Bitcoin Chart Analysis. UPTADE!

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An update on the Bitcoin chart analysis, since everyone is so bullish at the moment.BTC has currently formed a nice trading channel. As it might seem at first glance, price action upon resistance level seems to be weak due to low bounces. However, seeing the highlighted candle we see pretty aggressive wick which means that the selling power is still there.

The two most likely scenarios are as presented in the picture (insert might go up down or sideways meme here). To make a decent decision you must observe the volume and order book at current level upon reaching the resistance – possibly on lower timeframes. The most likely scenario for Bitcoin is the bearish one due to the fact that there is low volume. If Bitcoin price accumulates at the resistance that is a no go for short because that shows a weakening of the selling pressure. Otherwise, there is not a reason for being bullish. Bitcoin price made a lower low, and from a FA perspective, a new bull run is very unlikely.

BTC/USD hourly chart

It must be mentioned that trading these ranges can be very profitable. Combining S/R levels with RSI oversold/overbought areas are easy low-risk trades.

Bitcoin Chart Technical Analysis. Thursday, April 4

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Today let’s analyze Bitcoin charts. Recently Bitcoin has gone +20% and there have been many speculations on why that happened. It remarkably grew by $1000 in a little more than an hour.
Bitcoin experienced yet the most significant rally this year. When Bitcoin went pass $5,200 we advised you all to be careful on our social media pages:

#Bitcoin goes past $5,200! We all know that those who were waiting for a bigger drop, now are biting their nails and…

Gepostet von bestcoininvestments.com am Mittwoch, 3. April 2019

But after a good run-up, now we are starting to have a minor correction. Higher timeframe still screams for a cooldown due to the fact that the RSI is still overbought. Lower timeframes are also oversold and just bounced off support on 1H charts which signals for a possible small upwards move for Bitcoin.

However, Bitcoin chart’s short timeframe trend seems to have reversed as shown by the H&S pattern. Although it is not perfectly symmetrical, it is an indication of a forming lower high which means – signals for a possible trend reversal!

“They laughed when I created Bitcoin, but when it started to grow…” – Satoshi Nakamoto

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This article is updated on February 18th, 2019, regards the latest news on Craig Steven Wright

Ten years ago the Bitcoin white-paper, also called as “Bitcoin: A Peer-to-Peer Electronic Cash System” was first published. It was posted by an anonymous pseudonym Satoshi Nakamoto on October 31st, 2008. To this day people are still exchanging opinions on what, who or they are. Some speculate that he could be Japanese because of the Japanese-like pseudonym. Some say that he might be British because of his perfect English writing style in his posts. Also, people believe that it might be a group of people rather than just one. Nevertheless, there have been multiple people claiming that they are the real Satoshi Nakamoto, but could never back the claim. Also, many journalists have tried to find out who the mysterious creator of Bitcoin is, but all evidence is circumstantial.

There are multiple rumors who he, they or it might be, but people have speculated and investigated a lot over the mysterious Bitcoin creator. However, there are a few stories which stand out.

Who is Satoshi Nakamoto?

Craig Steven Wright

Craig Steven Wright. Image from bbc.com

He is an Australian computer scientist and entrepreneur. In 2015 Wright publicly announced that he is the real Satoshi Nakamoto. That raised a lot of attention and subsequently his house got raided by the Australian Federal Police. After the raid, they stated that the “matter is unrelated to recent media reporting regarding the digital currency Bitcoin.” 

Next, he eventually deleted his internet personality. About a year later, on May 2016, he announced on Twitter that he is indeed the real Satoshi Nakamoto and he has proof to back his allegation. The crypto crowd was so skeptical about such a statement that Wright eventually stepped back and said that he “didn’t have the courage” to reveal his identity.

An oath to testify that he created Bitcoin

Now, after some time, he is willing to testify under oath, again saying that he is the real Satoshi Nakamoto. In the statement below, he says that: “The amount of misunderstanding and fallacious information that has been propagated concerning bitcoin and any derivative system based on a blockchain (such as and including Ethereum) has resulted in my choice to start to become more public. The system I created was designed in part to end fraud as best as that can be done with any technology.”

This comes after a medium post by himself, where he explains the history behind the idea of Bitcoin. He dismisses Wikileaks and Ross Ulbricht, saying that they are criminals and, most importantly, he says that Bitcoin was never intended to be an anonymous money-transfer system. “Bitcoin was not designed as an anarchist system. It was designed to allow trade and commerce, but in the limits of the law,” he claims in his blog post.

Wikileaks fights back

Wikileaks later fired shots back at Craig S. Wright in Twitter providing a snapshot of proof that Craig Wright had altered his old 2008 blog post “to make it seem like he was working on cryptocurrency in 2008”:

On the other hand, Gavin Andresen, a chief scientist at the Bitcoin Foundation, says that Craig Wright provided cryptographic proof to only him on a brand new laptop. He demonstrated, with a private key, how he can access the very first bitcoin block. “I think that he is Satoshi,” he says in an interview back in 2016.

Proof or not?

On one side, yes ,of course, he provided proof, and it would be foolish to provide the actual key to the wider public, because of security measures. But on the other side, that’s only Gavin. That’s only one person. For as far as anybody knows, they could be in an agreement. But again – why? During the Consensus 2016 conference, Gavin Andresen was a part of panel discussion along with Vitalik Buterin. Gavin again said what he had said before, that Craig provided cryptographic proof on a laptop, that he can access the very first Bitcoin block and so on. At this point, just because he repeats it so many times, it almost seems like a made up sentence.

