Third halving period of Bitcoin

Bitcoin faced the third halving period, just recently.

Reuters: Bitcoin goes through third 'halving', falls vs U.S. dollar

Bitcoin is produced by the miner's contribution. Minors develop the blockchain to examine the rightness of each transaction. Some Bitcoins are rewarded to miner who approved the transaction. But the reward is programmed to be halved in a particular period. And, it came for the third time since Bitcoin emerged.

Approaching the halving period is said to raise the value of Bitcoin. It is because as same as the gold is worthy. Thus, reduced production of Bitcoin positively affect the price of Bitcoin.

However, it is a theoretical explanation. In real, the value of Bitcoin is determine between need and supply, or bid and ask. The market decides it. If many people believe Bitcoin will be worthy in the future, the price increases.

And now, the price of Bitcoin is fluctuating. A couple of days ago, it was decreased by more than 5%. It is perhaps that some whales sold massive Bitcoin.

The truth is in the dark. Nobody exactly prospect the proper price of Bitcoin. It will take a long time for Bitcoin to become an alternative of a fiat with trustworthiness of its value.

Bitcoin after corona shock

As the world is attacked by COVID-19, cryptocurrency is also in a peril.

The price of Bitcoin fell down by a half before corona virus outbreak. After that, it is recovering gradually. But the prospect is still uncertain.

Bloomberg: While coronavirus rages, bitcoin has made a leap towards the mainstream

Previously, Bitcoin was identified as a safe haven because it was independent from any governments or authorities. However, referring recent situations, the price is following the basal currencies.

In my sense, the idea that cryptocurrencies are invulnerable to financial crises is an illusion. Actually, the price of Bitcoin is determined by marketers absolutely. Any official forces cannot create new coins, different from fiats.

However, there are some factors to influence the price of cryptocurrencies outside from its mining process.

For example, when the energy cost is increased by oil shock, many miner will have to give up their work. It leads to downgraded reputation of Bitcoin.

Also, business confidence affects the price of Bitcoin, in my sense. In the boom, many investors are willing to buy Bitcoins. In a depressive state, they would not. Their feeling is somehow influential to the price itself.

In my opinion, recent breakdown of Bitcoin price was reflected with wide-spread pessimism of the market. I do not believe someone would by Bitcoin for safety now.

Therefore, the price of cryptocurrencies will be fracturing for a while, as COVID-19 pandemic will not be terminated soon.

Stock market collapsing due to corona virus

Monday, the New York Dow recorded a historic decline.

It was due to Donald Trump’s comment to the current situation of corona virus pandemic. He expected that the outbreak would last until this August, and the US may be headed for recession.

Forbes: Dow Plunges 3,000 Points As Trump Says U.S. ‘May Be’ Headed For Recession

The magnitude of water falling in this day was approximately 13%, the worst ever seen in the history of New York Dow Johns.

Also in Japan, many people is afraid of this worsening situation. Some remember the bitter memory of Lehman Brothers shock. Bitcoin and other crypt currencies were also seriously damaged despite they were deemed as a risk-off stock.

Trump looks a little anxious about this issue. Indeed, the opinion about when the corona virus spreading will be terminated is split among experts. Corona virus is vulnerable to warm temperature. But the COVID-19 is newly emerged one. Little facts have revealed regarding this tiny foe.

New Galaxy will equip Bitcoin wallet

Samsung is planning to introduce apps to manage Bitcoin in its new products.

According to the media, Samsung's Galaxy S10 will be released in coming March. There will be three models, Galaxy S10, S10+ with a larger screen, and S10e as an entry model. These smartphones will equip a new identification system using supersonic. As soon as you touch the screen, your fingerprint will be scanned to check your identity.

Also, cryptocurrency wallets will be installed in these smartphones. You can store Bitcoin, Etherium, and a couple of other crypto coins in the device.

Coin Telegraph: Samsung Announces Galaxy S10 Crypto Partners, Bitcoin and Ethereum Support

To be honest, I could not understand whether the new Galaxy S10 would be utilized as a hard wallet or not, through reading this article below. Considering that soft wallets are available in most smartphones without any additional mechanical chips, the new Galaxy will equip some exclusive chips in it.

