Cryptocurrency News

Bitcoin has outperformed other asset classes in 2020

Fundstrat, a noted market research firm has established that Bitcoin (BTC) has been the top-performing asset class of 2020 to date. Fundstrat took to Twitter to illustrate the growth story and how Bitcoin seems to have done well compared to other asset classes. The growth trends show that it has outperformed others by 19% as BTC had gained 39% at the beginning of 2020.

After Bitcoin as we can see from the illustration above, the 20-year US treasuries rank as the second-best as it has clocked in a growth of 21.1%. Gold also has been seen as a reliable investment with 12.5% growth.  Government bonds and Nasdaq too are in the top 10 list while highly graded US cash and credit funds have only shown 0.5% growth. The other asset classes are currently underperforming.

The post has given a bird’s eye view on the performance of the top 13 asset classes and makes a fair comparison with last year’s growth. Bitcoin like last year has topped the chart for growth and has administered a 12-month gain of 92%. In 2019, Nasdaq was a close second with 35.2% which has not been so promising this year. Back in 2017 also Bitcoin was the best performing asset class with a massive growth of 1550%. 

Bitcoin seemed to suffer a minor setback in the middle of March, but it has also improved since then majorly because of the Bitcoin halving event that is scheduled to take place on 11th May. The halving has expected a hope in people who are stocking up the asset only to drive the prices up north. Bitcoin which crashed earlier this year has already started its recovery by trading at $9,620 currently including itself in the category of fifth-strongest crypto by market cap.

It also can be said that Bitcoin SV (BSV) has seen the biggest gains for 2020. It has taken a huge leap of 115% that is from $98 to $210.5. Tezos (XTZ) has come a close second with a 107.5%% gain with an increase from $1.35 to $2.80. In the third and fourth positions are Ether (ETH) and Stellar (XLM) which have roughly increased by 61%. 

Expectations are rife that halving will put an additional positive impact on the entire journey of Bitcoin.

Image Source – NBC

Andra Capital to Issue SVC via Security Token Offering

Andra Capital, a venture capital firm headquartered in San Francisco, announced to issue Silicon Valley Coin token through an STO (Security Token Offering). With Tezos Blockchain as its core foundation, SVC will make use of TokenSoft’s issuance platform.

Andra Capital’s STO will let investors invest in the funds the traditional way with an option to take SVC, a blockchain-based token as the asset. Touted as the open-ended technology fund, The Fund, in a later stage, is proposed to invest further in privately-owned tech firms. To woo permitted investors across the globe and in the United States, SVC will leverage Tezos blockchain architecture to open investment opportunities.

“The TokenSoft platform provides the technology for qualified retail investors to participate in desirable, late-stage, pre-IPO technology venture companies, and we have partnered with the best-in-class providers including the Tezos Foundation for its expertise in digital securities for the Silicon Valley Coin offering,” said Sam Raman, Andra’s Head of Strategic Partnership

Tezos is a blockchain-backed token supporting smart contracts protocol with features making it ideal for valuable digital assets, security tokens, for example. It sports a formal upgrade mechanism that adopts with emerging technology enabling long-term sustainability. And since some securities have a longer lifespan, issuing it on a blockchain that can be upgraded easily becomes a necessity.

Andra Capital took it to Twitter to break the announce.

Alison Mangiero, President of TQ Tezos said, “We are thrilled to see venture capital firms embrace digital securities, which allow them to easily and compliantly offer global investors access to a historically exclusive asset class.”

“We’ve seen significant demand from issuers seeking to issue on the Tezos blockchain due to its institutional-grade qualities,” said Mason Borda, CEO of TokenSoft.

Initially, SVC will be available for investors in 50+ countries including U.S. Both TokenSoft and Tezos are extending their support to make the STO successful and easily feasible.

India – Now you too have a Local Tezos Baker

YieldWallet has become the first provider in India to accept Tezos delegations to their Baking service. YieldWallet’s Tezos Baker is starting off with with an enticing offer: 0% fees until 31st March 2020, going back to 8% thereafter.

Having gone through an extensive Testing period over a few weeks, Indra Crypto Capital, the parent company of YieldWallet, made the announcement recently. For the uninitiated, Tezos is a blockchain similar to Bitcoin or Ethereum. However, block creation and validation is performed by bakers and not miners. The right to form a block is also not determined by proof-of-work or proof-of-stake.

