Bitcoin is known as the very first decentralized digital currency, they’re basically coins that can send through the Internet. 2009 was the year where bitcoin was born. The creator’s name is unknown, however the alias Satoshi Nakamoto was given to this person. Bitcoin accounts cannot be frozen, prerequisites to open them don’t exist, same for limits on bitcoin mining computer .
Advantages of Bitcoin
Bitcoin transactions are made directly from person to person trough the internet. There’s no need of a bank or clearinghouse to act as the middle man. Thanks to that, the transaction fees are way too much lower, they can be used in all the countries around the world. Every day more merchants are starting to accept them. You can buy anything you want with them. How Bitcoin works. You should explore bitcoin mining. It’s possible to exchange dollars, euros or other currencies to bitcoin. You can buy and sell as it were any other country currency. In order to keep your bitcoins, you have to store them in something called wallets. These wallet are located in your pc, mobile device or in third party websites. Sending bitcoins is very simple. It’s as simple as sending an email. Invest in bitcoin to get great returns.
You can purchase practically anything with bitcoins.Bitcoin Anonymity.When doing a bitcoin transaction, there’s no need to provide the real name of the person. Each one of the bitcoin transactions are recorded is what is known as a public log. This log contains only wallet IDs and not people’s names. so basically each transaction is private. People can buy and sell things without being tracked.
Bitcoin innovation. Bitcoin established a whole new way of innovation. The bitcoin software is all open source, this means anyone can review it. A nowadays fact is that bitcoin is transforming world’s finances similar to how web changed everything about publishing. The concept is brilliant. When everyone has access to the whole bitcoin global market, new ideas appear. Transaction fees reductions is a fact of bitcoin. Accepting bitcoins cost anything, also they’re very easy to setup. Charge backs don’t exist. The bitcoin community will generate additional businesses of all kinds.
What Makes bitcoin mining computer So Interesting?
Jesus H. Christ folks. I’ve put off doing this one a little bit, in part because I’m a bit depressed/disappointed/confused/? in the direction this is headed. As always, I’ll leave my opinions until the end, so those of you who are strictly reading for the data herein can click “close” when I start ranting.
The Basic Attention Token ICO, lead by Brendan Eich, is an attempt to tokenize human attention on the internet. The ICO was certainly highly anticipated by the community, which I believe exacerbated the trends we’ve been seeing from the ICO space, as shown by my previous articles covering the Gnosis, TokenCard, and Aragon ICOs. Go read them, this one will cover that same information, and a bit more.
Here is the summary on the ICO specifics:
- Desired Cap: 156,250 ETH
- Start Date: Block 3,798,640, approx. May 31, 2017, 8 am PDT
- Potential Investment Window: 30 days or until cap met
- Practical End Date: Block 3,798,642 (timeframe of 3 blocks)
- Technical End Date: Block 3,798,720 (small fry txs to get to cap)
- Total Supply of BAT: 1.5 billion
- Total BAT for Sale: 1 billion
- BAT Development Pool: 200 million
- User Growth Pool: 300 million
How’d I Do It?
This was all done using Project Jupyter notebooks and the Pandas package. The transactions were retrieved using my Python bindings to the Etherscan.io API (tagging Matthew Tan). The methodology is very similar to my previous articles mentioned earlier, and the Jupyter notebooks of all of it can be found in a new Github repo.
In particular, I retrieved all transactions from the BAT contract address from Etherscan.io, and parsed out the ones that had an error or had a value of 0 ETH. This is my dataset. All conclusions and numbers are derived from that. That being said, the plots include all transactions, included the ones that had an error. I find it interesting to see the behavior of the contract with those that try and interact with it.
Let’s look at some stats from ICO:
- Total non-zero successful txs: 185
- Total unique addresses: 184
- Total tx fees paid: 70.15489 ETH
- Current num BAT holders: 2222 (as of June 5, 2017, 8:40 PM EST)
Practically speaking, the ICO was finished after 3 blocks. 99.9996% of the desired 156,250 ETH was put in by then. Below is a list of the top 10 contributors. The remaining successful txs are just people who asked for a small enough amount to get their transaction in.
