Is crypto currency tangible?
Centuries ago, conch shells were money. Feathers, stones, and precious metals are other examples of money that have all been used throughout the history to settle debts, facilitate trade, and store wealth. If we can consider these commodities to be money, then is it such a far-fetched idea to believe that crypto currencies are money?
Matter of trust
We can create money, as long as there is a demand for it from end users. If parties come together in trust and agree that a commodity, physical or virtual, is money, then — it is money. This rule applies to gold, flat currencies, and crypto currencies.
Governments created their competitive currency edge by charging taxes to their citizens based in local flat. The difference in the two exists that flat currency use is centralized and enforced, while cryptocurrency use is decentralized and organic.
This strategy creates demand for currency within the homeland as an attempt to circumvent payment of tax is severely punished under rule of law. Many economists believe the ability of government or state powers to enforce payments in their flat, that gives the currency its intrinsic value. Therefore, the demand and value of a countries currency come primarily from the need to pay taxes or be sentenced to jail time for tax evasion.
Cryptocurrencies gained their faith from users that saw potential in an open source, decentralized ledger system. Individuals formed a community and decided to use crypto as a means to transact, as well as invest, speculate and store wealth.
There are similarities between the two in the fact that they are both used as a medium of exchange and a unit of account. The critical component shared by both fiat and crypto is full faith and confidence in each of the systems by their users. Both USD and crypto currencies are exchanged daily to settle debts. However, it would seem that while one system is growing in acceptance, the other is losing its grip.
How complex is IBO?
Richard Jacobs from Baltimore based Agora Financial, LLC represents a pioneering company that has already proved its name in providing “tangible” benefits for scores of client’s retirement money. Richard writes in detail about Initial Block Offering (IBO) who offers a mathematical trade model that helps users get started with earning a potential profit more than 1000x than the nearest competitors.
Blockchain technologies the foundation of a revolution in business operations and online practices. For a few they are just an expensive bust for companies that are foolish enough to get tangled up in them? The answer is likely to be a little bit of both.
For business executives that dive into blockchain investments without thoroughly investigating the technical realities and limitations of the technology, a lot of red is likely to show up on the company balance sheet. For companies that invest wisely, however, with a realistic perspective on what blockchain can and cannot achieve, the technology could prove transformative.
Bitcoin is the public face of blockchain for most people today. It’s being heralded as a revolution in online payment and financing and as a tremendously overvalued bubble of vaporware all at the same time. For true believers it represents the initial waves of a sea change in the regulation of financial markets and personal freedom by governments.
Can we start our own cryptocurrency?
Cryptocurrency is still in its infancy, and it’s one of the most interesting business models. Create your currency that determine your digital ecosystem, release your software and build user interest. It seems like your standard business startup, but the cryptocurrency market is unregulated and still in its “Wild wild west” stage. Starting your own cryptocurrency takes several different steps, unlike your normal online business venture. In order to increase the likelihood of success, you should research and take a few steps to ensure stability in your system.
Understanding blockchain technology
All you need a developer who understands blockchain technology but you should too. In a standard cloud application, data is stored on a central server. This central server is controlled by one entity, so a single entity can make changes and all data propagated to other user machines is also changed. The central entity controls the way the application works for its users.
What attracts ICO crowdfunding?
With blockchain technology, every computer on your network has its own copy of the database. These nodes are interconnected with every other computer on the network, and any changes to the database must be accepted and applied to databases stored on each machine this means that no one person can make changes to data. The community drives acceptance to changes.
Cryptocurrency’s main attraction is that it’s an unregulated form of currency that can’t be controlled by any one entity. The value of the currency is determined by users, and they can buy and exchange digital coins without their local economy having any effect on the ecosystem. Digital currency is popular in countries where hyperinflation affects local economies, because they can invest without the fear of government interfering.
With blockchain technology, your applications are decentralized. Decentralized applications work peer-to-peer, meaning that the application runs on a local computer and any data is shared with all other nodes. As the database grows, it takes longer fora new user to join the ecosystem, because they need to download the entire database. This is one issue that should be worked out with your developer. Even with the few disadvantages, crypto currency has several advantages and continues to gather interest from investors and users.
Why blockchain is not for N00bs?
You might be the developer, but if you don’t have an understanding of blockchain technology, you’ll need to learn it. Building block-chain applications is much different than standard software ethereum is known for its platform that allows developers to deploy blockchain technology, so it’s a good place to start.
The original bitcoin repository on github is open-source, and some developers prefer to fork it and build directly on the source code. Blockchain technology was originally built for bitcoin, so forking it from the bitcoin repository gives you the foundation needed to build a new crypto-currency without the tedious coding details you can fork the repository and make a few changes to the code for your own cryptocurrency, but to create a successful digital currency you need to offer something that others don’t. For instance, bitcoin is not anonymous, so the lead developers at Agora Financial created their own mathematical trade model to build on the cryptocurrency technology and make buying and selling their coins completely anonymous and confidential. And, now this is employed to help startup clients raise funds using (Initial Block-chain Offering) IBO.
