Bitcoin pays a mortgage

Once upon a time in America, owning a home was the sacred Grail of the American Dream. The houses were expensive, of course, but with a stable job and a fixed-rate bank loan, you can plan for your future and expect to have a place to retire, even if you had to cut financially in other ways.

This was before the digging up of the US labor market made it increasingly difficult to find and keep a well-paid job, or that banks began to put “refinancing” on the market to allow people to live on “excess equity” in their homes, or that banks began to sell subprime mortgages to allow people to buy more houses than they should afford – sustainable, as long as interest rates do not rise!

And then the secondary market collapsed and undermined the entire economy, an event from which the world has not only not yet recovered, but with a new collapse that increasingly seems to be on the way. No wonder, according to some reports, 64% of Americans no longer think owning a home is a good investment. There has been some recovery in the housing market, but at least part of that movement is from rich people buying properties they want to rent – the rich dad’s strategy, the poor dad’s strategy of buying rental property is no longer the way to go up, but just another way for those who are already wealthy to keep accumulating big money.

On this fourth July weekend, at least one person no longer has to worry about their house due to an early and smart investment in bitcoin. The new homeowner reports to Reddit:

Two years ago, for the price of a one-month payment on my 30-year mortgage, I took a chance at bitcoin and bought 300 bitcoins from a friend. Yesterday I paid off my mortgage and took the whole family out to celebrate on the 4th. I just wanted to express my gratitude to the Bitcoin community. It’s amazing to feel debt-free on this day of independence.

PS: I still have a lot more coins that I’ve been able to take in the last few years.

Happy Independence Day, fellow bitcoiners …

Edit: Instead of paying the bank every month for the next few decades, I will return it to buy more bitcoins. The feeling is much better than paying the bank.

This man took the risk with bitcoin when he was even more unknown and undeveloped than he is now, paying only six dollars for bitcoin and now reaping the prize.

Is this an opportunity for many people who are currently struggling with housing and other financial problems? Probably not. For some, however, it may be. Despite a series of high-profile scandals, Bitcoin is still seeing an increase in acceptance, judging by the number of portfolios there, more and more companies are issuing posters “Bitcoin is accepted here”, VC continues to invest more and more money when launching bitcoins , banks are beginning to investigate bitcoins more seriously, both as a threat and as a possible tool, and even China and Russia are backing down.

The trend for bitcoin is positive, so people who invest now are very likely to see a large return. The only reason I say that most people will not take advantage of this is that most people will not take the risk. It is important to note that there is nothing certain here – investing in bitcoin more than you are willing to lose is never a smart idea. With that in mind, for some bitcoiners, like the editor above, bitcoin may just save the American dream.

Risks, rewards and dangers of ICO

Bitcoin revolutionized the introduction of the first decentralized digital currency in which people and businesses control their transactions instead of banks and credit cards. We now have another revolution in the form of an initial coin offering (ICO).

What is an initial coin offering (ICO)?

ICO is a relatively new fundraising tool that start-ups can use to raise capital through cryptocurrencies / tokens. Here, investors raise money either in bitcoins, and in Ethereum, or in other types of cryptocurrencies. It’s like another form of crowdfunding.

Advantages of ICO

Like bitcoins, the main benefit of ICOs is that start-ups do not have to deal with third parties such as banks and venture capitalists. ICOs offer a number of other amenities, namely:

  • Raising capital from anywhere in the world

  • Potentially high return for investors

  • Quick and easy fundraising

  • Principle of limited supply and demand, in which cryptocurrencies acquire value in the future

  • Tokens have a liquidity premium

  • Slightly to zero transaction fees

ICOs began to gain popularity in 2017. A great example from May 2017 was the ICO for a new web browser known as Brave. This generates over $ 35 million in just under 30 seconds. In October of the same year, the total sales of ICO coins made at that time amounted to $ 2.3 billion, which is more than 10 times better than its performance in 2016.

Risks and dangers of ICO

Like any new technology, especially given that millions of dollars are involved, there has been criticism and oversight by regulators. ICOs include risks, fraud and controversy that put them under the control of professional business and government officials.

Some common risks associated with ICOs include:

Lack of regulation

This is perhaps the biggest problem facing ICOs. As they do not comply with the laws and regulations of the centralized authorities, ICOs face a lot of speculation, debate and criticism about their legitimacy.

In the United States, the US Securities and Exchange Commission (SEC) has not yet recognized ICO tokens and investments, which leaves uncertainty about decisions about their regulation. Therefore, it may be better to invest in start-up ICOs that are affiliated with law firms.

Higherh Potential for fraud

Another thing with unregulated ICOs is that there is the potential for fraud or fraud. Those who gamble on ICOs are usually unwanted investors.

Investors do not know if a project that has not yet been launched will ever come out. ICOs do not even disclose any personal information. So for all they know, this whole thing is a big money laundering scandal. On the other hand, there are cases of this happening with crowdfunding.

Higher Chances of failure

A startup that gets its capital through an ICO has a better chance of failing. In fact, a report by a small team from Boston College in Massachusetts found that 55.4% of symbolic projects failed in less than four months.

