CryptoURANUS Economics: 08/11/18

CryptoCurrencies


Saturday, August 11, 2018

Ripple [XRP]: Defined in CryptoCurrency



Ripple [XRP]:








About: 

Ripple is a cryptocurrency with technology that allows organizations such as banks and companies to securely and instantly send money at almost no cost.

Introduction:

Ripple is a RTGS which means a real-time gross settlement system. It also goes by the name Ripple Transaction Protocol (TRXP) or Ripple protocol. 

It is built on a distributed open source Internet protocol, consensus ledger and native cryptocurrency called XRP (ripples).
Ripple wants to enable a secure, instant and almost free global financial transactions of any size, with no chargebacks.
It is based around a shared, public database or ledger.
In many ways Ripple is like Bitcoin. It’s XRP unit is a digital form of currency based on mathematical formulae and has a limited number of units. Unlike Bitcoin, Ripple can't be mined.
Ripple doesn’t position itself as a competitor with Bitcoin, in fact, they consider their selves as a complement to Bitcoin.
There are 100 billion ripples from which 50 billion are to be released for circulation, while the other 50 billion are to be taken by the company. 

Benefit to Bitcoin users:

Ripple has promised expedited transactions and increased stability.

As a disperse network, Ripple doesn’t depend on a single company to manage and secure the transaction database.
There is no waiting on block confirmations and transaction confirmations go through the network in 4 seconds.

Technology:

XRP is the native currency of the Ripple network and only exists within the Ripple system.

Drop is the smallest unit that Ripple goes with. 1 XRP contains 1 million drops.

When Ripple was created, it consisted of 100 billion XRP. No more were allowed to be created because of the protocol’s rules.

Because of this, the system was designed so that the XRP is a short in supply asset. The available supply is decreasing as we speak.

XRP Distribution:

There are 100 billion XRP.

In the initial creation, Ripple had 100 billion XRP created.

From these 100 billion the creators took 20 billion for themselves.

The remaining 80 billion of the total were given away.

This was a marketing scheme to make XRP popular and relevant.

Influencers:

Brad Garlinghouse, Ripple’s CEO and a member of the Board of Directors.

Before becoming the CEO of file collaboration service in Hightail, he was

President of Consumer Applications at AOL from 2009 to 2012.

He also held various positions at Yahoo! from 2003 to 2009, including Senior Vice President (SVP):
Asheesh Birla: - The Vice President of Product for Ripple.
Patrick Griffin: - The SVP of Business Development for Ripple.
Cameron Kinloch:The VP of Finance at Ripple.
Stefan Thomas:The CTO of Ripple.


Advantages:

  1. Ripple is known as a legal tender by several governments.
  1. This gives Ripple a high volume of activity in the financial institutions.
  1. It also gives them power to purchase material goods.
  1. Coming from this, you cannot evaluate Ripple like you would evaluate other coins, like Bitcoin, Ethereum, etc.
  1. These coins are assessed entirely on assumptions.
  1. Ripple operates differently from some other payment networks or cryptocurrencies.
  1. Instead of competing with financial institutions, its technology uses them to facilitate the payments.
  1. Ripple doesn’t want to dominate other currencies, but to support multiple digital currencies, including fiat currencies.
  1. Members of Ripple do not require conversion from local currency to Ripples (XRP).
  1. Ripple’s payment either goes through or fails.
  1. Quick block creation and transaction time (4 seconds).
  1. XRP consistently handles 1500 transactions per second and can scale to handle the same throughout as Visa.
  1. Open-source technology, built on the principles of blockchain with a growing set of validators.
  1. Ready for institutional and enterprise use.

Disadvantages:

  1. Can’t be mined. Have to be purchased.
  2. Ripple wallets require you to have 20XRP to book your wallet address.
  3. The amount of XRPs owned by one company gives it a negative reputation.



White Paper: Defined in CryptoCurrency


The White Papers:













About:


A white paper is defined as a marketing document designed to explain a complex product or service and persuade you into believe in its benefits.

The purpose of a white paper is to create interest, educate, and sell a concept to potential buyers.

With crypto, white papers are created as one of the very first documents to explain what it is, what makes it unique, describe the technology behind it, etc.

