Meanwhile as the price bottoms out...
View Reddit by pg3crypto - View Source
Bitcoin is a payment system that is gaining prominence in the financial market. It is gaining popularity because it is person-to-person payment system powered by users, but without intermediaries or a centralized authority. Payments are generally facilitated digitally. From users' standpoint, it is similar to cash payment system via the internet. In other words, it is cash for the internet. Furthermore, it can be advanced as a prominent triple-entry bookkeeping system. Ideally, investors are encouraged to know how to use its charts and calculator. However, this requirement can be eliminated by engaging the services of professional Bitcoin brokers.
It is common knowledge it is improving the way transactions are being settled. The Bitcoin value relies heavily on how well the transaction fees are minimized; way below the transaction costs prevailing in the market. A professional broker understands better the value, which can help a great deal in ensuring sustained profits. The positive feedback being submitted daily on the benefits of brokers is creating a lot of enthusiasm. Many companies are relying on brokers because of the vast potential present within the arena of crypto currency. The system offers a quick and efficient way of executing financial transactions.
Advantages of the software
It offers a lot of payment freedom because it is possible to receive and send money instantly anywhere around the world and at any given time. The idea of bank holidays is not experienced, no imposed limits and no borders. Therefore, it enables traders to take control of their own money. Furthermore, it offers the benefit of very low fees. Payments are often executed with extremely small fees or no fees at all. Nevertheless, to gain from priority processing, it is advisable to cater for fees to guarantee a quick confirmation of financial transactions by the network. Furthermore, the brokers exist to help investors to process transactions. They also come handy in converting bitcoins into flat currency. Furthermore, they help with depositing funds into the investors' bank accounts daily. These services are often offered for low fees; lower than credit card networks or PayPal.
Acquiring the software
Bitcoin can be acquired as payment for products/services, by way of purchasing at the exchange or through the process of exchanging with another person near you. It can also be acquired through competitive mining. As you take part, you will soon discover payments via this system are much easier that making credit or debit card purchases. Furthermore, payments can be received without having a merchant account. All payments can be executed from an application on a Smartphone or computer, ones you enter the recipient's address and payment amount, before pressing send.
Cryptocurrency trading has taken the world by storm and this is what has become the norm for the majority of traders and investors. If you are keen enough to do your research before going into the trading, you stand a chance to enjoy real growth and profits in the end. The worst you can do when it comes to this kind of trading is going into it blindly simply because it is what everyone else is doing. A little research on the major currencies and getting deep into buying and trading fundamentals can make a huge difference. Below are a few guidelines that will jolt you into success with your trading.
Take time to understand how the block chain works
Blockchain technology has redefined transactions and it is changing everything. Blockchain can be defined as a list of records that continually grow into blocks secured and linked using cryptography. The blockchains are data modification resistant and serve as public transaction ledger between parties. The transparent and decentralized nature of block chain makes it highly secure and in the world of hacking it is truly functional and reliable. It solves manipulation problems that have become so apparent in the world today. Whereas no single person can claim to understand everything that is blockchain, learning a few fundamentals will give you a much easier time with your trading.
Know and learn the top currencies
The virtual currency space is becoming crowded thanks to how popular the currencies have become. The fact is that there are more than 100 cryptocurrencies today, which means you need to know which ones are top and popular, so you can choose your buying and selling properly with profitability in mind. Bitcoin accounts for half of the entire market with the highest volume, but Litecoin and Ethereum are also top and giving Bitcoin a run. Find out as much as possible regarding the currency you are interested in. The more you know the better you will be in making decisions; you can actually manage to trade more than one cryptocurrency without any challenge.
Mind the inherent risks
Bitcoin and other currencies are quite volatile even when compared the stock market and gold. Remember that this is still a technology in its early days and it does face lots of challenges. The profit probabilities are quite high but so are the risks to. Public sentiment about a currency can actually impact its prices. What goes up is most definitely bound to come down so be careful with the trade moves you make. The higher the risks the higher the rewards might be but be ready for losses as well. The best you can do whatever the cryptocurrency you choose is to keep an eye on events that can affect prices and act fast.
Once you know everything that matters in cryptocurrency trading, you can then go ahead and open a brokerage account and fund it then you can start buying and selling the currencies. The rewards are numerous for keen traders.
Crypto-currency as a modern form of the digital asset has received a worldwide acclaim for easy and faster financial transactions and its awareness among people have allowed them to take more interest in the field thus opening up new and advanced ways of making payments. With the growing demand of this global phenomenon more,new traders and business owners are now willing to invest in this currency platform despite its fluctuating prices however it is quite difficult to choose the best one when the market is full. In the list of crypto-currencies bit-coins is one of the oldest and more popular for the last few years. It is basically used for trading goods and services and has become the part of the so-called computerized block-chain system allowing anyone to use it thus increasing the craze among the public.
Common people who are willing to purchase BTC can use an online wallet system for buying them safely in exchange of cash or credit cards and in a comfortable way from the thousands of BTC foundations around the world and keep them as assets for the future. Due to its popularity, many corporate investors are now accepting them as cross-border payments and the rise is unstoppable. With the advent of the internet and mobile devices,information gathering has become quite easy as a result the BTC financial transactions are accessible and its price is set in accordance with people's choice and preferences thus leading to a profitable investment. Recent surveys have also proved that instability is good for BTC exchange as if there is instability and political unrest in the country due to which banks suffer then investing in BTC can surely be a better option. Again bit-coin transaction fees are pretty cheaper and a more convenient technology for making contracts thus attracting the crowd. The BTC can also be converted into different fiat currencies and is used for trading of securities, for land titles, document stamping, public rewards and vice versa.
Another advanced block-chain project is Ethereumor the ETH which has served much more than just a digital form of crypto-currency and its popularity in the last few decades have allowed billions of people to hold wallets for them. With the ease of the online world,the ETH have allowed the retailers and business organizations to accept them for trading purposes, therefore, can serve as the future of the financial system. Also being an open source the ETH assists in collaborating the projects of various firms and industries thus increasing their utility. Again unlike the bit-coin which is used for money exchanges in a digitalized network the ETH can also be used for multiple applications besides financial transactions and do not require prior permissions from governments due to which people can use them with their portable devices. The price of Ether has also remained stable and it avoids the disturbance of any third party intermediary such as lawyers or notary as the exchanges are mainly software based allowing the ETH to be the second best crypto-currency to invest in now.
Seeing high CPU utilization? It may not be a fault with your computer.
Does your computer stutter when browsing certain websites? Does Windows Resource Monitor show high CPU utilization? Does your Mac's Activity Monitor show your CPU being overutilized? Usually, these symptoms would indicate a computer issue that would need troubleshooting but that may no longer be the case.
Your computer could be being hijacked to mine cryptocurrency. This is referred to as cryptojacking.
An increasing number of websites are including currency mining threads that use your processor to mine for their gain. More advertising networks are being hacked to include cryptocurrency miners and more malware than ever before is now using your computer to generate revenue rather than destroy or impact your data.
Forget Bitcoin, Monero, Litecoins, Dogecoins and Feathercoin are the new kids on the block and everyone wants a piece of them.
How does cryptocurrency mining work?
Bitcoin and other digital currencies are purely theoretical. Nothing exists, no paper money, no coins, no accounts, nothing. Everything is controlled by ledgers. Those ledgers are maintained by the companies that run the currency. To protect the currency, every transaction is encrypted and as you know, encryption is very resource intensive.
To help the system work, the processing of ledgers and transactions is farmed out to other machines, such as your PC to process. Your CPU will be given an encrypted transaction to process and the tools with which to do it. Your processor completes the calculation and sends the result to the central ledger.
In consensual cryptocurrency mining, you are then paid a fixed amount per transaction. You can run these transactions persistently to mine cryptocurrency.
The trouble is, websites and malicious code are using our computers to mine cryptocurrency without our knowledge. We pay for the electricity and contend with a slow computer but get none of the benefit from it. According to the piece from Adguard linked above, 500 million computers are being used to mine cryptocurrency without their owners even being aware.
Some of the websites that feature cryptojacking code profess no knowledge of it. Given the anonymous nature of cryptocurrency, we have to take their word for it.
How to tell us a website uses cryptojacking code
There is a quick and easy way to tell if a particular website uses cryptojacking code. If your CPU utilization spikes on a particular website or page, go to a different page. If utilization drops, it is a good indication that it is cryptojacking you. You could also shut down your browser as a double check.
