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“This book teaches how to make money with bitcoin and blockchain,” says Sir John Hargrave, author of Blockchain for Everyone

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John-Hargrave-Blockchain

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We had the pleasure of sitting with Sir John Hargrave to chat about his latest book, Blockchain for Everyone.

If you grab a copy of this book from Blockchainforeveryone.com, you can get $25 worth of DAI to your wallet. That means you are getting the book for free until DAI reserves last.
Blockchain-For-Everyone-CovePlease note that we do not have any referral or sponsor relationship. We just want our audience to take advantage of the offer before the DAI reserves run out.

Sir John Hargrave is a spiritually inclined, passionate blockchain influencer.

Although he bought his first bitcoin at $125, he did not sell it when the market hit its all-time high of $20,000. “I believe that over the long term, this is the most exciting digital asset class. I also picked up some additional altcoins, and part of my book is to teach people on how to think about these as part of investments,” he said.

There is a lot of room to make money in the blockchain and crypto space

Blockchain-MoneyWe are still in the nascent stages of the blockchain technology. Sir John’s team was reminded of how early we are in the space when they were collaborating with the DAI Group to make the free giveaway possible.

Even with the expertise and knowledge that Sir John possessed, it was not an easy system to set up. And that is one of the problems we have in the space.

However, these problems actually represent a massive potential for people and companies to make money. Everyone who builds solutions to solve these issues will make a fortune.

It is not about throwing money at things and hoping it will stick. There is a method to being invested in this space, “There is also another idea called Steady drip investing. In other words, set aside a small amount each month, the same amount you put into your overall portfolio, like 60% stocks, 35% bonds, and 5% blockchain investments,” he said.

For those who do not want to spend an exorbitant amount of time researching, Sir John’s book, Blockchain for Everyone, offers an easy start, “You are going to learn how to make money with bitcoin and blockchain, in a really entertaining way,” Sir John said in response to our question about ‘describing his book in one sentence.’

Every portfolio must have blockchain-based assets   

Sir John shares similar sentiment to that of Yale University professors, Yukun Liu and Aleh Tsyvinski, who said that every portfolio should have 6% cryptocurrencies.

However, Sir John takes this idea of cryptocurrency diversification a step further.

Sir John says, “You can buy bitcoin, you can buy altcoins, and you can also invest in traditional stocks of companies that are investing in the blockchain space, like IBM, Accenture, and Bank of America. Anybody who is applying for patents in the blockchain space.”

One world currency is a true possibility

one world currencySir John says blockchain presents an opportunity for the Nations across the world to come together and build a world currency.

“One world money for one human species of one world, that’s an amazing opportunity of a lifetime,” he said.

Having such a global currency model opens the market for new opportunities and cross border trade. It will also bring about a normalization of living conditions in most underdeveloped countries as they start competing on the global platform.

Sir John shares his enthusiasm about this possibility, “Global currency for the global economy. That is going to open up trade, and it’s going to provide access for the unbanked. It’s going to unlock this new era of prosperity and wealth.”

Facebook is bigger than the governments, and that is scary

Facebook LibraFacebook in sheer numbers is bigger than any country size. This means that if Facebook were a nation, it would have been the biggest of all.

Another thing that is going on in favor of Facebook is that people are more tuned into Facebook than they are about the current affairs of their own nation. This means Facebook can sway public sentiment on any topic to its own whim. They even paid a 5 Billion dollar fine, admitting that they did.

Talking about Facebook’s Libra, Sir John thinks that “If anyone can do this, then Facebook can, because they have such an enormous global reach.”

Talking about the power that Facebook wields on public, Sir John commented, “I see things differently from everyone else. Everyone sees Facebook as under the control of the Government, and I see Facebook as above the control of any government. I understand that Facebook is a US Company, and they have to abide by the laws. But the power that Facebook wields, in reality, is much greater than the power of the US government.”

