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CoinGate’s Lightning Network To Boost Bitcoin Adoption, 4,000 Merchants Already Onboard

The Lightning Network is about to breach the 102 BTC capacity, and that could very well be the nicest thing to happen to Bitcoin of late. The Lightning Network brings to Bitcoin what everyone has been waiting for all along: A faster, secure payment processing system right at the top of the Bitcoin blockchain. That’s exactly what CoinGate sought to achieve when it introduced the Lightning Network.

It’s Like An Off-Shoot Of The Chain

Basically, this network acts as an off-chain layer to the Bitcoin blockchain where a batch of transactions can be processed before the underlying general chain or ledger is updated. This has the good effect of boosting the transaction processing speed since the system doesn’t have to update every transaction instance separately.

Granted, such a positive development would obviously attract players and support from various bases, especially the key stake-holders like merchants. At the moment, CoinGate has decided to add its 4,000-strong merchant base to the Lightning Network, a move that could result in an overall improvement in terms of use of the cryptocurrency. In return, this increased adoption would boost Bitcoin’s trading volumes and impact the coin’s market value positively.

Speed, Low Fees, Sharp Growth, And Zero Errors

Besides processing transactions in milliseconds, the Lightning Network also significantly reduces transaction fees. The Lightning Network facilitates instant transactions and boosts the scalability of the underlying Bitcoin blockchain network. Currently, various versions of Lightning Wallets are used by a number of transaction processing entities that act on behalf of the merchants.  The merchants include Lois Chevrolet, Livejasmine, and Chronoswiss. The network was first introduced by Joseph Poon and Thaddeus Dryja back in 2015 when the Lithuanian-based company, CoinGate, entered the market.

A look at the network’s recent growth rate confirms that its impact on the Bitcoin market will be significant. Over the past month alone, the network’s capacity has shot up by 5%, node count has increased by 10%, and channel count has gone up by 6%. At the moment, the network boasts 3,369 nodes running over 12,000 channels. Within the past 6 months, the network capacity has shot up from 3 BTC to the current 102.64 BTC.

During its initial beta test, the network was involved with 100 stores selected from all across the world, and not a single error was recorded. That’s a huge plus for a payment processing system that’s handling billions of transactions per second. In terms of partnerships, CoinGate is yet to associate with any US entity, but that’s expected to happen in the coming year. All said and done, the Lightning Network seems pretty poised to take Bitcoin adoption to a whole new level.

The post CoinGate’s Lightning Network To Boost Bitcoin Adoption, 4,000 Merchants Already Onboard appeared first on Ethereum World News.

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Rich Dad Poor Dad Bullish on Bitcoin, Calls Fiat ‘Scam’

Bitcoin (BTC)–Despite the sinking valuation of the cryptomarkets, Bitcoin continues to find advocates from various sectors of society. Robert Kiyosaki, author of the best selling financial advice book Rich Dad, Poor Dad, came out in a recent podcast with strong support for Bitcoin and cryptocurrency, in addition to describing the US-backed dollar as a “scam” and saying that fiat would fail to outlast crypto and a re-emergence of precious metals.

Echoing other sentiments like Peter Schiff, Mr. Kiyosaki stated that he believes the U.S. economy and mainstream financial system predicated on Wall Street is heading towards an immense collapse, one that will eclipse 2008 in terms of financial loss and damage to investors,

“Unfortunately we had a big crash in 2000, they called it the dotcom crash, then in 2008 it was the subprime real estate crash. The next is going to be the biggest of all. When it’s coming I don’t really know, but the foreshocks are sounding right now.”

In addition, the personal finance author had harsh criticisms for fiat and other government-controlled forms of money, in particular finding fault with an argument so often levied against Bitcoin: that there is little intrinsic value backing the dollar aside from what the government ascribes it. As some have pointed out, governments are required to accept fiat for taxes, thereby giving it some measure of real-world value over an alternative like cryptocurrency, But Mr. Kiyosaki doesn’t buy into the belief that fiat holds a sacred position in society, one that cryptocurrency or precious metals could never replace,

“There’s so much fake money. In 1971 Nixon took the dollar off the gold standard and the US dollar became fake money.”

The author also continues to by slamming the propensity for government-caused inflation, again finding support in the deflationary nature of cryptocurrencies–or at least the inability of rampant new printing of money,

“The problem is it also became invisible, so they could print as much as they wanted. That’s why savers got wiped out.”

Mr. Kiyosaki echoes some of the similar arguments of Peter Schiff, who has been labeled by many in the cryptocurrency industry as a detractor of crypto despite holding overlap in views towards decentralization. Like Schiff, who is credited for warning ahead of the 2008 collapse and now predicting a new crash in the market, Mr. Kiyosaki finds safety in the precious metals industry, saying that the average person can protect themselves from the influence of Wall Street and reckless behavior by the banking conglomerate by seeking refuge through gold and silver,

“For the average person just buy some Aussie gold or silver coins from the Perth Mint. When the dollar goes down, gold goes up.”

In his most bullish statements towards cryptocurrency, Kiyosaki commented that he believes government fiat will fail to have the same lifespan as cryptocurrency and precious metals, stating that crypto will come to be seen as the people’s money. Speaking in an interview on the Sane Crypto Podcast, Kiyosaki had this to say,

“God’s money, which is gold and silver, will be here after the cockroaches go extinct, and people’s money, which is [crypto] currency…I think the dollar is toast because gold and silver and cyber currency are going to take it out.”

Kiyosaki concluded his sentiment with “The U.S. dollar is a scam.”

