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 best bitcoin mining hardware .
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 best bitcoin mining hardware So Interesting?
Bitcoin Cash’s sudden announcement on Saturday that they’ll go ahead with a fork on August 1 caught a lot of people, including myself, by surprise. In this article, I’m going to explain what Bitcoin Cash (aka BCC) is, how it affects you and how you should prepare for August 1.
What is Bitcoin Cash?
- Here is the project announcement on Bitcointalk.
- Here is the project website.
From the project website’s FAQ:What is Bitcoin Cash?
Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.
The prominent use of “peer-to-peer electronic cash” is purposeful here. Bitcoin Cash is seeking to be a cryptocurrency that’s focused on transaction capacity.
Why is this fork a surprise?
Many people (including myself) thought that this fork would only trigger if BIP148 were able to split the network. In other words, many people thought Bitcoin Cash (and its client Bitcoin ABC) was just a credible threat to prevent a contentious user-activated soft fork (UASF). Bitmain actually stated that the Segwit2x (aka New York Agreement) would be preferable:
So naturally, when BIP91 (first part of Segwit2x) locked-in and activated ahead of BIP148, which is scheduled for August 1, most assumed this would prevent the so-called user-activated hard fork (UAHF) from triggering.
But, it looks like Bitcoin Cash supporters had other ideas.
Why should I care?
You should care because Bitcoin Cash is a permanent fork of Bitcoin.
Again, from the FAQ:Is Bitcoin Cash different from ‘Bitcoin’?
Yes. Bitcoin Cash is the continuation of the Bitcoin project as peer-to-peer digital cash. It is a fork of the Bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow and scale.
This means that if you own Bitcoin (that is, you control your own private keys) prior to the fork on 2017 August 1 12:20 UTC, you will have the same amount of Bitcoin and Bitcoin Cash after the fork.
Lest you think these BCC isn’t worth anything, BCC futures are currently trading at about $475 on ViaBTC.
What do I need to know?
First, you should know that many exchanges, including Coinbase, are simply not prepared for this event.
Again, from the FAQ:If I own Bitcoin, do I automatically own Bitcoin Cash too?
Yes. Because Bitcoin Cash is a fork of the ledger, that means you own the same amount of Bitcoin Cash as you did Bitcoin at the time of the forking block. However, if your Bitcoins are stored by a third party such as an exchange, then you must inquire with them about your cash.
Note that last sentence. Exchanges or third-party bitcoin storage providers may or may not give you your Bitcoin Cash. It’s likely that third party services will try to do the right thing, but there’s no way to know if they can get everything set up in time to be able to give you the Bitcoin Cash you’re entitled to.
Second, all hard forks present two risks: replay and wipeout attacks. Wipeout is not a as much risk since this is a permanent fork (there are scenarios where one chain’s miners may attack the other, but this isn’t in play yet). Replay protection is provided as part of the Bitcoin Cash release as explained in the FAQ:How is transaction replay being handled between the new and the old blockchain?
Bitcoin Cash transactions use a new flag SIGHASH_FORKID, which is non standard to the legacy blockchain. This prevents Bitcoin Cash transactions from being replayed on the Bitcoin blockchain and vice versa.
Rest assured that as long as you control your own private keys, you should be able to use those keys to create transactions on either chain safely.
I thought Bitcoin solved scaling! Why is this happening?
Good question. After the scaling drama of the past few years, we finally made progress when BIP91 locked in on Thursday. Though Segwit increases transaction capacity, it’s not done so in a way that everyone is happy with.
BCC looks like an appeal to the segment of the Bitcoin users that don’t like Segwit. Since Segwit is getting activated on Bitcoin, this fork gives many of these people a place to go.
From the FAQ:Why was a fork necessary to create Bitcoin Cash?
The legacy Bitcoin code had a maximum limit of 1MB of data per block, or about 3 transactions per second. Although technically simple to raise this limit, the community could not reach a consensus, even after years of debate.
So what features does Bitcoin Cash have?
