Darryn Pollock

Bitcoin Cash’s Breakup a Bitter Split for Entire Crypto Ecosystem

The highly publicised hard fork of Bitcoin Cash was not only an ugly divorce, but a ‘disservice’ to the industry, says Barry Silbert
Bitcoin Cash’s Breakup a Bitter Split for Entire Crypto Ecosystem
Contents

While it would probably be a stretch to say that the Bitcoin Cash hard fork on November 15 caused the most recent and significant drop in the value of the entire cryptocurrency market, there are some big coincidences, especially with timing.

The fork itself built up into a real crescendo of ugliness as two important figure heads in Bitcoin Cash butted heads. Roger Ver and Craig Wright turned what should have been a routine upgrade of the Bitcoin Cash blockchain into a real philosophical fight that spilled out onto the public forum.

This has led many to criticise the actions of the two men who essentially started a hash war in order to gain superiority for their planned blockchains, and to this end, prominent cryptocurrency figures have spoken out.

Barry Silbert, the man behind crypto-centric conglomerate Digital Currency Group (DCG), has come out and called the Bitcoin Cash hard fork a ‘disservice to the industry’, and going beyond it being a catalyst for the price drop, he is probably right for other reasons.

A disservice

The Bitcoin Cash war is still technically ongoing, as the two chains that forked have refused to die down. Ver and his Bitcoin ABC chain have retained the name Bitcoin Cash, while Wright has formed a new cryptocurrency called Bitcoin SV.

“The fork is a distraction. The industry did itself a real disservice, but let me give you the other side of that — if Bitcoin emerges as the winner, it will have been battle-tested, as it has been challenged by competitive cryptocurrencies and internal development strife,” Silbert explained.

Looking deeper at the negative effect this battle between two large personalities has had, one can also see that the perception of the cryptocurrency space is damaged from this fracas. The fact that two men can wield so much power and influence, as well as capital, and cause such bad blood does not look good for those outside of the cryptocurrency space.

The likes of the SEC and other regulators have insinuated that there will be no future for cryptocurrencies unless they can sort out issues of market manipulation and such, and while this is not market manipulation, it is still too fast and loose for most regulators to accept and agree with.

More to it

Silbert, although not a fan of the BCH fork, is not tying it totally to the reason for the latest drop in the value of the cryptocurrency market. Instead, the DCG chief believes that the unraveling ICO market, as well as the fall in stocks, is correlated to the fall.

The ICO market no doubt was one of the major reasons for the explosion in the price of Bitcoin at the back end of 2017. Now, with ICOs almost fading to nothing, it cannot be too hard to expect there to be a fall back towards the norm that was devoid of the ICO hype.

More so, Silbert has also explained that crypto’s largest investors are funds/groups with asymmetric risk appetites. These funds often hold positions in high-risk, often-tumultuous technology stocks, coupled with cryptocurrency holdings. So, seeing that lines that can be drawn between the recent sell-offs seen in equities and crypto, it is apparent that the macro market has been proding Bitcoin investors.

views
👓 Recommended articles
Darryn Pollock

RBI’s Crypto Ban Upheld Leaving Indians to Ponder Future of Cryptocurrency

Cryptocurrency businesses took a hit when the Indian courts decided to uphold the RBI’s ban on crypto-dealings, so where does this leave India?
RBI’s Crypto Ban Upheld Leaving Indians to Ponder Future of Cryptocurrency
Contents

The news out of India recently was disconcerting for many in the cryptocurrency industry as the application to the Supreme Court to try and halt a circular put out by the Reserve Bank of India failed.

The Court refused to stay the RBI’s decision to essentially blockade all businesses operating with around cryptocurrencies. This means that the deadline for ending business with cryptocurrency will elapse, on July 5.

It means rough roads ahead for the cryptocurrency industry in India, which was burgeoning, however, there is still some sort of light at the end of the tunnel as reports suggest the RBI is looking at creating its own cryptocurrency.

Working around it

Indian businesses that operate in the country are now in a real quandary as there are no technical regulations stopping the use of cryptocurrencies, rather the Reserve Banks has decided to make their operating much, much harder.

Already, in anticipation of the outcome of the court hearing, some exchanges had changed their tact in order to remain compliant with the RBI’s memo. Exchanges starter operating as an escrow account in a peer-to-peer trading platform, rather than the normal exchange business model.

Wasted potential

The upholding of the RBI’s decision will have a major role to play in blunting the India cryptocurrency space as it was already seen that when the pressure began, companies already started to fold.