But then Vitalik stepped in to quickly address his thoughts on the subject:

Twitter on fire

However, the disbelief among crypto-enthusiasts again hits high, as many tweeters share their take on this.

They even share ridiculous conspiracy theories:

To tell the truth, there is so much controversy on this subject and so many sides to take. It is fair that people are confused, and don’t know who to believe. But the fact that Craig S. Wright has claimed this multiple times, can be seen in different perspectives. Bitcoin now is fully a decentralized medium and now it does not matter who created it, or for what purpose was it created. It is building it’s own future now, and the fact that Craig is or is not Satoshi, won’t change anything.
But the last sentences in his blog post, most certainly does not seem like something that Satoshi would ever say: “Bitcoin started because of my ideas. It was my design, and it is my creation.

And, making certain that it cannot be subverted by criminals is and remains my duty.
I was Satoshi.”

Dorian Prentice Satoshi Nakamoto

Dorian S. Nakamoto, image from Nick Ut, AP.

This man is a Japanese American living in California. Dorian is a physicist who, basically all his life, worked on classified projects for the U.S. Military and various significant companies. On his free time, he likes to collect train models from Britain and program. In a news article from 2014, by Newsweek, a reporter tracked down Dorian S. Nakamoto and engaged in a thrilling story which sounds staggering.

Leah McGrath Goodman meets Dorian Prentice Satoshi Nakamoto.

“The day I arrived at his modest, single-family home in southern California… at one point he did peer out, cracking open the door screen and making eye contact briefly. Then he shut it. That was the only time I saw him without police officers in attendance,” writes Leah McGrath Goodman in her intriguing article. His brother describes him as a very smart, intelligent, but “very focused and eclectic in his way of thinking.” His family says that for most of his life, he was preoccupied with money and secrecy – the two things Bitcoin is known for.

Disappearance

In his life, there are a few moments where you can draw parallels with the information known about Satoshi Nakamoto. For example, during 2011, Satoshi Nakamoto disappeared, after his partner Gaven Andersen told him that he had accepted an invitation to speak with the CIA (Central Intelligence Agency). That coincides with health issues suffered by Dorian S. Nakamoto. He was dealing with prostate cancer, and at that time he had had a stroke, explains his wife.

“He’ll deny everything”

Possibly the most exciting and intriguing quote from the article is when Leah contacted Dorians’ younger brother Arthur Nakamoto. During a phone conversation, he said: “He’s a brilliant man. I’m just a humble engineer. He’s very focused and eclectic in his way of thinking. Smart, intelligent, mathematics, engineering, computers. You name it, he can do it.” And this is where it gets suspiciously alarming. He continues in a rather advisory tone: “My brother is an asshole. What you don’t know about him is that he’s worked on classified stuff. His life was a complete blank for a while You’re not going to be able to get to him. He’ll deny everything. He’ll never admit to starting Bitcoin.” Although, many people have reviewed the writing style of the Bitcoin White-paper by Satoshi Nakamoto and denied the resemblance to Dorian.

Hal Finney

Hal Finney and his wife. Image from wired.com

This is yet another potential candidate who might be Satoshi Nakamoto. He has worked in a cypher-punk movement and as well as a cryptography writer. Andy Greenberg in his article, which was posted a few days after the Newsweek’s Leah McGrath Goodman article on Dorian S. Nakamoto, has done in-depth research on Hal. He found out that Hal Finney lived nearly a few blocks away from Dorian S. Nakamoto in Temple City, LA. Also, he is the second person who had used Bitcoin back in 2009.

Hal Finney was part of the first Bitcoin transaction

In the very first Bitcoin transaction, on January 11th, 2009, Satoshi Nakamoto sent 10 Bitcoins exclusively to Hal Finney. Although the fact is that Dorian S. Nakamoto has no resemblance to the Bitcoin White-paper, Andy Greenberg collected around 20,000 character samples from Hal Finneys blog posts and mailing lists and sent it for writing an analysis. The results were shocking – it turned out that the writing in “Bitcoin: A peer to peer Electronic Cash System” was surprisingly similar to Hal Finneys writing style. The researchers said that this had been the closest candidate they have analyzed over the years. In this quote in the e-mail which the chief scientist John Noecker wrote to Andy Greenberg, he says: “So, it seems to me that you may have found the real Satoshi Nakamoto.”

Denies everything

However, this does not prove that Hal could be the inventor of Bitcoin. First and foremost, Hal denied his engagement in the making of Bitcoin. In an e-mail he wrote to Andy, he says: “I’m flattered, but I deny categorically these allegations.”

In his article, Andy speculates on a few things. First, he thinks that judging by the fact that Hal Finney lived almost next to Dorian, he could’ve borrowed the name of Dorian – Satoshi Nakamoto, and used it as a pseudonym for his actions.

On the other hand, he thinks that Hal could’ve been a ghost-writer for Satoshi, hence the similarities between Hal’s writing and the Bitcoin white-paper. Finney also developed a proof-of-work system in the late 90’ties that closely resembles the one which is in Bitcoin. Hal Finney died on August 28, 2014, suffering from ALS (amyotrophic lateral sclerosis).

