Ethereum Founder Responds to Charges of “Insane”, “Plutocratic” Governance

Vitalik Buterin, Ethereum's cofounder, is increasingly finding himself target of very public rumors about his role in the project's supposed love of secrecy. Charges of lacking transparency are equivalent to mortal sins in the cryptocurrency space. Ethereum too is particularly sensitive about accusations along these lines, especially in the ongoing light of a possible US Securities and Exchange Commission (SEC) crackdown. Mr. Buterin and his supporters are fighting back.

Ethereum's Vitalik Buterin Responds to Critics

And there it was, as Mr. Buterin, skeletal boy genius behind Ethereum, took to Twitter: "[…] it was organized without my permission or even involvement [….]" The turn of phrase, without my permission, might well haunt him in the days and months to come. It presupposes his benevolence, of course. What was it organized sans Mr. Buterin's blessing or presense?

The "it" was a recent meeting in Toronto, Canada of Ethereum players, promptly blasted by Catallaxy co-founder and Satoshi Portal CEO (Bylls) Francis Pouliot. He described the event as a "Secret meeting of Ethereum management committee," in a Tweetstorm for the ages, continuing about how "blockchain governance rules were decided by the stakeholders."

The entire Ethereum project of late has come under ecosystem scrutiny due to SEC regulators in the United States set to determine its legal fate. Judged a security, and therefore subject to regulatory jurisdiction as a public company, could conceivably rock much of the crypto world. A healthy majority of initial coin offerings (ICOs) and smart contract platforms are dependent upon ERC20 tokenization.

The not even three-year-old tech is many a developer's choice, allowing for ease of integration and largely trusted. It is unclear, as of this writing, exactly what implications are carried with an unfavorable SEC determination, but most analysts believe it to be negative at least in the short run. Indeed, most ICOs openly forbid US citizens' participation in anticipation of odious regulations and subpoenas.

Ethereum as an Insane, Plutocratic Government

"This is insane," Mr. Pouliot insisted. "They are establishing a plutocratic government. This has provably failed with Bitcoin (UASF/NO2X). Does anybody even care?" The evidence marshalled for the slam came from a lone news source, which described the event in worrying terms, according to Mr. Pouliot's reading.

And it does appear discussions about decentralization, mining, scarcity, and the infamous cases of frozen funds were had in Toronto. However, the cryptosphere seemed unconvinced about a cabal, and took Mr. Pouliot to task. Principal Lane Rettig argued "The event was not secret, in fact we livestreamed a lot of it. We also did a public AMA. There is no 'Ethereum management committee' and no rules were made. Please get your facts right. Your message is intellectually dishonest." Mr. Pouliot shot back paraphrasing attributed to Mr. Rettig, and the thread continued along those lines.

Vitalik Buterin was eventually compelled to address the issue as it gained traction among the other rumors and news surrounding Ethereum. "I was not at this meeting," Mr. Buterin tweeted in response, "it was organized without my permission or even involvement, and I honestly don't really know much about what happened there."

In what might be considered a classic Twitter tangent, Mr. Buterin was sucked, then again, into another side argument about privacy coins and the phenomenon of maximalism. Asked his opinion of Monero, he insisted, "If I was doing anything seriously privacy-demanding I'd probably go for Zcash first." This brought further rebuke from privacy coin guru Rhett Creighton, himself the subject of much derision lately, who snarkily wrote in response, "Says the paid Zcash advisor," landing him in a strange bedfellows situation with polemicist Whale Panda. News of potential regulation and very public Twitter flames might have also contributed to an immediate dip of roughly a 5% in the price of ether, but it seems to have recovered at time of publication.

