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Financial Cryptography

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Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
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08-13 21:45 - 'Building the Infrastructure for the Future Decentralized Financial Market, Coinbase Included HBTC.Com Debut DeFi Project - Nest Protocol' (self.Bitcoin) by /u/Nest_Fan removed from /r/Bitcoin within 24-34min

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As the world’s leading regulatory compliant digital asset exchange, Coinbase sets one of the most stringent requirements for digital asset listing which includes technical evaluation of projects, legal and risk analysis, market supply and demand analysis, and crypto-economics. Coinbase holds a strong reputation in the digital asset industry, and thus the “Coinbase Standard” is considered as the industry benchmark for other digital asset projects, and the market has even seen the “Coinbase effect”.
On July 25 2020, Coinbase quietly launched the pricing chart of a decentralized oracle project, NEST Protocol (NEST), into its portal. Although Coinbase has yet to announce the inclusion of the project in its evaluation list, it represents a keen interest in the DeFi sector, and particularly in the DeFi price oracle projects.
NEST Protocol is the rising star in the decentralized price oracle sector
Decentralized financial services offered by the current mainstream DeFi platforms such as MakerDAO, Compound, dYdX, etc. rely heavily on the market data provided by the oracle projects. Oracle projects act as reliable information sources to feed these price data to other DeFi Projects, connecting the price data from the centralized world to the DeFi space. As such, the price oracle is an integral part of the decentralized financial services infrastructure.
Traditionally, the price oracle collects data from different platforms and feeds these data points to the DeFi space to create data reference points to enable them to function properly. However, many problems currently exist in the DeFi space, for example, blockchain network congestion, malicious attacks, wild market fluctuations, and other factors that may cause the data given by the price oracle to deviate from the true market data. These ultimately cause users to trade on wrong information in the DeFi space and increases such transaction costs.
Decentralized finance requires a fast, secure, and reliable price oracle. The birth of the decentralized price oracle is the embodiment of the blockchain industry’s thinking, and the current market projects offering decentralized price oracle services which includes NEST Protocol, Chainlink, Band Protocol, Tellor, Witness, Oraclize, and many others.
The innovation of NEST-Price is that every data point has been agreed upon by market validators, in line with the blockchain consensus mechanism. NEST-Price synchronizes the off-chain price in a highly decentralized manner, creating real and valid price data on-chain. This is the unique differentiator between NEST-Price and other price oracles.
Compared with other price oracle projects, NEST also has other features and advantages, such as the proposed peer-to-peer quotation matching as well as its unique verifier verification structure, making NEST more resilient to malicious attacks, resulting in a more decentralized network, and it’s on-chain prices closer to the fair market price. All of this has resulted in the NEST Protocol becoming a rising star in the DeFi price oracle sector. HBTC.com selects high-quality projects to list and partnering with NEST to promote the development of DeFi ecosystem
During the selection of quality assets, exchanges like [HBTC.com]1 and Coinbase adhere to the principle of a rigorous selection of assets from different projects to enable a proper range of digital assets. At the same time, in order to solve existing pain points in the digital asset industry, which currently lacks a market-making management solution, HBTC.com also has launched its own “coin listing crowdsourcing [liquidity initiative]2 “, redefining the exchange market making model.
HBTC.com, through its coin listing strategy, effectively reduces the problem of low liquidity in the early stages of high-quality projects, ensuring the smoothness of the user experience, and achieves a win-win situation for traders, the community, and the respective trading platform. These initiatives, coupled with reliable user protection and a responsible attitude, have earned a positive reputation among users.
Since its inception, the HBTC.com exchange has been committed to the discovery of both quality and promising digital asset projects. At a time when DeFi is growing rapidly, HBTC.com has a unique perspective for the decentralized price oracle sector and has prioritized NEST as a premium partner to debut the project alongside with its global branding upgrade. In addition, HBTC.com has [100% proof of reserves]3 for traders to validate the existence of assets via the Merkle tree, which brings transparency to the extreme.
In May 2020, NEST token delivered a 883.29% of return, at its peak, after its global debut on HBTC.com. At present, HBTC Exchange addresses holding NEST token accounts in a total of 141 million, ranked first in the overall network. At the same time, the HBTC Exchange network exclusively releases NEST staking mining and data show that NEST 24-hour turnover has reached $20.4 million.
Post-listing of the NEST token, HBTC.com has also listed DeFi projects such as DF, OKS, NEST, SWTH, JST, NVT, and other DeFi projects with market potential; some projects have achieved astonishing performance in the secondary market.
HBTC.com’s path to DeFi: developing public chains to prepare for the future ecosystem breakout.
In terms of the DeFi product and ecosystem infrastructure, HBTC has deployed HBTC Chain since launched in 2018, an infrastructure designed for decentralized finance and DeFi business with patented Bluehelix decentralized cross-chain clearing and custody technology.
The HBTC Chain is the DeFi ecosystem infrastructure that the team has spent a significant amount of effort to build. It is based on decentralization and community consensus and integrates cryptography and blockchain technologies to support decentralized association-based governance capabilities at the technical level. Based on decentralized key management, combining various cryptography tools including ECDSA, commitment, zero-knowledge proof, and multi-party computation, It implements the distributed private key generation and signature for cross-chain assets among all validators. On top of that, this technology can realize light-weight and non-intrusive cross-chain asset custody. On the clearing layer, HBTC Chain employs BHPOS consensus and horizontal sharding mechanisms to achieve high-performing transaction clearing, and implementation of OpenDex protocol to help the development of the DeFi ecosystem.
In addition, with the success experience of Bluehelix Cloud SaaS and white label solutions and the HBTC Brokerage system, HBTC’s public chain also innovatively supports CEX+DEX mixed matchmaking model and OpenDex protocol and proposes the three-tier node system which consists of standard node + consensus node + core node. This structure provides HBTC public chain certain advantages in terms of performance and cross-chain transactions. Users can easily establish a DEX with OpenDex protocol at nearly zero cost, and all DEX will share the liquidity and support customized user interface and trading parameters. The trading experience can be completely comparable to centralized spot exchanges.
With the launch of its test network, it is now possible to develop various DeFi applications on the HBTC public chain, such as decentralized swap, so that private keys are not controlled by any party; no KYC, which can prevent personal information leakage; and asset security through the setting of invalidation, cancellation of transactions and other functions, cross-chain asset mappings, such as the ability to issue cross-chain cBTC or other chain tokens, fully decentralized asset mapping contracts, and 100% reserves.
Conclusion
In the past few months, the DeFi market has been extremely active, the price of DeFi tokens has been rising, and a new round of competition with the centralized exchanges has started. HBTC Chain relies on the powerful technology of Bluehelix and [HBTC.com]1 , giving all public chains the ability to interconnect, and put into both DeFi and SaaS levels. Undoubtedly, as one of the first exchanges to build the DeFi ecosystem, HBTC is leading the breakout in the current DeFi craze and has now become the first choice of users to engage with quality DeFi projects.

From BITCOIN news([[link]6 )
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Building the Infrastructure for the Future Decentralized Financial Market, Coinbase Included HBTC.Com Debut DeFi Project - Nest Protocol
Go1dfish undelete link
unreddit undelete link
Author: Nest_Fan
1: *btc*com/ 2: m*diu**com/hbt***ficia*/hbt*-launches-ba**liquidi*y***owd*unding-li*ti*g-plan-redefine-t*e*exch*nge-*i*tin**m*d*l***6*58f*f1d* 3: hbtc.ze**e*k*co*/hc/*n-us/a**icles/3***46287754-HBT*-10*-*ro***of*Reserve 4: hb*c.co*/ 5: n*ws.bitcoin.c*m*bu*ld*ng-t**-infr***ructur*-f*r-the*fut*re*decen**ali**d-*inanc*a*-market-coi**as*-*ncluded-h*t*-*o*-*ebut-de**-p*oject-n*st-**otocol* 6: n**s.bit*oin*com/building-th*-infrast*u*ture*for-t*e-fut****decen**a**zed**inancia*-m*rket-coinbase-**c*uded-*b*c-c***deb***defi-**oject-*est**r**ocol/]^^5
Unknown links are censored to prevent spreading illicit content.
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The Great Bitcoin Bull Market Of 2017 by Trace Mayer

By: Trace Mayer, host of The Bitcoin Knowledge Podcast.
Originally posted here with images and Youtube videos.
I just got back from a two week vacation without Internet as I was scouring some archeological ruins. I hardly thought about Bitcoin at all because there were so many other interesting things and it would be there when I got back.
Jimmy Song suggested I do an article on the current state of Bitcoin. A great suggestion but he is really smart (he worked on Armory after all!) so I better be thorough and accurate!
Therefore, this article will be pretty lengthy and meticulous.
BACKGROUND
As I completely expected, the 2X movement from the New York Agreement that was supposed to happen during the middle of my vacation flopped on its face because Jeff Garzik was driving the clown car with passengers willfully inside like Coinbase, Blockchain.info, Bitgo and Xapo and there were here massive bugS and in the code and miners like Bitmain did not want to allocate $150-350m to get it over the difficulty adjustments.
I am very disappointed in their lack of integrity with putting their money where their mouths are; myself and many others wanted to sell a lot of B2X for BTC!
On 7 December 2015, with Bitcoin trading at US$388.40, I wrote The Rise of the Fourth Great Bitcoin Bubble. On 4 December 2016, with Bitcoin trading at US$762.97, I did this interview:

As of 26 November 2017, Bitcoin is trading around US$9,250.00. That is an increase of about 2,400% since I wrote the article prognosticating this fourth great Bitcoin bull market. I sure like being right, like usual (19 Dec 2011, 1 Jul 2013), especially when there are financial and economic consequences.
With such massive gains in such a short period of time the speculative question becomes: Buy, Hold or Sell?
FUNDAMENTALS
Bitcoin is the decentralized censorship-resistant Internet Protocol for transferring value over a communications channel.
The Bitcoin network can use traditional Internet infrastructure. However, it is even more resilient because it has custom infrastructure including, thanks to Bitcoin Core developer Matt Corrallo, the FIBRE network and, thanks to Blockstream, satellites which reduce the cost of running a full-node anywhere in the world to essentially nothing in terms of money or privacy. Transactions can be cheaply broadcast via SMS messages.
SECURITY
The Bitcoin network has a difficulty of 1,347,001,430,559 which suggests about 9,642,211 TH/s of custom ASIC hardware deployed.
At a retail price of approximately US$105/THs that implies about $650m of custom ASIC hardware deployed (35% discount applied).
This custom hardware consumes approximately 30 TWh per year. That could power about 2.8m US households or the entire country of Morocco which has a population of 33.85m.
This Bitcoin mining generates approximately 12.5 bitcoins every 10 minutes or approximately 1,800 per day worth approximately US$16,650,000.
Bitcoin currently has a market capitalization greater than $150B which puts it solidly in the top-30 of M1 money stock countries and a 200 day moving average of about $65B which is increasing about $500m per day.
Average daily volumes for Bitcoin is around US$5B. That means multi-million dollar positions can be moved into and out of very easily with minimal slippage.
When my friend Andreas Antonopolous was unable to give his talk at a CRYPSA event I was invited to fill in and delivered this presentation, impromptu, on the Seven Network Effects of Bitcoin.
These seven network effects of Bitcoin are (1) Speculation, (2) Merchants, (3) Consumers, (4) Security [miners], (5) Developers, (6) Financialization and (7) Settlement Currency are all taking root at the same time and in an incredibly intertwined way.
With only the first network effect starting to take significant root; Bitcoin is no longer a little experiment of magic Internet money anymore. Bitcoin is monster growing at a tremendous rate!!

