Millennials should Invest in Bitcoin advises billionaire Tim Draper View in browser

“Bitcoin is incredibly stable. What fluctuates and explains the price volatility is the seething masses of humanity rushing in and out. More in than out over time.” - Dan Hedl, Director Of Business Development at Kraken
Market State

Over the last week the cryptocurrency market gained another $18 billion in value and approaching $260 billion. Bitcoin was up by 7% since last week and is trading above $9000. Ether has gained 5% over the course of the week and is standing at $176. A new challenge has been officially launched by Joseph Lubin, co-founder of Ethereum and blockchain software company ConsenSys that is to get one million developers to build on Ethereum by Devcon 6 this year, the annual conference for Ethereum developers. 

The World Economic Forum's (WEF) 50th annual meeting was held in Davos, Switzerland last week. During the meeting it has become clear that there is an increased interest in central bank digital currency (CBDC). Many central banks around the world are already independently exploring and developing their own digital currency in the wake of Facebook’s Libra stablecoin and China announcing their digital yuan. WEF itself has developed “Central Bank Digital Currency Policy-Maker Toolkit” which is a step by step evaluation process including the benefits and challenges of digital currency.

Also a recent survey from the Bank for International Settlements (BIS) revealed that one in 10 central banks surveyed in 2019 said it was likely to offer digital currencies within the next 3 years, covering about 20% of the world’s population. According to the BIS if the 3 year time horizon was stretched to 6 years the number of central banks to issue digital currency would double. CBDCs are good for the cryptocurrency industry because they bring awareness to the alternative economic system that cryptocurrencies have to offer.

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Quiz of the week

How many new Ethers are created per block?

  1. 5 Ether
  2. 3 Ether
  3. 2 Ether

Scroll down to see the answer at the end of the newsletter.
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Top stories of the week
Central Banks Are Collaborating On Digital Currency Research

On the 21st of January, 2020, Central Bank of Europe has announced that it has formed a group with five other central banks including the Bank of Canada, the Bank of England, the Bank of Japan, the Sveriges Riksbank and the Swiss National Bank along with the “bank for central banks”, the Bank for International Settlements (BIS) to explore the potential cases for central bank digital currency (CBDC). The group will look into Central Bank Digital Currency use cases; economic, functional and technical design choices, including cross-border interoperability. The central banks of Canada, European Union, Japan, Sweden and Switzerland are already exploring and developing their own digital currency. Also the World Economic Forum (WEF), an international organization committed to improving the state of the world, has created framework for CBDCs and published it on the 22nd of January. The 28 page framework titled, Central Bank Digital Currency Policy-Maker Toolkit developed by a community of over 40 central banks, international organizations, academic researchers and financial institutions. The toolkit is designed to help central banks to decide whether CBDC is right for them and examines the costs and benefits as well as risks and governance strategies for CBDC deployment.
Japan to Issue its Own Central Bank Digital Currency

Japan has joined the race to create its own central bank digital currency (CBDC). In February 2019 the Bank of Japan published a working paper outlining the benefits and consequences of issuing a CBDC and how one would function in Japan’s current financial system. On the 23rd of January, 2020 Norihiro Nakayama, Japan’s Parliamentary Vice Minister for Foreign Affairs told the Reuters news agency that a group of 70 lawmakers is working on to create a digital version of the yen. The working group is led by former Minister of the Economy, Akira Amari and plans to put forward its proposal in February 2020. The initiative would be a joint effort between the government and private companies based in Japan. Japanese lawmakers have expressed their concerns over China to use its digital yuan as a settlement currency in emerging economies. Nakayama said “China is moving toward issuing digital yuan, so we’d like to propose measures to counter such attempts.” The Bank of Japan (BoJ) will not restrict private sector innovation. A former BoJ board member Takahide Kiuchi said "the best way could be to issue a hybrid-type digital currency that is operated and issued by private firms, with the central bank’s involvement.
Millennials Should Invest in Bitcoin Advises Billionaire Tim Draper

In a recent interview with FOX Business, an American tech investor Tim Draper, was asked to give his best advice to the Millenials. He said “Bitcoin is the place to invest your money if you're a millennial.” Draper is an early investor in quite a few tech giants including Tesla, SpaceX, Twitter, Hotmail, Baidu, Skype and he also invested in Bitcoin. He said “You look at Bitcoin and you say 'Hey, this is great because it's not my father's Oldsmobile. Our banking system is the Oldsmobile, is the old Oldsmobile.’” He blamed the banking system for putting Millennials into hundreds of thousands of dollars of debt. Draper believes if the Millenials wish to invest enough capital for their retirement they should get into Bitcoin. He also said “The future is not going to be tribal anymore. It's going to be global. It's not going to be tied to geographic borders. It's going to be open and the easiest way to participate in the global economic system is to be able to move freely and move capital and goods freely throughout the world.”



Tether Launched Gold-Backed Stablecoin on Ethereum and Tron

Tether Limited, the company behind the USDT stablecoin has announced their new product Tether Gold (XAU₮), a token backed by physical gold issued on Ethereum as ERC-20 token and Tron as TRC-20 token. Holding one Tether Gold token is equivalent to owning one troy fine ounce (31,1034768 gramm) of physical gold, which is currently worth about $1580. The tokens have been issued by the TG Commodities Limited, which has direct control over the physical gold storage. According to Tether's statement the physical gold is held in a vault somewhere Switzerland and investors won’t be charged a storage fee. Paolo Ardoino, CTO of Tether said “Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways, such as high storage costs and restricted access.” According to the token’s Ethereum contract address there are in total 4000 Tether Gold tokens issued, which is equivalent to a $6.2 million market capitalization. Investors can also look up a token’s Ethereum address to identify specifically which bar the token is backed by. However, there is no insurance on the Tether Gold which puts investors at risk in the event something happens to the gold. The Tether is one of the most controversial projects in the cryptocurrency industry. Though Tether claimed that it is 1:1 backed by US dollar it has been revealed that it is only 74% backed.

Crypto Forefather David Chaum Issues New Privacy Token, xx Token


One of the earliest blockchain researchers and a world-renowned cryptographer known as the “father of online privacy” David Chaum’s xx network has launched its xx coin token sale. The token sale is open to non US persons and started on the 23rd of January, 2020 and will close on the 19th of February, 2020. David Chaum has invented many cryptographic protocols. He is famous for creating the first digital currency, eCash, in the early 1980s and later founded DigiCash, an electronic money corporation in the 1990s. David Chaum also founded the xx network, which combines his decades of research and contributions in the field of cryptography and privacy. The xx network is a combination of two projects, Elixxir and Praxxis. Elixxir is a decentralized messaging application that erases user metadata to prevent observers from making the connection between sender and receiver while providing end-to-end encryption of message. Praxxis is a next generation blockchain technology and currency, which is quantum resistant (that is secure against an attack by a quantum computer). The xx network will support decentralized messaging, payments, and dApps and the xx coin will be part of the decentralized ecosystem of the xx network.
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Quiz answer

How many new Ethers are created per block?

The correct answer is “C”.

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Have a great day!

Cheers, 
MrCoin
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MrCoin

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