ARK Sponsors the World’s Premier Blockchain Conference ARK Sponsors the World’s Premier Blockchain Conference

Blockchain technology has revolutionised the modern world. Transactions and exchanges on a global scale have never been easier, as we begin to unlock the full potential of the blockchain. The implementation of blockchain technology has completely revamped a number of industries. However, so many different blockchain systems are incompatible, interoperability has previously been impossible. ARK is an innovative blockchain startup that seeks to bridge this gap. By incorporating an all-encompassing blockchain network ARK is beginning to realise the potential of the blockchain through "smartbridge" technology.

ALL-IN-ONE BLOCKCHAIN SOLUTIONS

ARK is offering users, developers and blockchain startups a way to communicate across platforms. Using smartbridge technology users from one blockchain can trigger an event in another blockchain such as sending compatible tokens. Once the user from the initial chain executes an order, ARK will transfer the information to the other chain, which is then immediately recorded. This allows for an easy and efficient environment, without the confusion of transferring between different chains for every transaction or smart contract.

ARK is already has fully functioning models with Ethereum, Bitcoin, and Litecoin blockchains, and is rebuilding the ARK block system to allow compatibility. They also offer one-click blockchain deployment which allows other companies to start an ARK clone and build on its pre-compatible chain.

ARK IN CONSENSUS 2018

ARK has the potential for mass adoption by delivering services that consumers and developers equally need. Their aim to create an entire ecosystem of linked chains makes ARK highly flexible, scalable and adaptable. With such a platform, ARK is keen to spread the word. They are now participating in and sponsoring Consensus 2018, one of the largest blockchain conferences in the world.

ARK wants you to get involved! By sponsoring Consensus it will network with some of the the most established players in the sector. By attracting even more innovative minds and enthusiasts, ARK looks to to establish themselves as a market leader and a figure head in the blockchain community.

This year, Consensus will have its 4th annual meeting, which is to be held at Hilton Midtown, New York City, between 14th and 16th May. The event has a real buzz around it, with an expected attendance of over 5,000 people. During the three day event, more than 250 experts will weigh in on various aspects of the blockchain sector. The attendees will be a collection of industry startups, financial institutions, academic groups and tech leaders. These bright minds are welcomed to engage with ARK's all-in-one blockchain solution.

The ARK team are set to be a key figure in the conference, with a booth to accommodate visitors. The team will also provide a meeting room for one-to-one meetings and discussions. The entire event will fully showcase ARK as the team networks with the community. The first day will start with a presentation from ARK, followed by Blockport. These are then follow by a technical presentation from the team, who will fully explain the benefits of ARK.

The second and third day will be filled with insightful meetings and unique presentations. These will take place all day, thanks to the committed ARK team. Some of these discussions will offer great insight into ARK's vision and how they are set to revolutionise the blockchain world. The ARK team can be found in booth #113 and visitors are encouraged to engage in one-to-one meetings or public discussions.

ARK is proud to announce their new chapter that is set to usher in a new era for the blockchain sector. With a fast, decentralised platform the full potential of the blockchain will be unlocked. Don't miss out on ARK at Consensus 2018 and join the ARK community on their exciting expedition.

UNICEF Turns to Crypto Mining to Raise Funds for its Humanitarian Causes

Do you want to support UNICEF's goal of making the world a better place for less fortunate kids? Turns out now you can, just by visiting a website and volunteering your computer's processing power. UNICEF Australia has turned to crypto mining to fund its humanitarian causes, and it's counting on support from the public. While there have been widespread cases of people's computing power being used to mine cryptos, this initiative is different, as it's dedicated to funding UNICEF as it endeavors to provide humanitarian assistance to children and mothers.

THE HOPEPAGE

UNICEF Australia has launched The Hopepage, a website with a simple interface that calls on visitors to "Give Hope, Just By Being Here." Once one visits the site, he or she is prompted to click a 'Start Donating' button that lets them start donating their computer's processing power right away. One also gets the option to determine just how much of their processing power they will donate, with the maximum allocation being 80%. (It can be dangerous to donate too much of your processing power to mining, as it's a very energy-intensive process.)

