Cryptocurrency.. a vision of a new world OR just a another bubble waiting to burst?


#1

Cryptocurrency has so much potential for the future of finance around the world but all this speculation has caused a few rattles in the [block]chain.
Check out our very own #dataxinja sharing some insights on our blog;
https://www.xinja.com.au/news/2017/whats-the-fork-is-happening-with-blockchain/

Xinja is excited about the future of money and we want to here what you think.
Is the chain about to break OR are crypto-coins here to stay?


#2

I hope you will hear (rather than here) this response :wink:. Crypto prices are nuts. The tech is next level and getting better by the day. Some enthusiasts want to use Crypto as their only banking service, but rather than see it as a threat, banks should embrace Crypto and the blockchain technology. There are banks in this country that have shut down business bank accounts related to Crypto and discouraged customers from purchasing. This could be a great opportunity for a new player in Banking, hint, hint.


#3

We hear you Matt! @jerrylewis We’ve been asked this before and we wouldn’t shut down an account because it was related to Crypto - if there were other reasons to suspect fraud we would but not because of a Crypto connection per se. Watch this space :slightly_smiling_face:


#4

I read a little bit about crypto but don’t pretend to really understand it.

I would agree with some commentators that quite a few crypto coins are probably pump and dump schemes. Make the owners rich, everyone else poorer.

Interested to see where those using the blockchain in a more traditional financial business services end up (e.g. RIpple).

Also interested to see whether those supporting bitcoin can continue to do so to the point where it becomes a viable payment system. Volatility seems to have been holding it back as a reliable payment method todate.


#5

I’m an advocate of cryptocurrency to a degree, I still can’t see how this is going to work on a grand scale as my parents still struggle to select the correct source on the television while trying to watch something on their VHS player. Point being how do you convert the masses? It’s going to require some sexy no nonsense front end that will provide a comfortable and secure feeling.

As for blockchain as a technology, I just don’t think it’s the one, as mentioned in the blog post the scalability just isn’t there. I am interested in the IOTA foundations efforts with their “tangle” technology. I’m still struggling to get my head around how it reaches consensus, but the concept seems pretty solid and the scalability could really change people views on cryptocurrencies.

I feel the cryptocurrency scene is still a bit of an experiment and until a proven scalable technology comes to market, long term mass adoption is way off even with that sexy front end.

One question I have is, with all the worry about computing power to resolve the blocks in a blockchain, typically how much computing power is being used to prop up the current banking infrastructure?


#6

No idea!!! But this is one for @dataxinja - Stu - can you possibly work this out?


#7

@two_seven great questions!! While we’ve been quite critical of some of the hype around Bitcoin, we are in fact strong advocates of the underlying technology (blockchain) and Bitcoin as an application.

We are currently writing a blog titled ‘The Case for Bitcoin’ and hope to put this out sometime next week, hopefully this will shed some light on some of your questions :ninja_emojis_pink_02:

In the meantime here are some fantastic resources related to some of the topics you’ve mentioned that that really helped me grasp the technical and philosophical concepts around blockchain.

Resources
Internet of money - https://www.amazon.com/Internet-Money-Andreas-M-Antonopoulos-ebook/dp/B01L9WM0H8

  • If you want to understand the significance of money and ‘why’ of blockchain and cryptocurrency READ THIS BOOK!!!

Blockchain Demo - https://anders.com/blockchain/

  • High-level End-to-end demo of how a transaction is approved and validated.

Bitcoin and other cryptocurrencies - https://www.coursera.org/learn/cryptocurrency

  • Princeton Online course on the fundamentals of blockchains

Mastering bitcoin - https://unglueit-files.s3.amazonaws.com/ebf/05db7df4f31840f0a873d6ea14dcc28d.pdf

  • Another book written by Andreas and goes into deep technical detail as to how the blockchain works.

