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Cryptocurrency discussions / Re: Is the future of crypto good or bad?
« on: November 03, 2018, 04:02:29 PM »
the future of crypto is good.soon we can buy,sell in any shopping or online using crypto coins.
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Bitcoin Forum / Bitcoin's White Paper Was a Model T for Payments
« on: October 28, 2018, 01:19:47 PM »
In 1991, my patent for a multi-level distributed computer network was granted. I was working on graphics rendering problems requiring significant amounts of CPU power and wanted to distribute computing-intensive tasks to a network of devices.
The goal was to have a number of computers performing simple tasks to contribute to a single result. Creating this system, though, was a complicated task.
After the publication of Satoshi's white paper, that's no longer the case. Outlined in the paper was a peer-to-peer payment system poised to disrupt the financial industry, one that gave people the power to conduct transactions across a distributed network without the need for trusted middlemen.
As a cryptography geek, I was enamored.
Seeing the concept from my patent re-emerge nearly 20 years later, I was excited to see that now was finally the right time for this idea to succeed.
At the core of this white paper was the chance to democratize value exchange. It has the ability to protect consumers should another financial crisis hit by allowing them to continue exchanging money without high interest rates and inflation. Using cryptocurrency also prevents expensive transaction fees and promotes financial inclusion, especially in developing countries.
The exchange of digital assets provides the underbanked and unbanked population access to global markets that they wouldn't have otherwise and offers a massive business opportunity for providers.
A Model T for payments
The most important aspects of Satoshi's decentralized network that aided in this democratization – transparency and consensus – are what make this such a revolutionary concept.
When you pay your friend through Venmo or send a check to your landlord, you have no view into the transaction process. Satoshi wanted to provide users with the ability to know where their money was every step of the way. In that same vein, when you send your payment into the abyss, you are trusting a third party (AKA your bank of choice) to transfer your funds correctly and lawfully.
The consensus protocol for bitcoin transactions requires every participant to enforce the rules, this way no one party can control what makes a transaction valid.
I often compare this disruption to that of the Model T. Before it was created in 1908, cars were seen as a luxury item that most could not afford. The Model T was a practical and affordable option, democratizing the car industry. Soon after, others followed suit and started to create different types of affordable – and sometimes better – cars.
Likewise, bitcoin was a catalyst for the industry, and thousands of others have since been inspired by it and iterated on blockchain technology.
Maybe bitcoin won't survive (just like the Oldsmobile), or maybe it becomes the ultimate store of value. No one knows for sure. What is clear is that there won't be only one winner.
There are, and will continue to be, different use cases for cryptocurrencies, including payments, stores of value and smart contracts – think of these as race cars, trucks and minivans, all serving a different purpose but derived from the same invention.
A coming change
And that's the key – our world adjusted to the democratization of cars by building roads, highways, race tracks, and despite the hesitancy from regulators and institutions. We'll see the same with blockchain.
Without Satoshi and bitcoin, this industry wouldn't be what it is today. But make no mistake, we are still in the very early days and will continue to see new ways to apply blockchain.
It's been over 100 years since the Model T's creation, and the industry is still coming out with new concepts such as the driverless car and all-electric vehicles.
It's always hard to imagine what applications the future holds for new technologies, but there is a clear pattern emerging in cases where technology has drastically increased the speed of something while simultaneously decreasing its cost.
The Internet did this for data exchange. We share massive amounts of data across the globe instantly and the technology is invisible. It doesn't matter where in the world you are or how much you want to share – it is just something we can do now.
Blockchain is doing this for payments. If the pattern holds, the next decade will bring an explosion of low-cost, high-speed payments that will transform value exchange the way the Internet transformed information exchange. Payments will just be something we can do now.
Model T image via Shutterstock
The goal was to have a number of computers performing simple tasks to contribute to a single result. Creating this system, though, was a complicated task.
After the publication of Satoshi's white paper, that's no longer the case. Outlined in the paper was a peer-to-peer payment system poised to disrupt the financial industry, one that gave people the power to conduct transactions across a distributed network without the need for trusted middlemen.
As a cryptography geek, I was enamored.
Seeing the concept from my patent re-emerge nearly 20 years later, I was excited to see that now was finally the right time for this idea to succeed.
At the core of this white paper was the chance to democratize value exchange. It has the ability to protect consumers should another financial crisis hit by allowing them to continue exchanging money without high interest rates and inflation. Using cryptocurrency also prevents expensive transaction fees and promotes financial inclusion, especially in developing countries.
The exchange of digital assets provides the underbanked and unbanked population access to global markets that they wouldn't have otherwise and offers a massive business opportunity for providers.
A Model T for payments
The most important aspects of Satoshi's decentralized network that aided in this democratization – transparency and consensus – are what make this such a revolutionary concept.
When you pay your friend through Venmo or send a check to your landlord, you have no view into the transaction process. Satoshi wanted to provide users with the ability to know where their money was every step of the way. In that same vein, when you send your payment into the abyss, you are trusting a third party (AKA your bank of choice) to transfer your funds correctly and lawfully.
The consensus protocol for bitcoin transactions requires every participant to enforce the rules, this way no one party can control what makes a transaction valid.