The site also explains how the process works. Once you agree to donate your processing power, your computer automatically starts solving algorithms (mining) which earns UNICEF cryptos that it trades to raise funds for its causes. Those funds are used to buy life-saving supplies like vaccines and safe water for millions of children.

For those who would like to contribute to the cause but are wary of mining, the site has an assuring message for them:

Mining is perfectly safe for your computer. If you're ever worried about power consumption, turn down the amount of processing power you're donating.

The site uses Coinhive, a crypto mining service which has in the past been widely associated with cryptojacking, a process in which unscrupulous internet users mine cryptos using people's computers without their knowledge or consent. This is, however, a very noble undertaking for Coinhive, and will have the secondary benefit of restoring some faith in the service, which has gained notoriety for being used to target users of YouTube, Google, and even UK government sites.

A GROWING TREND

While UNICEF Australia is pioneering the use of people's processing power for humanitarian causes, other companies have also turned to using the processing power of their users to mine cryptos, some legally and many more illegally. Among those doing it legally and openly is Salon, a media outlet that is exploring using its visitors' computing power in place of ads. This offer is optional, and one can opt out and instead view ads if they wish.

Among those that have been caught using Coinhive to illegally harvest processing power from users include The Pirate Bay, a digital repository for media content and software. After users found out that the site had been cryptojacking their computers, the site apologized and proposed a more open harvesting of processing power in place of ads. Most of the people who responded to the proposal were supportive of the initiative just so they could avoid ads. Showtime, an American television network, was also found to have been doing the same thing; it had been mining Monero, a privacy-focused crypto, using Coinhive's software.

The Most Controversial Bitcoin Forks Are yet to come

Bitcoin forks are invariably contentious, but the latest batch could be the most controversial yet. Bitcoin Prime and Anonymous Bitcoin have been labeled as shameless cash grabs that are little more than pump and dumps orchestrated by opportunistic developers. The projects' architects of these schemes, naturally, have hit back.

New Forks Fuel a Furore

The Most Controversial Bitcoin Forks Yet Are ComingRhett Creighton has always been a polarizing figure, but his latest stunt has united a swathe of the cryptocurrency community in condemnation. EOS' Dan Larimer is synonymous with jumping from project to project, but his flitting looks like a lifetime of faithful service compared to Rhett's itchy feet. Having announced a dual fork of bitcoin and zclassic last December, which inflated the price of ZCL and enriched Rhett and his cronies no end, he's now following suit with bitcoin and primecoin to create Bitcoin Prime.

Meanwhile, a separate project is doing another fork of zclassic and bitcoin to create Anonymous Bitcoin which aims to "become the new standard for truly private banking". This means that zlassic will now have forked twice with bitcoin to create a pair of zk-SNARK-based privacy coins – three times if you include zencash, which was also born from a ZCL fork. Zen, to its credit, has since gone on to forge its own community and to differentiate itself from its parent coin. Bitcoin Private, on the other hand, has done little more than infuriate ZCL bagholders, many of whom lost money on the deal. ZCL has now died and been reborn more times than anyone can count, and is currently up 242% in a month.

A Prime Way to Pump a Dead Coin

Primecoin was trading at 80 cents until Rhett Creighton bought a bunch, announced his plan to fork it, abandoned the Bitcoin Private project, and pressed ahead with his latest money-maker. Many of Rhett's claims have stuck in the craw of the cryptocurrency community, who recognize a snake oil salesman when they see one. Some figures, including bitcoin developer Jimmy Song, believe that BTC forks are little more than altcoins or airdrops and don't deserve to be categorized under the bitcoin banner.

