Bitcoin Gold: viable chain or cash grab? Airdrops emerge as flavor of the month. Ethereum Byzantium hard fork approaches. Vladimir Putin weighs in on crypto. Is Bitcoin becoming a pyramid scheme? DASH partnership focuses on legal cannabis industry. Russia and U.S. fight over who gets to prosecute Alexander Vinnik.
We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Darren, Pedro and JJ!
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|Traditional Financial Markets||Cryptocurrency Markets|
|Gold $1,292.50||Bitcoin (BTC) $4,848|
|Silver $17.20||Ethereum (ETH) $303|
|Oil $51.29||DASH $300|
|Dow Jones 22,860 points||Litecoin (LTC) $50.89|
|30Y UST Yield 2.88%||Bitcoin Cash (BCH) $313|
Coming up we’ve got the SegWit 2X fork which last I heard does not have replay protections. And just when you thought you had seen it all – Bitcoin Gold bills itself as the insurance policy for “the Forkening.”
Bitcoin Gold is going to fork away from the current SegWit 1X Blockchain and create a new Equihash blockchain with a week of private mining. They will premine about 1% of the total currency for the founders (details unclear). It also seems very odd that blocks are being created in private to be then made public. October 25th is the date, and some information indicates that they will have blocks either mined or starting to mine for a week. It seems pretty confusing.
Now if the SegWit 1x chain somehow survives there could be 4 “Bitcoin” chains.
Anytime there is a fork like this, some people believe they are going to get “free money.” This probably explains why the price of Bitcoin has gone up this week in anticipation of the fork.
The hosts of Neocash Radio are very skeptical!
Ethereum Byzantium Hard Fork as part of the Metropolis upgrade
Ethereum’s core developers are planning an upgrade known as the Byzantium hard fork, which is estimated to happen on October 16 or 17 at block number 4,370,000. Byzantium is part one of a two-part network upgrade known as Metropolis. The second part of the Metropolis upgrade is known as Constantinople, which has no current target date.
This will not result in an additional Ethereum chain, as a built in difficulty bomb will exponentially increase the difficulty to the point where mining on the old chain will not be possible.
The Byzantium phase will add features to improve performance and security. Here’s an overview of some of major features:
- Zk-Snarks, or Zero Knowledge proofs, will bring private transactions. Zero knowledge states that a prover can prove to the verifier that they possess a certain knowledge without telling them what that knowledge actually is. It is very useful in protecting privacy. It can just reveal part of the process without showing the
whole process itself and prove that you are being honest about your claims.
- Proof of Stake early implementation with mining difficulty-bomb. Instead of the current Proof of Work being used where miners attempt to solve complex mathematical calculations, Proof of stake makes the mining process virtual. A validator stakes some ether and then validates transactions earning a fee. Proof of Stake will be implemented via the use of the Casper consensus algorithm with an initial hybrid system where a majority of transactions will still be mined via Proof of Work, but every 100th will be Proof Of Stake. This will lower the cost of validating ethereum transactions, makes a 51% attack harder, accelerates block creation, and allows the blockchain to scale by introducing “sharding.” The built in difficulty-bomb delays the ice-age by 18 months and reduces block rewards to 3 ETH from the current 5.
- Abstraction. Account abstraction will allow users to have more control over their private keys along with the ability for contracts to pay mining fees instead of the sender always having to pay for gas. Account abstraction will also reduce the risk of quantum computer hacking.
- Simplified programming in Solidity. This will allow novice programmers to more easily code Ethereum smart contracts as well as encourage new programmers to learn Solidity.
On October 10, 2017, Russian President Vladimir putin gave a statement to the press about his eagerness to leverage the benefits crypto currencies can bring to the banking and financial areas.
“We should use advantages provided by new technology solutions in the banking sphere,“ he said.
“Modern technologies in the banking sphere definitely open new opportunities for organizations and citizens, make business activity and daily life more convenient. Virtual [currencies] or cryptocurrencies are becoming and have already become more popular. They have already become or are turning into a full-fledged payment instrument and an investment asset in certain countries.”
Putin however did caution, “use of cryptocurrencies also carries serious risks,” and that “crypto-currencies are issued by an unlimited number of anonymous bodies. Thus, buyers of crypto-currencies could be involved in unlawful activities,” including “tax evasion, even terrorism financing, as well as the spread of fraud schemes.”
So it appears that while Putin sees promise in blockchain technology itself, he has concerns with some current implementations with even going so far as to call Bitcoin “a pyramid.”
Alt Thirty Six is partnering with Dash to provide payment processing for the legal cannabis industry. Because of the disparity between federal and state laws, most banks have refused service to dispensaries. This has led to a situation in which much of the legal cannabis industry must be conducted in cash. Cryptocurrencies provide some logistical and security solutions for cash industries.
On October 11, 2017, a Greek Court ruled that Alexander Vinnik – accused of laundering $4 billion worth of bitcoin – can be extradited to his native Russia. This conflicted with a previous ruling, exactly one week ago, in which a three-member panel of judges supported the extradition request filed by the United States. In the aftermath of the ruling, Vinnik and his defense attorneys – who deny all charges – expressed his desire to return to Russia, where he would be brought up on lesser fraud charges. By comparison, in the United States, Vinnik would face up to 55 years behind bars.
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An Important Disclaimer
We would like to remind you that any content on the Neocash Radio podcast and/or website should not be regarded as financial or legal advice. Please be mindful of any and all regulations regarding cryptocurrency in your particular jurisdiction. Never invest/gamble more than you are willing to lose and always safeguard any digital currencies you own by keeping them in a wallet whose private keys you control.
JJ – email@example.com
Co-Founder, Producer, Managing Director
Darren – Darren@neocashradio.com
Co-Founder, Technical Writer
Pedro – firstname.lastname@example.org
Ethereum and Crypto-mining Expert
Randy – email@example.com
Former Co-host and Cool Dude
BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
DASH Address: XtLEPo6DKeu45e2czdHLEb5EzJRVDz2aLZ
NXT Address: NXT-TT49-WV65-HZJA-5EJF9
BCH Address: 173ADKUvvRcSmb9tnKiYAMQAoB6RhsgQQd