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Types of token

On July 31, the FCA issued its settled policy statement on cryptocurrencies in a document titled “PS19/22: Guidance on Cryptoassets.” The document represents an updated version of a consultation paper on crypto assets that was first released for public comment in January 2019, and intends to bring more regulatory clarity to existing types of digital assets.

In essence it describes 3 types of crypto assets.

  1. Exchange token: Referencing Bitcoin and Ethereum, the FCA described these tokens as “usually decentralized and primarily used as a means of exchange.” The regulator emphasized that such digital currencies do not fall under the regulatory scope of the FCA and is outside its remit.
  2. Security tokens: The FCA said it will be regulating security tokens as they are considered as digital assets with specific features that provide rights and obligations akin to specified investments such as shares or debt instruments
  3. Utility tokens: These fail the Howey test, and simply provide users with a product and/or service.

The FCA also stated that some stablecoins may fall under its remit, as they have characteristics of e-money or security tokens. Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).

For the avoidance of doubt, Scotcoin is an Exchange token.

The Missing Man and the Missing Millions

If you haven’t been following this,

https://www.bbc.co.uk/news/technology-47454528

in a few short bullet points:

  1. Crypto exchange has a few problems
  2. Owner of exchange “dies” in India
  3. Crypto wallets with £105m can’t be accessed “because he was the only person with the password”
  4. Wallets get opened.
  5. Hey presto! There’s nothing in them

Now call me cynical but if the money had been there, I would have said that maybe he was dead. But the wallets were apparently cleaned out months before and there are a whole lot of unauthorised wallets that the coin might have gone to. One person access = danger, under all circumstances. It’s why quoted companies usually don’t have the same person as Chairman and CEO. You only have to think of Robert Maxwell https://en.wikipedia.org/wiki/Robert_Maxwell

This is exactly why people don’t trust crypto-currencies. For a start more than one person should have had the password available to them and indeed maybe in this kind of fiduciary situation it should have been accessible only with two or more private keys. That raises all sorts of questions as well about storing passwords, and indeed it is one of the areas where we at Scotcoin are working to achieve some sort of standard.

From our own perspective security is more important than anything. The whole point of crypto-currencies is that you can rely absolutely on what the blockchain tells you, via its decentralised approach. If that trust breaks down, what is the point?

To be fair, as far as I know, it has always been an “inside” job where things have gone wrong. But part of the problem that there has been with ICOs and exchanges is that there has been no over-arching regulatory set up to make sure everyone plays fairly by the rules. In the wild west the cattle barons made their own rules until the Federal Government imposed their laws – and profited immensely. The same situation pertains within the world of digital currencies at the moment. The nature of the beast attracts charlatans and card sharps. Until regulation is everywhere there will always be poor benighted people who lose out. That’s one reason that Malta and its legislation is so important for the future and development of blockchains and crypto-currencies.

We at Scotcoin embraced regulation and disclosure a long time ago, and we fully expect to be able to comply with any and all regulations as they are enforced. Just one more reason to believe there is a solid, secure future for Scotcoin. Get your Scotcoin here or give some to a friend or valued employee with a Gift Voucher.

ICO? Take care

ICO? Take care…..

A Boston College research paper entitled Digital Tulips has found that fewer than half of all ICO projects survive more than 120 days after the completion of their sales of tokens to the public.

That is really scary. And this fact does not seem to be putting people off. Another $10-12 billion of ICOs will be out there during this year.

I was reflecting on the longevity of Scotcoin.

In the same way that most small businesses go bust within one to three years, it appears that ICOs ( ok it’s digital so it’s faster) go bust in 3-4 months.

It’s not surprising really. Most of them are designed as get rich quick schemes for the perpetrators with no economic or financial sense. That’s why some of the earlier coins and tokens have lasted – they have a purpose and a measurable impact, unlike their imitators. In the same way that it is said there are only 7 plots in total for literature, there may not even be 7 in crypto-currencies.

So Scotcoin, actually in existence for 5 years, is almost a granddaddy. In fact, in terms of country coins we might actually be the oldest – if anyone else knows better please let me know.

