Welcome to the 6th edition of our crypto roundup, brought to you by HEAT crypto.
Central Banks, Blockchains, and Digital Currencies
It is always weird to see central banks talk about Bitcoin and cryptocurrencies, given the fact that Bitcoin has deep cypherpunk roots and Satoshi introduced the world to Bitcoin through a distrust of the existing government-run monetary system that can have arbitrary supply of money.
However, the Bank of England is never shy to explore new ideas. Now, they are looking for a new research lead into digitizing the pound.
Don't let the 'digital' side mislead you - they are basically exploring issuing the pound on the blockchain. Oh the sweet irony!
One stated reason is to enable smaller institutions and individuals to have access to central bank accounts. In an era of negative interest rates, high bank fees and charges and overall downward trending trust of banks by the millenials and younger generations, this makes sense in a way.
But this seems evolutionary, to Bitcoin's revolutionary change. We'll see how this plays out though. If the central bank starts using "blockchain technology", maybe it will give all the other cryptocurrencies, running on "public blockchains" a better deal with investors and general public adoption. Maybe we will no longer be the crazy misfits anymore.
The Interesting Life of Post-ICO Projects
We all know about ICOs, and how so many of them turn out to be bust after a few months. How do we separate the wheat from the chaff? There is no magic formula of course, and we won't pretend to know the answer, short of peeping into a crystal ball.
However, one indication of a project's success is its usefulness now and in the future. Is it all hype with pretty photoshops and fancy logo, or do the team have a real vision of what will happen with this project 5 years from now?
It is a tough choice. Go back in time - like way back. Mastercoin was one of the hottest ICOs (and one of the first) back in the day. Today, Maidsafe is artificially keeping it alive, but it is nowhere close to what the backers thought it would do. However, NXT, which kept innovating and providing new features, has been one of the most successful ICOs in history for investors from a return of investment perspective.
The idea of usefulness and founders working on real products is a must (even with it, the project can fail of course - see Gems/GetGems as an example).
Take Bitcrystals for example. It is a meta-token on Counterparty, and had its ICO a while ago. It raised money to build Spells of Genesis (SoG), a trading card game. Immediate utility and vision. And the best part, the team actually delivered.
Today, Bitcrystal's price is about 4 times its ICO price. Not a life-changing amount, but shows that slow and steady can win the race.
Hint: HEAT has long-term plans and visions for the business, and immediate utility and use cases too. Check out the HEAT website to learn more!
The investors in the ICO have also reaped handsome benefits.
Light Clients and Future Accessibility of Cryptos
An important consideration for general acceptance of cryptos by the mainstream (relatively speaking. I mean, Bitcoin itself is far from mainstream, and cryptos are an even smaller subset) is the ease of accessibility. This is especially important when you're working with 10-15-50-100 cryptos like a few aficionados do. Installing all the desktop clients is cumbersome and takes up too much time, effort, and hard-drive space (but did you know there's a crypto for that? Maidsafe/Storj/Sia).
ICO Prices and Bounties: Stratis
An ICO project came out of the woods and into the wild, trading on Bittrex this week, which was Stratis. The ICO participants got a nice 4x return already, but of course, the people on the forums still complain.
An interesting thing the team did was not to release all the bounties at the same time, but instead time those out, to reduce sell-pressure. Will this become the new standard? Not sure, wait and watch.