Bitcoin Cash offers three new features. First, it offers a much larger block size of 8MB.
Second, it offers replay and wipeout protection. The transaction signature is slightly different and the forking block has to be greater than 1MB.
Third, it offers a way to adjust the proof-of-work difficulty quicker than the normal 2016 block difficulty adjustment interval found in Bitcoin.
From the project announcement on Bitcointalk:Forking rule:
“REQ-7 Difficulty adjustement in case of hashrate dropIn case the MTP of the tip of the chain is 12h or more after the MTP 6 block before the tip, the proof of work target is increased by a quarter, or 25%, which corresponds to a difficulty reduction of 20% .RATIONALE: The hashrate supporting the chain is dependent on market price and hard to predict. In order to make sure the chain remains viable no matter what difficulty needs to adjust down in case of abrupt hashrate drop.”
In other words, the difficulty will adjust pretty quickly should there be a low hash rate.
What does this mean for Bitcoin?
This is the hardest thing to answer. It may mean nothing, it may mean a lot. Some obvious things that we’ll now need to think about are:
- Who will mine Bitcoin Cash?
- Who will have the larger hash rate? Both coins will use double-sha256 as the proof-of-work.
- What will the price ratio be?
- What will the volumes on both coins be like?
- How will hash rate react to price? How will price react to hash rate?
- How will this affect the 2x HF part of Segwit2x?
- What chain will coins that operate on top of Bitcoin like Omni and CounterParty choose?
Unfortunately, the Bitcoin Cash announcement brings more questions than answers. One thing is for certain: if you want to maximize your holdings, it’s in your best interest to get your Bitcoin off third-party services and control your own private keys before August 1st.
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Markets NeededBitcoin broke the gold barrier. The last time it touched this "third rail" was a shocker. It dropped precipitously and it required over three years to claw its way back. So far, so good. Japan is in the news of late. It now accepts Bitcoin as a payment method. Retailers and tourism are poised to receive a boost. Optimist think that this development will serve to increase bitcoin valuations and push adoption, at least in Asia. So here we are again. But maybe not. The SEC (Securities and Exchange Commission) in the United States has essentially rejected bitcoin as an investment option. Repeatedly. The long and the short of it is, it can't be regulated internationally. It's too free. Oh, and some bad players might rip you off. And the SEC can't spy on every business in China -- and elsewhere -- offering bitcoin. If the SEC can't spy on you -- just to keep you safe you understand -- then its a non-player. A non-starter. Will the U.S. Government ever allow a legalized Bitcoin? This latest review might be a downer. Be prepared with a little gold and silver...and a bit of Monero. But let us dig a little deeper. In the obvious 'mine.' Bitcoin is an international monetary unit. A type of functional money. A large portion of the mining and transactions are taking place in China. China is not a cooperative country. It is a highly centralized communist dictatorship. It is not a friend of the world. As such, the U.S. looks at a the global picture. What is the global picture? Just as stated. Enemies must be very careful. They must take care not to be undermined in any sphere. Militarily, financially, even business relationships, are all areas that could pose a threat. Bitcoin poses a threat. A financial threat. It's just another part of the global currency wars. And you think Uncle Same will turn a blind eye? Will bitcoin be able to hold against gold this time around? Will math beat out a monetary unit which his existed for thousands of years? Will codes conquer substance -- gold? It'll be an interesting next few months as both sides, the crypto-lovers and the SEC (and the IRS and Uncle Sammy) go at it. Now Japan sides with crypto. But they need all the help they can get. Come to think of it so do we -- the U.S. But whose carrying the big stick? Thus far the answer, at least on a temporary basis, seems to be the people carry the monetary 'bitcoin' stick. Until, that is, governments become involved. Then one needs to make a choice. Shall you stay with bitcoin if any government attempts to influence its code, for example.? Or should you diversify? Before we go there, recently one the the most important core developers has bought something to the attention of the world. It the fact, according to Greg Maxwell, they've now confirmed