How to prevent cryptojacking
While not as dangerous as malware or a virus, cryptojacking is still using your computer for someone else's gain. That is not acceptable and we need to do something about that.
Your first line of defense is an adblocker. As many types of cryptojacking code are served through infected ads, a good adblocker can stop them.
Next is a good quality malware scanner. Some types of cryptojacking code are delivered through malware and will not be detectable by an adblocker. If you see CPU utilization spike, run your scanner and remove anything it finds. If you still see high utilization, run your antivirus too, just in case.
Finally, there are some browser extensions emerging designed to block all manner of cryptojacking code. Extensions such as AntiMiner, NoCoin and MinerBlock are being tested to see if they can protect your computer.
Some websites are being up front about using cryptocurrency mining to help pay the bills. These sites we have no problem with and would suggest letting them use your computer to help keep the lights on. As more of us block ads to protect ourselves, this trend is likely to continue. If the website is honest, I see no issue with it. If they try to hide it, they deserve to be blocked.
Please utilize this sticky thread for all general **Bitcoin** discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you!
If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow.
We have a couple chat rooms now!
* [Price Talk](https://s.reddit.com/channel/872992_d38a28dd2ee2efae707c89ce6491650e4a1bc078)
Please check the [previous discussion thread](https://www.reddit.com/r/Bitcoin/comments/9xjv1i/daily_discussion_november_16_2018/) for unanswered questions.
You may not believe me, but if I told you ten years ago that money could be transferred through your cellular device from one person to another with little to no cost would you believe me? In the past couple year's mobile peer-to-peer payment applications have gained tremendous popularity amongst teenagers and young adults throughout the United States. Many companies are simplifying the payment process amongst consumers on an international level by evolving the peer-to-peer payment system.
Companies such as Venmo, PayPal and Cash App have made it extremely easy for consumers and businesses to transfer money from one another at little to no cost. Cash App is the fastest growing of the three and is now ranked the #1 finance application on Apples Application Store in the United States. It's efficiency is like no other, once you have your card information linked to the application, with the use of an email or phone number money can be sent from one account to another just in the push of a couple buttons on your smartphone. The person receiving the funds can choose to receive it instantly at a small fee (1.0%) or choose to receive the money in 2-3 business days without being charged any fees.
Although the service isn't extremely profitable for the owner of the company its accessibility provides millions of active users to make peer-to-peer payments amongst each other on a daily basis. Cash App recently decided to go international by making itself available on all app stores across the US, Canada, Japan, Australia, and the United Kingdom to maximize its practicality across the world.
This year Cash App introduced the Cash Card, where the consumer can choose to customize their own debit card and spend the money available on their Cash App account without it being linked to their personal bank account. As a first time user the biggest fear of using peer-to-peer payment apps such as Cash App is the possibility of getting your information stolen or getting hacked. The company does a great job by providing a receipt after each transaction through text message or email to secure that each payment is being made by the owner of the account. Attached to each receipt is a cancel/ report option in order to ensure the account holder has full control over their funds.
In conclusion, Cash App has made it clear that its intention is to expand to other countries and to find ways to become more profitable locally and internationally. Its efficiency is like no other; by making themselves available at the palm of every smartphone, young adults are inclined to giving the application a trial run because of it being free to download in the app store and little to no fees are presented.. The limits seem endless for this growing application whose stock price continues to raise from $16.98 a share (last year) to currently sitting at $49.60 a share. I personally believe the company is only expected to continue to grow from here on out as the younger generation continues to revolutionize the way money can be transferred from one another. Its popularity is only expected to grow, as the young adults will relay the use of the application to their children as this makes the transfer of money virtual and almost instant. To think that money could be transferred from one person to another in the blink of an eye without ever physically seeing the cash seems surreal Cash App is the first of many to start the digitizing of today's currency.
With a 35, 000 % increase in value in 2017 and a market cap of over $118 billion, Ripple has become a much-debated topic among analysts and investors alike. But, what is Ripple? Is it like other cryptocurrencies? Why has it been on fire lately? Continue reading to get answers to these questions.
1. What is Ripple?
Ripple is a payment solutions company, founded by Chris Larsen and Jed McCaleb. Their Ripple Transaction Protocol (RTXP) contains the cryptocurrency XRP. Ripple claims to offer faster, reliable, and affordable transaction solutions for financial institutions. The company has created a hundred billion XRPs and it currently holds 61% of the coins. The current plan is to release a billion coins a month.
2. Differences Between Ripple and Bitcoin
Both Bitcoin and Ripple are cryptocurrencies that use block-chain technology. But, there is a fundamental difference between the two: unlike Bitcoin, Ripple cannot be mined. The currency is not set up as a mineable currency, and its use is fixed to the Ripple network.
Both Bitcoin and Ripple use validating nodes for validating ledgers. Bitcoin has about 10,000 trusted nodes, while Ripple has only five. However, the company plans to add 11 more over the next 18 months. The five validating nodes are controlled by Ripple. XRP has received criticism for the absence of independently trusted validators. The XRP Ledger is available to all, so anyone can download it and become a validator. Many companies run their own nodes on the Ripple network.
3. Reasons for Recent Price Hike of Ripple
The recent price hike of XRP has a lot to do with the currency's expected use by financial institutions and investment by believe-the-hype investors. Ripple has been successful in gaining banks as customers for its other products. Ripple's xCurrent is preferred by financial institutions because it offers real-time communication and quick corrections, thus reducing delays in bank transactions. The company plans on introducing a new product, xRapid, that incorporates XRP. They see the new product as an opportunity to get banks to use XRP. Investors see the potential of the currency as a financial vehicle used by banks worldwide.
Ripple, or more precisely, XRP, is a rising cryptocurrency. It's different from the leading digital currency Bitcoin because its supply is controlled by the founding company. Ripple is banking on banks adopting it in the future. One can speculate that the recent increase in Ripple's value will fuel more debates about its pros and cons.
Bitcoin is a decentralized digital currency which is owned by none. Government has no control over it. It uses peer to peer networking and cryptographic proofs to operate the system. The system is controlled and made fraud free by recording transactions in block chain, a public history record, once they are validated with a proof of work system.
The network began operating in 2009 and is a concept involving virtual currency which has no link to government regulated currency. The Bitcoin system has few advantages like:
• It is less expensive to operate and use this virtual money.
• It can be instantaneously transferred throughout the world and there will be no transaction fees. Moreover, you can use it and transfer it anonymously as well.
• Like other currencies, the quantity of this virtual money is fixed and no one has the right to create new Bitcoins. However, people can mine Bitcoins but there is a limit to it and mining Bitcoins is not at all cheap.
• Bitcoin is an independent currency; no organization has any control over it
• It is a democratic currency.
• It is the digital equivalent of something of value.
• As it uses a digital medium, it has the potential to become even more valuable than gold.
How to Learn About Bitcoin Conveniently
You can learn about Bitcoin from various sources on the internet. You can check blogs, magazines, articles etc. Internet is a very good source for a newbie to learn more about Bitcoin. Through blogs and forums, you'll learn technical, economical and political issues related to the Bitcoin system. These mediums are rich source of information and you can learn everything about this virtual currency. Furthermore, even if you are already in the system and know quite a lot about how it works, you can stay updated on every news and issue about the new digital currency system. It's also wise to get registered on related forums and start discussion with the experts. Post threads and ask whatever you are unclear about. Many forums also have blog section where experts post informative articles. This is the best learning source as you get benefited from other's experience.
The digital system of Bitcoin currency seems complicated to those who know nothing about it and most people find the concept hard to grasp and trust. It will not take long before people start accepting and then adopting to this virtual currency system, which is more secure, open and independent.
For those not familiar with what bitcoin is; it is basically a digital currency for which no banking system or even a government is needed. Open source software is used to operate the transactions. Many people are investing money in the bitcoin market because ever since it was introduced in 2009, it has become extremely popular among traders and investors. Even many merchants have started to accept bitcoins. For example, you can buy a web hosting service or even order a pizza with your digital currency.
When you are trading in the bitcoin market, you can trade anonymously. The currency is not tied to any particular country and there are even no regulations designed for it. Even small businesses are using bitcoins because there is no transaction fee involved in the exchange. If you have some savings, you can invest that money to buy bitcoins and to gain profit because the value of this digital currency is predicted to go up.