Thinking to invest in Altcoins?  

invest cryptocurrencyYou do not have to buy bitcoin or cryptocurrencies to invest in the blockchain space. As Sir John said – you can start with owning shares of the companies that are investing heavily into this space. That is one way to start early and grow with the space.

Instead of trying to learn all the lessons by yourself, you can learn from the industry experts like Sir John.

Sir John’s team also offers a free scorecard that helps you analyze the altcoin projects on your own.

“We have what is called Blockchain Investor Scorecard, and it’s a free scorecard for reviewing and rating different altcoins with 25 different criteria you can use, and we will walk you through it. Here’s how to look at an altcoin and decide whether it is a good investment or not.”

CryptoTapas wishes Sir John and his team great luck with the book and all the endeavors they have undertaken to propel the blockchain and cryptocurrency space. We need more people like him to bring about the adoption sooner.

John-Hargrave-Interview

CryptoTapas: Congratulations on publishing your book: Blockchain for Everyone.  Let’s begin by you telling us a bit about yourself and how you got started in the blockchain space?

Sir John Hargrave:
I bought bitcoin in 2013 when it was $125. It was hard to buy bitcoin back then, as such, I had to make a wire transfer to Belarus, and I did not know where Belarus was.   I had to go to my bank and make an international money transfer. The irony was, when I made this transfer to buy bitcoin, it costed me $13 and it was going to take 3 days to make the transfer.  To say it was slow and expensive to send money overseas is an understatement. However, the irony was that Bitcoin was going to disrupt that very thing. 

That change is slowly coming to pass and remains to be one of the biggest use cases of digital assets. 

Fast forward, 4 years later, my bitcoin was worth $20,000 which I bought for $125.  That was almost 16000% increase in value.  

Media ShowerI had this marketing company called Media Shower and I said, we are going all in on blockchain.  We are going to turn into a blockchain marketing company because this technology is the future.

2017 was a mania, everything was making money and then with the 2018 Crypto winter,  things slowed down.  

The book I wrote, Blockchain for Everyone, is a story of me buying bitcoin and betting my company on blockchain and this crazy rollercoaster ride we had since then and how we have to transform ourselves through that amazing journey.

It is exciting times.  We are building a new internet of money.  That’s how I define blockchain, the internet of money, one money for one world.  Global currency for global economy. That is going to open up trade and it’s going to provide access for the unbanked. it’s going to unlock this new era of prosperity and wealth. 

We have to think of ourselves as an American second and humans first.

One world money for one human species of one world, that’s an amazing opportunity of a lifetime.

CryptoTapas: This is a bit of a personal question. Did you sell any of your bitcoins at $20,000?

Sir John Hargrave:
No, I have not sold my bitcoin. I believe in its long term potential. I did give some away. However, I believe over the long term, this is the most exciting digital asset class. I also picked up some additional alt coins. And part of my book is, how to think about these coins as part of investments.    

Talking about Blockchain as an investment is an oxymoron. First, you are dealing with Bitcoin that has been associated with the dark web and give Bitcoin some legitimacy; and second, making people think about this as an investment opportunity. 

The way I describe it to people is it should be a small part of your overall investment portfolio.  If you have a big portfolio, 2.5% or 5% or maybe even 10% of your portfolio can be in bitcoin and some altcoins.  If you had put a small portion of your portfolio into bitcoin over the last 4 years, that portion of your portfolio would have increased 4x.  

This  kind of opportunity is open to all of us now and we have to educate the investors.

CryptoTapas: In your opinion, will we ever see gains similar to or surpassing 2017?

Sir John Hargrave:
I try not to make predictions about the future.  I will say that I do believe in the long term value of the blockchain space and there are many ways to get involved.

You can buy bitcoin, you can buy altcoin, and you can also invest in traditional stocks of companies that are investing the blockchain space, like IBM, Accenture, Bank of America and companies that are  applying for patents in the blockchain space.  