Smartphone and cryptocurrency are very synergetic with each other. On the other hand, Samsung will be responsible for keeping the consumer's crypto coins secure. If someone breaches the security of Galaxy, to steal the coins, Samsung will certainly be sued by the user.

I bought Galaxy S9 just recently. I knew the new models would be released soon. Therefore, I got S9 at a low cost. I would not purchase the Galaxy S10.

Bitcoin lost by the death of CEO of an exchange

Up to 190m USD of cryptocurrency may have been lost because of the death of one person.

CNN: $190 Million in Crypto Gone Forever, How Canada’s Biggest Bitcoin Exchange Lost it All

QuadrigaCX was the largest bitcoin exchange in Canada. But it had been troubled for several months as users claimed it failed to make transactions. Recently, the company published an official explanation. According to this, since the CEO passed away it has no longer access to the cold wallet of Bitcoins it stores.

A cold wallet is one of the safest ways to store cryptocurrency. It is invulnerable to cyber attacks by outsiders. However, this means that ways to access the wallet are limited. If the secret key is lost, it is difficult to recover it.

The CEO of QuadrigaCX seems to have been the only person with the way to access the cold wallet. His death has made the cold wallet deserving million dollars a black box.

The CEO was suffering Chone disease, a chronic illness of intestine. Although it is not sure about the cause of his death, the CEO had to be prepared for unfortunate situations. A good company would never be collapsed by the death of the leader. It is the power of the organization.

Ripple's challenge for Tokyo Olympics

Ripple, a significant cryptocurrency, is considered to be an official coin in Tokyo Olympics planned in 2020.

Bitcoininst.com: PETITION TO MAKE XRP THE OFFICIAL CRYPTOCURRENCY OF TOKYO 2020 OLYMPICS GARNERS 7,500 SIGNATURES

Cryptocurrency such as Bitcoin has several characteristics. One of the advantages is that the transaction fee is minimal. We have to pay the exchange cost to gain foreign currency. Bitcoin and other cryptocurrencies are basically universal. Also, its transaction is decentralized. These features enable us to exchange cryptocurrency for lower cost.

Many foreigners will come to Tokyo to see the Olympic games. It is said that tourists had difficulty also in the transaction in Rio in 2016.

I believe that cryptocurrencies will not be available as a key currency for their high volatility. On the other hand, temporary possession and usage like a traveler's check can be feasible.

I hope cryptocurrency will be spread following the Tokyo Olympics.

Sequels in September 2018

Saturday, September 22, 2018
Zaif was broken

Following the fraud case, Fisco decided to financially support Zaif. It seems to dominate Zaif on this occasion. On the other hand, Zaif has stopped allowing the new registration of customers.


Friday, September 21, 2018
Singularity will come sooner than you expect?

Just yesterday, I read a book in which the author claimed that singularity would not come within this century. There is a broad dispute regarding future prospecting.


Monday, September 10, 2018
Exam for licensed psychologist

I checked my answers in this exam. As far as my evaluation, I am sure that I will get the license.

Zaif was broken

Zaif, a famous cryptocurrency exchange was hacked, just recently.

CNN: Newsflash: Japanese Cryptocurrency Exchange Zaif Hacked, $59 Million in Losses

A large amount of Bitcoin, Mona coin, and Bitcoin Cash were withdrawn from its hot wallet illicitly. According to the media, the total amount of loss reached 59 million USD.

Zaif is a Japanese exchange administered by Asayama. It reported having decided on accepting financial aid from Fisco, a popular finance company in Japan. It suggests that Zaif will be ruled by Fisco.

In Japan, Coincheck was also hacked resulting in more than 500 million USD in losses. There are many other examples of cryptocurrency exchanges being cracked. Attacking a cryptocurrency exchange seems now a trend for cybercriminals. If successful, the fruit is tremendous I believe money laundering of stolen cryptocurrency is another challenge. But unfortunately, there is no example that the criminal is arrested when using the coins so far.

Maintaining convenience and security consist of a dilemma. We pay not a few amounts of fees for bank exchange. Storing coins in a wallet is perhaps too risky for exchanges to assure the asset of customers. In the near future,  many exchanges will introduce more retro and inconvenient processes, such as manual input, for some particular transactions instead of usage of more vulnerable ways.