The market places where digital currencies are exchanged are called bitcoin exchanges. They are the places where people buy and sell bitcoins by using the currencies of their respective countries. You simply need a wallet software, open an account, and then buy bitcoins from the money you have in your account in order to become ready for the exchanges. People are even transferring digital currencies through their Smartphones. There are mobile apps available for this purpose. You can either purchase bitcoins from online exchanges or get them from special ATMs.
Mining is another option used in the digital currency market. It is a process in which traders have to solve mathematical puzzles to win bitcoins. It's a tough and time taking process, but if you get it right then you will win 25 bitcoins. This can just happen in 10 minutes.
Once you are into the trading game, you will get to store your digital currencies in a digital wallet. It will be your virtual bank account where you will store all your bitcoins. It is not necessary for you to disclose your name while you are exchanging bitcoins. You will trade with your bitcoin ID. It is meant to ensure privacy of the transactions. So, you can buy or sell anything and nobody can trace your transaction. The digital currency transactions are verified through cryptography. It is a series of mathematical algorithms, which can only be solved by powerful computing. That is what secures the system. So trading in the bitcoin market is purely safe and legal.
The system and the market itself have perfect control on how much bitcoins are being created. The system adjusts itself by making the mathematical problems difficult to solve and hence, only specific amount of bitcoins are awarded.
Bitcoin is not just some currency to invest your money in. In the near future, more and more businessmen are going to use it instead of credit cards just to avoid the transaction fee. It's going to be widely used form of currency in the coming days.
Forex trading is a niche territory. It requires an understanding of the market trends, knowledge about investment laws and, above all, the ability to time entry and exit. While the market is not as complicated as it may sound, it certainly calls for sound trading decisions to make profits. Free forex strategies are some of the industry secrets which will help you to increase profit margins, while playing safe.
Free Forex Strategies To Get You Started
Here are some of the free forex strategies that have worked for several traders:
Purchasing on margin: Here, the trader suffers from significant amount of risk. However, it also opens the door to major profits. When purchasing on margins, the broker offers leverage to the trader. This allows the trader to invest more than the real worth of his account. Considering the risk factors involved here, the trader should have expertise in timing entry and exit to remain profitable.
Stop Loss Order: Here, the trader predefines the price level for the currency pair which is not expected to stay open. This strategy helps to trade profitably while limiting the possibility of losses.
Rely on Simple Moving Average: Also known as SMA, Simple Moving Average is the mean exchange value of a currency pair over a period of time. Considering SMA for any currency pair gives a rough idea of the buying and selling parameters. Most trading platforms generate SMA automatically to assist the traders with investing decisions.
Range trading: Although it is a time-taking procedure, analyzing historical levels helps to reduce risks to a great extent. Levels are the extreme values within which the currency pair has moved in a given period of time. Understanding levels reduces the risk, but also reduces the probability of significant profits. Levels are usually for those investors who want to play safe.
Managed account: This strategy is meant for those individuals who want to invest, and not trade, in the currency market. This arrangement works similar to the mutual fund industry. You invest money in the currency market and allow a professional trader to trade with your money. While it reduces the profit margin, your money can work well under the umbrella of an experienced trader.
Free forex strategies are not a sure-shot route to profits. They are highly useful to learn smart trading during the initial years. However, as traders gain experience, they tend to develop individual tricks that work for them. Following popular trading strategies is especially useful in volatile market situations.
What is the hottest technology development of 2013? Most experts will point to the rise of bitcoin.
Bitcoin is on the rise as a digital currency used worldwide. It is a type of money controlled and stored entirely by computers spread across the Internet. More people and more businesses are starting to utilize it.
Unlike a plain US dollar or Euro, bitcoin is also a form of payment system sort of like Paypal or a credit card network.
You can hold on to it, spend it or trade it. It can be moved around cheaply and easily almost like sending an email.
Bitcoin allows you to create transactions without revealing your identity. Yet the system operates in plain public view.
Anyone can view these transactions which are recorded online. This transparency can drive a new trust in the economy. It even directed in the downfall of an illegal drug ring, discovered shuffling funds utilizing bitcoin and shut down by the US Government.
In many ways bitcoin is more than just a currency. It's a re-engineering of international finance. It can dissolve barriers between countries and frees currency from the control of federal governments. However it still relies on the US dollar for its value.
The technology behind this is interesting to say the least. Bitcoin is controlled by open source software. It operates according to the laws of mathematics, and by the people who collectively oversee this software. The software runs on thousands of machines worldwide, but it can be changed. Changes can only occur however when the major of those exceeding the software agree to it.
The bitcoin software system was built by computer programmers around five years ago and released onto the Internet. It was designed to run across a large network of machines called bitcoin miners. Anyone on earth could operate one of these machines.
This distributed software generated the new currency, creating a small number of bitcoins. Basically, bitcoins are just long digital addresses and balances, stored in an online ledger called the "blockchain." But the system design enabled the currency to slowly expand, and to encourage bitcoin miners to keep the system itself growing.
When the system creates new bitcoins it gives them to the miners. Miners keep track of all the bitcoin transactions and add them to the blockchain ledger. In exchange, they get the privilege of awarding them a few extra bitcoins. Right now, 25 bitcoins are paid out to the world's miners about six times per hour. Those rates can change over time.
Miners watch bitcoin trades through electronic keys. The keys work in conjunction with a complicated email address. If they do not add up a miner can reject the transaction.
Back in the day, you could do bitcoin mining on your home PC. But as the price of bitcoins has shot up, the mining game has morphed into a bit of a space-race. Professional players, custom-designed hardware, and rapidly expanding processing power have all jumped on board.
Today, all of the computers vying for those 25 bitcoins perform 5 quintillion mathematical calculations per second. To put it in perspective, that's about 150 times as many mathematical operations as the world's most powerful supercomputer.
And mining can be pretty risky. Companies that build these custom machines typically charge you for the hardware upfront, and every day you wait for delivery is a day when it becomes harder to mine bitcoins. That reduces the amount of money you can earn.
Why do these bitcoins have value? It's pretty simple. They've evolved into something that a lot of people want and they're in limited supply. Although the system continues to crank out bitcoins, this will stop when it reaches 21 million, which was designed to happen in about the year 2140.
Bitcoin has fascinated many in the tech community. However, if you follow the stock market, you know the value of a bitcoin can fluctuate veryly. It originally sold for $ 13 around the early part of 2013. Since then it has hit $ 900 and continues to move up and down wildly on a daily basis.
The real future of bitcoin depends much more than on the views of a few investors. In a recent interview on reddit, Cameron Winklevoss one of the twins involved in the Facebook lawsuit with Mark Zuckerberg and an avid bitcoin investor, predicated that one bitcoin could reach a value of $ 40,000. That is ten times what it is today.
A more realistic view suggests that speculators will eventually cause bitcoin to crash. It does not incorporate the ability to utilize its currency in the retail environment, apparently a must for long term success. Its wild fluctuations also make it a huge risk for investment purposes.
Still bitcoin pushes the boundaries of technology innovation. Much like Paypal in its infancy, the marketplace will have to decide if the risk associated with this type of digital currency and payment system makes for good long term business sense.
Transaction malleability is once again affecting the entire Bitcoin network. Generally, this causes a lot of confusion more than anything else, and results in seemingly duplicate transactions until the next block is mined. This can be seen as the following:
Often, this different transaction ID will confirm, and in certain block explorers, you will see warnings about the original transaction being a double spend or otherwise being invalid.
Ultimately though, just one transaction, with the correct amount of Bitcoins being sent, should confirm. If no transactions confirm, or more than one confirm, then this probably isn't directly linked to transaction malleability.
However, it was noticed that there were some transactions sent that have not been mutated, and also are failing to confirm. This is because they rely on a previous input that also won't confirm.
Essentially, Bitcoin transactions involve spending inputs (which can be thought of as Bitcoins "inside" a Bitcoin address) and then getting some change back. For instance, if I had a single input of 10 BTC and wanted to send 1 BTC to someone, I would create a transaction as follows:
10 BTC -> 1 BTC (to the user) and 9 BTC (back to myself)
This way, there is a sort of chain that can be created for all Bitcoins from the initial mining transaction.