Note that some have said the large transactions were the team itself that were the reserved pools. THIS IS NOT CORRECT. These are investors buying from the Token sale. The reserved pool amounts are outside of the tokens that were for sale. Go look at the website, it clearly states the breakdown.Top 10 contributors
Some lucky/smart bastard got two transactions in! His address is 0x001934d46ef025ec18f292f4c5f42ec85f2deb26 and here are the deets:
Ok, let’s look at the investor distribution, like we’ve done in the other breakdowns. Even though its a bit of a misnomer this time, it’s kinda my thing now, I guess. The first is the table, the second is the plot:Interactive Version: https://plot.ly/~CoreyPetty/186/percentage-vs-investor-group/
With only a few people getting into the ICO, its quite clear the vast majority of people who actually got to invest were large ETH amount contributors, and they were prepared.
Before I start my rants, if there is more data that you’d like to see in particular, leave a comment and I’ll try and add it. It isn’t that difficult for me to produce information from the raw data. If you’re capable, I invite you to do it yourself. You have access to what I’ve done and how I’ve done it through my github, use it, and answer your own questions! If you don’t know how, ask. I’d like to think this community has a strong desire to help others understand what we’re trying to build.
Thoughts on Trends in the Space, Some Warnings:
Guys… what the fuck are we doing?
It’s quite clear that the trends of the ICO space are getting a bit out of hand. Yes, I’ve only done analysis on the largest ones, and it can be said that BAT is one of the most legitimate ones. Brendan Eich’s track record, the Brave Browser actually exists and is in use (I personally use it for about 30% of my internet browsing), The amount of press, time, and instruction the team gave investors. All of these helped contribute to its quick sell out.Selling all of your tokens to a few individuals is not the point.
I think we can safely assume anyone that got into the BAT ICO isn’t planning on actually using BAT. I’m going to go out on a limb and guess that almost every single person who participated successfully is attempting to distribute the BAT they bought in order to make profits when they hit exchanges, taking advantage of the FOMO of these times.
I’m cool with making a buck and smart investment strategy. I can’t really blame the people who are doing it here, it was clear that was going happen if anyone cared to look at past ICO results. I blame those creating the ICO terms. The number one rule of blockchains that involve value transfer is that if it can be gamed, it will be. If your goal is to distribute your token to those who are interested in what you’re trying to do, then it is your responsibility to structure your platform so that the people you’re trying to reach are able to reach you.
Something else of note. We have no idea if the people actually doing the ICO aren’t investing in their own platform and making a profit off themselves twice. I don’t see why they wouldn’t. (pure conjecture, but clearly a possibility)
There are negative consequences if we continue along this road, namely:
- The FOMO associated with very short window, high value ICOs will artificially inflate the value of the underlying project, and fund a project with far too much money as a start-up. This doesn’t align incentives to provide a quality product to the end-user. If you raise that much money as a start-up, you’ve won. What do you care? You are required to have an extraordinary amount of ethics to continue to the best of your ability.
- This artificially inflated sense of scarcity boosts the price, and thus the underlying valuation of the project which they can’t operate it. It strangles them.
- If the standard moves towards this behavior, we won’t allow people to do enough due diligence. Investors will just throw money at every project, hoping one will stick. This creates an environment that’s ripe for scamming or poor quality ideas getting funded. A shitty white paper is not enough for millions of dollars of an investment.
- Eventually, some of these projects will fail miserably, and people will lose a significant amount of money. More than likely, the majority of these projects will not be able to produce what the set out to, leaving their community holding a depreciating bag of shit.
I love the idea of a token that represents the API key to your platform, and as your platform grows, those that add value to it get rewarded. There are plenty of ways this new model of business is going to change the world, but we’ve started off on the wrong foot, and the investors and scammers are going to do everything in their power to ruin it for us. This road can potentially ruin us at the very worst, or just set us back for a long time when something inevitably goes wrong.
Maybe I’m just being cynical, but I doubt it. Hit me with your thoughts.
Holla at ya Boi!
I do this because I’m curious, and feel this type of information is lacking. We need to keep an eye on “where the money comes from” as we build this community out.
As always, come listen to The Bitcoin Podcast and BlockChannel to hear me talk to people in the space about what they’re doing. Our slacks (TBP and BlockChannel) are always welcome to the community as well. I’m always present in them to talk.
If you don’t like slack, hit me up on twitter at @corpetty or email me at email@example.com
Throw me some duckets of you like what I’m doing, and have some to spare. The donations definitely help me stay motivated to do these:ETH and ERC20 Tokens
ETH and ERC20 tokens: 0x8F53781799515e5dc8f5D00C528940cAe99aC969BTC Address
Should I Invest in Bitcoin?
