Cryptocurrencies, and the next big thing

[cryptoman]

In light of the monster move in Bitcoin recently, I believe it's time to start looking at potentially the next big thing in crypto currencies.

In my opinion this may very well be Clock Coin. It's currently trading at next to nothing compared to Bitcoin. The code for it has been fully re-written & audited, and appears to be the only truly anonymous crypto out there. A month ago it was announced it was going Open Source. Clif High announced in an interview a couple days ago that he was a fan of it.

I still believe Bitcoin will most likely double or more (in the short term) from current levels, and ultimately drag some of these alt's with it.

I am in no way affiliated with this coin- just presents some very interesting anonymous technology in the crypto space.

 

[Klogg]

In light of the monster move in Bitcoin recently, I believe it's time to start looking at potentially the next big thing in crypto currencies.

In my opinion this may very well be Clock Coin. It's currently trading at next to nothing compared to Bitcoin. The code for it has been fully re-written & audited, and appears to be the only truly anonymous crypto out there. A month ago it was announced it was going Open Source. Clif High announced in an interview a couple days ago that he was a fan of it.

I still believe Bitcoin will most likely double or more (in the short term) from current levels, and ultimately drag some of these alt's with it.

I am in no way affiliated with this coin- just presents some very interesting anonymous technology in the crypto space.

Addressing the most important point first - audited by whom? Do you truly know that the code does not allow for the creator/implementer to create additional coin at will? It takes some serious auditing to know that.

The way I see it - cryptocurrency currently offers things that standard currency cannot, specifically in the realm of smart contracts. However, there's still a LOT of work before this can be truly useful to the mainstream:
- Wallets (a mechanism to hold your private key) are not that easily maintained and can be lost
- Transaction privacy is not entirely there. Bitcoin doesn't encrypt the ledger, so anyone can see all the transactions made by one alias. A few new cryptocurrencies have started addressing this
- Price stability. I wouldn't dare touch bitcoin or ethereum at this point, the price moves too much for me to be able to purchase anything with certainty.

As for short term... there's a nice bubble forming in this area. The number of ICO's (initial coin offerings) is getting big, and some of them just take the BitCoin open source and make very slight modifications. Very dangerous space at the moment.


Longer term, the very interesting part is the distributed ledger/database. Any security concerns around data are removed, as there are many copies as the blockchain is built upon. There are already swarms of teams looking at this, so if you want to join in, I'm sure you can find a vacancy somewhere.

 

[cryptoman]

Audited by: Iain 'Jonny Bravo' Craig
A well known auditor.

 

[cryptoman]

Can't seem to edit posts here which is a little sad.

The coin is called Cloak Coin, not Clock Coin lol.

 

[skyQuake]

Audited by: Iain 'Jonny Bravo' Craig
A well known auditor.

Seems fairly loose...

The way I see it - cryptocurrency currently offers things that standard currency cannot, specifically in the realm of smart contracts. However, there's still a LOT of work before this can be truly useful to the mainstream:

Etherium has signed on some really big names so there's some hope there

Longer term, the very interesting part is the distributed ledger/database. Any security concerns around data are removed, as there are many copies as the blockchain is built upon. There are already swarms of teams looking at this, so if you want to join in, I'm sure you can find a vacancy somewhere.

Bitcoin still comes out ahead in my books long term due to the built in deflation/hard cap of 21m.
First mover advantage also helps!

 

[cryptoman]

Cloak Coin still in its infancy (hence the price), but presents very unique technology.

If you have any questions, you can ask the developers themselves at:
https://chat.cloakcoin.com/

Something you can't usually do with most coins!!

 

[Klogg]

Bitcoin still comes out ahead in my books long term due to the built in deflation/hard cap of 21m.
First mover advantage also helps!

True, forgot to mention that. The network effects at play here are huge.

If you have any questions, you can ask the developers themselves at:
https://chat.cloakcoin.com/

Something you can't usually do with most coins!!

That doesn't stop them from lying to you over chat...

How do I know it's really a developer? (I write code for a living, I would not waste my time answering questions from the general public...)

How can I verify what they say (is their code open source)?

Will there be a network large enough to make the coin worthwhile? (possibly the biggest gamble)

 

[cryptoman]

I would suggest doing some research on the coin Klogg.
Your questions can be answered very easily.
Open source is on the way - this has been announced.

 

[Klogg]

Can't seem to edit posts here which is a little sad.

The coin is called Cloak Coin, not Clock Coin lol.

I would suggest doing some research on the coin Klogg.
Your questions can be answered very easily.
Open source is on the way - this has been announced.

With all due respect, what's stopping it from going open source now? Create a repository on github, push the code and away you go...

That alone makes me a little more skeptic... but yes, you're right, I should read up a little more

 

[So_Cynical]

I think there is massive potential for a digital currency that is backed by something, i was recently thinking that it would be pretty easy to start a digital currency backed by physical silver, clients would send in there silver and would be credited by weight to their account.

The value could then be used as a digital currency with units of weight, grams instead of dollars.

 

[galumay]

i just cant see crypto "currency" being anything other than a short term speculative bubble. Its got the smell of tulips about it!
Long term I am sure some of the technology of blockchains will find their way into real currency management.

As to your point So_Cynical, I am not sure that would work any better with crypto than it has with real currencies! Backing money with cyclical commodities is an historical anachronism.

