Had you spent $27 on Bitcoin when it was created by Satoshi Nakamoto in 2009 your investment would now be worth over $37,000,000.Widely regarded as the greatest investment vehicle of all time, Bitcoin has seen a meteoric rise during 2017 going from $777 all the way to $17,000.Creating millionaires out of opportunistic investors and leaving financial institutions open-mouthed, Bitcoin has answered its critics at every milestone this year and some believe this is just the beginning.The launch of Bitcoin futures on December 10th, which for the first time will allow investors to enter the Bitcoin market through a major regulated US exchange, implies that we are just getting started.What makes Bitcoin so valuable is that there is a finite amount in existence. There will only ever be a maximum of 21 million Bitcoins and unlike normal fiat currencies you can’t just print more of them whenever you feel like. This is because Bitcoin runs on a proof of work protocol: in order to create it, you have to mine it using computer processing power to solve complex algorithms on the Bitcoin blockchain. Once this is achieved, you are rewarded with Bitcoin as payment for the “work” you have done. Unfortunately the reward you get for mining has decreased drastically almost every year since Bitcoin’s inception, which means that for most people the only viable way to get Bitcoin is buying it on an exchange. At the current price levels is that a risk worth taking?Many believe Bitcoin is simply a bubble. I spoke to cryptocurrency expert and long term investor Duke Randal who thinks the asset is overvalued, “I would compare this to many supply and demand bubbles over history such as Dutch Tulip Mania and the dot com bubble of the late 90s. Prices are purely speculation based, and when you look at Bitcoin’s functionality as an actual currency it is almost embarrassing.” For those who don’t know, the dot com bubble was a period between 1997-2001 where many internet companies were founded and given outrageously optimistic valuations based purely on speculation that later plummeted 80-90% as the bubble began to collapse in the early 2000s. Some companies such as eBay and Amazon, recovered and now sit far above those valuations but for others it was the end of the line.Bitcoin was originally created in order to take power away from our financial systems and put people in control of their own money, cutting out the middle man and enabling peer to peer transactions. However, it is now one of the slowest cryptocurrencies on the market, its transaction speed is four times slower than the fifth biggest cryptocurrency and its nearest competitor for payment solutions Litecoin. Untraceable privacy coin Monero makes transactions even quicker, boasting an average block time of just two minutes, a fifth of the time Bitcoin can do it in, and that’s without anonymity. The world’s second biggest cryptocurrency, Ethereum, already has a higher transaction volume than Bitcoin despite being valued at only $676 dollars per Ether compared to Bitcoin’s $16,726 per Bitcoin.So why is Bitcoin’s value so high? I asked Duke Randal the same question. “It all goes back to the same supply and demand economics, relatively there is not very much Bitcoin available and its recent surge in price has attracted a lot of media attention, this combined with the launch of Bitcoin futures which many see as the first sign Bitcoin is being accepted by the mass market, has resulted in a lot of people jumping on the bandwagon for financial gain. Like any asset, when there is a higher demand to buy than to sell, the price goes up. This is bad because these new investors are entering the market without understanding blockchain and the underlying principles of these currencies meaning they are likely to get burnt”.Another reason is that Bitcoin is extremely volatile, it has been known to swing up or down thousands of dollars in less than a minute which if you are not used to nor expecting it, causes less experienced investors to panic sell, resulting in a loss. This is yet another reason Bitcoin will struggle to be adopted as a form of payment. The Bitcoin price can move substantially between the time vendors accept Bitcoin from customers and sell it on to exchanges for their local currency. This erratic movement can wipe out their entire profitability. Will this instability go away any time soon? Not likely: Bitcoin is a relatively new asset class and although awareness is increasing, only a very small percentage of the world’s population hold Bitcoin. Until it becomes more widely distributed and its liquidity improves significantly, the volatility will continue.So if Bitcoin is pretty useless as an actual currency, what are its applications? Many believe Bitcoin has moved on from being a viable form of payment to becoming a store of value. Bitcoin is like “digital gold” and will simply be used as a benchmark for other cryptocurrencies and blockchain projects to be measured against and traded for. Recently there have been stories of people in high inflation countries such as Zimbabwe buying Bitcoin in order to hold on to what wealth they have rather than see its value decline under the recklessness of its central banking system.Is it too late to get involved in Bitcoin? If you believe in what these cryptocurrencies will do for the world then it is never too late to get involved, but with the cost of Bitcoin being so high is it a boat for some which has already sailed. You might be better off having a look at Litecoin, up 6908% for the year or Ethereum which is up an incredible 7521% for the year. These newer, faster currencies hope to achieve what Bitcoin first set out to do back in its inception in 2009 and replace government run fiat currencies.Who knows what the price of these currencies will be ten, fifteen or even twenty years from now? One thing is certain though, we better strap ourselves in as it is going to be a wild ride.
