Tag Archives: digital currencies

Mastering Bitcoin: A Beginner’s Guide To Start Making Money With Bitcoin # 1 in mining on Amazon for Audio

Bitcoin is a cryptocurrency and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009.

The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency.

Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.


The Bitcoin Cash vs Bitcoin Battle Is Heating Up—And That’s a Good Thing

I am utterly fascinated by the recent, furious emergence of “Bitcoin Cash.”

For the unfamiliar, it’s a so-called fork of the original Bitcoin cryptocurrency that launched earlier this week and sent crypto-investors into a tizzy, trading the virtual coins up to hundreds of dollars each. At the time of this writing, one unit of Bitcoin Cash is valued at about $425—an impressive sum for something that’s existed for all of two and a half days.


Like a world religion, Bitcoin Cash was created from conflict—a rift in the original Bitcoin community over technical details pertaining to the structure of the digital currency’s underlying technology, the blockchain. And like a religion, the Bitcoin Cash splinter faction was immediately rejected by the establishment—in this case by Coinbase, the largest Bitcoin exchange on the planet.

You can almost picture a Bitcoin Cash enthusiast—call him Martin Luther—posting his 95-point screed to a cryptocurrency message board. “Out of love for the truth and from desire to profit from it!” he writes with zeal, punctuating the sentiment with a GIF of Aziz Ansari as the Parks and Recreation character Tom Haverford making it rain.

Bitcoin Cash’s emergence hasn’t eroded support for the original Bitcoin. Indeed, one Bitcoin is worth about $2,760 at the moment, more than its value a week and a month ago. Investors and technologists alike sense opportunity in the schism. (Look no further than the Chicago Board Options Exchange, which plans to launch its own bitcoin derivatives trading products next year, and the rabid interest in initial coin offerings, or ICOs.) Cryptocurrency, long the domain of hustlers and dealers, is growing into a legitimate enterprise. The original Bitcoin, launched in 2009, was merely the first chapter.

To which digital currency denomination will you be faithful? For me, it’s still far too early to tell—but I’ve never been an early adopter of technology. A reformation is clearly underway in the crypto-community. Which doctrine(s) win out, well, that’s up to you to decide.



Bitcoin Jumps After First Solution to Major Ideological Divide

Bitcoin reversed steep losses as miners began using new software which aims to bridge an ideological gap that has threatened to divide the cryptocurrency.

Bitcoin’s community has been at bitter odds for more than two years about how to solve its scaling problem, which has hampered the cryptocurrency’s growth and allowed rivals like ethereum to steal some of the spotlight.

The new software, known as SegWit2x, is seen as a compromise for the two sides of the debate: miners who deploy costly computers to verify transactions and act as the backbone of the blockchain, and developers known as Core who uphold bitcoin’s bug-free software. While both sides have incentives to reach a consensus, bitcoin’s lack of central authority has made reaching agreement difficult.

The price of bitcoin rose to as high as $2,356 before trading at $2,348 as of 2:22 p.m. in New York. The digital currency slumped to as low as $1,758 over the weekend on Coinbase’s exchange. Bitcoin, which has more than doubled this year, climbed to just shy of $3,000 on June 12.

SegWit2x was formally released over the weekend and has already gained adoption by large miners Antpool, BTCC and Bixin. About 55 percent of blocks mined in the last 24 hours were done with SegWit2x, according to coin.dance, which monitors blockchain activity.

If support reaches 80 percent and maintains that threshold from more than two days, it will move bitcoin closer to avoiding a split.

“Traders are excited by the prospect of a resolution to the scaling debate, which is why the price has rallied,” said Thomas Glucksmann, head of marketing at Hong Kong-based bitcoin exchange Gatecoin.

Read more about bitcoin’s civil war.

Despite the progress with SegWit2x, some warned that bitcoin isn’t out of the woods yet. Many Core members still vehemently oppose the software, which they say hasn’t been properly vetted for bugs. Also, not all miners support SegWit2x, which they say is a flawed compromise that doesn’t solve the root scaling problem.



Digital Currencies (Such as Bitcoin and Ethereum) Deciphered

I’ve approached digital currencies with the mantra, “If you can’t explain something simply, you don’t understand it well enough.” I’m not a programmer and my tech language fluency is minimal. I’ve studied markets, trends, and bubbles though, which gives me a healthy dose of skepticism.

Over the time it’s taken me to decipher the subject, I’ve been frustrated by most crypto-currency explanations. So here I’ll describe them from an outside journalistic perspective, not as an inside expert.

Many people with deep knowledge like to flex the complexities and nuances of what they know as a kind of proof or verification. The problem I have with this is sometimes these jargon-laden explanations come across like sub-prime mortgage gibberish—esoteric knowledge accessible to the initiated, potentially veiling a crazed bubble people think they understand, but really don’t.

So here’s how I start to think about it: what is the difference between a USB cable and a FireWire cable? A digital engineer might be passionate about the hardware and structural differences, but to most everyday people they are just cables. One transfers data faster than the other.

This helped me begin to think about the difference between the blockchain and the cloud. Note there is no cloud, it’s all servers.

Blockchain is a particular type of server that runs according to a particular code so that information is processed and stored in multiple places at the same time. The result is the information cannot be counterfeited. This makes e-currency effortless to transact because the money can be secure without the need to trust a third party middleman like a government or bank.

Software engineer Eric Schmidt, Executive Chairman of Alphabet said, “Bitcoin is a remarkable cryptographic achievement [because] the ability to create something which is not duplicable in the digital world has enormous value.”

Writers like Neal Stephenson predicted the emergence of digital currencies as early as the ’90s. In fact, when Elon Musk and Peter Thiel founded Paypal, their original intent was to create a digital currency, but they were ahead of their time.

There are many different digital currencies that rely on different blockchains—database servers—and blockchain technologies. The two crypto-currencies considered to be the most reliable are Bitcoin and Ethereum. Ethereum is supported by the reputable online wallet Coinbase.

What’s interesting about digital currencies, for example with Bitcoin, is that it is run by a code which dictates the maximum amount of Bitcoins that can ever exist. We haven’t reached the maximum yet, by the way. People mine for Bitcoins by contributing hardware to the global blockchain. Once all the Bitcoins have been mined there will be a finite amount.

It’s this finite limitation of Bitcoin that will enable it to be something like a gold standard.

The double value is that these blockchains can also serve functional purposes besides hosting digital currencies. So owning digital currency is kind of like owning stock in a company.

In our digital world, with its infrastructure that seems to be infinitely hackable, different blockchains will use their software for different purposes as more companies and services adopt blockchains for dynamic databases. Simultaneously, an impending severe economic crisis might propel people’s transition of faith from traditional bank backed currencies to pragmatic digital currencies for our new global civilization.