SPECULATION
For the Bitcoin price to remain at $9,250 it requires approximately US$16,650,000 per day of capital inflow from new hodlers.
Bitcoin is both a Giffen good and a Veblen good.
A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect.
Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand.
There are approximately 16.5m bitcoins of which ~4m are lost, ~4-6m are in deep cold storage, ~4m are in cold storage and ~2-4m are salable.
(http://www.runtogold.com/images/lost-bitcoins-1.jpg)
(http://www.runtogold.com/images/lost-bitcoins-2.jpg)
And forks like BCash (BCH) should not be scary but instead be looked upon as an opportunity to take more territory on the Bitcoin blockchain by trading the forks for real bitcoins which dries up more salable supply by moving it, likely, into deep cold storage.
According to Wikipedia, there are approximately 15.4m millionaires in the United States and about 12m HNWIs ($30m+ net worth) in the world. In other words, if every HNWI in the world wanted to own an entire bitcoin as a 'risk-free asset' that cannot be confiscated, seized or have the balance other wise altered then they could not.
For wise portfolio management, these HNWIs should have at least about 2-5% in gold and 0.5-1% in bitcoin.
Why? Perhaps some of the 60+ Saudis with 1,700 frozen bank accounts and about $800B of assets being targetted might be able to explain it to you.
In other words, everyone loves to chase the rabbit and once they catch it then know that it will not get away.
RETAIL
There are approximately 150+ significant Bitcoin exchanges worldwide. Kraken, according to the CEO, was adding about 6,000 new funded accounts per day in July 2017.
Supposedly, Coinbase is currently adding about 75,000 new accounts per day. Based on some trade secret analytics I have access to; I would estimate Coinbase is adding approximately 17,500 new accounts per day that purchase at least US$100 of Bitcoin.
If we assume Coinbase accounts for 8% of new global Bitcoin users who purchase at least $100 of bitcoins (just pulled out of thin error and likely very conservative as the actual number is perhaps around 2%) then that is approximately $21,875,000 of new capital coming into Bitcoin every single day just from retail demand from 218,750 total new accounts.
What I have found is that most new users start off buying US$100-500 and then after 3-4 months months they ramp up their capital allocation to $5,000+ if they have the funds available.
After all, it takes some time and practical experience to learn how to safely secure one's private keys.
To do so, I highly recommend Bitcoin Core (network consensus and full validation of the blockchain), Armory (private key management), Glacier Protocol (operational procedures) and a Puri.sm laptop (secure non-specialized hardware).
WALL STREET
There has been no solution for large financial fiduciaries to invest in Bitcoin. This changed November 2017.
LedgerX, whose CEO I interviewed 23 March 2013, began trading as a CFTC regulated Swap Execution Facility and Derivatives Clearing Organization.
The CME Group announced they will begin trading in Q4 2017 Bitcoin futures.
The CBOE announced they will begin trading Bitcoin futures soon.
By analogy, these institutional products are like connecting a major metropolis's water system (US$90.4T and US$2 quadrillion) via a nanoscopic shunt to a tiny blueberry ($150B) that is infinitely expandable.
This price discovery could be the most wild thing anyone has ever experienced in financial markets.
THE GREAT CREDIT CONTRACTION
The same week Bitcoin was released I published my book The Great Credit Contraction and asserted it had now begun and capital would burrow down the liquidity pyramid into safer and more liquid assets.
(http://www.runtogold.com/images/Great-Credit-Contraction-Liquidity-Pyramid.jpg)
Thus, the critical question becomes: Is Bitcoin a possible solution to the Great Credit Contraction by becoming the safest and most liquid asset?
BITCOIN'S RISK PROFILE
At all times and in all circumstances gold remains money but, of course, there is always exchange rate risk due to price ratios constantly fluctuating. If the metal is held with a third-party in allocated-allocated storage (safest possible) then there is performance risk (Morgan Stanley gold storage lawsuit).
But, if properly held then, there should be no counter-party risk which requires the financial ability of a third-party to perform like with a bank account deposit. And, since gold exists at a single point in space and time therefore it is subject to confiscation or seizure risk.
Bitcoin is a completely new asset type. As such, the storage container is nearly empty with only $150B.
And every Bitcoin transaction effectively melts down every BTC and recasts it; thus ensuring with 100% accuracy the quantity and quality of the bitcoins. If the transaction is not on the blockchain then it did not happen. This is the strictest regulation possible; by math and cryptography!
This new immutable asset, if properly secured, is subject only to exchange rate risk. There does exist the possibility that a software bug may exist that could shut down the network, like what has happened with Ethereum, but the probability is almost nil and getting lower everyday it does not happen.
Thus, Bitcoin arguably has a lower risk profile than even gold and is the only blockchain to achieve security, scalability and liquidity.
To remain decentralized, censorship-resistant and immutable requires scalability so as many users as possible can run full-nodes.
(http://www.runtogold.com/images/ethereum-bitcoin-scability-nov-2017.png)
TRANSACTIONS
Some people, probably mostly those shilling alt-coins, think Bitcoin has a scalability problem that is so serious it requires a crude hard fork to solve.
On the other side of the debate, the Internet protocol and blockchain geniuses assert the scalability issues can, like other Internet Protocols have done, be solved in different layers which are now possible because of Segregated Witness which was activated in August 2017.
Whose code do you want to run: the JV benchwarmers or the championship Chicago Bulls?
As transaction fees rise, certain use cases of the Bitcoin blockchain are priced out of the market. And as the fees fall then they are economical again.
Additionally, as transaction fees rise, certain UTXOs are no longer economically usable thus destroying part of the money supply until fees decline and UTXOs become economical to move.
There are approximately 275,000-350,000 transactions per day with transaction fees currently about $2m/day and the 200 DMA is around $1.08m/day.
(http://www.runtogold.com/images/bitcoin-transaction-fees-nov-2017.png)
What I like about transaction fees is that they somewhat reveal the financial health of the network.
The security of the Bitcoin network results from the miners creating solutions to proof of work problems in the Bitcoin protocol and being rewarded from the (1) coinbase reward which is a form of inflation and (2) transaction fees which is a form of usage fee.
The higher the transaction fees then the greater implied value the Bitcoin network provides because users are willing to pay more for it.
I am highly skeptical of blockchains which have very low transaction fees. By Internet bubble analogy, Pets.com may have millions of page views but I am more interested in EBITDA.
DEVELOPERS
Bitcoin and blockchain programming is not an easy skill to acquire and master. Most developers who have the skill are also financially independent now and can work on whatever they want.
The best of the best work through the Bitcoin Core process. After all, if you are a world class mountain climber then you do not hang out in the MacDonalds play pen but instead climb Mount Everest because that is where the challenge is.
However, there are many talented developers who work in other areas besides the protocol. Wallet maintainers, exchange operators, payment processors, etc. all need competent developers to help build their businesses.
Consequently, there is a huge shortage of competent developers. This is probably the largest single scalability constraint for the ecosystem.
Nevertheless, the Bitcoin ecosystem is healthier than ever before.
(http://www.runtogold.com/images/bitcoin-ecosystem.jpg)(/images/bitcoin-ecosystem-small.jpg)
SETTLEMENT CURRENCY
There are no significant global reserve settlement currency use cases for Bitcoin yet.
Perhaps the closest is Blockstream's Strong Federations via Liquid.
PRICE
There is a tremendous amount of disagreement in the marketplace about the value proposition of Bitcoin. Price discovery for this asset will be intense and likely take many cycles of which this is the fourth.
Since the supply is known the exchange rate of Bitcoins is composed of (1) transactional demand and (2) speculative demand.
Interestingly, the price elasticity of demand for the transactional demand component is irrelevant to the price. This makes for very interesting dynamics!
(http://www.runtogold.com/images/bitcoin-speculation.jpg)
On 4 May 2017, Lightspeed Venture Partners partner Jeremy Liew who was among the early Facebook investors and the first Snapchat investor laid out their case for bitcoin exploding to $500,000 by 2030.
On 2 November 2017, Goldman Sachs CEO Lloyd Blankfein (https://www.bloomberg.com/news/articles/2017-11-02/blankfein-says-don-t-dismiss-bitcoin-while-still-pondering-value)said, "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus."
On 12 Sep 2017, JP Morgan CEO called Bitcoin a 'fraud' but conceded that "(http://fortune.com/2017/09/12/jamie-dimon-bitcoin-cryptocurrency-fraud-buy/)Bitcoin could reach $100,000".
Thus, it is no surprise that the Bitcoin chart looks like a ferret on meth when there are such widely varying opinions on its value proposition.
I have been around this space for a long time. In my opinion, those who scoffed at the thought of $1 BTC, $10 BTC (Professor Bitcorn!), $100 BTC, $1,000 BTC are scoffing at $10,000 BTC and will scoff at $100,000 BTC, $1,000,000 BTC and even $10,000,000 BTC.
Interestingly, the people who understand it the best seem to think its financial dominance is destiny.
Meanwhile, those who understand it the least make emotionally charged, intellectually incoherent bearish arguments. A tremendous example of worldwide cognitive dissonance with regards to sound money, technology and the role or power of the State.
Consequently, I like looking at the 200 day moving average to filter out the daily noise and see the long-term trend.
(http://www.runtogold.com/images/bitcoin-price-200dma-nov-2017.png)
Well, that chart of the long-term trend is pretty obvious and hard to dispute. Bitcoin is in a massive secular bull market.
The 200 day moving average is around $4,001 and rising about $30 per day.
So, what do some proforma situations look like where Bitcoin may be undervalued, average valued and overvalued? No, these are not prognostications.
(http://www.runtogold.com/images/bitcoin-price-pro-forma.png)
Maybe Jamie Dimon is not so off his rocker after all with a $100,000 price prediction.
We are in a very unique period of human history where the collective globe is rethinking what money is and Bitcoin is in the ring battling for complete domination. Is or will it be fit for purpose?
As I have said many times before, if Bitcoin is fit for this purpose then this is the largest wealth transfer in the history of the world.
CONCLUSION
Well, this has been a brief analysis of where I think Bitcoin is at the end of November 2017.
The seven network effects are taking root extremely fast and exponentially reinforcing each other. The technological dominance of Bitcoin is unrivaled.
The world is rethinking what money is. Even CEOs of the largest banks and partners of the largest VC funds are honing in on Bitcoin's beacon.
While no one has a crystal ball; when I look in mine I see Bitcoin's future being very bright.
Currently, almost everyone who has bought Bitcoin and hodled is sitting on unrealized gains as measured in fiat currency. That is, after all, what uncharted territory with daily all-time highs do!
But perhaps there is a larger lesson to be learned here.
Riches are getting increasingly slippery because no one has a reliable defined tool to measure them with. Times like these require incredible amounts of humility and intelligence guided by macro instincts.
Perhaps everyone should start keeping books in three numéraires: USD, gold and Bitcoin.
Both gold and Bitcoin have never been worth nothing. But USD is a fiat currency and there are thousands of those in the fiat currency graveyard. How low can the world reserve currency go?
After all, what is the risk-free asset? And, whatever it is, in The Great Credit Contraction you want it!
What do you think? Disagree with some of my arguments or assertions? Please, eviscerate them on Twitter or in the comments!
submitted by bitcoinknowledge to Bitcoin [link] [comments]