Nick Szabo

Nick Szabo. Image from Decrypt Media

Nick is a decentralized currency enthusiast, who had worked on a similar project to Bitcoin – “Bit Gold”. By far, many people refer to him as the real Satoshi Nakamoto, as there are a lot of clues which justifies that. For example, Skye Grey, an internet researcher, found many writing style similarities between Nick Szabo’s posts and the Bitcoin White-paper. By running a reverse textual analysis, she found dozens of unique phrases. In her article, she writes: “I must stress this: an open, unbiased search of texts similar in writing to the Bitcoin white-paper over the entire Internet, identifies Nick’s bit gold articles as the best candidates.” Bitcoin itself is built on top of Bit Gold ideas, which makes this even more suspicious.

Nick edits his articles after Bitcoin launch

Another somewhat speculative evidence is that when Bitcoin came out, Nick Szabo kept quiet about it in his public comments. For someone who is deeply involved in the ideas of a decentralized currency, this seems rather odd that Nick hadn’t mentioned Bitcoin months after it came out.

After Bitcoin experienced its launch, Nick edited his previous Bit Gold articles, precisely one month after the Bitcoin white-paper got published. Again, this is just a speculation, but you cannot deny the obvious similarities. Of course, Nick has reportedly renounced his connection with Bitcoin.

Other possibilities

Many have researched the mysterious pseudonym who created Bitcoin, and such things as the NSA (National Security Agency), the Illuminati, and even A.I. (Artificial Intelligence) revolved around consideration. Many things lead up to as why the NSA could’ve created Bitcoin. For example, the most persuasive argument is that the NSA developed the Bitcoin hashing algorithm – SHA256. Mohit Kumar, in his article for Hacker News, says: “The NSA apparently possesses groundbreaking capabilities against encrypted voice and text communication and has invested billions of dollars since 2000 to make nearly everyone’s secrets available for government consumption by cracking every encryption. But we don’t know precisely how much, maybe including Bitcoin too?” Also, they did a paper in 1997 called “How to make a mint: The cryptography of anonymous electronic cash.” This presented their ideas into making a viable cryptocurrency.

Mike Adams in his article “Evidence points to Bitcoin being an NSA-engineered psyop to roll out one-world digital currency” has even made a 10-step possible plan on how the NSA and Globalists might use Bitcoin to subordinate the society in the future.

A screen shot from Mike Adams article

Satoshi Nakamoto’s net worth

This is yet another mystery hidden in the “files of Bitcoin”. There are many accusations on how much Bitcoin Satoshi holds. One thing is for sure – he still hasn’t touched them. Will he ever? That is the question.

The possibilities

People have been researching through the first addresses in the Bitcoin network, to find a pattern and possibly link the dots to a positive outcome. The numbers vary from 1,000,000 BTC, 980,000 BTC or even as low as 66,9 BTC in the original first address in genesis block 0.

Screen shot of the Genesis Block address

People speculate that Satoshi might have mined one million coins in the very beginning of Bitcoin. Many are arguing that the founder was the first miner, and thanks to that, he got hold of the million coins. However, others say that this is not true, as, at the time when Bitcoin first saw its daylight, there was more than one miner. Also, they justify this with the theory that “If you were Satoshi, would you start mining the instant you announced bitcoin? That would be an unfair head start, right?”

1 million Bitcoins

The one million bitcoin story has emerged from the idea that claims that every unspent coin mined in the first year of Bitcoin is Satoshis. That could not be entirely true, because the transaction history clearly shows that there were multiple miners at that time. Could they all be Satoshi? It’s not clear.

However, Sergio Demian Lerner did research on the Satoshi mining patterns in 2013. Judging by his estimates, Satoshi mined about 980k Bitcoins in the period from the genesis block to April 20, 2013. He created a graph of all the blocks from 0 to 50000, which shows that a single computer solved most of the blocks. Within these blocks, he masked all the blocks that were not in the Satoshi pattern and came up with 19600 blocks which would lead to 980k BTC. Judging by current exchange rates, that would be around $3,671,481,800. However, Sergio says that this data has a 0,1% error in value since he did the masking by hand.

Sergio’s graph of the first 50,000 blocks. The black color represents the Satoshi mining pattern

Hard forks

More importantly, this rules out all the Hard Forks that Bitcoin has had. Bitcoin Cash, Bitcoin SV, Bitcoin Gold, Bitcoin Diamond, Super Bitcoin, Bitcoin Platinum, etc. If you take it as a fact, that Satoshi is still alive and can redeem his coins, then the approximate number is just mind-blowingly out of this space. But those are just numbers in the air.

Chart Showing 2017 BTC Forks. Image from Anton Bukov

Conclusion

Regardless of how many Bitcoins Satoshi owns, he has never yet touched them. People believe that he might be dead and that his treasury of Bitcoins could only be cracked some day. Will we come to that day? Also, currently the biggest Bitcoin holder is the FBI (Federal Bureau of Investigation), which seized more than 174k Bitcoins during the Silk road incident. After which Ross Ulbricht, the founder, was sentenced to jail, and the #FreeRoss movement arose. The FBI linked all these Bitcoins to Ross.

But this doesn’t clear the question on who was Satoshi Nakamoto. There are multiple figures who’s biographies could be linked to the mysterious personality, but all of them have a few “plot-holes”.

Conspiracy theory

My conspiracy theory guess would be that Satoshi Nakamoto indeed was a group of multiple people working on Bitcoin. For example, the NSA developed the SHA256 algorithm, Dorian was a classified programmer, Nick was writing the White-paper, Hal shared his PoW idea, and was there to help Dorian to test and find bugs in the Bitcoin code. The NSA helped with financing and other practical things this group needed. All these figures, if connected, came up with a sophisticated plan on how to hide their work on the issue, created stories and alibis. So that the researchers, even if wanted, couldn’t find the exact truth.

