Wikicoin Alex Morris

Unconfirmed Bitcoin Transactions: Why They Happen, and What You Can Do About Them

📚 Wikicoin
Baffled by an unconfirmed Bitcoin transaction? Learn what unconfirmed Bitcoin transactions are and how unconfirmed Bitcoin transactions can be dealt with
Unconfirmed Bitcoin Transactions: Why They Happen, and What You Can Do About Them
Contents

200k unconfirmed transactions

The issue of unconfirmed transactions came to a head in December 2017 during the peak of the cryptocurrency craze. Due to the double whammy of overloaded exchanges and constant DDoS attacks, a whopping number of 200,000 Bitcoin transactions remained unconfirmed for over a day.
image
Notably, the Ethereum network had similar problems after CryptoKitties caused havoc with its Mempool. Although, as it later turned out, this was an extremely frontloaded success, and the killer dApp is yet to appear on the horizon.

A more recent example of a rapid increase in the level of network congestion was related to the Bithumb hack in June. Most probably, the delays and the increased fees were connected to the South Korea-based exchange cleaning out its wallets.    

The reasons behind ‘stuck’ transactions

Bitcoin is a cryptocurrency that is based on the Proof-of-Work (PoW) algorithm. All Bitcoin transactions are conducted with the help of cryptocurrency mining.

Once you press that ‘Send’ button in any wallet application, the transaction is going to a memory pool (or simply ‘mempool’ before being recorded on a public ledger — only miners are capable of doing this).   

However, for a given payment to be processed successfully, it has to be confirmed by a miner who gets a block reward for each confirmation. One block represents a set of data pertaining to transactions that are cherry-picked by miners (or ‘nodes’). Until confirmed, it remains in the mempool.

Here’s the catch — blocks contain only a limited number of transactions. The transaction throughput of the Bitcoin network remains one of the most controversial issues in the crypto space, and that was one of the main reason why ‘Bitcoin Jesus’ Roger Ver eventually jumped ship and became an ardent proponent of Bitcoin Cash. Earlier, Ver claimed that those who called for an increased blocksize simply didn’t have a say in the Bitcoin community. Ethereum, on the other hand, had this issue resolved by adjusting the blocksize to the network volume. That is why the Ethereum network was able to handle a three-times-bigger transaction volume back in February.    

As of now, the blocksize is limited to 1 MB (this limit was introduced by none other than Satoshi Nakamoto).
image
However, there was also a place for an anomaly in the form of a 2 MB block.

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Helping you understand mempool

As mentioned above, mempool is a shortening which stands for a ‘memory pool’. Long story short, this is the place where all unconfirmed transactions remain in limbo. The pool unites all the computers that are connected to the Bitcoin Network with the help of Bitcoin mining software. All payments that are yet to be confirmed are stored in the RAM of a given device. If the mempool size is inching closer to occupying the whole RAM capacity, the node is able to automatically discard all pending requests with lower fees.

It is worth pointing out that the mempool is not a queue — different nodes have their own set of transactions that to be confirmed, and they are clearly incentivized to pick transactions that have the highest mining fees.     

The more popular BTC gets, the bigger is the size of the mempool. Subsequently, it drives the fees through the roof since it’s getting increasingly difficult for miners to handle everything.

Would a better hardware make a difference? No. The modus operandi of the Bitcoin network presupposes that each block is mined every ten minutes (or nearly so), and the same timeframe would remain in place even if every miner had a chance to be equipped with super powerful hardware.

In order to get all the insights into the current state of the mempool, one simply has to visit the website of a German software engineer Jochen Hoenicke: it displays all current Bitcoin fees along with the current mempool size.
image
The most obvious way to get to the top of the mempool and get your money transfer confirmed is to pay a higher fee. During the Bitcoin boom in December, some users would have to pay a jaw-dropping 40 percent fee in order to send a single payment. This sparked a huge debate in the Bitcoin community, with some miners popping bottles of champagne (their revenue skyrocketed along with the fees), but others were deeply concerned that high fees may take a toll on Bitcoin’s acceptance in retail or online stores.   

