Darryn Pollock

Bitcoin Gold Loses 90 Percent Hash Rate After Anti-ASIC Hard Fork

Bitcoin Gold, in an attempt to avoid ASIC mining domination, has hard forked resulting in a loss of 90 percent of their hash rate
Bitcoin Gold Loses 90 Percent Hash Rate After Anti-ASIC Hard Fork

Bitcoin Gold came into being in November last year as a way for people to mine the cryptocurrency at home on normal computers, and as such, they have been steadfast against the ASIC mining domination.

Using supposedly ASIC-resistant Equihash mining algorithm Bitcoin Gold became subject to a 51 percent attack in May this year. And also since then, it has been discovered that ASIC miners make up a large portion of the equihash rate.

So, Bitcoin Gold’s hard fork was intended to shake off the ASIC miners, and it looks as if it was a little too successful.

Down 90 percent

Looking across the hash rate of Bitcoin Gold, there is a significant and notable dip of as much as 90 percent after the fork. Now, this does not necessarily mean ASIC miners were making up 90 percent of the hash rate, but it does show that they had a big part to play.

It's reasonable to expect a drop as not all miners update, and other obstacles come up. It hasn't been long since the fork either, but the hash rate is still down and not showing signs yet of climbing.

Bitcoin Gold

Source

Buying time

Even if the hash rate was made up predominantly of ASIC miners, this move by Bitcoin Gold has achieved their end goals- that is to shake off ASIC mining. However, it is only a temporary solution.

Forks only buy about five or six months of ASIC resistance before the manufacturers catch up. And furthermore, new ASIC mining cards usually stay secret for a long time before the public becomes aware of their existence.

In the early secret phase of their existence, they're usually used by miner manufacturers themselves and sold in limited numbers to individual mining companies who pay huge amounts for a certain amount of exclusive mining time.

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Wikicoin Eric Eissler

What is Gas in Ethereum and How It Works

📚 Wikicoin
Take a deep dive into how the internal transaction system in the Ethereum Blockchain functions
What is Gas in Ethereum and How It Works

Ether Gas is what drives the Ethereum Blockchain network. It is the behind-the-scenes currency that pays for internal transactions. Essentially, it is a micro-currency because it is approximately 1/100,000 of an Ether, but it is NOT a token! You cannot buy and sell it.

Ether gas only exists inside the Ethereum Virtual Machine (EVM). Gas is an incentive for miners to prioritize transactions. All transactions, from simple transfers to ICO smart contracts, require operations to perform. Each of these operations has an associated cost paid in gas. Thus, simple transactions like transfers will require less gas to perform than more intense smart contracts.

Confused? Have some questions as to how or why this internal payment system was implemented into the Ethereum network? This article will take a deep dive into how the internal transaction system in the Ethereum Blockchain functions, and how “gas” is the fuel that drives the Ether engine.

Not your average gas market

The Ether gas payment system is its own internal market within the Ethereum Blockchain. However, unlike a traditional market pricing structure, where supply and demand set the price, the price of gas is set by the transaction itself. In this pricing system, the miner can pick and choose which transactions to mine and thus creates a market around the Ether gas price.

Similar to Bitcoin, where miners prioritize transactions with the highest mining award, the same is somewhat the same for Ether. Miners can and will disregard transactions if the Ether gas price limit is set too low and seek out the highest paying transactions.

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Built-in security: pay to play

In the not so distant past, some IT professionals were considering adding a charge to send emails, because it would greatly reduce the number of unwanted messages in your inbox. The spammers would have to pay for each email they sent. Now, with a price, sending that spam is not as appealing before.

The gas price per transaction or contract is set up to deal with the Turing Complete nature of Ethereum and its EVM (Ethereum Virtual Machine Code) – the idea being to limit infinite loops. For example, one Gas can execute a line of code or command.

If there is not enough Ether in the account to perform the transaction, then it is considered invalid. The idea behind this, like the idea to charge for sending emails, is to stop denial of service attacks from infinite loops, encourage efficiency in the code- and to make any potential spammer or hacker pay for the resources they use, from bandwidth through to CPU calculations through to storage.