I often compare this disruption to that of the Model T. Before it was created in 1908, cars were seen as a luxury item that most could not afford. The Model T was a practical and affordable option, democratizing the car industry. Soon after, others followed suit and started to create different types of affordable – and sometimes better – cars.
Likewise, bitcoin was a catalyst for the industry, and thousands of others have since been inspired by it and iterated on blockchain technology.
Maybe bitcoin won't survive (just like the Oldsmobile), or maybe it becomes the ultimate store of value. No one knows for sure. What is clear is that there won't be only one winner.
There are, and will continue to be, different use cases for cryptocurrencies, including payments, stores of value and smart contracts – think of these as race cars, trucks and minivans, all serving a different purpose but derived from the same invention.
A coming change
And that's the key – our world adjusted to the democratization of cars by building roads, highways, race tracks, and despite the hesitancy from regulators and institutions. We'll see the same with blockchain.
Without Satoshi and bitcoin, this industry wouldn't be what it is today. But make no mistake, we are still in the very early days and will continue to see new ways to apply blockchain.
It's been over 100 years since the Model T's creation, and the industry is still coming out with new concepts such as the driverless car and all-electric vehicles.
It's always hard to imagine what applications the future holds for new technologies, but there is a clear pattern emerging in cases where technology has drastically increased the speed of something while simultaneously decreasing its cost.
The Internet did this for data exchange. We share massive amounts of data across the globe instantly and the technology is invisible. It doesn't matter where in the world you are or how much you want to share – it is just something we can do now.
Blockchain is doing this for payments. If the pattern holds, the next decade will bring an explosion of low-cost, high-speed payments that will transform value exchange the way the Internet transformed information exchange. Payments will just be something we can do now.
Model T image via Shutterstock
3
Cryptocurrency discussions / What is Loom Network?
« on: October 28, 2018, 12:32:00 PM »
Loom Network is an Ethereum-based platform built for social media and online games. The platform is open source, scalable, forkable, and performant. Full-featured blockchains called DappChains exist on Loom – in essence, these are sidechains optimised to scale data. Loom SDK is a platform which makes it possible for developers to create their own sidechains.
The LOOM token (an ERC20 token) acts as an all-access pass for all dApps and DAppChains running on the platform, and its balance is checked every time a digital asset transfer attempt is made between DAppChains, DApps, and the Ethereum network. The minimum token required to execute a complete digital asset transfer is 1 LOOM token. The network is lightning fast and all tokens are backed by the Ethereum blockchain. The network continues to grow with the solutions it is offering – this growth is likely to help the Loom network flourish in the future and scale its trading volumes as more tokens are brought into use.
The LOOM token (an ERC20 token) acts as an all-access pass for all dApps and DAppChains running on the platform, and its balance is checked every time a digital asset transfer attempt is made between DAppChains, DApps, and the Ethereum network. The minimum token required to execute a complete digital asset transfer is 1 LOOM token. The network is lightning fast and all tokens are backed by the Ethereum blockchain. The network continues to grow with the solutions it is offering – this growth is likely to help the Loom network flourish in the future and scale its trading volumes as more tokens are brought into use.
4
Cryptocurrency discussions / What Are Masternodes?
« on: October 27, 2018, 07:47:19 AM »
Masternodes, a term you have undoubtedly heard in recent crypto times, and if you haven’t this is the perfect article to read. We will discuss everything there is to know about these types of networks which enable a frictionless blockchain experience.
The blockchain as a distributed, decentralized implementation needs a method to create a proof of transactions. This provides immutability to the ledger, and in the case of Bitcoin, it’s proof of work, which means that it is being actively mined by hardware.
That’s not the only way to create a state of consensus and generate the proof necessary. Alternative algorithms include POS, dPOS, and Masternodes. There are two things to point out here. First, there are more algorithms out there, because people keep on experimenting. Two, some would argue that masternodes are simply POS blockchain nodes.
And that’s where I would disagree, but not completely because that’s what they are in essence. There is more to the story though, and we will get to that in just a second. First, we will talk about what masternodes are and their role in securing blockchain networks.
Masternode Basics
Let’s assume that you are familiar with how Bitcoin Core operates, and we can start from there. In the Bitcoin ecosystem, nodes do not have any responsibility to verify transactions or are being rewarded for their role in maintaining the security of the ledger.
They are being used by large holders, companies, mining establishments, service provides to make sure they have their own copy of the ledger and access to increased capabilities to write on the blockchain.
In masternode blockchains, nodes play a direct role in the processing of transactions, which are approved through the deposit, i.e. proof of stake that the node owner has invested in the node. They also have a full copy, and they run 24/7, but unlike Bitcoin’s nodes, they receive rewards for their role in securing the blockchain.
Depending on the implementation of the particular blockchain, masternodes can:
Increase the privacy of transactions
Process instant, carbon-free transactions
Participate in decision making
There are more examples, and I’m not an expert on these nodes. Actually, I am in the process of setting up one, so I am using that experience to write this article.
What do I mean setup?
Well, this is the difference that I wanted to illustrate. Unlike regular POS blockchains where you lock up your coins to facilitate security and transactions, there is more to the story with masternodes, and that comes with the fact that you need to set it up.
You need an actual server to be able to run masternodes, a server that is connected 24/7 to the internet and can hold the entire blockchain. It’s not that complicated if you are tech savvy, but if not, you are going to need help.