Bakers earn the right to bake (create a block) when tokens they own (or delegated to them) are selected randomly. They then get to bake a block and earn the Tezos reward. Although this is a good way to earn an income, not everyone who owns the Tezos token will want to be a baker due to high financial (need to own atleast $12K worth of XTZ at today’s prices) and technical barriers. This is where a provider like YieldWallet comes in and provides an option for owners of Tezos to “delegate” their tokens to them and earn rewards (currently 7% yield annually).

Baking requires one to have sufficient resources such as high-availability servers, stable internet connections and tech support personnel. Additionally, bakers have to ensure security against DDOS attack, protect their own keys, and mitigate any intrusion. YieldWallet will charge a 8% fee for providing this service (currently the fee is set to 0% on a promotional offer till Mar 2020).

The bakers also have to maintain a 8.25% (minimum) ratio between their bond and what is delegated to them. The larger the amount the more opportunities they will be given to bake or endorse blocks. This requires a company with sound financials to act as a baker. Indra Crypto Capital has the financial backing to provide this support.

Tezos holders in India did not have any reliable baker based locally until now. YieldWallet is backed by an experienced team of entrepreneurs, product managers, marketers, tech support, and customer support personnel. The company has also announced that they will contribute a portion of earned rewards to the development and growth of the Tezos ecosystem. So, if you’re a Tezos holder, then you should love delegating to YieldWallet.

The YieldWallet baking delegation address is: tz1Q8QkSBS63ZQnH3fBTiAMPes9R666Rn6Sc

There are no minimums. You can delegate as little as 1 XTZ. Find out more about their service and also how to buy and delegate at YieldWallet.io/tezos

The Road to India Dapp Fest 2019 – Meet Tezos

With a few weeks from Asia’s first ever Blockchain based distributed applications event – India Dapp Fest 2019, the organizers Blockchained India have lined up one of the most popular faces in the decentralized application fields –  Tezos.

Tezos, a platform developed especially for smart contracts and decentralized applications will be the last leg of meetups to the much awaited Blockchain event in Bangalore.

Tezos – Future Innovations Through Blockchain Governance

Tezos evolves by self amending and upgrading itself, with stakeholders voting on amendments to social consensus. It helps decentralized the aspect of a platform which supports the important smart contracts and a platform to build decentralized applications.

Tezos broke into eyes of Blockchain enthusiasts with the successful Initial Coin Offering (ICO) of $232 million, and successfully launching in September 2018.

With self amendments, the Blockchain is able to upgrade without the hassle of a hard fork, which can prove to be pretty notorious in nature given the history. The additional factor of on-chain governance leads to voting over a proposed amendment hence leading to a smooth Blockchain evolution.

What to Watch out For

The Tezos event is at NASSCOM Startup Warehouse in the heart of Digital India, Bangalore. It starts at 4.30 PM on the 18th of May, on Saturday. Akshay Agarwal, the County head and Co-Founder of Blockchained India will kickstart the meetup of an introduction what Blockchained India is all about. Don’t miss out on the next few talks from Tezo’s team members.  Amer Justice, the Senior Project Manager of Tezos Commons Foundation, will bring forth Tezos in a more understandable manner.

It is followed by an interesting use case of decentralizing insurance on Tezos by Bernd Oostrum, who is the CEO and Co-Founder of Tezsure. Tezsure is a decentralized insurance marketplace, which is powered through Artificial Intelligence and the Tezos Blockchain.

Don’t miss out on the panel discussion on the state of smart contracts and Blockchain which will be moderated by Akshay Agarwal, with the panel consisting of Gokul Alex, Bernd Oostrum and Sunil Aggarwal.

Check out more about Tezo’s first meetup in India in the official Facebook event page.

India Dapp Fest will be held at The LaLiT Ashok Bangalore from the 11th to the 15th June 2019.

Tezos – A Sleeping Giant?

Tezos is a blockchain formed with the aim of creating a digital commonwealth, a community with shared goals and interests which has finally launched after months of delays.

Tezos holders will make decisions and govern the blockchain together by voting in new protocols. It’s similar to Ethereum in that it’s a smart contract platform, but it contains key feature differences like formal verification, a built-in governance system, and the Delegated proof of Stake consensus mechanism.

Interestingly, the network doesn’t have to fork to upgrade, which is arguably unique to Tezos, something that could prevent civil war-esque situations like the one which divided the Bitcoin community recently.

People can make suggestions for protocol upgrades which can then be voted on by the entire community and then either ignored or adopted, putting more power in the hands of the community.