There is also another idea called steady drip investing.  In other words, set aside a small amount each month, the same amount you put into your overall portfolio, like 60% stocks, 35% bonds and 5% blockchain investments.  

If you do that every month, then you can take your emotions out of the market movements and avoid riding that rollercoaster. You just calmly and patiently keep investing, eventually this will grow, in my view.

CryptoTapas: What are the things that really excite you about the blockchain space?

Sir John Hargrave:
This idea of one world money to me is what is most interesting.  Whether it is bitcoin or some other altcoin like Facebook’s Libra, whatever it is, there is going to be global money.  All the nations have to work together. They cannot outlaw it. It is like outlawing the internet.

You also don’t want to make it illegal because then that money goes elsewhere.  What I think our government must do, all of our governments, is to collaborate, almost like the United Nations, they have to come together so that all of them have a seat at the table and help influence the direction of this global money.

CryptoTapas: Do you think Facebook’s Libra currency will ever get off the ground?

Sir John Hargrave:
If anyone can do this, then Facebook can, because they have such an enormous global reach.   I see things differently from everyone else. Everyone sees Facebook as under the control of the Government and I see Facebook as above the control of any one government.  I understand that Facebook is a US Company and they have to abide by the laws. But the power that Facebook wields, in reality, is much greater than the power of the US government.  

Facebook is more imbedded in our heads and in the heads of people all around the world than the government.  

CryptoTapas: Facebook in numbers is close to a 2.4 billion user base company.  That is bigger than India, and part of China, combined. And it scares the governments to think that Facebook can wield more power than any single government on the face of the earth if they were to successfully launch their own currency.

Sir John Hargrave:
Facebook covers 20% of total world’s population and they are right to be scared about it.   Because that could threaten the sovereignty of the US dollar or any other National currency.  The power of the United States, in our case, comes largely from the power of the US dollar.

Problem is, the genie is already out of the box. If it’s not Facebook, it will be someone else and you cannot fight these anymore than you can fight the internet. This type of globalization is a force that wants to happen.  World wants a single kind of money and what we can do is work together to lead the conversation. 

CryptoTapas: Do you believe Blockchain is for everyone?  The reason I ask is that there is still some taboo attached to the conversation of blockchain and bitcoin.

Sir John Hargrave:
Is money for everyone?  

Yuval Noah Harrari who wrote the book “Sapiens”, I quote him in Blockchain for Everyone, and he says “Money is the most successful human invention ever devised.” Because, we do not all agree on the same religion or political structure but we all agree on money.  In essence, it is the greatest method of human cooperation that we have ever invented.

And he is right.  We all believe in money in one way or another. So when I say Blockchain is the internet of money, I mean, internet of value.  That includes money, rewards, loyalty points, etc, anything of value. 

However, blockchain as a technology is very confusing for most people. And the very first idea of writing my book is I wanted to make it accessible by reading the book from cover to cover and learn something that they can then use in the real world.

That’s why, after several rewrites of the entire book, I ended up writing the book as a story, like a move, with act 1, 2 and 3.  So, you basically learn about blockchain through the story of our personal journey in to the space.

By making it accessible by everyone, our goal is to make everyone interested in the technology so that everyone begins using this new type of digital money. 

Our plan is very large and very long term.  What we are doing right now, what CryptoTapas is doing right now, is going to last for the next 100 years, which is capture these stories so that future historians understand how we all did this, how we built this new internet of money.

CryptoTapas: In your view, what is the one thing that is stopping people from getting into Bitcoin and altcoins?

Sir John Halgrave:
Education is the major issue.  I am very passionate about educating the space about the real value that blockchain, bitcoin and all of these altcoins, as well.

The other piece of it is just user friendliness of the technology.  It is still hard to get into crypto. 

For instance, we are giving this give away with the book, where you go to Blockchainforeveryone.com and purchase the book for $25, we are giving $25 in DAI cryptocurrency with every purchase of the book.   That is, book costs about $25 and you are getting $25 in DAI.  