Ethereum gas price list for transactions

Some computational steps cost more than others because they are either computationally expensive or because they increase the amount of data that has to be stored.

Operation name Gas Cost Function

step

1

Default amount of gas to pay for an execution cycle.

stop 

0

Nothing paid for the SUICIDE operation.

sha3 

20 

Paid for a SHA3 operation.

sload 

20 

Paid for a SLOAD operation.

sstore 

100 

Paid for a normal SSTORE operation (doubled or waived sometimes).

balance 

20 

Paid for a BALANCE operation

create 

100 

Paid for a CREATE operation

call 

20 

Paid for a CALL operation.

memory 

1

Paid for every additional word when expanding memory

txdata 

Paid for every byte of data or code for a transaction

transaction 

500 

Paid for every transaction

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Ethereum gas limit

The gas limit is the maximum number of units of gas you are willing to spend on a transaction. This avoids situations where there is an error somewhere in the contract, and you spend more and more gas but get nothing in return. It’s the same system that prevents the spammers from spamming, this saves your money on a broken contract in an infinite loop.

However, the units of gas necessary for a transaction are already defined by how much code is executed on the Blockchain. You must include enough gas to cover the computational resources you use, or your transaction will fail due to an Out of Gas Error. Not to fear, any unused gas is refunded to you at the end of a transaction.

Ethereum gas price

If you have the time, you may reduce the amount of gas that you are willing to spend on your transaction, which will slow down the transaction time but save you some gas. Here is an example of some prices and time to execute.

During normal times:

  • 40 gas will almost always get you into the next block.
  • 20 will usually get you within the next few blocks.
  • Two will usually get you within the next few minutes.


During token creation periods:

50 gas is the max gas price most new token-creation-period contracts will accept. This is because of the supply and demand of system resources at this time. It is advisable to either wait until the period is over and prices return to normal or pay the 50 gas to transact. It is up to you.

Internal costs provide better systems

Transactions on the Ethereum network require payment to transact and these costs are settled with the EVM’s internal gas, which has a market unto itself, with prices set by the transaction and not traditional supply and demand principles. This allows the Ethereum network to run more efficiently without processing unnecessary transactions, such as broken contracts, saving you money, or being overrun with spam and bots.

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📈 Pricewise Daniel Osten

Market in Free Fall: Bitcoin Drags Monero and Ripple Down, Panic Sales Hurt Litecoin

Pricewise
BTC dominance is not increasing and remains at 44.5 percent. Perhaps we are seeing a new logic in the market.
Market in Free Fall: Bitcoin Drags Monero and Ripple Down, Panic Sales Hurt Litecoin

On Monday, uncertainty was already turning into a full-fledged downtrend, and by the beginning of Tuesday bears achieved a decisive victory. For all currency pairs that we examined yesterday, decline targets were fulfilled and in some cases even overshot — fear prevailed over investor’s greed, and a wave of panic sales washed over the market, coloring almost all positions red.

Surprising exceptions to the fall

We said “almost all positions” because some altcoins are not just resisting — they are actively marching against the market. Among these are Verge (XVG), Ontology (ONT) and 0x (ZRX). All of these coins are promising, and the growth of XVG is aided by news about a mysterious partnership, but this is the first time we are seeing such a departure from correlation with the underlying asset.

BTC dominance stable as market capitalization falls. A new trend?

Overall, the market lost $30 bln over 24 hours. At the time of writing, capitalization is about $300 bln. It’s notable that as the market falls, BTC dominance is not increasing and remains at 44.5 percent. Perhaps we are seeing a new logic in the market, but a longer period of observation is needed before drawing any conclusions.

BTC/USD

On Monday, the bears didn’t have much trouble reaching $8,000, using the momentum to lower the price even further to $7,850, the boundary of the descending channel. Realizing the precariousness of their situation, buyers tried to support the asset, which led to a rebound to the level of $8,280.