They could have anticipated the massive popularity that Bitcoin could reach, and already before the time came up with multiple articles and made the core of the Bitcoin so crooked and complicated that no one could dig deep enough to find out the truth. The pseudonym itself – Satoshi Nakamoto, implies on the creator being a single person. Meaning, the researchers would search only for one person. Reading about this subject made me think that this sounds very much like a well-planned mission.

Back to Earth

Conversely, to what I stated above, two things make me stop and think about this on a deeper, more humane level.

  • First, why did Dorians’ brother say that? Why would he warn Leah? If Dorian S. Nakamoto has officially stated, with the help of his attorney, that he is not the creator of Bitcoin, then why does his brother say such things as “he will never admit starting Bitcoin” and hangs up the phone? That sure sounds very suspicious.
  • And second, why did Nick Szabo get off the grid when Bitcoin launched. He disappeared for a couple of months and did not share his thoughts on the revolution-like subject. When, in fact, he has dedicated a fair part of his life researching and developing similar ideas, hence Bit-Gold.

Despite what the theories are, the mysterious Bitcoin creator still stays anonymous. We could see more in-depth research in the future, but that all is to come.

Source:

https://blockonomi.com/who-is-satoshi-nakamoto/
https://www.newsweek.com/2014/03/14/face-behind-bitcoin-247957.html
https://likeinamirror.wordpress.com/2013/12/01/satoshi-nakamoto-is-probably-nick-szabo/
https://www.forbes.com/sites/andygreenberg/2014/03/25/satoshi-nakamotos-neighbor-the-bitcoin-ghostwriter-who-wasnt/#32f430874a37
https://techcrunch.com/2013/12/05/who-is-the-real-satoshi-nakamoto-one-researcher-may-have-found-the-answer/
https://cryptoinsider.21mil.com/who-or-what-satoshi-nakamoto-deep-dive-nsa-ai-illuminati/
https://www.naturalnews.com/2017-12-10-evidence-points-to-bitcoin-being-an-nsa-psyop-roll-out-one-world-digital-currency.html#
https://coincentral.com/how-rich-is-satoshi-nakamoto-today/
http://time.com/money/5002378/bitcoin-creator-nakamoto-billionaire/
https://www.reddit.com/r/Bitcoin/comments/7f9o5n/how_did_satoshi_get_his_1_million_btc/
https://bitslog.wordpress.com/2013/04/24/satoshi-s-fortune-a-more-accurate-figure/
https://www.wired.com/2013/12/fbi-wallet/

Photo by Min An from Pexels

Bitcoin will sky-rocket by 90% in 2019, can it happen?

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Many leading economists, crypto enthusiasts, and thought leaders have expressed their opinion on whether we will see a Bitcoin price increase in 2019. We compiled some of the loudest and justified comments on the price of Bitcoin from 2019 to 2020. Some say Bitcoin will be $60,000, some that it could soar to such levels as $200,000.

Saxo Bank

They think Bitcoin will increase a lot this year. The Bank says that the Bitcoin price will rise above $60,000 in 2019! However, they also predict that the price of Bitcoin will first crash and lose more than 98% of its value!

“Bitcoin will continue to rise – and rise high – during most of 2019 but Russia and China will together engineer a crash,” Two Saxo Bank analysts say. They think it’ll crash because of new cryptocurrency regulations/laws from governments.

Mihail Lala, the founder, and CEO of Wawllet

He has a Bitcoin price prediction for 2020. Mihail thinks that Bitcoin will get to over $100,000 by 2020.

“The increase will not be proportional, as nowadays the ratio between Bitcoin, ETH and altcoins is not natural. By balancing the ratio, Bitcoin will lose a little bit of ground to ETH and altcoins, but will keep its lead on the market up to a cliff of 50,000 USD, which will be very fast pulled back, probably until the beginning of 2019. As more and more entities are building channels for regular customers, the late majority will enter the stage during the second half of 2019, which will push Bitcoin to 6 digits in 2020.”

Mihail Lala

David Garrity, the CEO at GVA Research

In a Bloomberg interview, he told that Bitcoin is going to crash as low as $5,000 this year. To say nothing of his opinion, the Bitcoin price at the moment is lower than that resting at $3,417 at the time of writing. He got that wrong, but the fact that the price saw a correction was right.

However, he believes that by the end of 2019, it will increase. He says Bitcoin will get to almost $20,000, just like we saw at the end of 2017.

John McAfee

There are also eccentric people like John McAfee (the founder of McAfee Security). He predicts that the Bitcoin price will keep increasing this year. He also said it’ll be $500,000 by 2020. However, later he came out with a tweet saying that when he first predicted the price of BTC, he used a different model, which predicted a $5,000 Bitcoin in 2017. “BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my d*ck if wrong,” he says in a tweet. That’s a harsh bet, but our prediction about McAfee’s prediction is that if Bitcoin doesn’t reach $1 million, of course, he will never eat his own genetelia. However, he will refer to the actual quote, where he has never stated that BiTcoin will reach the price of one million dollars, but instead, he said BiRcoin. That would be one way how he could get out of the harsh bet.

