Market Crash, Bitcoin Cash Holy War | Hodler’s Digest

Is this the end times? It sure seems that way, with the Bitcoin Cash
holy war, profits drying up for miners and an almighty apocalyptic market crash; it is
hard to see sometimes light through the darkness. But please, hodlers, do not lose faith, wise
sages foresaw this self off and told us not to panic. Like technical expert Willy Woo of Woobull,
who said the bear market would continue till Q2 2019, and Mike Novogratz who warned Bitcoin
would not break $10K this year. Also this week #metoo and crypto, crypto and
religion, the IMF loves CBDC’s, and the battle for Bitcoin Cash. Ladies and gentlemen, here is your weekly
Hodler’s Digest! For the first time since October last year,
Bitcoin’s market cap fell below $100 billion, breaking the recent trend of low volatility. In just 12 hours, the total market cap fell
from around $210 billion to $180 billion. Almost all major cryptos, including Ethereum,
XRP, and Bitcoin Cash were similarly affected, posting double-digit losses. Following the heavy depreciation of Ether,
XRP became the number 2 crypto. Though still too early to identify the cause
of the market crash, many immediately linked it to the uncertainty surrounding Bitcoin
Cash’s hard fork scheduled for November 15. From its inception, crypto and blockchain
were believed to be a means to bank the unbanked and change the world for the better. One overlooked, perhaps, invisible group of
the so-called unbanked are women; particularly those in abusive relationships or survivors
of sexual assault. In developing economies and even in some developed
ones, it is often the men who control the finances, depriving the women of financial
agency. Well, an unexpected use case for crypto and
blockchain appears to be helping women enjoy financial independence. In China, a previously suppressed story of
historical sexual abuse was uploaded onto the blockchain as a way of circumventing the
Chinese government’s censorship. In Afghanistan, a woman was able to support
herself using Bitcoin during a difficult divorce. Sex workers, the majority of whom are women,
can find themselves in precarious financial situations because banks can often refuse
them everything from checking accounts to mortgages; a decision not based on income,
but instead on dubious moral grounds. More recently, a sexual assault survivor was
able to use innovative crowdfunding to support herself while recovering from an attack. When most people think crowdfunding, they
think Kickstarter, which is great for raising funds for healthcare, but not so good if you
need anonymity. Well, now there is a token-based system on
the Ethereum network that allows survivors to post requests for help, which doesn’t
require a government I.D or a bank account to raise money–only the organization who
runs the scheme needs to know the survivors’ identity. We spoke to Rachel Cook, CEO of Seeds, about
the project and more broadly how it relates to the #metoo movement. Women in those situations, people in those
situations who are being exploited often feel that they have to stay, because they need
the money, because they have to pay for their kids or whatever their bills are they have
to take care of. So the extension of that I saw was OK we need
to start creating opportunities to make it very easy and anonymous if necessary for people
to get funds, when they’re in those circumstances. And the current system the non-cryptos system
makes it often very difficult to do that. Even if we’re going to nonprofit or whatever
there just all of these hurdles we want to make it super simple and super easy to access
help and blockchain can obviously facilitate that in ways that other stuff can’t. One of the requests for help we granted was
for a guy in South Sudan who wanted 500 dollars to open up a small business. And that guy’s network we can assume isn’t
it he’s can be a source very much money. If he had like a go fund me or something. So it’s it it’s sort of like a distributed
Go Fund Me that allows you to reach people that when otherwise see your requests. I discovered crypto in 2013 so it wasn’t like
I was crazy earlier or anything but I mean Bitcoin that I bought in 2013 I had to sell
later to pay employees when investors were ignoring me in large part I think because
of gender discrimination within the VC world. So I’m also solving a problem for myself which
is that it’s been way harder for me to get the funds I needed to do the things I wanted
to do than many of my male like peers. People were really afraid of like being attacked
if they spoke up. I’ve been so disheartened so many times that
I just didn’t have any hope. So it was really encouraging astonishing really
to see like thay #metoo happened. So yeah man there are real shifts happening
that I couldn’t believe that I didn’t believe that I would necessarily see at least not
for a longer period of time. Ethereum-based stablecoin X8, issued by Swiss
crypto firm X8 AG, was recently declared compliant with Sharia Law. The Shariah Review Bureau, a Qatari consultancy
and audit firm specialized in sharia advisory services, issued the certificate of compliance. Crypto trading has been often associated with
sheer monetary speculation, which is forbidden by Islamic law. However, X8’s crypto asset, which is backed
by eight fiat currencies and gold, proved it can be trusted by Islamic investors. X8 AG is now planning to launch a crypto exchange
that will include a Sharia-compliant trading platform. We talked to Mansoor Ahmed, representative
of the Shariah Review Bureau, to clarify the issue. The first thing is to understand the structure
of the platform its protocol and the native currency and how it gets issued. Once the structure has been understood, then
the next level is to review the t&c, the terms and conditions, based on which the coins or
the tokens are going to be exchanged, transferred or sold. Without those t&c there is no Sharia compliance. If a certain coin is linked to any activity,
an underlying activity, which is involved in interest-based lending or are involved