CRYPTOCURRENCY BITCOIN

CRYPTOCURRENCY BITCOIN
Bitcoin Table of contents expand: 1. What is Bitcoin? 2. Understanding Bitcoin 3. How Bitcoin Works 4. What's a Bitcoin Worth? 5. How Bitcoin Began 6. Who Invented Bitcoin? 7. Before Satoshi 8. Why Is Satoshi Anonymous? 9. The Suspects 10. Can Satoshi's Identity Be Proven? 11. Receiving Bitcoins As Payment 12. Working For Bitcoins 13. Bitcoin From Interest Payments 14. Bitcoins From Gambling 15. Investing in Bitcoins 16. Risks of Bitcoin Investing 17. Bitcoin Regulatory Risk 18. Security Risk of Bitcoins 19. Insurance Risk 20. Risk of Bitcoin Fraud 21. Market Risk 22. Bitcoin's Tax Risk What is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity is yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Understanding Bitcoin Bitcoin is a type of cryptocurrency: Balances are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Style notes: According to the official Bitcoin Foundation, the word "Bitcoin" is capitalized in the context of referring to the entity or concept, whereas "bitcoin" is written in the lower case when referring to a quantity of the currency (e.g. "I traded 20 bitcoin") or the units themselves. The plural form can be either "bitcoin" or "bitcoins."
How Bitcoin Works Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places. Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain and receiving a reward in the form of a few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of February 2019, the mining difficulty is over 6.06 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.
What's a Bitcoin Worth? In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Bitcoin's price is also quite dependent on the size of its mining network since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months.
How Bitcoin Began
Aug. 18, 2008: The domain name bitcoin.org is registered. Today, at least, this domain is "WhoisGuard Protected," meaning the identity of the person who registered it is not public information.
Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.
Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.
Who Invented Bitcoin?
No one knows. Not conclusively, at any rate. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. The Bitcoin protocol requires users to enter a birthday upon signup, and we know that an individual named Satoshi Nakamoto registered and put down April 5 as a birth date. And that's about it.
Before Satoshi
Though it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not happen in a vacuum. All major scientific discoveries, no matter how original-seeming, were built on previously existing research. There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself cites Hashcash and b-money, as well as various other works spanning several research fields.
Why Is Satoshi Anonymous?
There are two primary motivations for keeping Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
The Suspects
Numerous people have been suggested as possible Satoshi Nakamoto by major media outlets. Oct. 10, 2011, The New Yorker published an article speculating that Nakamoto might be Irish cryptography student Michael Clear or economic sociologist Vili Lehdonvirta. A day later, Fast Company suggested that Nakamoto could be a group of three people – Neal King, Vladimir Oksman and Charles Bry – who together appear on a patent related to secure communications that were filed two months before bitcoin.org was registered. A Vice article published in May 2013 added more suspects to the list, including Gavin Andresen, the Bitcoin project’s lead developer; Jed McCaleb, co-founder of now-defunct Bitcoin exchange Mt. Gox; and famed Japanese mathematician Shinichi Mochizuki.
In December 2013, Techcrunch published an interview with researcher Skye Grey who claimed textual analysis of published writings shows a link between Satoshi and bit-gold creator Nick Szabo. And perhaps most famously, in March 2014, Newsweek ran a cover article claiming that Satoshi is actually an individual named Satoshi Nakamoto – a 64-year-old Japanese-American engineer living in California. The list of suspects is long, and all the individuals deny being Satoshi.
Can Satoshi's Identity Be Proven?
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins. Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.
Receiving Bitcoins As Payment
Bitcoins can be accepted as a means of payment for products sold or services provided. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touch screen apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers, like credit cards, PayPal, etc. Online payments will require a Bitcoin merchant tool (an external processor like Coinbase or BitPay).
Working For Bitcoins
Those who are self-employed can get paid for a job in bitcoins. There are several websites/job boards which are dedicated to the digital currency:
Work For Bitcoin brings together work seekers and prospective employers through its websiteCoinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as Dogecoin and LitecoinJobs4Bitcoins, part of reddit.comBitGigs
Bitcoin From Interest Payments
Another interesting way (literally) to earn bitcoins is by lending them out and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub, and BTCjam. Obviously, you should do due diligence on any third-party site.
Bitcoins From Gambling
It’s possible to play at casinos that cater to Bitcoin aficionados, with options like online lotteries, jackpots, spread betting, and other games. Of course, the pros and cons and risks that apply to any sort of gambling and betting endeavors are in force here too.
Investing in Bitcoins
There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.
In March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property rather than currency. Gains or losses from bitcoins held as capital will be realized as capital gains or losses, while bitcoins held as inventory will incur ordinary gains or losses.
Like any other asset, the principle of buying low and selling high applies to bitcoins. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own bitcoins. Here are a few options which Bitcoin enthusiasts can explore.
Risks of Bitcoin Investing
Though Bitcoin was not designed as a normal equity investment (no shares have been issued), some speculative investors were drawn to the digital money after it appreciated rapidly in May 2011 and again in November 2013. Thus, many people purchase bitcoin for its investment value rather than as a medium of exchange.
However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a long-term track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
Bitcoin Regulatory Risk
Investing money into Bitcoin in any of its many guises is not for the risk-averse. Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict or ban the use and sale of bitcoins, and some already have. Others are coming up with various rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies dealing with the buy, sell, transfer or storage of bitcoins to record the identity of customers, have a compliance officer and maintain capital reserves. The transactions worth $10,000 or more will have to be recorded and reported.
Although more agencies will follow suit, issuing rules and guidelines, the lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.
Security Risk of Bitcoins
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner's computer hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. (Users can prevent this only if bitcoins are stored on a computer which is not connected to the internet, or else by choosing to use a paper wallet – printing out the Bitcoin private keys and addresses, and not keeping them on a computer at all.) Hackers can also target Bitcoin exchanges, gaining access to thousands of accounts and digital wallets where bitcoins are stored. One especially notorious hacking incident took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after millions of dollars worth of bitcoins were stolen.
This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible. It's like dealing with cash: Any transaction carried out with bitcoins can only be reversed if the person who has received them refunds them. There is no third party or a payment processor, as in the case of a debit or credit card – hence, no source of protection or appeal if there is a problem.
Insurance Risk
Some investments are insured through the Securities Investor Protection Corporation. Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
Risk of Bitcoin Fraud
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Market Risk
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news." According to the CFPB, the price of bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%.
If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. There is already plenty of competition, and though Bitcoin has a huge lead over the other 100-odd digital currencies that have sprung up, thanks to its brand recognition and venture capital money, a technological break-through in the form of a better virtual coin is always a threat.
Bitcoin's Tax Risk
As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.
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Related Terms
Satoshi
The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency.
Chartalism Chartalism is a non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Satoshi Nakamoto The name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is closely-associated with blockchain technology.
Bitcoin Mining, Explained Breaking down everything you need to know about Bitcoin Mining, from Blockchain and Block Rewards to Proof-of-Work and Mining Pools.
Understanding Bitcoin Unlimited Bitcoin Unlimited is a proposed upgrade to Bitcoin Core that allows larger block sizes. The upgrade is designed to improve transaction speed through scale.
Blockchain Explained
A guide to help you understand what blockchain is and how it can be used by industries. You've probably encountered a definition like this: “blockchain is a distributed, decentralized, public ledger." But blockchain is easier to understand than it sounds.
Top 6 Books to Learn About Bitcoin About UsAdvertiseContactPrivacy PolicyTerms of UseCareers Investopedia is part of the Dotdash publishing family.The Balance Lifewire TripSavvy The Spruceand more
By Satoshi Nakamoto
Read it once, go read other crypto stuff, read it again… keep doing this until the whole document makes sense. It’ll take a while, but you’ll get there. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party

submitted by adrian_morrison to BlockchainNews [link] [comments]

A Beginners Guide to Bitcoin, Blockchain & Cryptocurrency

As cryptocurrency, and blockchain technology become more abundant throughout our society, it’s important to understand the inner workings of this technology, especially if you plan to use cryptocurrency as an investment vehicle. If you’re new to the crypto-sphere, learning about Bitcoin makes it much easier to understand other cryptocurrencies as many other altcoins' technologies are borrowed directly from Bitcoin.
Bitcoin is one of those things that you look into only to discover you have more questions than answers, and right as you’re starting to wrap your head around the technology; you discover the fact that Bitcoin has six other variants (forks), the amount of politics at hand, or that there are over a thousand different cryptocurrencies just as complex if not even more complex than Bitcoin.
We are currently in the infancy of blockchain technology and the effects of this technology will be as profound as the internet. This isn’t something that’s just going to fade away into history as you may have been led to believe. I believe this is something that will become an integral part of our society, eventually embedded within our technology. If you’re a crypto-newbie, be glad that you're relatively early to the industry. I hope this post will put you on the fast-track to understanding Bitcoin, blockchain, and how a large percentage of cryptocurrencies work.

Community Terminology

Altcoin: Short for alternative coin. There are over 1,000 different cryptocurrencies. You’re probably most familiar with Bitcoin. Anything that isn’t Bitcoin is generally referred to as an altcoin.
HODL: Misspelling of hold. Dank meme accidentally started by this dude. Hodlers are much more interested in long term gains rather than playing the risky game of trying to time the market.
TO THE MOON: When a cryptocurrency’s price rapidly increases. A major price spike of over 1,000% can look like it’s blasting off to the moon. Just be sure you’re wearing your seatbelt when it comes crashing down.
FUD: Fear. Uncertainty. Doubt.
FOMO: Fear of missing out.
Bull Run: Financial term used to describe a rising market.
Bear Run: Financial term used to describe a falling market.

What Is Bitcoin?

Bitcoin (BTC) is a decentralized digital currency that uses cryptography to secure and ensure validity of transactions within the network. Hence the term crypto-currency. Decentralization is a key aspect of Bitcoin. There is no CEO of Bitcoin or central authoritative government in control of the currency. The currency is ran and operated by the people, for the people. One of the main development teams behind Bitcoin is blockstream.
Bitcoin is a product of blockchain technology. Blockchain is what allows for the security and decentralization of Bitcoin. To understand Bitcoin and other cryptocurrencies, you must understand to some degree, blockchain. This can get extremely technical the further down the rabbit hole you go, and because this is technically a beginners guide, I’m going to try and simplify to the best of my ability and provide resources for further technical reading.

A Brief History

Bitcoin was created by Satoshi Nakamoto. The identity of Nakamoto is unknown. The idea of Bitcoin was first introduced in 2008 when Nakamoto released the Bitcoin white paper - Bitcoin: A Peer-to-Peer Electronic Cash System. Later, in January 2009, Nakamoto announced the Bitcoin software and the Bitcoin network officially began.
I should also mention that the smallest unit of a Bitcoin is called a Satoshi. 1 BTC = 100,000,000 Satoshis. When purchasing Bitcoin, you don’t actually need to purchase an entire coin. Bitcoin is divisible, so you can purchase any amount greater than 1 Satoshi (0.00000001 BTC).

What Is Blockchain?