Sonny Singh, Chief Commercial Officer of Bitpay

Sonny Singh predicts Bitcoin at $20,000 by the end of 2019
Singh agrees with Novogratz that $20,000 is a reasonable price target for Bitcoin by the end of 2019. Interestingly enough, he predicts that BTC will climb to $20,000 and will never drop below $15,000 anymore after that. 
He thinks that a new bull run will be because of the launch of products by institutional companies such as Fidelity, Bakkt, Square and BlackRock. In an interview with Bloomberg in November 2018, he said: “Next year will see new players and miners emerge in the industry. We will not see any rapid shift but by the end of Q1 or Q2, Bitcoin will emerge as a viable commodity.”

Anthony Pompliano, founder of Morgan Creek Digital Assets


His first prediction didn’t come through as he said that Bitcoin will hit $50,000 by the end of 2018. Of course, he needed to admit that his prediction was wrong. Pomp thinks we might see BTC drop to $3000 first, and says it might take until Q3 of 2019 before we see a positive trend again in the market. While this is playing out right, some believe that Bitcoin might drop even lower that that.

In a blog post, Pompliano states: “Bear markets continue to last longer — each bear market is measured from peak to trough during a prolonged drawdown period. The first bear market lasted ~160 days (2011) and the second bear market lasted ~400 days (2013-2014). The current bear market, if it follows the historical trend, is likely to continue for 650 days. If this comes to fruition, the crypto markets won’t begin recovering from the recent negative price movements until Q3 of 2019.”

Sam Doctor from Fundstrat

In 2018, two analysts from Fundstrat predicted Bitcoin to reach $36,000 by the end of 2019. They based the opinion on the growth of the mining infrastructure. Sam Doctor, Quant Strategist at Fundstrat, said that based on expected computing hash-power and breakeven cost growth of miners, Bitcoin could hit $36,000 by the end of 2019, with an upper end of $64,000 and a lower end of $20,000.

Ronnie Moas

Ronnie Moas is a cryptocurrency analyst and he predicted that Bitcoin will reach $28,000 in 2019. According to Moas, ‘institutions & the top 1% are buying as they did in the 2008 stock market crash’. In September 2018, he warned smaller investors that ‘you caught the move from $600 to $6,000… You will miss the move from $6000 to $60,000’.

Moas added that it is “sad to watch the top 1% scare the crap out of you, separating you from your BTC”. The increasing demand for and the decreasing supply of Bitcoin will cause the price of BTC to rise in 2019.

Fran Strajnar, CEO of Brave New Coin


Strajnar also expects an increase in the price of Bitcoin. He predicts it to hit $200,000 until January 1, 2020. In an interview with Inverse in 2018, he stated that “the adoption rates are continuing to be quite steady, and adoption rates heavily correlate to the price, so therefore, unless for some reason people just simply stop continuing to adopt Bitcoin, we should see $200,000 per Bitcoin by 1st January 2020 at the latest.”

Source:

https://altcointoday.com/9-industry-experts-share-future-bitcoin-price-predictions/
https://www.inverse.com/article/44619-bitcoin-price-fran-strajnar
https://www.bitdegree.org/tutorials/bitcoin-price-prediction/#Saxo_Banks_Bitcoin_Price_Prediction_The_Future_Of_Bitcoin

Photo by André François McKenzie on Unsplash

Updated! Slovenia’s Bitcoin city

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In Slovenia, Ljubljana a large warehouse district now is called Bitcoin city. It was founded in 1954, later repurposed in 1990 as a commercial shopping area. The area now is acclaimed “Slovenia’s largest shopping destination” and, as a matter of fact, is called BTC city. They introduced their strategies to the world of cryptocurrencies of becoming a Bitcoin city.

An Ecosystem that will Develop Cryptocurrencies and Advanced Technologies

BTC City has everything from hotels, office spaces, sports complexes to cinemas, waterparks and retail shops. Also, the city came up with a business plan. They claim that it is “the first of its kind in the world to provide its visitors, consumers and business partners with an ecosystem that will develop and integrate advanced technologies based on state-of-the-art approaches (blockchain, AI, Virtual reality, Augmented reality, Machine Learning and the world of cryptocurrencies),” says the Executives of BTC city.

They also say they’re hoping Bitcoin City will flourish new businesses that push cryptocurrencies toward mainstream adoption and help to further develop blockchain technology. 
“Bitcoin City will create an open society which will enable users to pursue their missions as well as develop their business environments in line with their wishes, needs and operating policies,” they said.

Government Officials Treated with Crypto-Coffee

Even the ex-Prime Minister of Slovenia, Miro Cerar, visited the BTC facility. In the meeting, the former Slovenian State Secretary Tadej Slapnik, who is also a chairman at the World Blockchain Hub, bought him a “cup of crypto coffee” with cryptocurrency. Elipay supported the transaction. Eligma, which is a Fintech startup, developed the app. In the effort to become a BTC City, the plan is that Elipay will be the transaction provider in BTC City.

Elipay taking over Slovenia

More than 240 stores within Slovenia, mostly in Ljubljana, already are using Eligma’s cryptocurrency transaction system Elipay. Users can pay with Bitcoin, Bitcoin Cash, Ethereum and their native currency Eli token.
Ljubljana is the economical Capital of Slovenia.
The stores where users can spend their crypto are ranging from bars and restaurants to shops and salons.
However, Elipay claims to become an all-in-one app integrating credit, debit cards, and loyalty programs. Moreover, their further plans involve expanding to U.K. this year.
Additionally, in Ljubljana, there are several one-way cryptocurrency ATMs, along with the Blockchain Think Tank and what executives call the biggest crypto mining rig in Slovenia. Not sure how is it doing during this destructive bear market. 

