TokenReporter: What's the point of crypto?

The Update

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Quick thought

We keep seeing the same people down on crypto. Whether it’s the perennially negative Jamie Dimon of JP Morgan, or most recently, Paul Krugman, both see the existence of them as counterproductive and something to be squashed. Dimon calls it a scam. Krugman says, “cryptocurrency enthusiasts are effectively celebrating the use of cutting-edge technology to set the monetary system back 300 years.”

Dimon’s position relies on the notion that only governments should control monetary systems. Krugman believes that fiat currency retains value ultimately because the proverbial ‘men-with-guns’ government accepts it for tax liabilities that they’re able to enforce. Krugman is at least open to people telling him what problems cryptocurrencies solve that fiat does not solve.

Isn’t the point of cryptocurrency to allow people to make one-to-one transactions without a trusted third party in the middle? Isn’t one of the goals to eliminate the need for trust, replacing it with proof? And, isn’t one of the principles to help level the playing field for the unbanked?

Let us know how you’d answer Krugman: what is the point of cryptocurrency, and what problems does it solve that fiat does not?

Two token sales to watch 👁️

Kirik is a project to make writing smart contracts that work across multiple blockchains easy for the non-programmer. The goal is to create semantic smart contracts, so that you can write human-readable contracts and have them executed in code faithful to your intentions. This isn’t the first human-readable-semantic project we’ve ever seen -- the history of computing is littered with them, some successful (HTML / SGML), and some less so (AppleScript) -- but the greater point, that for smart contracts to gain adoption, they have to become easier to create without surprises in execution, stands. Kirik has partnered with SingularityNET to work on including AI. The thought is that AI analyses of smart contracts is a step in meta-learning. Currently, they’re using Kirik for smart contracts in telco (Mobile Telesystems), the Moscow Parking System, and mobile money in Nigeria. The whitepaper is worth the read.

EHAB is an idea to use blockchain to change the way housing developments are made and funded. Instead of the traditional method of a developer getting funding from a bank and permits from a city with no community input, the idea is to get funding via multiple investors, tracked on blockchain, collective ownership by the people living in the housing, with input from them on design and public spaces. In play are tokenized ownership, smart contracts, and engagement with the future residents. It’s an interesting change to the way things have traditionally been done. There’s no whitepaper, but there is an investing page with some basic answers, and contact info for more.

The Good, the Bad, and the Ugly 😊😠👹

😊GOOD: 

Another Swiss Bank To Accept Cryptocurrency

The Maerki Baumann private bank has just become the second Swiss bank to accept cryptocurrency assets from payments received for services rendered and those earned from crypto mining. However, the bank informs it is not ready to provide direct cryptocurrency investments.

UK FCA Creates a Global Fintech Regulatory Sandbox

On August 7, the UK Financial Conduct Authority announced the creation of a global initiative that consists of 11 financial regulators and organizations. The so-called Global Financial Innovation Network aims to “provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.”

😠BAD: 

US SEC Delays Decision for Bitcoin Exchange Traded Fund Until September

The U.S. Securities and Exchange Commission has just announced it will postpone making a decision whether to allow the listing of the Cboe VanEck/SolidX exchange-traded fund (ETF) backed by Bitcoin to September 30.

ETFs may be seen as a move towards the mass adoption of the digital coin as a regulated and passive investment opportunity. It appears the SEC has chosen to buy itself more time before making a decision. Conversely, this may be a good sign. The SEC will have time to gather all the information needed to make an informed decision.

However, this news comes just weeks after the SEC rejected the Winklevoss’ latest attempt to list a Bitcoin ETF. The Commission voiced concerns over fraud and market manipulation of the digital currency. Since that time, the price of BTC has retreated and now stands at $6,550.

👹UGLY: 

JPMorgan CEO Jamie Dimon Bashes Crypto, Again

Some things never change. Once again Jamie Dimon voiced his negative opinion about cryptocurrency. This time, at the Aspen Institute’s 25th Annual Summer Celebration Gala, Dimon commented on the the U.S. economy, making sure to call Bitcoin a “scam” and claiming he has “no interest” in investing in the world’s largest cryptocurrency.

As Bloomberg reports, “He suggested governments may move to shut down the currencies, because of an inability to control them.”

News 🆕

Coinbase’s David Marcus Steps Down

David Marcus, who in December 2017 joined Coinbase’s board of directors, just announced on Friday, August 10, he will be stepping down from his position. His decision to resign “was made to avoid the appearance of a conflict of interest” as Marcus heads Facebook’s experimental blockchain research. His departure comes less than a month after Facebook exempted Coinbase from its blanket ban on cryptocurrency-related ads, which now can be found on both Facebook and Instagram.

Coinbase Lists Ethereum Classic

Ethereum Classic (ETC) became the fifth digital currency added to Coinbase after trading began this week on the Coinbase Pro, an exchange for individual traders. In an official blog post, Coinbase informs that ETC will be added to Coinbase.com  “when sufficient liquidity is established.” Unfortunately, many media outlets inform that Ethereum Classic went down by 30 percent since its listing on Coinbase.

 Disclosure

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