To do this DAI give away, it has been really difficult.  

The logistics surrounding giving away this free DAI is still slow.  It is not DAI issue, it is just the complexity that surrounds the infrastructure around installing wallet, transfer to wallet, etc.  

This has reminded me again that we are still at the very early stage of this technology.  Coinbase is trying to spearhead this space and we will get there.

CryptoTapas: For those who are on the fence to buy the book, what is one thing you would say, other than the fact that they are getting this for free if they buy it from your website and get $25 in DAI back. 

Sir John Halgrave:
It’s simple. You are going to learn how to make money with bitcoin and blockchain, in a really entertaining way.

That’s the best way I can describe it in one sentence.

CryptoTapas: Do you also talk about altcoins in your book?

Sir John Halgrave:
We do. We have what is called as Blockchain Investor Scorecard and its a free scorecard for reviewing and rating different altcoins with 25 different criteria you can use and we walk you through here’s how to look at an altcoin and decide whether it is a good investment or not.

CryptoTapas: Thank you John for taking time to speak to us on a Friday evening. We appreciate it.

Thank you for reading the article.
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Subscribe-staying-relevantIMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

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CryptoSpace

Chasing the Micro Cap Crypto Gems #4 – Skrumble Protocol – Why We Changed Our View On This?

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Micro Cap crypto Gems

The tricky thing about finding micro-cap gems is that we have to find something that fits our crypto framework criteria and still be under $10 Million in the market cap.   

The project that we picked today had a few flags while we were researching and we promptly reached out to the team to clarify.   

You will see our initial views/opinions based on publicly available information and the response from the company.

What is Skrumble Network?

What is Skrumble NetworkThe core concept behind Skrumble Network is that when data is stored in one centralized location (like a Server) it poses the greatest security when it gets hacked.

However, if your data is fragmented and stored on decentralized servers, even that particular decentralized server gets hacked, your data is still secured because the fragmented piece that got hacked is usually incomprehensible.

Skrumble Network helps decentralize the communication protocol by using Blockchain technology.

Skrumble Network helps facilitate File transfers, secure messaging, Video streaming and calling.

how Skrumble network works

Whitepaper describes: “Skrumble Network is a secure, communication-centric blockchain, decentralized communication application and a communication layer for developers to add into any application. With no middle entity or centralized server host in between to censor, block or manipulate any data, Skrumble Network will enable open, global private communication and transactions that are truly community owned and operated.”

One of the distinguishing factors about this project was that it was initially developed with an established company behind this crypto that has been in the business for more than half-a-decade and they know how to deliver a product that is used in the real business world.

Applying our framework

As is our custom, let’s apply the CryptoTapas framework around this project.

Problem

The security around our communications is as old of an issue as the internet itself.

This concern has become more pronounced in the recent years with the news of hacks and breach of confidentiality, and utter disregard for privacy.

Now that COVID has completely changed the way we work (especially working from home), the security around communications is now taking the spotlight again.

If Skrumble Network addresses this issue in a novel, scalable and easy to implement way – it might have a great chance at this massive problem.

Team

Eric Lifson seems to be working on Skrumble Network for over 3 years now, and he was quite accommodative when we reached out to him with questions. 

When we looked at the team page on the Skrumble’s website, with the exception of three members, everyone who is listed on their team’s page is no longer with the company (some since July 2019) and this disappoints us that they have not updated their own team’s profile.

Skrumble Network team

More importantly, if everyone jumped the ship, who is behind the project now?

The flagship app on Skrumble Protocol, GetAlly, shows the team members that are also associated with Skrumble Protocol, however, most of these team members are no longer with Skrumble.

Question for Skrumble Team: Who is working on this project? What is the current team structure?  