Line launches cryptocurrency

Japanese Line Corp will launch its original cryptocurrency.

Reuters: Japanese messaging app operator Line to launch cryptocurrency

Line is founded in South Korea. But, its service has been widely spread all over Japan. Now, Line is the most popular messenger application in Japan. Many people are fond of buying Line Stamps to use them for communicating with friends. Business persons also use Line as an instant messenger.

However, Line would not allow Japanese users to use cryptocurrency, "LINK." Line considers its utilization will be violating Japanese, as well as American, regulation.

SNS will be mated with cryptocurrency with a good relationship, I think. Now, some people send a small number of crypto coins for expressing thanks, as if giving tips.

Bitcoin will not replace credit card easily

In spite of repeated disgraceful scandals, Bitcoin is gradually becoming major in some people recently. Some famous financial companies have committed to support Bitcoin and other cryptocurrencies. Not only enthusiasts but also some aggressive investors deem Bitcoin as a subject of dealing.

Blockchain had been developed initially for providing a system of transaction. It does not need any central administrator. Also, the transaction fee is minimal because of its unique structure.

Then, anyone considers the possibility that Bitcoin will replace credit cards. Credit card payment is now dominant in most developed countries. But it burdens stores 3-4% of the fee. Some restaurants hate the cost so that they never accept credit cards. If Bitcoin payment becomes common, its transaction fee would be lower.

Forbes: Could Bitcoin Replace Credit Cards?

In my opinion, however, it is not likely that Bitcoin will perish credit cards. Credit cards companies have gained a global reputation, as its name suggests. In contrast, Bitcoin is still hardly trusted by many people. There are several fraud cases reported every day. I believe it will take a decade for Bitcoin to gain the trust equal to credit cards. At the same time, credit card companies will have transformed its business model.

Blockchain will solve property issues

After the rise of Bitcoin, cryptocurrency has attracted significant public attention. Though it is frequently argued about the value of Bitcoin itself, there may be no objection about the innovativeness of blockchain technology. Therefore, many people are considering alternative use of blockchain other than cryptocurrency.

Blockchain is a series of record which is hardly deliberately modified afterward. Thus, official records which should be kept as the original form for a long time are suitable for products with blockchain.

In reality, an attempt to record the land properties with blockchain is ongoing. If realized, the risk of conflict due to incomplete or destroyed official records will be remarkably reduced. The intellectual property will also be applicable to a similar scheme.

The Conversation: Blockchain-based property registries may help lift poor people out of poverty

We expect newly developed technology to make a change of the world dramatically. But, minor improvement of our daily life thanks to innovation is also crucial for the better future.

Cryptocurrency addition?

There are several types of pathological dependence. In the ICD-11 planned to be launched in the next year, Gaming disorder will be included in psychiatric diseases.

Recently, Professor Mark Griffiths at Nottingham Trent University, published a list of the symptoms of Cryptocurrency Addition. Addiction to cryptocurrencies is identified as a sub-type of online day-trading addiction.

Castle Craig Hospital: Addiction to Bitcoin Cryptocurrency day-trading

In his opinion, patients of cryptocurrency addition will meet these criteria.

Spend all their time and money on online trading;
Experience financial problems;
Chase their losses (they spend more to recoup their losses)
Constantly borrow from family and friends, or steal to fund their habit;
Believe a big win is about to happen;
Pawn their belongings to raise funds;
Lie to friends and family about the extent of their losses;
Experience mood swings, depression and hopelessness;
Constantly think about the next investment;
Become restless or irritable when attempting to cut down or stop;
Deny the problem;
Try many times to control, cut back or stop.

Looking through the description above, this criteria seems not have been authorized by a properly structured study. But in my sense, it is certain that some of the traders of cryptocurrency are suffering from addiction.

On the other hand, cryptocurrency addition is different from gambling disorder, in my opinion. Patients of gambling disorder are ruled by a fantastic idea that they become rich by winning the games. This idea is objectively absurd because almost all gamblings are disadvantageous for any players. However, cryptocurrency is still a developing scheme, and nobody can precisely estimate the magnitude of the market. Some of the traders who get the fortune will be called as innovators, not gambling patients.