it. Suffice it to say that a type of flaw in the bitcoin code allows some miners to mine 20% faster (called the AsicBoost). It's a real cash cow and why, according to some, the big Chinese mining companies do not wish to fix the code. See more here. That recent bit of news has faded for now. Litecoin has been around for awhile. To us watchers, the newest prices of LTC brings back memories. Maybe they can climb above $30.00 each again -- and hold. But wait a minute, it did! If bitcoin continues to lose ground, it seems to be the logical next "trusted" choice. And it is well overdue for a spike -- a pump. You would need to do the homework on it again, however. To see if you think "scrpyt" coins are as tough as SHA-256. It is really interesting that Litecoin moved ahead with Segwit. This improvement would "fix" the problems bitcoin currently faces. According to Maxwell, bitcoin, especially the ones making the "killing" in China, could block any such Segwit improvements to bitcoin. The bulletin boards are chirping that bitcoin will eventually adopt Segwit. But how can this be verified? It can go either way. Monero (and Aeon or even Bytecoin) need something really special before they will be accepted and acceptable, by the masses. Like real estate needs location, location, location, a currency needs...markets, markets, markets. They don't have them, yet. Trust is being built, however. Time does this. DASH has a bit more exposure, more markets, so in a sense, it is easier to trade and use. But based upon observational experience, DASH looks to be madly pumping and dumping. A crash back to earth should be expected soon. No sooner than I typed these words a few hours ago, DASH sunk over 90 million dollars...then 100 million... In the weeks that followed, DASH is surprising even me. Soaring to new heights and then crashing back. Is it only a "people pile?" Add to this, Craig Wright's recent mad filing of patents related to Bitcoin and it makes you go, "Hrumph!" Clearly, one blockchain isn't going to get it. We need security, not monolithic cryptography. The more the merrier. But blockchains, without flaws. Not possible really. There are always coding issues. Suffice it to say that psychologically, many will be looking for a cool million dollars on these recent run ups in value of many coins. Beware of trade volumes, however. Exchanges like Poloniex, for example, may only make it possible to sell $50,000 to $100,000 at any given moment. Which isn't bad, if their service does not go down. It's always safer to work on several exchanges and even use the decentralized ones, if you dare. And as for DASH. When will all the voluntary DASH nodes get cold feet? If you run a master node and have set aside 1000 DASH and that DASH soars in value; and you start seeing gold coins and big houses, swimming pools and nice cars, are you really going to keep your DASH? Do you think Duf-boy is not cashing in? How about after recent attack they suffered? You know they are thinking hard on it now. After reaching over a $200 a coin, you know they are wondering. PoloniexMost of Monero's and DASH's business is generated -- from what is visible -- on just one exchange: Poloniex. Many cryptocurrency aficionados often refer to some coins as being "owned" by Poloniex. In other words, that Poloniex is the "pump." That they can rig the game. At least push it along. Kraken finally added Monero. HitBTC and LiveCoin can also serve to stabilize trading. At present HitBTC is pulling some serious weight and could unseat Poloniex in the XMR realm. It's a wait and see thing. Thus far, neither Monero, DASH, Aeon or any other related "private" cryptocurrency, has the market pull of Bitcoin or even the taxed "Zcash." I call Zcash a post-mine. You mine some Zcash and they take their cut up front. And if you're asking about "Zcoin" then ask yourself how many developers are backing it, before you go that route. Add to all of this, the fact that Bitcoin may morph into a more private-centric coin in the near future. And just maybe the "devs" will try to level the playing field. If you trust them. Is this a good idea? I mean if you make better ASIC's to mine BTC faster, then what's the issue? Technology wins. However, if you are exploiting a backdoor of sorts, that's another thing entirely. It's not about being unfair, it's about a broken cryptocurrency. Maybe the "devs" have finally screwed up bitcoin to the "point of no return." Ease of UseMonero (and AEON) might unseat Bitcoin and Ethereum in the near future. DASH is certainly a contender. Bytecoin, a dark horse with alleged "scammy" beginnings. In all probability, Monero is best positioned to accomplish this, but there