Mastodon

Is bitcoin a waste of electricity or something worse? – CNBC

CNBCIs bitcoin a waste of electricity or something worse?CNBCWhile Bitcoin mining may not be labor intensive, it diverts time, energy and capital from other, more productive activities that economists say could fuel faster growth. "It appears that…


CNBC

Is bitcoin a waste of electricity or something worse?
CNBC
While Bitcoin mining may not be labor intensive, it diverts time, energy and capital from other, more productive activities that economists say could fuel faster growth. "It appears that much of our evolving digital infrastructure is devoted to ...

IoT Devices Demonstrated to be Vulnerable to Mining Hack at Mobile World Congress

Vulnerable IoT devices, from smartphones to security cameras and smart TVs can be hijacked and used mine cryptocurrencies, cybersecurity firm Avast demonstrated this week at the Mobile World Congress in Barcelona, Spain. The Czech-based firm showcased the problem by giving conference-goers a firsthand look at a “hacked” network, where inter-connected devices were collectively mining the cryptocurrency Monero … Continue reading IoT Devices Demonstrated to be Vulnerable to Mining Hack at Mobile World Congress

The post IoT Devices Demonstrated to be Vulnerable to Mining Hack at Mobile World Congress appeared first on NewsBTC.

Vulnerable IoT devices, from smartphones to security cameras and smart TVs can be hijacked and used mine cryptocurrencies, cybersecurity firm Avast demonstrated this week at the Mobile World Congress in Barcelona, Spain. The Czech-based firm showcased the problem by giving conference-goers a firsthand look at a “hacked” network, where inter-connected devices were collectively mining the cryptocurrency Monero in what’s called a botnet.

Mining is the process of verifying transactions on a cryptocurrency network by solving complex mathematical algorithms. Bitcoin and other cryptocurrencies are difficult to mine without having purpose-built, high-powered computers, but Monero is different. Monero mining can utilize the power of a network of internet-connected devices.

The company said that based on its tests if it were able to get 15,000 internet-connected devices onto its hacked network, it would be able to mine $1,000 of the cryptocurrency in four days. In theory, a real-world attack would be made possible if hackers did just this, taking over a network of devices and using their combined computing power to mine.

While $1,000 might not sound like a lot of profit, the potential is huge. In 2017 there were an estimated 8.4 billion of internet-connected devices, but by 2020 it’s estimated there will be over 20 billion, according to a forecast by research firm Gartner.

“This ubiquity of devices combined with the fact they are so easy to attack makes them an attractive target,” Ondrej Vlcek, the chief technology officer at Avast, told CNBC.

It is worth remembering that Avast does have a product to sell: Later this year it intends to release a smart home security package that protects against such hijackings.

IoT

The Internet of Things (IoT) is the interconnection (via the internet) of computing devices embedded in everyday objects, enabling them to send and receive data — think smart houses. The issue with the IoT is that to increase function, connectivity is being inserted into millions of everyday items, making it possible to cram new functionality into everything from speakers to thermostats — each one of which is effectively a computer of sorts. Gather enough of them into one botnet, and you can harness a large amount of computing power.

We’ve been hearing a lot about security and hacking in relation to crypto-mining as of late. North Korean government-backed hackers have been running campaigns aimed at hacking devices to mine Monero, and recently China has been having trouble with related Monero-mining bot the Jenkins Miner. The Jenkins Miner is an operation designed to mine Monero by actively spreading Monero mining malware across computers networks. The operators of this botnet have hijacked thousands of computers already.

The post IoT Devices Demonstrated to be Vulnerable to Mining Hack at Mobile World Congress appeared first on NewsBTC.

Moscow Court Rules Crypto Assets Cannot Be Seized For Debt Payment

A Russian court says crypto cannot be used as payment to creditors, given the legal status of crypto is not firmly established in the country. #NEWS

A Russian court says crypto cannot be used as payment to creditors, given the legal status of crypto is not firmly established in the country. #NEWS

Keith Lim: Blockchain Will Definitely Have a Positive Role in Disrupting the Insurance Industry

Most of the young companies developing blockchain-based solutions are focused on cross-border payments and other financial services. Therefore, the insurance industry is still poorly covered by the blockchain, says Keith Lim, owner of the insurance startup Hearti. However, the expert is sure that the technology will change the sphere of insurance in the near future. … Continue reading Keith Lim: Blockchain Will Definitely Have a Positive Role in Disrupting the Insurance Industry

The post Keith Lim: Blockchain Will Definitely Have a Positive Role in Disrupting the Insurance Industry appeared first on NewsBTC.