Blockchain is a distributed ledger, a distributed collection of accounts. What is being accounted for depends on the use-case of the blockchain itself. In the case of Bitcoin, what is being accounted for is financial transactions.
The first block in a blockchain is referred to as the genesis block. A block is an aggregate of data. Blocks are also discovered through a process known as mining (more on this later). Each block is cryptographically signed by the previous block in the chain and visualizing this would look something akin to a chain of blocks, hence the term, blockchain.
For more information regarding blockchain I’ve provided more resouces below:

What is Bitcoin Mining

Bitcoin mining is one solution to the double spend problem. Bitcoin mining is how transactions are placed into blocks and added onto the blockchain. This is done to ensure proof of work, where computational power is staked in order to solve what is essentially a puzzle. If you solve the puzzle correctly, you are rewarded Bitcoin in the form of transaction fees, and the predetermined block reward. The Bitcoin given during a block reward is also the only way new Bitcoin can be introduced into the economy. With a halving event occurring roughly every 4 years, it is estimated that the last Bitcoin block will be mined in the year 2,140. (See What is Block Reward below for more info).
Mining is one of those aspects of Bitcoin that can get extremely technical and more complicated the further down the rabbit hole you go. An entire website could be created (and many have) dedicated solely to information regarding Bitcoin mining. The small paragraph above is meant to briefly expose you to the function of mining and the role it plays within the ecosystem. It doesn’t even scratch the surface regarding the topic.

How do you Purchase Bitcoin?

The most popular way to purchase Bitcoin through is through an online exchange where you trade fiat (your national currency) for Bitcoin.
Popular exchanges include:
  • Coinbase
  • Kraken
  • Cex
  • Gemini
There’s tons of different exchanges. Just make sure you find one that supports your national currency.

Volatility

Bitcoin and cryptocurrencies are EXTREMELY volatile. Swings of 30% or more within a few days is not unheard of. Understand that there is always inherent risks with any investment. Cryptocurrencies especially. Only invest what you’re willing to lose.

Transaction & Network Fees

Transacting on the Bitcoin network is not free. Every purchase or transfer of Bitcoin will cost X amount of BTC depending on how congested the network is. These fees are given to miners as apart of the block reward.
Late 2017 when Bitcoin got up to $20,000USD, the average network fee was ~$50. Currently, at the time of writing this, the average network fee is $1.46. This data is available in real-time on BitInfoCharts.

Security

In this new era of money, there is no central bank or government you can go to in need of assistance. This means the responsibility of your money falls 100% into your hands. That being said, the security regarding your cryptocurrency should be impeccable. The anonymity provided by cryptocurrencies alone makes you a valuable target to hackers and scammers. Below I’ve detailed out best practices regarding securing your cryptocurrency.

Two-Factor Authentication (2FA)

Two-factor authentication is a second way of authenticating your identity upon signing in to an account. Most cryptocurrency related software/websites will offer or require some form of 2FA. Upon creation of any crypto-related account find the Security section and enable 2FA.

SMS Authentication

The most basic form of 2FA which you are probably most familiar with. This form of authentication sends a text message to your smartphone with a special code that will allow access to your account upon entry. Note that this is not the safest form of 2FA as you may still be vulnerable to what is known as a SIM swap attack. SIM swapping is a social engineering method in which an attacker will call up your phone carrier, impersonating you, in attempt to re-activate your SIM card on his/her device. Once the attacker has access to your SIM card he/she now has access to your text messages which can then be used to access your online accounts. You can prevent this by using an authenticator such as Google Authenticator.

Authenticator

The use of an authenticator is the safest form of 2FA. An authenticator is installed on a seperate device and enabling it requires you input an ever changing six digit code in order to access your account. I recommend using Google Authenticator.
If a website has the option to enable an authenticator, it will give you a QR code and secret key. Use Google Authenticator to scan the QR code. The secret key consists of a random string of numbers and letters. Write this down on a seperate sheet of paper and do not store it on a digital device.
Once Google Authenticator has been enabled, every time you sign into your account, you will have to input a six-digit code that looks similar to this. If you happen to lose or damage the device you have Google Authenticator installed on, you will be locked out of your account UNLESS you have access to the secret key (which you should have written down).

Hardware Wallets

A wallet is what you store Bitcoin and cryptocurrency on. I’ll provide resources on the different type of wallets later but I want to emphasize the use of a hardware wallet (aka cold storage).
Hardware wallets are the safest way of storing cryptocurrency because it allows for your crypto to be kept offline in a physical device. After purchasing crypto via an exchange, I recommend transferring it to cold storage. The most popular hardware wallets include the Ledger Nano S, and Trezor.
Hardware wallets come with a special key so that if it gets lost or damaged, you can recover your crypto. I recommend keeping your recovery key as well as any other sensitive information in a safety deposit box.
I know this all may seem a bit manic, but it is important you take the necessary security precautions in order to ensure the safety & longevity of your cryptocurrency.

Technical Aspects of Bitcoin

TL;DR
  • Address: What you send Bitcoin to.
  • Wallet: Where you store your Bitcoin
  • Max Supply: 21 million
  • Block Time: ~10 minutes
  • Block Size: 1-2 MB
  • Block Reward: BTC reward received from mining.

What is a Bitcoin Address?

A Bitcoin address is what you send Bitcoin to. If you want to receive Bitcoin you’d give someone your Bitcoin address. Think of a Bitcoin address as an email address for money.

What is a Bitcoin Wallet?

As the title implies, a Bitcoin wallet is anything that can store Bitcoin. There are many different types of wallets including paper wallets, software wallets and hardware wallets. It is generally advised NOT to keep cryptocurrency on an exchange, as exchanges are prone to hacks (see Mt. Gox hack).
My preferred method of storing cryptocurrency is using a hardware wallet such as the Ledger Nano S or Trezor. These allow you to keep your crypto offline in physical form and as a result, much more safe from hacks. Paper wallets also allow for this but have less functionality in my opinion.
After I make crypto purchases, I transfer it to my Ledger Nano S and keep that in a safe at home. Hardware wallets also come with a special key so that if it gets lost or damaged, you can recover your crypto. I recommend keeping your recovery key in a safety deposit box.

What is Bitcoins Max Supply?

The max supply of Bitcoin is 21 million. The only way new Bitcoins can be introduced into the economy are through block rewards which are given after successfully mining a block (more on this later).

What is Bitcoins Block Time?

The average time in which blocks are created is called block time. For Bitcoin, the block time is ~10 minutes, meaning, 10 minutes is the minimum amount of time it will take for a Bitcoin transaction to be processed. Note that transactions on the Bitcoin network can take much longer depending on how congested the network is. Having to wait a few hours or even a few days in some instances for a transaction to clear is not unheard of.
Other cryptocurrencies will have different block times. For example, Ethereum has a block time of ~15 seconds.
For more information on how block time works, Prabath Siriwardena has a good block post on this subject which can be found here.

What is Bitcoins Block Size?

There is a limit to how large blocks can be. In the early days of Bitcoin, the block size was 36MB, but in 2010 this was reduced to 1 MB in order to prevent distributed denial of service attacks (DDoS), spam, and other malicious use on the blockchain. Nowadays, blocks are routinely in excess of 1MB, with the largest to date being somewhere around 2.1 MB.
There is much debate amongst the community on whether or not to increase Bitcoin’s block size limit to account for ever-increasing network demand. A larger block size would allow for more transactions to be processed. The con argument to this is that decentralization would be at risk as mining would become more centralized. As a result of this debate, on August 1, 2017, Bitcoin underwent a hard-fork and Bitcoin Cash was created which has a block size limit of 8 MB. Note that these are two completely different blockchains and sending Bitcoin to a Bitcoin Cash wallet (or vice versa) will result in a failed transaction.
Update: As of May 15th, 2018 Bitcoin Cash underwent another hard fork and the block size has increased to 32 MB.
On the topic of Bitcoin vs Bitcoin Cash and which cryptocurrency is better, I’ll let you do your own research and make that decision for yourself. It is good to know that this is a debated topic within the community and example of the politics that manifest within the space. Now if you see community members arguing about this topic, you’ll at least have a bit of background to the issue.

What is Block Reward?

Block reward is the BTC you receive after discovering a block. Blocks are discovered through a process called mining. The only way new BTC can be added to the economy is through block rewards and the block reward is halved every 210,000 blocks (approximately every 4 years). Halving events are done to limit the supply of Bitcoin. At the inception of Bitcoin, the block reward was 50BTC. At the time of writing this, the block reward is 12.5BTC. Halving events will continue to occur until the amount of new Bitcoin introduced into the economy becomes less than 1 Satoshi. This is expected to happen around the year 2,140. All 21 million Bitcoins will have been mined. Once all Bitcoins have been mined, the block reward will only consist of transaction fees.

Technical Aspects Continued

Understanding Nodes

Straight from the Bitcoin.it wiki
Any computer that connects to the Bitcoin network is called a node. Nodes that fully verify all of the rules of Bitcoin are called full nodes.
In other words, full nodes are what verify the Bitcoin blockchain and they play a crucial role in maintaining the decentralized network. Full nodes store the entirety of the blockchain and validate transactions. Anyone can participate in the Bitcoin network and run a full node. Bitcoin.org has information on how to set up a full node. Running a full node also gives you wallet capabilities and the ability to query the blockchain.
For more information on Bitcoin nodes, see Andreas Antonopoulos’s Q&A on the role of nodes.

What is a Fork?

A fork is a divergence in a blockchain. Since Bitcoin is a peer-to-peer network, there’s an overall set of rules (protocol) in which participants within the network must abide by. These rules are put in place to form network consensus. Forks occur when implementations must be made to the blockchain or if there is disagreement amongst the network on how consensus should be achieved.

Soft Fork vs Hard Fork

The difference between soft and hard forks lies in compatibility. Soft forks are backwards compatible, hard forks are not. Think of soft forks as software upgrades to the blockchain, whereas hard forks are a software upgrade that warrant a completely new blockchain.
During a soft fork, miners and nodes upgrade their software to support new consensus rules. Nodes that do not upgrade will still accept the new blockchain.
Examples of Bitcoin soft forks include:
A hard fork can be thought of as the creation of a new blockchain that X percentage of the community decides to migrate too. During a hard fork, miners and nodes upgrade their software to support new consensus rules, Nodes that do not upgrade are invalid and cannot accept the new blockchain.
Examples of Bitcoin hard forks include:
  • Bitcoin Cash
  • Bitcoin Gold
Note that these are completely different blockchains and independent from the Bitcoin blockchain. If you try to send Bitcoin to one of these blockchains, the transaction will fail.

A Case For Bitcoin in a World of Centralization

Our current financial system is centralized, which means the ledger(s) that operate within this centralized system are subjugated to control, manipulation, fraud, and many other negative aspects that come with this system. There are also pros that come with a centralized system, such as the ability to swiftly make decisions. However, at some point, the cons outweigh the pros, and change is needed. What makes Bitcoin so special as opposed to our current financial system is that Bitcoin allows for the decentralized transfer of money. Not one person owns the Bitcoin network, everybody does. Not one person controls Bitcoin, everybody does. A decentralized system in theory removes much of the baggage that comes with a centralized system. Not to say the Bitcoin network doesn’t have its problems (wink wink it does), and there’s much debate amongst the community as to how to go about solving these issues. But even tiny steps are significant steps in the world of blockchain, and I believe Bitcoin will ultimately help to democratize our financial system, whether or not you believe it is here to stay for good.

