Tag: blockchain

Chinese money dominates bitcoin, now its companies are gunning for blockchain tech

October 2, 2017 David

Chinese money dominates bitcoin, now its companies are gunning for blockchain tech

Chinese money dominates bitcoin, now its companies are gunning for blockchain tech

Beijing, China

It’s a sweltering summer night when I’m invited to join a bitcoin miner from Shenzhen at a “bitcoin club” somewhere in downtown Beijing. I’ve just returned from visiting one of the world’s largest bitcoin mines and find myself at a gathering of cryptocurrency enthusiasts at a craft beer brewery in the Sanlitun nightlife district.

I excuse myself from the bitcoin meetup and resort to jumping in a pirate taxi because I don’t have a mobile wallet from Alibaba or Tencent—the primary way to hail and pay for taxis in the city. After paying in cash—now a rarity in China’s mobile payment saturated cities—I disembark, then get lost amid Beijing’s ancient hutongs, the narrow alleyways that link China’s traditional courtyard residences.

My host puts me out of my misery by sharing his location on a real-time map over our WeChat direct messages. Now drenched in sweat, I meet Jack Liao, who runs a bitcoin mining firm called Lightning Asic. He leads me through a dark hutong, coming to a set of carved wooden double-doors. Pushing them open, we enter into the courtyard of a palatially renovated villa. This is my first look at the elusive “bitcoin club.”

The club is located in a 2,000-square-foot villa with a staff of 15, including cooks, cleaners, and wait people. It has two guest rooms, a dining room that hosts two dozen people, a professional Texas Hold ‘Em table emblazoned with the legend, “Faith in Bitcoin,” an automated mahjong table; shelves stacked with fine wine and liquor, a room for practicing Chinese caligraphy, and so on. The table stakes are bitcoin, AliPay credits, and sometimes even yuan, the only non-virtual currency accepted. Guests can sleep, eat, drink, and gamble for free if they’re acquainted with the miners who run the place. “People come here just to chat about projects,” Liao says.

The eye-popping villa bankrolled by bitcoin mining is a symbol of just how lucrative the cryptocurrency industry has been for some on the Chinese mainland. China is home to the world’s largest bitcoin mines, thanks to abundant and cheap electricity, and at one time the country accounted for 95% of the volume traded in global markets. Its central bank is experimenting with a blockchain-backed digital currency, and its biggest companies, from tech giants to industrial conglomerates, are racing to bake blockchain tech into major new projects.

All this points to a central question: How did stateless cryptocurrencies get so big in China, a country where the national currency—along with so much else—remains tightly controlled by the government? Why has bitcoin, along with other cryptocurrencies, flourished with so much vigor here in China? A two-week journey through bitcoin trading operations in Shanghai, mining operations in Inner Mongolia, and the club in Beijing hasn’t answered the question definitely—but it’s gotten me much closer.

Bitcoin is a political statement

Bitcoin began as an experiment in economics and politics, as a project to create electronic money that anyone could use but no one controlled, especially a sovereign authority. The code behind the new currency gave life to libertarian ideals like: money free from government controls on spending and taxation; transactions that could ignore a global, sometimes corrupt banking system; and freedom from central bank targeting of interest rates and inflation. It was also rebuke to the very notion of conventional money.

Bitcoin’s pseudonymous creator, Satoshi Nakamoto, encoded a headline from the Times of London in the first block of transactions ever created on the bitcoin blockchain. It read: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”

Given bitcoin’s political bona fides, it’s a great irony that Chinese companies and individual users are so dominant in its daily activities. The world’s biggest bitcoin miner is a Beijing-based company called Bitmain, which operates two mining pools that control nearly 30% of all the processing power devoted to bitcoin mining. It might seem that Chinese bitcoiners are carrying out some kind of libertarian protest against China’s ruling communist party, subverting the status quo by processing cryptocurrency transactions towards a yet-to-be-revealed political end.

They aren’t.

“In China, bitcoin is one thing and in America and Europe it is another thing,” Liao said as we sipped tea from porcelain cups on the villa’s top floor. Our host, Wu Bi, explains there is no competition between cryptocurrencies and the government-controlled renminbi, at least as the government sees it. “In China our government says bitcoin is not a currency, it is a commodity, so there is no chance it will compete with the renminbi,” Wu told me in Chinese, with Liao translating. “Bitcoin is a great idea, but in China we care more about blockchain.”

Wu and his Chinese compatriots are focused not on the currency, but on the technology behind it. Blockchain is simply a technical way to record encrypted transactions that are distributed across a computer network; once entered they cannot be altered. Instead of using blockchain, or bitcoin, as a permissionless cryptocurrency, banks want to shoe-horn some of bitcoin’s features into current transaction systems to create a low-cost network that, crucially, would require administrators to grant users access. Those administrators, of course, would be banks, or central banks. “Different countries may have different ideas about what is government, and what is the liberty of individuals,” Wu says.

Bitcoin users I met in Beijing were similarly dismissive of bitcoin’s libertarian politics. They did not want to be named or quoted directly, but their argument was essentially this: People in China simply aren’t interested in bitcoin’s potential for political change. And besides, China’s closely controlled economy has delivered prosperity for now—what benefits does bitcoin bring besides as an investment that might appreciate?

Object of speculation

Ordinary Chinese bitcoin users I spoke to, and those who are served by the exchanges and wallet providers, are far more interested in the ability to speculate on bitcoin’s wild price swings—it’s just another way to make money as China continues to adopt characteristics of a market economy.

As it happens, bitcoin arrived just as a class of retail investors in China is growing in size, and seeking better returns than those offered by a restricted financial products market. Even the market for property in China’s top-tier coastal cities, usually reliable for spectacular returns, has been subjected to ever tightening lending restrictions by a government eager to curb speculation. “[Chinese consumers] have had such limited channels for so long, and [bitcoin] was finally one that was not tightly controlled by the government,” says Martin Chorzempa, a research fellow specializing in Chinese internet finance at the Peterson Institute for International Economics in Washington DC.

One seasoned observer of the Chinese bitcoin scene concurs. Eric Zhao is n engineer at the Chinese Academy of Sciences in Shanghai and runs the widely followed Twitter account CN Ledger. Bitcoin became popular almost by default, because of the paucity of products for the Chinese retail investor, he says. “There are not many good investment choices for common people in China. Many people worry about inflation and lots of people feel insecure about their financial status,” he says. “They buy it simply because they believe it will appreciate in value.”

Uncorrelated to major asset classes and generally disconnected from the Chinese economy, bitcoin has been hugely attractive to Chinese investors already overweight domestic stocks and property. Indeed, research from Pantera Capital, a venture fund for blockchain companies, shows that bitcoin is almost completely uncorrelated to major equity, debt, and commodity asset classes. “Because [bitcoin] is globally connected, it’s not easily affected by the Chinese economy,” says Isaac Mao, a longtime entrepreneur and investor in China’s technology scene. “It may be the only economic activity fully connected to the global economy.”

Crackdown

The wild ride on bitcoin in China, however, braked to a stop Sept. 4, when China’s central bank began to take steps to halt domestic bitcoin trading. It started with a ban on “initial coin offerings,” followed by a shutdown of local bitcoin exchanges. China’s authorities have clamped down on bitcoin trading before, most notably in 2014, when the cryptocurrency was on a historic rally driven, in part, by Chinese money.

Now rumors are swirling that a ban on bitcoin mining may be enacted. But if the government has found bitcoin to be a potentially dangerous element in the country’s socio-political mix, why didn’t it crack down before? Instead, it has been relatively tolerant of a technology that was designed to weaken the state’s grip on money.

