Bitcoin and Ethereum are the two most popular cryptocurrencies out there. While Bitcoin is merely a cryptocurrency, Ethereum is much more than that. It is a ledger technology that allows organizations to create a broad array of programs. If Bitcoin was version 1.0, Ethereum is 2.0, enabling the development of decentralized applications (dApps) on it. Simply put, it promises a new age of innovation.
The entire platform is decentralized, which means that it doesn’t come with a single point of failure – a common problem in centralized solutions. Therefore, all the applications built on Ethereum will always stay online. In addition, the cryptographic security implemented in Ethereum protects it against a myriad of possible fraudulent activities and hacking attacks.
Ethereum is not unlike any other cryptocurrency platform. In fact, it receives support from the Enterprise Ethereum Alliance, a group of Fortune 500 companies that have agreed to collaborate on smart contracts, Ethereum’s blockchain-based technology.
A smart contract is a piece of computer code that allows users to make a transaction involving anything – gold, company shares, property, and of course, money. Here are the core benefits of Ethereum:
- Transactions on Ethereum are immutable, meaning no one can tamper with the data, even the uploader.
- The consensus mechanism in Ethereum prevents the need for an intermediary. That is also why smart contracts are independent.
- Since there are no third-party fees involved, Ethereum provides faster and cheaper transactions.
Over the last years, Ethereum has proven itself as a stable and safe platform. Applications built on it have been running exactly as envisioned, without any fraud or downtime. These apps are disrupting several industries, include real estate, finance, and insurance. These apps include:
Need more details on Ethereum’s applications? Reach out to us right now. cryptocapers.com
The Rise of Cryptocurrency
A cryptocurrency, a digital currency or crypto coins is a digital asset structured to function as a virtual medium of transaction where public coin ownership information is stored in a distributed ledger usually in a trust model. This ledger is controlled by a network of individual servers all over the world that act as intermediaries to facilitate the safe, instant, and reliable transfer of funds. The major benefit of cryptosystems is the security properties that make them immune to hacking, fraud, and other threats that may come from a volatile banking system. The system is highly secure because it requires multiple backups to each and every public coin ownership so that in case of a disaster one copy will still be functioning.
There are several different types of cryptosystems including Litecoin, Dogecoin, Nxt, Peercoin, Terracoin, and Bitshares. Unlike traditional cryptocurrencies that use Proof of Work (POW) to award new coins, a Cryptocurrency is based on a Proof of Stake (POS). The POS system is an agreement among diverse individuals that govern the distribution and sale of their stake in the market capitalization. The distribution of this stake is done through what is called “exchange pools”. The advantage of these systems compared to centralized cryptocurrencies is that it is less prone to outside influences like a centralized organization. In the event of a decentralized system being hacked, unlike the case with a POW system, most of the exchanges can self-correct without having to resort to a voting process.
Unlike other forms of Cryptocurrency like stocks and shares, which have limited supply, Cryptocurrency is traded globally and there is a high demand for it. The demand for Cryptocurrency is attributed to several factors including its high-profit potential, its high volatility, and its fast speed. The fastest and highest profit potential of any Cryptocurrency is seen in the buy and sell cryptosystem called “bitfinex”. Other Cryptocurrencies like Dash, Zcash, Monero are much slower and have lower trading volumes. Despite the large gaps in terms of volume and profit potential, all cryptosystems are volatile in nature and tend to follow the trend of the market, increasing in value and decreasing in value over short periods of time.
Like any other type of market, Cryptocurrency markets tend to exhibit “trend overlaps” with other markets. This is where two cryptosystems, such as the Dash and cash, tend to follow the same trend as the Dogecoin market. This is because both of them have built their business on the same premise – to empower ordinary people to participate in the economic activity of the country. Both Dash and Zcash are popularly traded over the Internet. There is also a close relationship between Dash and PIVX, another well-known tokenized Cryptocurrency. The two currencies almost seem to swap the role of the major players in the Cryptocurrency market, with each one taking advantage of the other’s network effect.