Most of the young companies developing blockchain-based solutions are focused on cross-border payments and other financial services. Therefore, the insurance industry is still poorly covered by the blockchain, says Keith Lim, owner of the insurance startup Hearti.

However, the expert is sure that the technology will change the sphere of insurance in the near future. In an interview with Blockchain & Bitcoin Conference Thailand, he talked about how this will happen, as well as made a brief announcement of his presentation at the event.

Interviewer: Blockchain & Bitcoin Conference Thailand (BCT)

Speaker: Keith Lim (K.L.)

BCT: Tell me how did you find out about blockchain. Were you skeptical at first, or did you immediately see an enormous potential?

KL: I first found out about blockchain around 2012.  At that time, many blockchain use cases were still in a very early experimental stage.  However, through progressive studies and better understanding of the technology, I see an enormous potential in blockchain and wanted to develop a viable use case for the insurance industry.

BCT: Mr. Lim, you are Head of blockchain-based insurance service. How do you see the prospects of blockchain in insurance? Will the industry be completely blockchain-based in the future, or traditional and blockchain-based services will exist in parallel?

KL: The insurance industry is a huge and traditional one that blockchain will definitely have a positive role in disrupting it.  Insurance companies are starting to do proofs-of-concept on smart contracts, KYC processes and claims management on the blockchain.  Having said that, as there are many traditional stakeholders in the insurance industry such as agents, underwriters, insurers, and reinsurers, I envision that blockchain-based services will co-exist with traditional services for a while.

BCT: Are there many blockchain companies in the insurance industry today? What are the competitive strengths of Hearti?

KL: As there are many potential use cases for blockchain, such as for global payments, logistics etc., not many blockchain companies are focusing on the insurance industry at the moment.  This presents a huge advantage for Hearti as an early mover.  Moreover, Hearti is already serving many insurance customers with our Artificial Intelligent solutions, which strengthens our value propositions to our customers for blockchain.

BCT: What difficulties do the blockchain companies have in Singapore today? What are the main disadvantages of this jurisdiction?

KL: Blockchain technology works best as a decentralized and distributed network of difficult stakeholders.  Therefore, the challenge for any blockchain company in Singapore is to gather sufficient stakeholders in the insurance and related industries within Singapore’s well-connected and technologically advanced marketplace.

BCT: Which are the targeted regions for Hearti? Is Thailand in your area of interest?

KL: Hearti’s targeted region is South East Asia, and we already have offices in Thailand, Indonesia, Vietnam, and Malaysia.

BCT: You will talk about blockchain trends at Blockchain & Bitcoin Conference Thailand. Tell us briefly, which trends will you discuss with the audience?

KL: I will be discussing events and use cases that formulated the trend of blockchain in the past few years, and what we can expect in the next few years.  I will be touching on major trends that I see emerging from the recent events, e.g. regulations in countries such as Thailand and China, and how these events can affect blockchain development.

BCT: Please tell us about your expectations for the conference.

KL: I envision the conference to engage in lively discussions about blockchain and bitcoin.  It should also offer excellent opportunities for collaborations and partnerships.

The event will be held on March 6 in Pullman Bangkok Grande Sukhumvit. It will include:

  • 15 crypto industry experts from 10 countries;
  • panel discussion dedicated to ICO regulation in Thailand;
  • an exhibition area, featuring trading platforms, suppliers of equipment for mining farms, software developers.

Program and registration are available on the website of Blockchain & Bitcoin Conference Thailand.

The post Keith Lim: Blockchain Will Definitely Have a Positive Role in Disrupting the Insurance Industry appeared first on NewsBTC.

Marshall Islands Issuing The “Sovereign,” the First State-Cryptocurrency to Be Used as Legal Tender

Partnering with Israeli finch startup Neema, The Republic of the Marshall Islands (RMI) — a country located in the Pacific Ocean with a population of only 50,000 — is set to become the first sovereign nation to issue a cryptocurrency that will be legal tender. As reported by the Telegraph, President of the Marshall Islands, Dr. Hilda C. … Continue reading Marshall Islands Issuing The “Sovereign,” the First State-Cryptocurrency to Be Used as Legal Tender

The post Marshall Islands Issuing The “Sovereign,” the First State-Cryptocurrency to Be Used as Legal Tender appeared first on NewsBTC.