The rare true believer in bitcoin’s libertarian properties is Bobby Lee, an American who runs the world’s oldest bitcoin exchange, BTCC, in Shanghai. His firm was forced to shut down domestic trading through its BTCChina arm, although it still runs an exchange for non-Chinese traders. When we spoke before the crackdown in August, Lee was enthusiastic about government regulation, saying it would help the market mature. But he also struck a defiant note, saying that bitcoin’s design made it impossible for China’s regulators to shut down. “There is nothing [the Chinese government] can do. That is the beauty of [bitcoin],” he said.

I pointed out that the government could seize exchanges, and even bitcoin mining facilities, and compel their owners to run certain types of code or mess with transactions, thus damaging the cryptocurrency. Lee was sanguine. “They’ll want to control it, but bitcoin was not meant to be controlled,” he said. “You can make all the rules you want, and the question is, can they be enforced? With guns you can say, let’s make guns illegal. But with bitcoin, there’s nothing physical. It’s information, and there’s plausible deniability.”

The reality may be more prosaic. Bitcoin and cryptocurrencies are simply too small to bother the Chinese government much, says Isaac Mao, the investor and entrepreneur and one of China’s earliest bloggers. “The [Chinese Communist Party] doesn’t recognize it as a threat, so bitcoin actually grows very quickly in China,” he told me at a cafe in Hong Kong, where he is now based. “But it’s too small. There is no scale. The market capitalization of bitcoin is about the same as PayPal,” or about $70 billion.

I spoke to Mao in August, but the crackdown doesn’t signal any political threat, writes Chorzempa of the Peterson Institute. It’s more likely that bitcoin trading is just collateral damage from a wider set of restrictions on alternative financial products that have caused billions in consumer losses. Regulators have reigned in not just crypto trading but peer-to-peer loans, trusts, and lending to non-bank institutions this year, Chorzempa writes: “The clampdown thus fits into a broader set of efforts to lessen financial market risks perceived by Chinese policymakers.”

Everyone hates inflation

To the extent that bitcoin trading and mining is a political statement, it’s a demonstration against inflation. Prices in China grew rapidly in the aftermath of the financial crisis in 2008, hitting their highest level in decades in 2007. Inflation has moderated since then, but ordinary Chinese say they still feel the pinch.

Bitmain’s Micree Zhang, who developed its proprietary mining chips, says worry about inflation chewing up his earnings was one reason why he first became interested in bitcoin. “Before I knew about bitcoin I disliked, and was very worried about, inflation. Especially in China in the last 10 years,” he said when I visited with him at Bitmain’s main facility in Inner Mongolia. “When I discovered bitcoin, I knew it was a good idea, very quickly.”

One bitcoin user I met in Beijing told me he was attracted to the cryptocurrency because the government couldn’t devalue it by printing more money, unlike the yuan. The Chinese government controls its currency far more tightly than other major economies.

This level of control can lead to panics. In 2015, the Chinese government devalued the yuan in an attempt to boost economic growth, sending shockwaves through global markets. While today the central bank’s move is seen as astute, at the time Chinese consumers were hit hard, worrying about paying more for everything from Australian beef to New Zealand milk.

Digging for digital gold

China has been the world’s largest electricity producer since it surpassed the United States in 2011. Cheap electricity is the crucial ingredient for a profitable bitcoin mining operation—and China has it in spades. So it’s no surprise that China has become a world center for the activity.

Take Beijing-based Bitmain, for instance. It’s the world’s biggest bitcoin miner, but the company doesn’t divulge its financial data, and there’s no easy way to find out because its beneficial owner is a trust in the Cayman Islands. But one longtime commentator in the bitcoin space, Jimmy Song, has performed an analysis of the firm’s likely profitability. His estimate: $77 million in mining profits for the firm this year, of which electricity and other operational costs come up to about $23 million.

It’s estimated that two-thirds of the world’s processing power devoted to mining bitcoin resides in China. These bitcoin mines take the form of giant warehouses filled with thousands of custom-designed machines and chips, all whirring away to check bitcoin transactions and compete for a slice of the 12.5 bitcoins awarded to a miner every 10 minutes. Collectively, bitcoin miners have collected more than $2 billion in revenue over the cryptocurrency’s nine-year lifespan.

Bitmain leads the pack as both a creator of bitcoin mining rigs and chips, and an operator of vast server farms. It’s now raised $50 million from marquee Silicon Valley investors including Sequoia Capital to expand to the US—perhaps reducing its exposure to Chinese regulations—and to develop a new set of chips for artificial intelligence.
 

Sheer scale

Bitmain’s position as the world’s largest miner is only the tip of Chinese industrial interest on blockchain technology. Last May, a Chinese company called Wanxiang Group, one of the world largest automotive parts makers, sponsored a blockchain hackathon at the Deloitte offices in Rockefeller Center in New York. Wanxiang plans to embed blockchain technology into a new “smart city“—a nine square kilometer plot of land with a planned population of 90,000 people and $30 billion in investment—that it is building from scratch near Hangzhou in eastern China. It was looking for the world’s brightest blockchain developers.

Wanxiang was offering $15,000 to teams who came up with an enticing blockchain project for the smart city, with an additional $1 million in funding. As Wanxiang executive Peter Liang clicked through his slides detailing how blockchains would power everything from the city’s electricity grid to its traffic control system and be embedded in Wanxiang’s factories, the handful of programmers in the room grew both skeptical and awed. “It’s so huge, it’s hard to even believe,” one developer told him.

Wanxiang isn’t the only Chinese conglomerate with blockchain dreams. Beyond cryptocurrencies like bitcoin, some of China’s biggest firms are betting on the technical ideas behind it to revolutionize their businesses. They’re placing much bigger bets than their counterparts elsewhere in the world, who are mired in small-scale trials, proofs of concepts, or slow moving consortia. Chinese companies “are not only moving faster, but the scale of their blockchain ambitions dwarf what we’re seeing elsewhere,” says Garrick Hileman, of the Cambridge Centre for Alternative Finance.

The Chinese e-commerce giant JD has already launched a food supply tracking system using a blockchain in Beijing supermarkets and online stores. The tech giant Tencent has partnered with Intel to develop a blockchain architecture. And the People’s Bank of China, the country’s central bank, has said it’s researching blockchain technology as a way to potentially digitize the yuan.

Blockchains for industry

Unlike firms elsewhere in the world, Chinese companies sense an opportunity to unify the fragmented data flows flowing through their stupendously large and complicated factory floors and supply chains by marrying a blockchain data layer with Internet of Things devices. Conveniently, these applications are also free of the regulation and scrutiny that can slow down financial applications. “I personally believe that non-financial [applications] will go commercial sooner,” says Vincent Wang, Wanxiang’s chief innovation officer.

Foxconn, one of the world’s largest contract manufacturers of electronics and best known for manufacturing Apple’s iPhone, sees blockchain as way for its suppliers to get easy financing. “In China, 85% of SMEs can’t get financing,” Foxconn executive Jack Lee told a conference in New York in May. “They have to go to shadow banking … so it’s very inefficient and costly.” If Foxconn can leverage its current data on small businesses through blockchain, it could create a highly efficient supply chain that could also track delivered goods.

Just as mobile phones allowed China and emerging economies to leapfrog the rich world’s telephone landlines, blockchain technologies could help its industries skip the development of antiquated financial services models. After all, Chinese tech firms Alibaba and Tencent are already processing trillions of dollars through their mobile payments businesses. “We are more interested in getting to a next-generation financial services business,” Foxconn’s Lee says. “That’s the key. As a side benefit for Foxconn, it will streamline the supply chain.”

