Tether, Bitcoin, Ardorgate, AEUR

Neocash Radio

Welcome to NeoCash NewsCast number 002 bringing you the latest cryptocurrency news from around the world wide web. Please be sure to click the subscribe button and be one of the first to receive cutting-edge news.

The crypto markets are continuing to decline as the bitcoin tether bubble is deflated. Also, In a related story I’m going to talk about Ardorgate. The top story is still the dramatic fall of cryptocurrency prices. Is it a bounce or what? Bitcoin SegWit prices dropped below the $8000 mark. But what is more interesting to see is the trading volume of USDTethers. $5 Billion in volume is more than twice the total supply. Are we seeing a digital game of hot potato?

U.S. Dollar Tethers fail to stand up to the rigors of scrutiny due to the fact that we must trust them. We must trust they have reserves in accordance with the tokens issued. A second issue is the connection to Bitfinex. A major exchange is the first to benefit from the printing of new tethers. If Bitfinex did nothing more than pawn off worthless tethers for Bitcoin SegWit they would have an amazing business model.

This same business model is prevalent in the crypto ecosystem with a new token sale or ICO starting every day. Many people are parting with Ether, a currency that has a rational value, for ICO tokens whose value is unknown at best or pure hype at worst. Why would they do that?

Maybe they are doing that because their currency went up in value by 5000% and they feel like gambling with a few coins. As anyone can witness the rise and fall of Bitcoin SegWit seems to echo across all blockchains. So to bring it back around:

Tethers were printed to buy Bitcoin, creating a positive pressure on the back of vapors, the rise in Bitcoin spread to other chains and tokens as traders sought to diversify and hedge. This continued with each new tether grant. The price rise caught the attention of many around the world and real capitalization occurred where new volumes of fiat moved into the crypto space. This trend led to new all-time-highs and created a feedback loop of trading. The song had to end at some time and now seems just about as good as any.

So how would you peg a fiat currency to a cryptocurrency? Ardorgate has a simple way of doing that but first let’s talk about Ardor.

Developed by Jelurida Ardor is a parent/child blockchain ecosystem. Child chains have an independent blockchain tailored to the specific environment or protocol. These child chains can choose to attach or bundle a reference block into the Ardor Parent chain. Once done the child chains can prune their blocks limiting the digital footprint without compromising on security. Ardor and all child chains are proof-of-stake blockchains based off the NXT platform.

Getting back to Ardorgate, the website allows users to deposit Euros and receive a digital token pegged to that Euro price. The token is called AEUR which is also the name of a child chain within the Ardor platform. The fiat money is handled by a bank service called mistertango and instructions show how to both deposit and withdrawal Euros. The instructions involve some copy and pasting so please be careful if you try it out.

This is how a pegged fiat to cryptocurrency ought to work. There is transparency for the number of tokens created and the amount of Euros on deposit.

Bumper Music: The Pirate And The Dancer by Rolemusic: http://freemusicarchive.org/music/Rolemusic/The_Pirate_And_The_Dancer/04_rolemusic_-_the_pirate_and_the_dancer