in the production and manufacturing of ammunition or pornography. Then those coins would not be considered as
Sharia compliant. The world’s religions such as Islam, Christianity,
and Judaism have maintained a cautious and often skeptical position on cryptocurrencies
mainly because of their highly speculative nature and shady reputation. However these very same religious organizations
have shady reputations of their own. The Catholic Church, for example, was guilty
of institutionalized anti-Semitism in medieval Europe and beyond for exploiting anti-usury
laws by limiting Jews to money lending and effectively creating a mercantile class. The tax-free status of religious organizations
gives the impression that they are not financially savvy entities, but this couldn’t be further
from the truth. Like any kind of organization, religious ones
have revenue streams and complex investment portfolios. But what are their attitudes toward crypto
in general? In Jewish law, Bitcoin currently doesn’t
have the status of currency, but it does have monetary value. We spoke to Rabbi Sherpin to explore Judaism’s
attitude towards crypto. If cryptocurrency is the common currency used
in an official or even unofficial way in a country or in a municipality or whatever it
is then it becomes a currency. But until that happens it would not be considered
a currency it would be a commodity just like any other foreign currencies somewhere else
is a commodity it’s not a currency. I think that is a very important lesson that
the whole cryptocurrency teaches which is not really just about cryptocurrencies all
currencies but crypto is really where it drives home that point that we really have to be
looking for things that have intrinsic value to them not just things that are. Made up value. Doing something positive in the world doing
things positive with people around you in your neighborhood and your community. And you yourself will recognize that it has
value something positive and you impacted somebody’s life for perhaps generations to
come. And that has intrinsic value while the money
you know today is here, tomorrow it’s gone tomorrow it might be back but it doesn’t have
any lasting value. Last year, the Buddhist organization “Lotos
Network” launched a cryptocurrency based on the principles of the Buddhist economy. The Catholic Herald came out last year actually
defending crypto, arguing that it shouldn’t be dismissed simply because it’s a new technology. The Vatican actually flirted with the idea
of launching a crypto of their own but it never materialized; more recently, however,
the Pope actually condemned Bitcoin for its use in the modern slave trade. We spoke to God’s Bankers author Gerald
Posner about the fascinating financial history of the Vatican. The Vatican uses its financial apparatus mainly
the Vatican Bank as a cross between sort of a central bank like the Federal Reserve and
a private bank like JP Morgan or Goldman Sachs and they invest in all types of properties
stocks currencies bonds in order to get a return and make money for the church. And it’s remarkable to think that the Catholic
Church 150 years ago was absolutely against the idea of capitalism. They grudgingly got into capitalism because
they had no other choice in the 20th century and then they embraced it wholeheartedly. From 1940 in 1959. It has no shareholders. It has only one director the director. In its charter is the pope. It operates as a central bank because all
the money that comes through the Vatican goes through that but it had no disclosure laws
no transparency rules at all that apply to it. So what it was able to do is it was essentially
an offshore bank in the heart of a foreign capital Rome. So an Italian who had a lot of money he wanted
to hide it before cryptocurrencies existed or and you weren’t able to have an anonymous
currency you didn’t know what to do with that money. If you took the suitcase of cash and you want
to crush one street corner and one street you’re in Italy. Technically that’s the jurisdiction across
the street. There are no wall barrier customs. You’re in Vatican City. You give that cash to a person who has an
account to the Vatican bank and they deposit it and it disappears. What I mean by that is the Italian authorities
can no longer follow. Nobody in tax authorities can follow. Nobody in the United States can follow that
transference with that currency to another entity that deals with. It’s out of the international system. So they have a foot in the banking system
but without having to abide by the rules. Now that’s changed in the last years because
the Europeans are now enforcing rules of transparency on them. But before that, it was just a wild offshore
bank. I remember sometime in 2017. The Vatican was going to adopt its own Vatican
bitcoin or the equivalent of a crypto. There was talk that maybe recipients of it
or people got the coins to used the coin and pay a small commission. That commission would go to poor people would
be recycled into good deeds for the Vatican. They haven’t done that yet. Blockchain protocol EOS is being targeted
by a new wave of criticism, pointing at its alleged lack of decentralization. Last week, a Reddit user posted a screenshot
showing how a EOS arbitrator reversed a previously confirmed transaction in order to solve a
dispute between two users. The arbitrator, Ben Gates, referred to EOS
Constitution to legitimize his intervention. He wrote:
“Under the powers afforded to me as arbitrator under article 6 of the Rules of Dispute Resolution,
I, Ben Gates, rules that the EOS account in dispute should be returned to the claimant
with immediate effect and that the freeze over the assets within the said account is
removed.” The kind of authority exerted by the arbitrator
was seen by many as a form of power abuse indicating the essentially centralized nature
of the EOS protocol. According to critics, this way to solve dispute
is reminiscent of traditional customer support services provided by centralized organizations. Others wondered what the point was ofin investing