But I wanted to reflect on the words of an Economics Professor – Hyman Minsky. Being a true Keynesian myself – and believe me what we have had for a long time is NOT what Keynes said – I find Minsky’s idea of his Financial Instability Hypothesis extremely enticing. Basically he says on the economic upswing, people take greater and greater risks – until the bubble bursts and we end up back down at the bottom of the boom and bust cycle again. Sadly, Gordon Brown no more banished it than controlled it – and then made a mess of the Banks’ recapitalisation. In fact, it means we are on a treadmill we can’t get off. Digital money, espoused by Milton Friedman more than 20 years ago, has enormous attractions when all around is collapsing.

But Minsky said something very wise.

Everyone can create money; the problem is to get it accepted.”

That’s what we are working on at Scotcoin.

 

Scotcoin needs Bitcoin

Scotcoin needs Bitcoin!

Scotcoin needs BitcoinWe’ll buy your bitcoin for Scotcoin

Despite our new blockchain not needing Bitcoin, we will all need some Bitcoin in order to effect the migration from our present Counterparty Protocol.

It’s not very much per wallet but in order to send the existing coin to its new wallet, Bitcoin will be needed.

We are in the process of identifying those wallets where there is currently no Bitcoin. It is our intention that those that do not have any bitcoin in them will be sent enough to effect the migration.

To this end, we are making a special offer to people who HAVE some Bitcoin. If you buy Scotcoin for Bitcoin, we will give you a 15% discount to the present price on the exchange. The Bitcoin price will be at the GBP price as shown on Preev.com

If you would like to take advantage of this offer, please contact [email protected]

Rigging the crypto currency markets

Rigging The Crypto Currency Markets

The news that US regulators are investigating crypto currency exchanges for illegal rigging activities should come as no surprise to anyone.

When you are in the Wild West, anything goes, and can go on for as long as no one pulls the plug on it.

But this particular move is all part of the worldwide efforts by regulators and central banks to bring some oversight and order to the crypto world. Think of the Wild West and how law and order came to it over a period once the abuses became so much that Washington got involved. The same is now happening with blockchain and crypto currencies – not a surprise to us at Scotcoin. We have been preaching about how regulation was coming and how this was a good thing for over two years now. Our new permissioned blockchain will handle all these requirements as a prerequisite.

What this also emphasises is how right we were to be happy to remove from Bittrex. The total speculation and pump and dump culture had no part in what we have been building.

There are still people who view cryptos as get rich quick schemes. Indeed I was looking at some exchanges on our Twitter (which please follow!) where someone was looking to buy something he could rapidly sell at a profit. That is actually counterproductive in terms of the evolution of digital currencies. If people are to have trust in them, they have to be sure of the value at any given point. Arguably, the worst offender is Bitcoin – A year ago $1000, Christmas $20,000, now $6500. How on earth can any business plan its forward sales and cash flows dealing with that?

Ideally you want a very slow and steady increase in price over time. Most people will by now have forgotten the German “Wirtschaftswunder” (Economic Miracle) of the 1950s ,60s and 70s. It is a given nowadays that Germany is one of the pre-eminent economies in the world. Not so after WW2 and into the early 60’s. Ludwig Erhard – the then German Economics Minister, equivalent to our Chancellor of the Exchequer – believed there was a way to guarantee economic growth. It wasn’t quantitative easing on a grand scale (as people seem to believe erroneously nowadays). He believed that what gave business the confidence to invest and grow was certainty. So he said categorically that the money supply would grow at 2% pa for the foreseeable future – no more and no less. And he stuck to that religiously for 20 odd years. He was so successful he ended up as German Chancellor.

We at Scotcoin have the same philosophy. We don’t want ups and downs destroying trade. We want trade to grow and grow with confidence, in the way that the German economy grew mightily from the 1950’s onward. If we could replicate that in Scotland we would, as the saying goes, be quids in.

2018 – An Exciting Year For Cryptocurrency

2018 is going to be an exciting year for cryptocurrency… 2017 saw:

 

  • The first property deal conducted in Scotcoin
  • Scotcoin’s price in pizza established (very important for late night coding!)
  • Creation of a new Scotcoin wallet video
  • Our website had a bit of a facelift
  • Right at the end: We had a successful Proof of Concept delivered.

Visit the Exchange

As part of our ongoing commitment to security, the website recently had an overhaul including some work on the Scotcoin Exchange. You’ll now be able to buy Scotcoin directly from £Sterling.