Bitcoin city forming into a Bitcoin country.

We congratulate Slovenia and its economic capital Ljubljana for taking such big steps towards cryptocurrency adoption. It’s good to see the bitcoin name spread! It looks like the bear market has no influence on Slovenia and Elipay, as they are achieving new goals and setting new highs.
What looks like a Bitcoin city from the news articles, now is forming into a country made for cryptocurrency use and cyberspace. Slovenia quietly is stepping a large foot in the crypto arena.
Judging by this article Slovenia has no rules against cryptocurrencies whatsoever. They even haven’t got a capital gains tax burden on crypto. However, mining is a different story. Crypto-mining carries a tax burden, as does conducting business using cryptocurrencies as a method of payment. But this doesn’t seem like is disturbing the business development of Bitcoin city.

The best of luck to Bitcoin city, which now is starting to shape into a world’s first bitcoin country!

Source:

https://news.bitcoin.com/slovenias-shopping-center-btc-city-genuine-bitcoin-city/

https://bitcoinmagazine.com/articles/slovenia-plays-host-worlds-first-bitcoin-city/amp/?__twitter_impression=true

https://cointobuy.io/countries/slovenia

Photo by Sami C from flickr.com

Beginners guide for Stablecoins.

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Stablecoins are an essential tool for every crypto trader. Whether you are an investor, a trader or you just like to spend half of your paycheck on dogecoins it is important to hedge your bets in any case of unpredicted events. For example, you would rather like to have your coins in a stable store of value than crypto if US government is deciding whether on not to ban bitcoin. For such an erratic events crypto community has created a solution – stablecoins!

What is a stablecoin?

By the definition, stablecoin is a “Cryptographic asset that is optimized in the means of retaining its value during times of volatility”. In simple words – a stablecoin is like any other coin but with a fixed value. Issued on a blockchain, Stablecoins does not require third parties for a transaction and is fully transparent. They achieve the effect of stability by many different techniques such as backing the coin with stable assets, have a guaranteed right of exchange to other assets or mimicking equity. To really understand the fundamentals of a stablecoin it is best to analyze some practical examples of the most used stablecoins:

Tether: the colossus of stablecoins

In a view of the aforementioned three stablecoins, the most used stablecoins are backed by a fiat currency. Tether (USDT) which is the most used one of all three, is a stablecoin backing 1:1 with USD. It is first of its kind in the means of fiat backed stablecoin and has endured the most widespread adoption. Tether states in their website that it is secure, fully backed by USD, transparent and renounced by media giants such as WSJ, Coindesk and Cointelegraph. As all other cryptocurrencies, tether has blockchain technology behind it, but it is failing at decentralization. Tether Ltd. controls the emission of coins, which consequently has created negative stigma and fraud allegations by the crypto community.

The stablecoin controversy

During the December crypto-market bull run, tether faced wrong accusations of artificially creating tether coins without USD backing. The allegations went on for more than half a year. Tether Ltd. was even subpoenaed by the SEC for an investigation. However, the fraud accusations are now ceased and full tether backing log can be accessed at their website – tether.to. 

Speculating stablecoins

There is a phenomenon that would make Keynes`s head hurt very bad – stablecoin value increase and decrease! Stablecoins are perfect as for market indicators and speculatory instruments for trading. The reason is that due to the fact that they change value proportionally with the crypto-market increases and decreases. When the market is going up stablecoin value decreases, meaning that investors are selling to buy other crypto assets. When the market goes down, demand for stablecoin increases making stablecoin value increase by 0.01-0.03 USD. At first glance, the increase can seem insignificant but if properly leveraged can give immense gains with less risk than trading other crypto assets. Some exchanges have even listed USDT/USDC pairs for trading for speculatory purposes.

Price change of tether during period of one year. Source: CoinMarketCap.com

Tip by BestCoinInvestments professionals: How to keep your wealth stable without using stablecoins?

Aforementioned reasons of possible fraud, third-party trust et cetera can make you afraid of putting your valuable resources in stablecoins. Good news is that there is a solution – creating stability by yourself using leveraged bitcoin markets. The secret of storing stable value with bitcoin is putting exactly the right short position. Shorting bitcoin with 1x leverage will give you stable USD value while still keeping your value in bitcoin. For every 1% increase of bitcoin, you will lose some bitcoin but will retain the same value in USD as your assets price increases. If bitcoin falls in value you will gain more bitcoin filling the losses in your USD value.

Remember!

You must keep in mind that some bitcoin instruments such as inverse perpetual swap contracts have long:short funding rate every 24 hours which results in lost/gained funds depending on your position and overall market situation. Choose your financial instrument wisely minimizing the margin interest rates and funding rebates. This is not financial advice. Do your own research before using the aforementioned technique.

Source:

U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether, available on: https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc, accessed 26.01.2019.
Tether, available on:

https://tether.to/, accessed 26.01.2019.
Financial data of Tether, USDcoin, TrueUSD, available on: https://coinmarketcap.com, accessed 26.01.2019.

Photo by Pexels.com

What are Bitcoin Schnorr Signatures?

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Developers are always coming up with innovative features for the blockchain family. Final testing has begun for the Segregated Witness that increases capacity. That allows more transactions on the network, simultaneously solving transaction malleability. It introduces script versioning, a Bitcoin protocol extension, paving a way for a new category of innovations. One such innovation, eagerly awaited by many Bitcoin developers, is the Schnorr signatures. With the forthcoming release of Segregated Witness, application of the Schnorr cryptographic signature algorithm could follow soon after. It could potentially improve privacy, efficiency, and scalability of Bitcoin.