Most of the Cryptocurrency players are based in China, Japan, South Korea, and Hong Kong. In terms of market capitalization, four major Cryptocurrencies – ETH, BTC, BNB, and Tether. Some of the lesser-known Cryptocurrency such as SRK is worth less than a dollar each. Some of the more volatile and profitable Cryptocurrency is still relatively new on the marketplace and also face high trading costs and are thus not traded on major exchanges.
There are several forms of Cryptocurrencies that are currently being traded on major exchanges. Most of the tradable Cryptocurrencies follow the same principle of supply and demand. There are very few exceptions to this principle. One of the few exceptions is Monero, which is not actually a Cryptocurrency but rather a digital currency that was designed by a group of computer geeks. This type of Cryptocurrency is difficult to obtain and not recognized by most central banks.
Bitcoin Scams Are Back. Bitcoin Scams are Excellent Bitcoin Price Indicators.
When you see that Bitcoin scams are back you know that Bitcoin pricing is on an upward trend. Most of the cryptocoin and Bitcoin groups on Facebook were dead for the past several months. They were barren wastelands devoid of any movement or activity at all. Then something interesting starting happening at the end of March.
Bitcoin prices started to increase. The Bitcoin scams increased too. Bitcoin scams are back.
The news that Bitcoin scams are back is bad news with a silver lining. While nobody is happy to see innocent or gullible people get robbed by Bitcoin scammers, everybody should be happy by what always happens next; Bitcoin goes up.
Indeed, Forbes reported on this two years ago:
Whenever something gets hot, the only guarantee is that scamsters will lock onto it like a heat-seeking missile. The virtual currency bitcoin is no exception.
The wise investor knows good things are coming. Would-be Bitcoin investors should know to exercise “street smarts” in avoiding buying or selling Bitcoin any other way than through a reputable exchange.
For the Bitcoin critics and naysayers out there it must be said that in every age and generation there were people scamming the unsuspecting public out of their money. Elizabeth Holmes of Theranos is perhaps the best, most recent example of this. Bitcoin prices have a history of high volatility leading to jilting dips and life-changing gains. The Bitcoin scammers go into hibernation when the price is low then wake up and get back to work as soon as an upward trend in Bitcoin prices emerge.
In one sense we should be a muted kind of pleased to see Bitcoin scammers but angry at them for every other reason; they rob, cheat and steel from trusting, unsuspecting victims. I can’t resist to coin a phrase; every coin has two sides.
Cryptocurrency Bubble History – What the DotCom Bubble Can Teach Us
The explosion of the DotCom era and the subsequent plunge of almost EVERY Internet stock has many parallels to what I consider cryptocurrency bubble history. In the late 1990s, companies were raising millions of dollars in IPOs. The trick seemed to be just have “.com” in your company name and/or logo. ICOs up until recently had a very similar draw and legions of Lambo-seeking investors went crazy pouring every dollar they could into what seemed to be very lucrative cryptocoins. There are so many similarities between the DotCom Bubble and current cryptocurrency bubble history, it would be a very good idea to get warmed up on the DotCom Bubble.
While lots and lots and lots of people lost, collectively, BILLIONS of dollars during the DotCom Bubble, it needs to be said that the Internet we know and love today was born out of the ashes of the DotCom Bubble. History seems to be repeating itself with cryptocurrency bubble history.
Bitcoin is staging a slow but steady price comeback. Bitcoin mining equipment is starting to sell again. Just today the Wall Street Journal reported today Facebook is positioning itself into launching its own cryptocoin designed to be used all over the Internet and tightly integrated into the Facebook ecosystem.
CoinDesk seems to have known all along there would be a crypto comeback; they continued to roll out new services, expanded trading and grew the company while the cryptocurrency markets corrected. The summary of cryptocurrency bubble history comes down to just two words; market corrections.