Partnering with Israeli finch startup Neema, The Republic of the Marshall Islands (RMI) — a country located in the Pacific Ocean with a population of only 50,000 — is set to become the first sovereign nation to issue a cryptocurrency that will be legal tender.

As reported by the Telegraph, President of the Marshall Islands, Dr. Hilda C. Heine describes the move as follows:

“This is a historic moment for our people, finally issuing and using our own currency, alongside the USD. It is another step of manifesting our national liberty.”

The new currency is called “Sovereign” or “SOV.” It will be distributed to the public via an Initial Coin Offering (ICO) later this year, with every resident of the Marshall Islands to receive a free allocation — soon after, the government will allow global investors to participate. The SOV will circulate as legal tender in the country alongside the country’s current local currency, the U.S. dollar.

“E-Conomy Vision”

This move is part of a broader “E-Conomy vision” to create a society that not only uses blockchain technologies for the SOV and for securely record biometric IDs: Going ahead, the government hopes blockchain will transform licensing, ownership, and the voting system in the Marshall Islands, amongst other things. 

President Heine describes the vision as follows: “The RMI will invest the revenues to support its climate change efforts, green energy, healthcare for those still affected by the US nuclear tests, and education.” In fact, 10% of the proceeds from the ICO will be directed toward a Green Climate Fund, according to David Paul, Minister-in-Assistance to the President and Environment Minister of the RMI.

Yowke Protocol

In contrast to Bitcoin and other decentralized cryptocurrecies, the SOV is based on the Yokwe protocol, which requires users to identify via the blockchain — taking away the pseudo-anonymity that other cryptocurrencies offer. This isn’t necessarily a surprising move as the RMI is creating this digital currency for its citizens and wants it to be transparent — don’t forget, the SOV is a government funded and run operation.

As noted above, Neema is the Israeil fintech startup the RMI is teaming up with to issue the digital currency. Peter Dittus, Neema’s senior economic advisor, describes the decision to utilize the Yokwe protocol as follows:  

“The Yokwe protocol provides a promising balance between transparency and privacy and we’re excited to develop it further. It’s state of the art technology, put to good use, with the right values in mind and a clear purpose.”

Earlier this year, the Maduro government in Venezuela launched a digital currency called the Petro, claiming it was the world’s first sovereign cryptocurrency. The SOV statement notes that, contrary to the Petro, the SOV will actually be legal tender of the country. And further, the SOV price will be determined by the market — not like the Petro whose price is pegged to a barrel of oil, making it vulnerable to manipulation by the Venezuelan government.

The post Marshall Islands Issuing The “Sovereign,” the First State-Cryptocurrency to Be Used as Legal Tender appeared first on NewsBTC.

Op Ed: Lobbying Efforts Promote the Blockchain Industry Around the World

Well-known crypto companies such as Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and CommerceBlock have recently announced the creation of CryptoUK. As stated on their official website, CryptoUK is a self-regulatory trade association …

Op Ed: Lobbying in the Community

Well-known crypto companies such as Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and CommerceBlock have recently announced the creation of CryptoUK. As stated on their official website, CryptoUK is a self-regulatory trade association established to promote higher standards of conduct. But why should these obvious competitors and big players unite? And is this becoming a trend?

Of course, their primary goal is perfectly clear: CryptoUK wants to lobby the U.K. government on behalf of their interests and to influence the market.

The aggregated volume of the exchanges is quite large for the cryptocurrency industry. The daily volume for CEX.IO alone is more than $34 million. However,  this is a small amount when compared to the market leaders.  Binance’s daily volume is around $2 billion, for example. CryptoUK unites not only crypto-exchanges but also such services as Coin Shares (a hedge fund and exchange), CryptoCompare (a community hub) and several others. By having a united policy, all of the above-mentioned companies can truly influence the different spheres of the crypto community.

As British Treasury official Stephen Barclay recently said, “The U.K. government is currently negotiating amendments to the anti-money laundering directive.” It will be adopted as early as the beginning of 2018, and it will certainly affect the sphere of cryptocurrency. Therefore, a large association representing several companies has a real chance of being heard by the regulatory authorities.

It seems that crypto associations are becoming a trend, and a source at Blackmoon — a platform uniting the traditional investment funds and digital currency — said that a similar association is being prepared with several market leaders mostly from the U.S.

So what kinds of cryptocurrency and blockchain associations exist, and what goals do they pursue?

