Private Equity Funds for Bitcoin Mining

In order to make Bitcoin Mining attractive to professional investors within such a regulated framework, there is now the private equity fund “Bitcoin Farming”. There is also a first investment object already. This is located in Sweden with approximately 2,000 high-performance computers. Due to the current Bitcoin price, mining is currently still below the market price. However, due to the total volume defined in the Bitcoin protocol and the associated deflation, the company expects rising prices in the medium to long term.

However, what is associated with the concentration of Bitcoin mining farms on large investors and institutional investors is an increasing centralisation of Bitcoin mining, as has already been criticised again and again by Bitmain. Ultimately, it is this concentration of mining processes that the company hopes will increase its competitiveness.

This is what the Bitcoin news press release says:

“Due to the ever more complex calculation steps required to produce a Bitcoin, ever more specialised high-performance technology is required. It is therefore of the utmost importance to us that we have ensured via our network that we have access to the latest mining rigs in large quantities at all times. In the future of the Bitcoin news, the production of new Bitcoin will be distributed among fewer and larger market participants according to the Bitcoin news. The fund is designed in such a way that we constantly adapt our computing power to demand and thus remain competitive in the long term”, explains Marc Stehr, the initiator of the fund.

And the Bitcoin formula?

The Bitcoin formula company also wants to address the question of the often criticized consumption of electricity as reported in this Bitcoin formula review. Accordingly, Xolaris says that the location in Sweden will reduce the necessary cooling capacity. In addition, the electricity will come from hydropower. Efforts to colour Bitcoin Mining green are already being made by Intel, among others. On 27 November, the chip manufacturer received a patent for energy-efficient mining of crypto currencies.

According to the financing model, those who want to invest have to take a little more money into their hands. Investors can subscribe to the fund from a minimum investment amount of 250,000 euros and up to an issue volume of 30 million euros.

With its initiative, the company is ultimately making the mining process attractive for institutional investors. The narrative of institutional and large-scale investors is often seen as a promise of salvation in the crypto community. You can find out what role the “story of the big players” can play in the valuation of crypto currencies in our crypto compass special “House of Nakamoto”. (First issue free of charge, click here to order).

Security breach: Ledger Nano S must be updated!

A 15-year-old discovered a vulnerability in the Ledger Nano S Wallet that allows him to redirect transactions and manipulate both seeds and recovery passwords. In collaboration with Ledger developers, they have now developed an update for the offline wallet, which should definitely be installed.

Hacker Saleem Rashid stated on his blog on March 20 that he had cracked the Bitcoin code Ledger Wallet

The back door that Rashid developed is 300 bytes small and makes the device create ready-made wallet addresses and recovery passwords for the Bitcoin code attacker. The attacker can then enter these passwords into a new hardware wallet to recover the private keys of the old devices for these passwords:

With the same approach, attackers could make similar interventions. For example, they can manipulate target addresses and amounts of transferred crypto currencies. Attackers could then redirect transactions to their own wallets.

However, in the March 6 update news, Ledger’s Chief Security Officer stressed that the vulnerability was not critical. Charles Guillemet stressed that the attackers were not able to read the private keys. Rather, he stated that Ledger could detect manipulated wallets when they connect to the Ledger server.

Rashid doubted the security of the Bitcoin code Ledger wallet

Rashid again questioned this Bitcoin code statement and said that even if he fixed the problem with a small modification, he could crack the system again. According to Rashid, the vulnerability of the Bitcoin code is in Ledger’s secure microcontroller (Secure Element). This communicates with the “general-purpose microcontroller” Ledger calls MCU.

The MCU in turn communicates with the rest of the hardware wallet, such as the USB host, the OLED display and the buttons that the users have to operate. Rashid’s approach is now to replace the original firmware with a wrong code. At the same time, he manipulates the MCU to send the seemingly real image to the secure microcontroller.

In an interview with online magazine Ars Technica, Matt Green of Johns Hopkins University expressed doubts as to whether Ledger’s first update would solve the problem:

“Ledger is trying to solve a fundamental problem here. You need to check the firmware running on a processor. But their security chip can’t see the code running on the processor. So you have to get the processor to work with its own code! This would be a Catch-22, because the processor could possibly work with wrong code, which cannot be trusted. It’s like asking someone who may be a criminal whether he’s revealing his criminal record for the sake of honesty.”

After the DAO Token Sale – retrospective and explanations

A reader question reached us on the Fabebook page of BTC-Echo regarding the DAO Token Sales. Questions of substance are always welcome and we would like to try to answer them.

About a week ago some questions regarding the DAO Token Sale and Ethereum were asked. We asked for some processing time at the time and now we want to pay this debt! Finally the time is right, the DAO token sale is over, first proposals have been presented to the DAO and some Exchanges now allow the trade with DAO tokens.

Short review of the Bitcoin formula

The first question concerned the rise or fall of the Ethereum share price during the sales period. It has been discussed from the point of view of Bitcoin formula analysis. However, technical analysis ultimately looks at developments on the market irrespective of any underlying causes, and accordingly one can say something from the perspective of fundamental analysis like this:

Ultimately, bulls and bears can be named throughout the process: DAO token buyers on the one hand, Ethereum bagholders on the other. If we take a look at the share price performance over the last month, we can see how the DAO Token sale drove the share price upwards – after 30 April, people were enthusiastic about buying.