Once I am finished with that process I will create a short guide for the coin that I am creating a node for, but I am trying to find the best solution because there is an investment involved in the process.
Keep in mind that developers are continually innovating, and the best resource to learn more about a particular masternode implementation is through the official website itself.
Running a Masternode
In order to run a masternode you need a few things:
Virtual Private Server / Your own server
Collateral for running the masternode (Decided by coin developers)
Dedicated IP address
Storage space
Getting it started is not a problem, because teams provide incredible amounts of support during your process of starting up a node on their blockchain. It’s going to make you some money (probably, not investment advice), but it’s going to help them secure the network better. It’s a win-win, which is why once you have decided, developers will provide you with all necessary information about the process.
Masternode Investment Risks
There are risks associated with the process of running any particular masternode coin. But these are relatively easily mitigated by making a great choice. How do you make a great choice? Just like with anything else with life, find something that consistently presents high quality.
Just like there are sh*t coins, there are sh*tmasternodecoins. Avoid those.
There is a Medium article I recommend having a look at in the last section of this article. Find masternode coins that are more about the long-term than the ROI of investments. Especially with POS coins like these, you don’t want to have too high of an ROI, because that means the number of coins entering the ecosystem will continually increase, causing inflationary price movements on the rankings.
Treat it like an ICO, and get serious about evaluating the levels of potential that these projects have. Take the time to learn about them, and invest energy before you invest money. Great projects care about the community, and they care about the long-term, and if these elements are missing, then just get out. You don’t want to be stuck into a money-making machine that is only making money for the shady developers running the show.
The blockchain as a distributed, decentralized implementation needs a method to create a proof of transactions. This provides immutability to the ledger, and in the case of Bitcoin, it’s proof of work, which means that it is being actively mined by hardware.
That’s not the only way to create a state of consensus and generate the proof necessary. Alternative algorithms include POS, dPOS, and Masternodes. There are two things to point out here. First, there are more algorithms out there, because people keep on experimenting. Two, some would argue that masternodes are simply POS blockchain nodes.
And that’s where I would disagree, but not completely because that’s what they are in essence. There is more to the story though, and we will get to that in just a second. First, we will talk about what masternodes are and their role in securing blockchain networks.
Masternode Basics
Let’s assume that you are familiar with how Bitcoin Core operates, and we can start from there. In the Bitcoin ecosystem, nodes do not have any responsibility to verify transactions or are being rewarded for their role in maintaining the security of the ledger.
They are being used by large holders, companies, mining establishments, service provides to make sure they have their own copy of the ledger and access to increased capabilities to write on the blockchain.
In masternode blockchains, nodes play a direct role in the processing of transactions, which are approved through the deposit, i.e. proof of stake that the node owner has invested in the node. They also have a full copy, and they run 24/7, but unlike Bitcoin’s nodes, they receive rewards for their role in securing the blockchain.
Depending on the implementation of the particular blockchain, masternodes can:
Increase the privacy of transactions
Process instant, carbon-free transactions
Participate in decision making
There are more examples, and I’m not an expert on these nodes. Actually, I am in the process of setting up one, so I am using that experience to write this article.
What do I mean setup?
Well, this is the difference that I wanted to illustrate. Unlike regular POS blockchains where you lock up your coins to facilitate security and transactions, there is more to the story with masternodes, and that comes with the fact that you need to set it up.
You need an actual server to be able to run masternodes, a server that is connected 24/7 to the internet and can hold the entire blockchain. It’s not that complicated if you are tech savvy, but if not, you are going to need help.
Once I am finished with that process I will create a short guide for the coin that I am creating a node for, but I am trying to find the best solution because there is an investment involved in the process.
Keep in mind that developers are continually innovating, and the best resource to learn more about a particular masternode implementation is through the official website itself.
Running a Masternode
In order to run a masternode you need a few things:
Virtual Private Server / Your own server
Collateral for running the masternode (Decided by coin developers)
Dedicated IP address
Storage space
Getting it started is not a problem, because teams provide incredible amounts of support during your process of starting up a node on their blockchain. It’s going to make you some money (probably, not investment advice), but it’s going to help them secure the network better. It’s a win-win, which is why once you have decided, developers will provide you with all necessary information about the process.
Masternode Investment Risks
There are risks associated with the process of running any particular masternode coin. But these are relatively easily mitigated by making a great choice. How do you make a great choice? Just like with anything else with life, find something that consistently presents high quality.
Just like there are sh*t coins, there are sh*tmasternodecoins. Avoid those.
There is a Medium article I recommend having a look at in the last section of this article. Find masternode coins that are more about the long-term than the ROI of investments. Especially with POS coins like these, you don’t want to have too high of an ROI, because that means the number of coins entering the ecosystem will continually increase, causing inflationary price movements on the rankings.
Treat it like an ICO, and get serious about evaluating the levels of potential that these projects have. Take the time to learn about them, and invest energy before you invest money. Great projects care about the community, and they care about the long-term, and if these elements are missing, then just get out. You don’t want to be stuck into a money-making machine that is only making money for the shady developers running the show.
