EncryptoTel weekly digest 14.05.20
New plans from Telegram, awaiting the halving and advice from Pavel Durov to IT entrepreneurs
Telegram refuses to launch TON blockchain platform
The Telegram messenger team decided to abandon the TON blockchain platform again amid litigation with the US regulator. “Today is a sad day for us here at Telegram . We are announcing the discontinuation of our blockchain project,” wrote Pavel Durov on his channel.
Investors will still be able to return “either a Gram or a potentially different cryptocurrency on the same terms as in their original purchase agreements.”
TikTok Downloads Reaches Over 2 Billion
According to Sensor Tower, the number of TikTok downloads from the App Store and the Google Play Store has reached 2 billion worldwide. Back in December 2019, the number of downloads was at 1.5 billion.
In the first quarter of 2020, TikTok became the leader among all applications by the number of downloads — more than 315 million installations.
Most often, TikTok was downloaded in India (611 million downloads of all time, or 30.3% of the global total). In second place are China (9.7%) and the United States (8.2%). 1.5 billion (75.5%) of the downloads came from the Android app store.
User expenses for TikTok services increased to $ 456.7 million, which is 2.5 times higher than in December 2019. Most of the revenue comes from the Chinese market (72.3% of the total). Following are the United States (19%) and the United Kingdom (2%). It is curious that India, which turned out to be the world leader in the number of TikTok downloads, was not included in the list of the most profitable countries for the application.
The third halving of the Bitcoin network will take place on on May 12
The cryptocurrency market is waiting for the long-awaited event — a reduction in mining rewards from the current 12.5 BTC to 6.25 BTC, and the level of inflation in the Bitcoin network will drop from 3.6% to 1.8%.
Halving occurs on the Bitcoin network every 210,000 blocks mined. In anticipation of this event, the Bitcoin exchange rate jumped to $ 10,000. Since March 12, when the price of Bitcoin almost doubled, cryptocurrency added more than 177%. Some investors predict that halving will lead to an increase in rates. Miners, whose revenue will be halved, will not sell coins, which will reduce the supply of new Bitcoin in the market and lead to an increase in demand for cryptocurrency. Also halving will lead to the shutdown of inefficient computers, whose profitability will fall, Messari analysts predict. Redistribution of the hashrate is also expected: mining farms will be concentrated in regions with cheaper electricity in order to reduce capital costs.
There is a direct opposite opinion. According to analyst Peter Schiff, after halving, demand for Bitcoin will drop, as they will be bought in the hope of future profits.
“When the supply of new coins is halved, the price should rise,” Dan Morehead, executive director of Pantera Capital wrote in April in a letter to investors.
Pavel Durov criticized Silicon Valley
The founder of Telegram Pavel Durov named seven reasons why you should not move to Silicon Valley. “America is not the best place of emigration for IT entrepreneurs,” he wrote in his telegram channel.
The main reasons why, according to Durov, you do not need to move to Silicon Valley, are as follows:
· USA — a tough police state leading in the number of prisoners;
· The health care system is inefficient, expensive and therefore inaccessible;
· Silicon Valley — “these are several villages with a limited cultural life”;
· “Mediocre” secondary education, the quality of which is lower than in other developed countries;
· High taxes, due to which “successful California residents give more than half of their earnings to the state”;
· The high cost of development, which is why it is prefered to work with specialists from Eastern Europe;
· Weak market prospects in the XXI century: in recent years, according to Durov, large projects, for example, TikTok, have arisen outside the Silicon Valley.
In his opinion, human rights and freedoms are better protected in Northern and Central Europe, “and economic growth in the 21st century is concentrated in Asian countries.”
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