March 22, 2019

Reader’s Digest Week 12 2019

You can soon buy a more useful version of the HTC blockchain phone for cash

Born out of the 2017 bear-market phone maker decided to build a blockchain’ phone. During the course of 2019 a phone with blockchain enabled features might finally become more useful. Just in time after Samsung loading their phones with hardware wallets.

How to achieve the same results of a professional bitcoin trader without taking the inherent risks

I swing-trade a little, mostly for fun on bitmex. Trading is extremely risky, even more so with cryptoassets and on margin. Longterm the best investment strategy is cost-averaging your position. Twitter CEO, Jack Dorsey, buys $10.000 worth of Bitcoin each week. For starters $10.00 will do!

Bitcoin Has Saved My Family

An amazing story of sound money and how it can save lifes in hyper-inflated economies.

Evaluating MKR

Ethereum based Project MakerDAO with its stablecoin project DAI has been in the news a lot lately, mainly because it’s a success and failure at the same time. There are now more than $200 Million worth of ETH locked up in DAI CDPs. At the same time, DAI has been everything but stable and worth as little as $0,92 to the Dollar. Above article brings light into the value of the underlying token MKR.

Suspicious behavior on Kraken exemplifies the gap between crypto and legacy market structure

I’ve used Kraken a lot, especially for trading as it’s the cheapest platform to trade FIAT<->Crypto in Germany that I know of. Naively, I believed Kraken to be an exchange free of internal manipulation. The Block corrected my believe.

Saving fee markets with second-price auctions

One of the biggest remaining questions with Bitcoin, as the BIS has pointed out, is the fee market for transactions once block-rewards are halved to insignificance. The Block reports some possible solutions.

Schnorr Signatures & The Inevitability of Privacy in Bitcoin

A must-read article for all Bitcoin freaks. The dev-team behind Bitcoin is working on headache-inducing cryptography that is an evolutionary step for Bitcoin but could rectify two of the greatest shortcomings’ of the young currency: privacy & tragedy of the commons. Definitely read until the end.

I Tested the Saving Technique That Promises Retirement at 40

A fun little excursion into the lives and habits of extreme savers. Very disciplined, but nothing I aspire to live by anytime soon.

Weekly Readers Digest
March 11, 2019

BlockFi Crypto Interest Account goes live today

The crypto lending platform BlockFi is going live with their interest accounts for Bitcoin and Ethereum. BTC or ETH loaned BlockFi will generate a 6.2% APR, with the collateral being custodied by the Wikelvoss owned and NY-State regulated Gemini exchange. The BlockFi interest account is available worldwide and interest is paid in crypto.

This offer looks to be a great example for the innovative products available for crypto-assets. It’s a very much needed first-step towards making crypto the new normal. While interest is only available for a minimum collateral of 1 BTC or 25 ETH an interest paying saving account is what will drive adoption in the real world. While bank accounts in Germany charge negative interest for savings great than, savers around the world are looking for opportunities to lock their cash and secure against central bank inflation targets of 2-5%.

While BlockFi delivers a seemingly great product there are many questions left regarding the security of the collateral. BlockFi after all is a start-up operating in a high risk market (crypto & lending). It has yet to be made clear, what happens to the collateral if BlockFi’s loan business goes bad or the volatility of Bitcoin outmatches BlockFi’s risk management systems and the collateral is used for a margin call. Lastly, as Gemini is the custodian of the Bitcoin you’re exposed to the exchange risk, where a hack of Gemini will leave you without your private keys but empty wallets.

Having said that the risk are not entirely clear yet, I applaud BlockFi for bringing interest bearing crypto accounts to market. Whether or not they deserve the name of savings accounts is a question to be explored. Invest wisely!