Counterparty

MONDAY 24TH MARCH 2014

Mastercoin & Counterparty

What kills me about Mastercoin and Counterparty is that better designs were well known long before their birth.

Mastercoin-like designs were considered, coded and abandoned in 2012 as lame:https://github.com/jgarzik/smartcoin

Colored coin, N-way peg far superior – Jeff Garzik

 

TUESDAY 1ST APRIL 2014

Counterparty

What’s gotten me excited about Counterparty is the possibility to crowdfund a project with bitcoin and be able to pay dividends (in bitcoin) to investors using the blockchain alone.

No need to wait for kickstarter.com to accept BTC and approve each venture, because we can have pure peer-to-peer investment and return right now. – cantonbecker

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Tuesday 27th May 2014

HONEST COINS THAT SOLVE A PROBLEM OR HAVE POTENTIAL TO MAKE AN IMPACT

Counterparty

An honest attempt at a decentralized asset exchange. Currency issued through “proof of burn” which ensure an honest environment rather than the horrific launch of NXT or Mastercoin.

Done without the hype and and intense marketing of Ethereum. – Lee Banfield

 

Thursday 7th August 2014

Counterparty

Security audit completed by petertoddbtc with no major vulnerabilities discovered: https://t.co/xfbEFvDCkx – Counterparty

 

Saturday 9th August 2014

A Blockchain Based Stock Exchange

Overstock.com and its swashbuckling CEO, Patrick Byrne, are hoping to create a new kind of corporate stock based on the computer software that drives bitcoin, aiming to overhaul the stock market in much the same way that bitcoin overhauled how we store and exchange money.

On Tuesday afternoon, Overstock—one of the world’s largest online retailers, with $1.3 billion a year in sales—unveiled a webpage that explores how a public company could issue a “cryptosecurity” to potential investors.

In other words, all stock trades would be governed by tools in the hands of the general public rather than by a traditional stock exchange, such as the NASDAQ or the New York Stock Exchange, and these trades would be mathematically verified and recorded in an online ledger that anyone can view at anytime—something that, Byrne believes, could eliminate some serious flaws in the world of high-stakes trading.

Overstock has already held extensive discussions with the founders of a project called Counterparty, which offers software that could help drive such a cryptosecurity, and if he decides this kind of thing is possible, he intends to “open source” a blueprint of his plan, so that any other company can make use of it – Cade Metz

 

Thursday 9th October 2014

Counterparty (XCP)

Global e-commerce giant Overstock.com has hired the developers behind peer-to-peer decentralized exchange Counterparty to develop a new stock market platform powered by cryptocurrency technology.

The developers will work on a platform called ‘Medici’, an evolution of Overstock’s previously announced ‘cryptosecurity’ offering that will allow not only Overstock, but other businesses, the ability to issue cryptosecurities to the investing public.

With the announcement, Counterparty founders Robby Dermody and Evan Wager told CoinDesk that they have now turned their focus primarily to the Medici project, though this will entail work for Counterparty as Medici will be built on top of the Counterparty protocol. Dermody and Wagner are now working to find replacement candidates to cover their duties at Counterparty while working on Medici.

Launched in January, Counterparty quickly built itself into a market leader using a DIY approach, the bitcoin protocol and Counterparty’s own native currency XCP to facilitate digital asset exchange. “They’re true to the ethics of bitcoin, true to the open-source nature, they’re true to the principles,” Byrne added.

Byrne went on to laud Krellenstein, Dermody and Wager for their dedication to philosophy, math and computer science, as well as their decidedly non-Wall Street approach to finance.

At press time, the value of XCP, Counterparty’s native currency has increased more than 150% on the news. Pete Rizzo

 

Thursday 9th October 2014

Medici: Crypto Stock Exchange

Overstock.com is building software, based on the bitcoin digital currency, that could allow the big-name retailer to issue corporate stock over the internet, sidestepping traditional stock exchanges such as the NASDAQ and the New York Stock Exchange.