When Bitcoin core does a transaction like this, it trusts that it will get the 9 BTC change back, and it will because it generated this transaction itself, or at the very least, the whole transaction won't confirm but nothing is lost. It can immediately send on this 9 BTC in a further transaction without waiting on this being confirmed because it knows where the coins are going to and it knows the transaction information in the network.
However, this assumption is wrong.
If the transaction is mutated, Bitcoin core may end up trying to create a new transaction using the 9 BTC change, but based on wrong input information. This is because the actual transaction ID and related data has changed in the blockchain.
Hence, Bitcoin core should never trust itself in this instance, and should always wait on a confirmation for change before sending on this change.
Bitcoin exchanges can configure their primary Bitcoin node to no longer allow change, with zero confirmations, to be included in any Bitcoin transaction. This may be configured by running bitcoind with the -spendzeroconfchange=0 option.
This is not enough though, and this can result in a situation where transactions cannot be sent because there are not enough inputs available with at least one confirmation to send a new transaction. Thus, we also run a process which does the following:
This way, we can convert one 10 BTC input into approximately ten 1 BTC inputs, which can be used for further transactions. We do this when we are "running low" on inputs and there twelve of less remaining.
These steps ensure that we will only ever send transactions with fully confirmed inputs.
One issue remains though - before we implemented this change, some transactions got sent that rely on mutated change and will never be confirmed.
At present, we are researching the best way to resend these transactions. We will probably zap the transactions at an off-peak time, although we want to itemise all the transactions we think should be zapped beforehand, which will take some time.
One simple technique to decrease the chances of malleability being an issue is to have your Bitcoin node to connect to as many other nodes as possible. That way, you will be "shouting" your new transaction out and getting it popular very quickly, which will likely mean that any mutated transaction will get drowned out and rejected first.
There are some nodes out there that have anti-mutation code in already. These are able to detect mutated transactions and only pass on the validated transaction. It is useful to connect to trusted nodes like this, and worth considering implementing this (which will come with its own risks of course).
All of these malleability issues will not be a problem once the BIP 62 enhancement to Bitcoin is implemented, which will make malleability impossible. This unfortunately is some way off and there is no reference implementation at present, let alone a plan for migration to a new block type.
Although only brief thought has been given, it may be possible for future versions of Bitcoin software to detect themselves when malleability has occurred on change inputs, and then do one of the following:
For those unfamiliar with Bitcoin, there are better ways to begin understanding it than this article; I'd recommend Wikipedia for starters. This article is intended for those who already think they know what Bitcoin is, but haven't yet traded in it. I was there - I thought I comprehended it, too, but having since dipped my toe in the pond, I've discovered an unexpectedly enlightening experience. There are so many nuances involved in the trading of Bitcoin as to make it tremendously educational. It forced me to consider a lot of the built-in features which go unscrutinized and even unrecognized in traditional currencies. In so doing, it made me assign my own values to those features, and allowed me to decide the most preferable ways of satisfying my various needs - choices which are normally taken from us.
There are aspects of Bitcoin which make it similar to fiat currency, but it is not cash. There are aspects similar to gold, but it is not bullion. There are aspects similar to securities, but it is not exactly a security. The question of "What is it?" is actually much more complicated than it appears. It exists solely as an entry in a distributed digital ledger; "having" Bitcoins really means having authority to transfer Bitcoins. No, in fact, that's not even technically correct. It means having a degree of authority measured in Bitcoins to transfer that very same authority. Try to wrap your brain around that. Going forward, I'll resort to referring to Bitcoins as the thing of value which is transferred, but understand that my doing so is solely shorthand to make this essay readable. Having Bitcoins is the authority to transfer authority.
Thus, upon deciding to acquire my first Bitcoin, the first step was to determine how to attain authority to transfer Bitcoins. One could theoretically print out the cryptographic code of a Bitcoin and hand the paper to someone else as a means of transferring the Bitcoin represented by the code, but how would that recipient know that the printout hadn't been duplicated and already spent? For that matter, how would the recipient know that the printout even represented some value in Bitcoin rather than merely a string of random characters? Transferring printouts of Bitcoin on paper may work (albeit inefficiently) between people who implicitly trust each other, such as for gifts between relatives, but the genius of Bitcoin is the distributed but authoritative nature of its ledger, and for that to work, transactions have to be exposed to its network.
If a Bitcoin printout is transferred around amongst a group of people without being exposed to the network, none of them would know whether it was valid or counterfeit. It would be like passing around a bank draft made payable to "Bearer;" it might have already been paid, or it might never have been good in the first place. No one would know until they tried to present it for payment at the maker's bank. As long as someone else is willing to accept a potentially-hot potato for goods or services, perhaps it doesn't matter, but people tend to be wary of ending up with hot potatoes. I am one such person, so I wanted my receipt of Bitcoins to be verified by the network. This turned my focus to a study of digital Bitcoin "wallets." Wallets are a digital place to store Bitcoin authority codes.
All new Forex traders commit some common mistakes in the start. Moreover, they have similar misconceptions as to the trading and the way to achieve success. In this article, you will read about some common mistakes and misconceptions that you may have in the start of your journey as a trader. You will also read about how to avoid the mistakes and eliminate any misconceptions that you may have. Read on for more.
1. Indicators and tools
If you think you need to make use of indicators in order to get a better idea of Forex trading, you are mistaken. There is no doubt that these tools can help but you can not take the risk of depending only on these tools. You may also want to consider the actual price action. As a matter of fact, some tools even inhibit your progress since they keep you away from the learning process.
2. Risk / reward
You should understand the risk reward and the right way to use it on single trades. Of course, your losing traders should be fewer than the winner trades, but you may also want to get a better idea of how this can make a difference in the actual trading. Make sure you consider each trade with respect to the risk to reward.
3. Forex trading plans
If you do not have a good trading plan, you are at a higher risk of suffering a loss. You must have a strong, functional plan. As a matter of fact, you should take Forex trading just like a business. In fact, it's a business nowdays. Actually, having a plan is a must for the prosperity and growth of any business in the world. With a solid trading plan, you can keep yourself accountable so you can avoid possible losses.
You should trade, not gamble. Some trader just end up messing things up. If you are getting into this trap, you should come out of it as soon as you can. The fact of the matter is that risk management is an important aspect of trading in the Forex industry. If you want to make the most money, make sure you know how to manage risk.
You may end up indulging your emotions during your trading, which is what you should not do. As a matter of fact, most traders end up losing a good deal of money just because of getting emotional. Actually, it becomes really hard to control yourself once you have gotten emotional.
For new traders, it's hard to bear patience. This happens when they approach the market with the wrong perspective. The majority of people are interested in trading just because they think that it is going to resolve a lot of their problems in some way. You should bear patience and keep on moving while avoiding risks and following a solid plan that you have.
So, if you are interested in Forex trading, make sure you avoid these mistakes. Hope this will help.
Though Stock Market and Share trading is an age old practice, Forex trading has gained importance since last couple of decades. Forex trading involves trading of foreign currencies in the financial market. Foreign exchange market primarily helps international businesses to transact the currencies or in other words, convert the currencies. Since Forex involves the currencies for the countries worldwide, it is a market which operates 24X7. Because of the given nature of the trading involved, it is imperative to have managed currency trading. Possibly one of the reasons why central banks, Hedge funds, investment agencies, etc are active participants in the Foreign Currency trading exchange.
Forex Trading is unique in itself because of the huge volume of liquidity involved. A small change in the currency value would give a higher return only if the investment is high. So players in the Forex market trade using high volume of money. However, the Forex is somewhat different and complex than that of stock trading. There are lots of broker houses involved in Forex trading. The advantage is that these Forex brokers act as advisors or dealers on behalf of the retail customers and to an extent contribute to have a managed currency trading. The brokers try to get a good deal for the customer by trading at the most profitable price and in turn charge a commission for the trade they do on the customer's behalf. These houses also provide Forex trading tips based the technical aspects of the Forex trading by considering the apparent patterns and studying price chart movements. Since huge liquidity is involved, the broker houses that have the authorization to trade in the currency market woo the customers and go head on in the competition. And then each house wants to be the Best Forex Broker and entice the customers. The Broker houses attract the customers to open accounts with their own houses which do professional Forex account management. Year after year, some broker house is chosen as the Best Forex Broker by experts in the Currency trading market.