Those kinds of observations make less worrisome the recent drop in China’s share of bitcoin trading volume as well as rumors on Telegram chat groups about an imminent crackdown on even China’s powerful bitcoin miners. Because Chinese money’s waning influence over the bitcoin markets may be replaced by control over an even greater prize.

As it continues to move from a rural to an industrial economy, China needs to leapfrog the incumbents and assert itself as a technology leader. Bitcoin and the ideas behind its blockchain may be one way to do that—and it may be why China has been a leader of a stateless cryptocurrency for so long.

 

Author: Joon Ian Wong

 

Posted by David Ogden Entrepreneur
david ogden cryptocurrency entrepreneur

David – http://markethive.com/david-ogden

Why Bitcoin and Ethereum will soon be everywhere

September 30, 2017 David

Why Bitcoin and Ethereum will soon be everywhere

Why Bitcoin and Ethereum will soon be everywhere

Bitcoin, Ethereum and blockchain technologies are all the rage. Initial coin offerings (ICOs) are raking in millions in mere minutes, and every day a new initiative is announced with ever-increasing hype.

With all of this going on, you’d expect cryptocurrencies to be mainstream fare, right?

Unfortunately, they’re not quite there — yet.

As of now, your grandma probably isn’t wagering Ethereum with her bridge buddies. Heck, even buying pizza with cryptocurrency sounds like science fiction. The fact of the matter is that for people outside of the hardcore crypto-enthusiast community, the whole idea is still mysterious.

This article will help you get a better grasp of the future of cryptocurrency. After you finish it, you’ll clearly see how these technologies are poised to join the mainstream.

So, when will this dizzying race come to an end? Is there real value in the blockchain craze? Can it possibly live up to the expectations created by so many rivers of newsprint?

Below, you’ll find answers to all of these questions and more.
 

The true potential of blockchain technology

As it turns out, distributed blockchain ledgers do have a future.

Not only can they reduce skyrocketing IT costs, but the promise of faster, less-expensive financial transactions has the potential to accelerate growth in a host of industries.

With this great potential comes some bad news, though … you won’t see these possibilities become a reality until the technology becomes useful in the real world.

uber

What will this look like exactly? Well, when you can pay for a ride to a cafe and buy a coffee in crypto — without needing a master’s degree, mind you — its use will be pretty standard.

When crypto goes mainstream transactions won’t be measured in millions of dollars, but trillions.

The explosion of the global sharing economy illustrates how cryptocurrency can go mainstream.

Several companies are already changing the way things are done in this sector. They’re taking products and services that are already in existence and turning them into economic opportunities for millions of people.

In their industry, Uber and Lyft have transformed the way the world thinks about traveling by car. They’ve also empowered people who couldn’t otherwise find work to generate income.

With these businesses, it’s easy for drivers to get started, and they can work on their terms. Due to these reasons and more, Uber and Lyft have taken off like wildfire.

Air B&B

Airbnb also challenges the status quo to provide worldwide accommodations for its users. Not only has it reinvented the way people think about traveling, but it’s been an absolute game-changer when it comes to bringing more money into various communities.

Currently, initiatives like Open Money are laying the foundational groundwork so that software developers can make the vision of universal cryptocurrency acceptance possible. Their platform provides the technological infrastructure that will integrate cryptocurrency transactions into practical, everyday applications.

At the end of the day, companies like Uber and Lyft don’t just change the way we think about the world — they change the world. When it comes to cryptocurrency, companies like Open Money will significantly expand the acceptance of cryptocurrencies by facilitating their incorporation into the software people are already using.
 

Can cryptocurrency acceptance in consumer apps open the floodgates?

Now all of this sounds pretty amazing, but what is needed to bring this vision to reality?

Companies will need to develop strategies that are based on proven market principles to succeed. Namely, they’ll need to empower app developers from all over the world to quickly and easily integrate cryptocurrencies into their applications.

The booming consumer applications market is the ideal starting point for bringing cryptocurrencies into the mainstream. According to a recent research study by We Are Social, more than half of the world’s population now connects to the internet with a smartphone, generating over 50 percent of all internet traffic.

Overall, 3.5 billion people around the globe consistently use mass-market consumer software.

around the world

The real motor of consumer software lies in the hands of software developers. All around the globe, these individuals are innovating solutions that engage their users in powerful ways.

Unfortunately, they don’t currently have the tools they need to make this possible.

Though others are likely to follow in its footsteps, Open Money is the first initiative to provide a state-of-the-art REST API, SDKs and industry best practices designed to facilitate blockchain integration.

Built by developers and for developers, with this solution, it won’t be necessary to start from scratch. Instead, they can leverage an established infrastructure to transition their currently successful apps into the cryptocurrency market, finally enabling you to pay for your pizza in cryptocurrency.

“We want to be the catalyst that takes blockchain technology and puts it in the hands of billions of people around the world. By empowering developers of all sizes to harness the true potential of this amazing technology, we will be contributing to a world that is more efficient, equitable and productive. That’s what the Open initiative is all about,” explained Ken Sangha, COO of Open Money.

The Opportunity

Cryptocurrency is on the brink of change. Soon, app developers from around the globe will empower everyone — including grandparents— to use cryptocurrency with ease. (Nostalgia: $12 checks written by older folks will soon be a thing of the past, so get your cryptowallet ready.) If they succeed, they’ll create a new market that’ll change the economic system forever.

 

by NATHAN RESNICK

 

Posted by David Ogden

David Ogden Cryptocurrency Entrpreneur

 

David – http://markethive.com/david-ogden

Get started in cryptocurrency with this beginner’s directory

August 21, 2017 David

Get started in cryptocurrency with this beginner's directory

Get started in cryptocurrency with this beginner’s directory

The wonderful world of cryptocurrency has grown from a budding idea to a full-fledged market bonanza. Hopefully you’re savvy to the terminology and ready to start putting your money where your technology is. This directory should provide you with the basic starting points to begin building your fortune in digital money.

(Don’t forget that cryptocurrency is an investment, and you shouldn’t trust your finances to an article you read on a news-source. We strongly advise contacting a financial adviser before risking your money.)

Bitcoin was founded in 2009. It represented the first decentralized cryptocurrency. It’s the oldest, and, as of August 17th it reached an all-time high of over $4,500. Just six months prior it was worth about $900. While you’re trying to wrap your head around that, keep in mind Bitcoin isn’t the only cryptocurrency.

How many cryptocurrency offerings are there? Over 850 are currently listed on CoinMarketCap. Before you decide which one to blow your speculation money on, make sure you have all your crypto-ducks in a row.

You need a wallet

Before you can buy into an initial coin offering (ICO), purchase cryptocurrency, or execute smart-contracts you’ll need a wallet. There are hardware wallets and software wallets; for now we’re only going to worry about software wallets.

Here’s a few to start you off:

  1. Blockchain – possibly the most popular cryptocurrency wallet

  2. Electrium – has been around since 2011

  3. Gemini – boasts regulation by New York State Department of Financial Services (NYSDFS).

Buy an established coin

You don’t have to start off trying to predict which ICO is the best investment. There are numerous ways to aquire cryptocurrency from an established coin. Here are some of our favorite coins to get your research started:

  1. Bitcoin – The big one. If you’ve got $4,000+ to fork out for a Bitcoin you can get in on the over/under $5,000 action. For what it’s worth there are experts on both sides of that fence.

  2. Ethereum – Things get a little more complicated here, but worth listing as a currency simply because ETH is second only to Bitcoin in popularity.