[Update: The project informed us that all these people have at one point worked on the project. While the team has downsized to a team of about 6 core people, SKM has a strong brand and past and present members prefer to maintain recognition of their achievements. Moreover, several are still contributing, just not on a full-time basis. Any who do not, the team offers to remove them at any time. This is now more in line with how ongoing DAOs (Decentralized Autonomous Organizations) seem to be operating.]

Partnerships

Skrumble Network’s Ally dApp claims to have a 150K user base.  They also teased about the upcoming partnership to take the DeFi initiative forward.

We actually like the advisor profile associated with the Skrumble Network project one of whom is Anthony Di Iorio, co-founder of Ethereum.

Apart from Anthony, Skrumble has Jeff Pulver who is the co-founder of $3 Billion communication company, Vonage.

That is quite a respectable name association with Skrumble.

Question for Skrumble team: Have there been any changes in the Advisor group (similar to team changes?).

[Update: No. We also still Jin Tu – former CTO of Aion, OAN boardmember and Cofounder of Axis DeFi, who is an Expert Blockchain Architect. 

Redouane Elkamhi,
PhD, Associate Professor at Rotman
Leader in Fintech & Blockchain at the University of Toronto 

Kevin Hsu,
Founder Partner at BlockVC
Investor in Ontology, RSK & QTUM 

Jiangang Wu, PhD
Co-Founder of Fusion
Professor of Finance & Blockchain Economics at Shanghai University] 

Addressable market size

Secured communications, whether it is simple file sharing service or video streaming or chatting is a huge market.

It has only exploded in value in the past few months when people were forced to communicate over the internet instead of in-person meetings.

This trend will only become the norm as the internet becomes more accessible (Elon’s Starlink reality) and companies start restricting travel.

File transfers, messaging, video streaming and calling verticals market size is in $100s of Billions, if not trillions.

Revenue model

Question for Skrumble team: How does Skrumble Network generate revenue?

[Update: The core problem for SKM has actually been the volatility of the utility token model in general. We will address this in more detail later.]

DeFi + Communication?

Skrumble Network’s official blog was silent since October of 2019, although remained very active on Telegram, and resurfaced with an announcement that Skrumble Network is going DeFi. 

The announcement about a partnership with Juggernaut reads “unique custom financial modelling and DeFi deployment, it can enable token projects to have real, sustainable, and modular business models built around their utility model.”

Is this another attempt to exploit the market craze around DeFi?

We asked the team this question directly.

Skrumble Network Roadmap

Question for Skrumble Network Team: What drove this decision to look at DeFi and what unique attributes do you think will help Skrumble succeed in this space? 

How does this Juggernaut help Skrumble’s vision?

[Update: Really, we see two sustainable business models so far in the space – 

  1.     platform tokens (for exchanges) with only room for a few like Huobi or Binance
  2.     DeFi due to the collective staking, lockup and general collateralization of new directions and ability to focus on new industries.

A two-token solution is the only way to do something meaningful and sustainable in my opinion with a utility token. One for utility and one for profit sharing. They are missing the sustainable business model. They don’t have enough usage to reach a critical mass and the DeFi synthetic at least has a chance to have something closer a traditional ‘share’ balanced approach. 

Most proof of stake with inflation models will reach a point where one has to ask where any utility token can be able to sustain beyond initial interest 

This is why we must change the game. 

Basing anything on a pure utility token that fluctuates is basically unsustainable. This is because when people are in the money they just leave to the next hot project. People who operate in DAOs want something more stable to base their livelihoods on. They want something closer to USD that can be more stable and scalable. 

This is an overview of how we see DeFi becoming a crucial component going forward:https://medium.com/juggernaut-defi/skm-partners-with-jgn-to-develop-first-defi-communication-network-20ba9a3ccf38 

What do we like about Skrumble?

We like the fact that Skrumble Technologies has been a technology company since 2014 and it has leveraged some technology and strategic guidance from them in their initial inception.  It has real business with actual clients in the market.  How many of the 6500 cryptos can claim that? 