Bitcoin: All It’s Hyped Up to Be?
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2018 Is the Year of the Masternodes Cryptocurrencies
Digital currencies such as Bitcoin and Ethereum are in the news headlines everyday. The properties that make these cryptocurrencies unique is their abilities to act as a store of value, and lightning quick transfer speeds, or at least with the introduction of the lightning network for Bitcoin, and Ethereum’ Casper switch to pos and its smart contract capabilities allow cryptocurrencies to be more than just money. Now Masternodes coins are all the rage due to the added incentive it gives to owning a percentage of a certain currency.If you could imagine your good old blue faced hundred dollar bill being on steroids then you would be close to imagining a masternodes coin. In the world of cryptocurrencies, proof of stake is the method of confirming transactional hash that maintains the consensus and keeps all the notes on the same page, so that there cannot be double spending of any certain transactions and all is well with the network consensus. Staking your coins is a way of utilizing the amount of currency you own and syncing your digital wallet with the network to help maintain it, and in return you receive an incentive for helping validate the transactions. To run a masternodes, one must have a set number of coins running on a network and follow the Masternodes setup instructions for whichever currency you are planning on investing in. The added incentive is amazingly more than just staking your coins, in some cases, upwards of 1500 percent annually. It is these astronomical return on investments that is really bringing a ton of attention and investment into the Masternodes market.One crypto planning on releasing a Masternodes coin early 2019 is the Tattoo Allince Token, to be a side chain on the Egem blockchain,whichs on disrupting the tattoo industry by creating a tokenized rewards system for both people wanting to buy tattoos and the artists who look forward to applying the artwork in return for the token. I believe this will be an amazing and refreshing idea and a great way to add long term benefits for tattoo artists who up till now have no 401k or incentive program in place. I am optimistic about this crypto since it strives to achieve great rewards and add value to a cash heavy industry. I believe that alongside the Masternodes capabilities, it will also have staking and a smart contract protocol as well as offering decentralized autonomous governance and a memberships rewards program. Look for more on TAT Masternodes token, coming early next year.
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Cryptocurrency mining is a never-ending game in this digital world. Bitcoin, the first decentralized currency introduced in early 2000. Mining cryptocurrency is a complex procedure of verifying transactions and adding them to public ledger (blockchain). This ledger of past transactions is called the blockchain as it is a chain of blocks. The blockchain serves to confirm transactions to the rest of the network as having taken place. The blockchain is also responsible for releasing new bitcoins. Each of the many crypto coins in presence depend on the core idea of the blockchain.Process of MiningCryptocurrency was intended to be decentralized, secure and unalterable. So each and every transaction is scrambled. Once that scrambled transaction happens it’s added to something many refer to as a “block” until the point that a settled number of transactions has been recorded. That block at that point gets added to a chain – the blockchain – which is available publicly. During mining cryptocurrency either Bitcoin, Dash, Litecoin, Zcash, Ethereum, & more, the miner has to compile recent transections into blocks and crack a computationally difficult puzzle. There are several online bitcoin mining sites. It has become a very popular way to earn money.