How this is possible?

Bitcoin is built around a mathematical concept called public key cryptography, a system that uses two kinds of number strings, private and public keys. They are both linking mathematically, and while it is easy to produce a public key from a private one, it is near impossible to do it vice versa. If someone wants to access a particular Bitcoin address, he must first prove the ownership of the private key linked to that address. One way of doing this, without revealing the whole private key, is using a cryptographic signature. You can create it in a calculation using the private key and the transaction data. Thus anyone knowing the public key can verify the private key without actually owning it. The owner can sign a transaction without fear of revealing the private key.

This is where the Schnorr signatures come in.

Named after its inventor Claus-Peter Schnorr, it encompasses series of mathematical rules that link together the signature with private and public keys. Many experts consider Schnorr signatures to be the best in the field. They are relatively fast to verify, offer a high level of correctness, do not suffer from malleability and support multisignature. Meaning that several signatures aggregate into a new single signature.

Why not implement it?

Schnorr has not been implemented yet because Bitcoin uses Elliptic Curve Digital Signature Algorithm (ECDSA) signature scheme. Also, it would be impossible to change it without a hard fork. That is why SegWit is so important in this context. Moreover, it is a separate part of the transaction and includes all signature data, so the old Bitcoin protocol doesn’t need adjustments. However, script versioning allows implementing changes, in our case, the signature scheme, to the witness through a soft fork.

Advantages of the Schnorr update

Arguably, the most beneficent property of Schnorr, is multisignature aggregation, allowing users to send coins from multiple addresses simultaneously. Each of these inputs requires its own unique signature to be included in the transaction and sent over the network, making multisig slow and cumbersome. Schnorr allows using just one combined signature for all the participating parties, offering an obvious advantage and freeing up more room for transactions. The exact numbers would depend on the specific transaction types included in the block. A rough estimate would be around 40 percent (on top of the 60- 100 percent already gained by the SegWit). This would also allow for much more complex smart contract constructions (two-of-three, three-of-fifteen, hundred-of-hundred etc.) using the same amount of data as for a single signature.

But wait, there is more!

Another interesting benefit Schnorr signatures can offer is incentivized privacy. A trick to improve privacy, CoinJoin, allows combining multiple transactions by different users into a single transaction. This transaction would include multiple inputs from different sources and send money to multiple outputs. Done correctly, CoinJoin would drastically improve privacy, because nobody could track which inputs paid for which outputs, making it impossible to track each individual person in the given transaction.

CoinJoin is not a new invention but up until now it was quite unpractical as those using it would automatically become suspicious. However, with Schnorr signatures, users could not only combine the transactions but signatures as well. With the added benefit of a reduced size of a transaction. Therefore, using the Schnorr algorithm would not only increase privacy, but also lower the cost for everyone involved, actually the most private option would be also the cheapest one, meaning most users will opt for it, making Bitcoin more private in the long run.

Source:

Laura Savu “SIGNCRYPTION SCHEME BASED ON SCHNORR DIGITAL SIGNATURE” University of Bucharest, Romania
Hiraku Morita, Jacob C.N. Schuldt, Takahiro Matsuda, Goichiro Hanaoka, and Tetsu Iwata “On the Security of the Schnorr Signature Scheme and DSA against Related-Key Attacks” Nagoya University, Nagoya, Japan
C.P. Schnorr “EFFICIENT IDENTIFICATION AND SIGNATURES FOR SMART CARDS” Frankfurt University
https://en.wikipedia.org/wiki/Schnorr_signature
https://en.wikipedia.org/wiki/Proof_of_knowledge
https://en.wikipedia.org/wiki/Claus_P._Schnorr
https://en.wikipedia.org/wiki/SegWit
https://en.wikipedia.org/wiki/Bitcoin_scalability_problem#Soft_fork
https://docs.decred.org/research/schnorr-signatures/
https://bitcoincore.org/en/2017/03/23/schnorr-signature-aggregation/
https://github.com/sipa/bips/blob/bip-schnorr/bip-schnorr.mediawiki

Photo by Markus Spiske temporausch.com from Pexels

What is Bitcoin (BTC)? A beginners guide.

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First and foremost, the definition says that Bitcoin is a peer-to-peer (P2P) electronic cash system, as described in the white-paper. It was first published on October 31st, 2008 by Satoshi Nakamoto. In January 3rd, 2009 the first block was mined which marked the actual creation of Bitcoin. 

The abstract of Bitcoin white-paper.

Bitcoin along with Satoshi Nakamoto presented an entirely new alternative to the traditionally centralized currency transactions. A system built by the people for the people. So the primary intent is that people are the ones, who control it. Bitcoin enables people to transact money between users without the need of a centralized authority. Because of blockchain technology, Bitcoin can offer a completely transparent way to transact payments. This system can entirely question the need or importance of Banks and other similar money transfer institutions.

Also, Bitcoin was the very first cryptocurrency in the form as we know them today. Bitcoin inspired thousands of new projects, as of today we have more than two thousand cryptocurrencies in the whole wide world. Since bitcoin code is open-source, everyone can copy it and try to evolve it in their own way. That is the reason why we have so many other “Bitcoins” in the market. Everyone wants to prove that they can make a better Bitcoin, but the cold hard facts are that Bitcoin, since its creation, has never lost its #1 position. Ever. And it is very doubtable that it ever will.