 

bitcoin cryptocurrency

What will shape future demand for Cryptocurrencies?

bitcoin cryptocurrencyIn the past year, we have seen an explosion in the value of the global cryptocurrency market. Bitcoin’s price has increased by 850%, Ethereum’s by 2900%; and the market capitalisation of the cryptocurrency market has increased from around $13 billion to over $200 billion. Such a rapid increase reflects uncertainty surrounding the value of global currencies and increasing faith among investors in cryptocurrencies as an investment vehicle. While financial institutions and regulators now accept that crypto is here to stay, future demand will depend on widespread adoption and the response of policymakers. Read more

Cryptocurrency FAQs

What is block chain and what is cryptocurrency? Is there a difference?

Blockchain is the enabling technology that underpins cryptocurrency. Cryptocurrency is money based on trust in cryptographic, mathematical proofs.

 

Why has block chain and cryptocurrency become so popular?

Crypto currencies are not inflationary. They are cheaper to transact and do not rely on third party involvement – it is straight peer to peer . Negative perceptions of future monetary trends have accelerated acceptance.

 

How many people are currently involved in cryptocurrency and will interest keep rising?

Approximately 16 million Bitcoin wallets and at least the same again in other crypto currencies. These figures are rising exponentially all the time. Interest will continue to rise as adoption and use continues to rise.

 

How safe is block chain?

Blockchain is based on incredibly complex cryptography. Mathematically it is safer than the chances of finding one specific grain of sand not just on earth but in the entire universe.

 

What is the difference between cryptocurrency and the money in my wallet?

The value of a crypto currency does not rely on issuance of money by governments or Central banks – hence no quantitative easing and falling value over time of your wallets content.

 

Will Cryptocurrency overtake money as we know it?

Indications are that it may eventually – growth will be exponential then explosive. Actual cash transactions are already disappearing fast.

 

What is an e-wallet?

A piece of software that allows you to transactyour crypto coins – it does NOT store them. A crypto wallet (e.g. freewallet.io) enables you to store and spend them.

 

Where can I spend my cryptocurrency?

Dell, Microsoft, Overstock, Expedia etc, all accept Bitcoin. Scotcoin will shortly be accepted in over 2000 places in UK. It was recently used to buy a flat.

 

How can I use my cryptocurrency?

With your crypto-wallet (e.g. freewallet.io)

 

Do I need to pay CGT on any gains made?

Yes HMRC treats any gains from any source in exactly the same way. Around 1000 people in the USA paid tax on their Bitcoin earnings last year.

 

Can I leave cryptocurrency in my Will?

Yes, make sure your beneficiaries get your pass phase(s) at the appropriate time. Lose the pass phrase and you lose the wallet and its contents. THERE IS NO RESET.

 

 

Purchase of Scotcoin IP

The Scotcoin Project (TSP) is pleased to announce today that the Intellectual Property and all economic rights relating to Scotcoin have been bought from Scotcoin founder and first mover Derek Nisbet. The rights have been bought by Scottish businessmen Temple Melville and David Low for an undisclosed sum. The package consists of all rights to the name, use, trademarks and domain names relating to Scotcoin and The Scotcoin Project.
TSP has been granted the rights to develop Scotcoin as the cryptocurrency for Scotland and will be unveiling a number of initiatives over the next twelve months designed to increase the understanding, acceptability and usage of Scotcoin as a store of value and means of payment for an increasing range of goods and services.
Project Director Willie Fleming said “Today marks an important step in the evolution of Scotcoin. We are profoundly grateful to Derek Nisbet and applaud his vision. Now it is our job to carry on the work of making Scotcoin a viable alternative to sterling and educating Scots and the wider world about the advantages of strong cryptography, the blockchain and specifically Scotcoin. The Brexit vote underlines how important cryptocurrencies now are and how essential that we in Scotland have our very own – Scotcoin – to fall back on in times of uncertainty.”
About Scotcoin
Scotcoin is Scotland’s own cryptocurrency, freely tradeable and useable worldwide, securely sitting on the Bitcoin Blockchain.
About the Scotcoin Project
 The Scotcoin Project is an educational organisation that has applied for Community Interest Company status. It is dedicated to informing and educating the Scottish people and their friends about the Blockchain and cryptocurrencies. Its mission is to promote and assist with the creation of additional economic activity within Scotland through the use of Scotcoin as the nation’s cryptocurrency.

Contact
For further information contact Willie Fleming on 07494540764 or email [email protected]