are stumbling blocks. The fact that Monero appears to be focused upon privacy, but the user does have the option to publicize transactions to a point, for taxes and other purposes. But we don't really know who the developers of these coins are. Doesn't that bother you? Aeon intends to do things a bit differently and this fact could usher in a entirely new method of monetary transactions. It's privacy with a choice to go public as well. Still, does it matter how good something is, if we do not have the name of the primary creator(s) of the "thing?" DASH is up front about its development, but is that a strength? Many cite DASH's "instamine" as a reason to steer clear, but look at the GUI -- the easy to use software. Test it. Then test Bitcoin or Monero GUI's. Who is the true underdog here? Or the best salesman -- as in "used car salesman"? "...separating the wheat from the chaff..." Remember the LaymanThe trouble one always finds in the cryptocurrency world is separating the wheat from the chaff. Scam-coins abound and even legitimate attempts to create a currency and/or monetary unit in this new "cyber-money-space" are often met with disdain, if not outright ridicule. There is much to read and understand, but with a modicum of foresight, one can judge a cryptocurrency by its cover and a bit of the innards, when they are visible. In short, the layman is often left confused and bored. Protection?Since currency and money are very sensitive subjects, the fact that cryptocurrency creators maintain anonymity, may be their only protection. I'm not spouting conspiracy theories, but judge for yourself, the number of developers of these technologies, who have been investigated, ridiculed, ostracized, fined, jailed and finally, imprisoned. SecrecyMathematical geniuses are taking on monetary totalitarianism and they are being picked off, like pigeons at the Vatican. No wonder Monero and Aeon developers remain private. They know the score. Using cyberspace to live free and a digital underground railroad -- to get the code out. DASH is taking a different road. It's letting the software do the work of anonymity. Some call this the high road. Others call this foolhardy. Evan Duffield, social engineer? And another thing, why would the creator of DASH admit on video (see time frame 36:15 in the above video) that he was once a "black hat hacker?" Once dabbled in a bit of crime? Isn't that a foolish statement to make while being interviewed by your employee...Amanda B. Johnson. The same Johnson who once referred to gold as a rock. A relic from a past age? Maybe she is right, but... Clearly these noobs need a PR person, but maybe it's too late now. And maybe it's all planned by Mr. Past Black Hat himself, Evan Duffield, in an effort to jettison DASH before the crypto-sphere collapses. Take his money and run. I mean really, do you think people are foolish enough to pour money into an "iffy" project, long term? Does not leadership or the lack of it, count? But let us not be obtuse. These new Fintech geniuses are attempting to rewrite monetary history and this fact is not going unnoticed. So it becomes a two edged sword? A scam that will result in many prosecutions or a success that will lead to mass adoption by governments and the elimination of private cryptocurrencies altogether. We may be investing in a scam or the next great cryptocurrency. Again, how do you feel about a semi-professionally run organization, like "gray hat" DASH, versus a secretly run Monero? Get that raw feeling in your gut? Bitcoin EraFrom the beginning, which we might label as the Bitcoin Era, the landscape of money itself was altered. Not only are the finance houses from the old empires attempting to catch up, but we the people are left with a choice. Do we allow ourselves to be governed by the chains attached to our wallets or do we evolve? Recently, Sweden rejected a state run cryptocurrency. Few even know about bitcoin. China is preparing to go full steam ahead with a state controlled "Communist Crypto." Any takers? But bitcoin, as I have asserted repeatedly, is a bridge to a better currency. A way to move from a valueless currency (fiat systems) to a valuable one. Maybe. In the meantime, we the people of earth, not nations, are at a fiscal crossroads. We are able, at this moment in history, to remove a thorn from our collective wallets. The thorn of control. That monetary mafia. Can you guess what I am on about? Bitcoin was the first lesson. Things like Monero, Aeon and DASH take the next logical step: privacy. Or partial privacy. But, Aeon, like Monero are the dark-horses. DASH, not so much. Maybe a gray colt, as yet UN-castrated. Meaning what would happen if