  1. Compressing multiple payments in a single transaction (thus reducing their size)

  2. Do not send your payments during the time of day when the Bitcoin network usually experiences the highest level of congestion

  3. Join the Roger Ver crowd, and switch to any other altcoin. Litcoin, Bitcoin Cash, and other top 10 entire have faster payments and lower fees, but there is a roadblock in the form of poor merchant adoption

On the right, you can see the delay in minutes that shows how long you have to wait to get your transaction processed. Subsequently, if you don’t pay any fees, your payment will take an infinite amount of time in order to be confirmed (well, let’s be honest — it will never be confirmed). If you can see the ‘Confirmed’ label, it clearly means that the transaction was processed successfully (and it becomes irreversible).    

How many confirmations do you need?

It actually depends on the size of your payment. Here’s a table which clearly illustrates that:

The size of payment

The number of confirmations  

<$1,000

One single confirmation will seal the deal

$1,000-$10,000

Such a sum of payment usually requires about three confirmations

$10,000 - $1,000,000

A transaction that is this hefty will need to be confirmed at least six times before funds are deposited to the recipient’s wallet.

> $1,000,000

Crypto bulls will have to go through a whopping number of 50-60 confirmations before getting their millions, which is fair enough.   


NB! The particular number of confirmations also depends on the exchange of your choice. For instance, Coinbase, the most popular fiat-to-crypto exchange in the world, requires three confirmations before any payment is completed.   

On top of that, there is a direct link between confirmations and the digital asset of your choice. Speaking of Coinbase, all transactions conducted in ETH, ETC, as well as recently added ZRX and USDC, need 50 confirmations.     

Dealing with transactions that remain unconfirmed: our ultimate guide  

Before taking any further steps, you have to check whether your transaction is confirmed or not. Once your Bitcoins have been successfully sent to a recipient’s wallet, a transaction ID will be generated.     

Pick any Blockchain explorer (for instance, Blockchain.info) in order to see all the relevant information pertaining to your transaction.

If your transaction remains in limbo for a prolonged period of time, there are three ways to find a way out of this predicament:

  1. Continue waiting for your confirmation (it may up to a week for your transaction to get confirmed).

  2. Alternatively, you can simply sit and wait until your transaction expires after being dropped from the mempool.

  3. Lastly, one can also replace an already existing transaction through Replace-By-Fee.    

Replace-By-Fee (RBF) is the process of creating the same transaction with a higher fee if your previous one didn’t get confirmed. Notably, Satoshi was the one who came up with this idea buy later he decided to shelve the fee replacement feature. Later, it made a comeback with Bitcoin Core 0.12+.

Still, this practice gets constantly slammed by the BTC community due to the fact that allegedly destroys trust in transactions that remain in the mempool. The thing is, one can use this feature voluntarily: the sender can easily disable it, so there is no need to be concerned about trust issues. It’s a convenient way to keep the fees at bay if you are not in a hurry to receive your crypto.

NB! Uninitiated Bitcoin users should refrain from canceling unconfirmed Bitcoin payments in such a way!

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Cancelling an unconfirmed Bitcoin transaction

One should keep in mind that all BTC transactions are irreversible (that why you should check all transaction information extra carefully). With that being said, it is impossible to cancel your Bitcoin transaction since there is no single centralized authority that presides over them.

Double spending is yet another viable option, but keep in mining that the lion’s share of cryptocurrency wallet has an inbuilt mechanism to prevent it. In fact, BTC is supposed to be the very first digital currency that has managed to solve the double spending problem. Forged money is a huge problem worldwide with $600 bln in U.S. currency being fake! The Bitcoin network prevents this with the help of cryptographic techniques. When it comes to unconfirmed transfers, however, there is a loophole for those who want to double spend. The revelation was made by Reddit user Peter Todd who proved that unconfirmed Bitcoin transactions are not safe due to some differences in mining software.    

