Crypto enthusiast, dedicated student and educator of blockchain and how this is the next big leap in our evolution of life. - Contributor for Hacker Noon
Blogger, Crypto enthusiast
Masters in Crypto
Answers by CryptoJayson
How can we limit the China Effect?
Your question is difficult to answer for a number of reasons. However, the effect of China is felt primarily due to the small market cap. In a handful of years, the market cap (in theory) will grow, resulting in a more stable market less susceptible to news/changes like this. Now, the price has already rebounded that means the emotional reaction has passed. The real answer would be for coin holders to not be so emotional or fearful of a potential price drop. Being a market that is as speculative as it is today, we have a number of years to go.
With that all said, once adoption grows even a major market like China placing a ban (while still have impact) will have much less effect. Example: Soft Cheese. China has banned this recently as well. While import/exporting for soft cheese has impacted this industry, the panic is not near as strong as it is a industry not speculative in nature. It impacted them, but no one is panicking that soft cheese is going to crash.
What happens when any of the nodes aren't active in a blockchain? How does the validation system work or how much time does it take then?
If all nodes go off line, then the platform is down and thus no transactions can be completed. However, that is unlikely for a working and supported coin. If a single or a small subset of nodes go off line, then no change occurs. The time it takes for validation depends on the difficulty level of the network, the capability of the network and finally the amount of hash power from the miner.
Today ( Oct 10, 2017), Bitcoin went from around 4750 to 4250 for a few minutes and then just came back up. Is there any particular reason for that or it's just normal behaviour?
This is not normal. While possible, in this case it seems the flash crash is more than likely an error. In watching market history on all exchanges, no crash can be seen. The report states that the flash crash was seen on CoinDesk which is not an exchange, rather an index that complies the moving averages from major exchanges. Reviewing their website now, the crash cannot be seen. I would say it is safe to assume an error more than likely occurred on how CoinDesk complies the moving averages. Coinmarketcap, another index never reported any type of flash crash.
How do I find genuine investment platforms on Bitcoins that has good returns
This is a rather complex and great question. Investment platforms in the crypto space are still very immature. At this point, I have personally avoided these as regulations are still not defined. As an example of this in the US, the SEC denied the Winklevoss' ETF. The Winklevoss' have since appealed this decision, however to date, a final decision has not been made. My main point being, while there may be viable investment platforms in the crypto space, very few (if any) have the same approvals of investment platforms for stocks/bonds etc. I would highly recommend you perform deep research on any firm offering these services and look for their performance on investments in other markets. Anyone sharing a recommendation on these today, I would be even more cautious in trusting.
How many tokens should issue as part of my platform? Any good methods that i can use to calculate the supply?
Being honest, it sounds like you have a ton of research to perform prior to even thinking of moving to ICO. To help you, I would say that you first need to determine the use of your token. Next would be the type of token, typically token types can be categorized at Debt, Equity or User tokens. From there, decisions should be a bit easier for you. There is no real 'rule' however if the token is one that is to be used often and by many, token liquidity will be paramount. One would not want token holders to limit your platforms ability to function. A great example of a platform with a large amount of tokens (but for good reason) is Ripple. While yes, that many tokens may be excessive, if Ripple is successful in accomplishing their business plan - those token amounts are critical for longevity of their platform. Especially considering that each transaction performed actually destroys a small amount of tokens.
What differentiates a blockchain from a normal database? What is the "oh wow" incentive to use decentralized DLT instead of just a normal database, e.g. SQL database? Is private DLT = normal database?
Great answer by ZT. If you are curious on what companies are looking into blockchain, checkout https://entethalliance.org. You can see the list of companies working together on blockchain projects. There are many with Microsoft being one of the major players among many others. Microsoft is interesting with their Azure project. Reading into that is super fascinating.
What criteria do you use to evaluate an ICO investment?
I categorize ICO's into 3 main points to review.
1) Problem they are solving - if in a space that has competition what makes them unique. If new, does the white paper detail realistic solutions or is it too 'pie in the sky'.
2) Marketing Plan- Even the best ideas and projects will fail with no marketing plan properly laid out. The marketing team/plan needs to be well executed and active in the community they are targeting
3) Team background. Being as new as blockchain is, I expect people from all walks of life joining in. However, who they partner with for developers, advisors etc is critical.
Outside of those 3 main points; website design, whitepaper, social media accounts and willingness to interact with the community are indicators of a solid team.
How will BTG (Bitcoin Gold) hard fork affect the bitcoin price and what affect it will have on an cyptocurrency investor's portfolio?
I see this question in parts. The first being the impact to BTC price. From a short term perspective, one can see the strong rise over the last few days. BTC is now at $5700, due in large part from investors buying BTC to get the 1:1 BTG upon the fork. Long term for BTC, that is difficult to say. Following the trend from the Bitcoin Cash fork in August, one can assume that some sort of sell off will occur post fork - to what level is hard to guess.
The second part is what affect to the investors wallet. BTC holders that have their coins stored in a wallet that supports BTG will receive the same amount of coins in a 1:1 ratio. The price of BTG and long term possibilities of BTG is even more difficult to see than the Bitcoin Cash. To date, no major exchanges (that I could find) have verified have announced support for Bitcoin Gold trading - there are plenty of rumors/assumptions but no official announcements that I can locate. With Bitcoin Gold without a working website, that adds to my confusion/concern as well. Bitcoin Cash, as much as we can say what we like, was a bit more transparent than Bitcoin Gold at this point.
Where to look for expert counseling for blockchain implementations?