As with the DotCom bubble, investors started paying very close attention to all of those Internet companies and asking some pointed questions; is this company serious? Do they have a realistic chance of pulling off what they set to do? What’s my time horizon for ROI? The next wave of Internet companies formed the foundation of the Internet we use today after FOMO fever drove so many people not only broke but into the poor house.
Parallels again; ICOs are virtually extinct, replaced by STOs and DSOs which have a reasonable amount of risk NOT the ludicrous risk ICOs had with whitepapers so worthless through fakery as to not even be useful as toilet paper.
For several months CryptoCapers.com decided to sit on the sidelines and just wait. We knew there was going to be a slow and steady market rebound. Up until just recently there was nothing much to write about. The Bitcoin price was basically stuck, other coins were cratering and new offerings were few and far between.
John McAfee Fugitive Follies – What’s Next For The Most Interesting Man in The World?
On the run from the IRS and running for President of the United States. Welcome to the John McAfee Fugitive Follies.
The cryptocoin world had quite a spokesman in John McAfee. Imminently intelligent and obviously eccentric, he was the perfect poster boy for crypto currency, his last escapades in Belize and through Guatemala before returning to the United States notwithstanding.
Apart from being being fascinating and entertaining on the level of the OJ Simpson slow speed chase in that white Ford Bronco so long ago is the potential for a teachable moment. If John McAfee is as wealthy as he claims to be through cryptocurrency AND if his assertions of privacy and fluid of movement are to be proven, this latest adventure of John McAfee known as the John McAfee Fugitive Follies could be the test case everybody has been looking for. If John McAfee continues to live the posh life while on the run, in exile, or whatever then the case he’s been making for cryptocoins all along will have been made.
There’s one obvious downside to the John McAfee fugitive follies; he’s giving the cryptocoin world a sorely unneeded black eye through his latest misadventures. Tax evasion is not something you want to be known for in any circle. Connect tax evasion to the current cryptocoin climate where government sentiment is concerned and it’s clear John McAfee is doing more harm than good at the moment.
A cautionary tale for John McAfee and anyone following the John McAfee Fugitive Follies: Al Capone was the most prominent target of the US government in history. He deflected every attempt to put him behind bars even when the FBI put their full weight on him. Mind you, the FBI back then was way more powerful than today’s FBI relative to civil liberties, procedures and all the rest. So how did the untouchable Al Capone end up in Alcatraz? The IRS.
Get To Know Your ICOs: ICO Review 2018
Initial coin offerings (ICOs) are sometimes considered to be the wild west of the finance world – a new territory ripe for exploration, filled with pitfalls and opportunities alike for the bold and adventurous.
Understandably, ICOs are a hot topic today not just among the early adopters and cryptocurrency enthusiasts, but also among entrepreneurs, startups, and even regular folk looking to cash in on the latest high-tech trends. Any ICO review 2018 needs to take a hard look at the brutal losses this yewar with an optimistic eye open to the future.
An ICO provides a chance to accumulate funds required for launching a business. Investors get startup’s tokens in return, which could be later traded once the business grows. These initial fundings usually operate with Bitcoin or Ethereum, which are currently regarded as the leading cryptocurrencies.
Just like any other industry, ICOs also have pros and cons. For example, unlike traditional initial public offerings, ICOs are not subject to as much regulatory scrutiny. Depending on the country they are registered in, ICOs could raise a significant amount of capital fairly quickly. Although there have been crazy success stories, there have been disastrous flops and failures as well.
Most governments and institutions are still on the fence on how to approach this new technology, although some have already made their positions clear. Meanwhile, the crypto world is bustling with activity – new ICOs are introduced every week, while old players continue to build names for themselves. In fact, in 2017 alone, almost $4 billion in funding has been raised through initial coin offerings. End-of-year numbers for 2018 are not finalized making this ICO review 2018 understandably incomplete.
