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Why I think an identity verfication blockchain is a sound investment

  • Last Updated:
  • Aug 12th, 2017 11:23 pm
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Why I think an identity verfication blockchain is a sound investment

Let's move away from BTC and ETH for a moment and talk about blockchain as a nascent technology.

I've been spending the last month researching the technology and its various public and private applications, and it's clear to me that many industries are not going to take a 'tokenized' approach to fundraising, and this will leave speculators without an investment vehicle, aside from finding their parent company's stock on the dinosaur stock exchanges. This, of course, takes a lot of the fun out of blockchain if you can't bet on the winners and losers. For the time being however, tokens are very popular because it provides a source of crowdfunding for blockchain startups.

The first startups that I think will realize widespread adoption in this space are identity verification technologies. Many people have heard of Civic, but the fact is there are (as of Feb 2017) 21 different competitors jockeying in this space, and only a couple are going to be winners.

Why is this important?

Because identity verification is the blockchain that will integrate into every other blockchain. This is the logical starting point. Right now, we are relying on various Web 2.0 protocols to interface with the blockchain (Web 3.0). We fund our exchanges using online banking. We sign up for accounts using SMTP (Email), and we transact using banking/credit protocols. This means it's very expensive to go back n forth between 2.0 and 3.0, and this is reflected in the rates of exchange. It's also not very secure.

But seamless integration isn't the best feature of identity verification on the blockchain. Solving the 'Big Brother' dilemma is what really sets it apart. Trustless privacy. One of the biggest pain points of centralized data capture is that all of the data sits on a centralized server, can be (and often is) hacked and exploited. On top of that, people have a general discomfort with the idea of having their private information queryable by any nameless government official. This solves that problem by combining the immutable security of the blockchain, with the decentralized and private nature of it.

So that's why I'm long on identity verification software on the blockchain. So to recap..

1.) Natural starting point for the entire Web 3.0
2.) Less friction
3.) Private (not to be confused with anonymous)
4.) Immutable

Now the big question is, which one is going to win? Maybe someone else knows, because I would love to find out.
Last edited by Syne on Jul 4th, 2017 1:10 pm, edited 3 times in total.
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20 replies
Deal Addict
Jul 11, 2008
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Cute analysis syne.

For the next few years, any blockchain will be a good investment than index funds.
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Dec 12, 2003
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How easy is it to buy into these emerging identity blockchains?
[OP]
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mathiewannabe wrote:
Jul 4th, 2017 1:15 pm
Cute analysis syne.

For the next few years, any blockchain will be a good investment than index funds.
How "cute" is my analysis now? When you have a chance, go take a look at my MEW and tell me how "cute" my CVC holdings are.

Image
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Syne wrote:
Aug 11th, 2017 11:47 am

How "cute" is my analysis now? When you have a chance, go take a look at my MEW and tell me how "cute" my CVC holdings are.
I'm a crypto millionaire....

Even 1% of my port is bigger than your account size.

Come back to me when your account is over at least 6 figures.


edit: Ok i just looked. 2-3k$ in civic. Congratulations.
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mathiewannabe wrote:
Aug 11th, 2017 12:48 pm
I'm a crypto millionaire....

Even 1% of my port is bigger than your account size.

Come back to me when your account is over at least 6 figures.


edit: Ok i just looked. 2-3k$ in civic. Congratulations.
If you're a crypto millionaire why aren't you out here helping people? I'm just learning. Lots of people here are learning too. We could benefit from the wisdom of those who have been doing this for a while, especially those who have done well like yourself.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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Sr. Member
Sep 14, 2010
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But Vinny told everyone at 800$/btc that it was a bubble! and he tried to prevent it.

That guy is a joke.
Currently every shit coin that is on bitfinex is getting pumped.
OMG thou.. is legit since the Thai govt is going to use it.
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Syne wrote:
Aug 11th, 2017 1:41 pm
If you're a crypto millionaire why aren't you out here helping people? I'm just learning. Lots of people here are learning too. We could benefit from the wisdom of those who have been doing this for a while, especially those who have done well like yourself.


I don't have to help anyone. Because I've done well, I have to "help" people on a public forum? People I don't know, same people who i possibly won't like if I meet in person?
When I post my views which gets buried down by the same stupid people, I get ridiculed by idiots who know nothing about bitcoins. All of them are on my ignore list.
Why would I waste time like that?

My only real advice is: don't listen to anyone, and especially majority of people on RFD. They're sheeps.
Typical RFD mentality is invest only what you can afford to lose, invest in INDEX funds (couch potato), start RRSP/TFSA early. That's just how it is.
If you really want to learn, RFD is not where you should be lurking.

