferences in Europe. Organizer is Smile-Expo that holds similar events in the Czech Republic, Estonia, Russia and Ukraine.

Key topics include implementation of blockchain technology in business, legal regulation of cryptocurrencies (practices of various jurisdictions), increase of living standards using new technologies, development of smart contracts in the decentralized economy.

Special attention will be paid to the blockchain development in FinTech. Participants will analyze already existing blockchain-based projects in the banking sector; there will be a lot of analytics and discussions.

In autumn 2016, the Central Bank of the country announced its plans for the development of a national crypto currency. These plans may be implemented in two years. The Swedes use traditional money more rarely; since 2009 the amount of coins and cash in Sweden was reduced by 40 percent.

Blockchain development in the country is supported by the government; in 2016, there was an experiment on transferring records on land ownership right in the digital format. The project involved the blockchain-based technology of smart contracts.

In addition, Nasdaq Stockholm exchange issued the first bitcoin-based security. The Bitcoin Tracker One asset received a certificate of the governmental financial regulator and was accepted for trading.

In June, the Swedish project on blockchain implementation in energy sector was launched. A department of government corporation Vattenfall together with 20 European companies started the development of a blockchain platform for electricity trading.

These and other blockchain projects will be discussed by the participants of Blockchain & Bitcoin Conference.

According to the organizers, participation in the conference

Event Report: Bitcoin Wednesday Amsterdam

The first Wednesday of every month in Amsterdam offers a unique opportunity for every bitcoin and blockchain enthusiast.

This month, I used this opportunity and attended this event, and share with you the information about what happened during the event. Read this article to read more about what was presented, who was speaking, and see some pictures from the event.

The hosts

Before we get started, I would like to introduce you to the host of this event, BitcoinWednesday. It is the single largest conference that supports the propagation of the Digital Currency Revolution in the Netherlands.

The entrance of the Rockstart Building

The event itself is located at a venue called Rockstart, which is a startup incubator that helps young technology businesses grow and succeed in the marketplace. They spent the last 5 years building their international entrepreneur community, and have helped many different companies achieve their goals.

The Speakers Rik Esselink

This month, the conference was led by Rik Esselink, who previously was a Managing Director of Philips, Taser, and he currently works with a California-based company called Ring. He’s been active in the Amsterdam Bitcoin community for many years.

Egbert-Jan Sol Egbert-Jan Sol – CTO of TNO Industry

One of the major speakers at the conference was Egbert-Jan Sol, who is working for TNO Industry, researching and developing innovative solutions to society’s problems. He’s been working with the Dutch government about blockchain solutions that will increase the quality of life for citizens in the Netherlands.

He gave an impressive presentation about how blockchain technology is taking the world by surprise, regardless of the fact that the technologies associated with blockchains exist since the early 90’s. Until 2009, when the mysterious Satoshi Nakamoto released his paper, detailing the peer-to-peer electronic cash currency we know today as Bitcoin.

He further compared this

Russia and China May Digitize Their Currencies With Ethereum

An increasing number of central banks and governments are working on digitizing their national currencies. China and Russia are investigating the potential of Ethereum as the base protocol for a digital Yuan and Ruble respectively.

Currently, the Royal Chinese Mint, the subordinate unit of China Banknote Printing and Minting, is testing Ethereum and its ERC 20 token standard to digitize the renminbi (RMB) or the Chinese yuan. As ConsenSys’ head of global business development Andrew Keys revealed in his blog post, the Royal Chinese Mint is at the forefront of research and exploration into digital money.

By utilizing the ERC 20 token standard, the Royal Chinese Mint is essentially considering the possibility of releasing unique tokens that are compatible with the Ethereum network; an Ethereum-compatible token would grant higher liquidity and interoperability.

The Royal Chinese Mint is currently “concentrating on the research and exploration of the forefront of digital money, taking part widely in innovation and practice in the fields such as digital currency, mobile finance, smart-city construction and Internet-based finance; it also actively promotes the application of blockchain technology in finance and related fields,” wrote Keys.

Apart from the Chinese government, Russia is also looking into Ethereum and its potential in the finance sector. Although technical specifications and details of the Russian central bank’s national digital currency project remains undisclosed, in 2016, the Bank of Russia announced the development of an Ethereum-based interbank blockchain prototype called Masterchain. Some of the largest commercial banks in Russia participated in the pilot test, and the Bank of Russia’s Deputy Governor recently expressed her optimism toward cryptocurrency.