Code-named “Medici,” the project aims to democratize Wall Street in much the same way bitcoin seeks to democratize currency and payments. By operating separate from traditional stock exchanges and the big corporate banks, it could eliminate certain loopholes in the system and reduce the costs associated with issuing and juggling stock.

“There is an opportunity to recreate the financial world as we know it in the parallel universe that is the blockchain,” Byrne tells WIRED, referring to the online public ledger that keeps track of all bitcoin transactions. “We are writing rules for this whole new universe.”

Byrne is committing between five and ten percent of Overstock’s cash flow—”single-digit millions”—to the company’s cryptosecurity project. “Building this—and being the company that owns this—can be more valuable than Overstock,” he says. “It can be more valuable than Alibaba.” – Cade Metz

Byrne said the name Medici was chosen as a reflection of the project’s ambitious goals, as it takes the name of the famous 15th century Italian bank that made notable contributions to the fields of accounting and banking. Pete Rizzo

 

Monday 20th October 2014

Why Open Transactions? Because Appcoins Suck

Here’s the endgame as I imagine it:

* Bitcoin is base money. It is used as cash for most types of routine purchases.

* The blockchain also serves a few non-monetary roles, like hosting colored coins.

* OT is a contract-processing system. It is used for financial instruments (everything that is not base money): loans, stocks, bonds, trade credit, smart contracts, all types of credit in general

* In order to achieve federation, OT will rely heavily on colored coins

* Colored coins can’t host their own metadata in the blockchain, so they need some type of external metadata processing system in order to be useful.

* OT will become the standard metedata system for colored coins

* OT + colored coins makes Ripple, Counterparty, Mastercoin, Bitshares, etc all redundant.

* Users will prefer OT+CC to all the above because OT+CC doesn’t require them to purchase tokens from IPO investors.

* Ethereum is impractical for reasons beyond the scope of this post

* Openbazaar-style functionality is already being added to the reference OT GUI

* OT will survive because it has avoided the mandatory token approach, all the other projects will not.

Justus Ranvier

 

Monday 27th October 2014

Overstock’s Crypto Stock Exchange

“There are big things we can do from day one with regards to transparency,” said Robby Dermody, one of Counterparty’s cofounders.

In the long run, Mr. Demody said, peer-to-peer share trading over Medici would incur just 20% of the costs carried by the current, centralized system run by the Depository Trust & Clearing Corporation, the entity owned by Wall Street banks and brokerages that manages clearing for most securities in U.S. capital markets – Michael J. Casey

 

Friday 21st November 2014

Counterparty / Ethereum

What a coup! CounterpartyXCP,

* Grabs the good stuff – Ethereum tech

* Ditches the bad stuff – Wonky economics, new chain. This is precisely what I’ve been telling people to do since Ethereum appeared. Ethereum has good tech, broken economics, and useless chain.

Core ethereumproject mistake: They let the fund raising dictate the tech. Ass backwards. Did not put product first. “Coin IPO” now locks ethereumproject into separate chain, even if not the best tech (it is not). Short term seed dictates long term design.

Jeff Garzik

 

Tuesday 23rd December 2014

The current system is failing so badly. Medici will be there. They can’t even track who owns what anymore. I think in 7-10 years, this will all be over – Patrick Byrne

The Medici Stock Exchange is a platform that Overstock.com CEO Patrick Byrne is building on top of Counterparty.

The goal of the project is to build a cutting-edge stock market on top of the Bitcoin blockchain, and help Bitcoin do for Wall Street what it has already begun to do for payments.

Project Medici intends to provide a due-diligence service and front-end GUI for SEC compliant assets on Counterparty. Its purpose is to effectively bridge the users and the Counterparty protocol, and ensure all legal matters are satisfied.

Medici would also offer complete traceability of trades, as opposed to the Depository Trust & Clearing Corporation’s (DTCC’s) Continuous Net Settlement (CNS) system. The traceability of Medici would make any naked short selling very evident on the Medici exchange.

