THE HUNTING FOR THE BEST ‘BITCOIN’

Original Post – http://www.zeit.de/wirtschaft/2018-01/alternative-kryptowaehrungen-bitcoin-digitalgeld
All credits for Oliver Voss

The crypto boom has electrified the world. In Berlin, new companies are developing alternatives that will outpace digital money.

Dominik Schiener is a veteran in the encryption business. For six years, South Tyrol works with Bitcoin & Co. – and he’s only 21 at the time. “I’m there,” says Schiener. It started with computer games. At age 14, he was once the number one player in the world in the popular first person shooter “Call of Duty.” “But only because I pirated it,” laughs Schiener. But with the small and bigger blows, with which he gained advantages in games, entry into the computer world began. He started using his knowledge and selling virtual gaming accessories and stuff to other players. And the profits he invested in Bitcoinusiness, more precisely, he worked almost as a bitcoin accountant.

As all digital currency transactions are verified by users on the network and then stored in the so-called block chain. This is really just a long chain of data blocks. Every ten minutes a new block is added, saving the last transactions. To generate the block, however, complex arithmetic operations are required, which are performed by so-called miners. One of them was Schiener. As a reward, they receive the Bitcoins themselves being mined during mining. “I made a lot of money there,” says Schiener. Enough to move to Switzerland in 2013, to the famous “crypto valley” in Zug, where numerous digital currency manufacturers have their formal headquarters due to favorable tax rates and friendly regulatory conditions. There, Schiener founded his first startup and wanted to build a trading platform for encryption. Instead, he saw how much the encryption business can be changed: a year later, there was a first crash. “I lost all my money,” recalls Schiener. Just over half a million euros disappeared as quickly as it had arrived.

Bitcoin had quintupled its value in three months, and by the end of 2013 it rose to the then insane rate of more than $ 1,000. But then it dropped again almost $ 200. And just in early 2017, he again achieved the thousand mark, with which he started a new flight much more extreme.

Up to $ 20,000 bitcoin went up, they became a party and they hit the news. Schiener also benefits from the recent boom. However, it has long left Bitcoin behind. Instead, he moved to Berlin and started with the Norwegian David Sønstebø to develop his own cryptographic currency called IOTA.




THE MACHINES SHOULD PAY BETWEEN YOU WITH IOTA

It must be “the backbone of an autonomous machine economy.” “If you want to exploit the potential of the Internet of Things, you must allow the machines to pay,” says Schiener. He is not alone with this idea. If, in the coming years, autonomous vehicles carry passengers, they should pay for fuel or parking alone. “Whether vehicles pay for charging or parking on their own, they need secure technology,” says Johann Jungwirth, director of digital technology at Volkswagen. That is why he has met with Schiener, whose solution is called the “hochspannend” automanager. Development is still in its infancy. And yet other big corporations are also interested. Deutsche Telekom, Microsoft, Innogy or Volkswagen are among the companies that are currently watching or experimenting with IOTA. Bosch is also one of the partners, Stuttgart bought up “significant amount” of IOTA coins in late December and now wants to develop joint projects.

The IOTA price also rose sharply last year, from less than 20 cents in the summer sometimes more than five dollars. Sometimes, IOTA was one of the five most valuable cryptography in the world. More recently, it was in tenth place with a market capitalization of more than ten billion dollars.

As there are now more than 1,300 cryptocurrencies that make the Bitcoin competition. Some of the most promising ones like IOTA or Ethereum are being developed in Berlin. “Berlin is the crypto capital of Europe, if not the world,” says developer Ethereum, Fabian Vogelsteller. He sees the last advertising campaign with mixed feelings. Vogelsteller was also surprised by the huge increase and expected a Bitcoin accident much earlier. Therefore, many predecessors of the scene are reluctant to predict risk. “I have no idea where he’s going,” says Vogelsteller. From a great and lasting robbery to a multiplication in three or four years, everything seems possible. But the development of prices is also secondary to many players. More decisive is the development of the technology of blocks still young, that is still in the beginning. Many compare current development with the advent of the Internet. In search engines and networks, there were also providers like Lycos or MySpace until Google and Facebook prevailed. “We’re still in Lycos and MySpace for cryptography,” says star investor Klaus Hommels, who himself invested early in Facebook or Skype.

BLOCKCHAIN ​​TECHNOLOGY STILL IN YOUR CHILDHOOD

Catena Capital invests in cryptographic start-ups
And so many are looking for Google and Facebook in the world of cryptograms. Then also Miriam Neubauer. She is the managing director of Catena Capital, a new Berlin fund investing in startups in the industry. The first two have just moved into a new office in Markgrafenstraße’s backyard. Here is still relatively naked, the wallpaper was scratched fresh in a joint action of teambuilding the walls. Now, dozens of post-sculpture neon are stuck and form the word Cryptotank – the name of the newly opened community office. Two new companies have moved here. “Cryptonator is a network of marketers,” says Neubauer. In exchange for a membership fee, it provides analyzes on the performance of digital currencies and the potential of new competitors of Bitcoin, who bring their crypto coins into the market through so-called initial currency offers. Another start-up is called Herdius and is working on a market for digital currencies.

Because even as more and more people want to put their savings into the money of the soap opera, this is not so easy. In the world’s largest stock exchange, Coinbase, only three other currencies are traded alongside Bitcoin. Neubauer opens the Etherdelta page to buy another crypto field. However, she first has to send some Bitcoin to her account there. The address is a long number and a letter code that an Iban looks like a house number. For example, if the transaction is over, she could buy a few more chips. A special encryption for the pornographic industry, with which users can directly pay actors. “All software and bags for cryptocurrencies are not very easy to use,” says Max Kordek. This is exactly what the founder of the start-up Lisk wants to change. In the future, developers should be able to use the technology to build block chain applications as easily as applications or sites. Of course, he also finances it with his own digital currency called Lisk. When it was released two years ago, the start-up collected 14,000 bitcoins for that. At that time, they were already worth almost six million euros. But Kordek also benefits from the price jump: “Our capital has now grown to 200 million.” So, the number of employees has increased from two to 30, this year should be up to 60. Like many crypto start-ups, Lisk has big plans and a lot of virtual capital, but technically, there is still little to offer. Of course, he also finances it with his own digital currency called Lisk. When it was released two years ago, the start-up collected 14,000 bitcoins for that. At that time, they were already worth almost six million euros. But Kordek also benefits from the price jump: “Our capital has now grown to 200 million.” So, the number of employees has increased from two to 30, this year should be up to 60. Like many crypto start-ups, Lisk has big plans and a lot of virtual capital, but technically, there is still little to offer. Of course, he also finances it with his own digital currency called Lisk. When it was released two years ago, the start-up collected 14,000 bitcoins for that. At that time, they were already worth almost six million euros. But Kordek also benefits from the price jump: “Our capital has now grown to 200 million.” So, the number of employees has increased from two to 30, this year should be up to 60. Like many crypto start-ups, Lisk has big plans and a lot of virtual capital, but technically, there is still little to offer.

One Reply to “THE HUNTING FOR THE BEST ‘BITCOIN’”

  1. An attention-grabbing dialogue is price comment. I believe that it’s best to write more on this subject, it won’t be a taboo topic but generally people are not sufficient to talk on such topics. To the next. Cheers

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