Coinbase exchange embraces CPFP

Child-Pays-for-Parent (something that reminds of a welfare program) is actually an example of one of the solutions to the great Bitcoin scalability problem.

Even crypto behemoth Coinbase recently made an announcement about using the CPFP protocol to ‘rescue’ transactions that get stuck unconfirmed in the mempool due to fluctuating transaction fees.

CPFP allows a receiver to broadcast the same transaction but with a different fee, thus propelling low-fee transactions to the top of the mempool. At Coinbase, all stuck payments are carried out with the help of the CPFP protocol, effectively tackling one of the most debatable issues on the Bitcoin network.
image
The difference between RBF and CPFP presupposed that in the latter case miners — as the name of the protocol implies — confirm a parent transaction. Rational-thinking miners have to confirm a cheaper transaction in order to include a hefty one in their block.     

The bottom line is that RBF is a viable option for those who want to confirm their transaction faster by increasing the amount of the fee. Meanwhile, CPFP is more suitable for a sender who fails to persuade the miner to pay a transaction fee instead of him.

Things are getting better for BTC transactions

Compared to December 2017, when the number of unconfirmed Bitcoin transactions was blown out of proportion, crypto enthusiasts do not have to deal with tedious delays anymore. While the actual number of Bitcoin keeps increasing, the network itself is less clogged with the relatively low number of unconfirmed transactions. In fact, last peak on the Bitcoin network was recorded on Oct. 5 with a total of 26k pending payments hovering in the mempool (mostly due to rather low fees).    
 
Notably, the decrease in strain on the network coincided with the release of Bitcoin Core 0.17.0. However, the update is not related to the issue of unconfirmed BTC transactions despite the actual announcement mentioning certain changes pertaining to transaction handling.

One of the solutions to increasing Bitcoin’s scalability is considered to be the Lightning Network (LN). LN, launched on On 26 December 2017, has already gained widespread adoption. The modus operandi of LN consists in transferring Bitcoin off-chain, which is supposed to solve the slowness of the Bitcoin network — the transaction is conducted on a separate channel that is created by two traders.
image
The launch of LN conveniently coincided with a sharp drop in transaction fees (almost 50 percent), but there is not enough data to determine the exact effect of LN. Most likely, the aforementioned drop in fees was caused by the dramatic crypto rout that started in January. As of Nov. 18, the total capacity of LN is worth more than $1.64 bln with 4,073 nodes currently running on LN.  

SegWit (segregated witness) posed as a solution for unclogging the Bitcoin network. It’s a software fork that catered to the needs of Bitcoin enthusiasts who wanted a bigger blocksize. The technology has been already adopted by major cryptocurrency exchanges such as Coinbase and Bitfinex. Nevertheless, SegWit still accounts for only 0.1 percent of all Bitcoin transactions.

The growing support for zero confirmation

Since Bitcoin evangelists strive to achieve the mainstream adoption of the world’s most popular digital currency, there have been numerous discussions about zero confirmation. Imagine that Bob wants to buy a PS4 in a store with Bitcoin, but at the same time, he doesn’t want to wait up to 40 minutes for his transaction to be confirmed. Hence, it would be logical for retailers to adopt zero confirmation transactions and off-chain transactions to accelerate the purchasing process despite the risks of double-spending. As mentioned above, the main purpose behind confirmation is to avoid the much-feared double spending.

Meanwhile, the Bitcoin Cash community is already mulling over accepting zero confirmation BCH transactions in order to give a competitive advantage to the network. All the payments could be conducted instantaneously, and the fact that BCH has a block size of 8 MB (compared to Bitcoin’s 1 MB) makes it a perfect choice for conducting instantaneous transfers. Back in May, Bitcoin’s offspring successfully completed an upgrade, increasing the size of one block to 32 MB.