5
Cryptocurrency discussions / Bitcoin Beginners Guide Split Forks
« on: October 27, 2018, 06:45:28 AM »
One of the latest news in the Blockchain and Crypto Currency communities is that Bitcoin (BTC) will be subjected to a “Coin-Split” before long. The split between the Blockchain and network can happen if the bulk of miners (through hash power) shift to Bitcoin Unlimited (BTU). Then, they choose to mine blocks higher than 1 Megabyte while other users remain committed to the BTC protocol. When this takes place, there will be two BTC tokens each following different protocols.
Probable Outcome
Positive – Each coin is replicated effectively in the BTU chain. You can have both BTC and BTU following a division.
Negative – The break-up can be risk and disorganized since all the crypto currencies stick together. It’s necessary to divide them or lose your coins.
The key is to play it safe during a split and move to the other side with your coins (BTC and BTU) in one piece.
Current Situation
The Coin-Split is very precarious. The possibility of a cyber confrontation between BTU and BTC is very imminent. It may even reach that point wherein the BTC exchange rate can plunge to a large extent. Don’t hold more value in the currency than what you’re prepared to let go of. Take command of your private keys if you will hold on to the Bitcoin. It’s quite likely you may not get coins form the chain of you keep Bitcoin in an exchange; wallet like Coin Base, XAPO, or Circle; or any service holding your keys. One such exchange (GDAX) declared openly the user may not. Other exchanges did not commit any guarantees.
The answer is creating a personal wallet if you use any of the above-mentioned services. Send your coins to this wallet which will not keep your private keys.
Fundamental Solutions:
Print your keys on the paper wallet if you are not transacting with BTC or BTU in the near future but treat the currency as investment. Follow stringent security measures in case this is your preference.
Obtain any hardware wallet found in Bitcoin such as Trezor.org so your keys are in good hands. This wallet said users can access coins on both ends of Blockchain if the coin-split occurs.
Regular wallets are also not a hundred percent safe just like your mobile phone or personal computer. Avoid storing large amounts in these devices. Bitcoin Core and Bitcoin knots are full nodes that have the capability to provide additional security during a coin-split.
See to it you have back-ups for your private keys. This is a requirement of many wallets during installation. Don’t omit the step.
The Coin-Split
There is no “Flag Date” that Bitcoin Unlimited fixed for forking. In other words, forking may take place any time tentatively. Yet, the fork will all depend on coordination between miners and clear even to ordinary people. Once the BTU forks, there may be a lot of mess and this is expected from two hours or two days, and even longer.
Nonetheless, BTU does not have replay protection which denotes that any transactions happening after the fork will appear the same. These are picked up by the two networks if receivers of transactions transmit them to the other network. Refrain from sending transactions to prevent this occurrence until it is understandable to all parties what the situation really is like.
BTU does not take account of wipeout protection. The whole Bitcoin Unlimited chain is removed when mining power on the BTC chain leaves behind its BTU counterpart. It can only be aborted if BTU chain users act quickly. Accepting the BTU is not advisable until after BTU comes out on top.
The Aftermath
Users will have BTC and BTU on two sides of the fork if both chains last. They also get to control their private keys. Again, this is a difficult situation because once can spend the currency on one chain and spend the corresponding amount on the other side unintentionally.
It’s possible to stay away from replay attacks. The best solution calls for band new coins that don’t exist on the two chains since they cannot be used on both. You can successfully separate BTU from BTC by mixing old with new coins. Said process is complicated. However, certain exchanges are expected to offer coin-dividing services to deal with the issue. Simply send your Bitcoin to the exchange and it will credit your crypto currency account with Bitcoin and Bitcoin Unlimited. They may even repay transactions to ensure you receive the coins and divide these for you. Or, sell your fiat currency to interested buyers.
Stakeholders are looking at other possible solutions although there is no definite development yet until now. There may be wallets for BTC and BTU after the coin-split but it’s necessary to upgrade your current wallet. Another option is to download a new one once this takes place. Don’t accept transactions in your existing wallet unless things are very clear.
According to reports, Bitcoin Magazine as well as Bitcoin.org will announce other details about the coin-split and what users have to do. This is also meant to provide them with a clearer picture of the post-fork scenario. Wallets such as Blockchain and Electrum will permit users to upload their private keys. They will almost certainly have to undergo the same coin-split routine.
Operations are bound to go on if only one chain makes it even as there is no indication of how the post-fork condition will appear. In this case, users are also compelled to upgrade their wallets. Listen for further advice about this.
Failure
What is really sure, the Bitcoin experiment is a failure if the two chains do not survive and your private keys will become of no value. As a summary, the bottom line is to take control of your private keys. Avoid transactions after the coin-split. Use BTC Core or Knots as wallet if you decide to finally accept BTC for assurance and protection. Split your coins once everything has been settled.
Probable Outcome
Positive – Each coin is replicated effectively in the BTU chain. You can have both BTC and BTU following a division.
Negative – The break-up can be risk and disorganized since all the crypto currencies stick together. It’s necessary to divide them or lose your coins.
The key is to play it safe during a split and move to the other side with your coins (BTC and BTU) in one piece.
Current Situation
The Coin-Split is very precarious. The possibility of a cyber confrontation between BTU and BTC is very imminent. It may even reach that point wherein the BTC exchange rate can plunge to a large extent. Don’t hold more value in the currency than what you’re prepared to let go of. Take command of your private keys if you will hold on to the Bitcoin. It’s quite likely you may not get coins form the chain of you keep Bitcoin in an exchange; wallet like Coin Base, XAPO, or Circle; or any service holding your keys. One such exchange (GDAX) declared openly the user may not. Other exchanges did not commit any guarantees.