Final Conclusions

Well that was a lot of words… Anyways I hope this guide was beneficial, especially to you crypto newbies out there. You may have come into this realm not expecting there to be an abundance of information to learn about. I know I didn’t. Bitcoin is only the tip of the iceberg, but now that you have a fundamental understanding of Bitcoin, learning about other cryptocurrencies such as Litecoin, and Ethereum will come more naturally.
Feel free to ask questions below! I’m sure either the community or myself would be happy to answer your questions.
Thanks for reading!

Related Links

Guides

Exchanges

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Weekly news review (October 26-1)

Weekly news review (October 26-1)
Hello, Community. We hope you had a great weekend. Without further ado, let's jump into last week's news highlights!
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Microsoft has issued a short notice, warning about a new wave of highly targeted cyberattacks by a group of Russian state-sponsored hackers attempting to hack over a dozen anti-doping authorities and sporting organizations around the world.
The attacks are originating from the 'Strontium' Russian hacking group, widely known as Fancy Bear or APT28, and are believed to be linked to the upcoming 2020 Summer Olympics in Tokyo. The Fancy Bear hacking group, also known as APT28, Sofacy, X-agent, Sednit, Sandworm, and Pawn Storm, is believed to be linked to Russian military intelligence agency GRU and has been in operation since at least 2007.
The latest cyberattacks began on September 16, apparently after the World Anti-Doping Agency (WADA) found irregularities in a database from Russia's national anti-doping laboratory, warning that Russian athletes could face a ban from competing at Tokyo 2020 Summer Olympics. Microsoft's Threat Intelligence Center said that some of these "significant cyberattacks" were successful, but the majority were not, and that the company notified affected organisations and worked with some of them to "secure compromised accounts or systems."

The U.S. multinational computer software company Adobe has suffered a serious security breach earlier this month that exposed user records' database belonging to the company's popular Creative Cloud service. With an estimated 15 million subscribers, Adobe Creative Cloud or Adobe CC is a subscription service that gives users access to the company's full suite of popular creative software for desktop and mobile, including Photoshop, Illustrator, Premiere Pro, InDesign, Lightroom, and many more.
Since the misconfigured cloud database did not include any password or financial information such as credit card numbers, the exposed data is severe enough to expose Adobe CC users to highly targeted and convincing phishing attacks.

Earlier in the week, BTC swiftly dropped by 10% after failing to hold above the $8,000 support.
By Thursday, BTC/USD was sitting on the bottom trendline of the descending channel and many investors and analysts were calling for a drop to $7,000.
A few even predicted that a revisit to the long-term support at $6,500 was on the cards. Despite the bearish bias, traders like Scott Melker and Michaël van de Poppe spotted a series of bullish divergences on the 4-hour and daily timeframe and by Friday morning (Oct. 25) the chart and various indicators on the hourly and 4-hour timeframe were flashing bullish.
Investors believed that a quick upside move to $7,700-$7,800 would occur and many expected that bears would open their short positions at the top of this range and eventually push Bitcoin price back down to the mid $7,000s or high $6,000s at worst.
Obviously, this is exactly what did not happen and the short squeeze that accompanied the first part of Bitcoin’s 16% rally from $7,450 to $8,600 resulted in the liquidation of $150 million shorts at BitMEX.
After such a strong move, consolidation around the $8,300 to $8,500 region was the next expectation that traders had in mind. Tackling the $8,800 resistance would have been the next step and it seemed likely that this would play out depending on the state of the weekly candle at closing.
Surprisingly, Bitcoin bulls gathered up enough steam for a final hurrah, and towards the evening of the U.S. trading session bulls pressed Bitcoin price far above the $8,800 resistance to set a higher high at $10,540.
Analysts and traders will probably spend the weekend searching for the exact reasons that catalyzed today’s strong 36% surge — the biggest daily gain since 2011.

The Standing Committee of the 13th National People's Congress in China has passed a new law regulating cryptography on Oct. 26 that will take effect on Jan. 1, 2020, reports local news outlet CCTV.
Per the report, the new regulatory framework aims to set standards for the application of cryptography and the management of passwords. The new regulatory framework establishes the role of a central cryptographic agency meant to lead public cryptographic work, creating guidelines and policies for the industry.
The draft of the law was published on May 7 by a Chinese news outlet. The text is largely focused on government centralized password management and does not explicitly mention cryptocurrency, though it does focus on cryptography, a key component underpinning cryptocurrencies such as Bitcoin.

Five European Union member countries have reportedly teamed up to prevent the issuance of Facebook’s stablecoin Libra.
Following a series of private meetings in October, France is reportedly leading the anti-Libra effort with Germany, Italy, Spain and the Netherlands, political news publication Politico Europe reports on Oct. 30.
Citing sources familiar with the matter, Politico states that the countries’ deputy finance ministers have presented their unified position against Libra to other EU ministers at a private meeting on Oct. 28 in Brussels.
According to the report, the group intends to prevent Libra from launching in Europe as well as increase pressure on Facebook and other members of the Libra Foundation to give up on the project. Eurozone diplomats and European Commission (EC) officials reportedly confirmed to Politico that the coalition is encouraging EU governments to consider banning Libra altogether.

Let us know in the comments section down below!
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Coin Trade Base Exchange; The Leading Global Blockchain and Multi sided Crypto Exchange

Increase in the acceptability of cryptocurrency around the world has resulted to an increase in the number of cryptocurrency exchange platforms. A cryptocurrency or digital currency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrency exchanges or digital currency exchanges (DCE) are businesses that allow customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money , or different digital currencies.
On many present cryptocurrency exchanges, different digital currencies are used to trade against one other and the challenges faced by traders is high transaction charges; which greatly reduce their profits, security, bad users’ interface, and several payment options. To the best of our knowledge, there is no cryptocurrency exchange with zero or low transaction charges and no or less number of cryptocurrency exchange platforms accepting both crypto currency, fiat currency, paypal, perfect Money or gift cards as means of exchange for bitcoins and altcoins. To solve these major challenges facing the Traders and Investors, Coin Trade Base (CTB) Cryptocurrency Exchange is founded by an international team of cryptocurrency, finance, and technology Experts. Coin Trade Base (CTB) exchange is a cryptocurrency exchange platform with advanced security, simplified users’ interface and zero or low transaction charges. CTB exchange is safe, efficient, and users’ friendly.
On CTB Exchange, you can trade CTB token and other different digital currencies against one another with zero or low transaction charges. On CTB Digital-to-Fiat Escrow Exchange, you can trade all local fiat currencies and gift cards against CTB token and some standard cryptocurrencies anywhere in the world. This will provides more opportunity for traders and investors in the cryptocurrency world. Coin Trade Base will revolutionize the cryptocurrency exchange. We want to change the game and significantly increase the rate of cryptocurrency trading and adoption rate of cryptocurrencies. Our products and servicees make it safe and easy for people and corporates to store, sell, buy, use and learn about cryptocurrencies.
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Our Team
Our team has been deeply involved in the cryptocurrency community for years and we understand that the interest of the users should be first and must be protected.
Existing Problems
1. Security
As the cryptocurrencies industry is getting more matured day-by-day, it is paramount the traders, ordinary persons and investors are able to safeguard and exchange their coins and tokens without any hiccup. It’s no doubt exchanges (for this kind of a purpose) are sprouting at a rate which is proportional to the crypto-industry growth. However, security, active support system, fiat gateway, among others still remain very big issues.
2. Digital to fiat exchange
Digital-to-fiat exchange difficulty is a serious issue plaguing the industry as users often need to use two or more exchanges (controlled by two or more different parties) if they want to redeem their digital assets for fiats and fiats for their digital assets. This comes with stress, dissatisfaction and usurious charges.
3. Complex users interface
Most cryptocurrency exchanges have complex user’s interface, and this makes it difficult for beginners to access and understand. This has made the active participation in the cryptocurrency trading difficult for them.
4. Speed
Speed and accuracy are important factors in the exchange of digital assets. Most current cryptocurrency exchanges are slow due to the influx of more users into their platforms, and it is so unfortunate that some are not designed to scale to meet such demand. This, in turn, frustrates the users and has negative effects on their orders which, eventually, affect their profits and outputs.
5. High transaction and withdrawal charges
Almost all exchanges charge the traders for transaction fees. Most charges a usurious fee, which greatly affects the traders’ profits and saddens ordinary persons(who just want to exchange their digital assets); and these outrageous fees are significantly different from the actual miners’ fees.
6. Hedges
Most traders face challenges on hedging on most cryptocurrecny exchanges with our Cryptocurrency Escrow Trading Platform you can convert your coin to your local currency.
Solutions
Why you should choose CoinTradeBase (CTB) Exchange
1. Advanced Security
Cryptocurrency exchanges handling users’ funds and data have to be secured. In the past, many security breaches leading to the loss of funds and data have been recorded in most exchanges. To make Coin Trade Base secure and ensure an absolute safety of the users’ funds, a multi-factor, dynamic, and authentication mechanism — to sensitive operations like withdrawal, etc — is adopted, and funds are held in a secure cold storage. This provides maximum security for our users. To boot, wallets in the platform have adopted multiple security levels of storage solution in line with their storage scale, and utilized cold storage and encrypted databases. We have stored the micro-withdrawal wallets in the private network architecture which has multi-layer firewall on the basis of security isolation. Thus, financial safety on this platform is taken diligently with utmost professionalism.
2. Low or no transaction fees
Most exchange platforms charge exorbitant fees on every transaction, and this is seriously affecting the users’ profit. However, on Coin Trade Base, there are low or no transaction charges. As a result, our users gain more outputs.
3. Simplified user’s interface
One of our aims is to make cryptocurrency trading and exchange easier for both the beginners, ordinary persons, and the professional traders. Coin Trade Base’s interface is simply designed, easy to access and understand, and facilitate cryptocurrency trading more than other older and clunky exchanges.
4. Unlimited high performance and worldwide presence
Coin Trade Base is a powerful and reliable platform built to withstand the present and future cryptocurrency market. Our exchanges’ servers will be powerful and dynamic to handle millions of transaction per second (according to the future market demand). Therefore, we can guarantee that there will be no delay or lag throughout the whole core order process when the market booms. CTB servers are located in global regions: Asia, America, Europe, Australia, Africa and more, and there will be fast server responses wherever the users are.
5. Active 24/7 customer support services
At CTB, we value our users and have put in place 24/7, professional and friendly customer support team members, who are ready to attend to our users’ needs at any time of the day, without any delay. CTB will offer customer services through different means including webpage, hotline, e-mail and social media. As the number of users grows, so does the customer support team grow simultaneously.
Features of CoinTradeBase Exchange
1. Push Notification
As we know that cryptocurrency market is very volatile and most traders always want to keep an eye on the market, we have implemented different push notifications to make trading easier for the traders by keeping them abreast of changes in the market. The push notifications allow:
To set price alerts for different coins.
To receive alerts when order is executed or partially filled.
To receive price-change alerts.
To create alerts for prices below or above your choice prices e.t.c.
2. Indicators
Market indicators are the mostly used statistical quantities that best traders use to predict the best behavior of the cryptocurrency markets at critical moments, and take timely actions to make profits from their prediction. CTB will cover the best evolutionary indicators for the trader to make informed decisions at various times.
3. Charts
This allows traders to study market pyschologies at various times, and give an insight on the history of different markets.
4. API Solutions
CTB exchange offers best and easy to use API solutions for market data on major cryptocurrencies. There is an availability of API that aggregates data from many exchanges. This will afford users opportunity to make informed decisions.
5. Conversion of CTB to all local currencies
CTB will support a lot of fiat currencies. On our Cryptocurrency Escrow Trading Platform, users will be able to convert their cryptocurrencies to their local currency (fiat currencies) anywhere in the world. In addition, on the Cryptocurrency Escrow Trading Platform, people will be able to trade all local fiat currencies against CTB token and some standard cryptocurrencies and tokens anywhere in the world. This will provide ample equal opportunity for traders and investors in the cryptocurrency world, most especially on the CTB exchange platform.
Products
i. Digital-to-fiat Escrow Exchange
ii. Digital-to-digital Exchange
Other Product fromCoin Trade Base
i. Decentralized Exchange
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Cryptocurrency: lives or dies? Part 1. Bubbles as a scarecrow for newcomers

Cryptocurrency: lives or dies? Part 1. Bubbles as a scarecrow for newcomers
Cryptocurrency: lives or dies? Part 1. Bubbles as a scarecrow for newcomers
The cryptomania 2017 was colossal. Although cryptocurrencies have existed since 2009, many people found out about them just in 2017, against the backdrop of the outstanding growth in rates and a clear sense of revolution. Many newcomers thought that the rates would grow forever. They were ready to buy digital currencies at any price considering any declines to be local, and growth to be global.
But 2018 brought an unpleasant surprise: the market suddenly began to break down. In the first quarter, many people hoped that this was only a “correction,” but the collapse continued. If early in 2018, Bitcoin (BTC) carried a record price of $20,000, then by September it had fallen in price to $6,300, that is, threefold. And the “heroic” ethereum (ETH), which almost surpassed BTC in terms of capitalization in Summer 2017, had fallen fivefold: from $1,300 to $250.