  3. Litecoin – Launched in 2011 billing itself the “silver” to Bitcoin’s “gold”.

  4. Bitcoin Cash – Bitcoin managed to fork itself and now there’s this.

  5. Siacoin – Sometimes cryptocurrency comes in the form of cloud storage.

  6. World Coin Index — provides a great listing to check valuations out

  7. Coin Market Cap — another listing of coin valuations

Or just find an ICO and dive in

Which is easier said than done. It seems like there’s an ICO for everything. We’re hesitant to even list any here, simply because you should research an ICO much more in-depth than would be prudent for the purpose of this directory. However, we’re happy to provide some links that might help:

  1. Coin Schedule – provides analysis on current and upcoming ICOs

  2. Smith and Crown – A curated list of ICOs

  3. ICO List – One of the most popular international sites concerning ICOs

It’s time to hit the exchange

Depending on which coin you’re investing in you’ll either visit an exchange, or use whatever method of purchase or trade the offering requires. You may be able to set up an online store that accepts Bitcoin or ETH, for example. Or perhaps you know someone who will sell you some. One of the most common ways to get cryptocurrency is to visit an exchange.

  1. Coinbase – probably the most popular exchange there is

  2. Kraken – you’ll find this one is well-reviewed by insiders

  3. Bittrex – US based and supports nearly 200 cryptocurrencies

  4. Buy Bitcoin Worldwide— provides country-specific exchange information

The above links should provide you with enough information to get you started on a path to dominate the cryptocurrency markets and become rich beyond fantasy. Or you could lose a bunch of money.

by TRISTAN GREENE — 13 hours ago in EVERGREEN

 

Posted by David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

Top 3 Reasons Not to Use an Exchange Wallet to Participate in a Cryptocurrency ICO

June 18, 2017 David

Top 3 Reasons Not to Use an Exchange Wallet to Participate in a Cryptocurrency ICO

Top 3 Reasons Not to Use an Exchange Wallet to Participate in a Cryptocurrency ICO

Even though cryptocurrency ICOs have been going on for quite some time now, a lot of basic questions continue to show up. It appears there is a lot of confusion as to why one should never send funds to an ICO from their exchange wallet directly. There are several good reasons as to why this should not be done, though, as we outline below.

3. TRANSACTION DELAYS CAN COST MONEY

Contrary to what some people may think, exchange wallets do not always send out withdrawals right away. In some cases, it can take an hour or longer until your withdrawal is effectively processed. Depending on which cryptocurrency we are talking about, it may take even longer to get the necessary network confirmations. This is anything but a fun experience, especially when it comes to dealing with a cryptocurrency ICO.

These ICOs often provide early investors with some sort of a bonus. Having to wait until the exchange sends out your funds can result in buying less ICO tokens than initially anticipated. It is not something anyone wants to deal with. Even if an ICO is scheduled to last multiple days, there is no reason not to transfer funds to your own wallet first before participating in a crowdsale.

2. AN EXCHANGE WALLET IS NOT YOUR WALLET

It may be hard for novice users to understand this principle, but a cryptocurrency wallet is not like a bank account. With a bank account, you rely on a third-party service provider to safeguard your funds. That is exactly what exchange wallets are, yet they do not let users spend their funds as they want. You always need “permission” from the exchange wallet service provider to move funds around, which is both annoying and risky.

There is a big difference between an exchange wallet and a private wallet. With a private wallet, you are the only one controlling the wallet address and its associated private key. An exchange wallet is generated on your behalf, yet you have no control over it whatsoever. Although you can freely use an exchange wallet, it is not your digital property by any means. Unless you own its private key, it’s not yours, nor is any of the money associated with it.

1. YOU WON’T GET YOUR TOKENS (RIGHT AWAY)

Perhaps the biggest complication that arises when using an exchange wallet is how the purchased ICO tokens are not yours to control by any means. In most cases, a cryptocurrency ICO smart contract will send money back to the address the deposit was made from. If that wallet is an exchange wallet, the exchange is the actual owner of the tokens you purchased using their wallet. That is a rather disturbing way of buying ICO tokens, yet the end user cannot claim ownership of the tokens, as they do not own the wallet’s private key.

Granted, in some cases, exchanges will eventually support these ICO tokens and return the purchased amount to the customer. However, one has to keep in mind they have no legal obligation to do so by any means. If you send money to a cryptocurrency ICO address from a wallet, you do not fully control as the sole owner, it is your own fault. All ICOs clearly warn users not to send funds from an exchange to avoid any complications.

 

David Ogden
Entrepreneur

 

Author: JP Buntinx

David – http://markethive.com/david-ogden

TradeCoinClub

May 15, 2017 David

TradeCoinClub

THIS may well be the best I have found, perhaps ever….

I have been laying low a bit lately while searching out and researching the best stuff online today, trying to fully and carefully apply whatever wisdom I’ve gained in some 16 years of working in this minefield.  And… I am SO happy to have MAJOR News for you! THIS may well be the best I have found, perhaps ever….

BITCOINS, YES –

Most knowledgeable online workers now prefer to use Bitcoins in business, for many very good reasons. Among the most knowledgeable, many have been looking for a TRADING PLATFORM for CRYPTOCURRENCIES and using Bitcoin, but there has not been anything genuine to date.  THAT HAS NOW CHANGED. 

WE CAN NOW –

–>> PASSIVELY EARN FROM FULLY AUTOMATED TRADING OF THE TOP TEN CRYPTOCURRENCIES.
–>> LEVERAGE BITCOIN AND EARN DAILY PASSIVE BITCOIN
.–>> DIVERSIFY PASSIVE BTC EARNINGS IN A POWERFUL NEW WAY.
–>> ACTIVELY EARN STILL MORE BTC BY REFERRING TO THE PLATFORM.

TCC: WHAT IT IS –

Trade Coin Club is an offshore registered company offering an automated trading platform for major cryptocurrencies.  Management is international and highly qualified. TCC trades in cryptos with licensed software that performs many millions of trades per day in ten of the major cryptocurrencies like Litecoin, Dash, BTC, etc. TCC itself works entirely with Bitcoins. Globally in a launch and pre-launch in different regions.

The company is full-function and earning and paying now. 

The site is sophisticated and well developed already and fully activated. TCC is uniquely well positioned in a high-demand global niche.  It is super-attractive for builders and leaders as well as for those who simply want to remain passive and leverage their Bitcoins into ever larger numbers.   Miners too will find it a highly attractive diversification that will likely earn a lot more strongly for them.

BENEFITS –

PASSIVE:
Recent member reports  daily “trading” profits with no losses – in dynamic rising Bitcoins!  Set it and let it run.  Those returns are substantially better than “mining”.

ACTIVE:
Members who refer receive 10% on both levels one and two, and lesser amounts down to as many as 8 levels.  Plus referrers can earn 8 to 10% daily from a binary structure too.  And there are MORE referral bonuses. It’s rich, but it is also very smart.
Compounding of one’s choice of all or some earnings is available. Withdrawal of earnings is on demand.

Ride the BTC Rise: 
We are working 100% in Bitcoin, so as BTC rises we enjoy the full benefits of its rise – to who knows what heights!  This is in contrast to some online options that actually work in dollars and only use BTC for pay-in’s and out’s.  In these, as BTC rises your dollar based payout in BTC falls.

GUIDANCE –

It is scant on the site at the moment, as it is so early in the life of TCC, so the guidance to signing up, getting set up and learning, etc., is currently best obtained in Youtube videos and not so much in the back office… as yet

Learn more:
TCC Details and OVERVIEW Videos and PDF –

TCC Presentation and background by boss, Joff Fortune, short, 20 min:  https://youtu.be/NiI7Joi_kag
TCC office in Belize: https://youtu.be/JHEDZ3PXx5Y
TCC PDF manual:  http://dreameagles.info/TCC/TCC_Manual_2-23-17.pdf

My personal advice is to dig in and enjoy these resources.  But do not get bogged down and too delayed in your explorations.  There can be good benefits to making your move quickly.  Be sure to have some Bitcoins, and a wallet to use for business.  I am personally using Coinbase and Blockchain as my bitcoin processors.  There are several choices.