The idea here is to foster evolution and development without the need for a hard fork. Proposed amendments accepted by stakeholders can include payment for individuals or groups that include the protocol, which means that community developers could actually get paid for working on the network in a decentralized way, incentivizing them to make continuous improvements.

Formal Verification

This is a security measure which mathematically proves properties about programs like smart contracts, which can help avoid costly bugs and related issues.

Delegated/Liquid Proof of Stake

So, with Proof of Work we have miners solving cryptographic puzzles in order to verify new blocks of transactions and enter them into the blockchain. This is an extremely expensive and energy-hungry process, but when a network is big enough it’s also very expensive to attack. Some people argue that PoW will lead to centralization over time due to the increased difficulty of mining transforming it into a specialist field where only major operations with expensive mining hardware can compete.

Proof of stake, on the other hand, is far more environmentally friendly. To participate, validators (not miners) stake a certain amount of cryptocurrency – the higher the stake, the higher the chance of being selected, and the selection is performed pseudo-randomly.

If selected, they then validate blocks, with the understanding that their stake and their transaction rewards will be lost if they attempt bad practice. Arguably this is more centralized than a PoW network in its infancy, but less centralized than an advanced PoW network ran by high-end mining operations.

Delegated Proof of Stake, on the other hand, takes this concept a step further.

It’s similar to proof of stake – however, instead of randomized selection based on stake size and other factors, bakers are voted in by the community. In fact, Tezos’ form of consensus is an even more bespoke form of DPoS called ‘Liquid Proof of Stake”.

Token holders stake their tokens and approve transactions (this time they’re called bakers!). With Tezos, the bakers must have a 10,000 token stake as well as a bond (a security deposit). Again, dishonest action will result in the deposit being lost, while the reward is 5% of the stake a year.

So, it’s a smart contract/DApp platform with on-chain governance and self-amending capabilities that bypass contentious hard forks.

Sounds good, right? So why the long wait?

Lawsuits and Controversies

Ah.

Founders Kathleen and Arthur Breitman had a major falling out with Johannes Gevers, the head of the Tezos Foundation, regarding who would be in control of the project. Supposedly it was legally necessary to appoint an independent party as foundation head under Swiss law, but when they appointed their former acquaintance Gevers the Breitmans found that he was more interested in a power grab than playing ball, according to them.

Tezos then experienced significant delays over legal disputes between the founders and various parties. it was claimed that Tezos was violating US securities law by selling unregistered securities, for example.

Distributed Ledger Systems (DLS) sued over the intellectual property rights after receiving seed capital from Tim Draper in exchange for a 10% stake. DLS retained property rights over the source code, with the plan being that the Breitmans would set up an official foundation and buy out DLS along with the IP rights.

Part of the ICO contract stated that the Breitmans and Draper were due 8.5% of all ICO funds and 10% of circulating currency, but this became a source of conflict between the project and DLS.

KYC

Remember the lawsuit over securities? Yeah, so did the SEC and Tezos, the latter of which either opted or was forced to suddenly introduce KYC measures, something which never goes down well in any community, especially in Tezos’ case when the ICO was already a year old.

“During the Tezos Foundation’s donation period in July 2017, there was no blockchain ecosystem or industry consensus on this subject. As the blockchain ecosystem and industry has matured over the past ten months, it has become a best practice to verify that contributors meet basic KYC/AML criteria.”

Sleeping Giant

Here’s the thing about Tezos – it actually has a really strong use case. That’s not to say that it’s guaranteed to be a success in the highly volatile and unpredictable world of cryptocurrencies, but it certainly has a lot of the groundwork laid out and was actually due to launch months ago before all the legal issues set things back. The mainnet launched on September 20, and now the question on everyone’s minds is, can Tezos actually compete with Ethereum? Is the low profile of the project actually a blessing in disguise for investors who missed the boat on the world’s first DApp development platform?

It could well be the case that Tezos is about to explode onto the crypto scene and start developing new applications along with a financially incentivized community of developers who will work tirelessly to constantly update the network as per the wishes of the userbase without ever needing to fork, something that could revolutionize blockchain networks as well as DApp development.

Of course, as always, it’s also possible that nothing will come of it and Cardano or EOS will take its place, or that Ethereum will scale before any of the newcomers make it out of the gate and reign supreme over DApp development for a thousand years.

You never know with crypto/blockchain projects, but one thing is for certain – with the genuinely innovative and groundbreaking features Tezos has implemented, building and potentially even improving upon predecessors like Ethereum, the project could well be one of crypto’s sleeping giants, and is definitely worth keeping an eye on.

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