The answer is creating a personal wallet if you use any of the above-mentioned services. Send your coins to this wallet which will not keep your private keys.
Fundamental Solutions:
Print your keys on the paper wallet if you are not transacting with BTC or BTU in the near future but treat the currency as investment. Follow stringent security measures in case this is your preference.
Obtain any hardware wallet found in Bitcoin such as Trezor.org so your keys are in good hands. This wallet said users can access coins on both ends of Blockchain if the coin-split occurs.
Regular wallets are also not a hundred percent safe just like your mobile phone or personal computer. Avoid storing large amounts in these devices. Bitcoin Core and Bitcoin knots are full nodes that have the capability to provide additional security during a coin-split.
See to it you have back-ups for your private keys. This is a requirement of many wallets during installation. Don’t omit the step.
The Coin-Split
There is no “Flag Date” that Bitcoin Unlimited fixed for forking. In other words, forking may take place any time tentatively. Yet, the fork will all depend on coordination between miners and clear even to ordinary people. Once the BTU forks, there may be a lot of mess and this is expected from two hours or two days, and even longer.
Nonetheless, BTU does not have replay protection which denotes that any transactions happening after the fork will appear the same. These are picked up by the two networks if receivers of transactions transmit them to the other network. Refrain from sending transactions to prevent this occurrence until it is understandable to all parties what the situation really is like.
BTU does not take account of wipeout protection. The whole Bitcoin Unlimited chain is removed when mining power on the BTC chain leaves behind its BTU counterpart. It can only be aborted if BTU chain users act quickly. Accepting the BTU is not advisable until after BTU comes out on top.
The Aftermath
Users will have BTC and BTU on two sides of the fork if both chains last. They also get to control their private keys. Again, this is a difficult situation because once can spend the currency on one chain and spend the corresponding amount on the other side unintentionally.
It’s possible to stay away from replay attacks. The best solution calls for band new coins that don’t exist on the two chains since they cannot be used on both. You can successfully separate BTU from BTC by mixing old with new coins. Said process is complicated. However, certain exchanges are expected to offer coin-dividing services to deal with the issue. Simply send your Bitcoin to the exchange and it will credit your crypto currency account with Bitcoin and Bitcoin Unlimited. They may even repay transactions to ensure you receive the coins and divide these for you. Or, sell your fiat currency to interested buyers.
Stakeholders are looking at other possible solutions although there is no definite development yet until now. There may be wallets for BTC and BTU after the coin-split but it’s necessary to upgrade your current wallet. Another option is to download a new one once this takes place. Don’t accept transactions in your existing wallet unless things are very clear.
According to reports, Bitcoin Magazine as well as Bitcoin.org will announce other details about the coin-split and what users have to do. This is also meant to provide them with a clearer picture of the post-fork scenario. Wallets such as Blockchain and Electrum will permit users to upload their private keys. They will almost certainly have to undergo the same coin-split routine.
Operations are bound to go on if only one chain makes it even as there is no indication of how the post-fork condition will appear. In this case, users are also compelled to upgrade their wallets. Listen for further advice about this.
Failure
What is really sure, the Bitcoin experiment is a failure if the two chains do not survive and your private keys will become of no value. As a summary, the bottom line is to take control of your private keys. Avoid transactions after the coin-split. Use BTC Core or Knots as wallet if you decide to finally accept BTC for assurance and protection. Split your coins once everything has been settled.
6
Cryptocurrency discussions / Why Ether Price Shorts Break the Record
« on: October 26, 2018, 10:05:29 AM »
On October 11 an immense selloff started on the cyber-asset market. Within a few days, the market lost around $19 billion in value, reaching the bottom of $198 billion. Even though the market has already recovered to around $209 billion, the side-effects of the correction have been quite prominent.
One of the crypto-coins which suffered the most has been Ether. Media highlight that such a behaviour of investors demonstrates that the currency may even go deeper.
Ether Faces Consequences of the Selloff
According to CCN’s estimations, Ether has been adversely affected by the selloff, more, as it seems, than any other coin on the market. Its devaluation is also fueled by months of feeble performance. As the media outlet emphasizes as of writing over 300,000 short positions have opened for Ether. At the same time, investors wager that the coin’s price will keep declining.
The source supposes that size-able ICO selloffs could be the cause of this. It means that numerous ICOs have vended their Ether positions to compensate would-be deprivations. Also, they do it to support their further projects and functions financially.
It is noted in the article that Ether was traded at the margin of $1,500 at the time of the crypto-market rally. The latter, by the way, concurred with the abrupt leap in popularity of ICOs, based on ETH. Since that time, though, the virtual coin plummeted by over 90%. Therefore, a plethora of ICO treasuries, as well as investors, had to dump their «hodlings» so that to prevent massive losses.
CCN suggests, however, that there might be another approach to explaining why the ether price shorts reach record levels. In particular, it is assumed that this phenomenon ignited by the total market selloff is connected with a fall in goal equities.