Additionally, the company has patents to its name and helps them deploy proprietary solutions in the market. 

In addition, we like that the co-founder is quite active in working on building Skrumble Network up. 

You can go to the Telegram and see him responding to the questions posed by the community. 

When we reached out to Eric, he provided a quick ‘highlight’ of Skrumble for someone who is new to the project, we have reproduced what Eric shared with us below (we have not independently verified this information): 

Skrumble Network is reshaping freedom of speech and data privacy with a communication-centric blockchain due to our unique PoA architecture, formidable global community, robust proprietary chain, accomplished advisors, and top-tier exchanges. 

🤝PoA consensus model: Aligning incentives and encouraging active community participation

💪Innovative chain and base layer: Enabling other dApps to be built on top of Skrumble Network. First dApp- Ally already has 150k+ users with more coming soon

🙋🏻‍♂️Industry-leading advisors: Including Anthony Di Iorio (Co-Founder of Ethereum) and Jeff Pulver (Co-Founder of $3B Vonage), Jin Tu (CTO of Aion), Redouane Elkamhi, PhD (Lead of Fintech & Blockchain at the University of Toronto), Kevin Hsu (Partner, BlockVC)

🥇Trusted and premier exchanges. Won Huobi FastTrack vote last week with over 40 million votes. Counting Gate.io, Huobi Global, Bittrex, LBank, Coinbene etc as our exchange partners

🎖Ranked by ICO Drops for both top 5 global community and ROI in Q22018

🗳Won Huobi FastTrack with 40M+ votes on June 27 19

👑Massive dApp ecosystem coming soon with innovative token economic details

🦁DeFi component / partnership incoming 

Things to consider

Apart from the general risk that is inherent with the crypto space, consider the following when you DYOR on Skrumble Network. 

Competition

Few blockchain/crypto companies have tried to take a stab at the ‘secured communication’ aspect using blockchain. 

We have not yet heard the great success story in this space. 

This is good news and not so at the same time. 

It is good news because Skrumble Network could be THE project that penetrates the ‘success resistance’ in space. 

It is not so good news because the same reasons that lead to the failure of previous projects could plague Skrumble Network. 

Team changes

Exodus of team members from the Skrumble Network is a point of concern for us.  We are going to update this section with the response from the Skrumble Network team (without removing this concern from here). [Update: It seems that several are still involved in a part time basis, and they claim to have streamlined their operation. They are also actively working with the Juggernaut (JGN) team to implement the DeFi rewards system. For more details on JGN please see here: https://jgndefi.com/ 

Token supply

While the market cap is what matters the most in terms of the potential multiples, crypto space seems to be very touchy about the token supply. 

Token supply on Skrumble Network (SKM) is 1.5 Billion and might be looked at as quite high.

All tokens have been released to the market. In this space, the actual token supply amounts are becoming far less important. This was a pretty standard number in 2018 and was advised to the team. 

Team is expected to release more token utility and use cases as per the information alluded to by Eric and depending on the future use cases the market might respond positively. 

Moving to a more stable way of incentivizing operators may innovate the DeFI space beyond pure finance and into other industries as we rediscover how we share and perceive value. 

This is an overview of how we see DeFi becoming a crucial component going forward: https://medium.com/juggernaut-defi/skm-partners-with-jgn-to-develop-first-defi-communication-network-20ba9a3ccf38   

Conclusion

Our first impression is that Skrumble Network looks like a project with a lot of potential.  However, potential means nothing until it is ‘realized’. 

Will Skrumble Network realize its potential?  We do not know and that is the dilemma we have to ‘risk’ when dealing with micro-cap gems.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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CryptoSpace

5 questions we want XRP army to answer!

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xrp investing news

What follows is our opinion.  

Let’s not be hostile.  

Top 5 Cryptocurrencies 2020

We are simply posing some questions based on the information we came across and our own limited interpretation. 