Government Support Plays a Role

Crypto Valley Association

The Crypto Valley Association was established in 2017 with the government support of the canton of Zug in Switzerland. Their stated goal is to build the world’s leading blockchain ecosystem. At the moment, the association is engaged in garnering startup support (including contacts with investors and fundraising), conducting research in the blockchain, and holding events.

Some members of the association are Bitcoin Suisse, Bussmann Advisory, iprotus, Lucerne University of Applied Sciences and Arts, Luxoft, Monetas and Thomson Reuters.
KPMG is one of the associations partners. Crypto Valley is currently making their first report on an ICO together with the major global auditor, PwC.

Russian Association of Cryptocurrency and Blockchain (RACIB)

This association was also established in 2017 with the support of the Russian government. Among the activities of the association are “the preparation of proposals for legislative acts for the Government of the Russian Federation.”

The creation of the association was initiated by the Advisor to the President of the Russian Federation on internet issues, Herman Klimenko. He is not listed on the official website of the RACIB in the “Board members” section, however, he is the head of the RACIB supervisory board. That board also includes the CTO of one of the biggest Russian IT companies Mail Ru Group, the CEO of Waves platform and other well-known people from the industry.

The association actively conducts blockchain initiatives and events, and they also try to influence the decisions of the government. For example, recently, the president of the RACIB Yuri Pripachkin offered to provide free power from the state-run power plants for cryptocurrency mining.

Blockchain Research Institute

The main goal of this Canadian organization is to further research into the impact of blockchain technology on business, government and society. The study is financed by the institute members, including global leaders at IBM, Microsoft, Deloitte and others. BRI is helping member organizations to realize the benefits of implementing blockchain technologies. The institute was founded in 2017 by Don Tapscott and Alex Tapscott, authors of the bestselling book, Blockchain Revolution. This organization has some governmental support from the Government of Canada, the Government of Ontario, the City of Toronto, the University Health Network in Toronto, the Bank of Canada and the Federal Institute on Governance.

Associations Created for Lobbying and Education

Chamber of Digital Commerce

Created in 2014, the focus of the Chamber is to lobby for the use of digital assets and blockchain technology and to affect policy makers and regulators. The Chamber of Digital Commerce is successfully expressing the interest of the crypto community through the media and through public appearances of its members in many high-profile situations. For instance, recently Perianne Boring and Amy Davine Kim from the CDC board presented to U.S. legislators about the electronic signature act, proposing the usage of smart contracts instead.

Among other Chamber of Digital Commerce initiatives are the creation of the Token and Blockchain Alliance, the Digital Assets Accounting Consortium and many others. CDC host events on a regular basis, from small meetups to large conferences, like the DC Blockchain Summit. Boring has become an influencer in the industry, speaking at top conferences around the world and recognized as being among the “10 Most Influential People in Blockchain 2016.”

The U.S. Congress is beginning to take note of what the Chamber of Digital Commerce has to say and has taken steps to address some of its proposals (e.g. monitoring of extremists groups).

Coin Center

Another other association making its mark in DC is Coin Center. The goals of the organization are to educate policymakers about cryptocurrencies, to be engaged in regulators’ research on the topic and to advocate the blockchain solutions.

Coin Center produces research reports on topics that are important to the industry, including “The Need for a Federal Alternative to State Money Transmission Licensing.” Recently CEO Jerry Brito participated in CFTC’s Technology Advisory Committee Public Meeting, representing Coin Center’s position regarding virtual currencies, market regulations and development of the blockchain technology.

ACCESS, Singapore

This association was established in 2014 and aims to make a dialogue between the crypto community, large businesses, and regulators. Thus, ACCESS is the voice of Singapore’s blockchain projects. In addition, the association regularly conducts seminars and workshops on the theme of the blockchain and cryptocurrency. The co-founders of such projects like CoinPip and JEDTrade are all on the board. The association also makes proposals to MAS Singapore’s central bank.

Bitcoin Association Switzerland

The first thing that catches your eye when you go to the official website of this association is Dostoevsky’s quote on the main page: “Money is a coined freedom.” In addition to the obvious love of Russian literature, the members of the association are united in carrying out joint events and trying to solve the problems of regulating cryptocurrencies. It is also a single entry point for the media: sharing of public relation resources, by the way, is another reason for the creation of such associations.

Members of the association include such giants as E&Y and Bosh, as well as blockchain projects like Crypto Finance. BAS regularly holds question-and-answer sessions with its members, stoking interest within the community.

This is a guest post by Maria Lobanova. Opinions expressed are her own and do not necessarily reflect those of Bitcoin Magazine.