“The current path that the small blockers are taking has the wrong economic code and will likely end in failure if Bitcoin isn’t allowed to scale soon.” Roger Ver  

Speaking of further innovations, a recent Forbes article suggests that Bitcoin needs a better consensus algorithm that is superior to the current Proof-of-Work (PoW). For example, IOTA, the 12th biggest cryptocurrency by market cap, is using a Markov Chain Monte Carlo (MCMC) technique — every two transactions that have to be verified are confirmed in a random fashion. The system requires a miniscule amount of Proof-of-Work.

The bottom line

The scalability issue continues haunting Bitcoin. While the number of unconfirmed transactions remains fairly modest compared to Bitcoin’s peak, the great block size debate continues. Whether it’s the Lighting Network, SegWit, or CPFP protocol, it’s clear that this issue has to be resolved in order for the king of crypto not to cede ground to altcoins that offer much faster transactions.

Wikicoin
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Wikicoin George Shnurenko

Binance Coin Price Prediction- How Far Can BNB Grow?

📚 Wikicoin
Binance is a Blockchain ecosystem comprised of Exchange, Labs, Launchpad and Info. We expect further growth of the BNB cryptocurrency
Binance Coin Price Prediction- How Far Can BNB Grow?
Contents

Binance has found its way onto the headlines over and over again. At first, they launched a $1 bln investment fund and then, they celebrated over eight mln users. These new achievements water down the previous $15 mln raised in July 2017 and astounding growth in membership. The soaring success has also brought about several rumors concerning BNB price prediction.

In spite of the stellar performance of the company, Binance Labs never relented, rather, they kept pushing boundaries. The LaunchPad product which was tested in December 2017 with the Gifto Official’s ICO saw the corporation amass millions of dollars in seconds. They still didn’t rest their oars, as they’ve announced that they have more projects in the pipeline.

Their impressive track record is what underpins the myriad of BNB price prediction floating around, asserting that the coin will peak in a very short while.

But we cannot depend on hearsay alone, let’s find out if BNB will really do well in the market. If they will, what’s the underlying reason? If not, we need to find out why.

Binance offers a trading fee discount

Revenue is an important source of growth, no doubt. However, an equally important metric is the volume of trade being handled. BNB dealt with this wisely and offered traders a 50 percent discount when they make use of Binance exchange for the payment of fees. This seemingly little introduction goes a long way in encouraging customer adoption and BNB price prediction for 2018 is gaining traction because of this.

Binance affiliate bonus

Yes, there’s such a thing as the affiliate bonus with Binance. In fact, the earnings recently increased for those who hold a minimum of 500 BNB. The affiliate program rewards traders with 50 percent of the trading fees of those referred. This means that if you refer a trader who goes on to incur a trading fee of about $50, you will get paid $25.

For those who do not meet the minimum, the bonus was cut to 20 percent and the strategic advantage this offers can be seen below:

  1. It increases earnings in the short term

  2. Improves overall profit in the long-term

  3. Provide a perfect setup to create a new demand feature.

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Token sale participation for LaunchPad

LaunchPad is a Binance product which was established to help startups raise capital as at when due. They have tested this product and it has proved its reliability. This strategy then, that startups are required to purchase BNB tokens before they can participate in the fundraising exercise is an equally viable one and it will cause the value to increase.

BNB trading pairs

There are over 70 trading pairs of BNB. This means that BNB is available to be traded with 70 other cryptocurrencies on several digital exchanges. This goes to show how valuable it is and it also demonstrates that the demand for this coin is on the increase.

One more thing on trading pairs, the trading pair utility opens traders up to more arbitrage opportunities. What does this mean? Simply means that if there’s an NEO/BTC pair and a BNB/NEO pair, one can leverage the BNB/NEO pair rather than trading BTC because of the significant difference in price.

BNB price prediction

Now, to the real deal. Based on the evidence provided above, what is the verdict? Let’s consider a few other things:

  1. The initial total supply was 200 mln tokens but they have a buy-back clause which aims to reduce the total supply to 100 mln.

  2. It is an ERC 20 token.

  3. It has a market cap of $1.259 bln, the 18th largest.

  4. It is currently selling at $13.19

For the analysis, we shall draw on the data and equations provided here.