Back in March, two Indian cryptocurrency exchanges shut their doors citing regulatory fears for the reason. It is now up to those who remain to either keep fighting or to crumble under the heavy pressure.

The move has been roundly criticised by not only the Indian cryptocurrency community but by as influential figures as Tim Draper. It will be interesting to thus see how the next few months pans out for India, especially for those who were working and using the space, including a majority of women.

views
👓 Recommended articles
Vera Thornpike

5 Reasons To Stay Away From Cryptocurrency Investing

Why you should keep away from cryptocurrency investments?
5 Reasons To Stay Away From Cryptocurrency Investing
Contents

Want to jump in the bandwagon to join the rows of crypto investors? Remember that it’s not all gold that glitters. What you should consider while chasing big bucks, and why investing in cryptocurrency can be a bad idea?

After bursting into the market at the beginning of 2017, cryptocurrency has soared in value from $17.7 billion to nearly $600 billion. It’s the world record for any asset class in the history. Bitcoin only has reached the market cap of $118 bln, it is set to rock the boat of the traditional economy. However, not all people are equally enthusiastic about it with some reckoning that Bitcoin is nothing but a scam and investing in cryptocurrencies is a bad idea.

Is there a grain of truth in such an assertion? Why not invest in cryptocurrency? Let’s consider a few facts before you start investing heavily in cryptocurrencies.

💼 Related Article
5 Reasons Why You Should Invest in Cryptocurrency
🔥 Hot
2 months 1 week
256
5 Reasons Why You Should Invest in Cryptocurrency

1. It’s a bubble that can burst any moment

Why Bitcoin is a bad idea? First and foremost, it is and will always be a strictly virtual currency. It bubbled out of nowhere and, let’s be point blank, does not have any real value, fluctuating in price every day. The hype around it is the only pillar sustaining its existence and popularity. For this reason, opponents call it the greatest pump-and-dump scheme in the history of the world economy. Yes, developers cast their creation in the best light, but there’s always a possibility that this huge bubble can explode one day, and the financial loss of investors will come to quite a sum.

There is no warranty crypto coins will last forever

2. Little do we know about the nature of crypto

Even if you have bags of cash to spare, do not invest in cryptocurrency without understanding how it works — it’s at the very least unwise. According to the survey performed by Cobinhood service platform, only 56 percent of Americans know what cryptocurrency is, 80 percent of them cannot answer the question “How do you invest in cryptocurrency?” The rest of the world is in the dark about crypto, but there’s still an army of crypto investors caught up in the spiral of greed.

"Never invest in a business you cannot understand." — Warren Buffett

If you have no idea how trading and investing in fiat assets works, you shouldn’t start with altcoins — it’s even more complicated and less predictable. The price of crypto depends on a myriad of factors (overall supply, technological advancements, marketing campaigns, integration of crypto in apps, etc.) — all of them should be considered. Educate yourself on crypto and financial topics before finding a cryptocurrency worth investing.

3. Crypto is slow and vulnerable

Overall security and performance of Bitcoin Blockchain leave a lot to be desired. While Visa processes 38,000 transactions per second, Bitcoin Blockchain’s throughput capability is much, much lower: it works at the speed of 5 TPS, and it takes an hour for a transaction to be processed fully. Other current performance issues include:

  • Proof-of-work is outdated compared to other protocols.

  • Not all cryptocurrencies are equally transparent and decentralized.

  • The vast majority of altcoins are hard to cash out.

  • Lack of scalability.

To top it off, the Blockchain at its current stage has a lot of security breaches and is prone to hacking. Stealing a huge sum from a crypto wallet is simpler than from a bank account — crypto is the part of the digital world that’s not regulated by law. It goes without mentioning irreversibility of transactions: sending money to another person by mistake is a one-click affair. You won’t be able to return the coins.

TPS comparison

4. Crypto trading is dominated by panic sellers

The vast majority of investing takes place on decentralized exchanges where institutional investors are hardly present. Therefore, the value of coins and force of cryptocurrency trading is in hands of retail investors who are prisoners of their emotions compared to cold-blooded Wall Street professionals. Because of that cryptocurrencies take a hit, and making short-term predictions is impossible. How to invest in cryptocurrencies when they’re so volatile? Your profit can be simply the matter of chance and luck. Probably, that’s how many crypto investors managed to make fortune at the end of 2017. There’s no guarantee that such burst will happen ever again.