“Regulators of all countries agree that it’s time to develop national cryptocurrencies, this is the future. Every country will decide on specific time frames. After our pilot projects, we will understand what system we could use

Highlights from the Blockchain and Bitcoin Conference Prague

The Blockchain and Bitcoin Conference Prague 2017 took place on May 17, with attendees hearing from speakers on topics ranging from investing, mining, and regulation. The conference was held next to Vienna House in a hotel in the Andel district of the Czech capital. The area hosts a shopping centre with a bitcoin ATM and is across the river Vltava from the ‘old city.’

Here we detail some of the highlights from the event.

One of the most interesting speakers was WAVES CEO and Founder Sasha Ivanov. The altcoin has been making rapid progress, recently entering into the top ten cryptocurrencies by market capitalization according to CoinMarketCap and pushing into the top 20 on CoinGecko.

WAVES is an open blockchain platform, while Bitcoin is for money transfer it is not meant to store arbitrary data. Ivanov said that Ethereum is a great low-level approach, but has scalability issues. He says yes it is cool, flexible, but there are not too many production systems built on Ethereum at this stage.

Ivanov goes onto say that we don’t have any open blockchains that are production ready. Permissioned systems are more stable but they are not a blockchain. He says said that while what some banks were doing is cool, it is some sort of middle ground between the legacy system and blockchain technology. Ivanov stated that within ten years we should have production-ready solutions for open blockchains.

The WAVES founder also hinted at the next big thing in cryptocurrency; authenticated data structures. While most people point to storage of the blockchain as a major problem for adoption, a lesser known problem is that of state storage. To overcome these setbacks, WAVES will use authenticated data structures which are “going to be big in crypto” Ivanov reckons.

Using Bitcoin NG and

Decentralized Internet Startup Blockstack Announces Developer Edition of Browser

Giving the morning keynote speech on May 23 at the Consensus 2017 Conference in New York, Muneeb Ali and Ryan Shea, co-founders of the blockchain startup Blockstack, announced the readiness of the developer edition of their Blockstack browser.

New York-headquartered Blockstack is a bitcoin blockchain-based browser that seeks to create a new decentralized Internet. As things stand, information and data on the Internet is neither owned nor controlled by the users or clients but is in fact owned by large corporations who facilitate Internet access. Large corporations also own applications as data is stored in the application and, therefore, is belonging to the creator of the application. Applications can also sometimes override or ignore the limitations set on it by the user and have access to more than the user would like.

Along with the privacy issue, the Internet of today is not very secure as data is stored in large servers which if infiltrated compromise the security of all the data stored therein. Also, certificate authorities are not always trustworthy.

“With traditional apps, a secure connection is far from a certainty. Domain names and website certificates are vulnerable to compromise. Reliance on third-party servers and many trusted services makes us less safe,” Blockstack explains.

It is these inadequacies in today’s Internet that Blockstack seeks to remedy. “Data storage is simple and reliable and uses existing cloud infrastructure. Users connect with their Dropbox, Google Drive, etc. and data is synced from their local device up to the cloud. Identity is user-controlled and utilizes the blockchain for secure management of keys, devices, and usernames. When users log in with apps, they are anonymous by default and use an app-specific key, but their full identity can be revealed and proven at any time. Keys are for signing and encryption and can be

Prague will Host the Largest Conference Devoted to Cryptocurrencies and Blockchain

On May 19, the capital of the Czech Republic will host Blockchain & Bitcoin Conference Prague – the event dedicated to the development of cryptocurrencies and blockchain. Guests will meet supporters of a decentralized economy, successful blockchain developers and entrepreneurs and enjoy the exhibition of equipment for the industry.

Prague is one of the most important bitcoin centers in Europe. The city has around a hundred places which receive bitcoins (including only bitcoins without fiat currencies). Employees in such places often receive salary in cryptocurrencies and that’s why they are interested in attracting more clients.

A bitcoin owner can have a lunch, stay in a hotel and pay for educational and domestic services in Prague. A number of shops will accept a bitcoin card alongside with a traditional currency.

Implementation of contactless chips which can also be used for bitcoin transactions is quite popular among citizens of the Czech Republic.

These and other issues will be discussed at the conference.

Topics include the development of cryptocurrencies, blockchain in Govtech, blockchain services in Fintech as well as legal issues. Participants will study existing projects – from the idea to the moment of entering the market and monetization.

The organizer is Smile-Expo Company famous for its successful blockchain conferences in Tallinn, Moscow, St. Petersburg and Kyiv.
You can register and find details on the Blockchain & Bitcoin Conference Prague website.