One of the crypto-coins which suffered the most has been Ether. Media highlight that such a behaviour of investors demonstrates that the currency may even go deeper.
Ether Faces Consequences of the Selloff
According to CCN’s estimations, Ether has been adversely affected by the selloff, more, as it seems, than any other coin on the market. Its devaluation is also fueled by months of feeble performance. As the media outlet emphasizes as of writing over 300,000 short positions have opened for Ether. At the same time, investors wager that the coin’s price will keep declining.
The source supposes that size-able ICO selloffs could be the cause of this. It means that numerous ICOs have vended their Ether positions to compensate would-be deprivations. Also, they do it to support their further projects and functions financially.
It is noted in the article that Ether was traded at the margin of $1,500 at the time of the crypto-market rally. The latter, by the way, concurred with the abrupt leap in popularity of ICOs, based on ETH. Since that time, though, the virtual coin plummeted by over 90%. Therefore, a plethora of ICO treasuries, as well as investors, had to dump their «hodlings» so that to prevent massive losses.
CCN suggests, however, that there might be another approach to explaining why the ether price shorts reach record levels. In particular, it is assumed that this phenomenon ignited by the total market selloff is connected with a fall in goal equities.
7
Cryptocurrency discussions / Bitcoin cold storage
« on: October 24, 2018, 09:12:53 AM »
What is cold storage for Bitcoin is one of the most often asked questions due to the rising popularity and people’s need to keep their coins secure.
The storage (or a wallet) safeguards the secret code you need to use your bitcoins and helps manage transactions, something like an internet banking account. The code, which serves as a password, is called a “private key” and is vital to the security of your money. Anyone who gets your private key can steal your bitcoins. And if you lose your key, your bitcoins are gone, too. So it’s important to protect private keys against accidental loss and back them up.
Bitcoin cold storage refers to keeping a reserve of Bitcoins offline. This is often a necessary security precaution, especially dealing with large amounts of Bitcoin. It is considered the safest way to protect your stash.
Consider an offline (aka “cold”) wallet for storage, if:
- You need to store a large amount of bitcoin and security is a top priority;
- You don’t need to use it often or access it anytime, anywhere;
- You prefer to safeguard your funds yourself rather than trust a third party;
- You’re ready to pay for hardware (typically from about 50 to a couple hundred dollars);
- Privacy is very important for you.
How to store Bitcoin offline in cold storage includes several methods: on a USB drive or other data storage medium in a safe place, on a paper wallet, on a bearer item, such as a physical “Bitcoin” coin, or using an offline hardware wallet.
Figuring out how to setup Bitcoin cold storage depends on the method you choose. If you want to use paper, check out our guide on making a paper wallet. If you’ve bought an actual hardware wallet, such as Ledger Nano or Trezor, follow the instructions that came with it.
In contrast, online, or “hot”, wallets are less secure due to the threat of hacking. Website wallets are especially vulnerable as you must reveal your private key to a third party. But hot wallets are more convenient for daily use.
It’s thus recommended to use both types of wallets – hot wallets to hold small amounts of bitcoin for daily transactions, and cold, or offline, wallets for storing larger sums. In any case, you can have as many wallets as you want.
The storage (or a wallet) safeguards the secret code you need to use your bitcoins and helps manage transactions, something like an internet banking account. The code, which serves as a password, is called a “private key” and is vital to the security of your money. Anyone who gets your private key can steal your bitcoins. And if you lose your key, your bitcoins are gone, too. So it’s important to protect private keys against accidental loss and back them up.
Bitcoin cold storage refers to keeping a reserve of Bitcoins offline. This is often a necessary security precaution, especially dealing with large amounts of Bitcoin. It is considered the safest way to protect your stash.
Consider an offline (aka “cold”) wallet for storage, if:
- You need to store a large amount of bitcoin and security is a top priority;
- You don’t need to use it often or access it anytime, anywhere;
- You prefer to safeguard your funds yourself rather than trust a third party;
- You’re ready to pay for hardware (typically from about 50 to a couple hundred dollars);
- Privacy is very important for you.
How to store Bitcoin offline in cold storage includes several methods: on a USB drive or other data storage medium in a safe place, on a paper wallet, on a bearer item, such as a physical “Bitcoin” coin, or using an offline hardware wallet.
Figuring out how to setup Bitcoin cold storage depends on the method you choose. If you want to use paper, check out our guide on making a paper wallet. If you’ve bought an actual hardware wallet, such as Ledger Nano or Trezor, follow the instructions that came with it.
In contrast, online, or “hot”, wallets are less secure due to the threat of hacking. Website wallets are especially vulnerable as you must reveal your private key to a third party. But hot wallets are more convenient for daily use.
It’s thus recommended to use both types of wallets – hot wallets to hold small amounts of bitcoin for daily transactions, and cold, or offline, wallets for storing larger sums. In any case, you can have as many wallets as you want.
8
Cryptocurrency discussions / How does bitcoin work?
« on: October 24, 2018, 07:49:36 AM »
If you are wondering how to use Bitcoin, studying its inner workings might help, too. You may have discovered that the questions about Bitcoin more often refer to what it is, rather than how does Bitcoin work. In fact, these two are inextricably linked, as the proper definition of Bitcoin is complete only after you learn what makes it tick.