Typical behavior of panic sellers

Is it worth investing in cryptocurrency when you know that it’s going to grow in value? If you’re a panic-monger, stay away from trading. Especially, if you invest money that you cannot afford to lose. Even the best crypto to invest can go up and down several times a day. As soon as you see the price dropping, you might think investing was a wrong decision and get rid of coins right before their cost starts soaring. Crypto trading isn’t the place for emotional people — you should have enormous patience coupled with a calculating mind.

5. Beware of scam ICOs

The last but not the least is the fact that Bitcoin has provided fertile ground for the new type of financial frauds called “ICO”. Getting money from people on their own accord has never been as easy as today. New companies are popping up around, each with its own token, but all teams have a pretty huge soft cap and hard cap — sums raised reach several million dollars. There is no guarantee that the team will allocate assets the way it’s written in the white paper. Unfortunately, some just disappear with the contributed money.

Only eight percent of ICOs end up on exchange markets. The rest don’t live up to the hype:

Only a few ICOs play fairly

The article from Motley Fool cryptocurrency and investment website explains why cryptocurrency is bad:

“Securities and Exchange Commission (SEC) has flat-out warned investors that its hands are tied, and there’s little that it can do should fraud occur. Since a number of digital currency transactions are designed to be anonymous, recovering your investment may not be possible.”

Bottom line

Is Bitcoin a good or bad investment? It’s no surprise that cryptocurrency holds no appeal for owners of brick-and-mortar businesses: it’s a risky investment, and there is still no definitive evidence that it is established on the market forever. The gap between the real and the digital worlds is still too huge, and most people rely on cash which at least won’t devalue in a day.

Before following investing in cryptocurrency 2018 trend, you should think twice and evaluate your own possibilities. Crypto is unstable, volatile, and not even real — without thorough analysis and cold-minded approach, you won’t make a profit out of it. Why invest in cryptocurrency when there are so many alternative ways of spending extra bucks?

Learn More

views
👓 Recommended articles
Thomas Hughes

Ethereum Aids Banks, Helping Them Do Their Jobs

BBVA bank has recently used Ethereum’s blockchain to send a $150 million loan to Red Electrica, the company that operates Spain’s electricity grid
Ethereum Aids Banks, Helping Them Do Their Jobs

Spain’s second-largest bank BBVA recently used Ethereum’s blockchain to send a $150 million loan to Red Electrica, the company that operates Spain’s electricity grid. This was a syndicated loan, shared between BBVA, Japan’s MUFG, and France’s BNP Paribas.

The information was timestamped, and the signed contract was then recorded on Ethereum’s blockchain. According to BBVA, the whole loaning process took a couple of days, but using the old methods, it would take about two weeks.

Charts at a Glance

image

ETH/USD seems largely unfazed by the fact that Ethereum played a big logistic role in the huge loan, and the pair has been slowly drifting south, posting a -1.40% drop during the last 24 hours.

Currently, the bears are in control and 205 support — as well as the bullish trend line — seems in jeopardy. However, these two technical elements are in the very close vicinity of one another, and this creates a confluence zone that will be harder to break. The danger is that if the pair moves below 205, the move will show increased bearish pressure and will make 200 – 198 the next target.

A move above the bearish trend line would show that support is still very strong and would open the door for a move into 220 – 223 area over the next days or even weeks.

Support zone: 205 and the bullish trend line

Resistance zone: bearish trend line

Most likely scenario: extended move in the direction of the first break (either bullish or bearish trend lines)

Alternative scenario: choppy movement near 205

views
👓 Recommended articles
Patrick Thompson

First Real World Transaction Over Bitcoin Lightning Network

The first real-world transaction has been made on the lightning network.
First Real World Transaction Over Bitcoin Lightning Network

 

Laszlo Hanyecz has purchased another pizza using Bitcoin and this time he didn’t pay 10,000 BTC. On Sunday, Feb. 25th, at 1:29:59 UTC 2018, Laszlo created a post “ Pizza for (lightning) Bitcoins” on linux foundation saying he wanted to make a real-world trade over the lightning network. Once again, Laszlo was interested in buying pizza with Bitcoin. Since no pizza places in Laszlo’s area (Jacksonville, Florida) accept Bitcoin payments over the Lightning network (yet), Laszlo arranged for a friend in London to act as the middle in the transaction. Laszlo’s friend would pay for the pizza on Lazlo’s behalf, and then receive compensation for the pizza over the lightning network from Laszlo.  