At the moment, the volume of BNB available is 4.3222 percent of the total physical currency A (including that in the central bank). The BNB available is also 0.3041 percent of the total currency B(including the amount in demand accounts, checking accounts, savings accounts, money market accounts, and certificate of deposit of accounts less than $100,000).

If one percent of the total physical currency A is infused into the crypto market and Binance coin maintains the current share, the price of BNB would be $2.98. If 16 percent of the said amount is pumped in, BNB would increase to $47.66 and if the percentage rises to 32 percent, it becomes $95.31.

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However, BNB price prediction takes a drastic turn in the case of currency B. if one percent is invested, it becomes $42.33, if 16 percent is invested, it becomes $677.33, if 32 percent is invested, it rises to $1,354.66.

Conclusion

Like we always warn, the crypto market is volatile and risky. This shouldn’t be taken as financial advice and we’re not liable for any loss incurred. Only invest after you’ve assiduously researched the market. One more thing, have fun while you do so!

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🕵️‍ ICO Watch Eric Eissler

Blackmoon Ready to Upset Wall Street: Past ICO Review

👁 ICO Watch
Is it possible to invest in IPOs though ICOs?
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Contents

Blackmoon is bringing tokenized investment funds that can be bought and sold to the market. You might be scratching your head and asking, “What is a tokenized investment fund?” It is just as it sounds, they are baskets of investments, funds and other financial instruments that have been turned into tokens and thus represent a value unto themselves. They are also referred to as security tokens.

Essentially, this allows participation in the traditional market though smart-contract enabled Blockchain technology.

Finances

Blackmoon had a two-day ICO Sept. 12-13, 2017, which brought in $30 mln in funding. The token, known as BMC, is ranked by CoinMarketCap at 353 and is, at time of writing, trading at $0.62. It debuted at $0.86, which is a decrease of 39 percent. Its all-time high was $2.36 on Jan. 10, 2018. Since that high, it has remained relatively stable by comparison with many other cryptocurrencies.

Investment tokens on the horizon

Blackmoon has already tokenized its first IPO. Yes, that is not a typo, you read correctly, IPO. Quoting directly from their website: “Blackmoon is the first company in the history to tokenize an IPO in this way and it allows cryptocurrency investors and users access to the Xiaomi Corporation IPO.” So as a token investor, you can take part in the IPO indirectly by purchasing the tokens that have tokenized the IPO. There are more investment types on the way, too.

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Portfolio tokens

Blackmoon has three tokenized investment funds in the works for release. Think of these as tokenized investment funds with varying levels of risk. The first one is a one-day-most-volatile strategy. It promises to generate the returns corresponding to the yield of the crypto assets with the largest volatility. In other words, it wants to be more volatile than Bitcoin in one day.

The second token is a top-20-market-cap strategy, by putting the top 20 coins by market cap into a basket. Its strategy is to generate the returns corresponding to the yield of the cryptocurrencies with the largest capitalization.

The third coin combines cash and the top six coins by market cap to provide less volatility with cash as the buffer.

ICOs are for everyone

ICOs open the door to everyone to be able to invest, not just accredited investors. This levels the investment playing field for everyone and allows for more participation.

“Historically participation in an IPO has generally been a prerogative of institutional traders, but now with the democratization of the market and availability of new tools, it has become available for everyone. We have provided cryptocurrency holders the option to participate in the performance of Xiaomi stocks without leaving the Blockchain universe, and this is what Blackmoon has been all about from the start, ” said Blackmoon CEO Oleg Seydak.

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The verdict

While it might seem hard for some to grasp the idea of tokenized IPOs and other funds, this way of investing is only going to grow as more and more people take advantage of these new investment opportunities, for which they were not “accredited” to participate in before.

If all goes well with the launch of the tokenized funds, we might see Blackmoon lead the way in the tokenized investment funds for the time being. However, once the market of tokenized assets is established, competition will creep up out of nowhere and things will get innovative and interesting.