Today, a look at what’s going on with bitcoin in Singapore, a tiny Southeast Asian island city-state which boasts the world’s fourth-biggest financial centre, third highest per-capita income and (arguably) best regulatory jurisdiction for bitcoin startups. Only 5.5 million people live in Singapore, but its high ranks in education, healthcare, and economic competitiveness make it an interesting case study for how bitcoin might impact developed economies in Asian. Antony Lewis, a Director at itBit Bitcoin Exchange in Singapore breaks down the opportunity.
“Bitcoin in Singapore” | Antony Lewis, Director, itBit Bitcoin Exchange
In 2014 there were major advancements in the use, regulation and development of bitcoin and related technologies worldwide. In Asia, Singapore played a particularly significant role in this progress, and its citizens and businesses continue to be in the vanguard of the digital currency industry. Bitcoin in Singapore has benefited from a combination of community enthusiasm, entrepreneurial innovation, and regulatory restraint.
It all started in December 2013, when the Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, suggested in an email to Coin of Sale, a brick-and-mortar point of sale software provider, that it would not regulate the acceptance of bitcoin by businesses. MAS called participation in such transactions a commercial decision in which the Authority should not intervene. Then in January, the Inland Revenue Authority of Singapore (IRAS) became one of the first regulatory bodies in the world to make a determination on how digital currencies should be taxed. The IRAS ruled that individuals who made money through bitcoin investments, would be taxed at the current zero percent capital gains tax rate. Digital currency transactions involving real money or services, such as buying and selling bitcoins with dollars or paying for services with bitcoins, would qualify for GST (Goods & Services Tax), but there would be no such tax on “virtual world” transactions (e.g. in-game currencies).
In March, Singapore became one of the first countries to take an official regulatory stance on digital currencies. MAS announced its plans to regulate digital currency intermediaries operating in Singapore in order to ward off money laundering schemes or terrorism financing that leveraged the anonymity of digital currencies, and indicated that intermediaries who bought, sold or facilitated the exchange of digital currencies for other currencies would be required to verify customers’ identities as well as to report any suspicious transactions to the Suspicious Transaction Reporting Office. However, MAS did not consider bitcoin or other digital currencies to be securities or legal tender, and as such bitcoin avoided regulation under Singapore’s Securities and Futures Act or Financial Advisers Act.
Regulatory clarity has propelled Singapore to the forefront of the digital currency industry.Temasek Holdings, a government-owned Singapore investment company, even ran a bitcoin experiment, wherein four hundred employees at the company, “from driver to board member,” learned how to use digital currency for charitable donations. As a result of this commitment to innovation, other venture capitalists from across the globe have taken notice.
Our company itBit raised a total of $5.5m in funding in 2013. In March, GoCoin (incorporated in Singapore), a payments processor that facilitates online businesses to accept bitcoin, litecoin and dogecoin, closed a $1.5 million Series A financing. BitX, which provides bitcoin products and services including wallets, exchanges, merchant integration and APIs to consumers, businesses and developers, announced in August it had raised USD $800,000 in seed funding from investors in New York, Palo Alto and London. That same month, Boost VC, a Silicon Valley bitcoin accelerator company, announced it had selected Singapore-based bitcoin exchange and wallet service CoinHako as its first Asian investment, which also included a six-figure personal investment from venture capitalist Tim Draper. And two months later, Coinpip, a cryptocurrency payment gateway for international contractors and freelancers, was selected to join 500 Startups.
Other ventures might soon join those funded ranks as well. In September, CRXzone became the first Singaporean exchange to offer both bitcoin and litecoin trading in Singapore. Point of sale technology from Coin of Sale converts retail prices into bitcoin for brick and mortar stores and is being used in a number of different countries today. And Singapore now has at least eight operational bitcoin vending machines, the first of which was manufactured, installed and operated by Singapore company Tembusu Terminals. Numoni, a mobile airtime vending machine manufacturer, Bitcoin Exchange which installed the popular Lamassu bitcoin vending machine in shopping malls, and Coin Republic, which launched Singapore’s first bitcoin kiosk capable of “cashing out” or disbursing banknotes in exchange for bitcoins have also entered the bitcoin ATM scene locally.