BTC dominance is not increasing and remains at 44.5 percent

It seemed that the catastrophe was avoided, but another bear attack returned the price to the previous minimum, where the struggle between buyers and sellers continued. The outcome of the battle will define the market’s fate. Either we will see a reversal, with the first recovery targets being $8,450 and $8,600, or Bitcoin price will dive toward the bottom to test the lower boundary of the ascending channel and then, the $7,250 minimum of the March correction with an intermediate stop at $7,650.

LTC/USD

The behavior of Litecoin turned out to be an unpleasant surprise. During the weekend, the asset was looking very well compared to other coins, but on Monday the most negative scenario was realized — the downward break through the triangle. As a result, the price went straight down for the boundary of the ascending channel and the 0.786 Fibonacci retracement to the level of $145.

the price went straight down for the boundary of the ascending channel and the 0.786

Then, we watched the medium-term LTC investor’s nightmare unfold: after a slight rebound, the price came further down and is $140 at the time of writing, almost reaching the minimum of the March correction. If the last support at $137, which also corresponds to the boundary of the descending channel, fails to hold, Litecoin will dive for the level of $130. In case of a reversal, the former support will become a resistance and the bulls will have to attack that same level of $145 again.

XMR/USD

Monero is looking better than Litecoin, but investors will get little relief from this fact. Overall, the price is behaving predictably. The decline stopped at the level of $188, corresponding to the 0.786 Fibonacci retracement. Also, XMR retains some margin of safety, since there is another $5 before repeated testing of the descending channel’s boundary.

The decline stopped at the level of $188, corresponding to the 0.786

If the fall continues, the bears’ next target will be $180, and then the price will meet the previous minimum at $175. For now Monero looks stronger than the market, but the situation can change at any moment, as it was with Litecoin, so it's better to refrain from trading.

XRP/USD

Today, Ripple is in the same boat with Litecoin - the outsider boat. In the course of the decline, the price was balanced for a while at $0.58 - the level of the 0.786 Fibonacci retracement. However, under tough pressure from Bitcoin, the support could not hold out. The boundary of the descending channel does not instill much confidence either - one sharp downward movement, and the last buyer stronghold will fall.

Ripple is in the same boat with Litecoin - the outsider boat

After this, XRP will experience the acceleration of free fall, because no other supports will be able to help buyers. In the end, we are likely to see the price reach the previous peak of the March correction, $0.53, and quite possibly update it.

📈 Pricewise
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Cryptotips George Shnurenko

Cryptocurrency Cloud Mining vs Hardware Mining- Which is More Profitable?

💡 Cryptotips
The battle of cloud mining vs hardware appears to be in favor of good old hardware mining
Cryptocurrency Cloud Mining vs Hardware Mining- Which is More Profitable?

Bitcoin, Ethereum, Litecoin, and other less popular altcoins are now generating an immense level of buzz among crypto enthusiasts and this has caused the adoption of different cryptocurrencies to surge. Although the concept of mining coins is very appealing, there’s often the debate about which offers more profitability, cloud mining or hardware mining?

To really drive the point home, let’s understand what mining is all about.

What is cryptocurrency mining?

Before a cryptocurrency transaction can be carried out, it must be verified on the Blockchain network.

The process of validating the transaction on this network is known as mining and those in charge of the operation are referred to as miners.

As easy as this process sounds, it is a lot of work. In order to mine, a software which is able to compute cryptographic algorithms is required and to complete this, an enormous amount of computing capacity is needed. At the inception, mining was done on personal computers, but now, individual computers do not suffice.

And this is one of the drawbacks of hardware mining. It is quite expensive and almost impossible to execute individually. However, cloud mining is fraught with fewer risks and doesn’t require an exorbitant amount to start up.

Since the issue of money appears to be a pressing one. Let’s consider the cost of starting up cloud mining vs hardware mining.

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Cost of hardware mining

Hardware mining requires a significant initial investment. Some of the factors which influence the cost of mining are discussed below.