On the contrary, I guess the neurochemical reaction occurring in the brain of people engaging in a cryptocurrency trading is quite similar to that of people indulged in an online game. And some of them need medical treatment.

Sequels in May 2018

Sunday, May 27, 2018
General Data Protection Regulation enforced

The enforcement of GDPR is still an issue around me. I myself is not worrying about it, but the department of advertisement is in chaos.


Saturday, May 26, 2018
Summit of the US and North Korea canceled

As expected, the US is suggesting a rearrangement of the summit with North Korea. It is expected that Kim Jong-un will have to accept a strong deal offered by Trump. The game of diplomacy is now quite advantageous for Trump.


Tuesday, May 15, 2018
Stabbing case occurred in Chiba

The suspect comments that he wanted to all four family members standing there. The prosecutor is planning to listen to victims after they get recovered from injury.


Saturday, May 12, 2018
Upbit case crashes Bitcoin price

The price of Bitcoin is still dandling. Recently, the price rapidly decreased to the lowest level in this year, but soon recovered.

Medical AI challenges

Yesterday, I attended a lecture regarding medical AI.

The speaker was the CEO of a startup engaged in this topic. He has medical doctor license. But immediately after graduating the medical school, he began to develop a company. The reason was that he noticed the situation of the IT around medical practice was too outdated to carry out satisfactory care for patients.

Now, he gathered a large amount of money through ICO, and attempts several projects for better solutions in medical science.

For example, his company is developing a system of automated construction of the medical record. In general, a medical doctor makes a consult with the patient for diagnosing him or her. After listening to the patient's complaints, the doctor has to take a note of the finding to construct the medical record. The system under developing will enable this process to be automated. If this system is complete, the doctor can focus on considering proper treatment with saving the time for typing the words on the PC.

There are several challenges to be overcome in the medical practice, according to the CEO. It was impressive that he thought the modern medical AI is far from satisfactory so that the outcome of engineers' work is no more beneficial to our society. Indeed, it is not easy to replace human doctors with an AI. Even if realized, an AI would not take a responsibility of decision making for medical practices.

The CEO also told us about blockchain. It is no doubt that blockchain is an innovative technology. He would like to utilize blockchain for sharing medical records of many patients. But there are some barriers before realizing it, such as the block size, security, and the switching cost.

To be honest, I am a shareholder of his company. Of course, I strongly believe he will be successful.

I hardly imagine the true impact of the AI on the medical practice. I am also engaged in a study regarding the utilization of medical AI. But the outcome is unsure so far. In my guess, AI will not replace human doctors. Rather, AI will support, or hopefully enhance, the doctor's treatment in the near future.

Crypto jacking

Since the internet emerged in the late 20th century, malware has risen to the mainstream of the internet security. There are several types of malware developed by malicious crackers; computer virus, trojan horse, and phishing sights in recent. And the latest tool is crypto jacking.

The Conversation: Cryptojacking spreads across the web

The scheme of cryptocurrencies is supported by many miners. Miners use their computer to confirm each transaction to be rewarded. Thus, they get crypto coins in exchange for providing electric power.

Crypto jacker is so-called a free rider of miners. If you unconsciously install a crypto jacking application, your computer will be misused to make crypto coins. Of course, the reward is paid to the cracker.

Crypto jacking is less harmful than typical malware for the owner of the computer. Nonetheless, the affected machine consumes an excessive charge.

According to the article above, crypto jacking also can be utilized properly. People visiting a website are asked to donate the organizer with mining. It looks a cool idea.

Anyway, malware will rise one after another. We should be always aware of their risk.

Upbit case crashes Bitcoin price

The price of Bitcoin crashed down recently.

Recently, the price is fluctuating. Its range was between 8000 and 9000 USD. Some media reported the trend had been changed to optimistic beyond the bottom of 6000 USD line.

However, it never broke the line of 9000 USD. One of the reasons was said to the custodian of Mt Gox which was bankrupted a few years ago. A large amount of Bitcoins is sold every ten days, according to some experts examining the blockchain.