Unlike typical sales material, a white paper is more conservative.
It is less about sounding special, and more about providing facts, statistics, and explanations. 

They are often 6+ pages long and include a title, table of contents, introduction, pages describing the problem and solution, and a conclusion.
A good white paper builds trust in potential buyers. 

In the cryptocurrency space, a whitepaper is a document presented by a start-up with the intention of informing and encouraging investors to participate in the start-up’s ICO. 

If you are unsure about what an ICO is, then please check out this article here. 
A whitepaper contains more technical and in-depth discussions on the project that the start-up is building. 

This could include: 

  • The consensus algorithm the project decides to use, how the nodes that operate on project’s platform would function, and the token system.
  • Although not all white papers will have the same structure, they tend to discuss in some form or another the following topics...

 

Introduction:


  • Definition of the problem
  • Project’s technical solution
  • Applications of the project
  • Roadmap
  • Token sale

An introduction is important in providing a primer as to what the reader can expect from reading the whitepaper.

It can vary in technical difficulty depending on the audience that the whitepaper is intended for.

A definition of the problem that the start-up is trying to solve provides context as to why the project is needed in the first place.

The clearer the definition of problem to the reader, the easier it becomes for them see the need and therefore the potential benefits of the project.

The project’s solution to the proposed problem is an area of a whitepaper that tends to be more technical.

It demonstrates to those able to understand that the project is feasible.

It also shows to an extent, that the team behind the project has a good grasp of the technology in-order to successfully implement it.

A start-up’s white paper is likely to detail the relevant applications of their actual project. For example, the application of Bitcoin as a peer-to-peer electronic cash system.

Or the application of Ethereum as a decentralized platform that runs smart contracts. It is paramount that a start-up can demonstrate a real-world application for their project.

A roadmap sets out a project’s objectives and a date for which they intend to achieve this by.

A roadmap is important in managing the expectations of the people interested in a project.

The more realistic the roadmap, the better managed the expectations of the stakeholders will be.

If a project habitually fails in meeting the goals set out in their road-map, it may be point of concern for the investor.

This section typically contains details on the sale of the token, such as: Duration of the token sale, the number of tokens that will be on sale, and how to participate in the token sale.

With the recent throng of ICOs, it is important to understand the information that present in their whitepapers.

To do that, it’s important to understand what a whitepaper is.



How to Read a Cryptocurrency Whitepaper.


Cryptocurrency White Papers 101:



If you’re interested in the blockchain space, whether as an investor, businessperson, or developer, one thing you can’t avoid is white papers.

Every week, there is a new blockchain or cryptocurrency white paper touting new technologies that will “revolutionize” the industry.

In addition, many of the major projects in the industry, like Bitcoin and Ethereum, began with white papers.

As a result, white papers have come to be known as an essential part of creating a new blockchain project or cryptocurrency. Investors, businesspeople, and developers expect to see a document that explains what problem the project solves and how it does so.

Consequently, learning how to read a white paper is a critical task for anyone getting involved in crypto. As most investors and observers in the industry know, there are quite a few scams in the space.

Understand that, many projects sound good, with the right buzzwords and marketing speak, but they’re not backed up by any follow-through, and they quickly fizzle out. In this article, we’ll take a look at how to spot a good white paper with a valid idea and technical chops to actually execute on the idea.

White papers are documents that explore a use case for a product or service.

While most blockchain investors think of cryptocurrency white papers, they have a long history in technology and business generally.

The White papers are not limited to technical applications, and there really aren’t any rules for what constitutes a white paper.

Anyone can publish one. Ultimately, they’ve become as much about marketing as they are about explaining a problem and a solution.

Savvy companies use white papers to establish themselves as experts in a domain, in the hopes that competitors in the industry will reference their “research.”

However, white papers have no peer review and no limitations. It’s helpful to think of them just as “reports” or even “idea papers.”

The term “white paper” has developed a cachet around it that signals technical expertise. But I hope by now you realize that might not be the case.

Just because it’s called a “white paper” doesn’t mean that it’s special or different from any other marketing document.

Therefore, you would be wise to not always believe what you read and constantly question any white paper you come across.

Not all white papers are garbage. Now, Satoshi had an original vision for the Bitcoin protocol came in the form of a white paper.