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In autumn, the market froze. It seemed that the bottom was reached and the restoration would begin soon. However, November brought another surprise: the rates dropped again. For example, BTC fell in price from $6,000 to $ 4,000. This happened so suddenly that it looked like an evident conspiracy of the major players, so-called “whales”. Autumn investors, following the earlier ones, suffered losses. Many of them completely become disillusioned with the crypto-market, having decided that it is entirely in the grasp to manipulators: such a “market” resembles MMM where quotes are randomly set by puppeteers.
In Winter, the market froze again, while in Spring a long-promised growth began. In March it continued to ascend carefully, and in April it continued to ascend unexpectedly sharply and symmetrically to the drop in November. In both cases, the BTC rate changed by $800 just for an hour, but in November it was a drop, while in April it was a rise. In both cases, there was no kickback: on the contrary, the movement went on. Optimists rushed to buy cryptocurrencies, but the most population smelt a rat. If not only drops but also rises occur "in a snap", is this not the best proof of pulling the strings?

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So do we believe in true market recovery now? Perhaps this is another trick? Is it worth investing in cryptocurrencies or is it better to forget them like a nightmare? Is the market entirely in the hands of puppeteers or does it have objective laws? We will try to understand this in more detail.
How did it get started: bitcoin and its bubble 2013
The first world’s cryptocurrency was Bitcoin (BTC). It appeared in 2009 and firstly it was known only to specialists in cryptography, as well as to particularly advanced free market activists. But soon it attracted the close attention of investors demonstrating in 2010-2013 a tremendous growth of 4 orders: from $ 0.1 to $ 1000. In other words, the average exchange rate grew by a factor of 10 per year (!!!)

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In 2013, this BTC’s success gained worldwide fame. However, as often happens, the shock popularization was no in favor of the asset rate: reaching a record mark of $1,200 in December 2013, BTC began to fall in price. Towards the end of 2014, its rate rolled back to $250, following which it remained relatively stable in 2015. A significant part of the growth in 2013 turned out to be a bubble. However, after blowing off the bubble, the BTC rate still remained significantly higher than it was early in 2013 (especially, in all previous years).

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How it continued: altcoins and general market bubble 2017
The new growth of the BTC rate began in 2016, and became especially explosive in 2017. At the same time, altcoins, new cryptocurrencies, “alternative” BTC - ethereum (ETH), lightcoin (LTC), emercoin (EMC), and many others asserted themselves in a massive way. If until 2016 they stayed in the deep background of the market flagship, then in 2017 their total capitalization for some time exceeded the capitalization of BTC. In Summer 2017 there was a moment when the ETH acting alone nearly advanced the BTC.

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By the end of 2017, BTC had risen in price to $20,000, while the total capitalization of the cryptocurrency market reached a huge amount of $800 bln (higher than capitalization of any global corporation). But this turned out to be yet another bubble: throughout 2018, just as in 2014, the rate of BTC and other currencies was falling). By the end of the year, the market capitalization decreased to $130 billion.
What can be shown by the comparison of two bubbles
Financial bubbles constitute an unpleasant phenomenon, and yet a logical one. By studying their dynamics it is possible to reveal a lot of interesting things about the nature of the new assets. If we look attentively at the figures, it is possible to note: the bubbles of 2013-2014 and 2017-2018 have much in common.
⦁ In both cases, the rate of bitcoin has dropped approximately five-fold. Market capitalization in the second case has dropped approximately 6-fold.
⦁ In both cases, a general decline lasted about a year, followed by a quiet period.
⦁ In both cases, "after bubbles" the rates have been fixed at the levels that are considerably higher than the levels "before bubbles". For example, at the end of 2014, BTC was much more expensive than at the end of 2012, while in late 2018 it was much more expensive than in late 2016.
DECLINE IN 5.3
DECLINE IN 4.8

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This simple comparison shows: the scale of the 2018 cryptocurrency crash is exaggerated. The bubble has developed according to the same scenario, as it happened last time, and seriously frightened only the novices.
Judging by the charts, the cryptocurrency market is more alive than dead. Moreover, it quite well follows the standard laws of financial bubbles’ development, and its multi-year trend is clearly positive. For the credibility one can recall, for example, the chart of the oil prices in the 2000s. As we can see here there is also a bubble and decline, but after that – recovery to the values, which are much higher than before the bubble. That’s what happens when the assets are really valuable (not just a short-lived hype), and this is exactly what we have been observing in case of cryptocurrency market.

https://preview.redd.it/2todpslnmw031.jpg?width=1280&format=pjpg&auto=webp&s=9da51f9b71f36dffb5b1af8152bb949286fb10c5
With a high degree of probability, right now cryptocurrency investments are of particular interest. The upward movement looks quite reasonable, and why it has happened so abruptly, is there some catch behind it, and what are the fundamental reasons that contributed to the upward trend – we will discuss all these questions next time
Analytical department, Trident company, Victor Argonov, Candidate of Physical and Mathematical Sciences.
Source:
http://trident-germes.com/category/article/
submitted by TridentGermes to Bitcoin [link] [comments]

Cryptocurrency: lives or dies? Part 1

Cryptocurrency: lives or dies? Part 1
Part 1. Bubbles as a scarecrow for newcomers

The cryptomania 2017 was colossal. Although cryptocurrencies have existed since 2009, many people found out about them just in 2017, against the backdrop of the outstanding growth in rates and a clear sense of revolution. Many newcomers thought that the rates would grow forever. They were ready to buy digital currencies at any price considering any declines to be local, and growth to be global.

But 2018 brought an unpleasant surprise: the market suddenly began to break down. In the first quarter, many people hoped that this was only a “correction,” but the collapse continued. If early in 2018, Bitcoin (BTC) carried a record price of $20,000, then by September it had fallen in price to $6,300, that is, threefold. And the “heroic” ethereum (ETH), which almost surpassed BTC in terms of capitalization in Summer 2017, had fallen fivefold: from $1,300 to $250.

https://preview.redd.it/ly1to0boz9y21.jpg?width=1280&format=pjpg&auto=webp&s=10a6f59dc9509c5bd571fb6145ac91158028e849
In autumn, the market froze. It seemed that the bottom was reached and the restoration would begin soon. However, November brought another surprise: the rates dropped again. For example, BTC fell in price from $6,000 to $ 4,000. This happened so suddenly that it looked like an evident conspiracy of the major players, so-called “whales”. Autumn investors, following the earlier ones, suffered losses. Many of them completely become disillusioned with the crypto-market, having decided that it is entirely in the grasp to manipulators: such a “market” resembles MMM where quotes are randomly set by puppeteers.

In Winter, the market froze again, while in Spring a long-promised growth began. In March it continued to ascend carefully, and in April it continued to ascend unexpectedly sharply and symmetrically to the drop in November. In both cases, the BTC rate changed by $800 just for an hour, but in November it was a drop, while in April it was a rise. In both cases, there was no kickback: on the contrary, the movement went on. Optimists rushed to buy cryptocurrencies, but the most population smelt a rat. If not only drops but also rises occur "in a snap", is this not the best proof of pulling the strings?

https://preview.redd.it/x14yabypz9y21.jpg?width=1280&format=pjpg&auto=webp&s=34f2b146d58ad4a406450bb2961709ba281c2dec
So do we believe in true market recovery now? Perhaps this is another trick? Is it worth investing in cryptocurrencies or is it better to forget them like a nightmare? Is the market entirely in the hands of puppeteers or does it have objective laws? We will try to understand this in more detail.

How did it get started: bitcoin and its bubble 2013

The first world’s cryptocurrency was Bitcoin (BTC). It appeared in 2009 and firstly it was known only to specialists in cryptography, as well as to particularly advanced free market activists. But soon it attracted the close attention of investors demonstrating in 2010-2013 a tremendous growth of 4 orders: from $ 0.1 to $ 1000. In other words, the average exchange rate grew by a factor of 10 per year (!!!)

https://preview.redd.it/m35lylysz9y21.jpg?width=1280&format=pjpg&auto=webp&s=7a30a6c591c049d0b5e076fb922a980127c531b1
In 2013, this BTC’s success gained worldwide fame. However, as often happens, the shock popularization was no in favor of the asset rate: reaching a record mark of $1,200 in December 2013, BTC began to fall in price. Towards the end of 2014, its rate rolled back to $250, following which it remained relatively stable in 2015. A significant part of the growth in 2013 turned out to be a bubble. However, after blowing off the bubble, the BTC rate still remained significantly higher than it was early in 2013 (especially, in all previous years).

https://preview.redd.it/4va61pjuz9y21.jpg?width=1280&format=pjpg&auto=webp&s=0f4a3800254ad0d70af8556467283ec87376e0cd

How it continued: altcoins and general market bubble 2017

The new growth of the BTC rate began in 2016, and became especially explosive in 2017. At the same time, altcoins, new cryptocurrencies, “alternative” BTC - ethereum (ETH), lightcoin (LTC), emercoin (EMC), and many others asserted themselves in a massive way. If until 2016 they stayed in the deep background of the market flagship, then in 2017 their total capitalization for some time exceeded the capitalization of BTC. In Summer 2017 there was a moment when the ETH acting alone nearly advanced the BTC.

https://preview.redd.it/dqyjr0yvz9y21.jpg?width=1280&format=pjpg&auto=webp&s=2daf6704930f105b301db95f7370027795911ede
By the end of 2017, BTC had risen in price to $20,000, while the total capitalization of the cryptocurrency market reached a huge amount of $800 bln (higher than capitalization of any global corporation). But this turned out to be yet another bubble: throughout 2018, just as in 2014, the rate of BTC and other currencies was falling). By the end of the year, the market capitalization decreased to $130 billion.