If you need a developer, consulting one will help you flesh out ideas and figure out the best way to start with the code base. They can also tell you options that can be done with block chain applications, so you know your limitations and pitfalls.
What is your coin supply limit?
Taking from bitcoin technology, the maximum amount of coins that can be mined is 21 million. It’s estimated that it will take decades to reach that point, but your new crypto currency will have its own economy and maximum number of coins. The makers of the bitcoin model has devised the system to max out at around 18.5 million coins, but the developers built tails emission into its algorithms the emissions will stabilize the coin’s value as they run out of available currency, so as more coins are added the emissions reduces its price reduction due to saturation.
Are we heading to terminal capitalism?
Clients don’t want to make too many coins available at a time although cryptocurrency is unregulated, many of its economy hurdles are the same as what clients get in real-world money. Too much printed money saturates the market and devalues the economy. The same happens when you allow too many cob to enter the system without limiting the rate at which new ones can be mined.
Finding miners to create your coins
Miners use their own computers or specially designed mining stations to trade computing power for digital currency. It’s likely that you don’t want to set up the mining operation, so you need to find user interest to mine your coins. In most countries, electricity is too expensive to mine digital currency. The computing power needed to perform calculations uses electricity, and the utility costs to mine coins is sometimes more than the coins you get each month. China and Georgia have cheap electricity and this is where most cryptocurrency miners are located.
When your cryptocurrency gains interest, you will find miners. Remember that your digital currency must offer something that others don’t, or it won’t gain popularity or attract miners. Miners spend money to make money, and the value of your coins must be worth the investment.
ICO and tokens — building startup funds
Your developer could fork the bitcoin open-source code, make a few changes and have a new cryptocurrency up in just a day, but it’s not a realistic goal. Several new cryptocurrencies have been launched and the reason for their popularity is that they offer something that others don’t. You need a unique marketing spin and value for your coins just like any other business venture.
An initial coin offering (ICO) is similar to an IPO. You offer tokens to investors in return for physical, real-world money. This money is then invested into building your cryptocurrency network. You should never give away too many tokens. These tokens translate into coins when you launch. Too many of them will saturate the market too quickly, and users will be suspicious of your intent.
Suspicion and scams are common in cryptocurrency ventures, because some ventures have lost millions in capital due to poor programming. Dao, for instance, was a cryptocurrency launched in 2016. The owners built user interest, and it was supposed to be the next big digital currency similar to bitcoin. Within only a few weeks, the network was hacked and hackers ran off with $50 million in coins. This destroyed Dao and its popularity dropped. It’s one reason why finding the right developer is one of the most important steps in the startup process.
Trust and stability are keys to success because creating a new cryptocurrency can be done by anyone compared to creating a regulated banking system, the market also suffers from scams. Dogecoin is an example of a failed cryptocurrency due to scams. Dogecoin’s owner set tip a fake identity, purchased an exchange, and later ran off with community coins. Hacked systems are also problematic, because it stops the exchange and hackers are able to steal millions from customers.
When you build your own system, ensure that the prototype is hilly tested. Never skimp on testing, because it can be the one issue that destroys trust with users and later your currency drops in value. Test for security and any bugs. Working with people’s money is difficult and bugs should be limited to only small, aesthetic ones. After development, you need to market the cryptocurrency just like a standard business. Build trust and stability
Into your business model and you can profit from your own digital creation. Look for the right developer who understands block-chain technology, and determine the right coin offering that attracts IBO investors but doesn’t saturate the market with too many coins. And, this is 2018, the age of Block-chain and Forks.
So, what’s IFO (Initial Fork Offering)?
An Initial Block Chain or IFO offering requires that someone offers something so that someone else can accept the offer. In a Initial fork offrting, there is no offer. Before the fork, you have 1 X, after the fork you have 1 X and 1 Y. You didn’t accept any offer; you just had them.
Miners fork a blockchain and mine new coins, to make strong enough community support. And, there are actually 6 more references — Bitcoin Platinum, Super Bitcoin (block height 498888), Lightning Bitcoin, Bitcoin God, Bitcoin Cash Plus, Bitcoin Uranium.
Agora Financial is a pioneering consulting group dedicated to quality hyperledger, blockchain R&D pertaining to consensus protocols, token dynamics, product architecture, and technical viability. Agora Financial provides independent economic commentary, analysis and education through print and online publications, videos, online seminars, conference calls and more. Here’s the link to their website.
References: blockchain, hyperledger, startup crowdfunding, ICO blockchain