Cryptocurrency is cryptographic, which means that it uses a special encryption that allows controlling the generation of coins and confirming the transaction. A block is pretty useless in its currently available form. However, after applying the algorithm to a specific block. Upon matching, the miner receives a couple of bitcoins. For earing bitcoin via mining, the miner has to be technical. Bitcoin mining for profit is very competitive. Bitcoin price makes it difficult to realize monetary gains without also speculating on the price. The payment is based on how much their hardware contributed to solving that puzzle. Miners verify the transactions, ensure they aren’t false, and keep the infrastructure humming along.Best Coins to Mine Bitcoins are not a decent decision for starting diggers who take a shot at a little scale. The current in advance speculation and upkeep costs, also the sheer scientific trouble of the procedure, simply doesn’t make it productive for buyer level hardware. Presently, Bitcoin mining is saved for expansive scale activities as it were. Litecoins, Dogecoins, and Feathercoins, then again, are three Scrypt-based digital forms of money that are the best money saving advantage for apprentices. At the present estimation of Litecoin, a man may gain somewhere in the range of 50 pennies to 10 dollars for each day utilizing customer level mining hardware. Dogecoins and Feathercoins would return marginally less benefit with a similar mining hardware yet are ending up more famous every day. Peercoins, as well, can likewise be a sensibly fair profit for your venture of time and vitality.As more individuals join the cryptocoin surge, your decision could get more hard to mine since the more costly hardware will be required to find coins. You will be compelled to either contribute vigorously on the off chance that you need to stay mining that coin, or you will need to take your income and change to a less demanding cryptocoin. Understanding the main 3 bitcoin mining strategies is likely where you have to start; this article centers around mining scrypt coins. Likewise, make sure you are in a nation where bitcoins and bitcoin mining is legal.Goal of MiningHow about we center around mining cryptocurrency. The entire focal point of mining is to accomplish three things:1. Give accounting administrations to the coin network. Mining is essentially every minute of everyday PC accounting called ‘checking transactions’.2. Get paid a small reward for your accounting administrations by accepting fractions of coins each couple of days.3. Hold your personal expenses down, including power and hardware.Some Basic Terms A free private database called a coin wallet. This is a password-secured container that stores your earnings and keeps a vast record of transactions. A free mining software package, similar to this one from AMD, typically made up of cgminer and stratum. An enrollment in a web-based mining pool, which is a community of mineworkers who consolidate their PCs to increase profitability and wage stability. Enrollment at an online money exchange, where you can exchange your virtual coins for conventional cash, and the other way around. A reliable full-time web association, ideally 2 megabits for each second or faster speed. A hardware setup location in your basement or other cool and air-conditioned space.A work area or custom-fabricated PC intended for mining. Truly, you may utilize your present PC to start, yet you won’t have the capacity to utilize the PC while the digger is running. A separate dedicated PC is ideal. Tip: Do not utilize a laptop, gaming console or handheld device to mine. These devices simply are not sufficiently successful to generate wage. An ATI graphics processing unit (GPU) or a specialized processing device called a mining ASIC chip. The cost will be anywhere from $90 used to $3000 new for each GPU or ASIC chip. The GPU or ASIC will be the workhorse of giving the accounting administrations and mining work.A house fan to blow cool air across your mining PC. Mining generates substantial heat, and cooling the hardware is critical for your prosperity. Personal interest. You absolutely require a solid appetite for reading and constant learning, as there are continuous innovation changes and new methods for upgrading coin mining comes about. The best coin mine-workers put in hours consistently considering the most ideal ways to adjust and enhance their coin mining performance.Cryptocurrency Mining Profitability Each time a mathematical issue is comprehended, a constant amount of Bitcoins are created. The quantity of Bitcoins generated per block starts at 50 and is halved each 210,000 blocks (about four years). The present number of Bitcoins awarded per block is 12.5. The last bock halving happened on July 2016 and the following one will be in 2020. The estimation of profitability can be made via use of various online mining calculators. Development of digital currency standards, for example, Bitcoin, Ethereum, and Bitcoin Cash has prompted tremendous ventures by companies and this is required to aid in substantial development of the market in the near future.Cryptocurrency mining is a computationally intensive process, which requires network of several PCs for verification of the transaction record, known as the blockchain. The excavators are offered a share of transaction charges and gain a higher probability of finding another block through contributing high computational power. These support transactions help in giving enhanced security to network clients, and guarantees honesty, which is relied upon to be the noticeable factor affecting development of the global cryptocurrency mining market.
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