October 2018 News Report

In Short

In the last month, current cryptocurrency trends have continued with the overall market dropping from 223.2B to 203.4B according to CoinMarketCap. Bitcoin has dropped from $6619 too roughly $6323. Cryptocurrency projects and companies have continued to boom however though with many new innovative ideas/projects still coming to light which makes the future of cryptocurrency bright.

 

Bitcoins White Paper is now 10 years old

October has celebrated the 10th anniversary of the original Bitcoin whitepaper. The original paper can be read here and was written by Satoshi Nakamoto who as we know is anonymous. Bitcoin has given a chance for people to compete with centralized financial services such as banks, and allow for a global digital currency. Although Bitcoin has changed since its first paper release in 2008, it has survived and boomed to a peak of roughly $19,000 USD. Bitcoin has come a long way and will continue to grow and work with innovative applications as the market has called for change.

 

Bank of America lanches a new blockchain patent

On October 30th Bank of America announced its plans to move its private key storage forward. The patent states the reasoning is such that “A need exists for a secure means for storing private cryptography keys. The desired storage means should reduce the risk of misappropriation of keys due to the keys being stored internally within a computing node that is frequently or, in some instances, continuously accessible via a public communication network, such as the Internet.” This is very important for blockchain technology as Bank of America, although a centralized company shows signs of real world use and application. Security has always been a concern in the blockchain/cryptocurrency market and so BoA could actually make some good advancements if they are able to complete what they aim to. Oodlebit which is launching in early 2019, is also taking the initiative of prioritizing security.

Coinbase Cuts Employees

According to Yahoo Finance Coinbase has recently cut an undisclosed amount of workers in the customer support, compliance, and fraud departments. Cryptocurrency exchanges should pride themselves on customer support which has been an issue with past exchanges like Poloniex. Fraud detection and compliance is also a big challenge for cryptocurrency exchanges as regulation has recently been a huge concern. So by cutting some important roles, Coinbase is going to face many challenges moving forward. At Oodlebit we want to put the customer first, and so we offer state of the art customer service that is dedicated to supporting any needs.

Possibly a new Hardware wallet

 

On October 23rd, Sony announced plans to create a new hardware wallet that could have many new use cases. The smart card technology would be able to communicate with Bitcoin and allow for safer transactions when dealing with it. This isn’t the first time Sony has worked in the blockchain sector, Sony has launched two different patents. (1 and 2 ) It is not guaranteed that Sony would launch a cryptocurrency product since it has not publicly announced, but if Sony does decide to launch the product it would greatly increase the utilization of cryptocurrency.

September 2018 News Reports

In short

September has been a very active month for cryptocurrencies, as prices have seemed to be soaring rapidly in both directions. Regulation seems to have been moving at a slightly slower pace which is typical, and some big fortune 500 companies have announced plans to develop blockchain experiments.

 

Austria and Ethereum

On September 25th Kleinezeitung announced that the Austrian government will be using the Ethereum blockchain to facilitate the opening of over $1,000,000,000 worth of purchasable government bonds. The Oesterreichische Kontrollbank or OeKB bank plans on opening this transaction. This news is very important because it shows the interest in blockchain technology as financial instruments being used by top global banks. In order to grow the advancement of cryptocurrency, institutions need to be adopting the technology and so this is certainly a good step in the right direction.

Wall street Journal Study

 

On September 28th the Wall street Journal conducted a study which found that over $88,000,000 of illegal funds have been exchanged through cryptocurrency exchanges. The Wall Street Journal conducted their study by looking at over two thousand “blacklisted” addresses and then following the links between the transactions. There are a number of different problems that could arise from this experiment though, one being the purchase of legal goods. If a hacker has stolen 1 BTC and then sends it to a vendor which in return sends the coin to an exchange after sending the product/service to the hacker. The money is not being funneled or hidden using an exchange, but rather being traded legally at that point. So the extent to which the coins are used is not clearly defined. Using exchanges to facilitate illegal transactions has been proven to be minimal, with regulatory laws such as the KYC/AML. At oodlebit we take the regulatory laws very seriously and you can check out our policies and procedures on our website.

 

 

Regulatory Clarity needed

CNBC reported that members of the United States Congress are asking for more clarity around cryptocurrency regulatory practices/rules. These regulatory clarifications are not simply aimed at Bitcoin, but all cryptocurrency as Congress has identified the practice of ICO’s and other forms of cryptocurrency coins/tokens. Different government entities classify bitcoin and other cryptocurrencies differently, like the IRS, CTF, CFTC and SEC all have different ideas. This puts businesses and customers wondering what will actually happen to cryptocurrencies from a regulatory state. It is good that some sort of regulatory urgency coming from Congress at trying to understand the exact classification of cryptocurrency since it is damaging everyone who is involved.

 

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Oodlebit does not participate in proprietary trading

 

Our Commitments

At Oodlebit we are a peoples exchange, and so we pride ourselves with being open and transparent. In order to comply with our values, we would like to make it clear that in no way shape or form do we proprietary trade. The foundation in which the exchange was created on, are still core and principal values that have continued and will be honored.