Robby Dermody of Counterparty adds that with the blockchain, ownership of stock is reduced to pure mathematics.  – Lee Banfield

 

Tuesday 23rd December 2014

The stock market is estimated as $55 trillion, and the bond market size is estimated at nearly $100 trillion. Not only we, but several individuals we know (who are involved very deeply with the financial industry in large firms at executive levels) feel that in the near future, most, if not all financial instruments like stocks and bonds will be traded on a blockchain of some sort. Just let that sink in… That is the potential here! – Counterparty

A blockchain based stock exchange can solve the problem of fractional reserve stocks. The public ledger provides “proof of ownership”. The shares on the blockchain are not contractual rights, they are true property rights. The shares are not duplicated.

Anyone can trade directly with anyone, and the settlement is done in an objective, incorruptible way via Counterparty’s automated escrow algorithm.

This cuts out the middle man and frees up trillion dollars of resources. The settlement is cryptographically proven, and fractional reserve of the coins is not possible within the system.

It’s A Worldwide Historic Revolutionary Innovation – Partick Byrne

Counterparty aims to become the first ever widely-used open, global financial platform.

Bitcoin and the decentralized asset exchange Counterparty are laying the foundations of the counter-financial system. – Lee Banfield

 

Tuesday 23rd December 2014

Advantages of a Decentralized Stock Exchange

* You actually have property rights

* No front running

* Trading is peer to peer (nobody in the way to take a cut)

* Escrow is very expensive: The advantage of issuing a crypto-security is cutting out middlemen for trades like brokers, custodians, clearing house(s), central securities depository etc. The financial industry is going to be disintermediated; and everyone else is going to profit.

* Crazy fast and transparent clearing and settlement

* IPOs are now very cheap and accessible to anyone (costs only five XCP)

* No gatekeepers. Censorship resistant. Keeps the oligarchy out.

* Nobody can seize your shares (Like the New Zealand government did to a shareholder of the encrypted storage company Mega)

* No trade or ownership limits

* Universal. Can buy the shares from any country in the world. Permisionless. No one can stop you from buying shares in a company.

 

Disadvantages of a Decentralized Stock Exchange

* Censorship resistance means a decentralized exchange will be rife with scams. A centralized exchange can provide quality control of its listings. The massive amounts of scams can be seen currently on Counterparty where the 6th most traded asset is a token pretending to represent ownership in MaidSafe. Medici will provide a due diligence layer where securities listed on its exchange are vetted.

* Blockchain bloat. Major stock exchanges handle a huge number of transactions (although most of these transactions are HFT that Patrick Byrne and Medici want to eliminate anyway) .

Trading approximately 1.46 billion shares each day, the New York Stock Exchange(NYSE) is the leading stock exchange in the world.  It has the capacity to trade up to 10 billion shares per day. The Bitcoin blockchain will need to scale to handle the massive number of transactions stock exchanges execute every day. The Bitcoin network is currently restricted to 7 transactions per second (Less than one million transactions per day) due to the bitcoin protocol restricting block sizes to 1MB. – Lee Banfield

 

Tuesday 23rd December 2014

Slow Confirmation Time, But Incredibly Fast Settlement Time

Counterparty implements a completely distributed, automatic and deterministic clearing house.

It is a trustless settlement engine. With Counterparty, the protocol itself is the escrow agent. The first decentralized settlement engine in the world.

In addition to not having to trust it not to scam you, it’s also much faster at settlement. The DTCC takes 3 days to settle stocks (compared to Bitcoin’s 10-60 minutes).

Saying that BTC is too slow completely and entirely misses the point and magnitude of its innovative properties. It’s like being suddenly confronted with a flat screen HD TV when the pinnacle of technology you’ve encountered was a radio, and the only thing you have to say is “ah but you can’t smell the contents”. – Counterparty

The financial markets as we know them have failed. In 10 years people are going to wonder “how did we ever think it was ok to operate that way?” – Patrick Byrne

“Transparent, robust markets are more important than instant confirmations.” – How to Issue A Crypto Securiy, overstock.com

Lee Banfield

 

Thursday 1st January 2015

Counterparty is by far the most interesting project to emerge this year and is the only “altcoin” I hold. At around $4 per unit, the Counterparty currency (XCP) is a very attractive investment considering its vast upside potential. – Lee Banfield

 

Sunday 11th January 2015

Celebrating the One Year Anniversary of the Counterparty Project

Over the last year, Counterparty has evolved from a simple idea into the most advanced platform for creating financial instruments on top of Bitcoin.

