Top Bitcoin News of the Week: Blockchain Banking, Gold and Growing Interest

Bitcoin: A week under the sign of cards. Bitwala begins with its blockchain bank, TenX begins with KYC checks. We’ll explain why Bitcoin is better than gold. Top Bitcoin news of the week.

Once again a week moved into the country, in which all kinds of things happened in the world of crypto currencies and blockchain technology. For all of you who spent the last week behind the moon, forgot everything or just want to know what happened in the field of crypto: the BTC-ECHO-Newsflash. The most important at a glance.

Cryptosoft: Blockchain Banking begins

On 12 December, Bitwala gave the go-ahead for its Blockchain Bank. In cooperation with solarisBank, the FinTech cryptosoft company now offers cryptosoft and traditional banking services from a single source – including crypto debit cards.

Breaking: TenX launches credit card
Number two of our article of the week goes to TenX. The crypto company around Dr. Julian Hosp gave the starting signal on the same day as Bitwala – for the start of the Know-Your-Customer checks of their customers. However, the two crypto card companies should (for the time being) not get in each other’s way. TenX initially focuses its card on Singapore and the Asian region. It will take some time before the TenX cards reach us.

5 reasons why Bitcoin for crypto trader is better than gold

Bitcoin: Better than gold? You can already hear Warren Buffett and his friends snorting angrily through their permabar nostrils. But crypto trader don’t really care. Because here are 5 reasons why Bitcoin is better than gold:

Bitcoin falls? Interest is rising – a silver lining on the horizon
Apropos Perma: The crypto market and the flourishing industry around it are probably quite indifferent to the current frosty weather on the Bitcoin market. Blockchain developers are in demand like never before, the Google search volume for Bitcoin & Co. is constantly increasing. In short: Interest in Bitcoin is rising – despite falling prices.

Gemini: Exchange opts for Bitcoin ABC (BCH)
The Winklevoss brothers don’t seem to mind the current prices either – especially with regard to Bitcoin Cash. The crypto currency, which should now be called Bitcoin ABC but which somehow remains the old one, is listed on the Gemini stock exchange of twins for the time being. However, they’re not quite sure about „Vision Satoshi“ yet.

The situation on Wednesday: Bitcoin à la carte
Our middle of the week was also dominated by the cards: Bitcoin à la carte was a hot topic last week. Why was that so? Read it yourself.

Bitcoin price could rise above $13,000 according to Cliff Highs estimate

Clif High’s estimate that the Bitcoin price next year will reach the price of three ounces of gold may sound bizarre to some, but it is not impossible. He estimates that an ounce of gold will be worth around $4,800 next year. Growth: 300%.

An accompanying Bitcoin price increase from a meager 1,180 US dollars to 13,000 US dollars sounds attractive. It could reflect a repetition of the scenario from 1979/1980. At that time there was an economic crisis in the industrial world.

This link to the historical event is particularly appropriate because High’s calculations and leanings have already proven to be very accurate in the past.

Facts and figures of the Bitcoin revolution

Between 1978 and 1979, the price of gold rose by 120% from USD 207 to USD 455, the highest value in history at the time. Due to the strong oil price, the soviet intervention in Afghanistan and the influence of the Iranian revolution, there was high inflation, which drove Bitcoin revolution investors into the precious metal. Read more about it:

In January 1980 the gold price then reached a record high of $850 per troy ounce and investors felt weighed in the safe haven – a rise of 310% between 1978 and January 1980.

Finding out how much gold has ever been produced is difficult. Estimates are around 6 billion ounces – that is currently around 375 ounces of gold per Bitcoin, assuming that around 16 million Bitcoins have been mined to date.

The number of ounces to be produced in the future is unknown, but what is known is the finite number of Bitcoins to be mined. In the coming years, around 123 years, a maximum of 4.8 million Bitcoins can still be mined. The whitepaper has a maximum number of 21 million Bitcoins.

Important success factors of the Bitcoin revolution

Mining a Bitcoin revolution will be more difficult than mining an ounce of gold, even though interest in both commodities continues to grow steadily. It can therefore be assumed that the price of both commodities will rise over time – but the recent Bitcoin revolution rise leaves some doubt as to whether gold can continue to secure its status as the most popular asset in the future. Moreover, over the past three years the price of gold has fallen steadily.

Argumentations that either gold is overvalued or Bitcoin is undervalued are already sparking big discussions. The general understanding that Bitcoin will increase in value and is easy to handle is attracting increasing interest from people in a wide range of industries.