Read: Our commitments are important, read more about what we are prioritizing.

 

Investopedia defines proprietary trading as

when a firm or bank invests for its own direct market gain instead of earning commission dollars by trading on behalf of its clients. This type of trading occurs when a firm decides to profit from the market rather than from the thin-margin commissions it makes from processing trades.

Oodlebit is an exchange in which allows customers to find buyers on a liquidated platform. Oodlebit helps facilitate the trades between different cryptocurrency pairings and does not trade any money for the benefit of the company. So in short, Oodlebit will not be making any proprietary trades or trades against customers. Money avenues that are earned will be directly outlined and transparent, available for all customers to read. When trades are completed and executed they are done so after an order from a customer has been made.

 

 

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Cryptocurrency in Higher Education

Oodlebit is working day in and day out on the new software that will be released for trading in 2019, but we are also working on creating educational tools to help people transition into the cryptocurrency market. We know how important it is to engage users and train users to make the best decisions when trading cryptocurrency, and so we are dedicated to releasing top educational content around the basics of cryptocurrency and blockchain technology.

Higher Education Stats

 

New interest has emerged from top universities in which a recent study done by Qriously has shown that over 40% of the top 50 universities globally are offering at least one cryptocurrency course. Stanford University comes in at rank #1 for offering 10 different cryptocurrency courses and is still building new classes.

Different departments are holding cryptocurrency courses like finance and other subjects, which is different from the typical computer science. This means that people across different backgrounds are interested in blockchain and can see it shaping the world, which is why we want to get everyone involved. Blockchain shows a lot of promising avenues in innovation which has likely caused the stir with college/university students to request more classes.

The rise in cryptocurrency/blockchain courses is not only prevalent in a substantial amount of the top 50 schools, but it is also seen in some online classrooms and many other colleges/universities. Which is why the Qriously study showed that more than half of social science majors were interested in taking a cryptocurrency class, but are not taking one due to its select nature in schools. Every year blockchain and cryptocurrency will grow in schools, which will allow more people to get a first-hand sight at its amazing features, and help grow the open source technology that we can see in some projects today. Exploring the opportunities in the blockchain space will help more companies advance their databases and allow them to track products/services more effectively.

In the same Qriously study, over 15% of students with “experience” in cryptocurrency owned it, while only 9% of students had taken a class before. This means that students are likely buying cryptocurrency without the recommend knowledge of the technology which is going to hurt the short-term success of cryptocurrency. It is beneficial that we help and guide those who are interested in cryptocurrency and teach them the valuable skills before they purchase the coins/tokens. This will allow more people to be comfortable when making a purchase, and possibly help make more effective decisions.

 

Looking to the future

Blockchain systems are not going away, and regardless of a take on cryptocurrencies as a financial tool, this statement stays true. Big fortune 500 companies are starting to test blockchain systems and better understand the use cases of this technology. This new technology will build a brand new economy for jobs and so it is important to prep people for the future job market in blockchain technology.

 

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Cryptocurrency Markets are back up after some heavy weeks

Hodlers see some good days 

According to CoinmarketCap Bitcoin has been able to move past $6700 while Ethereum holds above $220. Ripple has seen some huge gains as it is up over 50% today. This is all good and well, but where is the cryptocurrency market actually headed?

*At Oodlebit we do not pressure or recommend investments in cryptocurrency, we simply offer an innovative tool to facilitate transactions/exchanges.

Tim Draper’s bold prediction

Dealstreetasia reports that Tim Draper (a cryptocurrency venture capitalist) believes the cryptocurrency market will reach $80 trillion within 15 years. Tim is quoted as saying

The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here (with bitcoin)”

 

Currently, the cryptocurrency market is evaluated at $224.8B which means that the market will need to 356X in 15 years to meet the expectations of Tim.

 

In a Bloomsburg Interview Vitalik Buterin (co-founder of Ethereum) stated

If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.

Vitalik Buterin then went on to clarify saying that in order to have growth we need some utility. Only a small fraction of the investors in cryptocurrency today are using ETH tokens on Dapps, but rather holding them as an investment.

A new governance in Ethereum?

ERC777 is a new model that could replace the standard ERC20 tokens on the Ethereum platform. This plan was created by Jordi Baylina, Jacques Dafflon, and Thomas Shababi. This new model would give tokens an easier transaction function but would allow smart contract coders a way to step into transaction disputes. This new system would allow a “hook” to block certain addresses, and allow owners to handle disputes. This proposed system isn’t new though, it was introduced back n November 2017, and is still being debated today by the community.  This is certainly a debate and topic that investors/cryptocurrency enthusiasts should not overlook.

 

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Investors want more cryptocurrency

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In today’s blog, we are going to take a look at a recent survey by Sharepost that may suggest that investors are more interested in cryptocurrency in 2018. Cryptocurrency has had a rough start in 2018, while most are down from their 2017 highs. However, the survey reported that

59 percent of investors and 72 percent of consumers plan to increase their holdings over the next 12 months.