In addition, Upbit, one of the largest crypto coin exchanges, which is located in South Korea, was investigated by the prosecutor. Upbit is suspected to have been dealing with too many coins to be permitted based on its capital.

Fortune: Bitcoin Slips Below $9,000 Following Korean Exchange Raid

Cryptocurrency exchanges have been hardly investigated so far because their radical and innovative structure is not applicable to the conventional protocol of investigation for financial institutions. If Upbit sells Bitcoins more than they possess without any compensating safeguards, it is no other than a fraud.

But, similar cases will happen whenever a new technology rises. The uniqueness of blockchain is recognized by many people. We should consider what it can do for the better future.

Sequels in April 2018

Sunday, April 29, 2018
Avengers: Infinity War, the greatest and the most desperate saga

I will see Infinity War again today. And I wonder how the sequels such as "Spider Homecoming 2," and "Docter Strange 2" will be made after the specific ending of Infinity War.


Friday, April 27, 2018
Korean leaders make commitment for peace

The intention of Kim Jong-un is still unclear. President Trump is willing to make a summit with Kim. We should be cautious about the change of the situation.


Sunday, April 15, 2018
Indian Bitcoin exchange hit fraud

The situation of India is complicated. Some people believe Bitcoin exchange is prohibited in India. indeed, the Indian government demands domestic banks not to deal with cryptocurrency exchanges. On the other hand, crypto-to-crypto trading posts are still available, furthermore, newly developing.

Bitcoin.com: Indian Exchange Launches 23 Crypto-to-Crypto Trading Pairs with Zero Fees


Sunday, April 1, 2018
The way to billionaire

Of course, this is an April fool joke. And even if I were a billionaire, I would not quit my job. I believe my work will contribute to making some people's lives better a little.

Kraken shut down Japanese exchange

Kraken, an American cryptocurrency exchange decided to abandon the trading post for Japanese residents.

Bitcoinist: KRAKEN EXCHANGE DECIDES TO CLOSE DOWN JAPANESE OPERATIONS

Kraken is famous for its security as well as the amount of deal. It has been opened for Japanese, but most traders use Euro.

Kraken says that the reason for the retreat from Japan market is to focus on another field. It suggests the possibility of reentry into Japanese operation in the future.

I think, however, that Kraken will be difficult to gain the official permission for cryptocurrency business in Japan. The Japanese government has established the registry of cryptocurrency exchanges. The administrator investigates the quality of the company before permitting the operation. There are only a few registered companies in Japan. Kraken is now a equivalents company, gaining temporary permission. It has to be officially certified as an exchange until the next March, otherwise, permission will be expired.

After the CoinCheck incident, the investigation by the Japan government became strict. Kraken seems to recognize it is difficult to get the certification.

It is very sorry for Japan residents to lose an alternative for cryptocurrency trading.

Indian Bitcoin exchange hit fraud

Coinsecure, an Indian trading post of cryptocurrency, said that it got stolen Bitcoins equivalent to millions of dollars.

Reuters: India's Coinsecure exchange says $3 million worth of bitcoins stolen

According to Coinsecure, a total of 438 Bitcoins was sent from secured wallets to an unknown address. Coinsecure declared that coins of customers keeping in the trading post would not be damaged because it would compensate the stolen Bitcoins with its own fund.

Coinsecure mentioned the necessity of health regulation by the authority so that functional trading would be guaranteed. But, Indian banks keep negative attitude to cryptocurrency exchanges.

As I wrote before, Coincheck, a famous Japanese cryptocurrency exchange, was struck by massive fraud. The value of stolen coins is estimated as hundred times of the Indian case.  Although Coincheck compensated the damaged assets, it was bought by Monex, a leading stock company.

Similar incidents will occur shortly, I am afraid. The more popular cryptocurrency becomes, the more crime case happens. It suggests the potential value of blockchain and cryptocurrency scheme, ironically.

The way to billionaire

I have written several times about bitcoin and cryptocurrency. So, people may be concerned about how much I possess.

To be honest, I bought a large number of bitcoins three years ago and sold almost all of them at the highest point.

Therefore, I have lots of money now so that I need not work as far as I live. Hahaha!