The broker houses then sell the Forex Tips for a cost to the small broker houses and the currency traders. If you have equity shares with a broker house, you might as well get a margin for Forex trading, depending on your equity portfolio.
Though broker houses provide Forex trading tips for a cost, sometimes, retail customers may not be so well versed with the intricacies and the price movement of the currencies, it is advised that broker houses be used. A small change in price is what is seen in the currency market and these are very much dependent on the Economic changes, international events, central bank decisions, etc.
Gold and Bitcoin have been used synonymously as safe havens and currencies. What is a safe haven? It is a place to park wealth or money when there is a high degree of uncertainty in the environment. It has to be something that everyone can believe in even if the current institutions, governments or players in the business game are not available. The wealth has to be kept safe in times of trouble. What are the risks to someone's wealth? There is theft by robbery if it is a physical asset. There is damage by fire, flood or other elements. There is the legal issue in not being able to determine if the asset is really yours or not. There is access risk in that you may own the asset but may not be able to get your hands on it. You may own the asset but may not be able to use it due to some restriction. Who else do you have to rely on to be able to use your wealth - spending it, investing it or converting it into different units of measure (currencies)?
In cases like cash or currencies, you may have the asset and can freely use it, but it does not have value due to a systemic issue. There may be too many units of the currency such that using them would not purchase very much (hyperinflation). There is also devaluation - where a currency is arbitrarily devalued due to some economic or institution issue. Most of these issues come from too much debt and not enough assets to pay for them. A currency devaluation is like a partial or slow motion bankruptcy for a government or issuer. In a foreclosure scenario, the creditors (or users of the currency) would be getting a fraction of what the asset (or currency) was originally worth.
One key aspect for both bitcoin and gold is that in creating either of them, there is no liability involved. National currencies are issued with interest attached, which means there is a liability to the issuer of the currency. The currencies due to being centralized can also be "delisted" or have their value altered, devalued or swapped for other currencies. With Bitcoin, there would have to be consensus among the players for this to happen. Gold is nature's money, and since it was found, there is no one really in charge of how it works. Gold also has the history of being used as money for thousands of years in virtually every culture and society. Bitcoin does not have this reputation. The internet, technology and power grid are needed for Bitcoin to function, whereas gold just is. The value of gold is based on what it is being exchanged for. The value of Bitcoin is similar to buying a stock or a good: It is determined by what the buyer and seller agree it is worth.
Are there regulatory, institutional or systemic risks with Bitcoin? The answer is yes. What if a bunch of central banks or governments took over the Bitcoin issuance? Would this not lead to control issues that could either stop the Bitcoin transactions or impair them? What if the justification was to stop terrorism or illegal activities? There are also technology issues like who controls the internet, the electrical energy involved in mining Bitcoins, or other issues in infrastructure (the electrical grid, the nuclear grid, the internet servers, the telecom companies etc.) Regulatory risks can also run the gamut from restricting who buys Bitcoins, how many can trade each day or perhaps issuing trillions of units of fiat currency and buying and selling Bitcoins with them which would cause convulsions in the prices of the unit, leading to mistrust and lack of use? Gold does not have these shortcomings. Once it is mined, it cannot get destroyed. It is not reliant on technology, infrastructure or any institution to make it valid. Since it is small and portable, it can be taken anywhere and still be useful without any other mechanism needed. The prevailing institutions can be changed many times and gold will still be valuable.
Gold is a classic safe haven because it does not need institutions to exist, is very hard to forge, cannot be destroyed by the elements and does not have issues of access or restrictions. Physical theft and restriction may be factors, but gold fares better than currencies or digital currencies at this point in time.
Bitcoin is built on the notion that money is any object, or any sort of record, accepted as payment for goods and services and repayment of debts in a given country or socio-economic grouping. Bitcoin uses cryptography, or mathematical equations, to control the creation and transfer of money, rather than relying on governments and central banking authorities. Transfers for loans, sales, purchases or any other methods of payment can be processed by anybody, using a desktop, smart phone, tablet, or laptop. This is all possible without the need for a financial institution to act as an intermediary or recording agent.
Created in 2009, Bitcoin is a digital currency introduced as open source software by an MIT student named Satoshi Nakamoto. There is much speculation as to whether Satoshi is an actual person, or a collection of individuals using a pseudonym. Bitcoin are minted by a process termed mining, in which specialized computer hardware complete complex mathematic equations and are rewarded with a block of bitcoins. This process takes about 10 minutes and the current block rewards 25 bitcoins. The block reward will be halved to 12.5 bitcoins in 2017 and again approximately every four years thereafter. By 2140 there will be roughly 21 million bitcoins in existence.
This week has shown a whirlwind of activity with business owners of all stripes getting on track with Bitcoin. From small businesses in New Orleans, to the Sacramento Kings of the NBA accepting Bitcoin for ticket sales and team paraphernalia, to casinos in Las Vegas, Bitcoin is popping up everywhere. Venture Capitalist Chris Dixon believes Bitcoin may reach $100,000 if it becomes the primary means of ecommerce ( Wired ). The CEO of a major online retailer was quoted as saying "Other retailers will not want to miss out, Bitcoin market is growing by 30% per month." This same retailer saw a 5% increase in sales the first day it accepted Bitcoin. Zynga Games, one of the largest online gaming companies, responsible for Farmville, Castleville, and a host of others also began accepting Bitcoin for in game financial transactions. After the five Big Banks said no to money from marijuana dispensaries and growers, Colorado's legal marijuana dispensary industry turned to Bitcoin ( ZeroHedge ). The IRS has also recently launched a campaign that allows taxes to be paid with Bitcoin. There has been Bitcoin ATM's popping up in cities such as Vancouver, Ottawa, and a Bratislava Slovakia shopping mall. Recently, the New York City Bitcoin ATM was put on hold until a public hearing under the jurisdiction of the New York State Department of Financial Services can be held.
After flirting with the $1,000 value just after the New Year, Bitcoin has been steadily trading at around $950 on the Mt. Gox exchange over the last fortnight and is being nicely supported by the 50 day moving average indicating Bitcoin is still decidedly bullish. This was surprising to most analysts who believed the regulatory news coming out of China, India, and Russia would burst Bitcoins bubble. However, Michael Robinson, with over 30 years of experience in market analysis, believes most analysts are wrong. He suggests that the strong correction we saw in early December, coupled with the consistent support of the 50 day moving average, indicates Bitcoin is an extremely healthy market, and should only continue to increase in value.
"What is this 2000 peso note worth?" is frequently asked here at American Currency Exchange. Unfortunately, the answer is, inevitably, "Nothing."
In 1996, the Mexican Peso was devalued and new money issued as 20, 50,100, 200, 500, and 1000 peso notes. The new notes are issued by "Banco de Mexico." Pre -1992 notes are exchangeable at the rate of 1,000 "pesos moneda nacional" for each new peso. At this rate, a 2000 peso moneda nacional note would currently be worth 2 cents, virtually nothing.
Other currencies have also been devalued, among them, the Turkish Lira, and the Romanian Lei. So it is especially important to call us at 248 203 9883 before making the commute to Birmingham, especially if we are at a great distance from your home. We should easily be able to tell you whether your notes are current by asking you a few questions about the notes.
After the forming of the European Union, those countries joining the union changed their currencies over to the Euro. Countries belonging to the European Union are:
Cyprus (excepting Northern Cyprus),
France (excepting New Caledonia, French Polynesia, Wallis & Futuna, Germany,
Netherlands (excepting Aruba, and Netherlands Antilles),
In all these countries, noting exceptions, the Euro is the currency used. Currencies which were used prior to the Euro are accepted at banks and most currency exchanges, but are bought back at a lower rate since they are no longer in use. Examples are the Italian Lira, the German Mark, and the French Franc. At some point in the future, these currencies will no longer be worth anything except for nostalgic value. Therefore, anyone possessing them should sell them back as soon as possible.
American Currency Exchange does currently buy back these outdated currencies notes at a competitive rate of exchange.
Countries not joining the European Union still hold their own currencies. These countries are:
The United Kingdom, pound
The Czech Republic, koruna
Latvia, lats (lati, latu)
Lithuania, litas (lital, litu)
Poland, zloty (zlotych)
Romania, leu (lei)
and Slovakia. Koruna (koruny, korun)
Among these notes, the Romanian polymer notes dated 2000-2003 may be redeemed without time limit at the rate of 10,000 old lei for 1 new leu. Older paper notes are worthless.