This is really good news for the cryptocurrency economy as most of the users and transactions are coming from the investing section. It was no secret that the top three cryptocurrency coins/tokens that were most likely to succeed according to the survey were Bitcoin, Ethereum and Ripple. (Which are currently the top three cryptocurrencies right now in terms of market cap)

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Companies launching crypto related services/products/research

In order for cryptocurrency to be adopted real-world utility needs to exist. Right now hundreds of thousands of products/services can be purchased using some form of cryptocurrency, however, to compete on a competitive level cryptocurrency will need to be accepted by millions of different retailers. The Sharepost study suggested that

49 percent of consumers say employers are planning to roll out Blockchain in the near future.

Even during rough patches, light can be seen when companies are entering the blockchain space to try and innovative and release beneficial services/products.

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Tokenizing the Future

This data could possibly show a future in which many different companies roll out their own native cryptocurrency token and that the future could be a tokenized market.  Whether the tokens will represent some sort of equity within a particular company/business, function as a store of value, or even a medium of exchange this data has some promising notations. In a tokenized economy people will need to be able to interact with the tokens effortless in order to make the incentive models realistic. This means that exchanges will need to allow users to effortless exchange their tokens with many different trading pairs.

 

 

This sort of tokenized world is however many years away and will not be built overnight. More companies need to roll out research plans or even plans to develop blockchain related services/products. Many more years of research will be needed to give confidence to smaller companies and sole proprietorship (the largest groups of businesses in the US are sole proprietorship’s.) Companies like Wal-Mart, IBM, Oracle, and Goldman Sacs are considering or even exploring blockchain technology right now. These dominate companies have the resources to test out the industry, and once the projects are finally present other smaller companies will begin to follow suit.

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People using cryptocurrencies

Currently, around 40 million people around the world are using cryptocurrency and at the current rate within the next 7 years, this market could reach 1,000,000,000 people. This, however, cannot increase rapidly if exchanges and storing precautions are not taken. Most people who are early innovators have taken a look into cryptocurrencies, and these are the people that are willing to deal with the uncertainty in wallets and exchanges. The majority of the world will not be willing to enter the cryptocurrency market without an increase in security measures. This is why Oodlebit is dedicated to creating the most secure yet efficient trading platform. Together we can form the best cryptocurrency exchange and invite the next 40 million users to enjoy it with us.

 

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Making a good cryptocurrency exchange

A cryptocurrency exchange is a medium that allows users to facilitate buy and sell orders. The exchange site can facilitate these trades using fiat pairings and use liquid cryptocurrency assets like Bitcoin and Ethereum. These transactions come at a cost and normally are set in a progressive fee bracket which allows the exchange to make a profit and run its service.

 

A recent article on Coinsulta explains what traits to look for when searching for an exchange. Currently, hundreds of different exchanges exist that are producing millions of dollars in transactions a month. Cryptocurrency has been on a steady incline ever since Bitcoin was mined in 2009. In a market that is growing at a fast pace like cryptocurrency one might think the technology and exchanges that are facilitating these trades are advancing and growing as well. In our last blog, we explained how the exchange market hasn’t really changed much and hacks and exploits are getting more and more frequent.

 

What to Look For:

 

Ease of Usage

The first important thing to look for in an exchange is the ease of usage, some exchanges are hard to operate and sometimes the user might end up sending cryptocurrency to the wrong addresses because of the confusing UI. If cryptocurrency adoption is going to occur everyone needs to be able to access these exchange platforms without hours of learning. Which is why at Oodlebit we have taken the initiative to make the exchange platform easy for anyone to understand and start trading within minutes, with tools available for more advanced users to keep everyone active.

 

Security of Funds

 

As we have seen in countless exchanges in the past that were in control of millions, security hasn’t always been a top priority. This gives a bad taste to others who are on the fence about getting into cryptocurrency and is hurting the users that are involved in cryptocurrency directly. Most of the cryptocurrency hacks/exploits could have been avoided and the carelessness of private keys was astounding. Oodlebit has a strict policy on security and is transparent with our users with our policies and handling procedures.  Two Factor authentication will be available for everyone accessing the platform to ensure an extra layer of security. Our advanced system will monitor unusual activity, including log in location, trading patterns, and other activities. Cold storage’s are often used lightly on exchanges, and store a small percentage of the funds. However, at Oodlebit a majority of user funds will be safely secured in cold storage wallets.

Performance

When dealing with user funds, exchanges should act seamlessly and run smoothly to give the users the best experience possible. Unfortunately, that is not always the case with the top exchanges. Having near perfect up time is something that Oodlebit strives for and maintain innovating trading software/tools is something that we pride ourselves over. In order to give a good performance and first experience, we are giving away 50 OODL coins with 60 days of free trading to the first 30,000 users. Our customers and their loyalty are priceless and to show our continued support to the community we are always running promotions/events to engage the community that we share.

 

Oodlebit believes in low fee trading in order to boost performance, and when trading personal funds the users should have fair fees. This is why we are committed to competitively pricing our fees to other exchanges.

 

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