I am sure enough of us here would like to claim that title, however it truly depends on the type of counseling you are looking for. LinkedIn might be a good start and never underestimate the power of contacting team members on current or past ICO's - a friend of mine launching and ICO was able to build a nice network from just that. Being a rather small(ish) community, many love to help/share knowledge with others.
*an ICO* - too quick on the typing.
Please tell me your favorite resources for learning technical analysis for crypto currencies!
I spent a good amount of time on babypips.com and then following folks on tradingview.com. I would then take the TA shared by those on tradingview and recreate my charts to understand how and what they were doing. Had a ton of saved imagines on indicators to refer too as I was performing my TA, most of the imagines I found from searching Google images.
what percentage of your portfolio do you keep on exchanges?
My recommendarion is none at if possible. With the amount of phising and security breaches targeting exchanges keeping any amount on a live wallet is dangerous. If day trading, I would recommend you only keep enough for what you will be actively trading on that specific day. Hard wallets or even paper wallets would be the preferred storage for any and all cryptocurrencies IMHO.
What's the right time to buy Bitcoin. I want to be like "Buy and Forget" i.e. I want to keep it for a long term investment.
The 'right time to buy' should be determined by you. At the rate Bitcoin is growing, one could see long term continued growth, even above today's current price. With that said, many experts providing trend analysis have released information that shows a bearish and bullish trend. My recommendation to you would be to review both arguments and proceed from there. Possible short term impacts to watch for would be the pending hard fork and the impact to price once that wave has finished. While my answer is vague and nebulous, I do so to encourage investors to do their due dillegence in research and make decisions they are comfortable with.
What is holding back institutional acceptance of blockchain technology?
My view on the acceptance of blockchain technology is a bit different. In my view and research, institutional acceptance of blockchain is here. One can look at the Enterprise Ethereum Alliance as an example, another example would be the R3 Consortium and the upcoming wireless consortium Softbank is attempting to create. Outside of payment processing, P2P exchanges and cryptocurrencies (and their corresponding wallets), there are no actual working blockchain products/services - mainly due to the fact that (from my research) no platform (private or public) can handle the amount of transactions requried to maintain the network - this will change, and soon. Visa/Mastercard, Microsoft, IBM, Intel, BP, Tesla, a growing number of countries and a large number of other corporations small and large are working on development of these - they are just not as well known to the crypto world as there are no cryptocurrencies that related to them. IMHO, we tie blockchain acceptance to the acceptance of cryptocurrency. When in reality, these two can be separated.
What do u guys think of Helptap/Quora like platform running on blockchain?
Ironicly, I posted a blog this very subject. IMHO, decentralized P2P knowledge share/education has huge potential. One that I also firmly believe could huge widely successful ICO followed nearly immediately by fully running and fully functional products/services. You can read my opinion piece at the link below. Let me know your thoughts!
I'm working on a piece for top Bitcoin publications on the upcoming hard fork. Just eager to hear what you support: bitcoin core or bitcoin unlimited and why? Would love to quote :)
Consistent debates and hard forks of the Bitcoin Blockchain is indicative of one massive trend: Mass adoption is coming. Popularity of Bitcoin is growing. As it does, the scaling debate will continue. Each provide their pros and cons, the real question is what is the intent or purpose of each fork. This most recent hard fork has the spellings more of greed than of actual purpose or need - a tale all too familiar in the crypto world. Bitcoin Blockchain needs to scale and advance, that we know - developers are best to start working as one and end the arguing or we risk flooding the market with thousands of Bitcoins confusing the new-to-crypto user and risking mass adoption. In my opinion, the door for another coin to overtake Bitcoin increases with each fork.
I have a friend the just purchase his first Bitcoin and he doesn't have a Ledger wallet yet. What wallets support Bitcoin gold so he doesn't miss out of the free bitcoin gold?
Currently, Guarda is the only wallet listed on BTG's website. However, any secure wallet that provides you with cryptographic keys should be fine. I would have him/her stay close to BTG's website for wallets that our officially endorsed. www.btcgpu.org
How do I set up a crypto wallet?
Hi Austin- I would highly recommend looking into a hardware wallet like Trezor or Ledger. You can read more about them in the review posted here https://99bitcoins.com/trezor-vs-ledger-hands-hardware-wallets-review/.
Hi guys and gals, what crypto currency exchange can you advise me for my crypto trading?
Adding to the previous answer, once FIAT has been exchanged to crypto, Bittrex has been a solid exchange for alt-coins. Large selection for you with rare outages. Account verification has been a bit of a challenge for some, however most have had good experiences.
Is there a max cap in a Pre-ICO? If during the pre-ico the specified no. of tokens are not all sold and the pre ico has ended.what will happen to all those coins that were not sold during the pre-ico
This varies from ICO to ICO, there is no set standard each project needs to follow. With that in mind, ICO's do set a cap (again the amount will vary) for pre-sales (or pre-ICO). Once pre-sale period has ended, the majority will roll unsold tokens into the general crowd sale. However, some could burn the tokens if they decided too. Short answer is, all of this varies based on the project and the teams decisions set prior to moving forward with the ICO. All will announce and communicate how their ICO will be handled, usually found in their white paper, prior to commencing. This includes dates of ICO, bonuses for each phase as well as cost per token.
What regulations should i need to be aware of if a user wants to cash out his token through the exchange? Eg if a user is in Singapore, and he has a digital token he wants to cash out through an excha
From a regulations stand point, that transaction would be the responsibility of the exchange not the token (or in this case you). Provided you have done your due diligence prior to ICO launch all regulatory concerns should have been addressed and handled. Main points being how ICO is run with KYC and determination if your coin can be considered a security. A knowledgable (or multiple) lawyer(s) familiar with international security and Cryptocurrency regulations and laws would be a wise investment.
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