Due to the availability and advantages over gold, including transferability and the elimination of unattractive banking practices, the price per Bitcoin has risen steadily over recent times. Even arguments against Bitcoin, such as the resource-intensive Bitcoin mining process and dependence on the Internet, could not stop the share price from rising.

More and more millenials are choosing Bitcoin, even though gold has proven its intrinsic value and existence over hundreds of years. Bitcoin is easier to use and hits the nerve of time.

Bitcoin is decentralized, easy to transfer, harder to falsify and the difficulty to mine Bitcoin increases. These are the core characteristics that are increasingly distributed to the masses in favor of Bitcoin and that may lead to the price per Bitcoin rising even higher than the estimated 13,000 US dollars within 12 months.

Can the blockchain provide copyright protection?

Copyright protection via the blockchain is one of the promising technologies of the future, from which better protection mechanisms can be opened up with a decentralised orientation. In this way, the blockchain would support the concept of smart contracts. The sale or rental of digital products only works if there is appropriate copyright protection as a counterpart.

Bitcoin loophole: The idea of the copyright block chain

The idea behind the principle of Bitcoin loophole management is based on the management of the original data in the block chain. This would make it possible to use the Bitcoin loophole blockchain to find out whether a file is the original version of the digital work, or whether the work was acquired by an unauthorized party.

In fact, there is already interest in storing creative works via a blockchain. For example, Blockai, Pixsy, TinEye, Ascribe, Mediachain and Proof of Existence have chosen to use this technology because they trust the decentralized administration.

When the blockchain stores who is watching the news spy

The core of the news spy concept is the administration of rights and the registration of users of digital works. Addison Cameron-Huff, a lawyer from Toronto, sees this as a great challenge: Here is the news spy review.

One possible application of blockchains is the registration of owners (a history of owners). It can be very difficult to track the ownership of copyrighted works so that artists of different works are registered as authors. A blockchain would be a good way to do this.

This would involve storing who has (lawful) access to the respective content.

The ownership blockchain in practice
Blockai uses the blockchain for writers and artists to record the creation of new works with time stamps. The aim is to keep an eye on copyright infringements and detect them automatically.

Each user has a profile, in which the respective certificates are administered, which permit access to certain media. Once uploaded, the service can track content usage and inform the owner of unauthorized access.

As Blockai says, the conventional copyright system has long been outdated and urgently needs to be further developed:

It is obvious that the current copyright system in the United States is far behind the digital age and does not provide nearly enough resources for victims of digital theft, especially if you are fighting against a larger and more powerful organization.

Austria: The Optioment case and new regulatory efforts

The Austrian Financial Market Authority advocates stronger regulation of crypto currencies and ICOs. Helmut Ettl, Chairman of the Financial Market Authority, spoke of fraudulent intentions in the crypto ecosystem, which one wanted to forestall. A prime example of such fraudulent intentions was the Optioment case.

Since the beginning of the year, the „Optioment“ case has mainly occupied the Austrian Bitcoin scene. More than 10,000 people lost up to 12,000 Bitcoin – we reported. In their search for the perpetrators, they went so far as to call in Interpol and spread the search across the whole of Europe.

The three Bitcoin secret Optioment musketeers

Optioment promised up to four percent weekly returns – for investing its Bitcoins with them. The Bitcoin secret had disappeared afterwards just like the presumed backers, who could not be found up to today. In the course of this the public prosecutor’s office investigated against altogether seven persons because of business-like fraud. Read this: Bitcoin Secret Review 2018 » Full Scam Check Only four persons, who led the selling in Austria, could be identified. A Lower Austrian and two brothers from Styria, called the „three Optioment Musketeers“, who met regularly with a contact man, his Tyrolean sign. He is regarded as a key figure. As contact man he is said to have connected the (apparently unsuspecting) Optioment musketeers with the „wirepullers“, the Dane Lucas M. and the Latvian Alex P..

The „long business trip
Whether the latter, however, exist or whether they are just like the promised returns a vertigo, is not yet certain. The key figure last spoke in April: he is currently on a „long business trip“, but will soon be talking to the authorities. He would also like to know for himself where Lucas M. is. After all, he also lost money.