Another country, which has devalued its currency, is the Turkish Lira. Outmoded and mutilated noted can only be redeemed at the central bank. All Turkish notes in denominations of 50,000 and up are redeemable until the end of 2015, at the rate of 1,000,000 old lira for a new one.
The rule of thumb is: do a little research before you drive off to redeem your foreign currency. If it has been sitting in someone's drawer for years, it may not be worth enough to pay for the gas it would take to drive to the currency exchange. Even worse, it may be worth nothing at all.
The notable recent increase in Bitcoin prices has rekindled the imagination of many investors, but Blockchain technology is not merely about the money. In this article, we will take a look at how significant an impact this revolutionary technology will have on classic web hosting services.
The concept of cryptocurrency is not rocket science. In fact, this medium of exchange is no more complicated than traditional currency. However, it nonetheless needs a secure and trusting environment in which it can operate, and that is provided by Blockchain.
What is Blockchain? There are many misunderstandings relating to it, but, for the purposes of this article, we will simply define it as a distributed spreadsheet. We are all familiar with Excel or Open Office spreadsheets, but what makes Blockchain so attractive is the way it is distributed.
Just like the files in Torrent, Blockchain is a peer-to-peer network where it is not necessary to ensure trust between parties. Thanks to modern cryptography, the trust is instead maintained on the level of a single record rather than the party hosting it.
Okay, so now we understand the basics of the cryptocurrency revolution, but how, we may ask, does it affect web hosting services? Essentially, in its simplest form, this would suggest not only selling your services in your local currency, but also in Bitcoin and other cryptocurrencies.
However, this is not the end of the revolution. Bitcoin and other digital currencies need electronic wallets to operate, and there is thus huge potential for traditional web hosting vendors. If you have the trust of your customers and are hosting their sites, then why not host their electronic valets?
Each operation in cryptocurrency is a de facto transaction between two electronic valets. Every exchange is maintained through the wallet and you can also provide an interface for your customers to access it. This factor is pivotal in order to fully understand the impact Blockchain can have on your web hosting business.
This said, Blockchain is not only about money. The newest versions of its protocols also provide the opportunity to enact any form of contract between the parties, whether this is a subscription to cable television or indeed any other type of bill. They all need to be stored somewhere, and there is a place for web hosting companies to be involved.
The wallet is thus the key to fully utilizing the potential of Blockchain. Once you understand this, what then should be your next steps?
Bitcoin is a virtual currency. It doesn't exist in the kind of physical form that the currency & coin we're used to exist in. It doesn't even exist in a form as physical as Monopoly money. It's electrons - not molecules.
But consider how much cash you personally handle. You get a paycheck that you take to the bank - or it's autodeposited without you even seeing the paper that it's not printed on. You then use a debit card (or a checkbook, if you're old school) to access those funds. At best, you see 10% of it in a cash form in your pocket or in your pocketbook. So, it turns out that 90% of the funds that you manage are virtual - electrons in a spreadsheet or database.
But wait - those are U.S. funds (or those of whatever country you hail from), safe in the bank and guaranteed by the full faith of the FDIC up to about $250K per account, right? Well, not exactly. Your financial institution may only required to keep 10% of its deposits on deposit. In some cases, it's less. It lends the rest of your money out to other people for up to 30 years. It charges them for the loan, and charges you for the privilege of letting them lend it out.
How does money get created?
Your bank gets to create money by lending it out.
Say you deposit $1,000 with your bank. They then lend out $900 of it. Suddenly you have $1000 and someone else has $900. Magically, there's $1900 floating around where before there was only a grand.
Now say your bank instead lends 900 of your dollars to another bank. That bank in turn lends $810 to another bank, which then lends $720 to a customer. Poof! $3,430 in an instant - almost $2500 created out of nothing - as long as the bank follows your government's central bank rules.
Creation of Bitcoin is as different from bank funds' creation as cash is from electrons. It is not controlled by a government's central bank, but rather by consensus of its users and nodes. It is not created by a limited mint in a building, but rather by distributed open source software and computing. And it requires a form of actual work for creation. More on that shortly.
Who invented BitCoin?
The first BitCoins were in a block of 50 (the "Genesis Block") created by Satoshi Nakomoto in January 2009. It didn't really have any value at first. It was just a cryptographer's plaything based on a paper published two months earlier by Nakomoto. Nakotmoto is an apparently fictional name - no one seems to know who he or she or they is/are.
Who keeps track of it all?
Once the Genesis Block was created, BitCoins have since been generated by doing the work of keeping track of all transactions for all BitCoins as a kind of public ledger. The nodes / computers doing the calculations on the ledger are rewarded for doing so. For each set of successful calculations, the node is rewarded with a certain amount of BitCoin ("BTC"), which are then newly generated into the BitCoin ecosystem. Hence the term, "BitCoin Miner" - because the process creates new BTC. As the supply of BTC increases, and as the number of transactions increases, the work necessary to update the public ledger gets harder and more complex. As a result, the number of new BTC into the system is designed to be about 50 BTC (one block) every 10 minutes, worldwide.
Even though the computing power for mining BitCoin (and for updating the public ledger) is currently increasing exponentially, so is the complexity of the math problem (which, incidentally, also requires a certain amount of guessing), or "proof" needed to mine BitCoin and to settle the transactional books at any given moment. So the system still only generates one 50 BTC block every 10 minutes, or 2106 blocks every 2 weeks.
So, in a sense, everyone keeps track of it - that is, all the nodes in the network keep track of the history of every single BitCoin.
How much is there and where is it?
There is a maximum number of BitCoin that can ever be generated, and that number is 21 million. According to the Khan Academy, the number is expected to top out around the year 2140.
As of, this morning there were 12.1 million BTC in circulation
Your own BitCoin are kept in a file (your BitCoin wallet) in your own storage - your computer. The file itself is proof of the number of BTC you have, and it can move with you on a mobile device.
If that file with the cryptographic key in your wallet gets lost, so does your supply of BitCoin funds. And you can't get it back.
How much is it worth?
The value varies based on how much people think it's worth - just like in the exchange of "real money." But because there is no central authority trying to keep the value around a certain level, it can vary more dynamically. The first BTC were basically worth nothing at the time, but those BTC still exist. As of 11AM on December 11, 2013, the public value was $906.00 US per BitCoin. When I finished writing this sentence, it was $900.00. Around the beginning of 2013, the value was around $20.00 US. On November 27, 2013 it was valued at more than $1,000.00 US per BTC. So it's kind of volatile at the moment, but it's expected to settle down.
The total value of all BitCoin - as of the period at the end of this sentence - is around 11 billion US dollars.
How can I get me some?
First, you have to have a BitCoin wallet. This article has links to get one.
Then one way is to buy some from another private party, like these guys on Bloomberg TV. One way is to buy some on an exchange, like Mt. Gox.
And finally, one way is to dedicate a lot of computer power and electricity to the process and become a BitCoin miner. That's well outside the scope of this article. But if you have a few thousand extra dollars lying around, you can get quite a rig.
How can I spend it?
There are hundreds of merchants of all sizes that take BitCoin in payment, from cafes to auto dealerships. There's even a BitCoin ATM in Vancouver, British Columbia for converting your BTC to cash in Vancouver, BC.
Money has had a long history - millennia in length. Somewhat recent legend tells us that Manhattan Island was bought for wampum - seashells & the like. In the early years of the United States, different banks printed their own currency. On a recent visit to Salt Spring Island in British Columbia, I spent currency that was only good on the lovely island. The common theme amongst these was a trust agreement amongst its users that that particular currency held value. Sometimes that value was tied directly to something solid and physical, like gold. In 1900 the U.S. tied its currency directly to gold (the "Gold Standard") and in 1971, ended that tie.
Now currency is traded like any other commodity, although a particular country's currency value can be propped up or diminished through actions of their central bank. BitCoin is an alternate currency that is also traded and its value, like that of other commodities, is determined through trade, but is not held up or diminished by the action of any bank, but rather directly by the actions of its users. Its supply is limited and known however, and (unlike physical currency) so is the history of every single BitCoin. Its perceived value, like all other currency, is based on its utility and trust.