* In October, Overstock.com CEO Patrick Byrne announced partnership with Counterparty on a project named Medici, a front-end and portal to the decentralized stock exchange of the Counterparty platform. The goal of the project is to build a cutting-edge stock market on top of the Bitcoin blockchain, and help Bitcoin do for Wall Street what it has already begun to do for payments.

* November saw the celebration of the 100,000th transaction on the Counterparty network. On November 11th, we reached this major milestone and are seeing an increasing number of transactions on a daily basis.

* Without a doubt, the most exciting news in November came from our development team who have successfully ported Ethereum Project’s programming language and virtual machine over to the Counterparty platform and enabled the execution of Turing Complete Ethereum code directly on the Bitcoin blockchain.

It has been a great year, and we have even bigger plans for 2015: hiring new developers, releasing the desktop wallet, launching smart contracts on mainnet, electing the official Board of Directors, working with exchanges to support XCP, working with other business who want to build their products on Counterparty, and much more – Robby, Counterparty

 

Sunday 11th January 2015

Ethereum vs. Counterparty

Ethereum ppl very smart, can’t be counted out. However, Bitcoin network effect + Counterparty hard to overcome – Balaji S. Srinivasan, Andreessen Horowitz

 

Saturday 24th January 2015

Bitcoin Sidechains vs. Counterparty/Medici

Truthcoin is planned to be a sidechain of Bitcoin. This means you can switch between Bitcoin and Truthcoin’s CashCoin as much as you wish, whenever you wish

The goal of this project is to get external data into the blockchain reliably, and use that data efficiently and conservatively.

Truthcoin attempts to create a trustless oracle, which reliably absorbs accurate data into a blockchain for use in Prediction Markets. These markets have many applications (which include superior alternatives to Lighthouse, Counterparty/Medici, BitsharesX, and Ethereum, for a start).

If you’ve got only a few seconds to spare: Truthcoin in Six Slides.

truthcoin.info

 

Monday 6th April 2016

Overstock Buys 25% in Broker Dealer for $250k to Develop Cryptosecurities

Overstock.com says it has acquired a 24.9% stake in an unnamed “registered broker-dealer” as part of efforts to “develop and license software to trade cryptosecurities using the Bitcoin network and its protocols.” The company paid $250,000

A passionate supporter of Bitcoin and vocal critic of Wall Street, Overstock’s Patrick Byrne announced intentions to create a registered marketplace for “cryptosecurities” last year. Dubbed the “Medici” project, the aim is to “democratize Wall Street” and remove the middleman in securities trading, much like Bitcoin is envisioned for the movement of money.

Byrne did stipulate that he wants Overstock “to be an adult partner to everyone involved in this” and that he doesn’t “want to be an adversary.” The project aims to create a fully regulated platform and is working with a legal team seasoned with digital currency to see how this can be done.

A number of “Bitcoin 2.0″ protocols were proposed, the first one to be employed for active development being Counterparty. Recently, Counterparty developers left the project. According to Overstock, there was a shift in the project’s direction and other protocols are being incorporated –Leon Pick

 

Monday 13th April 2015

Counterparty (XCP)

ShapeShift.io has integrated Counterparty’s currency XCP, into its instant altcoin exchange platform. Customers anywhere in the world can now buy or sell XCP instantly with Bitcoin or over two dozen other leading cryptocurrencies with ShapeShift.io

“As perhaps the most famous Crypto 2.0 platform, Counterparty has demonstrated a track record of innovation and professionalism,” explained ShapeShift CEO and Founder Erik Voorhees, “The Counterparty asset is a natural fit for ShapeShift.”