 

[ThingyMajiggy]

The people are in charge of it, instead of the big banks/economies who continue to do questionable things and get away with it, and you don't think it's going to anything more than a bubble? Maybe the prices of some might be, but not the concept I don't think. I'm not sure about you but I'm fairly sure people are well and truly fed up with how things have been running, hence Brexit, Trump, Pauline etc. people want change and some control and freedom back.

It would not surprise me at all if cryptocurrencies are the future of finance, the scene is buzzing. Be sure to expect Governments attempt to shut it down somehow(who knows how, not sure if its possible, maybe via controlling/regulating what we do on the internet like imbecile May is talking about), although Russia looks keen on Ethereum. I love the concept personally, I'm all for it. There's huge opportunity in the crypto scene. For the possible returns for not much risk, why not have a crack.

Hell if you invested $1000USD in Bitcoin in 2010, it's now worth more than $35m, vs being worth $2500 if you did the same in the S&P500. Might as well take advantage of the hype if it's there.

 

[galumay]

Its all deju vu, ThingyMajiggy.

Might as well take advantage of the hype if it's there.

Said someone, every single bubble.

 

[ThingyMajiggy]

Its all deju vu, ThingyMajiggy.



Said someone, every single bubble.

Fair enough, sit on the sidelines then.

 

[Klogg]

It would not surprise me at all if cryptocurrencies are the future of finance, the scene is buzzing. Be sure to expect Governments attempt to shut it down somehow(who knows how, not sure if its possible, maybe via controlling/regulating what we do on the internet like imbecile May is talking about), although Russia looks keen on Ethereum. I love the concept personally, I'm all for it.

I agree here, but it wouldn't lead me to buy Etherium/Bitcoin/any other random coin.

The concepts behind blockchain, distributed ledgers, and the removal of a trusted third party are HUGE. If price stability could be built in, then I could see this being widely adopted - it's too powerful not to.

Imagine this - there are a series of nodes that contain the distributed ledger for the AUD (currently referred to as Bitcoin miners). The RBA can 'create' additional currency on the blockchain, much like current arrangements of printing money/creating reserves. However, when I transact, my account is not managed by one particular bank, it's simply another entry on the distributed data set. Another transaction is another entry on the Merkle tree...
There are concerns about the size of the data set if every transaction is committed to the ledger, but there are ways around that (sub-networks that manage small transactions and perdiocally commit to the larger ledger is but one proposed solution).
Banks would still exist, as what is 'savings' for you and me doesn't translate to 'reserves' in the RBA sense. However, if each bank acted as one of these 'sub-networks', each hosting nodes for one another, then 'settlement' would be committing these smaller scale transactions to the larger ledger.
It would totally destroy the need for a clearing house.

For me, the one thing that made this take off with a smaller group of people is the same thing limiting it from taking over as a mainstream currency - there is no oversight! It's great if you want to make payments in shady dealings, but the average citizen will move away from that as much as possible.
SOME regulation is required.

 

[galumay]

Fair enough, sit on the sidelines then.

I will, but I am certainly interested in the technology and the potential. If the volatility can be removed and the potential benefits can be translated into reality then it may evolve into an enduring form of currency.

 

[ThingyMajiggy]

I will, but I am certainly interested in the technology and the potential. If the volatility can be removed and the potential benefits can be translated into reality then it may evolve into an enduring form of currency.

It depends what you want, volatility also == opportunity. If you want to sit on a market that's gone sideways for 10 years be my guest, but for the cost of getting into crypto for the potential gains, I think it's crazy not to, but that's just my opinion. As for benefits translating to reality, not sure what you mean? You can swap coins for coins(BTC for ETH and so on) then get BTC back to AUD, more and more places are also accepting crypto as a form of payment, cafe's and shops in Melbourne already are I believe. Then there's VPNs etc. and many places online obviously.

For me, the one thing that made this take off with a smaller group of people is the same thing limiting it from taking over as a mainstream currency - there is no oversight! It's great if you want to make payments in shady dealings, but the average citizen will move away from that as much as possible.
SOME regulation is required.

Some may also see the things you mentioned as a good thing, no rich overseers getting richer and screwing over the economy doing the same thing over and over again(The end of The Big Short comes to mind). Not really sure why that matters anyway, there's been plenty of shady deals done with cash too, the Government just wants us to go plastic because it's easier to follow the trail, that's why it's become easier to pay, less ATMs(+ ATM fees), credit card deals every 5 minutes etc. The people still love cash though.

Anyhow, doesn't matter, you guys can do as you wish, I understand the concern around it. I'm mainly looking at it from a pure trading perspective, and I see opportunity in crypto(there are lots by the way, I'm not referring to Bitcoin).

 

[galumay]

It depends what you want, volatility also == opportunity.

...and risk!

You are right though, we are talking at cross purposes, you are gambling on a speculative online commodity, I was talking about whether bitcoin and the like are really a currency and whether they can become a mainstream mechanism for trading goods and services. The volatility is a massive impediment to them becoming a real currency.

 

[Junior]

Agreed re volatility being an impediment. A lot of my mates are punting big on Cryptos at the moment. They have no experience with investing but have quickly become 'experts'. They are building what they believe to be diversified portfolios of various Alt coins, with Bitcoin considered to be the low risk Core holding of their portfolio. One of my mates is talking about taking out a line of credit against his house to load up on Ethereum.

Epic, epic bubble in my opinion. You can't have price moving from $10 to $250 in 12 months without a serious reversal, regardless of the commodity/asset. Once there's a bit of a correction there will be a huge rush for the exits.

Will be interesting to see how it all plays out.

 

[cryptoman]

Cloak Coin going on a small run this morning... chart looking very good