How to Proceed –
Let’s keep this smooth and simple and let the videos take care of the heavy lifting.  Use them to ease your way and to avoid simple errors.
Cost Notes:  Joining is free, so you can do that immediately.
Minimum to participate actively is 0.30 BTC (0.25 plus a one time 0.05)  Other entry levels are at 1 BTC and the highest at 5 BTC from which one will earn the most the fastest.
Referring?  Edit this info page if you wish with your reg link.  Duplicate the process of sharing these resources if you decide to build teams, pass these instructions on. 
(Note: You need to be upgraded to at least the lowest Apprentice level package to refer.)

REGISTRATION LINK -> https://office.tradecoinclub.com/register/INFORMATION
Be sure your sponsor is listed as:  INFORMATION

INSTRUCTIONS VIDEOS, use these as detailed guides, follow these.

1. SIGN UP PAGE:
https://www.youtube.com/watch?v=p8dFkcWlEF4&feature=youtu.be&hd=1

2. BUY YOUR PACKAGE:
https://www.youtube.com/watch?v=LPnZaKO4mnA&t=633s

3. HOW TO ACTIVATE YOUR WEEKLY AUTOMATIC TRADE: https://youtu.be/sneX_yRH8Og

. PLEASE MAKE SURE TO LOGIN EACH WEEK BETWEEN SUNDAY EVERY WEEK, WE MUST NOW SET OUR TRADES BECAUSE OF LEGAL DEPARTMENT RECOMMENDATIONS4PM PST AND MONDAY 3:59PM PST TO RESET YOUR TRADES ACTIVATION.

4. SUBMITTING DOCS CORRECTLY:  (AT YOUR CONVENIENCE)  documents can be submitted later but before requesting withdrawals.
https://youtu.be/zVAM7jDlwOk

5.  Refer if you wish.  Edit this email to make it your own, with care to the signup link, and share it with your favorite contacts and friends.

6.  WHY IS THE EXCHANGE RATE WALLET ONLY SHOWING HALF OF YOUR DEPOSITS?

https://youtu.be/E8D4MhTmowA

7.  HOW TO COMPOUND YOUR EARNINGS.

https://www.youtube.com/watch?v=4mHr6jcHIfw&t=370s

8.  More info:  http://www.tradecoinclub.info

9.  ENJOY A BETTER LIFE IN A RICHER WORLD. 

Once again…

REGISTRATION LINK -> https://office.tradecoinclub.com/register/INFORMATION
Be sure your sponsor is listed as INFORMATION

P.S. keep this page for future reference and edit it to suit your needs.  Thank you. 

David Ogden
Entrepreneur
.

David – http://markethive.com/david-ogden

U.K. Land Registry Looks to Register Property on a Blockchain

May 14, 2017 David

U.K. Land Registry Looks to Register Property on a Blockchain

U.K. Land Registry Looks to Register Property on a Blockchain

 

Her Majesty’s Land Registry, a U.K. government agency responsible for registering land ownership, has announced it is seeking three non-executive board members as it undertakes a project using blockchain technology to register property.

The posting noted that the agency recently committed to making HM Land Registry “the world’s leading land registry for speed, simplicity and an open approach to data.” It referenced the project as the most substantial transformation in the registry’s 150-year history.

State-Backed Ownership Guarantee

The registry, an executive agency of the Department for Business, Energy and Industrial Strategy, provides state-backed guarantee of ownership on the register rather than requiring title insurance.

To meet its objectives, the registry will have to become more digitized. It plans to launch a live test in the near future of a “Digital Street” to allow property ownership changes to close instantaneously. The Digital Street will also allow the registry to hold more granular data than is presently possible.

Digital Street would be the world’s first such registry, having great transformational potential for the property market, the posting noted. Blockchain technology is an underlying technology for the project.

 

Three Positions Needed

The registry seeks three non-executive board members to ensure the right mix of expertise. Experience in transformational/digital issues is being sought, along with finance and legal issues.

The transformational/digital member is expected to have experience delivering transformational change to provide service improvements and cost savings.

The person will have to deliver change across most transformation disciplines, including technology, process and people. The candidate is expected to have knowledge of information technology developments, including the delivery of digital services to customers and in data rich organizations.

The closing date for applications is June 22, 2017. Remuneration is £20,000 per annum.

 

Other Governments Have Similar Tests

The U.K is not the only country to explore blockchain technology for registering and managing property.

In February, the Republic of Georgia teamed with Bitfury Group, a provider of blockchain infrastructure, to use the bitcoin blockchain to validate property related transfers, marking the first time a national government used the bitcoin blockchain to validate and secure government actions.

Blockchain technology has also be tapped to improve land ownership in developing countries.

Last year, a team of blockchain technology pioneers from Ghana, Denmark and the U.S., launched the Bitland initiative to establish usable land titles and free up trillions of dollars for infrastructure development in West Africa.

The Bitland initiative will educate the population about technology and provide the benefits of documented land ownership to those who don’t have it. It will begin in Ghana and expand throughout Africa, with hopes of catapulting infrastructure development and strengthening democracy.

 

David Ogden
Entrepreneur

 

Contributor: Lester Coleman

David – http://markethive.com/david-ogden

Best Cryptocurrency Exchanges

April 27, 2017 David

best cryptocurrency exchanges

Best Cryptocurrency Exchanges

What is a cryptocurrency exchange?

Cryptocurrency exchanges are websites where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency like US dollars or Euro. For those that want to trade professionally and have access to fancy trading tools, you will likely need to use an exchange that requires you to verify your ID and open an account. If you just want to make the occasional, straightforward trade, there are also platforms that you can use that do not require an account.

Types of exchanges

Trading Platforms – These are websites that connect buyers and sellers and take a fee from each transaction.

Direct Trading – These platforms offer direct person to person trading where individuals from different countries can exchange currency. Direct trading exchanges don’t have a fixed market price, instead, each seller sets their own exchange rate.

Brokers – These are websites that anyone can visit to buy cryptocurrencies at a price set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers.

The Best Cryptocurrency Exchanges

Today there are a host of platforms to choose from, but not all exchanges are created equal. This list is based on user reviews as well as a host of other criteria such as user-friendliness, accessibility, fees, and security. Here are ten of the best crypto exchanges in no specific order.
 

Coinbase

Backed by trusted investors and used by millions of customers globally, Coinbase is one of the most popular and well-known brokers and trading platforms in the world. The Coinbase platform makes it easy to securely buy, use, store and trade digital currency. Users can purchase bitcoins or Ether from Coinbase through a digital wallet available on Android & iPhone or through trading with other users on the company’s Global Digital Asset Exchange (GDAX) subsidiary. GDAX currently operates in the US, Europe, UK, Canada, Australia and Singapore. GDAX does not currently charge any transfer fees for moving funds between your Coinbase account and GDAX account. For now, the selection of tradable currencies will, however, depend on the country you live in. Check out the

Pros: Good reputation, security, reasonable fees, beginner friendly, stored currency is covered by Coinbase insurance.

Cons: Customer support, limited payment methods, limited countries supported, non-uniform rollout of services worldwide, GDAX suitable for technical traders only.