Critically, ShapeShift’s model has set a new standard for security and consumer protection, by offering conversion services without the need for user accounts or deposits – PRWeb

Cointelegraph: Can you give us an idea of what else Counterparty has in the pipeline for 2015?

Evan Wagner (Counterparty): Mainnet release of the smart contracts system, maturation of the codebase, and improvements to the Desktop wallet

 

Monday 13th April 2015

Symbiont

Medici is currently being developed as part of a special division at Overstock, though the project’s original developers, Counterparty’s Robby Dermody and Evan Wagner, have since departed to start financial market platform Symbiont – Pete Rizzo

—————————————————————–

Since we left the Medici project we have not had any communication with Overstock.com so we can’t comment on what they are building or how they plan to execute on their vision.  What we can say is that we are big supporters of Medici and we do not see them as a competitor.

This platform is ostensibly geared for larger financial markets – Allen Scott

—————————————————————

Symbiont is building a platform for issuing and trading smart securities using blockchain technology.

Its goal is to improve and replace key infrastructure components of today’s financial markets by automating corporate actions, enabling peer-to-peer transaction settlement and eliminating counterparty risk – PR Newswire

—————————————————————

“Since we founded Counterparty over a year ago, our focus has consistently been on the creation and positioning of this technology as a solution for structural issues in the larger financial markets,” said Robby Dermody, co-founder of Counterparty and now President of Symbiont.

“Symbiont is the next step in achieving that goal,” Dermody said.

Symbiont will be using Counterparty and other blockchain-based technologies to solve specific, identified issues in several segments of the multi-trillion dollar securities market.

Symbiont’s technology platform will be based on Counterparty, but the Counterparty technology itself will remain open source. The Counterparty Foundation will remain unchanged, with both community and third-party industry voices being represented, and Counterparty co-founder Adam Krellenstein will continue to serve as chief scientist of the foundation besides his new role of Symbiont chief technology officer.

Symbiont already has raised significant interim funding, which will be followed by a formal Series A round investment of preferred stock – Giulio Prisco

Our choice comes as we wrap up large scale improvements to the Counterparty software suite, which has matured very rapidly (especially as of late). So far, over 180,000 Counterparty transactions have been made, often constituting a significant fraction of daily Bitcoin transactions.

In addition, there have been three comprehensive security audits performed on the codebase. With the approaching release of the Turing Complete smart contracts system on mainnet, we are at the point where less work needs to be done on the core protocol and more on tools and services that make use of it.

Symbiont is our next step in that direction. Because Symbiont’s technology platform will be based around Counterparty, the core Counterparty technology will remain open source, and will benefit from the greatly increased resources and sustainability this change brings.

In the near term, Symbiont’s team will work to upgrade Counterparty’s port of pyethereum, Ethereum’s Python-based virtual machine and Turing-Complete programming language to the latest proof-of-concept. This will make it production-ready for a mainnet release. In addition, we continue to make the core software more mature.

With our enhanced resources, the team will also continue to significantly improve the quality assurance and test coverage around the software – Robby and the rest of the Counterparty and Symbiont teams

 

Monday 20th April 2015

Counterparty (XCP)

We just crossed the 200,000-transaction mark.

It took us about 10 months to get to the 100,000-transaction mark, and in 4 months we went from 100 – 200 so that rate is definitely kicking up.

If we keep this rate up we’ll be at about 500,000 transactions by the end of the year, which is great –Robby Dermody, Counterparty

 

Monday 20th April 2015

Initially I was into the blockchain of things idea, but after spending the last 12 months pondering on it, I realized how foolish it is.

The bitcoin blockchain has absolutely no benefit, but many negatives on anything that does NOTrequire being immutable, fungible, non-discriminatory, and trustless. UBS does not want these features, and pizza delivery boys don’t care.

I would be glad to see a decent reason to use blockchain technology outside of bitcoin – its definitely not competition but interesting technology – but there are very few good usecases. Money needs these features, stock issuance can be interesting with these features. At best, this is over-engineering at its finest.