4 billion dollars to reinvent something which essentially does not differ from traditional
banking and legal systems. Criticism towards EOS was reinforced by a
research paper published by blockchain testing company Whiteblock, indicating that EOS does
not meet the criteria to be considered a real blockchain. We asked Zak Cole, Chief Technology Officer
at Whiteblock, to summarize the research’s main takeaways. It doesn’t matter if there are thousands of
other nodes or whatever that are all keeping track of this ledger or anything like. That doesn’t really matter because as soon
as the transaction reaches the block producer, that block producer has total control over
saying “this is a good transaction” or “this is a bad transaction”. That’s it. And if that block producer arbitrarily decides
that this transaction is bad, it’s gone. There’s really no unique value in using EOS. Why use that? First of all the throughput is slower than
it would be otherwise. And now they have like a committee of people
that arbitrate, right? I mean, that sounds just like a bank. Why not just use a bank? Why not just build a traditional software? What is the benefit? I mean, it’s obviously not censorship resistant
because a block producer can choose to censor my transactions and my communications. So it’s not decentralized, it has no security
and it actually presents a lot of vulnerabilities. On the other hand, Robert Konsdorf, CEO of
EOS Detroit and EOS enthusiast, stood up in defense of the technology. EOS is the first governed blockchain that
has attempted to do governance on this level. It isn’t a recreation of the existing judicial
system at all, because it is not enforced through violence, which nation-state use. Anyone who doesn’t want to participate in
the EoS experiment are welcome to get rid of their EOS. When an arbitration order comes down the transaction
history is never actually reversed. History isn’t altered. So we still have censorship resistant properties. That’s really important because you can unwind
the transaction history and you can still see what the state of the blockchain was in
the past without any alteration. And that’s a really key point that is missed
in a lot of these articles. The latest controversy shaking the world of
crypto reached its peak this week. Bitcoin Cash, the fourth top cryptocurrency
for market cap, born out of a hard fork of the original Bitcoin, found itself at a crossroad. With a new hard fork to take place on November
15, the Bitcoin cash community was deeply divided on which path should be followed:
on one side, Roger Ver, “Bitcoin Jesus,” author of the leading implementation Bitcoin
ABC. On the other, Craig Wright – a man claiming
to be Bitcoin founder Satoshi Nakamoto, although without showing much evidence of it – has
been pushing for an alternative implementation, called Bitcoin SV, or Satoshi’s Vision. The essence of the controversy seems to lie
in technical details: While Bitcoin ABC is supposed to tweak the original protocol, Wright’s
supporters want to maintain the fork closer to the original. But the technical debate seems to hide a power
struggle over who will control the future of Bitcoin Cash. As the controversy heated up, Wright even
hinted at the possibility that miners supporting his version will use their hash power to jeopardize
the competing technology. His radical statements sparked wide criticism
in the crypto community, with Vitalik Buterin calling Wright a tyrant and lunatic. As a result of the controversy, major exchanges
like Binance and Coinbase decided to freeze most of transactions involving Bitcoin Cash. Many claimed that Bitcoin cash “hash war”
was the main cause of the market crash bringing Bitcoin and other crypto’s value to record
lows on Wednesday morning. Bitcoin Cash enthusiasts fear that the struggle
will result in the creation of two weaker versions of the original protocol, once deemed
by some to be the closest to Satoshi’s original vision. Earlier this year, the head of the IMF, Christine
Lagarde, took a combative stance towards crypto, she wanted to fight fire with fire; meaning
that to essentially defeat Bitcoin, you could use its underlying technology blockchain against
itself. It is then no surprise to hear that her approach,
and by extension the IMF, hasn’t exactly softened. She remains ‘not exactly convinced’ on
the virtues of crypto, and instead appearing to be fighting them on a new front. By shilling centralized digital currencies! Lagarde wants the international community
to consider endorsing central bank issued currencies. Speaking at a fintech conference in Singapore,
the IMF head laid out her vision for government-backed tokens and digital assets:
“I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply
money to the digital economy,” Her speech follows the publication of an IMF
report, hot off the press, on the benefits and drawbacks of CBDCs. Last week, the Swedish central bank announced
the proposed 2019 launch of the E-Krona and Lagarde pointed other jurisdictions were considering
their own versions. For her, the benefits include satisfying public
policy goals, financial inclusion, “security and consumer protection,” and “privacy
in payments.” The latter is perhaps the hardest to believe
because the very reason that consumers are guaranteed privacy is that payments are not
private; governments and central banks can see everything. It is unlikely the IMF will ever come out
in favor of crypto. If they ever do – hodlers be worried – very
worried: Bitcoin believers want control over the levers of monetary policy, not to seek
the approval of the hegemonic institutions that control it. After such a stressful few days in the market,
now even going to your favorite US fast-casual salad bar won’t let you escape the crypto
hype. Sweetgreen, every Americans’ favorite for
a quick and overpriced healthy lunch, announced a new $200 million funding round with the
goal of introducing blockchain for bringing transparency to their food chain. Which would you rather have, the blockchain
brussel sprouts bowl, or the crypto cobb salad?