Kraken

Founded in 2011, Kraken is the largest Bitcoin exchange in euro volume and liquidity and is a partner in the first cryptocurrency bank. Kraken lets you buy and sell bitcoins and trade between bitcoins and euros, US Dollars, Canadian Dollars, British Pounds and Japanese Yen. It’s also possible to trade digital currencies other than Bitcoin like Ethereum, Monero, Ethereum Classic, Augur REP tokens, ICONOMI, Zcash, Litecoin, Dogecoin, Ripple and Stellar/Lumens. For more experienced users, Kraken offers margin trading and a host of other trading features. Kraken is a great choice for more experienced traders.

Pros: Good reputation, decent exchange rates, low transaction fees, minimal deposit fees, feature rich, great user support, secure, supported worldwide.

Cons: Limited payment methods, not suitable for beginners, unintuitive user interface.

 

Cex.io

Cex.io provides a wide range of services for using bitcoin and other cryptocurrencies. The platform lets users easily trade fiat money with cryptocurrencies and conversely cryptocurrencies for fiat money. For those looking to trade bitcoins professionally, the platform offers personalized and user-friendly trading dashboards and margin trading. Alternatively, CEX also offers a brokerage service which provides novice traders an extremely simple way to buy bitcoin at prices that are more or less in line with the market rate. The Cex.io website is secure and intuitive and cryptocurrencies can be stored in safe cold storage.

Pros: Good reputation, good mobile product, supports credit cards, beginner friendly, decent exchange rate, supported worldwide.

Cons: Average customer support, drawn out verification process, depositing is expensive.
 

ShapeShift

ShapeShift is the leading exchange that supports a variety of cryptocurrencies including Bitcoin, Ethereum, Monero, Zcash, Dash, Dogecoin and many others. Shapeshift is great for those who want to make instant straightforward trades without signing up to an account or relying on a platform to hold their funds. ShapeShift does not allow users to purchase crypto’s with debit cards, credit cards or any other payment system. The platform has a no fiat policy and only allows for the exchange between bitcoin and the other supported cryptocurrencies.

Pros: Good reputation, beginner friendly, Dozens of Crypto’s available for exchange, fast, reasonable prices.

Cons: Average mobile app, no fiat currencies, limited payment options and tools.

 

Poloniex

Founded in 2014, Poloniex is one of the world’s leading cryptocurrency exchanges. The exchange offers a secure trading environment with more than 100 different Bitcoin cryptocurrency pairings and advanced tools and data analysis for advanced traders. As one of the most popular trading platforms with the highest trading volumes, users will always be able to close a trade position. Poloniex employs a volume-tiered, maker-taker fee schedule for all trades so fees are different depending on if you are the maker or the taker. For makers, fees range from 0 to 0.15%, depending on the amount traded.

For takers, fees range from 0.10 to 0.25%. There are no fees for withdrawals beyond the transaction fee required by the network. One of the unique tools on the Poloniex platform is the chat box which is constantly filled with user help and just about everything. Any user can write almost anything but inappropriate comments are eventually deleted by moderators. It can sometimes be hard to distinguish the good advice from the bad, but the Chatbox is a great tool that will keep you engaged.

Pros: fast account creation, feature rich, BTC lending, high volume trading, user-friendly, low trading fees, open API.

Cons: Slow customer service, no fiat support.
 

Bitstamp

Bitstamp is a European Union based bitcoin marketplace founded in 2011. The platform is one of the first generation bitcoin exchanges that has built up a loyal customer base. Bitstamp is well known and trusted throughout the bitcoin community as a safe platform. It offers advanced security features such as two-step authentication, multisig technology for its wallet and fully insured cold storage. Bitstamp has 24/7 support and a multilingual user interface and getting started is relatively easy. After opening a free account and making a deposit, users can start trading immediately.

Pros: Good reputation, high-level security, worldwide availability, low transaction fees, good for large transactions.

Cons: Not beginner friendly, limited payment methods, high deposit fees, user interface.

 

CoinMama

CoinMama is a veteran broker platform that anyone can visit to buy bitcoin or Ether using your credit card or cash via MoneyGram and the Western Union. CoinMama is great for those who want to make instant straightforward purchases of digital currency using their local currency. Although the CoinMama service is available worldwide, users should be aware that some countries may not be able to use all the functions of the site. CoinMama is available in English, German, French, Italian and Russian. Check out the CoinMama FAQ

Pros: Good reputation, beginner friendly, great user interface, good range of payment options, available worldwide, fast transaction time.

Cons: High exchange rates, a premium fee for credit card, no bitcoin sell function, average user support.

 

Bitsquare

Bitsquare is a user-friendly peer to peer exchange that allows you to buy and sell bitcoins in exchange for fiat currencies or cryptocurrencies. Bitsquare markets itself as a truly decentralized and peer to peer exchange that is instantly accessible and requires no need for registration or reliance on a central authority. Bitsquare never holds user funds and no one except trading partners exchange personal data. The platform offers great security with multisig addresses, security deposits and purpose built arbitrator system in case of trade disputes. If you want to remain anonymous and don’t trust anyone, Bitsquare is the perfect platform for you. Check out the Bitsquare FAQ

Pros: Good reputation, secure & private, a vast amount of cryptocurrencies available, no sign-up, decent fees, open source, available worldwide, good for advanced traders.

Cons: Limited payment options, average customer support, not beginner friendly.

LocalBitcoin

LocalBitcoin is a P2P Bitcoin exchange with buyers and sellers in thousands of cities around the world. With LocalBitcoins, you can meet up with people in your local area and buy or sell bitcoins in cash, send money through PayPal, Skrill or Dwolla or arrange to deposit cash at a bank branch. LocalBitcoins only take a commission of 1% from the sellers who set their own exchange rates. To ensure trading is secure, LocalBitcoins takes a number of precautions. To start, the platform rates each trader with a reputation rank and publicly displays past activities. Also, once a trade is requested, the money is held on LocalBitcoins’ escrow service. After the seller confirms the trade is completed the funds are released. If something does happen to go wrong, LocalBitcoins has a support and conflict resolution team to resolve conflicts between buyers and sellers. Check out

Pros: No ID required, beginner friendly, usually free, instant transfers, available worldwide.

Cons: Hard to buy large amounts of bitcoin, high exchanges rates.

Gemini

Co-founded by Tyler and Cameron Winklevoss, Gemini is a fully regulated licensed US Bitcoin and Ether exchange. That means Gemini’s capital requirements and regulatory standards are similar to a bank. Also, all US dollar deposits are held at a FDIC-insured bank and the majority of digital currency is held in cold storage. Gemini trades in three currencies, US dollars, bitcoin, and ether, so the platform does not serve traders of the plethora of other cryptocurrencies. The exchange operates via a maker-taker fee schedule with discounts available for high volume traders. All deposits and withdrawals are free of charge. The platform is only fully available to customers in 42 US states, Canada, Hong Kong, Japan, Singapore, South Korea and the UK.

Pros: Security & Compliance, slick/minimalistic and user-friendly design, great analytics, high liquidity.

Cons: Limited currencies, small community, average customer support, limited worldwide availability, no margin trading.
 

Blockchain

Blockchain is the world's leading software platform for digital assets. Offering the largest production blockchain platform in the world, using new technology to build a radically better financial system, based in Europe. The software has powered over 100M transactions and empowered users in 140 countries across the globe to transact quickly and without costly intermediaries. They also offer tools for developers and real time transaction data for users to analyze the burgeoning digital economy.

Pros: Security & Compliance, slick/minimalistic and user-friendly design, great analytics, high liquidity.