Regardless of their status, the approach that developers such as Rhett Creighton have taken to merrily forking coins has come in for censure. He's played heavily, for example, on the fact that Vitalik Buterin once considered building ethereum on top of primecoin, as if this somehow legitimizes the creation of Bitcoin Prime. With primecoin up 350% since the fork was announced, those who got in early – like Rhett Creighton – will profit handsomely whatever happens. At least Rhett is able to see the lighter side of the furore he's caused, tweeting the following:

A Wild Bitcoin Fork Appears

Another bitcoin fork emerged this week, turning up in the unlikeliest of places – Bitfinex. Most major exchanges have given bitcoin forks short shrift ever since bitcoin gold and bitcoin diamond but for unknown reasons, Bitfinex has decided to support Bitcoin Interest (BCI). The coin forked from bitcoin back in January, and Bitfinex intends to issue BCI later this month before launching trading. The utility provided by BCI remains to be seen, whose defining feature is the provision of interest to holders who stake their tokens. Whatever its fate, Bitcoin Interest wasn't born out of a shameless pump of an existing coin, and for that reason alone should prove less controversial than the likes of Bitcoin Prime.

How Bitcoin Cash Can Avoid the Same Mistakes as Bitcoin Core

The bitcoin cash (BCH) community understands key principles: Bitcoin should be a peer to peer Electronic Cash system; most users can use SPV wallets instead of running their own node; "second layer" scaling solutions are often unnecessary and problematic. While important, and it places the BCH ahead of others, education isn't only about the scaling debate. It's important to understand all aspects of Bitcoin.

Bitcoin Cash Knowledge is Power

If I were to ask a question: "Why did Bitcoin (BTC) fail its mission to become Peer to Peer Electronic Cash?" — you would likely hear many answers.

Some would say "censorship". Others would point to "centralization of protocol development" or "apathetic, complacent miners"… or even "Nakamoto Consensus doesn't work".

Those answers may be correct to a certain degree. I'll address each of them throughout this series, but there's an overarching principle that connects all of these.

And that principle is this: Not enough people in the Bitcoin community actually understood how Bitcoin is supposed to work.

I say that humbly — it's not that I'm so smart that I can explain how it's all supposed to work, but here's the point: Bitcoin is like a school of fish. We all have to be swimming together. Maybe not in perfect unison, but at least in the same direction.

Isn't it amazing how a school of fish can move together with coordinated body positions and synchronized movements? Scientists do not fully understand it, but it's believed to be rooted in genetics.

So how can we, the BCH community, be like the school of fish, and move together toward our destination without getting chewed apart by predators? Ultimately it boils down to this: Knowledge is power. The most important tool for liberty has always been a well informed populace.

Another word that means the same thing, is: Education.

A Deeper Problem than the Blocksize Debate

Many in the BCH community understand key principles… like how Bitcoin should be a peer to peer Electronic Cash system. Or that most users can use SPV wallets instead of running their own node. Or that "second layer" scaling solutions are often unnecessary and problematic.

Those things are very important. By understanding those (and other) fundamental principles, the BCH community is already well ahead of other communities, and that understanding goes a long way toward the goal of all swimming in the same direction.

But education shouldn't stop with knowledge of the scaling debate. We should understand all aspects of Bitcoin. Technical, economic, social… everything. The more we know, the better prepared we'll be against whatever form a future spectre takes to try to destroy Bitcoin.

As individuals, we should first take the responsibility to educate ourselves, and then educate others. And, perhaps education about the importance of education is the widest-scope principle we can formulate. It's a meme-worthy idea.

In Part 2, we'll take a closer look at consensus, decision making, and the social aspect of Bitcoin.

Written by Jonald Fyookball

Jonald Fyookball (pseudonym) is a cryptocurrency enthusiast, best known as the project leader of the Electron Cash wallet, and for a series of hard hitting articles on the Bitcoin scaling debate. Jonald is a computer scientist, businessman, investor, libertarian, and Bitcoin advocate.

Nasdaq CEO Says Company ‘Open’ To Becoming Crypto Trading Platform When Market Matures

The CEO of Nasdaq said that the stock market could become a platform for trading cryptocurrencies in the future, if the market becomes more regulated, CNBC's Squawk Box  reports Wednesday, April 25.