This effect was particularly strong in mid-May. This can be explained by the fact that DAO token buyers should buy as low prices as possible – you have to keep in mind that the price of DAO tokens has been successively increased since 11 May.

Around 20 May the Ethereum Bagholders sold their Ethereum; the reminder that the price fell low on 14 March after passing the previous price peak of over 13 EUR (USD) probably triggered this. Of course, they didn’t want to experience that again! After all, on 28th May there was the last big rise before the token sales were concluded, again by the DAO token buyers.

Since then, the Ethereum price has continued to rise, which is due to the DAO’s reputation as well as other positive news.

How does the Bitcoin trader work?

In addition to the questions about the Ethereum price movements, a few more questions about the Bitcoin trader were asked, including what happens to the ether spent on buying DAO tokens. These remain in the DAO; one has bought DAO tokens for Ethereum. The DAO can then consider what the ether should be put into when voting on submitted proposals.

Getting the invested ether back from the DAO is not entirely trivial. Of course you can sell them on an exchange – but that wouldn’t be worth it at the moment. So you are finally bound to the DAO. In addition to this, you can also initiate a split of the DAO.

With Life of Brian you might call “splitter!” – but especially in the case that a majority of a minority wants to undercut by taking advantage of the voting process, or even only if you are not satisfied with the principle of the DAO at all, that would be an approach.

So if someone is dissatisfied with a proposal, he can submit one himself before the proposal is executed, with the aim of forming a new DAO. Anyone who votes in favour will then found this new DAO together with the ether he has paid in. What then happens to the ether in concrete terms is, of course, the content of this new DAO.

An Introduction to Binary Options

Binary options are becoming more and more popular – Trading, which is already possible with a few Euros, has convinced many traders in the past. Below you will find all the relevant facts and information you need for a rough understanding of binary options.

What are binary options used for Bitcoin profit?

Binary options are a type of financial trading that are characterized primarily by Bitcoin profit. Therefore, this type of options is often referred to as digital options.

The trader, as the word binary suggests, has only the possibility to choose between “zero” and “one”. This means, in terms of the financial sector, that traders have the choice of either betting on a falling price or on a rising price.

Depending on how the trader decides and how the price develops, the trader can expect a corresponding return or a loss.

The main feature of binary options is that binary options are easy to trade. This probably makes binary options particularly popular as a type of financial trading.

Overview of the advantages of binary options for Bitcoin profit

Binary options offer many Bitcoin profit advantages over other types of financial trading. An important point is that binary options offer a certain degree of transparency:

The derivatives are also easy to trade and have allowed the popularity of binary options to increase in recent years. To achieve long-term success, however, it also requires a certain amount of experience.

Binary options, which have become more and more popular, are also characterised by the fact that there are no option premiums. On the other hand, option premiums have to be paid for many other types of financial trade.

The advantage of binary options is also that the trader does not have to accumulate knowledge about many different, complicated key figures beforehand. Likewise, it is not necessary for the trader to analyze complex key figures. However, this is exactly what is recommended for long-term success.

In summary, the characteristics of binary options can be presented as follows:

Decision only between falling and rising course
no complicated key figure analysis absolutely necessary
Trading possible with little use
Call and put options as variants of binary options
trading easier and less complicated than many other types of financial trading
Disadvantages of binary options at a glance
Trading binary options is quite easy, but in order to achieve long-term success, there should be some basic knowledge. Without the Know How one plays otherwise nothing else than Lotto.

An entrance into an option takes place mostly relatively short term, since the traders usually offer the options at the end of the day.

A wrong tip leads to the total loss of the bet.

IBM Announces Food Collaboration

IBM announces in a press release a Blockchain cooperation for higher food safety. The announcement included the introduction of the first fully integrated IBM Blockchain platform designed to ensure the rapid adoption of Blockchain technology.

A group of leading companies in the global food supply chain yesterday announced a Blockchain collaboration with IBM. The goal is to further strengthen consumer confidence in the global food system. The consortium includes Dole, Driscoll’s, Golden State Foods, Kroger, McCormick and Company, NestlĂ©, McLane Company, Tyson Foods, Unilever and Walmart. Together with IBM, the companies are working to identify new areas of application for blockchain in the global supply chain.

According to the World Health Organization, one in ten people get sick each year from contaminated food and around 400,000 people die as a result. Many food safety issues, such as contamination-related diseases, waste and expensive food recalls, are exacerbated by lack of access to information and poor traceability. It can now take weeks to find the exact cause of contamination. As a result, more people become ill.

Blockchain technology is now being used to find a way of dealing with these Bitcoin trader problems

It offers all participants a trustworthy environment in which Bitcoin trader transactions can be processed more transparently like this Participants in the global food supply chain, such as farmers and producers, suppliers, the processing industry, retailers, government agencies and consumers, can use a blockchain network to obtain secure and reliable information on the origin and condition of food for their transactions.