What can be shown by the comparison of two bubbles

Financial bubbles constitute an unpleasant phenomenon, and yet a logical one. By studying their dynamics it is possible to reveal a lot of interesting things about the nature of the new assets. If we look attentively at the figures, it is possible to note: the bubbles of 2013-2014 and 2017-2018 have much in common.

⦁ In both cases, the rate of bitcoin has dropped approximately five-fold. Market capitalization in the second case has dropped approximately 6-fold.
⦁ In both cases, a general decline lasted about a year, followed by a quiet period.
⦁ In both cases, "after bubbles" the rates have been fixed at the levels that are considerably higher than the levels "before bubbles". For example, at the end of 2014, BTC was much more expensive than at the end of 2012, while in late 2018 it was much more expensive than in late 2016.
DECLINE IN 5.3
DECLINE IN 4.8
https://preview.redd.it/p9nzmxuyz9y21.jpg?width=1280&format=pjpg&auto=webp&s=d11cea8a0e6802eb740df678a306e43cf882edd6
This simple comparison shows: the scale of the 2018 cryptocurrency crash is exaggerated. The bubble has developed according to the same scenario, as it happened last time, and seriously frightened only the novices.

Judging by the charts, the cryptocurrency market is more alive than dead. Moreover, it quite well follows the standard laws of financial bubbles’ development, and its multi-year trend is clearly positive. For the credibility one can recall, for example, the chart of the oil prices in the 2000s. As we can see here there is also a bubble and decline, but after that – recovery to the values, which are much higher than before the bubble. That’s what happens when the assets are really valuable (not just a short-lived hype), and this is exactly what we have been observing in case of cryptocurrency market.

https://preview.redd.it/z5p0rs130ay21.jpg?width=1280&format=pjpg&auto=webp&s=a7ea7e1d50b8e81baace77c7a17957ab0c364604

With a high degree of probability, right now cryptocurrency investments are of particular interest. The upward movement looks quite reasonable, and why it has happened so abruptly, is there some catch behind it, and what are the fundamental reasons that contributed to the upward trend – we will discuss all these questions next time
Analytical department, Trident company, Victor Argonov, Candidate of Physical and Mathematical Sciences.
Source: http://trident-germes.com/
submitted by TridentGermes to ENG [link] [comments]

zcash thesis

Zcash launched in 2016 and is a private digital asset which leverages Zero-Knowledge proofs, known as ZK-Snarks, to shroud transaction details such as transaction amount, sender and receiver. The team comprises of individuals with deep domain knowledge in both research in the field of cryptography together with growing and scaling companies.
Zcash was initially funded through the Zero Coin Electric company by a range of prominent angel investors. It has been reported that the company raised $1M; they have not disclosed the type of the round as is common with venture investing. The investors should at a minimum, benefit from the direct exposure to ZEC as an asset and other products that the company commercialise. This is a long term project (10+ years) and through research one can infer that private transactions is not the sole goal of the company. Like Bitcoin, Zcash has a fixed supply of 21 million.
Zcash leverages proof-of-work with 2MB block sizes with 150 second block times. Up until 2020, 20% of the mining reward is sent the the founder address and is known as the “Founder’s Reward”. The reward will cease after the first halving where 100% of the mining reward shall be received by the successful miner. The first halving is due in H2 2020 and occurs every four years. Zcash experiences a high inital inflation rate (similar to BTC) which the market has to absorb.
The founders reward will comprise 10% of the total supply of Zcash. The Founders Reward can be associated with a few distinct elements such as, investors, employees & advisors, and Zcash strategic reward. Zcash is an American company and might be adopted by the west. On the other hand, the chinese have a foundness towards chinese companies and Zcash may not be widely adopted in the East
The business seems introverted to the general crypto audience, they are prominent in the more technical conferences. This for me is not a concern, learn to walk before you can run.
Team and Investors
The team comprises of highly technical individuals from top tier research institutions. Given I am not an erudite in crypography it is reckless to provide an analysis of the research from the company and individuals. Faith is in the bio of the team and the knowledge around the table, particularly from the investors. I believe this to currently be the strongest team for the “privacy wars” as compared to the teams from other privacy focused assets such as, Monero.
Strategy
The company seeks to make private programmable money. Through my readings, the word programmable has appeared in a number of places and has caught my attention. To me, this reads smart contracts or virtual machine type capabilities. Additionally given the huge increase and adoption of the lighting network, I see layer two solutions being developed on the zcash chain (BOLT).
The company was funded through an equity round. This seems very much a seed round to me and revenue or additional capital for the company to be able to send of software development is to come from the founders reward.
Zooko has stated that they will investigated alternative consensus mechanisms such as PoS. They are not a leader in consensus mechanism algorithms and thus take little risk in amending such segments of the technology. I can see an instance where there is a hard fork for those wanting to remain on a PoW chain and those that want to migrate to a PoW chain (free coins). I believe there is a risk of capital management. Given the significant levels of research to be undertaken, if the founders reward is not sufficient enough there could be some issues. I will come onto this in financials.
There is no clear strategy, or one that is publicly available although, I am certain Zcash is going to be a groundbreaking development in the digital asset scene.
The market / users
There are an abundant variety of private digital money. Monero and Dash come to mind and there are many other projects. Monero given their mandatory privacy functions and long standing in the scene provide zcash with a genuine competitor. Additionally, a ecosystem may emerge where zcash is for the wealthy and large institutions and monero and other private cryptocurrencies are used for day to day spending and by a large retail audience.
There are huge changes in the private wealth ecosystem with a large wealth transfer in the order of trillions of dollars will be handed down a generation who are digital natives / millennials and open to digital currencies. They are more inclined to allocate risk capital to cryptocurrencies.
I dont not anticipate a paradigm shift with the users of zcash given the early stages of technical development of the entire ecosystem. Around H2 in 2020, I imagine some activity, other than that, I imagine it being uneventful. Zcash have already announced the upgrades in Blossom.
Z are private addresses and t addresses are transparent. Round trip transactions, most transactions are transparent given the complex and expensive data requirements for z transactions. This will reduce and private transactions will only increase
Financials
The company was centrally funded and is an American entity. The seed funding is utilised to get Zcash of the ground and fund initial development with the Founders Reward contributing to the development. There are approximately over five million in circulation with 20 million to be in circulation by 2050. The current inflation rate is therefore, 45% and will reduce with the block halving times. The market has to absorb a high degree of Zcash on a daily basis, supply will adjust but it may explain why zcash doesn't “pump” like other alt coins. Simply, given a $50 ZEC, 12.5 ZEC mined at very block and that there are 1440 minutes a day, the market has to absorb 7200 ZEC on a daily basis. On a fucking daily basis. Let that sink in. that is $360,000 in new issuance. At the all time high that is $7.2 million. Miners need to cover their costs.
The first halving will significantly impact the market as will the second, the 3rd halving will start to have a smaller effect and zcash by then could have migrated to a different consensus mechanism
What is worrying is the cost to launch a 51% attack on the network. It costs between $300,000 - $500,000 a day to launch a 51% attack on the network.
If this is a prolonged bear market, i.e. up until 2021, crypto development could potentially slow and there might be calls for zcash to extend the founders reward. I do not expect this to happen. At the moment I anticipate BTC to be above the 20-week MA by Q4 2020.
Price.
All assets are against BTC. I have marked out areas of significant resistance and I believe they will be tested around 2020. If the founders reward is extended, this will be a bearish impact on price along with delays or software issues.These areas will not be tested if there is bearish news regarding the founders reward. The chart is in a continually bear market. This is a direct result of the inflation rate, the market has to absorb a high number of Zcash on a daily basis, the founders reward and the overall nascent stage the company is in.

In terms of the bottom, it is very difficult to infer that given the historical price chart. I believe 0.014-0.011 is a good range for the bottom. Given current market conditions, we are close to the “bottom”. To be clear, given the lack of historical price it is difficult to provide a tighter range.

I have spent ~15 hours to research and write this.
submitted by Cryptocobbler to DigitalAssetResearch [link] [comments]

BetOnYourself - the best platform for Gamebet

BetOnYourself - the best platform for Gamebet
Introduction
About some years ago, one of my friends hailed his belief in Bitcoin and explained how he moved his whole life savings onto a hardware wallet and erudite his private alphanumeric key. He looked like a personality from a Neal businessman novel-gritty, daring and irreverent of the world’s established banking systems. While Bitcoin has soared since then and created him a wealthy person repeatedly over, the question now's if it'll still rise in price or if it’s already reached its height.
A digital currency “cryptocurrency” that has no tangible paper or physical coin illustration. Instead, cryptography techniques victimization computers and open supply package generate the currency supported proof, or blockchains. Cryptocurrencies like Bitcoin square measure decentralized: There’s no place sort of a bank wherever the currency is control, and a private security key tied to an open source ledger proves who holds the value. As AN electronic payment system, cryptocurrencies are instantaneous and have low transaction fees compared to traditional banking systems, which are comparatively slow and have high fees associated.
That’s why I’ve been onerous at work making an attempt to share this innovative project with my like crypto lover
https://preview.redd.it/hptvc3x1bgn21.png?width=200&format=png&auto=webp&s=49707636a634385d61c770b84b913802f042ce26
About BetOnYourself
The development of the BetOnYourself platform will be funded by selling vouchers (iBET) for our future escrow service fees to ICO backers. Vouchers (iBET) represent a complicated payment offers for the written agreement service and can be usable right once the launch of the BetOnYourself platform. As an iBET owner, you have the right to have your iBET tokens withdrawn at the time of a trade, but you can also decide to sell your rights on the market as iBET will be a tradable token. The iBET token will have a great advantage over other payment options. By victimization the iBET tokens, there will be a 50% discount on the service fees for every single bet placed. The amount of enjoying “bets on yourself” with one token are going to be supported the market value of iBET tokens at the instant of the trade. A transaction for an iBET holder will be charged at the best asking price which favours buying iBET tokens in advance. Any user are going to be charged a fee within the currency they're enjoying in; so, owning iBET tokens beforehand won't be necessary. The fee cost will be executed automatically. iBET owners will have their iBET tokens subtracted from the balance, based on the iBET’s market value.
BetOnYourself is, therefore, the perfect answer for all players out there who want to start earning from their hobby of playing games. Our main goal is to lead to a new way of professional gaming. How? BetOnYourself will serve as a peer-to-peer eSports wagering platform for members to compete against other similar skilled opponents and bet on themselves. The games square measure skill-based, and there will be no chance involved in a set challenge. The user-friendly platform will allow members to choose their own opponents, challenges and bet amount in a quick and efficient way.
As gamers, we have a tendency to noticed a void in services wherever players will vie {in a|during a|in AN exceedingly|in a very} challenge for an actual prize. Becoming knowledgeable gamer is also a dream for several, but only a small percent of them actually achieve that. In a competitive world of eSports, not everyone gets the chance to earn money from their skills, even if they truly possess them. BetOnYourself is here to change that.
BetOnYourself is a platform created by gamers who saw the potential in giving players the power of creating bets on their own gaming skills — a great idea coming to life with a strong team of professionals. Every player can bet as much money as he wants.
Every player can choose his opponent. Everything is in the player’s hands. BetOnYourself serves as a tool for players who want to bet on their own gaming skills against anyone, anytime, anywhere!
ESPORTS
eSports may well be the quickest growing sport within the world with nice benefits. It doesn’t got to be vie in-person; it will be vie anytime, and anyone can play. There are no limitations. It is a world of freedom that adapts to a private would like.eSports, by definition, is competitive gaming at a professional level in an organized format with a specific goal and a transparent distinction between players that square measure competitor against one another. Esports may be a true digital-first multi-platform recreation format, which implies it will be obtainable at the same time on mobile devices, tablets, desktop computers, streaming TVs, social media, stadiums, arenas and more — live or as play per demand.
VISION
As gamers, we tend to noticed a void in services wherever players will contend associate exceedingly|in a very} challenge for an actual prize. There are numerous revenue streams in eSports, the biggest being game publisher fees, media rights, advertising, sponsorship, merchandise and tickets, which combined bring in more than $906 million a year. But there's no revenue for associate degree everyday gamer. BetOnYourself is here to change that.
What makes eSports so appealing?
It is the actual fact that the success of a player is totally freelance of his physical attributes and skills. Two completely different players can excel in the game field, regardless of gender, culture or location. It is an area that connects everybody World Health Organization loves vice in any manner. MARKET OPPORTUNITY
The number of gamers worldwide in two017 was up to 2.2 billion worldwide across all platforms, and in the year before there were only around 13K professional gamers in the world. The percentage of skilled gamers is thus as tiny as zero,0006%. This means there is a massive number of amateur gamers who do not get the chance to make money from their gaming skills. That void will be filled with the BetOnYourself platform.N on-professional eSports players will get a chance to make a financial profit from their gaming skills. Their time may well be well spent, not simply during a sense of getting fun. The goal of BetOnYourself iBET
BUSINESS PROFITABILITY
Based on current player count data, our potential target goal in the first year of business is 1% of the market. The calculable earnings can, therefore, be calculated supported this p.c. On the average, we estimate that one player will bet 2.5$ and one game session between 2 players will have a joint bet amount of 5$. On average, a player plays three games per vice session. Our provision in each game session is 10% or 5% if the players are using our token iBET.Based on these figures we estimate: An annual market volume of 280 million challenges average platform transaction fee of 0.25$ per single challenge
TOTAL annual fee income of $105 million based on the average between both fee amounts, 5%, and 10%.
BUSINESS PROFITABILITY
Based on current player count information, we have predicted our potential earnings in the first year of operations. Since info regarding player count for each game isn't clear and visual to the general public, the actual results can be higher or lower. The model may be a sample calculation that's supported public info on that the supply is often listed. Since the numbers don't seem to be official, the calculations should not be considered as information for an investment in tokens or a solicitation to buy tokens.
The vice corporations don't enable insights of their player base by default, but some of the numbers can be found on sources like Steam Charts and Steam Spy, which apply to PC games only. That means that the numbers across all platforms area unit abundant higher.
The Statistics Portal has published a number of player bases for different games in August of 2017, listed below.LOL 100 million Hearthstone 23.9 million Fortnite 45 million (Source: Epic Games, 2018) FIFA 18 12.3 million PUBG 6.8 million data 2 12.6 million Starcraft 2 2.4 million