  1. Mining Rigs

  2. The hash rate of the Blockchain network

  3. The cryptocurrency being mined

  4. The cost of electricity

  5. The cost of cooling

  6. The physical space

The list goes on and on. Also, depending on how powerful you want your mining operation to be, the cost can go up significantly. Do you require an ASIC mining rig? One thing you’ll need to consider is that these cannot be repurposed. The implication is that if the cryptocurrency you mine decides to alter its hash algorithm, that signals the end of the mining rig.

In addition to this, most people start out with multiple mining rigs so as to justify the revenue they generate at the end of the day. You also need to consider the electricity cost where you stay and how much it’ll cost to cool your equipment.

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Cost of cloud mining vs hardware mining

In comparison to hardware mining, cloud mining appears to be simpler to compute. Some of the most popular cloud mining services, Genesis Mining and HashFlare, offer a monthly subscription model for users to purchase. This model is computed based on the cryptocurrency you intend mining and the hash rate of the network.

Cloud mining gained popularity simply because of the obvious limitations of hardware mining- only very few people can afford large data centers.

This new model then allows individuals to invest and purchase a part of a company’s mining power. Then, cryptocurrency is being mined without the issue of electricity bill, storage space or cooling equipment.

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ROI for cloud mining vs hardware mining Ethereum

The battle of cloud mining vs hardware appears to be in favor of good old hardware mining and the reason for this conclusion will be delineated shortly.

We gathered sufficient information from reviews, several online ROI calculators, and cryptocurrency fora and we were able to come up with a definitive approach to assessing the ROI of cloud mining vs hardware mining.

It was discovered that ideally, after 10 to 15 months of constant mining, a miner who deals in hardware mining should recover a significant portion of the amount invested and should move on to the profit-making period.

Considering the fact that there are areas where electricity costs are low and the weather is halcyon, the time it takes to recoup investment might be about six to eight months. One thing to note is that cloud mining vs hardware mining offers two different sides to the story.

While hardware mining is initial investment heavy, cloud mining is all about recurring expenditure. The cost of purchasing a two-year contract for cloud mining ETH is about $1,520 at 40MH/s while it is as high as $12,960 at 360MH/s.

The time it takes to break even was recently calculated to be almost 11 years for BTC. Genesis Mining for ETH even demonstrated a worse ROI. It was estimated that it’ll take approximately 25,992 days for an average person to break even.

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Advantages of cloud mining

In view of the seemingly unfavorable time it takes for the operation to become profitable, what are the positives we can draw from cloud mining?

  1. You can begin mining with very little knowledge about the Blockchain technology

  2. It is possible to start mining immediately you decide to. There’s no delay associated with purchasing the hardware or shipping cost.

  3. There’s no decrease in hash rate with time. This also means that environmental factors do not cause a decline in efficiency.

  4. The pool management system is automatic and doesn’t take up your time

  5. Cloud mining incurs very little additional maintenance cost. It only requires you to purchase a subscription model and stick to it.

  6. You can get a daily automatic payout if you desire.

  7. It’s easier to expand your mining operation by increasing your subscription model. This is unlike hardware mining where you are required to discard your old equipment and then purchase new ones

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Advantages of hardware mining

  1. Requires significant initial cost but eliminates recurrent expenditure

  2. There’s no way to fall victim to numerous cloud mining scams

  3. It is believed to be more lucrative.

Conclusion

Hardware mining vs cloud mining 2018 is one of the most talked about topics. This is a topic where experts and cryptoanalysts take different sides, arguing about the cloud mining vs hardware mining profitability. Whichever technology you decide to employ, you’ll need to devote significant time and effort to carry out more research.

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Darryn Pollock

Bitcoin Price Back Up 50 Percent While Traditional Stocks Continue to Slump

Bitcoin proves its worth in rebounding by 50 percent while traditional stocks have struggled.
Bitcoin Price Back Up 50 Percent While Traditional Stocks Continue to Slump

Bitcoin shook off its volatility stage in the past week as it managed to rebound as much as 50 percent. This was made even more noticeable and dramatic in the wake of another poor week for the stock market which continued its own volatile downward run.