Nasdaq CEO Adena Friedman said during an interview that "certainly Nasdaq would considering become a crypto exchange over time." Friedman believes that cryptocurrencies "will continue to persist," the only caveat being the amount of time it will take for the crypto sphere to mature. Once that kind of institutional regulations set in, according to Friedman, Nasdaq can say:

"'It's time, people are ready for a more regulated market, for something that provides a fair experience for investors."

Nasdaq has already entered the crypto sphere, as earlier today the stock exchange and the Gemini crypto exchange owned by tech investors the Winklevoss twins announced a partnership. Gemini will be able to use the Nasdaq's SMARTS Market Surveillance Technology to alert the exchange to suspicious trade behavior, potentially preventing market manipulation.

Friedman also told NBC that she considers Initial Coin Offerings (ICO) to be securities, a point much debated in the crypto world:

"ICOs need to be regulated. The SEC is right that those are securities and need to be regulated as such."

The US Securities and Exchange Commission (SEC) launched a cryptocurrency probe earlier this year. The SEC and the Commodity Futures Trading Commission (CFTC) had also held a cryptocurrency hearing that concluded that while ICOs needed stricter regulations, cryptocurrencies needed smart policies to promote innovation.

Indian Exchange Takes Central Bank to Court Over Bank Ban

The Indian bitcoin community keeps fighting for their rights to operate freely in the country like any other industry. The latest show of defiance is a petition to the court against the actions of the Reserve Bank of India by the operators of a local exchange.

RBI Ban Unconstitutional

Indian Exchange Takes Central Bank to Court Over Bank BanKali Digital Eco-Systems, the company behind the upcoming cryptocurrency exchange Coin Recoil, has appealed to the High Court in Delhi against the recent crackdown on banks providing services to bitcoin related companies by the Reserve Bank of India (RBI).

According to the petitioner, the RBI directive is arbitrary and a violation of the Constitution of India and the court should therefore quash it. The document presented to the count, which news.bitcoin.com has obtained, explains that due to the RBI Circular the company will not be able to secure banking services that are imperative for the business' operations rendering it "stillborn." It argues that the ban is unconstitutional on two main grounds.

Freedom of Occupation

Indian Exchange Takes Central Bank to Court Over Bank BanArticle 19 of the Constitution of India guarantees citizens' rights to carry on any occupation, trade or business. But by preventing exchanges' access to baking services the government is in affect preventing people from engaging in the business of their choice.

Article 14 prohibits discrimination based on arbitrary and unreasonable classification. The petition explains that the RBI did not provide a clear definition of what constitutes 'virtual currency' and that this ambiguity dilutes any reasonability in what may be alleged as a classification. For instance, reward points such as airline miles may also be unreasonably construed as virtual currencies.

Two months ago the Supreme Court of Israel issued an injunction order forbidding one of the biggest banks in the country from halting the account activity of a local bitcoin exchange. This was a major victory for the Israeli cryptocurrency industry that set a precedent for other bitcoin businesses struggling to get banking services in the country. Hopefully the Indian high court will follow this example, even though there is a difference between the authority of a commercial bank and a central bank. Meanwhile, over 42,000 Indians have now signed an online petition that against the RBI directive.

Kraken Ends Trading Services in Japan

Kraken, one of the longest-operating cryptocurrency exchanges in the world, is pulling out of Japan. Kraken attributed the exit to the rising cost of doing business in the country, but said that it might return in the future. The exact dates for suspending trading and funding have not been determined yet, and the San Francisco-based exchange promised to contact its clients residing in Japan when this happens.

THE EXODUS FROM JAPAN

Japan has been a pioneer in the cryptocurrency industry, having been the first country to recognize Bitcoin as a legal mode of payment. However, the script has been gradually changing since the hacking of the Coincheck exchange, which saw over $500 million worth of crypto stolen. The nation's Financial Services Agency has since clamped down on many crypto exchanges, which has led to the closure of a couple of them including Mr. Exchange and Tokyo Gateway.