The key to success lies in education. Anyone looking into getting in on some ICO action would do well to get familiar himself with the latest news and developments in the cryptocurrency arena first, as well as do some brushing up on a little bit of history. A more well-informed approach to initial coin offerings encourages smarter decisions and a heightened awareness, which only aids greatly in discerning the difference between real opportunities and scams.
In fact, a lot of resources are available today for those looking to take a deeper dive into crypto. Books and video series, blogs and websites, as well as online tutorials are all definitely worth looking into. Online communities are also a great way to connect with fellow newbies and enthusiasts from all over the world.
With that in mind, the following infographic outlines the basics of ICOs, a roundup of the crypto world thus far, and a lot more. Check it out; we’re sure you’ll enjoy reading it.
Infographic URL: https://btxchange.io/ico-roundups-infographic/
Hope you all have a fabulous Holiday Season and wonderful New Year!
The Mass Media and Cryptocoin Critics Humiliated by Their Bitcoin Bubble Balderdash.
Judging from news outlets a few days ago Bitcoin was a dead coin walking. The word bubble was bandied about in headlines with the articles themselves having the unmistakable tone of “Ha ha! Told you so!”
Take a look at this Wall Street Journal article published just four days ago: Bitcoin Wasn’t a Bubble Until it Was.
Here’s a shining example of Bitcoin bubble balderdash published in Bloomberg back on December 11th: Yep, Bitcoin Was a Bubble. And It Popped. The takeaway from this opinion piece? Bitcoin is finished. Millenials are feeling pain and will continue to suffer.
You can almost hear the evil, maniacal laughter of the writer while reading his opinion.
Now get ready to laugh at this u-turn published in Bloomberg today: It Looks Like Bitcoin Has Found a New Bottom This writer cheers the 20% gains in Bitcoin in the past week pointing out BTC is on its best run in three months. This is NOT Bitcoin bubble balderdash.
So what are all the talking heads and pundits saying about the Bitcoin bubble now? Nothing. Not a word. Nary a peep. They are suddenly silent.
That’s perfectly understandable if you stop and think about. It must be difficult to talk with egg on your face.
For years Bitcoin predictions have turned into a running joke. Some experts have predicted and, indeed, still predict Bitcoin and/or the cryptocoin flavor of the day going to the moon leading to Lambo shopping. Then we have the naysayers who sneer as they take perverse joy in joining the ranks of harbingers of doom.
Somewhere between blind blissful optimism and piss-on-your-parade pessimism is the sacred middle ground known as the truth.
The truth is that Bitcoin isn’t going anywhere. It’s not a stock or a bond. It is not a country or a company. It is not being overthrown and it is not going out of business. Nobody knows where it’s going so either you’re in the game or sitting on the sidelines. Either way, let’s ignore Bitcoin bubble balderdash.
ASIC Miners and Mining Rigs Go Dark as Crypto Markets and Cryptocoin Mining Crashes
One year ago, basements were being converted into mining farms as electricians and heating/cooling experts were brought in to upgrade electricity, install duct work and fans to power up and cool off mining farms. Reddit and Facebook groups were loaded with pictures and videos of homebrew mining rigs as the price of graphics cards skyrocketed and became scarce. Gamers complained. Retailers began limiting order quantities. Cryptocoin mining crashes? Unthinkable at the time.
Bitcoin mining was worse. ASIC mining manufacturers Bitmain and Canaan couldn’t make them fast enough. When a batch went on sale they were sold out in minutes and at top dollar. Today, Bitcoin miners are readily available with more power and efficiency than ever at a fraction of price. Nvidia is facing pain from a sudden plunge in demand too.
The after-effects of cryptocoin mining crashes.
The laws of supply and demand are in full force. With the recent crashes across all cryptocoin markets, existing mining operations are going dark and nobody is thinking about starting one or expanding.