As a form of currency, BitCoin not exactly a new thing in Creation, but it certainly is a new way for money to be created.
There are a number of these Web-based Bitcoin wallets from which to choose, and they have different features, costs, and reputations to review and consider. Do you need merchant tools? Do you need currency exchange services? Do you need "cold" vault storage? Do you want multi-factor authentication? Whatever you need, there's someone out there offering to provide it for you.
Once you've created an account and a wallet, how do you get Bitcoins? There are two obvious answers. First, if you already had money in one currency and wanted to convert it to a different currency, you could exchange it. Second, the same way that you sell goods or labor for your local currency, you can sell goods or labor for Bitcoin. I explored both of those options.
Bitcoin exchanges work similar to traditional currency exchanges. There are competitive firms with different appetites for various currencies, and they adjust their exchange rates accordingly. There are some with teller's windows you can visit in person, and there are even automated ones, like ATMs, which accept currency, credit cards or Bitcoin, and dispense currency or Bitcoin. I prefer to perform my transactions online, so I searched the various online exchanges. At each, to buy Bitcoin, you must establish and fund an account and then place an order to buy or sell Bitcoin - and there's a spread, just like securities. In these regards, it's similar to a traditional brokerage account, but without the SIPC insurance. If the exchange gets hacked, shutters itself, or is otherwise compromised, your deposits could be temporarily inaccessible or permanently lost. This has already happened to a couple of Bitcoin exchanges, which reinforced my prior mental note to reevaluate my risks if my balances became significant.
Next I updated my business Websites to indicate that we accepted Bitcoin. I figured I could avoid the fees and the bid-ask spread if I could just get someone to pay for my goods or services at the spot price. Years later, having not earned a single Bitcoin, I returned to my study of exchanges.
If you're not familiar with Level-II stock quotes or "depth" charts, it's basically two lists. One list tallies and ranks in price order all the outstanding "buy" orders for a specified equity, showing the number demanded at various price levels; the other similar ranks "sell" orders. When someone places a "market" order to buy ABC, the outstanding "sell" orders for ABC are matched in price order. So, if someone is selling 100 shares of ABC for $ 30 and someone else is selling 500 shares for $ 31, all 100 of the $ 30 shares will be consumed before a single $ 31 share will be sold on that exchange. Bitcoin exchanges work the same.
Nowadays, people are busy mining Bitcoins. Serious miners opt for professional advice in order to build their mining rigs in a professional manner to get the most out of their investment. Although you can learn a lot from browsing forums, nothing can beat professionals' advice. While this guide doesn't focus on building a rig, it will help you get the most out of your rig. Moreover, you will be able to mine inexpensively. Let's go into detail.
Go for the right GPU
Primarily, there are two brands of GPUs namely Nvidia and AMD. We suggest that you choose AMD. Another choice that you need to make is choose a GPU made by XFX or Shapphire. There is another option called Gigabyte MSI. Our recommendation is Shapphire. As far as our experienced is concerned, Shapphire makes the highest quality graphics cards. After all, you can't afford to waste thousands of dollars on graphics cards alone. It's better to spend a bit more and opt for high quality products only.
If you have 280-290 graphics cards, you may want to choose 15.12 drivers. On the other hand, for latest cards, we suggest that you download the latest drivers. Aside from the driver, you can also opt for the Radeon Chill.
Although a lot of people are into linux, we don't think anything beats Windows. The reason is that the highest quality miners are made for the Windows OS. Moreover, Windows-based systems are easy to run.
As far as miners are concerned, Claymore has a great reputation. So, we strongly suggest that you choose a Windows-based miner.
Opt for a minimum of 5 GPUs
A mining rig has a lot of expensive components. So, It's not a good idea to save money on the graphics cards. The fact of the matter is that it doesn't make sense. Ideally, you should opt for a minimum of two cards.
On Windows 7, you can't use more than 4 cards. However, if you download a special driver, you can use more than 4 cards as well.
Windows 10 can detect all of the GPUs; however, it will consume a bit more of your rig's resources. The best option is Windows 7.
Make use of the USB risers
Risers are the devices that allow you to connect your PC with the graphics card. Today, the technology has allowed us to make use of USB risers because of their stability and efficiency.
Cool your GPUs down
You know that heat kills electronic devices pretty soon. The same goes for graphics cards as well. If you use your cards the right way, they will work for you for years.
All you need to do is remove the four screws from the card and paste some fresh paste on the GPU chip. That's it. It will improve the heat transmission. As a result, you can keep your GPU cool for years to come. This will make your GPU last a lot longer than your expectations.
Edit the virtual memory
It's better edit the virtual memory of your PC and sit it to 16 GB.
So, these are a few things you can do to make your mining rig more efficient.
By now you have probably heard of Bitcoin, but can you define it?
Most often it is described as a non-government digital currency. Bitcoin is also sometimes called a cybercurrency or, in a nod to its encrypted origins, a cryptocurrency. Those descriptions are accurate enough, but they miss the point. It's like describing the U.S. dollar as a green piece of paper with pictures on it.
I have my own ways of describing Bitcoin. I think of it as store credit without the store. A prepaid phone without the phone. Precious metal without the metal. Legal tender for no debts, public or private, unless the party to whom it is tendered wishes to accept it. An instrument backed by the full faith and credit only of its anonymous creators, in whom I therefore place no faith, and to whom I give no credit except for ingenuity.
I wouldn't touch a bitcoin with a 10-foot USB cable. But a fair number of people already have, and quite a few more soon may.
This is partly because entrepreneurs Cameron and Tyler Winklevoss, best known for their role in the origins of Facebook, are now seeking to use their technological savvy, and money, to bring Bitcoin into the mainstream.
The Winklevosses hope to start an exchange-traded fund for bitcoins. An ETF would make Bitcoin more widely available to investors who lack the technological know-how to purchase the digital currency directly. As of April, the Winklevosses are said to have held around 1 percent of all existent bitcoins.
Created in 2009 by an anonymous cryptographer, Bitcoin operates on the premise that anything, even intangible bits of code, can have value so long as enough people decide to treat it as valuable. Bitcoins exist only as digital representations and are not pegged to any traditional currency.
According to the Bitcoin website, "Bitcoin is designed around the idea of a new form of money that uses cryptography to control its creation and transactions, rather than relying on central authorities." (1) New bitcoins are "mined" by users who solve computer algorithms to discover virtual coins. Bitcoins' purported creators have said that the ultimate supply of bitcoins will be capped at 21 million.
While Bitcoin promotes itself as "a very secure and inexpensive way to handle payments," (2) in reality few businesses have made the move to accept bitcoins. Of those that have, a sizable number operate in the black market.
Bitcoins are traded anonymously over the Internet, without any participation on the part of established financial institutions. As of 2012, sales of drugs and other black-market goods accounted for an estimated 20 percent of exchanges from bitcoins to U.S. dollars on the main Bitcoin exchange, called Mt. Gox. The Drug Enforcement Agency recently conducted its first-ever Bitcoin seizure, after reportedly tying a transaction on the anonymous Bitcoin-only marketplace Silk Road to the sale of prescription and illegal drugs.
Some Bitcoin users have also suggested that the currency can serve as a means to avoid taxes. That may be true, but only in the sense that bitcoins aid illegal tax evasion, not in the sense that they actually serve any role in genuine tax planning. Under federal tax law, no cash needs to change hands in order for a taxable transaction to occur. Barter and other non-cash exchanges are still fully taxable. There is no reason that transactions involving bitcoins would be treated differently.
Outside of the criminal element, Bitcoin's main devotees are speculators, who have no intention of using bitcoins to buy anything. These investors are convinced that the limited supply of bitcoins will force their value to follow a continual upward trajectory.
Bitcoin has indeed seen some significant spikes in value. But it has also experienced major losses, including an 80 percent decline over 24 hours in April. At the start of this month, bitcoins were down to around $90, from a high of $266 before the April crash. They were trading near $97 earlier this week, according to mtgox.com.