Trade associations and bitcoin educators are also thriving. In May, a group of Singaporean bitcoin businesses officially formed a trade association, the Association of Cryptocurrency Enterprises and Start-ups, Singapore (ACCESS), which aims to promote Singapore as one of the premiere bitcoin business locales in through education and dialogue with the government. Singapore Management University, as part of its commercial law program, offered a seminar in November on the regulation of digital currencies as well as a seminar series focused on the technical aspects of the cryptocurrency. And in addition to March’s Coin Congress, which featured many global digital currency experts and enthusiasts, Bitcoin also made its debut at Asia’s largest tech conference,Echelon, which featured a panel on Bitcoin as a disruptive technology.
Not a bad start for a country less than 2% as populous as the United States! Here’s to a prosperous 2015 for digital currencies in Singapore and abroad!
The MIT E-Lab is a well established (20+ year) program that helps startups by matching them with MIT & Harvard business school students for a semester. The E-Lab is now looking for cryptocurrency related startups at various stages, so apply if you think this could help your efforts. (You don’t need to be local, but a c-level exec has to be in Cambridge frequently.) To apply, or for more info on E-Lab visit http://elab.mit.edu/.
Inside Bitcoins Conference and Expo — Berlin (Mar. 5–6), and New York (Apr. 27–29)
Inside Bitcoins is the largest bitcoin and blockchain technology focused event series worldwide. At each event you’ll hear about the latest challenges, trends, and opportunities in the industry from experts including Chris Odom, Co-Founder and CTO, Monetas; Marshall Swatt, Chief Technology Officer and Co-Founder, Coinsetter; Dan Morehead, Founder & CEO, Pantera Capital Management; Gil Luria, Managing Director, Wedbush Securities; and more.
Plus, TBI Daily readers get 10% off the Berlin and New York events with code TBIDAILY. See you there!
Jobs, Jobs, Jobs
Bitnet, San Francisco, Belfast, London (VC-backed)
-Leading digital commerce platform & former Visa team.
-Open positions: Engineering (Customer Success, Lead UI, Product, DevOps), Sales Director (EMEA), Sales Engineer (San Francisco)
-Check out Bitnet (https://bitnet.io/careers.html) and email firstname.lastname@example.org
Coinbase, San Francisco (VC-backed)
-Largest “universal services” bitcoin company.
-Open positions: Security Engineer, Software Engineer (2–3 years mobile product development), Regulatory Compliance Investigator, (1 year conducting SAR investigations)
-Check out Coinbase (https://www.coinbase.com/careers/)
BitGo, Palo Alto (VC-backed)
-The leading Bitcoin multi-sig security company
-Open positions: Back-end / Front-End / iOS / Security Engineers, UX Designer
-Check out BitGo (www.bitgoinc.com/jobs) and email email@example.com
Bolt, San Francisco (VC-backed)
-Stealth startup focused on consumer applications of Bitcoin.
-Open positions: Security Engineer, Ruby Engineer, UI/UX Designer, Executive Assistant.
-Check out Bolt (bolt.com) and email firstname.lastname@example.org.
Elliptic, London (VC-backed)
-Vault and enterprise digital currency services.
-Open positions: Data Scientists and Front-end developers.
-Learn more and apply at elliptic.workable.com
Today’s Tid Bits
Hong Kong’s MyCoin Disappears With Up to $387 Million, Reports Claim
MyCoin, a Hong Kong based bitcoin exchange, has shut down, taking with it possibly as much as HK$3bn ($386.9m) in investor funds. If true, this would be an incredible amount, considering bitcoin’s entire market cap today stands at around USD$3bn. Some customers suspect MyCoin was operating a ponzi scheme. The victims of the company’s actions are expected to make a statement to the Hong Kong police on Wednesday.
Inside the Chinese Bitcoin Mine That’s Making $1.5M a Month
Motherboard gained access to a massive Bitcoin mine located in a repurposed factory in the Liaonin Province in rural northeast China. The mine is one of six sites owned by a group of four people, who run a mining operation that cumulatively generated 4,050 bitcoins a month, and grosses around $1.5 million. The mines represent 3% of the entire Bitcoin network. A video of the mine can be found in the link above, but the details of the operation’s ASIC miners or who supply them is not revealed.