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Guest Author

Lost Money on Crypto? Here's How to Recoup at Tax Time

You can recover a substantial amount of money lost during this year’s crypto rout by dropping down federal income tax brackets. Here’s a detailed guide on how it works.
Lost Money on Crypto? Here's How to Recoup at Tax Time
Contents

Last Thanksgiving, Bitcoin was in the middle of a bull run that would result in a record high of $19,511 just before Christmas. Now, Bitcoin is worth just $3,752.

If you bought Bitcoin and other cryptos when their prices were high, there’s a silver lining around the gray state of crypto markets now: any losses you take this year could place you in a lower tax bracket. What’s more, claiming those losses is easier than you might assume.

Read on to find out everything you need to know about how to file your crypto losses.

Filing Your Crypto Taxes 101: How Does it Work?

For the purposes of taxation, the US and most other governments consider cryptocurrencies to be assets. This means that whenever you trade cryptocurrency, the transaction falls into one of two categories: a capital gain or a capital loss.

  • Capital gain. A capital gain occurs when you sell cryptocurrency for more than the amount that you paid to purchase it.

  • Capital loss. If you sell cryptocurrency for less than the amount that you paid for it, this is considered to be a capital loss.

You have to sell or buy an asset to trigger a taxable gain or loss. Once you decide to make a move, tax authorities consider the loss to be “realized.” If your loss is great enough, you may be able to use it to enter a lower tax bracket.

Deducting Your Crypto Losses

One of the biggest benefits of claiming a loss is that you can offset income gained from other sources.

In the US, the IRS lets you deduct up to $3,000 worth of net capital losses each year from the amount of money you’ve earned at your day job. If the amount you lost was greater than $3,000, you can get another deduction of up to $3,000 when you file your taxes next year.  

If you currently make just over $50,000 per year at your job, that $3,000 cryptocurrency loss could place you in a lower tax bracket. This could result in thousands of dollars of tax savings.

What’s more, if you’ve earned some income through stocks or through the sale of property, there’s no limit to the amount you can deduct from those revenues.

Examples

Here’s a look at the 2018 tax brackets for single individuals.

If your crypto tax loss puts you below the $38,700 mark, you’d only have to pay $952.50 plus 12% of any amount over $9,525. But if you made $38,701 or more, you’d have to pay over four times as much in taxes, plus 22% of any amount over $38,700.

In other words, if you fail to deduct your crypto losses and you fall into the third bracket as a result, you’d have to pay at least $4,453.50 to the IRS. But if you do file your losses and make it into bracket two, you’d pay just $952.50.

Total tax savings: $3,501.50.

Tax Single

If you’re married and filing jointly or widowed, moving into a lower tax bracket can result in even more tax savings. If you made $77,402 in 2018, you’d have to pay the IRS $8,907 and change.

Dropping down to the $19,051-$77,400 tax bracket by filing a crypto loss would save you $7,002.

Tax

How Does Crypto Mining Income Affect Taxes?

In addition to cryptocurrency traders, cryptocurrency miners can use deductions to reach lower tax brackets.

A notice that the IRS published in March of 2014 provides some relevant details:

“...when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income.”

If the value of the cryptocurrency you mined decreased and you decide to sell it, then that would mean that you have triggered a capital loss. You can report this loss in the same way that you would if you bought and then sold your coins through an exchange.

IRS analysts told CNBC that electricity costs and other expenses may be written off as well.

Here’s Where It Gets Complicated...

Figuring out how much you’ve made or lost can be a headache, particularly if you haven’t been keeping track of your purchases or if you placed a huge amount of trade orders last year.  

Sorting out how much you lost or earned requires access to historical pricing data. Without that historical data, you won’t be able to determine what the price of your crypto asset was when you bought and sold it.

Cryptocurrency Tax Tools

Fortunately, there is software available that can crunch all your crypto tax data for you.

The tool depicted below, called CoinTracking.info, can import your transactions from all your cryptocurrency wallets and exchanges. The interface walks you through how to do the imports.