Perhaps the biggest exchange to come under scrutiny from the FSA has been Binance, the world's largest crypto exchange by daily trading volume. Binance had been operating in Japan ever since China outlawed crypto exchanges but was unable to secure a license with the FSA. This has led the exchange to seek alternative locations in which to set up operations, with Malta being the preferred option. According to Japanese media reports, the FSA feared that Binance did not have adequate control measures in place to prevent illegal activities, especially given its large anonymous crypto holdings.

SHIFTING FOCUS TO OTHER AREAS

According to Kraken's statement, which was leaked on Twitter, the suspension of services for Japanese residents will allow the company to shift its focus to other geographical areas and use its resources to improve its services in those areas.

The statement also expressed the company's regret at having to suspend its services for Japanese residents, having served them since October 2014, as well as its hope that in the future, it will reintroduce its services in Japan. However, the consideration of revenue against the costs required to maintain services made it impractical to continue offering them at this time.

While no official dates were offered, the statement indicated that the last day for deposits would be in mid-May, while the last day of trading would be in mid-June. The last day of withdrawals was indicated as being towards the end of June. The suspension of service only affects residents of Japan and will not affect Japanese residents or businesses that are domiciled outside Japan.

Bitcoin Cash Price Technical Analysis – BCH/USD Could Test $700

Bitcoin Cash Price Support

There was a decent start of an upside wave from the $625 swing low in bitcoin cash price against the US Dollar. The price traded above the $640 and $650 resistance levels to move back in a positive zone. More importantly, the price is now well above the $640 pivot level and the 100 hourly simple moving average. It recently traded as high as $676 before a minor downside correction.

Key Points

Bitcoin cash price is moving higher and is currently placed above $650 against the US Dollar.

Yesterday's highlighted connecting bullish trend line with support at $650 is intact on the hourly chart of the BCH/USD pair (data feed from Kraken).

The pair is showing bullish signs and it seems like it could break $680 to test the $700 handle.

Bitcoin cash price is gaining pace against the US Dollar. BCH/USD is likely to accelerate higher as long as it is above the $650 support level.

It tested the 23.6% Fib retracement level of the last wave from the $625 low to $676 high. However, the downside was limited and it seems like the price is about to resume its uptrend. A break above the $676 high could push the price towards the last swing high at $685. Above the mentioned $685 level, the price may even test the $700 resistance in the near term. On the other hand, if there is a downside correction, the $650 support may stop losses.

Bitcoin Cash Price Technical Analysis BCH USD

Moreover, yesterday's highlighted connecting bullish trend line with support at $650 is intact on the hourly chart of the BCH/USD pair. Therefore, the pair remains supported on the downside above the $650 level and it could continue to move higher towards $700.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is moving nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the overbought levels.

Major Support Level – $650

Major Resistance Level – $685

Bitcoin in Brief Thursday: Crypto Winter Is Almost Ove

Could this year's crypto winter be nearing an end? That's the opinion of some experts, and while bullish predictions are easy to come by, there are signs that a thaw could be underway. In today's Bitcoin in Brief, we examine the market forecast for the weeks ahead.

Bears Abate While Bulls Congregate

While market uncertainty has persisted for weeks, a few experts have felt bold enough to pop their heads above the parapet and predict the worst is over. On Monday, Crypto Asset Management's Timothy Enneking asserted that the bull market has largely run its course. On crypto Twitter, many traders are also cautiously optimistic. For the first time in a long time, they've actually begun sharing calls with their followers, something they'd hitherto been hesitant to do.

Bitcoin has scarcely moved in days, but altcoins, including ethereum and NEO, have started to show green shoots, and EOS is positively blossoming, up 27% in 24 hours. That being said, it's too early for celebrations. As one trader sagely put it, "The markets will bounce when everybody stops celebrating every single green candle and random shitcoin spike."