The next great blockchain platform will also likely have a white paper ahead of its working product. However, be wary.

Scam coins and pointless projects can have white papers, too.

There are a couple key questions you should ask to determine the legitimacy of a cryptocurrency white paper:

I. What does this project do?


The first question should be fairly straightforward, but quite often you’ll find white papers are confusing. 
The combination of buzzwords, technical jargon, and made up names that you find in the typical cryptocurrency white paper is frequently difficult to decipher.


If you’re not sure what the project does, there are two likely conclusions. Either the project is so advanced that you’ll need more knowledge before you understand it, or the project doesn’t really do anything.


In either of those cases you probably shouldn’t invest in the project yet. 
No matter what other people say or what you’re reading on Twitter, Reddit, or the forums, if you don’t understand a project, don’t invest in it.

II. How does it work?

After you find out what a project aims to accomplish, the next question is “How?”

 

Bitcoin and white paper:

A good cryptocurrency white paper should explain how the technology will work, and the best white papers do so with varying levels of complexity and technical knowledge required. 

This is where the original Bitcoin white paper really shines. 
It is among the most readable and understandable blockchain white papers ever written. 

It’s also not very long, in contrast to many modern white papers. 
If you’ve never read it, the Bitcoin white paper is a good place to start. 
It will give you a good baseline for what a great cryptocurrency white paper looks like.

Technology meme:

By the end of the white paper if you can’t articulate what problem the project solves and how it does so, then the white paper did a poor job. 

In fact, a well-articulated white paper is a sign of a well-thought out project. On the other hand, the opposite is also true.

III. Why do we need this project?

I could build a blockchain project that specializes in underwater fire protection, but would we really need it?

Obviously, that’s not a serious project. Nevertheless, it does raise an interesting point. It’s critical that you examine the project in the context of the real world. 

Who will actually use this product, and why is this solution better than anything they currently have? 

If the cryptocurrency white paper gives a solid answer to who needs this project and why they need it, then you’re onto a good idea.

However, before you invest your time or money in the project, do some research to see if someone else is already doing the same thing better. 
There are hundreds of blockchain projects out there, and perhaps a similar project already exists.

IV. Why do this on the blockchain?

Not every project needs to be built on the blockchain. There, I said it.

Blockchain pulp fiction:

Our current internet is a powerful tool, and many of the blockchain ICOs we’re seeing should really just be web apps.

Moreover, a lot of ordinary businesses are trying to capitalize on the blockchain trend to get access to capital.


That said, there’s nothing wrong with launching a company with an ICO for the fundraising model.

However, many startups try to sell their company as a novel use of blockchain technology when it’s really just a regular business.

The best white papers will be honest about why their solution needs the blockchain.

Many projects freely admit that they’ll only be using the blockchain for token generation and some smart contracts management, and that’s perfectly okay.

But if a startup claims to have some novel idea for blockchain-based carwashes or something like that, beware.

Go With Your Instinctive Common Senses, or Develop Them...
Focus on common senses based on your-own crytocurrency knowledge.



Whales: Defined in CryptoCurrency

The Land-Locked Whales 


About Whales in CryptoCurrency:

Regards private financial institutions forcing governments into regulations, investing cycles, and the FUD (fear, uncertainty, and doubt), is another key factor impacting cryptocurrency market activity related to this jargon word: “Whales.”

A Whale is a person, group, trust, and-or private financial institutional system  having an extreme high amount of currency capital to invest and manipulate in the cryptocurrency markets which is opposed to organic.

This private cryptocurrency collective institutions and individuals are called “Whales”.

The Whale is the largest creature in the ocean, so cryptocurrency Whales are the largest land-locked Whale players in the market.

Although some individual investors are Whales, they can also be groups or companies such as hedge funds or trusts. Any party who has a high amount of capital to invest in cryptocurrencies can qualify as a whale.

What is a whale in Cryptocurrency?


[Source - Bloomberg]: Occasional sighting of Bitcoin whales are leaving advocates of the biggest cryptocurrency anxious after what's already been a choppy week of trading. ... And some investors are blaming the gyrations on actions by large Bitcoin holders, known as whales.Apr 18, 2018.....
[InvestoPedia]: DEFINITION of 'Bitcoin Whale' A bitcoin whale is term in the cryptocurrency world used to refer to individuals or entities that hodl, (Hold On For dear Life), large amounts of bitcoin....