At the end of the import process, you can download IRS form 8949. This is the form you need to submit to report your loss.

Other download options include CSV, TaxACT and TurboTax.

Tax-Report

Watch Out for Self-proclaimed “Crypto Accountants”

If you use a crypto tax calculator to do your own taxes, filing your taxes is a straightforward process. All you have to do is take the total from IRS form 8949 and transfer that to IRS form 1040 Schedule D.

In fact, most CPAs that work with crypto traders use CoinTracking and other publicly available software to determine what their clients owe. These tools are not difficult to use. Many have free trials, which let you see how they work for yourself before you commit.

Conclusion

If you lost money in crypto markets last year, you may be able to offset some-- or perhaps even all-- of those losses at tax time. Reporting your capital losses might help you move to a lower tax bracket. If your deductions qualify you for a lower bracket, filing them could save you thousands of dollars when you submit your taxes this year.

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Overview of Six Types of People in Cryptocurrency Community

In honor of Telegram’s importance in the crypto world, we take a look at the most common types of people on the platform.
Overview of Six Types of People in Cryptocurrency Community
Contents

Telegram is going to launch a $1.2 bln ICO and issue its own cryptocurrency, according to TechCrunch. Telegram founder Pavel Durov neither confirmed nor denied plans for an ICO, but during an interview with Bloomberg, he praised Bitcoin. He said that Bitcoin is a kind of digital gold, and the 2,000 BTC that he bought for $1.5 mln is now worth $33.5 mln.  

Telegram is the main communication center for millions of people. And like in any real-life community, virtual communities feature they have several basic types of members. Here are some archetypes you’re likely to meet in Telegram channels.

1. An alarmist

 

 

Users of this type are notable for the highest activity in channels, making themselves and others crazy. A panic-monger declares his eternal love to the project and all the users quite often, but immediately switches to anger at the first signs of problems. Basic vocabulary includes: I love everyone. HODL. I truly believe in the project. I want the refund and my coins back! I hate you! Give my money back! It’s a scam! A fraud! Everything’s gone! I wish I had listened to my mother! Run, you fools!

2. A person with “connections”

 

 

This kind of user usually demonstrates their knowledge of all world jurisdictions, connections in the CIA, the law courts and presidents. Basic vocabulary: You’re in big trouble. I have reported everything to the SEC already. You may start panicking because the FBI is keeping an eye on you.

3. A believer

It’s the major category of users in every crypto Telegram channel. They invest their own money not only to get the profit but because of their trust in the project and the team. These people are the core audience of every project and they support and inspire the team. They are the most loyal followers of the product and the ones who display understanding and patience during the development. This audience is mainly represented by experienced cryptocurrency enthusiasts and analysts who read almost every message and monitor every reference in the media. They usually investigate all the issues on their own and sometimes share the answers with the others.

 

4. A reseller

This user comes to projects with one aim: to buy low and sell high. He doesn’t care what kind of product is under development, or what’s the idea behind it, or who’s on the team. He hardly ever reads the white paper. Basic vocabulary: When’s the listing? Come on, guys, hurry up! I can’t wait to see $100 for a token within a month.

5. Forever banned user

A user of this type always floods and gets banned for it each time. Then he creates a new account and starts all over again. Basic vocabulary: Why am I banned again? I invested a million dollars and got banned here. Why?

 

6. Sarcastic troll

A user who appears online once every month and asks the same questions every time: "So, how are you doing here? Has the project collapsed yet?" He disappears then and usually comes back a month later with the same questions and jokes.

 

Each token sale is unique. Telegram is not just another messaging service; it means a lot to the crypto community. It’s the primary way to keep up with the thousands of ICO projects on the market. Telegram is not monetized at the moment, although it’s potential is quite high: its ICO can become the biggest one in history.

Alexander Borodich, venture investor, Forbes contributor, CEO of Universa.io.

P.S. to editor: the pictures are drawn by us


 

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