Watch the stats on Slushpool and the story tells itself; hashpower is dropping on a daily basis as thousands of workers go dark after miners hit the OFF switch. Who can blame them? Run the numbers on any crypto mining calculator and see how much money you’ll lose mining crypto on an HOURLY basis.
We documented a cryptocurrency mining downturn back in August but could never dream that just three months later, the entire mining ecosystem would face collapse. This is worrisome for the entire cryptocurrency sector because miners keep everything moving; Bitcoin miners not only mine new Bitcoin; they process all of the transactions on the blockchain. This extends to all of the other digital currencies out there; without miners doing what they do, things can grind to a standstill.
While cryptocoin mining crashes do not bode well, it is too early for anyone to predict future market moves one way or the other.
With Fidelity announcing yesterday it would make crypto trading available to its 13,000 or so institutional investors, cryptocoin markets rejoiced. Yes indeed, Bitcoin ready for the big leagues is big news.
Named Fidelity Digital Assets, the Boston-based LLC will deliver enterprise-grade custody solutions, a cryptocurrency trading execution platform and institutional advising services 24x7in tune with blockchain’s always-on trading cycle.
With Fidelity Digital Asset clients being onboarded now with wide availability scheduled for early next year, the launch of the subsidiary with 100 employees marks quite possibly the largest foray into cryptocoins by an institutional asset manager to date.
Bitcoin climbed by as much as 10% on the news lifting from roughly $6100 back to to $6500 territory where it has been virtually stuck for a month or so. Today, Galaxy Investment Partners founder Mike Novogratz expressed confidence in more institutions adopting Bitcoin trading.
While 2018 has not panned out to be the Bitcoin panacea many of the bulls predicted, Bitcoin ready for the big leagues is welcomed news as it seems the world’s first and most valuable crypto currency is set to takes its place center stage in the big time.
It is widely believed that large investors – both retail and institutional – are sitting on the sidelines with a wait-and-see mentality. We’re happy to see Fidelity take the bull by the horns with this bold move and hope this is just the first sign of more things to come for Bitcoin between now and the end of end 1st quarter 2019.
More time is required for momentum to build to take Bitcoin prices higher, and the long-anticipated wave of institutional investors piling into the cryptocurrency space is seen as starting next year. Whatever happens next and when, Bitcoin ready for the big leagues is something you can be sure of.
The Canaan Avalon A9 IS The Future of Bitcoin Mining
The future of Bitcoin mining comes in the form of the Canaan Avalon A9; Up to 30 TH/s at approximately 1700 watts. When delivered, Canaan will have made every Bitcoin miner’s dream come true while changing the entire paradigm of Bitcoin mining itself.
The future of Bitcoin mining lies in the new A3207 chips based on 7nm technology. Long story short; more chips running much more efficiently consuming far less power. Home-based Bitcoin miners – me included – with power efficiency to make older Avalon miners consuming 1200-1400 watts churn out 8-16 TH/S. For home-based Bitcoin miners and the giants in Bitcoin mining will need recalculate everything now.
The Canaan Avalon A9 is that big of a game changer in determining the future of Bitcoin mining.
Over the years, Canaan has maintained a standard design for their miners (the 721, 741, 821, 841, etc.) and we can only assume the new Canaan Avalon A9 while follow along the same lines. While pricing of the new A9 has yet to be determined, current Bitcoin pricing and other market forces have pushed the price of a single Canaan 841 miner down to as low as $449 – a price unheard of one year ago for a Bitcoin of such performance.
A key factor in determining the future of Bitcoin mining consists of determining the pricing of the new A9. Previously we speculated on future pricing of new Bitcoin mining products but have found such forecasts as useless as trying to predict the future price of Bitcoin itself.
What’s clear is that proposed performance of the Canaan A9 will assuage global concern for Bitcoin mining power consumption. In terms of “bang for the buck” is concerned, the 30 TH/s output of a Canaan Avalon A9 points to the future of Bitcoin mining being a very bright one.