The Tyrolean is a co-founder of Cointed, who have since distanced themselves from him. So it happened that the authorities searched Cointed’s rooms. Because the Bitcoin vending machines, which were set up at Optioment events and with which investors were bounced for their money, came from this very company. This allowed them to put their cash directly into the machines and invest the Bitcoin in Optioment. Accordingly, the rooms of Cointed were also searched, but no incriminating material was found. Cointed promised to cooperate with the authorities and distanced himself from that Tyrolean. The Provincial Police Headquarters in Vienna estimated the damage at 100 million euros in February.

Current regulatory cryptosoft efforts – a delayed reaction?

It is a case that an Austrian law firm later described as „one of the biggest criminal cases involving cryptosoft currencies“. Now he apparently – albeit somewhat belatedly – is calling the regulatory authorities onto the scene. The chairman of the Austrian Financial Market Authority calls for stricter regulation of cryptosoft currencies and ICOs. One of the reasons for this is to prevent fraud:

„Last year, we submitted 50 factual reports to the public prosecutor’s office. About 30 of them dealt with crypto currencies and initial coin offerings,

said Helmut Ettl at a press conference in Austria.

Ettl also called for a classification of crypto currencies based on foreign exchange trading in order to create more equality there: „You need a mini-bank licence to buy and sell foreign exchange“, Ettl continued, „that’s not proportionate“.

After all, ICOs with a threshold value of presumably two million euros or more are required to have a securities prospectus. In addition, traders with crypto currencies should be obliged to hold a concession.

Until this is enforced, perhaps that Tyrolean will also speak up and talk about his „long business trip“. It remains exciting.

The Bitcoin proxy war: Classic vs Core

In the following statement by Martin Hagelstrom, the Bitcoin enthusiast and project manager at IBM explains why a very important point is concealed in the current blocksize debate.

First of all, we should all agree on one thing

Bitcoin is a great innovation whose technology can regulate an entire economic system. It is also decentralized and thus prevents deliberate human intervention and manipulation of the network.

But Bitcoin is far from „perfect“ yet. There is currently a debate about changing the code. If the change is accepted by the network (the community and the programmers), the capacity of the transaction blocks in the block chain would increase and „give the currently overloaded network air“ again. Although it may not be a trivial modification, it is still an explosive coding discussion.

But can we really assume that it is not a trivial change? What if the blocksize debate is in reality a proxy war to prevent an even more important debate?

But before we get to the point, we have to go a little further

Classic vs Core
On the one hand we have the Bitcoin Core developers who took over the project from the pseudonymous developer Satoshi Nakamoto after the Bitcoin birth and have been developing it ever since. Ultimately, they decide which changes to the Bitcoin blockchain are adopted and which are not.

They have also developed a way for the community to contribute to changes in the code. Some of these suggestions are often difficult to implement or are rejected by the core team because they may pose a threat to the entire network.

However, we should not forget at this point that Bitcoin is an open source project in which other development teams can copy the code and further develop it as they see fit.

That’s exactly what the Bitcoin Classic Team does. The team includes former core developer Gavin Andersen and Bloq CEO Jeff Garzik. They want to increase the block size from 1MB to 2MB and thus double the transaction flow per block.

The Bitcoin Core Team has found a similar solution: They want to increase capacity by reducing the amount of memory required for a signature in the block (Segregated Witness).

The interesting thing about Classic, however, is that they openly communicate their proposal to the Bitcoin community and their proposal can be implemented in just two months. That would be a big change for Bitcoin.

The core development team has been increasingly urged in the past to communicate more openly with the community and let them participate in the changes-such as the new website, a new slack channel, participation in podcasts, or attending Bitcoin events. Here they are asked to tell the community why they believe Bitcoin Classic is the wrong approach.

Of course, this was not without friction, abuse and blame, but we should be grateful to the Classic team for making this „evolution“ possible.

Payment vs Settlement
Let us come back to the actual reason for the article: Why is the debate being used to prevent a much larger point from being discussed?

In short, we have two groups. One group (Bitcoin Classic) sees Bitcoin as a payment network, the ultimate network to replace traditional payment methods. The other group (Bitcoin Core) sees Bitcoin as a settlement network where end users should make use of sidechains, for example the Lightning network or other platforms that will act as payment platforms in the future.

So on the one hand we have the advocates for a Bitcoin blockchain that can handle more transactions at lower cost after increasing the block size (from 1MB to 2MB) and on the other hand the advocates for a blockchain that can handle fewer but larger transactions at a higher price.

That’s why I think the blocksize debate (Bitcoin scaling) is about much more than just increasing the block size. I see it as a proxy war where there is much more at stake.