Bitcoin plummeted to a four-month low, reaching below $6,000 on some exchanges last week. However, in the past six days, there has been a steady increase in its price that saw it back over $9,000 for a short time.

At the same time, the S&P 500 Index and the Dow Jones Industrial Average both fell more than five percent eliminating any of the previous gains that were so heralded in the US.

US Equities outshine Bitcoin’s volatility

While last Monday there were signs of a correlation between the plummeting stock market and Bitcoin price, supporters of the digital currency have now thrown those shackles off. The talk is how in situations of global financial turmoil, Bitcoin remains steady.

By its decentralized nature, supporters are proclaiming that it is unrelated to any turmoil tied to central banking, state upheaval or private companies’ woes.

Since restarting its climb above $6,000 Bitcoin has seen volatility measures on the digital currency steady, but on the stock market, the mass sell off triggered the biggest jump on the Chicago Board Options Exchange Volatility Index ever.

Reasons for the rebound

The primary catalyst for Bitcoin’s turnaround must be attributed to the “do not harm” approach that was laid out in Senate where US Regulators provided a positive path for the digital currency.

It also comes at a time where the negative press and often misinterpreted and fake news, coming from places like India, China and South Korea, has stopped.

 

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Darryn Pollock

Cash Apps Cashing in on Cryptocurrency: Good For All

Cash Apps are starting to venture into cryptocurrencies and it could be a game changer for both the apps and the digital currency space
Cash Apps Cashing in on Cryptocurrency: Good For All

So-called ‘Cash Apps’ such as Venmo, have filed an important niche in today’s society, making the transfer of money simple and easy for a new generation who operate mostly from smartphones. However, there is already an overhauling happening as some of these apps build in cryptocurrency support.

In the news, Square Cash app, which is headed up by Twitter CEO Jack Dorsey, has overtaken the popular Veneno in popularity, and while it is hard to pin that all on the fact that Square integrated crypto, it could be playing a part.  

A new era

Square has always been aligned to Bitcoin especially seeing as Dorsey has praised the digital currency as the future of finance. But it is not the only one that has moved into the space. Others include Circle, and Robinhood, and even within this space, these apps are in hot competition to provide the best crypto service for ordinary users.

Robinhood has added new coins recently, as well as began with zero fee trading, all in order to grow their user base, but now it seems that the option of crypto is boosting the cash app market.

According to data from Sensor Tower and Nomura Instinet, Square’s App has been downloaded 33.5 mln times, while Venmo has been downloaded 32.9 mln times. This move is a result of Square staggering growth rate at nearly three times faster than Venmo.

Good for crypto

The popularity of Cash Apps that are integrated with crypto says a lot about the space currently. Digital currencies, especially Bitcoin, have been evolving over their few years of existence. Bitcoin was always seen as digital currency, but its recent growth and rise in popularity has made it more valuable as a store of value.

However, there are other options out there that are suited for use as a currency, such as Litecoin and Bitcoin Cash, and as these Cash Apps grow, they are delving into this alternative currencies, testing the markets and the popularity of using such coins as cash.

However, regardless of which coin is better, or which apps are best, the truth of the matter is that there is clearly interested in using crypto simply in the form of an app. For those in the know, Bitcoin and other cryptocurrencies can be easily sent, spent, and received with the use of exchanges and wallets, but for the general man on the street, other options are needed.

Much like Wall Street is awaiting a Bitcoin ETF in order to break into a hitherto unknown market, the option of spending cryptocurrency as easily as cash on an app is far more appealing and can aid in the mainstream adoption.

Putting the cash back into cryptocurrencies

Cryptocurrencies will continue to evolve and change direction, but there is little doubting that their ultimate goal, down the line, should be as a means of exchange. These boosts in popularity for mainstream users as cash will help sculpt the ecosystem and make sure that their use as the currency continues.

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