The cooperating companies want to take advantage of this. Marie Wieck, IBM General Manager Blockchain, says:

“Blockchain technology is changing the way like-minded organizations can work together. Because everyone involved has exactly the same view of things, a single view of the truth, mutual trust increases enormously. Our work with organizations across the food ecosystem, as well as IBM’s new blockchain platform, will help companies realize the full potential of this promising technology. Organizations of all sizes and industries can move faster from the concept phase to productive operations and run business processes more efficiently with Blockchain.”

New Integrated IBM Blockchain Platform for the crypto trader

The IBM Blockchain Platform for the crypto trader is accessible via the IBM Cloud and facilitates all steps in building a blockchain network: it enables multiple crypto trader parties to jointly develop, control and operate blockchain networks. This enables organizations to put their own business networks into operation very quickly.

The platform incorporates IBM’s experience from more than 400 customer projects in industries such as financial services, supply chain and logistics, retail, government and healthcare.

Already thoroughly tested, the IBM Blockchain Platform addresses all the security, performance, collaboration and data protection challenges that organizations face – both technically and organizationally. It offers innovations that are the result of open source collaboration in the Hyperledger community. These include the latest Hyperledger Fabric v1.0 framework and the Hyperledger Composer Blockchain tool, both hosted by the Linux Foundation.

Californian lawyer accepts Bitcoin for election campaign

Christina Gagnier is the youngest Krongress candidate to accept Bitcoin donations for her election campaign.

The Democrat represents the 35th Congress District in California and is professionally active as a successful entrepreneur and lawyer specializing in technology and Internet law. Gagnier said that some voters have approached her and increasingly asked whether she also accepts Bitcoin. She was happy to do so and the decision of the FEC (Federal Elections Committee) to accept Bitcoin as a donation came just in time.

Gagnier: “My campaign is aimed at meeting my voters there as they happen to be. I also like to go to my voters and ask them where I can help or try to involve them in my campaigns through the Bitcoin acceptance”.

To launch the Bitcoin news, Gagnier has partnered with Coinbase

Gagnier says that politicians who speak publicly about their positive experiences with digital currencies can accelerate and consolidate popular acceptance. She also believes that Bitcoin news needs representatives to bring technological progress to the country’s regulators.

“Technology affects and will affect every industrial sector,” Gagnier said, referring to the constant problem that Bitcoin technology is always faster than the law. “With a congress of members from different backgrounds, we will be able to build a regulation that is workable and beneficial to a wide range of industries”.

Bitcoin news vs. regulation

Gagnier is co-founder of the technology Bitcoin news company Gagnier Margossian LLP. She is also managing director of JobScout, an online platform where job seekers can improve their application skills.

She says she would like to see digital currencies help smaller companies stay competitive, but that requires more clarity and a unified set of rules:

“If each state has its own laws dealing with the transfer of money and now the states start drafting their own Bitcoin laws to regulate Bitcoin, this leads to a lot of confusion among those who want to accept Bitcoin. A single guideline and coherent legal framework would be very helpful.”

The new electoral environment
Gagnier is now one of many MEPs who publicly support Bitcoin. A handful of MEPs are already accepting Bitcoin for whaling campaigns.

Apparently with public support and the FEC’s new guideline, which officially allowed Bitcoin to donate for political purposes, BitPay announced several new partnerships to make it even easier for politicians to accept Bitcoin. The payment processor has partnered with CoinVox, NGP VAN and Targeted Victory. All three companies offer support in conducting election campaigns.

What exactly can we imagine by this?

On your website you can read that BlockState wants to build bridges between the traditional financial sector and the crypto economy

With our products we want to bring together the efficiency gains of blockchain technology with the compliance requirements of the classical financial world and thus build a bridge. Our mission is not to abolish banks and replace them with a regulatory evasive solution. We must not forget: The classic financial world also has a lot of advantages. If I lose my password for my online banking account, then I have a contact person who helps me to recover it. In our opinion, intermediaries are not superfluous per se, especially if they provide a certain level of security. At the same time, my experience in banking is that the structures there often date back to the eighties.

You are planning to make investments in crypto currencies possible for institutional investors – how exactly is that going to work?

So far it has hardly been possible for institutional investors to participate in the crypto currency market for regulatory reasons – we want to change that. We will be launching an index product this year that tracks the 15 largest crypto currencies. This index product will not only be available for private investors, but also for institutional investors, as it meets their regulatory requirements.

How do you solve the regulatory problems that many companies working on crypto funds are currently facing?

One of the biggest problems with crypto funds is cleanly auditable pricing. For Bitcoin and Ethereum there are now consolidated prices due to the futures market. However, this is not the case for other crypto currencies, especially beyond the top 10. This is where we come in and first ensure transparent pricing. Another problem lies in the structure of the products: So far, these products are primarily available to wealthy private clients, as they do not comply with the regulatory requirements of institutional investors. Our products, on the other hand, will meet the UCITS and PRIIP criteria and are therefore tradable on stock exchanges and also suitable for institutional investors for diversification.