For more info

BOUNTYOX Username: @cryptounique
submitted by 1loveone to ICOAnalysis [link] [comments]

- BetOnYourself - the best platform for Gamebet

About some years ago, one of my friends hailed his belief in Bitcoin and explained how he moved his whole life savings onto a hardware wallet and erudite his private alphanumeric key. He looked like a personality from a Neal businessman novel-gritty, daring and irreverent of the world’s established banking systems. While Bitcoin has soared since then and created him a wealthy person repeatedly over, the question now's if it'll still rise in price or if it’s already reached its height.
A digital currency “cryptocurrency” that has no tangible paper or physical coin illustration. Instead, cryptography techniques victimization computers and open supply package generate the currency supported proof, or blockchains. Cryptocurrencies like Bitcoin square measure decentralized: There’s no place sort of a bank wherever the currency is control, and a private security key tied to an open source ledger proves who holds the value. As AN electronic payment system, cryptocurrencies are instantaneous and have low transaction fees compared to traditional banking systems, which are comparatively slow and have high fees associated.
That’s why I’ve been onerous at work making an attempt to share this innovative project with my like crypto lover

About BetOnYourself
The development of the BetOnYourself platform will be funded by selling vouchers (iBET) for our future escrow service fees to ICO backers. Vouchers (iBET) represent a complicated payment offers for the written agreement service and can be usable right once the launch of the BetOnYourself platform. As an iBET owner, you have the right to have your iBET tokens withdrawn at the time of a trade, but you can also decide to sell your rights on the market as iBET will be a tradable token. The iBET token will have a great advantage over other payment options. By victimization the iBET tokens, there will be a 50% discount on the service fees for every single bet placed. The amount of enjoying “bets on yourself” with one token are going to be supported the market value of iBET tokens at the instant of the trade. A transaction for an iBET holder will be charged at the best asking price which favours buying iBET tokens in advance. Any user are going to be charged a fee within the currency they're enjoying in; so, owning iBET tokens beforehand won't be necessary. The fee cost will be executed automatically. iBET owners will have their iBET tokens subtracted from the balance, based on the iBET’s market value.
BetOnYourself is, therefore, the perfect answer for all players out there who want to start earning from their hobby of playing games. Our main goal is to lead to a new way of professional gaming. How? BetOnYourself will serve as a peer-to-peer eSports wagering platform for members to compete against other similar skilled opponents and bet on themselves. The games square measure skill-based, and there will be no chance involved in a set challenge. The user-friendly platform will allow members to choose their own opponents, challenges and bet amount in a quick and efficient way.
As gamers, we have a tendency to noticed a void in services wherever players will vie {in a|during a|in AN exceedingly|in a very} challenge for an actual prize. Becoming knowledgeable gamer is also a dream for several, but only a small percent of them actually achieve that. In a competitive world of eSports, not everyone gets the chance to earn money from their skills, even if they truly possess them. BetOnYourself is here to change that.
BetOnYourself is a platform created by gamers who saw the potential in giving players the power of creating bets on their own gaming skills — a great idea coming to life with a strong team of professionals. Every player can bet as much money as he wants.
Every player can choose his opponent. Everything is in the player’s hands. BetOnYourself serves as a tool for players who want to bet on their own gaming skills against anyone, anytime, anywhere!
ESPORTS
eSports may well be the quickest growing sport within the world with nice benefits. It doesn’t got to be vie in-person; it will be vie anytime, and anyone can play. There are no limitations. It is a world of freedom that adapts to a private would like.eSports, by definition, is competitive gaming at a professional level in an organized format with a specific goal and a transparent distinction between players that square measure competitor against one another. Esports may be a true digital-first multi-platform recreation format, which implies it will be obtainable at the same time on mobile devices, tablets, desktop computers, streaming TVs, social media, stadiums, arenas and more — live or as play per demand.
VISION
As gamers, we tend to noticed a void in services wherever players will contend associate exceedingly|in a very} challenge for an actual prize. There are numerous revenue streams in eSports, the biggest being game publisher fees, media rights, advertising, sponsorship, merchandise and tickets, which combined bring in more than $906 million a year. But there's no revenue for associate degree everyday gamer. BetOnYourself is here to change that.
What makes eSports so appealing?
It is the actual fact that the success of a player is totally freelance of his physical attributes and skills. Two completely different players can excel in the game field, regardless of gender, culture or location. It is an area that connects everybody World Health Organization loves vice in any manner. MARKET OPPORTUNITY
The number of gamers worldwide in two017 was up to 2.2 billion worldwide across all platforms, and in the year before there were only around 13K professional gamers in the world. The percentage of skilled gamers is thus as tiny as zero,0006%. This means there is a massive number of amateur gamers who do not get the chance to make money from their gaming skills. That void will be filled with the BetOnYourself platform.N on-professional eSports players will get a chance to make a financial profit from their gaming skills. Their time may well be well spent, not simply during a sense of getting fun. The goal of BetOnYourself iBET
BUSINESS PROFITABILITY
Based on current player count data, our potential target goal in the first year of business is 1% of the market. The calculable earnings can, therefore, be calculated supported this p.c. On the average, we estimate that one player will bet 2.5$ and one game session between 2 players will have a joint bet amount of 5$. On average, a player plays three games per vice session. Our provision in each game session is 10% or 5% if the players are using our token iBET.Based on these figures we estimate: An annual market volume of 280 million challenges average platform transaction fee of 0.25$ per single challenge
TOTAL annual fee income of $105 million based on the average between both fee amounts, 5%, and 10%.
BUSINESS PROFITABILITY
Based on current player count information, we have predicted our potential earnings in the first year of operations. Since info regarding player count for each game isn't clear and visual to the general public, the actual results can be higher or lower. The model may be a sample calculation that's supported public info on that the supply is often listed. Since the numbers don't seem to be official, the calculations should not be considered as information for an investment in tokens or a solicitation to buy tokens.
The vice corporations don't enable insights of their player base by default, but some of the numbers can be found on sources like Steam Charts and Steam Spy, which apply to PC games only. That means that the numbers across all platforms area unit abundant higher.
The Statistics Portal has published a number of player bases for different games in August of 2017, listed below.LOL 100 million Hearthstone 23.9 million Fortnite 45 million (Source: Epic Games, 2018) FIFA 18 12.3 million PUBG 6.8 million data 2 12.6 million Starcraft 2 2.4 million

For more info

BOUNTYOX Username: @cryptounique
submitted by 1loveone to u/1loveone [link] [comments]

Cryptocurrencies Livestream  Top Cryptocurrency Markets ... Bitcoin is NOT the best cryptocurrency investment  BUT THESE CRYPTO COINS ARE CRYPTO PREDICTIONS 2019  FREE BITCOIN HEX  TRON ... C of C 1-7-17 Bitcoin and the Cryptocurrency Phenomenon / Digital Currency BITCOIN BOTTOM IS IN? BULL MARKET BEGINS?❗️LIVE Crypto Analysis TA & BTC Cryptocurrency Price News

Bitcoin chart. Prices. Bitcoin - dollar. Bitcoin rate (btc) USD 2,000,000.00 . daily changes - USD 1000.00 (1.00%) Buy. HUF USD EUR. 1h 1d 1w 1m 3m 6m 1y. Last updated on: Bitcoin (btc) Bitcoin is an open-source cryptocurrency. The first bitcoins were created and mined by Satoshi Nakamoto on 3 of January 2009. We write the software with a capital “B” like Bitcoin, while coins are written ... BITCOIN: Cryptography, Economics, and the Future by Starry Peng Advisor: Nadia Heninger EAS499 Senior Capstone Thesis School of Engineering and Applied Science University of Pennsylvania December 10, 2013 . 1 1. INTRODUCTION In today’s world, the increased connectivity provided by the Internet has changed the nature of financial transactions. With recent developments in social media, peer-to ... Every bitcoin chart is designed to provide all updated information for the easy viewing convenience of those seeking any particular information linked to bitcoin. The financial and technical data acquired from these charts certainly makes understanding what bitcoin charts are and how to use them a worthwhile exercise. Bitcoin is a cryptocurrency, a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities. The presumed pseudonymous Satoshi Nakamoto integrated many existing ideas from the cypherpunk community when creating bitcoin. Over the course of bitcoin's history, it has undergone rapid growth to ... Cryptography is the process of communicating securely in an insecure environment – i.e. where other people can listen in and control the communication channel. The message you wish to send is converted to a cipher text that appears to be gibberish unless you know the secret to unlocking it. There are two main types of cryptography – symmetric and asymmetric.

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