Bitcoin works as a digital currency at its heart, powered by its code and the belief of its user community in its value. This is similar to fiat currencies, like the dollar or the euro, which are also not backed by physical things, as their value is derived from the relationship between supply and demand. The difference is that there is no single central place where Bitcoin comes from, whereas those currencies come from central banks. This property is called decentralization.
Bitcoin does not need a central agency to protect it, as it is already protected:
1) by being distributed
2) with cryptography.
Distributed means that every computer on the network has a copy of Bitcoin’s ledger called the blockchain. If one person wanted to change a part of it for any reason, everyone else would know where that change comes from, as the majority has the same copy. This makes sure that nobody manipulates the blockchain.
Its cryptographic protection also comes from properties of the blockchain. Every block is protected by a hash, a mathematical function, which makes it almost impossible to change the data in that block. Even if a malicious actor changed the data, we would be back to step one - everybody would know something was changed and nobody would be fooled. The majority would simply reject such a change.
What is the process of Bitcoin? In short, some of the computers (nodes) participating within that system validate transactions and compete with each other in a process called mining.
Bitcoin works as a digital currency at its heart, powered by its code and the belief of its user community in its value. This is similar to fiat currencies, like the dollar or the euro, which are also not backed by physical things, as their value is derived from the relationship between supply and demand. The difference is that there is no single central place where Bitcoin comes from, whereas those currencies come from central banks. This property is called decentralization.
Bitcoin does not need a central agency to protect it, as it is already protected:
1) by being distributed
2) with cryptography.
Distributed means that every computer on the network has a copy of Bitcoin’s ledger called the blockchain. If one person wanted to change a part of it for any reason, everyone else would know where that change comes from, as the majority has the same copy. This makes sure that nobody manipulates the blockchain.
Its cryptographic protection also comes from properties of the blockchain. Every block is protected by a hash, a mathematical function, which makes it almost impossible to change the data in that block. Even if a malicious actor changed the data, we would be back to step one - everybody would know something was changed and nobody would be fooled. The majority would simply reject such a change.
What is the process of Bitcoin? In short, some of the computers (nodes) participating within that system validate transactions and compete with each other in a process called mining.
9
Cryptocurrency discussions / How to mine Bitcoin?
« on: October 23, 2018, 10:35:14 AM »
Mining 1 bitcoin a year might cost you thousands of dollars. If you’re lucky.
However, our beginner’s guide to mining Bitcoins should help you.
When Bitcoin was launched in 2009 it was possible to mine the first cryptocurrency using a personal computer. Now, with more and more miners joining the race for bitcoins and Bitcoin transaction fees, for getting started with Bitcoin mining, only those with extremely powerful computers can expect a reward.
For a sense of how much investment mining might require, just search the internet for “bitcoin mining calculator”. The measure of the computing power of mining equipment is called its “hash rate”. It shows how fast the equipment can solve cryptographic puzzles.
Once you decide on your budget, you can choose how to mine Bitcoin. You can either invest thousands or millions in your own mining equipment and keep all the profit yourself, or use existing infrastructure.
To do the latter:
Join a mining pool. Mining pools unite a group of miners who combine their computing power and share profits. There’s usually a fee to be a member of such a pool.
Use cloud mining. This means buying processing power at a remote datacentre which will mine on your behalf. Here you don’t need to invest in your own equipment in order to mine, but you’re charged a fee by the datacentre which reduces your profit.
In any case, to avoid fraud, do some research before choosing a mining pool or a cloud mining solution.
However, our beginner’s guide to mining Bitcoins should help you.
When Bitcoin was launched in 2009 it was possible to mine the first cryptocurrency using a personal computer. Now, with more and more miners joining the race for bitcoins and Bitcoin transaction fees, for getting started with Bitcoin mining, only those with extremely powerful computers can expect a reward.
For a sense of how much investment mining might require, just search the internet for “bitcoin mining calculator”. The measure of the computing power of mining equipment is called its “hash rate”. It shows how fast the equipment can solve cryptographic puzzles.
Once you decide on your budget, you can choose how to mine Bitcoin. You can either invest thousands or millions in your own mining equipment and keep all the profit yourself, or use existing infrastructure.
To do the latter:
Join a mining pool. Mining pools unite a group of miners who combine their computing power and share profits. There’s usually a fee to be a member of such a pool.
Use cloud mining. This means buying processing power at a remote datacentre which will mine on your behalf. Here you don’t need to invest in your own equipment in order to mine, but you’re charged a fee by the datacentre which reduces your profit.
In any case, to avoid fraud, do some research before choosing a mining pool or a cloud mining solution.
10
Bitcoin Forum / Why do Bitcoin have value?
« on: October 23, 2018, 09:16:59 AM »
The value of Bitcoin comes from the same reason the US dollar does – it’s a useful form of money that’s used by people to buy and sell things.
While the US dollar’s value is supported by the government, which gives it a legal status and uses it to collects taxes, Bitcoin’s value comes from its code.
Although it’s not tangible, Bitcoin’s code gives it features of a traditional fiat currency like scarcity, divisibility, portability, fungibility, and recognizability. In addition, Bitcoin is decentralized, can be used without a middleman, provides some level of anonymity, is impossible to counterfeit, and has other features such as programmability.