It is quite possible that the sources we are referring to are at fault or our interpretation is. Either way, just answer these questions for us so that we can learn new things about XRP that we did not know.

Our readers know that we have been anti-XRP for a long time. We got trolled, mocked and called ignorant. Well, to each their own.

Our questions to the entire XRP army are simple, here they are:

Question 1: If crypto was to replace (or at least reshape) the entire banking business then what does a token whose sole business model is based on ‘accommodating’ banks have any future?

To put differently, when the world starts conducting commerce via text messages why do we need banks and Ripple which wants to serve banks?

Our basis for this question: 

In the future when we will start doing business with each other over text messages, wallets and email signatures, why do we need a payment gateway from Ripple?

We know that WeChat payment enables users to transact over chat.  Other companies are trying to catch up with this (primarily why Facebook was looking at creating its own currency, Libra).

However, once we have a digital dollar, we do not even need an outside stablecoin since one could, in theory, use the digital dollar directly.                  

Question 2: Why do you have to pay businesses to use XRP if it is so superior?

Our basis for this question: 

Financial Times reported that Ripple paid Moneygram to use Ripple technology.

Here is a direct quote:

It turns out Ripple has been paying a significant amount of subsidies cash to MoneyGram’s business since buying into the company in June. In the third and fourth quarter alone the Ripple benefits amounted to $11.3m.

What’s more, until a consultation with the SEC**, MoneyGram had been more than happy to book these cash flows as revenues. Due to the SEC guidance, however, it has now had to restate fourth-quarter guidance to account for Ripple payments as “contra expenses”.

XRP Twitter

Question 3: What is Ripple’s revenue worth without the ‘selling’ XRP?

Our basis for this question: 

The question seems to be answered by the XRP’s CEO himself. Here is an excerpt:

Asked if XRP was keeping everything cash flow positive at Ripple Labs, Mr Garlinghouse answered: “Well XRP is one source. I don’t know how to answer that because if you took away our software revenues, that would make us less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing.” 

He clarified later: “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.”

In our opinion, we think that the only reason Ripple (XRP) is even operational is because of the billions upon billions of XRP tokens that they keep dumping on the unassuming investors.  

Is this a wrong assumption?

Question 4: If Ripple does not need XRP, why is XRP needed?

Our basis for this question: 

This is based on our understanding that Ripple’s technology can be used by the businesses without having to use XRP.  It is recommended but not ‘required’.

Is this accurate?

Ripple’s solutions can work without XRP (its native token).  So, if XRP is not a utility token in strict sense, how are its creators able to mint and sell them at will without tripping any security laws?

Question 5: If Ripple [XRP] is to act as the ‘stable’ value while the transactions take place on Ripple network, why should anyone trust XRP which is backed by nothing instead of stablecoins like USDC that are backed by real world assets?

Our basis for this question: 

We would personally trust USDC more or even Facebook’s Libra rather than XRP which is backed by nada.

This is what Demelza’s opinion was during our interview:

“The main point is that if XRP were able to back their currency with financial assets and stabilize the purchasing power of the currency, then that would mean XRP coins should have no price appreciation. In fact, only the equity shares of Ripple Labs would profit from XRP’s adoption as a global reserve currency. But Ripple Labs is a privately held company. After fully understanding what XRP is, one realizes that XRP’s investment pitch does not make sense at all.”

Conclusion

We are trying to convince ourselves as to why we need Ripple in the crypto space if:

  • Future of payments is going to be ‘self-bank’ & over the chat
  • There are better stablecoins in the market 
  • Ripple itself as a technology doesn’t need its own native token, XRP

For this very reason, our opinion is that the money will flow out of XRP and the creators will keep dumping their bags into the market until the market can no longer absorb it and then it will be ‘lights out’.

We await for the XRP army to provide us insights that we did not know and our opinion changes…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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DeFi is Not the Holy Grail of Crypto, Here is Why

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Defi Yfi

DeFi has been making millionaires overnight and turning millionaires broke at the same speed.

