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Showing posts from June, 2018

Cryptosphere: Regulatory Framework and Risk Management

Regulatory and risk issues related to cryptocurrency field can't be efficiently and with relatively high confidence resolved within the existing nation-state jurisdictions nor can the current international organizations' configuration handle such a new and highly complex fintech field.  We can put together the best regulatory and risk management frameworks but without having any real possibility to enforce them, we are simply stuck. Any way out of this complicated cul de sac? Here is the simple rule of thumb: When and where we can't deploy uniformed agents we have to create and put to work AI agents with the right toolset. In other words, the only reasonable possibility of solutions could be thought out and pursued through the advanced technology implementation and deployment. The two basic components of such a technical resolution are respectively  (a) Smart Contracts  (b) Swarm Intelligence.  We still do not have companies focusing specifically on devel

PERSONAL ICO: IPTO (Initial Personal Token Offering) as DIY Scholarship

This is an advice I am giving the young people who are willing to go to college, grad school and higher but they lack the resources for doing so.  I simply suggest to tokenize their future expertise, that is, create tokens to presell their future consulting services. But this is indeed nothing new: Ask yourself why many smart companies pay the grad school tuition for their employees or why the US Army, for instance, offers scholarships to recruits, etc.. Personal ICO based on tokenization is just a digital abstraction of the same exact process managed on an individual level and as a self-organized professional advancement.  Here is the simple DIY recipe:  Manage your future as a "startup" with a "personal business plan" then launch your IPTO (Initial Personal Token Offering).  Contact me for further insights.

Cryptocurrencies Correlation Coeficient: Bitcoin The King

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In the financial markets, the correlation coefficient is used to measure the correlation between two securities. When two stocks, for example, move in the same direction, the correlation coefficient is positive. Conversely, when two stocks move in opposite directions, the correlation coefficient is negative. (Investopedia).  If we extend the concept to cryptocurrencies and make the measurements for the last 30 days we obtain the table above. (Thank you, John Young!) Solid green represents the max linear correlation (+1) and the solid red for no linear correlation (0).  It is not difficult to see a small group walking in lockstep while solidly headed (dragged?) by King Bitcoin. I do have my explanation but am damn curious to learn about yours.  Please chime in.

Cryptocurrency Market Manipulation via Swarm Intelligence: A Crime or Cryptomonetary Policy Tool?

Is cryptomarket manipulation via Swarm Intelligence a financial crime? In all my previous analytical notes, I have always considered the cryptomarket manipulation from a negative point of view and as a potential financial misconduct. What if we reverse the perspective and analyze the manipulation via Swarm Intelligence in terms of a de facto implementation of cryptomonetary policies similar in their effects to those policies traditionally exercised by the Central Banks? In other words, the use of Swarm Intelligence allows managing both the inflation and the exchange rate for every single cryptocurrency offered across the world regardless of any given nation-state jurisdiction. It also allows creating a dynamic hierarchical structure among the cryptocurrencies based on a mathematically predefined and enforced correlation coefficient to Bitcoin as the (currently) leading cryptocurrency. Therefore, it would be enough to feed core cryptobots with the needed parameters just for Bitcoin

Cryptomarket Manipulation, Swarm Intelligence, and Market Stagnation: Cui Bono?

Can cryptomarkets survive the extensive manipulation based on bots running swarm intelligence? The global, massive and uninterrupted presence of 1000s of cryptobots manipulating their way throughout the globe, seems to wreak havoc across all the exchanges. The main critical signs of this crescendo are low and stagnating prices accompanied by the weakening volume of transactions both the current and the projected ones for the upcoming quarters. The manipulation largely follows the same game plan of a couple of weekly short-breathed P&D succeeded by annoying spoofs and apparently foolish wash trades. Some cryptobots are still profiting from yet possible arbitrage thanks to tiny but evanescent spread across the exchanges but the overall scene remains problematic. A first relevant question is whether there is any actual endgame in sight for this apparent trade lullaby.  The other question is whether bigger exchanges are doing some heavy lifting underneath to keep things going as t