David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

What’s next for blockchain and cryptocurrency

February 11, 2017 David

In May of 2010, someone on a Bitcoin forum by the name of Lazlo claimed to have bought two pizzas for 10,000 bitcoins. It was the first time anyone had purchased anything with the new digital currency, which at that time was valued at practically nothing.

Today, the cryptocurrency market is worth nearly $19 billion and those 10,000 bitcoins would be worth more than $10 million. Most of the cryptocurrency market is in Bitcoin, followed by Ether, the currency used by the smart contract platform Ethereum. Now tech giants, like Microsoft, IBM and Amazon, as well as major Wall Street banks, including JPMorgan Chase and Citigroup, are investing in blockchain technology, the underlying class of technology that started with Bitcoin. Infosys, TCS, HCL, and Accenture are working on blockchain-based products for banks as well.

With the new year, everyone is wondering what’s to come in the next chapter. Based on my work in the field, here are five predictions on major trends in cryptocurrencies for 2017.

Investment funds will look to invest in cryptocurrencies

As an asset class, cryptocurrencies are tough to ignore. As I write this, Bitcoin is trading at just over $1,000. Hedge funds and venture capital firms will look for more ways to tap into the cryptocurrency market. Doing so will remove some of the social stigma around cryptocurrencies—mainly due to Bitcoin’s history of use on the dark markets—and popularize investment in cryptocurrencies.

Global currency disorders are on the rise: Think of what’s happening in India, where the government recently scrapped 86 percent of cash in circulation, and in Venezuela, where currency is so devalued people now need to carry stacks of cash just to buy food. As a result, many retail investors are turning their attention to digital currencies, as well. Cryptocurrencies are free from government control. Governments can’t easily call in bitcoins or halt their movement across international borders without taking drastic actions.

Financial institutions, bound by charters that describe the types of investments they can embark upon, have had few means of putting their money into bitcoins or other cryptocurrencies. But in 2017, we’ll see a greater push towards a diversity of cryptocurrencies as investments, and ETFs, hedge funds, and derivatives will start to act as conduits for institutions to gain exposure and get into the cryptocurrency game.

Private blockchains will start feeling the burn

Private blockchains (like the Hyperledger project from the Linux Foundation, R3CEV’s Corda, and the Gem Health network) will start to feel real friction. To date, private blockchains have gotten the benefit of the doubt, receiving hundreds of millions of dollars in funding with little to show for it in production. Many of their projects are not terribly innovative, and haven’t been subjected to the same rigorous review as more public projects.

Greater scrutiny from analysts, well-informed media, and investors will put some much-needed cold water on private blockchains in 2017.

banker-bitcoin

Bitcoin will see SegWit introduction

Despite the enormous technological and political difficulties involved in upgrading Bitcoin, Bitcoin’s core developers have finally introduced Segregated Witness to the network. The benefits of SegWit are clear: a higher transaction throughput without altering the block size, no transaction malleability and faster block validation. SegWit also makes it easier to develop better wallet software and permits off-chain transactions on the Lightning Network, a protocol for scaling and speeding up blockchains.<

There are no clear downsides to this upgrade, but it’s been taken hostage in the political battle over block size. Some mining pools are refusing to switch to SegWit, holding out for a block size increase instead, which does involve trade-offs. However, the fight seems to be running out of steam, which bodes well for SegWit.

TC_illo

Bitcoin usage will not change significantly

The price of Bitcoin will continue to rise due to increased demand from investors but usage—that is, how many people are using it to actually buy and sell things in the open market—will not change substantially. Arguably the biggest application for Bitcoin over the last few weeks has been as a tool for capital flight. In China, for instance, investors are buying bitcoins as part of a rush to convert their RMB into currencies that aren’t losing value. This means the currency won’t necessarily be trading hands much. Instead people will be holding on to it as a hedge or using it to get money out of their countries.

bitcoin-split

Exchanges will become a source of scrutiny

Regulators will keep a light touch on the technologies behind cryptocurrencies, but they will look more closely at exchanges, which is where traditional banking meets the new world of cryptocurrencies.

While exchanges are an excellent resource, allowing people to conveniently buy and sell digital currencies with ease, they also centralize risk. This makes them a virtual honeypot for hacks and thefts. So increasingly we will see governments stepping in to oversee how they operate with an eye on consumer protection. Some regulation will include new ways to confirm identities and block money laundering—and in extreme cases, block exchanges all together. Take the case of Colbitex, the first bitcoin exchange in Colombia, which the Colombian government closed down in August, claiming bitcoin was not real money and therefore unregulated.

Over a relatively short amount of time, we’ve watched cryptocurrencies evolve from relative obscurity to a point where governments and financial institutions are taking it seriously and making huge investments in blockchain technologies for their own use. Through 2017, we’ll see that evolution continue as serious blockchain platforms begin to emerge and people begin using cryptocurrencies, not just for capital flight and a hedge against hyperinflation, but for real day to day trading—and we’re not just talking pizza here.

Bryan Tuck
Partner
Markethive Inc.
(231) 487-2032

bryanhead

Join our Cryptocurrency Group. Time is running out.
https://markethive.com/group/cryptocoin

Originally published at www.techcrunch.com – Jan 23, 2017 by 

David – http://markethive.com/david-ogden

Bitcoin Prices Spike Above $900 But Turbulence Remains

January 21, 2017 David

Bitcoin Prices Spike Above $900

But Turbulence Remains

 

coindesk-bpi-chart-94

 

Bitcoin prices passed $900 today, though this feat was diminished by several rallies that ultimately failed to push its value above this benchmark. Overall, the digital currency rose to as much as $904.76, after falling below $880 earlier in the session, climbing above this level amid modest volatility.

Later in the session, the price mounted another comeback, hitting a high just above $905, according to the CoinDesk USD Bitcoin Price Index (BPI). At press time, however, the price had dipped again to a value of $894.95. This upward movement represented the latest session of relatively mild price volatility, at least compared to the sharp price fluctuations experienced earlier this month.

Most notable, however, about the day's trading, may have been the lack of any serious decline over the day's trading. Bitcoin prices enjoyed their latest climb in spite of new Chinese regulatory developments that found the nation’s exchanges responding publicly to pressures from the People's Bank of China, the country's central bank.

Bullish sentiment

Still, market sentiment has been bullish, according to figures provided by a handful of exchanges, even with the confirmation that major Chinese exchanges Huobi and OKCoin had stopped offering margin trading. The market was 91% long on 19th January, Whaleclub figures reveal. In addition, more than 53% of Bitfinex orders that were executed in the 24 hours through 22:15 UTC were buy orders, according to BFX Data.

Chuck Reynolds
Contributor

David – http://markethive.com/david-ogden

Everything You Need to Know About Bitcoin

January 18, 2017 David

Everything You Need to Know About Bitcoin

Many netizens have heard of bitcoin, the digital currency. This means it exists electronically. To be more precise, bitcoin is a type of cryptocurrency – the implication of security and encryption is important. Cryptocurrency, or digital currency, is an invention of the Internet. Basically, someone out there thought, "hey, what if…Read more. In this post, we attempt to identify 10 questions about Bitcoins that can give you a clearer understanding of what it is, what it does and how you can use it to buy products or services online.

What are bitcoins?

Bitcoin (capitalized) refers to the software or network (ie: the Bitcoin Network), while bitcoin (not capitalized) refers to the digital currency itself (ie: two bitcoins). he price fluctuates, depending on what people were willing to pay for it. It traded for as low as pennies (during the infancy stage) to as high as USD1200 during its peak in 2013.

Who developed the idea of bitcoins?