Those who are on the bandwagon are rejoicing and those who either missed out or got burned by one of the fake projects are yelling ‘Scam’ at DeFi.

Top 5 Cryptocurrencies 2020

Our views are a bit different on the subject.

We do think DeFi is going to be a successful vertical among the blockchain (and crypto) solutions.

It will not be THE holy grail for the redemption of crypto status though.

Supply Chain, Crypto Lending, Insurance, Financial Services, Accounting, Identity, and many more verticals will collectively take blockchain and crypto to the masses.

Shifting our focus back on DeFi, here are some of our thoughts on the current state of DeFi. We do appreciate you dropping any insights you have that we might have missed.

DeFi is not a ponzi, here is why

If the DeFi project you are eyeing meets the following conditions, it is not a ponzi:

  • Audited code: Is the code on which DeFi runs is audited by reputable blockchain auditors? 
  • Reliable team: Who is behind the project? Do they have the know-how? Do they have a history of running scams or leading successful projects? 
  • Actual (sustainable) revenue model: What is the revenue model?  Is it too ‘scammy’ sounding or is it based on sound mathematical (and algorithmic) models?
  • No lock-in periods: Is it easy to get in and out of the platform without any restrictions or lock-in periods?

If you answered yes to ALL of these questions then there is a 100% certainty that the DeFi you are dealing with is not a ponzi (or scam).

However, a caveat is due here.  

Just because the project is not a ponzi doesn’t guarantee its success. Lot of well intentioned companies fail, that’s just the nature of business.

So, do not be one of those guys who sells their home to invest in crypto or DeFi (and that itself is not advice, just an opinion).

If you don’t want to hear it from us, listen to what Yearn Finance creator has to say about DeFi tokens (not all, obviously) having ZERO value.

Source: Crypto Culture

DeFi on Ethereum is not sustainable, here is why

Ethereum DefiMost, if not all, DeFi projects that are making the news today are on Ethereum. 

Ethereum is not a reliable blockchain when it is overloaded.  It gets choked and crashes.  

People are already complaining about exorbitant fees on the network due to the DeFi craze.  

DeFi itself as a crypto vertical is quite new and we are sure there are going to be a lot of ‘killer apps’ that will show up on the scene.

We are currently looking at the DeFi solutions that are being built on other blockchain networks (subscribe for free to know when we post that article).

PolkaDOT is not the end all be all, here is why

Polkadot Defi EcosystemMany are turning to the DOT as the next big thing after Ethereum.

It may very well be.

However, it has not had the chance to prove itself, not yet.

Ethereum’s resilience (or lack thereof) was revealed only during the ICO craze (and then later during CryptoKitties debacle).

What monsters lie in the DOT’s belly?  We don’t know and we would be weary of anyone who claims to know with certainty.

Other things to consider

Entire DeFi space is pretty new and we do not know what we do not know about potential vulnerabilities.

While this is true of Bitcoin itself, Bitcoin has withstood assault for over a decade and still stands stronger.  

Same cannot be said about DeFi.  

Can you imagine someone investing their life-savings into DeFi only to have funds taken because of a bug in the code?

Needless to say, many folks are exploiting the looping system in the DeFi where they take loan against their deposit then lend it back to the platform to take another loan against their deposit, and ad infinitum.

This is causing the DeFi systems to show more liquidity than what truly is.

Conclusion

We think DeFi is an exciting development, however, we still put it alongside ICO craziness for now.

When this space matures and we see reliable solutions emerge – DeFi has the potential to drive a trillion dollar vertical on its own.  

That is just the potential, all the trials and tribulations that we have to go through to get there is going to be one hell of a ride.  

So buckle up and enjoy (and please do not lose your shirts on the ride)!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

best Crypto Tax Software

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Sure Weight Loss

 

Continue Reading

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