The Winklevosses would make Bitcoin investing easier by allowing smaller-scale investors to profit, or lose, as the case may be, without the hassle of actually buying and storing the electronic coins. Despite claims of security, Bitcoin storage has proved problematic. In 2011, an attack on the Mt. Gox exchange forced it to temporarily shut down and caused the price of bitcoins to briefly fall to nearly zero. Since Bitcoin transactions are all anonymous, there is little chance of tracking down the culprits if you suddenly find your electronic wallet empty. If the Winklevosses get regulatory approval, their ETF would help shield investors from the threat of individual theft. The ETF, however, would do nothing to address the problem of volatility caused by large-scale thefts elsewhere in the Bitcoin market.
While Bitcoin comes wrapped in a high-tech veneer, this newest of currencies has a surprising amount in common with one of the oldest currencies: gold. Bitcoin's own vocabulary, particularly the term "mining," highlights this connection, and intentionally so. The mining process is designed to be difficult as a control on supply, mimicking the extraction of more conventional resources from the ground. Far from providing a sense of security, however, this rhetoric ought to serve as a word of caution.
Gold is an investment of last resort. It has little intrinsic value. It does not generate interest. But because its supply is finite, it is seen as being more stable than forms of money that can be printed at will.
The problem with gold is that it doesn't do anything. Since gold coins have fallen out of use, most of the world's gold now sits in the vaults of central banks and other financial institutions. As a result, gold has little connection to the real economy. That can seem like a good thing when the real economy feels like a scary place to be. But as soon as other attractive investment options appear, gold loses its shine. That is what we have seen with the recent declines in gold prices.
In their push to bring Bitcoin to the mainstream, its promoters have accepted, and, in some cases sought out, increased regulation. Last month Mt. Gox registered itself as a money services business with the Treasury Department's Financial Crimes Enforcement Network. It has also increased customer verification measures. The changes came in response to a March directive from Financial Crimes Enforcement Network clarifying the application of its rules to virtual currencies. The Winklevosses' proposed ETF would bring a new level of accountability.
In the end, however, I expect that Bitcoin will fade back into the shadows of the black market. Those who want a regulated, secure currency that they can use for legitimate business transactions will pick from one of the many currencies already sponsored by a national government equipped with ample resources, a real-world economy and far more transparency and security than the Bitcoin world can offer.
After the Bitcoin bubble bursts, we won't even be able to use the leftover coins for jewelry.
1) Bitcoin, "About Bitcoin"
2) Bitcoin, "Bitcoin for Businesses"
Bitcoin is a cryptocurrency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. While the currency has been around for a long time, its popularity rose a few years ago when merchants started accepting it as a form of payment. In addition to using it in your transactions, you can also trade it thus making huge profits.
The benefits of trading the currency
There are plenty of reasons why you should consider buying the currency. Some of these reasons include:
Ease of entry: Unlike the stock market and other trading channels, there are almost no barriers to entry into the Bitcoin market. All you need to do is identify a seller that you can buy from. If interested in selling, identify a buyer, and you are ready to go.
Global: You can trade the currency from any part of the world. This means that a person in China can buy or sell Bitcoin to a person in Africa or any other place. This makes the currency significant as it isn't affected by the economy of a single country.
It's volatile: Just like the other currencies in the foreign exchange market, Bitcoin is highly volatile. This means that it quickly changes its price due to slight shifts in the economy. If you take advantage of the changes, you can make huge profits.
24/7 trading: Unlike the stock market that operates during the business hours, Bitcoin trading happens the entire day and night. The trading limitations are only on you-not on time.
How to get Bitcoins
If interested in getting into the market, there are plenty of ways you can use to get the currency. Some of the ways you can use include:
Buying on an exchange: Here you need to get into the marketplace, and you will find people looking to sell the currency. You should identify a reputable seller and place an order.
Transfers: You can also get Bitcoin from a friend. Here a friend needs to send you the currency via an app located on the computer or phone.
Mining: This is the traditional way of getting the coins. In this method, you use the computer to solve complex math puzzles. After successfully completing a puzzle you are rewarded with the coins. While this method is free, it's usually time-consuming.
This is what you need to know about Bitcoins and their trading. When you own the currency, you can decide to keep it in your digital wallet or trade it.
Technology is progressing by leaps and bounds. It is introducing new terms and systems for business and communications on a daily basis. Internet has made a large contribution in this advancement; especially when it comes to the field of business. Online trading or online currency trade has recently attracted many traders. One of the common forms on online trading is Bitcoin Exchange.
What is Bitcoin?
Bitcoin exchange is a new system of money for the internet that works on the concept of digital currency. It initializes the peer to peer payment system for individuals having no central authority. A new concept of crypto currency is used that was initially introduced in 1998. Cryptography controls the creation and transactions of digital money. Bitcoin works through a software system and does not have any central controlling authority so it is equally managed and controlled by its users around the globe.
Working of Bitcoin Exchange
One can work with Bitcoin exchange just like it works with any other kind of currency exchange. Just like working with banks, it is easy to make transactions through Bitcoin Exchange. Analogous to physical trade, the user has to pay to purchase Bitcoins. The difference is that the person has to open an account with some Bitcoin Exchanger. The paid asset of the user will be available in the form of digital currency that can be used to purchase any kind of product. Bitcoins can be exchanged with other bitcoin holders too. This system works similar to the money exchanges in the banks.
Almost in all payment systems, the payments can be reversed after making a transaction through PayPal or credit cards. But with Bitcoin, the situation is changed, as after making a transaction, one cannot get it back or reverse it. So be careful while exchanging your bitcoins with currency mediums because you may face chargeback issues. It is preferable to make exchanges with other bitcoin holders near to you.
Benefits of Bitcoin Exchange
Bitcoin currency exchange is quite new. It's a sort of software base payment system where you make transactions digitally. Here is how it can benefit you:
· Make transactions quicker than other systems
· Always availability for transactions
· Make transactions from anywhere in the world
· Make safer transactions
· Perform transactions without interference of any third party
· Monitor all transactions from home PC or from Smartphone
· Purchase any kind of asset using bitcoin
Drawbacks of Bitcoin
Bitcoin exchange is an innovation in economical systems of the world. When practically used, some drawbacks come forward too. Some of them are as follows:
Ø Acceptance in market
The number of bitcoin users is growing but still it is not a widely used currency or exchange system. Its level of acceptance in financial matters is still low.
As Bitcoin is not commonly used, it is not a stable currency. However, there is a hope that this instability will reduce as the user list and amount of bitcoins in the market become more readily used.
Ø Partial development
A big problem is that the Bitcoin software is still in its beta phase and there are a number of imperfect features, which still need to be fixed. New modules are under process of development to make bitcoin exchange safer for all.
For 2018, the markets started off in a mostly positive direction, and have now started heading in reverse. The Dow plunged over 665 points, posting the steepest weekly decline in over two years. As mainstream markets decline, investors immediately start re-assessing their risk tolerance, and Crypto Currency (CC) investors are re-assessing risk even more, given all the discussion about how volatile this market space can be. It is not the usual mainstream economic drivers causing the CC plunge - it is fear, which is wildly contagious across all investment categories. Markets are largely driven by human fear and greed, two emotions that cause most investors to be unsuccessful over the long term. Cold hard analysis, coupled with "smart" Buy/Sell strategies, removes emotion from your investment decisions and paves the way to success. Strong bull markets need to correct once in a while, to restore balance and set the stage for the next run up.
CC Exchanges can be significantly less nimble than the mainstream stock market exchanges; however, there are several CC Exchanges that accommodate BUY and SELL LIMIT orders. Using those facilities as part of an "Entrance and Exit" strategy is highly recommended.
The news in the CC markets throughout January was mainly focused on the declining prices of almost all the coins. CC price declines preceded the overall stock market decline and are a reaction to more and more national governments indicating that they want to either ban CC's, or increase their means to control and tax them. With all the fear that is now being generated in the mainstream stock markets, this is a perfect storm wherein CC investors have multiple sources generating fear.
Welcome to the world of cryptos, where you can make a fortune in months, and see things crash even faster. Clearly, investing anything more than a small portion of your portfolio in cryptos is a risky proposition. But if you believe, as we do, that the concepts behind Bitcoin and other cryptos, specifically the blockchain distributed database - are sound, then it makes sense to invest in cryptos, and especially indirectly in the blockchain infrastructure that supports Crypto Currencies, a technology that is expanding into many other sectors.
Today, there are over 36 major industries heavily investing in blockchain technology to revolutionize their industry, by cutting or eliminating costs, and dramatically improving efficiency and transparency. We are talking about a wide spectrum of industries including:
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