Bitfinex Dispels Money Laundering Rumors

Bitcoin in Brief Thursday: Crypto Winter Is Almost OverNo crypto exchange wants to be mentioned in the same breath as "money laundering", and even if those rumors are false, they need to be addressed. Bitfinex has asserted that there is no connection between it and the shell companies alleged to have been involved in laundering money in South America. Polish media had reported how Polish authorities seized $371 million linked to companies associated with Colombian cartels, and alleged a Bitfinex link, something the exchange has strenuously denied.

Litecoin Is Getting a Debit Card

Crypto debit card Tenx recently integrated litecoin into its wallet, and Charlie Lee now claims a dedicated litecoin debit card will be next, also coming courtesy of Tenx. If so, LTC will be following in the footsteps of BTC and BCH in getting its own crypto card. The news will help atone for the collapse of Litepay, a litecoin payment processor that folded due to impropriety on the part of its CEO.

Asicboost Adoption Receives a Boost

ASIC miners are controversial for a number of reasons, and so is the patented Asicboost technology that a number of mining pools have now adopted. Asicboost can improve mining performance by up to 20%, and there's now an easy way to track its prevalence among newly mined bitcoin blocks. Asicboost.dance is a block explorer that records instances of the overt "version-rolling" Asicboost in action. In related news, Samsung is reported to be developing 10nm chips for Halong Mining to use in its ASICs. Big if true.

Gavin Andresen and Craig Wright Part Ways

Bitcoin in Brief Thursday: Crypto Winter Is Almost Over

Gavin Andresen

The act of one bitcoiner unfollowing another on Twitter ought not to be news, and yet Gavin Andresen's decision to unfollow Craig Wright has got people talking. It was Andresen who first met with Wright in 2016 and "confirmed" that the Australian was Satoshi Nakamoto – a decision Andresen later rescinded and expressed regret over. Andresen's simple act of unfollowing may indicate their already strained relationship is over.

Bitcoin Is Not a Bubble

December's insane price run aside, bitcoin has been going steady for some time now. Or at least it has if you remembered to zoom out. Tetras Capital's Brendan Bernstein just went on a tweetstorm to explain his reasoning why bitcoin is not in a bubble – unlike the government-controlled fiat markets. The entire thread is worth a read, but we'll leave you with this tweet to ponder:

Bitcoin vs Oil and Gold: There Is a Difference

It's an easy comparison to make: Bitcoin mining versus gold and oil extraction. All – in the abstract sense for bitcoin – involve unearthing resources, all have had bumpy price histories, and all have been labeled as disruptive in their time.

Gold vs Oil vs Bitcoin

There are crucial differences between the three assets, especially when it comes to tracking what happens to supply after an increase in price. Twitter user @WallSt_Dropout produced a series of fascinating charts that help illustrate those differences perfectly.

First, oil. As the price of oil starts to climb, there's a marked response in oil production. Why? Because now there's extra incentive to invest in infrastructure/extraction capabilities.

As oil production begins to outstrip demand, there's a drop in the price of oil. It's now not as profitable to remove quite as much oil as before, so production eases off. As oil prices start to recover – thanks to restrictions in supply from the last cycle – the drillers turn their machines back on and produce more of the black stuff.

The same applies to gold. Beginning in 2008, monthly gold ore production is low, thanks to consistently low prices in the previous decade. As market forces begin to push the price of gold up – remember that financial crash? – production ramps up to keep track of prices. As gold prices take a dip in 2012, ore production levels off.

In bitcoin's case, the opposite is true. In 2010, when the block reward for production was higher, prices were low. As prices have climbed, the rewards for mining have dropped off. There isn't the same cyclical relationship between supply and demand found in oil and gold.