Known Cryptocurrency Whales:

There are a number of both individuals and groups who are currently known as Whales. Some of the best known Bitcoin Whales who are individuals include:
  1. Cameron and Tyler Winklevoss
  2. Roger Ver
  3. Charlie Shrem
  4. Satoshi Nakamoto


[Satoshi Nakamoto]:  "Satoshi Nakamoto is the name used by the unknown person or people who developed bitcoin, authored the bitcoin white paper, created and deployed bitcoin's original reference implementation.[1] As part of the implementation, they also devised the first blockchain database.[2] In the process they were the first to solve the double-spending problem for digital currency using a peer-to-peer network. They were active in the development of bitcoin up until December 2010."...


Satoshi Nakamoto is the anonymous-name used by original creator of Bitcoin.

This is said by the cryptocurrency that "Satoshi Nakamoto" owns around one million Bitcoins.

Though he can technically be considered another ghost in the machine, as a whale investor, it is unlikely that he would unload his BTC holdings, at least all at once.

The Winklevoss twins have rumor to own hundreds of thousands if not millions of Bitcoins.

The twins purchased BTC as an investment, so it is possible they will sell off their holdings at some point in the future ounce regulation begins enforcement by the family-names of all private financial institutions.

To put their investment into perspective, one hundred thousand Bitcoins is currently valued at around $1,100,000,000.

This makes Cameron and Tyler Winklevoss (and Satoshi Nakamoto) Bitcoin billionaires and most likely even trmillionaires if the cryptomarket is not taken over by private financial institutions.

Many top individual Whales could soon become more than Bitcoin billionaires, if the Whales force price changes continues as trend.

The known individual cryptocurrency Whales are groups and private companies.



These groups also control a large amount of Bitcoin and other cryptocurrencies, and they include:

  1. Fortress Investment Group.
  2. Pantera Bitcoin Fund.
  3. The private financial institution.

This have become well-over millions of Bitcoins from the illegal goods exchange site, Silk Road, the darkweb which includes Mafia's, Cartels, and other innocent people using such cryptocurrencies like Monero.

The U.S. government shut down Silk Road because illicit items were being sold on the site, such as narcotics, weapons, ammunition, and even murder, but this rabbit hole runs deeper.

Silk Road, was a guy overwhelm by his internet exchange empire of darkweb activities and the private financial institutions along withe .gov law-enforcement moved in and attempted to shutdown cryptocurrency, but failed.

Silk-Road owner payed a heavy privates as scapegoat and this will be example everyone should learn from as a prime-detective ground rules swimming in the private financial institutions darkweb life style.

Private Financial Institutions and the governments who refuse to remove themselves from the Royal Empire ruling over the planet earth should be respected above all, because if you can not learn their rule book then you too will end up as Silk-Roads.

Do Not Blame the Private Financial Institutions owned by family-names worldwide and the governments who serve them, blame only yourself for not learning their rules unwritten in stone.

When the U.N. influenced U.S. Government shut down the site, ( "Silk-Road" ),  the crypto-community assumes it took control of over 144,000 BTC, which the U.S. Government proceeded to sell, so said.

Under Assumption

 

The U.S. Government made over $48 million from the sale of these Bitcoins, assumed.

When the government sold off Bitcoin that it had taken control of, the current market price of a Bitcoin was only $334.

If U.S.Goverment waited a few more years to sell the, the U.S. government would have made billions of dollars, instead of only tens of millions.
Impact of Whales on the Market is-was minimal do to this lacking.

The activity of Whales can have a major impact on the cryptocurrency markets, including individual crypto prices and market capitalization.

When Whales make trades, they often do it for tens, or even hundreds of millions of dollars at a time.

Massive cryptocurreny selling or buying can lead to sudden significant price shift changes.

When a massive buy order is placed it moves the price of a cryptocurrency way up. This signals the market that the particular asset is in higher demand.

When Whales create a massive sell order, the price can go in the exact opposite direction because it sends the opposite signal to the market and causes the asset to look like it is being unloaded.