New BitLicense Draft Draws Half-Welcome from Bitcoin Reps
The updated BitLicense, released last Wednesday, appears to have lived up to Benjamin Lawsky’s promise. The new draft includes an exemption from having to obtain a license for software developers that aren’t directly engaged in money transmission, and it also offers a softer regulatory touch for small startups. However, most bitcoin leaders believe the draft still has a long way to go.
Andreas Antonopoulous: “Give Bitcoin Two Years”
Andreas Antonopoulous spoke at the Bitcoin & the Blockchain Summit in San Francisco last week, emphasizing it’s underlying technology, praising it’s dumb, transaction-processing network saying that this type of network supports smart devices, pushing all of the intelligence to the edge. Andreas went on to say that if 2014 is the “worst year in bitcoin,” which saw $500 million in investment generating tens of thousands of jobs were going to be all right. Andreas finished with a prediction that in two years, bitcoin will be taking off.
New Jersey State Legislature Holds Hearing on Digital Currencies
The Assembly Financial Institutions and Insurance Committee of the State of New Jersey is holding a public hearing on bitcoin and digital currency today. The committee has invited select guests to testify to the applications, consumer protection risks and concerns, advantages and current US regulatory schemes related to digital currency use. The lineup of speakers includes attorney and Blockchain global policy counsel, Marco Santori, itBit CEO Charles Cascarilla, and Tera Exchange co-founders Christian Martin and Leonard Nuara.
Ex-Credit Suisse CEO: Invest in Gold and Bitcoin Long-Term, Not Fiat
Oswald Gruebel, ex-CEO of UBS and Credit Suisse, has openly criticized the inability of banks to prevent economic crises, while championing gold and Bitcoin as credible long-term investment opportunities. Gruebel believes that bank’s weaknesses would continue to have an increasing detrimental effect on the global economy. No supporting evidence has been released to indicate Gruebel’s openness towards Bitcoin’s propagation domestically or internationally.
Payments Processor ChainPay Launches to Challenge Coinbase, BitPay
ChainPay, an Isle of Man-based bitcoin payment processor, has launched in the hopes of competing with BitPay and Coinbase. ChainPay takes 1% of every transaction and offers bitcoin exchange rates from Kraken of Bitstamp. ChainPay currently has banking relationships set up, according to James Carter, ChainPay’s co-founder, but would not release the name of the bank.
Diamond Circle Suspends Operations Amid Cash Crisis
Diamond Circle, an Australian bitcoin hardware manufacturer, has suspended operations citing a lack of capital. The company, which launched Australia’s first cashless ATM last year, is looking for a buyer for the majority of its services. The wallet service is expected to be permanently suspended in the next few days. The company is currently considering buyers, but specifics could not be revealed at his time.
The Race to Replace Bitcoin: ‘Bad Blood’ Between Ripple and Stellar Aires in Tell-All Report
Yesterday, The New York Observer published a 15,000-word story that takes a detailed look at the “bad blood” between the decentralized payment networks, Ripple Labs and Stellar. The story between the two, penned by Michael Craig, “Has everything: sex, huge money, fraud, genius, betrayal, international intrigue and government raids.” Jed McCaleb, the founder of defunct bitcoin exchange, Mt. Gox, Ripple Labs and Stellar, and Stellar executive director Joyce Kim take the brunt of the article’s burns. The story also reports that Wells Fargo had assembled a task force compromising 20 of its “top executives and advisors” that was aimed at finding a way to be the first bank to embrace cryptocurrency, but it fell apart. Craig also covers the fallout of a deal that involved Stripe purchasing Ripple Labs for $13m in cash.
Irish University to Explore ‘Bitcoin Credit-Checks’
A group of computer science students and professors from Trinity College Dublin are working on Bitcoin related projects that aim to tackle and reduce fraud, by combing the blockchain in search of patterns. The group is looking in to “bitcoin credit-checks,” which would allow businesses to peek at a database to check for credit, or other information. Overall, the group wants to enhance Bitcoin transparency.
bitLanders to be a Sponsor of the 2015 New York Open Judo Team Championship
bitLanders, a digital platform whose user base earns Bitcoin for creating, engaging and sharing visual content, will once again be a sponsor of the New York Open Judo Team Championship on Sunday, March 29, 2015. The New York Athletic Club will host the event and the award for the event will be the bitLanders Bitcoin Judo Cup.
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