This article originally appeared on Bitcoin Magazine.

PoW vs PoS — the debate defined

Often overlooked in any discussion about cryptocurrencies, is the critical importance of consensus algorithms and how fundamental they are to the application and potential of any blockchain coin or token.While nobody disagrees with the general concept …

Often overlooked in any discussion about cryptocurrencies, is the critical importance of consensus algorithms and how fundamental they are to the application and potential of any blockchain coin or token.While nobody disagrees with the general concept of consensus agreement being fundamental to the legitimacy of a blockchain, debate continues, however, around what is the best process by which to achieve that consensus.

$1 Trillion Investment Group Eyes Up Cryptocurrency

An investment group with over $1 trillion under management have declared their interest in the cryptocurrency space. Wellington Management Co. stated in their February report that they were looking at companies connected with the emerging industry surrounding digital coins. For now, however, they’re exercising caution in their consideration of pursuing direct exposure to cryptos for … Continue reading $1 Trillion Investment Group Eyes Up Cryptocurrency

The post $1 Trillion Investment Group Eyes Up Cryptocurrency appeared first on NewsBTC.

An investment group with over $1 trillion under management have declared their interest in the cryptocurrency space. Wellington Management Co. stated in their February report that they were looking at companies connected with the emerging industry surrounding digital coins. For now, however, they’re exercising caution in their consideration of pursuing direct exposure to cryptos for their clients.

Another Big Player Edges Towards Crypto

According to an article in Bloomberg, the Wellington Management Co. systems now include various Bitcoin derivatives. Along with this development, the mainstream investment firm has begun to explore positions in companies such as mining manufacturers and those working closely with the technology behind digital currencies, the blockchain. The February report read:

“Various Wellington teams are already positioning portfolios to take advantage of mining and blockchain implementations by, for example, investing in select chipmakers making components.”

The Wellington Management Co. report mentioning cryptocurrency was authored by a team that includes experienced equity researched Matthew Lipton, along with Wellington veteran trading technologies principle, Lee Saba. Along with the report, an Investment Guide has been penned for the company’s clients. It includes information about “cryptoassets and blockchain”, as well as an FAQ comprising of basic questions those unfamiliar with the space are likely to ask.

Wellington Management’s decision to direct the immense capital at their disposal towards companies relating to cryptocurrency is likely backed by recent stellar performances by such stocks.  Companies such as Overstock, Nvidia, and Square have all seen their share price jump thanks to their involvement in the digital currency space. The firm responsible for creating chips for Nvidia Corp. and Advanced Micro Devices, Taiwan Semiconductor Manufacturing Co., has had a 34% increase in the price of share since the beginning of last year. During the same period, shares in Nvidia doubled in value.

Even companies with little to no discernible ties to blockchain (other than their name) have seen similar gains.  Long Blockchain, formerly Long Island Iced Tea, saw massive gains shortly after the announcement of their re-brand last December. Since then, the Nasdaq stock exchange has delisted the company for misleading investors. Naturally, this has caused their share price to drop.

Despite their obvious interest in the legitimate stocks of those companies closest to cryptocurrency, Wellington Management is reluctant to direct any of their $1 trillion fund towards direct exposure in the space. According to their report, their official stance is “cautious”.

The post $1 Trillion Investment Group Eyes Up Cryptocurrency appeared first on NewsBTC.

Crypto in February – a Simple Overview

Below you can find an overview of what happened in February in the world of cryptocurrencies – brought to you by SimpleFX CFDs trading platform. Whether you took some time off following the news and you’d like to catch up, or you just want to go over last month’s highlights, this article is for you. … Continue reading Crypto in February – a Simple Overview

The post Crypto in February – a Simple Overview appeared first on NewsBTC.

Below you can find an overview of what happened in February in the world of cryptocurrencies – brought to you by SimpleFX CFDs trading platform. Whether you took some time off following the news and you’d like to catch up, or you just want to go over last month’s highlights, this article is for you.

Despite condemning voices from the US and opposition parties within the country, Venezuelan President Nicolas Maduro made his way and launched a pre-sale of the Petro – an oil-backed cryptocurrency. This initiative was previously announced as an explicit attempt to avoid US sanctions. Maduro said that on the first day alone $735 mln of tokens were sold. A week later he reported that the number of certified purchase orders reached 171000.