Basically, Whales make major buys or sells which influence the market and causes a cascade of buy or sell orders.

It is estimated that approximately 40% of all of the Bitcoins are held by roughly 1000 people.

With so few people holding almost a majority of BTC, any significant buy or sell from these giant investors could tip the Bitcoin market in either direction.

Potential for Manipulation:


The fact is a high percentages of cryptocurrency market traders held by a select few Whales makes some people fear that cryptocurrencies are ripe for manipulation like stealing candy from a child.

Even if just a few Whales colluded together to create a massive sell order, they could drop the price of a certain cryptocurrency dramatically. Then, they could all buy back at the reduced price and take cryptocurrencies from the so-called “minnows.” 

Minnows are people who only hodl a small amount of cryptocurrencies.

Debates cryptocurrency community regards manipulation is a common topic not making cryptocurrency organic.

People think cryptocurrency manipulation is very real, others thing it isn’t, and others still, think that it might be real, and it all does not matter that much.

Regardless of opinions cryptocurrency markets go through intense boom and bust cycles.

In fact, the price swings in cryptocurrencies are so intense that they make cryptocurrencies one of the most volatile assets in the entire world, and therefore, one of the riskiest to trade.

Significance of Price Swings Caused by Whales:


In its Nine -to- Ten year history, Bitcoin has gone through tremendous price swings.

The most recent price shift of Bitcoin dropped from just about $20,000 all the way down to an estimated low of $9,000, losing over 50% of its value in a matter of weeks.

Despite the dramatic “price crashes” that Bitcoin and other similar cryptocurrencies go through periodically, many recover extremely quick.

In late summer 2017, Bitcoin dropped from $5,000 to about $3,300. 

Next Bitcoin quickly rebounded; going on to make new all-time highs afterwards.

This is a major pattern with cryptocurrencies when they crash, recover, and surpass the value that they had when they crashed.

People often as this question:

 Just exactly how much does any manipulation or activity of Whales matter?

It seems the answer is that this does impact cryptocurrencies on the short term, but in the long run, cryptocurrencies have a pattern of shaking off any such influence.


What About Whale Holding?


Whales make large trades to make short-term gains, others like to “hodl”.  The Winklevoss twins are the perfect example of Whales who like to hodl.


Cameron and Tyler Winklevoss

Cameron and Tyler Winklevoss have not sold a single Bitcoin since they purchased $11,000,000 of Bitcoins.

This followed the payout they received from Mark Zuckerberg over the Facebook intellectual property theft lawsuit.

It is highly likely that many other Whales are also holding on for dear life.


Purported by high level colleges of Cameron and Tyler Winklevoss that the banker family-names gave them both 100% faith that cryptocurrencies will be worth a lot more money in the future.

The Twin Whales hodl and not selling their coins, reduces the amount of overall coins there are available to be purchased on the market.

This upward pressure on cryptocurrencies and push prices up dramatically.

Fewer cryptocurrencies that are available, the more scarce they become.

Scarcity makes prices higher and this is the reason why assets like diamonds and gold have reached higher prices on markets.

Essentially, Whales holding large amounts of cryptocurrency contribute to increases of crypto-assets over time.

Cryptocurrencies such as Bitcoin and Ethereum have been rising steadily for years.

If Whales decide to sell all at once, then it could cause a very serious market downturn.

New Whales could even be created by such an event.

Whales Concluded:


Whales are a significant part of the cryptocurrency environment.

Their actions can cause strong reactions in the market.

Some Whales make frequent trades that are high volume.

Other Whales simply accumulate as many cryptocurrencies as they can and hodl.

Regardless Whales are holding or trading, they affect the market, regardless.


Whales holding creates scarcity, active trading creates volatility.

Many hedge funds and wall-street investment groups and trusts are just beginning to trade cryptocurrencies.

This is largely due to the fact that Bitcoin futures were recently launched by the CME and the CBOE.

Hedge funds and investment banks begin picking up cryptocurrencies creates a new class of Whales  as they are the Ghost Whales in cryptocurrency.

Trading volumes shift tremendously and more true if an ETF gets approved for Bitcoin or other cryptos.