DAGS (Tangle) Alterative to blockchains

Explanation of Iota - https://www.youtube.com/watch?v=B37UbzPlSzw&t=748s
Hashgraph - https://www.youtube.com/watch?v=RDLdGsDX41s&t=442s

  • Relatively accessible explanation of IOTA/Hashgraph and how it differs from proof of work (main blockchain protocol).

Hopefully these resources are somewhat helpful in getting more clarity around how the tech works and its applications :ninja_emojis_blue_03: :ninja_emojis_pink_02: :ninja_emojis_blue_03:

In terms of your last question to be honest I’m I don’t know what the exact comparison would be. However, here is clip that turns that has an interesting perspective regarding Bitcoins energy consumption. https://www.youtube.com/watch?v=2T0OUIW89II
:ninja_emojis_blue_01: :ninja_emojis_pink_03:


#8

I can’t fault this response one bit. Thanks @dataxinja I’ll get myself through some of these and get back to you. :blush: :+1:


#9

IOTA releases Trinity Wallet (Mobile) beta. Desktop coming soon. The community has been long awaiting this release as it marks a big step in validating the use case of a DAG over out and out blockchain technology on a large scale.


#10

I’ve dabbled in Bitcoin and other Crypto-currency but only what I could afford to lose. I think it has huge potential and will eventually become mainstream but until it legally gets seen and approved it will be minor.

I’m one for hoping it gets going and becomes mainstream.


#11

Computing power is by the people mate. Not a single company, miners are the guys that compute the blockchain.


#12

I love crypto, mainly for profits. Mass adoption is coming and front end UI for new people is also here. Just need to improve on it.

Banks are in it, and more are considering
A large amount of every day people all over the globe
Governments
We are taxed on it
Financial Industries
Retail
Last move needed is large Industry Investors

The latter assuredly with some slow movement will generate the beginning of mass adoption


#13

My question was more about comparing the amount of energy currently being used to host each banks individual ledgers vs the current block chain offerings.

Block chain as a technology is brilliant and seems so obvious now we have it, however its highly inefficient as it scales.

I honestly think we’re still in the innovators/early adopters phase at best. It’s great that it’s getting out there, but since dabbling more in that scene I can’t see your everyday person getting on board for a long time.

We live in echo Chambers and tend to forget how ahead of there curve we are when we have specialist interests.

Reading recently, only 2% of the adult population know about Monzo here in the UK, yet I’m surrounded by people that use it and love it. It’s the same with cryptocurency right now. The majority can’t comprehend what it is even if they’ve heard of it. It’s going to take further innovations to get it to the masses.

Current currency systems have nothing to worry about just yet, but it’s good to see banks looking into and utilising the technology.


#14

Saw this today, https://www.economist.com/the-economist-explains/2018/07/09/why-bitcoin-uses-so-much-energy I had no idea they were so bogged down!


#15

Yeah it’s really not a great solution, hence my love for IOTA, but it’s great to see the block chain technology get pushed to its limits and truly understand its capabilities.


#16

The tangle! I really need to upskill my emerging crypto knowledge. What do you like about IOTA?


#17

Ha I need to upskill and maintain my knowledge, I’ve fallen off the map lately.

It’s all still being worked on, but I really like the requirement for a low cost proof of work method, the concept of the tangle altogether which enables scalability, the teams reporting of their work and collaborations with businesses, they’re seem like a really transparent non profit and we’re getting to see this concept grow in real time rather than having it thrust upon us like many of the other cryptos out there.

I have high hopes and if it doesn’t work out, at least we’ll have learnt something, that’s value right there!


#18

The idea of billions of little appliances all managing themselves, from new purchases to product updates, and even repairs, excites me to no end!


#19

The blockchain is an inherently good idea, but I’m still not sold on cryptocurrency as a good use for it… though Ethereum piques my interest. I guess I’ve been a bit burnt out by hearing of all the ICO scams though.


#20

The concept of block chain I get, how this data is maintained worldwide, hits TPS speeds to rival Visa I really don’t know. Again its just another form of database that has to be maintained by one business if people keep reinventing their own blockchain platforms.

What will this mean for the data centre business model?