Laszlo’s friend agreed that he would order the pizza to be delivered to Laszlo’s house, that he would give the preimage to the delivery man, and that once the pizza arrived, Laszlo would show the first and last four digits of the preimage number as proof that he had actually paid for the pizza. If Laszlo was not able to provide the first and last four digits of the preimage, the pizza was to be destroyed. The preimage is proof of payment for a transaction on the Lightning network. It would not be possible for Laszlo to have the preimage unless he actually paid his friend for the pizza.

Laszlo opened a payment channel between him and his friend and funded it with a sufficient amount of Bitcoin to buy two pizzas. Laszlo’s friend sent Laszlo a bolt #11 invoice. A bolt #11 is the invoice protocol for payments on the lightning network. Once the pizza arrived, the delivery man asked Laszlo what the preimage was. At this point, Laszlo paid the invoice, received the 64 character hex string preimage, and wrote down the first and last four numbers of the preimage. When Laszlo presented the notepad with the preimage number “7241-a8c1” to the delivery man, the delivery man compared it to his own note and handed over the two pizzas. Another successful Bitcoin pizza transaction under Laszlo’s belt.

Why did Laszlo, pay for two pizza’s over the Lightning network? No particular reason. In his linuxfoundation post Laszlo says:

So is there any point to doing this instead of an on chain transaction? For what I described here, probably not. The goal was just to play around with c-lightning and do something more than shuffling a few satoshi back and forth. Maybe eventually pizza shops will have their own lightning nodes and I can open channels to them directly.

Laszlo became notorious in the crypto community for an incident that occurred on May 18, 2010. Laszlo created the post “ Pizza for Bitcoins” on the Bitcointalk forum saying he was willing to pay 10,000 Bitcoin for a couple of pizza’s. Laszlo said that whoever takes him up on his offer could make the pizza themselves or order the pizza for him; he would not mind either way. All Laszlo really was trying to do was get food delivered in exchange for Bitcoin.

pic

Source: https://bitcointalk.org/index.php?topic=137

A few hours after the post was created, one user commented that 10,000 BTC was quite a lot to be paying for two pizzas, 10,000 Bitcoin was worth a whopping $41 at the time.

pic

Source:https://bitcointalk.org/index.php?topic=137  

On May 22, 2010, Laszlo posted in the Bitcointalk forum saying that he had successfully traded 10,000 Bitcoin with user Jerco (in real life Jeremy Sturdivan). The very next post on the forum congratulates Laszlo for a milestone reached in the Bitcoin community. Laszlo was the first individual to transact Bitcoin for a real-world good. On May 22, 2010 Laszlo received two Papa John’s Pizzas for 10,000 Bitcoin. At the time, 10,000 Bitcoin was equal to about $40, today, 10,000 Bitcoin is equal to $94.3 mln. This historic event made May 22, Bitcoin Pizza Day, on May 22 every year, the crypto community orders pizza in honor of Laszlo’s historical transaction.

pic

Source: https://bitcointalk.org/index.php?topic=137

views
👓 Recommended articles
Wikicoin Vera Thornpike

Bitcoin Cloud Mining Profitability- Is It Worth It?

📚 Wikicoin
Does cloud BTC mining make any sense today?
Bitcoin Cloud Mining Profitability- Is It Worth It?
Contents

The times when Bitcoin could be mined with a smartphone or a simple Windows 7 PC are long gone: today, the computations are so complicated you need a juggernaut machine to earn the coins. Even if you join mining pools, obtaining Bitcoins will still be challenging. In most cases, miners have to deal with heat, incredibly high electricity bills, maintenance problems, and lack of space. The sad truth is that they can hardly earn a Satoshi, and all investments go in vain. What to do? That’s where cloud mining rolls in. This is a great alternative to the mining elbow grease that can still be profitable. Let’s find out whether cloud mining worth it.

What is cloud mining?

If you already know what mining is, cloud mining is not rocket science. The only difference between traditional and cloud mining is the fact that in the second case you lease mining facilities from providers. Instead of buying and installing mining rigs, paying for tremendous electricity bills and trying to find ways to cool your room down, you just trust it all to the service provider. Rent a server, and the rest will be done for you.

What is cloud mining?

Should I try cloud mining?

Cloud mining would be suitable for:

  • Beginners who don’t know how to build and maintain a mining rig.

  • Those with energy a bit on the tight side (when it’s not supplied 24/7 or is too expensive).