Multiple attempts have already been made to get ETF approved, but they have not solidified at present.

Many large institutional investors are beginning to enter the cryptocurrency markets and become Whales, many others are missing the opportunity.

 JP Morgan Chase & CO. bank opposed to cryptocurrency trading.

The CEO of JP Morgan Chase, Jamie Dimon, even threatened to fire any of his traders who attempted to trade Bitcoin.

Were Jamie Dimon and the many other notable cryptocurrency critics were right or wrong on their opportunity to become Cryptocurrency Whales by investing large amounts of money early on in the cryptocurrency craze.

If cryptocurrencies does not fad then the critics will be proven right.

If Cryptocurrency continue to grow and become an asset class, then the Whales will become even wealthier, and will control an even larger portion of the crypto sea.

- Rothschild's, Rockefeller's, Morgan's, and their Cabal of banker family-name are already secretly in the game to own all



Wei: Defined in CryptoCurrency

Wei: Defined in CryptoCurrency


Wei is the smallest amount of ethereum coin. One ethereum coin is worth 1 quintillion (1,000,000,000,000,000,000) wei.

 

DEFINITION of 'Wei'

 

Wei is the smallest denomination of ether, the cryptocurrency coin used on the Ethereum network.
1 Ether =  1,000,000,000,000,000,000 Wei (1018)

 

BREAKING DOWN 'Wei'

 

As the prices of various cryptocurrencies, including ether, have skyrocketed during the last year, transaction sizes have become smaller.

To correctly denote the quantity of transactions which may appear a very small fraction in terms of ether but a high value when converted to U.S. dollars or other real world currency, new units have been created to correctly identify and support the transactions.


Wei is named after Wei Dai, a cryptography activist who is known for supporting widespread use of strong cryptography and privacy-oriented technologies.

 

Weak Hands: Defined in CryptoCurrency


Weak Hands: Defined

 

Weak Hands: is defined as an investor who doesn’t have the confidence to continue owning his investment during troubled times.

A wise investor creates a plan for his investment before buying.

He strategically decides when to buy and when to sell.

Weak Hands: describes someone who gets nervous and sells the investment before their plan can be completed.

Weak Hands: are often identified as people who sell as soon as the value of an investment drops in price.



Weak Hands,


What are 'Weak Hands:':

In the financial trading market places, investors, and traders have "Weak Hands" when:
  1. They lack the conviction to stick with an investing or trading plan. 
  2. They lack the resources to carry them out.

This may manifest into a futures trader that never intends to take or provide delivery of the underlying commodity or index. 

However, Weak Hands similar to refers to an investor or trader who can quickly exits a trade on almost any detrimental news or a break from an obvious technical pattern on the charts.

Research Similar Terms:

  1. Weak Shorts
  2. Technically Weak Market
  3. Desk Trader
  4. Selling Into Strength

BREAKING DOWN 'Weak Hands':


A Futures Trader with Weak Hands is a speculator, and profiled as a small speculator that enters and exits positions with the intention of reversing those positions before expiration.

Typically, a trader without financial resources associated with delivery and storage of the underlying commodity targeted market.

Weak Hands investors and traders exhibit predictable behavior.

This includes buying immediately after the market breaks out to the upside from a technical pattern on the charts or selling immediately after the market breaks to the downside.

Dealers and institutional traders exploit this behavior by buying when Weak Hands traders sell and selling when Weak Hands traders buy.

This forces the Weak Hands out before the market starts to move in the originally desired direction.

Common problem for investors and traders is buying or selling at the very worst time.

Example:
 

When bear market nears its end may signature losses for those who hodl, (Hold On For Dear Life), as the market falls.  This maximum fear becomes the driving-force in people's minds and weakens them.


Sentiment is an extreme for bearishness and Weak Hands is fear.

Strong Hands see the opportunity.

Strong Hands can buy when prices dips, because they have resources for the draw-down.

Bear markets are relatively infrequent as an example of Weak Hands when stocks with solid fundamentals and chart patterns falls with stocks of a related company issuing bad news on earnings or some other business event.  

Weak Hands quickly sell, but the stock rebounds sharply.



There was nothing wrong with these stocks and the price dip resolves into a buying opportunity.


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