Conclusion

Ultimately, ICOs are fast and effective crowdfunding opportunities, but with quite serious risks in terms of security, regulation and high chances of failure. It works for some startups, but most of them fail. Whether this is something that is moral or not depends on how you assess the consequences and how good your marketing skills are.

Coinbase: Launching bitcoin is spreading to conquer most of the market

The price of bitcoins jumped sharply in 2017. Coinbase, one of the largest cryptocurrency exchanges in the world, was in the right place at the right time to take advantage of the jump in interest rates. However, Coinbase is not interested in taking its cryptocurrencies for granted. To stay ahead in a much larger cryptocurrency market, the company is putting money back into its master plan. By 2017, the company’s revenue is reported at $ 1 billion, and assets of more than $ 150 billion are traded with 20 million customers.

Coinbase, a San Francisco-based company, is known as the leading cryptocurrency trading platform in the United States and with its continued success landed 10th on CNBC Disruptor’s list in 2018 after failing to make the list. in the previous two years.

On its way to success, Coinbase leaves no stone unturned in the poaching of key executives on the New York Stock Exchange, Twitter, Facebook and LinkedIn. This year, the size of his full-time engineering team has almost doubled.

Earn.com was acquired by Coinbase in April for $ 100 million. This platform allows users to send and receive digital currency while responding to mass market emails and performing microtasks. The company is currently planning to bring in former venture capitalist Andreessen Horowitz, founder and CEO of Earns, as its first chief technology officer.

According to current estimates, Coinbase was valued at about $ 8 billion when it set out to buy Earn.Com. This value is much higher than the estimate of $ 1.6 billion, which was estimated in the last round of venture capital funding in the summer of 2017.

Coinbase declined to comment on its valuation, despite having more than $ 225 million in funding from top VCs, including Union Square Ventures, Andreessen Horowitz and also from the New York Stock Exchange.

To meet the needs of institutional investors, the New York Stock Exchange plans to launch its own cryptocurrency exchange. The NYSE rival Nasdaq is also considering a similar move.

• The competition is coming up

While competing organizations try to bite off Coinbase’s business, Coinbase is looking for other venture capital opportunities in an attempt to build a trench around the company.

Dan Dolev, an immediate Nomura analyst, said Square, a company run by Twitter CEO Jack Dorsey, could feed into Coinbase’s stock business since it began trading cryptocurrency in its Square Cash app in January. .

According to Dolev’s estimates, Coinbase’s average trading fees were approximately 1.8% in 2017. Such high fees could direct consumers to other cheaper exchanges.

Coinbase seeks to become a one-stop shop for institutional investors while hedging its stock business. To attract the investor in this class with white gloves, the company announced a fleet of new products. This class of investors are especially wary of immersing themselves in the volatile cryptocurrency market.

Coinbase Prime, The Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets are the products launched by the company.

Coinbase estimates that there are billions of dollars of institutional money that can be invested in digital currency. It already has a $ 9 billion deposit of client assets.

Institutional investors are concerned about security, even though they know that Coinbase has never suffered a hack like some other global cryptocurrency exchanges. Coinbase’s president and chief operating officer said the impetus for launching Coinbase’s trusteeship last November was the lack of a trusted trustee to protect their crypto assets.

• Wall Street is currently moving from Bashing Bit to Cryptocurrency Backer

According to the latest data from Autonomous Next Wall Street, interest in cryptocurrency seems to be increasing. There are currently 287 cryptocurrency hedge funds, while in 2016 there were only 20 cryptocurrency hedge funds. Goldman Sachs even opened a cryptocurrency trading office.

Coinbase also introduced Coinbase Ventures, which is an incubation fund for early-stage startups operating in cryptocurrency and blockchain. Coinbase Ventures has already raised $ 15 billion for further investment. His first investment was announced in a startup called Compound, which allows a person to borrow or lend cryptocurrency while earning an interest rate.

In early 2018, the company launched Coinbase Commerce, which allows merchants to accept major cryptocurrencies for payment. Another bitcoin launch is BitPlay, which recently raised $ 40 million in risky money. Last year, BitPlay processed over $ 1 billion in bitcoin payments.

Proponents of blockchain technology believe that in the future, cryptocurrency will be able to eliminate the need for central banking authorities. In the process, this will reduce costs and create a decentralized financial solution.

• Regulatory security remains intensive

To limit access to four cryptocurrencies, Coinbase has drawn a lot of criticism. But they need to step carefully as US regulators consider how to control certain uses of the technology.

For cryptocurrency exchanges such as Coinbase, the question is whether cryptocurrencies are securities that would be subject to the jurisdiction of the Securities and Exchange Commission. Coinbase has been slow to slow down the addition of new coins since the SEC announced in March that it would apply security laws to all cryptocurrency exchanges.

The Wall Street Journal reported that Coinbase met with SEC officials to register as a licensed broker and e-commerce venue. In such a scenario, it will be easier for Coinbase to maintain more coins and also to comply with security regulations.