If we look at President Maduro’s initiative, along with Venezuelan finance minister talking to his Russian counterpart about the Petro token and Iranian minister hinting at plans of launching the country’s own digital currency, an interesting trend seems to have emerged of cryptocurrencies being used by states to avoid limitations imposed within the traditional banking system.

Also in February, we witnessed another proof that Bitcoin has made it to the mainstream: it was brought up by Ellen DeGeneres and joked about in her programme. Although she did not spread much knowledge about the cryptocurrency, the sole appearance on this show is a notable development.

The Coincheck hack which happened in January is far from being a closed topic. As the reimbursements are dragging out and the company has so far enabled withdrawals only in yens, a class-action lawsuit has been filed by its customers. It will be interesting to observe if Coincheck indeed keeps the promise of repaying all its customers. In the wake of the event, the country’s Financial Services Agency announced plans to inspect fifteen not yet licensed crypto exchanges. Also, several of them are said to have started forming a self-regulatory group.

The need for cryptocurrencies regulations is still a prevalent topic in the opinions of the Western world authorities. In February we heard calls from French and German finance ministers and their US counterpart for discussing this subject during the upcoming G20 summit in March. This view was also supported by the IMF managing director. Next month we’ll see if the Western authorities move beyond official statements and into specific actions in this regard.

The post Crypto in February – a Simple Overview appeared first on NewsBTC.

The City of Berkeley Will Organize an ICO for Affordable Housing

TheMerkle Berkeley ICO Affordable HousingCryptocurrencies have proven to be an interesting way of transfering value. In a lot of cases, people seemingly take a liking to Bitcoin and a few altcoins. In the city of Berkeley, however, a brand-new cryptocurrency will be introduced and issued. This new currency will mainly be used to fund affordable housing in the area. Berkeley’s ICO is an intriguing Creature It is quite interesting to see how different people and regions respond to the “challenge” of cryptocurrencies. More specifically, this new form of money has certainly introduced a lot of interesting changes, even though not everyone sees the value in

TheMerkle Berkeley ICO Affordable Housing

Cryptocurrencies have proven to be an interesting way of transfering value. In a lot of cases, people seemingly take a liking to Bitcoin and a few altcoins. In the city of Berkeley, however, a brand-new cryptocurrency will be introduced and issued. This new currency will mainly be used to fund affordable housing in the area.

Berkeley’s ICO is an intriguing Creature

It is quite interesting to see how different people and regions respond to the “challenge” of cryptocurrencies. More specifically, this new form of money has certainly introduced a lot of interesting changes, even though not everyone sees the value in it right now. That situation is slowly changing in favor of this nascent industry, by the look of things. While we may not see mainstream cryptocurrency adoption anytime soon, the concept powering this new form of money is being explored behind the scenes.

Most recently, the city of Berkeley, California has been looking into creating its own cryptocurrency. While interesting, this should not come as much of a surprise. Individual US states have different opinions and regulations associated with cryptocurrency as of right now. California appears to be rather open-minded when it comes to this new form of money, although things are always subject to change.

The main reason why the city of Berkeley is taking this approach is that it wants to solve a very real problem. Housing in the city is not easy to come by, mainly because of the mounting prices. To counter this problem, the city will organize an ICO – Initial Community Offering – to fund affordable housing to support the homeless population in the city. It is evident this is a rather different business model from what most people first expect.

Berkeley City Council member Ben Bartlett explains it as follows:

This is not your typical ICO, but rather an initial community offering. We decide to explore new forms of finance in response to the cuts from DC and corporate tax cuts that took away our ability to fund affordable housing. There are more than one-thousand homeless people living in Berkeley, which is projected to increase by a factor of five in the coming years. Many cities, just like Berkeley, are under a funding assault – we have to think outside of the box in order to solve this problem. We did this a decade ago with PACE financing and now it’s time to do it again.

With nearly 1,000 homeless people in the city at the end of last year, it has become a matter of great importance to turn this situation around. Doing so is not all that easy, though, especially considering the recent changes to the US tax code for businesses. Many people fear this change will have a negative impact on the contractors building affordable housing across the nation. This is why the city of Berkeley wants to remain ahead of this problem and take a very different approach.

It is important to note Berkeley’s cryptocurrency is very different from traditional ICOs. Instead, it’s issuing bonds which are backed by municipal bonds, which can be put on the same level as a government-issued security. By tokenizing these bonds, the Berkeley City Council aims to appease residents who want to make their city a better place for everyone. If this effort proves successful, we may see similar efforts take place across the United States moving forward.