Bitcoin Is different

This is a key function of how bitcoin works. The bitcoin block mining reward halves every 210,000 blocks. At present the coin reward is 12.5 coins. According to Bitcoinblockhalf.com, by May 2020, the reward will drop to 6.25 coins.

How will miners make money after the block rewards end in 2140? Transaction fees. Gold miners don't control the buying and selling of the product, whereas bitcoin miners charge transaction fees for the confirmation work they complete. It would be the equivalent of an oil platform charging individuals a small fee for the oil they use in their cars.

It's a necessary part of the system. Think of it as miners creating a fixed amount of land every 10 minutes. People who want to make a transaction bid for a slice of that land. The sale of that tiny portion of land is what keeps miners mining.

As the Bitcoin inflation rate steadily trends downwards, the necessity of transaction fees to incentivize miners to keep mining will go up – in the far future.

Oil and gold are commodities that have no 'real' end date, i.e. there are still resources lying beneath the ground. Despite fears of peak oil and peak gold, companies keep finding more of the stuff as technology allows them to pinpoint their location and extract it with greater accuracy.

We already know how much bitcoin is left to be mined. Which makes bitcoin mining a very different proposition than mining other real world commodities.

New Local Crypto Street Exchange Shop Trades Bitcoin for Cash in Central Moscow

A change bureau trading bitcoin has been opened in the Russian capital. According to local media, this is the only currency exchange in Moscow buying and selling cryptos for cash. Lawyers say nothing in the law prohibits this kind of service, and the business is legal. 

Bitcoin Sold for Cash

Russian authorities have not regulated cryptocurrencies yet, but Russians are already adopting them. A new bitcoin change has been opened recently, not far from one of Moscow's main railroad stations, Kursky Vokzal. According to media reports, the bureau is the first of its kind in the Russian capital.

Sbercoin

The exchange is trading only bitcoins for Russian rubles in cash. Customers can buy and sell the cryptocurrency if they present an ID. The management claims that their business complies with current Russian laws. The bureau is located on the "Verhniy Susalniy" street. Other offices will be opened at two other locations, the business centers "Moscow City" and "Rumyantsevo", Bitfin reports.

Cryptocurrencies are not considered legal tender in Russia. A draft law to legalize crypto-related activities, like initial coin offerings and mining, has been introduced in the Duma by the Ministry of Finance. Another bill, co-sponsored by the parliament speaker Vyacheslav Volodin, aims to regulate the use of "digital money" and protect "digital rights" of investors. The new legislation should be adopted by July.

The circulation of cryptocurrencies and their use for payments have divided government institutions. The Finance Ministry wants to legalize their trade on registered exchanges but the Central Bank has opposed the idea. There have been calls for an outright ban on cryptocurrencies by officials who consider them illegal money surrogates. On the other hand, the current legislation does not explicitly prohibit cryptocurrency operations like exchange services.

Well, If It Isn't Banned…

"In any democratic society, including Russia, if something isn't banned, it should be legal," said Vladimir Yurasov, managing partner at a Moscow-based law firm. "The federal legislation has no provisions prohibiting the use of bitcoin in financial transactions. The purchase and sale of bitcoin do not violate the Civil Code", he told BFM. If there is no criminal offense, these activities are legal, the lawyer added. Russians can buy bitcoin, both on the internet and on the street, Yurasov said.

Sberbank

The branding of the new crypto exchange, however, is a bit misleading. The office of "Sbercoin" resembles that of a Sberbank branch – similar name, the same green colors. The state-owned Russian "Savings bank" is among the biggest in Europe. Despite its interest in cryptocurrencies, it certainly has nothing to do with the small change tucked between a grill and a tobacco shop.

According to Vivalacloud, Sbercoin also offers its customers a contract for some of its services. It comes with a plastic card showing a public key to a new crypto wallet. A private key is provided in an envelope – only you will know it… and Sbercoin, of course. Remember, Bitcoin has its "dos" and "don'ts"!