GurungBoi wrote:
Aug 11th, 2017 1:51 pm
But Vinny told everyone at 800$/btc that it was a bubble! and he tried to prevent it.
That guy is a joke.
Currently every shit coin that is on bitfinex is getting pumped.
OMG thou.. is legit since the Thai govt is going to use it.
Vinny is a very very poor speculator. If you do opposite of what he says, you'll probably make money.
I'm very very salty about OMG, I was going to go in big time on OMG at ico but bitcoinsuisse thing never got to my number in line.
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mathiewannabe wrote:
Aug 11th, 2017 2:17 pm
I don't have to help anyone. Because I've done well, I have to "help" people on a public forum? People I don't know, same people who i possibly won't like if I meet in person?
When I post my views which gets buried down by the same stupid people, I get ridiculed by idiots who know nothing about bitcoins. All of them are on my ignore list.
Why would I waste time like that?

My only real advice is: don't listen to anyone, and especially majority of people on RFD. They're sheeps.
Typical RFD mentality is invest only what you can afford to lose, invest in INDEX funds (couch potato), start RRSP/TFSA early. That's just how it is.
If you really want to learn, RFD is not where you should be lurking.
Funny you mention that. This is what Vinny wrote recently in the Telegram chat.

@vinnylingham
We underpriced the token sale for a reason. We capped the money raised for good reasons. We could have taken in north of $100m. What you're witnessing in the after market is the result of a well planned & executed process. We weren't greedy. We appreciated that the secondary market was important. We also capped everyone across the board. That purchasing power had to go somewhere. We now have 10,000+ people who love Civic and are our biggest supporters because of some key decisions we made and the restraint we exercised. Compare us to others and you'll quickly see why the m arket is responding the way it is when it sees the progress we are making. WE don't pay to be listed. We don't lend coins for shorting. We also did not give discounts to ANYONE! the list goes on. The company DNA is important - and we hold ourselves to a higher standard of fairness and we aim to do a lot of good in the world. We're not doing this just for the money. We're going to make the world a much better place. The network tokens we are able to distribute now will give us even more leverage to increase our presence. Network effects are just beginning. Thanks for all your support!

Gurungboi wrote:But Vinny told everyone at 800$/btc that it was a bubble! and he tried to prevent it.

That guy is a joke.
Currently every shit coin that is on bitfinex is getting pumped.
OMG thou.. is legit since the Thai govt is going to use it.
Say what you want about Vinny. He tweeted recently that he wants to turn Civickey into a NFP. Compare the work this guy is doing to a project like Filecoin, where you have to be an 'institutional investor' (fancy word for already rich) in order to invest. This is an actual classification/caste of person in the US. It's someone who is exposed to the best risk profiles simply because they can demonstrate they have existing wealth. To many, crypto is about overthrowing that system. And the kicker is that all they have is a whitepaper heavily ripped off from Sia's project.

There's a lot of crap in this game, and now that some of the 'bankers' are starting to get involved, we are seeing some of that Wall Street elitist mentality hit the ICO scene. It's nice to have someone like Vinny with a down to earth message and more importantly, a working product.

I highly suggest to anyone reading this pre-register for 0x ICO before 10pm PST tonight. They are using the Civic app to register and you need the Chrome Metamask extension, but this project, instead of having a high financial standard, expects a high technical standard in order to participate. If you value intelligence over money, these are the projects (Civic and 0x) that you need to be getting involved in.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

Check out caRpetbomBer's picks in this thread.
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Syne wrote:
Aug 11th, 2017 2:55 pm
If you value intelligence over money, these are the projects (Civic and 0x) that you need to be getting involved in.
I respect and value the legitimate discussion you are trying to have and I do not wish to derail it. I must admit though I find this statement ironic as the whole cryptocurrency price explosion is built on money over intelligence. I do not mean to say that the people who create crypto or invest in crypto are stupid; rather the price movement is driven by greed over intelligence.
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treva84 wrote:
Aug 11th, 2017 3:02 pm
I respect and value the legitimate discussion you are trying to have and I do not wish to derail it. I must admit though I find this statement ironic as the whole cryptocurrency price explosion is built on money over intelligence. I do not mean to say that the people who create crypto or invest in crypto are stupid; rather the price movement is driven by greed over intelligence.
+1 exactly. I do believe in the legitimacy of cryptocurrency, but the sheer volume going in on speculation and the number of currencies being issued is making me really suspect of what's going on currently . Currency in itself is not or should not be considered an investment. It is the utilization of currency, dollars, yen, euros, bitcoins, cowrie shells, pokemon cards etc. to purchase an investment is what should be considered an investment. Currency doesn't produce value, but it is a unit of value in itself.

So even though there is a good chance of some currencies going up in value, I am staying away. I only use Bitcoin for cheap money exchange and transfers at the moment.
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I can see why those who have earned their stripes in the traditional market would be wary of this. When you've succeeded doing one thing, it makes sense to be biased toward it.