the DASH team was pulled aside by the U.S. Justice Department? What is to stop the IRS from requesting the Book of DASH from Mr. DASH himself? Nothing. Always, there must be "updates," however. And the lords of control (the developers) will eventually and irrevocably, be remade. That's why things beyond the reach of our minders (our Deep States) must -- should be built. Because such constructs solve two problems: abuse by criminals and abuse of power, by our minders. But why does privacy matter? This video tells us why privacy remains important in the digital age. Final WordsAccording to Cryptocoinsnews, in a article titled "Coinbase CEO Armstrong: Ethereum Scaling Better Than Bitcoin," dated September 21, 2016, Coinbase (a Cryptocurrency Exchange) got an earful from Reddit users about Monero. If Coinbase or other such exchanges list Monero, this could certainly boost usage. However, if one considers the privacy of Monero, such integration could prove problematic for any Cryptocurrency Exchange. Bitcoin is public and the developers are known. Same for Ethereum. But Monero is private and only one spokesman has come forward publicly. Riccardo Spagni. But Spagni does not control Monero. Given the laws and rules surrounding the transmission of money, especially within the United States, one wonders how Monero could ever hope to comply, unless it allows (enforces) the option to "publicize" transactions. Unless Monero can trace Monero -- completely. And that would defeat its purpose, violate one's rights to keep his/her financial details private and, presumably, kill the coin. Now, there are ways to provide law enforcement with the ability to track your Monero transactions, but you must volunteer that information. With Bitcoin, it's far easier to investigate your every dealing, purchase, or savings amount, since all transactions and account balances are public by default. Then the question arises, would you ever volunteer to anyone, never mind your local intrusive government, how and where you store your cash? But the fact that Monero leaves that option up to the person, up to the user, takes the onus off of them. Does DASH have these same problems? Do former "black hats" lie? PredictionI'm not an Edgar Cayce type, but I just consulted my tea leaves. They say that Monero will soon be absorbing DASH's thunder. (Hasn't happened though. Bad publicity?) Bitcoin will begin a slow tumble, south of gold value; and some new form of cryptocurrency, easy to use, not energy hogging, private and secure, backed by "something other than air," will gobble them all. (No such luck on this prediction either. Bitcoin continues to defy even me. And Iota just seems to sit.) In the meantime, a certain U.S. based Cryptocurrency Exchange, with its recent approval to sell and trade new crpyto-coins from the SEC, will open it's more of its books to Uncle Sammy -- behind closed doors. (Actually, the aforementioned exchange is still fighting this loosing battle.) So what is going on? Really? First the SEC refuses bitcoin ETF's in the U.S., then they happily allow more crypto to be sold by a virtually unregulated "exchange" company. Do you smell something? In a year of two, after this, the audits will begin. That's is after the NSA and other more secret agencies, have ferreted about the crypto records room and played out all possible terrorist connections, foreign agent problems and similar. If us noob citizens are lucky, the good guys (the U.S. Government) won't eat its own. After all, the IRS wouldn't just take our money without first determining that tax evasion actually occurred right? Think again. Think hard. Do you really think that the "public" companies in America, the ones that sell cryptocurrencies, have not opened every private electronic vault to Uncle Sam? Yeah, I wish I had more Monero about now, but I am too concerned about the IRS and its gang of goons, who will pick me over like some nice road pizza. I use to like Coinbase, but since they are taking it up the you-know-what, I'd prefer not be present for the fun and frolic ahead. And one last bit of info. After they take down fluffypony, there will only be one standing: Aeon. Keep an eye on the Dude. Check that, keep an eye on the grandpa: Bytecoin. Disclaimer for the Lawsuit HappyOh, so that lawyers won't salivate, please note that the above Hub (you can call it a blog if you like) is in no way any kind of advice to buy, sell, mine or read about cryptocurrencies. In fact, everyone on earth should henceforth, stop thinking, buy government bonds or move to the paradise of Venezuela...if you think that private blockchains are not the future or at least a path on the way to better Fintech.