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Recent Market Drop Reveals Industry Is Entirely Speculative Driven

Cryptocurrency–Confusing is the best word to sum up how the crypto markets have performed over the preceding weeks. Despite the excitement of July and early August’s price rally, a welcome sign in an otherwise severely bearish year, the crypto markets have again failed to hold momentum and slipped backwards. While Bitcoin has managed to sustain above $6000 for the time being, many of the top ten altcoins and beyond have reached all time lows for the year–some of which are approaching their valuation prior to 2017’s end of year explosion.

The result is investors and cryptocurrency enthusiasts left scratching their head and wondering how an investment class that is already eclipsing 90 percent in losses from the beginning of the year can continue to fall.

Some place the blame on the recent emphasis over a Bitcoin Exchange Traded Fund. While ETFs were hardly mentioned during 2017’s bull run (most of the news on that front was consumed with CBOE’s launch of BTC futures) the recent narrative in crypto has approached near obsession over the U.S. Securities and Exchange Commission green-lighting a Bitcoin ETF. The largest proponents of a BTC ETF are the same that continually rally around the “institutional money is coming” slogan, a belief that once Wall Street and other big-capital investors turn their sights to cryptocurrency prices will resume smashing all-time highs. However, the net effect has been an investment base hinging upon news of ETF approval, as opposed to any discussion on the advancement and adoption of cryptocurrency.

While 2017 will be remembered as one of the most bullish crypto markets of all time, 2018 has been far more practical in the sense that crypto’s real world presence is growing. Stories of adoption that are commonplace today would have been celebrated endlessly just twelve months ago. It’s understandable considering the wild price ride to end 2017 brought in a host of new investors–many of which are sitting on >50 percent losses–that are looking to recoup on their investment or find some positive spin on the massive fallout in value. However, speculation alone will not continue to drive the industry. The dot.com bubble never came close to killing the internet, despite the massive amount of capital it flushed down the drain in addition to shuttered companies, because the internet proved itself to be a resilient and necessary technology. Most within the industry of cryptocurrency find similar value in Bitcoin and other projects, it’s just the focus which has shifted away to endless discussion of price.

The Union Bank of Switzerland (UBS) published a report last week concluding that 70 percent of price movements within the crypto markets could be classified as speculative “momentum driven” interest. Value investing has gone out the window as nearly every cryptocurrency community experiences the inverse reaction of positive news being met with declining price. Again, the blame can somewhat be tied to the overall market reliance upon the health of BTC: altcoins rarely hold a standalone impact, and are always at the mercy of the original cryptocurrency when the market turns downward.

But even research into the various technologies, development teams and stories have adoption can be met with a degree of price mockery. To give a recent example, TRON announced a partnership with the world’s leading and most recognizable torrenting service BitTorrent, only to see a decline in price that is 93 percent below January’s all time high. Every currency is suffering, and investors are left with no choice but to try and time the market and cut their losses. However, most of the speculation is being driven by a pan-belief in the declining market. Investors are selling because they believe others will sell and the price will go down, creating a self-fulfilling prophecy that is not indicative of the health of the industry.

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Gallup Poll: 26% of U.S. Investors ‘Intrigued’ By Bitcoin (BTC)

Bitcoin (BTC)–Potential adoption for the top ranked cryptocurrency by market capitalization looks a whole lot better following the release of a new Gallup poll.

On Friday, the results of a Wells Fargo/Gallup poll revealed that while only a small percentage of Americans are currently invested in Bitcoin, over a quarter of investors are intrigued by the cryptocurrency. The study’s published results found that 2 percent of U.S. investors polled reported owning BTC, while 26 percent said they were ‘intrigued’ by the prospect of investing in the high profile cryptocurrency. In addition, three in four investors who had heard of Bitcoin reported it to be “very risky” as a source of investment, reflecting the typical sentiment of general media outlets that focus on the price volatility of the currency.

Gallup, Inc., an American research based company, is widely regarded as one of the most comprehensive analytics firms for public opinion polls across the globe. Between May 7 – 14 of this year, the company conducted an online survey among U.S. investors with more than $10,000 in stocks, bonds and/or mutual funds. The results of the poll reflected a general lack of understanding about cryptocurrency by much of the investment market, as well as the aforementioned fixation on price volatility. While 96 percent of polled investors had heard of Bitcoin, only 29 percent reported knowing something about digital currencies, with another two-thirds of investors reporting having heard of other cryptocurrencies but not knowing much about them. Price volatility and risk emerged in the poll results, with 75 percent of polled investors reporting BTC to be “very risky,” and another 23 percent calling it “somewhat risky.”

As the papers outlines, polled investors seemed to ignore or not be entirely aware of Bitcoin’s utility as a tool for digital payment, instead choosing to focus on the price volatility that provides potentially high reward but for a tradeoff in risk,

“[Bitcoin’s] more popular as a high-risk/high-reward investment than as an online currency — although acceptance of Bitcoin for electronic payments is growing.”

Younger males made up the largest demographic for being aware or invested in Bitcoin and other digital currencies, with a divide in age difference also revealing a similar statistic for younger investors with less capital,

“investors with less than $100,000 in investments (who tend to be younger) are more likely to be familiar with the innovation than those with higher asset levels.”

The poll concludes that Bitcoin, in large part due to 2018’s sharp decline in price, is still primarily viewed by many investors as a bubble, with the majority of uninvested respondents preferring to wait and see how the price swing plays out,

“The price of bitcoin is back on an upswing after crashing earlier this year, causing some to say its bubble is again about to burst and others to argue that its value will only accelerate as more merchants inevitably adopt it. For now, most investors are on the sidelines, knowing little to nothing about bitcoin. Few are already invested in it, and even fewer plan to jump in soon.”

Clearly education, particularly in the form of greater understanding about what cryptocurrencies are, how they function, and what the underlying technology provides to both the world and financial markets would help improve the adoption of the currency with well capitalized investors.

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