The thing about cryptocurrency that drew me in, and the reason I'm becoming more passionate about it by the day, was its accessibility. Recently I bought 50 shares of HIP (marijuana stock) through my bank. I've had an RBC investing account for years and I figured, heck, why not diversify a bit. I checked my balance the other day and they sold half my shares because my investment (despite being $100) was hit by a quarterly fee. If I tried to trade those shares, they would also be hit with an $8 fee. Then if I ever tried to withdraw those shares, they would be taxed. This is exactly what institutional investment is saying.. If you're poor, get lost! You don't get to play! Yet in crypto, there are stories of people rolling the dice with $100, and a few years later, withdrawing $100,000.

That's not to say crypto is technologically accessible. That's still a few years away.. but the fact that an intelligent person who is willing to risk some time and a bit of money is able to join in speculative markets and can be exposed to the same risk profile as those with millions of dollars is something that should not be underestimated. Think about how many people in this world are 'unbanked'. Just wait until they get a chance at creating value in this space.

Crypto will change the world.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

Check out caRpetbomBer's picks in this thread.
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Syne wrote:
Aug 11th, 2017 3:30 pm
I can see why those who have earned their stripes in the traditional market would be wary of this. When you've succeeded doing one thing, it makes sense to be biased toward it.

The thing about cryptocurrency that drew me in, and the reason I'm becoming more passionate about it by the day, was its accessibility. Recently I bought 50 shares of HIP (marijuana stock) through my bank. I've had an RBC investing account for years and I figured, heck, why not diversify a bit. I checked my balance the other day and they sold half my shares because my investment (despite being $100) was hit by a quarterly fee. If I tried to trade those shares, they would also be hit with an $8 fee. Then if I ever tried to withdraw those shares, they would be taxed. This is exactly what institutional investment is saying.. If you're poor, get lost! You don't get to play! Yet in crypto, there are stories of people rolling the dice with $100, and a few years later, withdrawing $100,000.

That's not to say crypto is technologically accessible. That's still a few years away.. but the fact that an intelligent person who is willing to risk some time and a bit of money is able to join in speculative markets and can be exposed to the same risk profile as those with millions of dollars is something that should not be underestimated. Think about how many people in this world are 'unbanked'. Just wait until they get a chance at creating value in this space.

Crypto will change the world.
That's not my point. My point is that cryptocurrency or currency in itself shouldn't be considered an investment because owning currency on itself does nothing. Investing in my point of view is buying an asset that actually produces value . Buying a cryptocurrency is solely based on assuming people would value one unit of that currency higher than it is now. So, in one word, gambling.

I am not saying that you won't make money. If anything, there is a good chance that you can make money out of it. What bothers me about it is that there is no valuation I can take a look at to determine how to value these units. Currency in itself is the tool we value the things around us with. That in itself is not an investment. Also, if we are to take cryptocurrency as a serious thing, we shouldn't then value them against the CDN$ or US$. If we really want to adopt a cryptocurrency as a standard, people need to frame the value in the cryptocurrency, not in the traditional currency. So if that is the case, then the cryptocurrency, in a way, fails for it's purpose. You shouldn't really care whether the price of the cryptocurrency increases or decreases compared to the US$. You have the same amount of cryptocurrency.

Equating buying shares of marijuana stock via RBC and buying cryptocurrency are not equivalent. Cryptocurrency is equivalent to buying a foreign currency or performing forex trading. Other than getting more people to accept different cryptocurrencies in the world increasing it's value compared to a traditional currency, there is little to no value metric to go by. Also, if that is all you are buying in stock, there are much cheaper brokerages to use than RBC.
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mathiewannabe wrote:
Aug 11th, 2017 2:17 pm
My only real advice is: don't listen to anyone, and especially majority of people on RFD. They're sheeps.
Typical RFD mentality is invest only what you can afford to lose, invest in INDEX funds (couch potato), start RRSP/TFSA early. That's just how it is.
If you really want to learn, RFD is not where you should be lurking.
What do you think will happen in November? I know it's not wise to try to time the market and wait for a dip but with bitcoin at an all time high and my initial fund being worth barely a single bitcoin.. I'm conflicted.
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Thinking about this more there are in essence two factors involved in crytocurrency investing - one is the block chain process, the second is the currency itself - be it Ether, Bitcoin, or whatever new flavour of the month is popping up.

I think block chain is going to change things, but how can one invest in block chain without the currency? To date, they are all linked together, correct? I.e. if you want the Bitcoin block chain process you have to buy Bitcoin, as that's the only way to capture it. Same with Ether, etc. Is there an over-arching way to invest in block chain, without buying the associated crypto?

This is like the protocol wars that were taking place when the internet was being born. Ultimately the TCP/IP protocol won, and all of the others fell to the wayside. I think blockchain will be a winner take all (for a technology to be scaleable and utilized everyone has to be using it). Thus, is there anyway to bet on the race without trying to pick the winning horse.

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