I think a lot of people are comparing the blockchain to the internet, in that it will eventually be part of every aspect of most peoples’ lives. However the internet was, like most advances, more efficient. The car is faster than the horse, the plane faster than the boat, the internet faster than the mail. Equally bitcoin is faster than government restrictions on international payments, the blockchain faster than an SQL database? No. That is not the case.

WIL, WHAT DO YOU THINK IS A COOL BLOCKCHAIN USAGE?

  • Counterparty – decentralized asset issuance (with trading)
  • ColoredCoins – decentralized token issuance
  • SandHill.Exchange – avoiding USG regulations (10/10)

William Dunne

 

Wednesday 6th May 2015

Buy on Amazon at Discounted Prices: Purse.io Integrates ShapeShift

Spend Tether, Dash, Litecoin, XRP, Monero, CounterParty, NXT & more at Amazon – Erik Voorhees

Supports the following countries: UK, Canada, Germany, Japan, China, France, Italy, Spain, India –ShapeShift.io

 

Monday 15th June 2015

Symbiont

* Symbiont secures $1.25 million funding from financial industry heavyweights

* Symbiont is building on the Counterparty platform and employs the entire core Counterparty team.

* Counterparty’s XCP token surged 31% to $1.60

* Symbiont’s first Smart Security will be issued later this year.

——————————————————

Symbiont, which plans to use bitcoin’s underlying technology to make it quicker and cheaper to transfer assets between buyers and sellers, has won the backing of several financial industry heavyweights.

The company, according to a statement Tuesday, has raised $1.25 million from a group including former New York Stock Exchange chief Duncan Niederauer, former Citadel LLC executive Matt Andresen, and two co-founders of high-frequency trading firm Getco LLC, Dan Tierney and Stephen Schuler.

Symbiont wants to sharply reduce the time it takes for most trades to settle, thereby reducing the need for a bank or investor to have its own money tied up in back-office operations. This use of blockchain, a ledger-like technology that underpins the digital currency called bitcoin, could give buyers and sellers almost instant confirmation their trades went through while also creating an indefinite and immutable record of the transaction.

“The blockchain not only has the potential to democratize markets, but to drive down the cost of doing business across all sectors,” Mark Smith, co-founder and chief executive officer of Symbiont, said in the statement. “This is a once-in-a-generation opportunity to leverage this previously unimaginable technology.”

“Symbiont is bridging the gap between Wall Street and the emerging blockchain ecosystem,” Niederauer, once the CEO of NYSE Euronext, said in the statement. “It’s an exciting, timely and much-needed development for the long-term health of the markets.” – Matthew Leising

 

Friday 14th August 2015

Symbiont Issues Securities on the Bitcoin Blockchain

Symbiont offered a live demonstration of its smart-contract trading platform

Symbiont was founded in March by Counterparty and MathMoney f(x) founders to create the first issuance and trading platform for smart securities based on the blockchain technology. Now, Symbiont has issued the first Smart Securities on the Bitcoin blockchain.

Symbiont’s live platform allows institutions and investors to issue, manage, trade, clear, settle and transfer a range of financial instruments more efficiently on decentralized and distributed peer-to-peer financial networks that are cryptographically secured.

Initial use cases for Smart Securities include corporate debt, syndicated loans, securitized instruments and private equity. According to the Symbiont press release, Smart Securities bring capital markets into the blockchain era.

Smart Securities transform the way that security issuance, management, trading, and clearing and settlement take place within global capital markets. Generically known as “smart contracts,” these instruments are programmable versions of traditional securities issued on any type of distributed ledger, such as a blockchain.

Once a security is issued onto the ledger, it acts autonomously, eliminating traditionally manual mid- and back-office functions. – Giulio Prisco

 

Tuesday 29th March 2016

Counterparty (XCP) Surges

Counterparty intends to bring Ethereum smart contracts to Bitcoin by leveraging the Ethereum Virtual Machine.