But the most important reason for current Bitcoin value is that people want to use it to pay for goods and services, store their money, or simply speculate. The more the network of Bitcoin users and merchants grows and the more secure and advanced the system becomes, the bigger Bitcoin’s value in USD and other currencies can get.
Bitcoin value history has been turbulent, which causes some people to decide not to accept it.
One point to remember is that all currencies, both traditional money and cryptocurrencies, can lose their value. In the case of Bitcoin value today, that could be due to a failure of its network, new regulations, better alternatives or anything else that discouraged people from using it.
Bitcoin value chart can be found on pages such as coinmarketcap.com
While the US dollar’s value is supported by the government, which gives it a legal status and uses it to collects taxes, Bitcoin’s value comes from its code.
Although it’s not tangible, Bitcoin’s code gives it features of a traditional fiat currency like scarcity, divisibility, portability, fungibility, and recognizability. In addition, Bitcoin is decentralized, can be used without a middleman, provides some level of anonymity, is impossible to counterfeit, and has other features such as programmability.
But the most important reason for current Bitcoin value is that people want to use it to pay for goods and services, store their money, or simply speculate. The more the network of Bitcoin users and merchants grows and the more secure and advanced the system becomes, the bigger Bitcoin’s value in USD and other currencies can get.
Bitcoin value history has been turbulent, which causes some people to decide not to accept it.
One point to remember is that all currencies, both traditional money and cryptocurrencies, can lose their value. In the case of Bitcoin value today, that could be due to a failure of its network, new regulations, better alternatives or anything else that discouraged people from using it.
Bitcoin value chart can be found on pages such as coinmarketcap.com
11
Cryptocurrency discussions / What Will November Rain Bring for Bitcoin This Year?
« on: October 22, 2018, 05:16:40 PM »
As November is approaching and Bitcoin price is stuck in a crucial range, the cryptoverse is increasingly debating what will the next month bring this time.
Tom Lee, Wall Street market analyst and Bitcoin bull, remains convinced that Bitcoin could still surpass USD 20,000 - even in spite of the year-long bear market. In an interview with Heidi “BlockchainChick,” a crypto influencer, he said that “people are too bearish” and that there is still time for his prediction to come true.
The head of Fundstrat Global Advisors, a market analyst company, explained: “What happens is, people get bearish because it makes sense. I mean, market’s been terrible and we’re below 200-day [moving average] and we [at Fundstrat] published a report this week that pointed out to our clients that when Bitcoin is under its 200-day, it only goes up 50% of the time in the next six months. But when it’s above its 200-day, it is up 80% of the time, so the trend implied by the 200-day is obviously very important.”
He still stands by his USD 20,000 prophecy: according to Fundstrat’s research, by year’s end, the break-even cost of mining bitcoin will rise to USD 8,000 - USD 9,000. According to the analyst, bitcoin often trades at over two times its break-even - and sometimes even three to four times the number - so Lee doesn’t consider his price prediction all that bullish in the first place.
However, there is still a big question in the air: what’s the bottom? “Until people are convinced that there’s a bottom, like there are a chicken and an egg, you can’t motivate people until the [bottoming] event happens,” he adds.
Tom Lee, Wall Street market analyst and Bitcoin bull, remains convinced that Bitcoin could still surpass USD 20,000 - even in spite of the year-long bear market. In an interview with Heidi “BlockchainChick,” a crypto influencer, he said that “people are too bearish” and that there is still time for his prediction to come true.
The head of Fundstrat Global Advisors, a market analyst company, explained: “What happens is, people get bearish because it makes sense. I mean, market’s been terrible and we’re below 200-day [moving average] and we [at Fundstrat] published a report this week that pointed out to our clients that when Bitcoin is under its 200-day, it only goes up 50% of the time in the next six months. But when it’s above its 200-day, it is up 80% of the time, so the trend implied by the 200-day is obviously very important.”
He still stands by his USD 20,000 prophecy: according to Fundstrat’s research, by year’s end, the break-even cost of mining bitcoin will rise to USD 8,000 - USD 9,000. According to the analyst, bitcoin often trades at over two times its break-even - and sometimes even three to four times the number - so Lee doesn’t consider his price prediction all that bullish in the first place.
However, there is still a big question in the air: what’s the bottom? “Until people are convinced that there’s a bottom, like there are a chicken and an egg, you can’t motivate people until the [bottoming] event happens,” he adds.
12
Cryptocurrency discussions / Re: I choose alts and ignore bitcoins
« on: October 22, 2018, 11:22:23 AM »
can u change your other coins into usd without converting from bitcoin?
13
Cryptocurrency discussions / Re: Do you think there will be another bull market before the year ends?
« on: October 22, 2018, 10:15:00 AM »
maybe? i guest?
haha.still hoping here...
haha.still hoping here...
14
Cryptocurrency discussions / What are you planning to do with your coins in christmas?
« on: October 22, 2018, 09:52:27 AM »
Christmas is coming.what are you planning to do with your coins this christmas? dump or hold?
15
Cryptocurrency discussions / how much did you earn from crypto?
« on: October 20, 2018, 02:20:47 PM »
most of people earned in crypto like $100,$200,$300,etc..
total of money that i earned from crypto is 10.000 PHP only.how much yours?
total of money that i earned from crypto is 10.000 PHP only.how much yours?
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