The idea of Bitcoin was conceptualized by Satoshi Nakamoto, an anonymous figure. In May 2008, he shared a white paper [PDF] about Bitcoin, a peer-to-peer cryptocurrency. Without disclosing who he was, Satoshi outlined how the currency would work: bitcoins would be ‘mined’ by computer software, transferred directly amongst users and recorded in an untamperable ledger without the need of a third party.

Part of Bitcoin’s appeal is Satoshi Nakamoto’s anonymity, who many view as a selfless act towards a new era of financial revolution. Online detectives have identified a few candidates, including a real-life Japanese person sharing the same name. Some even theorized that Satoshi Nakamoto is a pseudonym for a collective.

In May 2016, the Bitcoin community was shocked when Australian entrepreneur Craig Wright identified himself as Satoshi Nakamoto. Some people believe his claim, some didn’t, but on the whole the Bitcoin community is unaffected – the Bitcoin ecosystem is decentralized, and cannot be controlled by any person(s), including the creator.

What is so special about bitcoin?

Bitcoin is a peer-to-peer currency and runs on a system which allows you to send and receive bitcoins without a third party. To put simply, fiat currencies rely on third parties, such as banks or payment processors like Visa, to verify the transaction. This is how you and I can ensure payment sent was indeed received. However, bitcoin transactions are recorded in a public ledger called the bitcoin blockchain. This information are permanent and publicly viewable on Blockchain.info and cannot be edited or deleted.

This means that the transaction records act as proof of transaction. Bitcoin is also programmed to be non-duplicable, which means double spending is highly unlikely.

What is decentralized currency?

Bitcoin is also a decentralized currency, as in no one government, individual or group holds authority over it. This makes bitcoin spendable anywhere in the world as long as the receiver accepts bitcoins as payment.

Decentralised currencies are a unique concept. Similar to the internet, it is free from geographical boundaries – this is why bitcoin is also dubbed ‘the currency of the internet’.

Due to lack of control and regulations, many countries are understandably wary of bitcoin – and other cryptocurrencies in general – but some progressive countries such as Japan have started to recognize it as currency.

Is bitcoin anonymous?

Bitcoin’s anonymity is a myth. Or rather, it is now much harder to make anonymous transactions with Bitcoin. Because as the ecosystem matures, many bitcoin service providers have started implementing KYC/AML regulations. KYC/AML stands for know your customers/anti-money laundering . This requires users to submit proof of identity and proof of residence.

It is also fairly easy to trace bitcoins. Bitcoins are usually bought from bitcoin exchanges, received as payment, or donated. With transaction details publicly viewable online, it is possible to trace where the bitcoin came from.

 How do you use bitcoins?

Bitcoin can be used for spending, similar to money. Some people also keep them for investment purposes, while others prefer to use them as a method to make international money transfer.  Bitcoin exists electronically and is kept in ‘bitcoin wallets’. There are many types of bitcoin wallets: desktop wallet, mobile wallet, online/web-based wallet, hardware wallet and even paper wallet.

To read more about bitcoin storage, check out this article by CoinDesk. You can have as many wallets and bitcoin addresses (where you receive money from others) as you like.

How many people are using bitcoin?

Estimates vary – it is hard to find out the exact number of people who use Bitcoin. One way to measure number of bitcoin users is by measuring the number of bitcoin wallets. According to CoinDesk’s State of Bitcoin and Blockchain 2016 report, bitcoin wallets doubled to 12.77 million in one year, from the end of 2014 to the end of 2015. Even though many bitcoin users have more than one wallet (it is common to hold a few wallets), this is an indication that the number of bitcoin users worldwide is increasing.

Another way to estimate bitcoin usage is by the number of bitcoin transactions, which has steadily increased. Although this could mean that the same people are simply making more bitcoin transactions, it is fair to assume that there are new bitcoin users in the mix, too.

How do I acquire bitcoins?

There are three main ways to get bitcoins: mine them, buy them, or work for them.

Bitcoin Mining
Bitcoin mining used to be really profitable. However at the current time it is no longer cost effective for the average individual. One will need to buy specialised Bitcoin mining equipment, get/rent dedicated spaces for them, and pay their associated costs (rental, electricity and cooling costs).
Buy Bitcoins
You can buy bitcoins from many online exchanges. There are a lot more options now than ever before – there are global bitcoin exchanges and also country-specific bitcoin exchanges. You can also buy them from other people via Localbitcoins.
Work for Bitcoins
Some people get paid in bitcoins, instead of cash currencies. Websites such as XBTFreelancer… and Coinality list jobs with bitcoin payments.There are other less effective ways to acquire bitcoins. You can get (very) small amounts of bitcoins from bitcoin faucets, which pay you to look at advertisements. You can get them as donations. There are also bitcoin ‘investments’ but if you wish to not lose money, Badbavoid companies that are listed in itcoin Badlist.

How do I send/receive/spend bitcoins?

Bitcoin wallets come with bitcoin addresses, which represent a destination, similar to an email address. Bitcoin addresses are alphanumeric, between 27-34 characters in length. Many bitcoin service providers have user-friendly user interface which allows users to generate bitcoin addresses, send and receive bitcoins.

To send bitcoins, users simply have to ensure positive balance in their bitcoin wallets, insert the receiver’s bitcoin address, and hit send. There is a small miner’s fee to process the transaction – miner’s fees are given as a reward and incentive to Bitcoin miners for maintaining equipment. Bitcoin transactions usually take less than an hour to arrive, but it can take longer or shorter depending on the fee amount and the bitcoin service provider.

You can spend bitcoins anywhere that accept bitcoins as payment. You can also use a Visa/Mastercard-linked bitcoin debit card issued by companies like Wirex or Coinbase.

What are bitcoin’s disadvantages?

Depending on who you ask, you’ll get different answers. Coders and programmers might argue that bitcoin is already an outdated network, compared to some of the newer cryptocurrency networks available. Here we will concentrate on bitcoin’s disadvantages to the casual user:

Advanced digital knowledge is necessary

Bitcoin can be stolen in many ways. It is the bitcoin owner’s responsibility to keep them safe, and this meant implementing additional layers of security such as 2-factor authentication. Keeping them in web wallets can be dangerous. If you have a significant amount of bitcoins, you are advised to keep them in hardware wallets such as Trezor or Ledger.

Bitcoin service providers can be hard to trust

The biggest names have failed the Bitcoin community. Who can forget the Mt. Gox incident in 2014. It was the biggest bitcoin exchanger at the time and practically disappeared overnight along with almost 745,000 bitcoins. More recently in 2016, thieves stole almost 120,000 bitcoins during the Bitfinex hack – and experts still don’t know how they did it.

Lack of acceptance

Cold hard cash is still the widest and most used form of payment – it’s acceptance is second to none. By contrast, bitcoin is only accepted at a handful of shops. However, bitcoin debit cards help to address this issue – linked to payment processors, they help make bitcoin spending a bit easier.

Lack of protection

In general, bitcoin is not considered legal in most countries around the world. Therefore, theft or scam victims have almost no option for recourse. However, the legal landscape is ever-changing and one of the best spots to update yourself on where bitcoin is acceptable or not is Bitlegal.io.

Anti-bitcoin politicians

While many countries around the world mainly cautioned the public against the risky nature of Bitcoin, some politicians or political parties have extreme views about bitcoin. Russian and French lawmakers are considering banning it altogether.

Wrap Up

Bitcoin is cool, but the underlying technology behind it – the blockchain – is even cooler. Turns out, having a method to record data in a way that cannot be tampered or deleted is a good thing. It is also a cost-effective method to store information. Many companies including major banks have expressed interest in the blockchain technology.

David Ogden
Entrepreneur

David – http://markethive.com/david-ogden