67 thoughts on “Market Crash, Bitcoin Cash Holy War | Hodler’s Digest

  1. …promoting the left agenda are we? Feminism …anti – Christian – giving an example from the middle ages in order to compare it to crypto :)))

  2. Chinese whales are exchanging their BTC for BCD. After 10 years BTC has nothing to show. But BCD in less than 11 months already has an Amazon e commerce store and e commerce stores that sell organic coffee and medical Cannabis which accept Bitcoin Diamond as currency. In Dec this year, we will ramp up our Christmas promotion to out compete Amazon when 25% tariffs will hit Amazon. But our e commerce store…BCD Bazaar ships directly from China without tariffs thereby steals clients from Amazon. Everyone in USA will rush to buy BCD to shop in BCD Bazaar for Christmas gifts in early Dec. Buy BCD now.

  3. Please stop using the Ripple logo for the XRP logo. They are distinctly different. Thanks for at least calling it XRP. 🙂

  4. Forget Faketoshi and the BCH Jesus and focus on the true nature of crypto.
    GUYS, Forbes magazine mentioned 3 TIMES, Nasdaq mentioned ONCE, Jeffrey Tucker said that it WILL CHANGE THE WORLD, and you didn’t get the memo?
    SMARTCASH is Satoshi’s Dream Come True, look at it go, SMARTCASH is going UP while everything else is crushing. BE SMART, switch to SMARTCASH 😎

  5. Weak EOS defense by the EOS employee. Arbitration should only be used as a last ditch option, not in every transaction. EOS is Definitely one of the most centralized coin/blockchain, ran by the ones who hold the most amount of coins.

  6. Could someone please talk about these coins that have been over a million dollars and is now at$20,000 and $120,000 like 42 and Bit20

  7. Bitcoin, shitcoin, down by over 75% in value from 11 month's ago.
    Hahahahaha hahahahaha hahahahaha hahahahaha hahahahaha hahahahaha hahahahaha hahahahaha!

  8. I want out of the dollar. Is there a way I can sell my dollars for another form of currency, or store of value, or asset that can be used as a currency, or even a payment processing network that can replace the dollar? If so, where is this alternative to the dollar that I can invest in?

  9. If some experts predict the death of bitcoin, maybe it is worth investing in new currencies? I have been watching XFC recently,
    especially the FTO. Many people are now looking for stable and transparent projects and their coins. I also, that's why I became interested in the FTO. They are new, at the beginning of the road, but BTC used to be one too in the past.

  10. Folks, there is nothing wrong with Anti-Semitism; it is a GOOD thing.

    Semitism means: "favoritism towards Semite or Jews" 
    Anit means: "Against or Opposed" to something.
    Anti-Semitism means: "Against favoritism for Semite or Jews"

    With that in mind, Anit-Semitism is to be against or opposed to giving Favoritism to the Semite or Jews. Everyone should be treated equally with no one receiving favoritism over another. Everyone should engage in Anti-Semitism and this old world would be a better place.

  11. Do you even understand what Sharia law is?? Clearly not as you don’t even know how to pronounce the word. Take a lesson on Islam and Sharia law. Once you understand that to them women are considered to be second class citizens who are worth only half of what men are. Perhaps then you will shut your ignorant mouth. Get educated, that’s step one.

  12. Hi Hodler's Digest, I have to agree – where is the market going to come back, when it is real only at this moment, and tomorrow it will be different? It's interesting that whenever there are drops, everyone talks about the decline of cryptocurrencies. Was it the same when the stock market in the last weeks when there were such big drops? Probably not. So I'm looking at the future with positive thoughts. I've invested in the FuturoCoin altcoin and I hope it will bring me profits!

  13. its crazy cause this bullshit garbage spewed by coin telegraph is just getting soo many weak traders and hodlers rekt! Stop this garbage propaganda!

  14. If you think investing in bitcoin is a waste of money think of the money they paid her and to produce that video… What a waste.

  15. so overdramatic , my god its not the end of the world its only a small market as part of bigger global markets . everything is so over-hyped .

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