Counterparty noted that it spent the past year polishing this software on a test network, but that they are now ready to go live with Ethereum-style smart contract support on the main Bitcoin network.

The news immediately caused a sharp spike in the price of XCP, the token used within Counterparty’s system, seeing it rally more than 370% at its peak of 0.0095 BTC per token.

While we don’t know exactly when these new Counterparty features will drop onto the main Bitcoin network, it sounds like the bulk of the work is done, and Bitcoin smart contracts are ready for production. – Bitcoin Error Log

 

Saturday 2nd July 2016

In May 2014 I wrote a report looking to find a few coins that were potentially useful and not scams. I couldn’t find many because of the premined, instamined problem.

Here’s how the coins I analyzed on May 27th 2014 have performed since:

Category 2: Legitimate / Potentially Useful Coins

Counterparty

May 27th 2014: Market Cap = $7.9 mill

July 1st 2016: Market Cap = $6.4 mill

-19%

 

Key Points

  • Bitcoin’s market cap has grown from $7.3 billion to $10.5 billion, an increase of 45%
  • The Monero price has increased significantly
  • The Ripple price has performed surprisingly well
  • Counterparty and Namecoin disappointed

 

Nothing of Use Has Come From Ethereum

The whitepaper was published in January 2014, so we’re well into year 3 now and still nothing of use has come from it. Compare this to how much value bitcoin added in the real world at this stage. It just hasn’t happened with Ethereum.

There are big question marks over the blockchain’s integrity and immutability, and the project is open source so faces competition from Counterparty who are porting it (and also Rootstock, a sidechain which has plans for smart contracts on the bitcoin blockchain).

A $1 billion valuation is hard to justify, especially when considering that Counterparty is valued at around $7 million. It wouldn’t be a big surprise to see Ethereum’s market cap can crash 90 – 95% from here.

Counterparty is a functioning decentralized asset platform. There was no monetary scam when issuing the XCP tokens.

In 2014 I was very excited about Counterparty, but the progress has been disappointing (although it’s up around 4x so far in 2016).  A big part of this is the lack of useful assets been issued on the platform.

 

Reliability

Counterparty uses the bitcoin blockchain. They’ve had several security audits and it’s been around a while with no major vulnerabilities exploited. It does what it claims and the developers are legit.

 

Counterparty Adding Ethereum Functionality

A port of the Ethereum Virtual Machine, bringing full Ethereum functionality to bitcoin, is scheduled for August 2016.

It’s crazy how the Ethereum market cap is 150x higher than Counterparty’s. I expect this multiple to fall. There’s no sane reason why Ethereum should be worth 150x more than Counterparty. I trust the Counterparty platform to function better than Ethereum.

Despite the price disappointing since 2014 I still think Counterparty is the most interesting digital asset platform and has a bright future.

 

CONCLUSION FOR PLATFORM COINS

Disqualified Coins

Ripple (Centralized. Working with banks)

 

Coins with Too Many Problems

Ethereum (Too complex and insecure)

Namecoin (Hasn’t functioned well or got anywhere after many years)

 

Legitimate Coins

Counterparty

 

CONCLUSION: SUGGESTED PORTFOLIO ALLOCATION

A) Digital Currency Fund

Bitcoin 99%

Monero 1%

——————-

It really is all about Bitcoin. It’s just phenomenal compared to the alternatives. The opportunity cost of investing in something else is so high.

Monero is a worthy small addition as the most advanced privacy altcoin. Also, look to add a very small amount of Litecoin (smaller than Monero) when the price is historically low.

 

B) Digital Assets / Platform Fund

Counterparty 100%

——————————

This fund is completely separate to the main digital currency fund (and should be much smaller). It’s incredibly speculative and is more like a stock trading account.

 

Altcoin Buying Opportunities

  • Buy at 6 Month Lows
  • Buy at 90% Fall from Previous or All-time high
  • Buy When Bitcoin Dominance Index Strengthens to over 90%

Lee Banfield, July 2016 Report: The Most Legitimate Altcoins

 

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