  • A user who doesn’t want to deal with mining rigs or mining solo.

  • Miners who want to make the minimal investment and are ready to wait 6-24 months to get a normal reward.

How does it work?

Let’s put it simply. First, you order a mining package that suits your needs and budget best. The offers differ by:

  1. Price.

  2. Duration of contract.

  3. Hashrate (that’s the most critical points).

  4. Fee percent.

As soon as you pay for the service, you get access to the server and may check how it mines Bitcoin. Aside from the package cost, you also have to pay a certain fee of what you’ve earned. The Bitcoins you get will be sent to your wallet.

How cloud mining works

Is it worth it to mine Bitcoin?

The task seems to be simple, but is cloud mining profitable? Not always. Some people manage to get moderate earnings, while others spend money in vain. It depends on the funds you invest and the money you earn in the final result.

How to calculate the profit you may get?

First, look at the Maintenance and Electricity Fees (MEF) for every GH/s.

Secondly, check the hashrate. In order to earn Bitcoins, you need a hashrate of at least 50 GH/s.

Say, you pay $0.0045 per GH/s and mine at 10GH/s rate.

$0.0045 x 10 GH/s = $4.5 per day

The higher hashrate you use, the higher your chance to make Bitcoin cloud mining profitable. If you order the cheapest plan ($22 and 20 GH/s), most likely, you’ll stay with nothing after paying all the fees.  Considering the fact that your maintenance fees are counted in $, and BTC price is getting higher, we can say that Bitcoin cloud mining worth it when you invest at least $1,000-$1,500.

Here are the examples of average plans and prices:

BTC cloud mining tariffs

Beware of cheats

Unfortunately, not all cloud mining providers are equally fair. Here and there, you can see the reports of users who claim some websites don’t pay them rewards, while other websites simply disappear after taking users’ money. Decent websites usually cancel the service as soon as mining ceases being profitable– cheaters will continue pumping out clients’ money.

Therefore, you should work with well-established and reliable websites only. Read real user feedbacks, talk to the folks in mining forums and thematic conversations.

This video will help you to select a reliable cloud mining provider:

https://www.youtube.com/watch?v=TSEYbW43QD0

Pro tips for starters

Here are a few things you should take into consideration when choosing a cloud mining provider:

  1. When websites display income statistics, they show reward for $1,000 investment.

  2. The final income will be visible after the maintenance fee, so it won’t be shown on the website.

  3. As a rule, all contracts last for one year.

  4. Check out what is the uptime guarantee: there may always be server crashes, network disconnections, etc. But some providers deal with it quickly so that customers don’t even notice downtime.

💼 Related Article
5 Best Ethereum Cloud Mining Sites in 2018
🔥 Hot
3 months
256
5 Best Ethereum Cloud Mining Sites in 2018

If you want to learn the forecasts about cloud mining BTC profitability and find out what your revenue may be, please, note that forecasts don’t consider raising mining difficult. Therefore, be prepared to earn less in long-term than you’ve planned.

The cost of coins is volatile: you never know how much they will cost tomorrow, in a month or in a year. Therefore, you should invest only the money you can afford to lose.

Comparison of cloud mining providers

Let’s review a few popular cloud mining websites:

Website

Pros

Cons

Genesis Mining

Custom mining tariffs are available;

Multiple mining farm locations

SHA256 contracts only

Slow and useless customer support

Miningrentals.com

You can rent P2P rigs from users;

Free pool selection

High fees

Eobot.com

Great side projects;

Instant payouts

High maintenance cost;

Lack of useful features

Terabox.me

Profitable referral program;

Low Fees

Lack of info about the company;

You cannot select mining pools

Minergate.com

Great coin selection;

Transparent pricing

Withdrawal from 0.01 coins is available

Bottom line

So, is cloud mining worth it? When it comes to Bitcoin, some evidence conflicts with the assumption that it is. Minor investments like $20-$50 a year will hardly bring you any profit. However, if you order a $1,000-$1,500 plan, your chances to earn will be way higher.

Except for the case when you have bags of cash to spare on energy bills, Bitcoin cloud mining is a sensible solution. It gives you the opportunity to double or triple your investments in a year or two. Therefore, such investment is justified. Although we don’t know what will happen next, Bitcoin is promised to raise in price by 100-200 percent in the nearest future, so your cloud mining investments can be easily multiplied.

Wikicoin
views
👓 Recommended articles