Other Bitcoins. Source: coingecko.com

In addition, Bitcoin has a fixed supply of 21 million BTC. Currently, there are 17,4 million coins in circulation.

How Bitcoin Works

Bitcoins are transferred via a peer-to-peer network. That means John can easily send money to Kate via this network. When John makes the transaction, miners create new blocks where this transaction will be recorded. By doing so, miners confirm this transaction. These transactions are tracked on the Blockchain, also known as the giant-ledger.

The Blockchain

Blockchain records every single transaction that has ever been made within the network. Bitcoin blockchain produces new blocks every ten minutes. Every block in the blockchain is built up of a data structure. If a single file is corrupt in a chain, then blockchain prevents it from damaging the rest of the ledger.

Source: https://www.g2crowd.com/categories/blockchain

Confirmation

So when John makes the transaction, it goes into the blockchain and now is waiting for confirmation. Usually, for small payments, it takes these ten minutes to be verified and recorded on the chain. For larger transactions, it could take up to even an hour when the blockchain needs to create at least six new blocks to avoid payment reversing. After the confirmation, Kate receives her Bitcoins.

When looking at a government which can print out as many bank notes as they want, thus producing inflation, Bitcoin works differently. That is, Bitcoin’s blockchain is built up in a way that it controls how many Bitcoins are made and how many are being produced.

Block halving

Bitcoins blockchain has a 4 year block halving period. That means that every four years, or 210,000 blocks, the reward for miners, who produce Bitcoins with their computing power, halves. Miners produce new blocks every 10 minutes. At the moment, for every block that a miner solves the reward is 12.5 BTC. Currently, there are 70,250 blocks left until the mining reward is halved. Also, there are only 2 block halvings left to occur in the future of Bitcoin. Respectively the reward will halve down to 6.25 Bitcoins. In the next block halving, which would occur in 2024, the reward will divide down to 3,125 and stay that way until all 21,000,000 BTC will be produced.

Bitcoin’s key features

Bitcoin is decentralized. No single person or a central authority has full control over it. That means no one can freeze, lock or dismiss your money. It is based on a Blockchain. It was the first blockchain ever created and since then the development of this area has skyrocketed. Blockchain developers today are the most demanding job position in the world.

Bitcoin has a limited supply. There can only be 21,000,000 BTC in circulation. Today we have around 17,496,875 BTC in circulation. In other words, around 80% of Bitcoins have already been mined. According to estimates, bitcoin will reach its final coin figure sometime in 2140.

Bitcoin compared to Gold and U.S. monetary base. Source: https://www.forbes.com/sites/laurashin/2016/06/02/4-reasons-why-bitcoin-represents-a-new-asset-class/#4731f35d3426

Bitcoin is deflationary. Some believe that Satoshi created Bitcoin to fight the money printing governments. It is awful that every year fiat money loses so much value. For example, during Fiscal Year 2014, the Bureau of Engraving and Printing delivered approximately 6.6 billion notes to the Federal Reserve, producing approximately 24.8 million notes a day with a face value of approximately $560 million.

Ron Paul described this very well in his website, calling the Fed crazy:

“When central banks create money, those who first get the new money enjoy an increase in purchasing power before the new money causes a real increase in prices. Those who receive the money first are members of the banking and financial elite. By the time the new money reaches the middle class and working class, inflation has set in, so any gain in purchasing power is more than offset by the increase in inflation. Thus, central banking causes income inequality.”

Ron Paul

Bitcoin, on the other hand, as already mentioned, has a fixed supply. And this is the model that Bitcoin Maximalists are defending. For most people, this would seem like a utopian dream, but bear this in mind.

Imagine a society, a world, where your money not only retains its value but increases with time. Bitcoin possibly can provide this. Once reaching the total supply of 21 million, its value can only go up.

The best performing asset of all time

Anthony Pompliano called Bitcoin the best performing asset of all time for a reason. Since the creation of Bitcoin in 2009, it outperformed S&P 500, DOW JONES, NASDAQ, etc. “during the longest bull run”. Bitcoin experienced multiple declines with more than -80%.

Nevertheless, Bitcoin is still up +56,146.22% since its creation. Because when Bitcoin started, it was worth 0$. At the time of writing the price of one Bitcoin is $3,523.20.

Who created Bitcoin?

Ten years ago the Bitcoin white-paper, also called as “Bitcoin: A Peer-to-Peer Electronic Cash System” was first published. It was posted by an anonymous pseudonym Satoshi Nakamoto on October 31st, 2008. To this day people are still exchanging opinions on what, who or they are. Some speculate that he could be Japanese because of the Japanese-like pseudonym. Some say that he might be British because of his perfect English writing style in his posts. Also, people believe that that might be a group of people rather than just one. Nevertheless, there have been multiple people claiming that they are the real Satoshi Nakamoto. Also, many journalists have tried to find out who the mysterious creator of Bitcoin is, but all evidence is circumstantial.

The advantages of investing in Bitcoin

Bitcoin along with cryptocurrencies as an asset class, opened the possibilities for lots of people to start learning about investments. Before then, millennials and other people interested in investing knew about investment opportunities such as:

Shares or Equities

A share or a stock is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. Basically, this is a small portion of a company. You can only buy them as a whole, hence the indivisibility. Your shares are entirely dependent on the company and the wellness of their business.

Bonds

Bonds are also known as fixed-interest stocks. These are a form of IOU (abbreviated from the phrase “I owe you”) issued by governments and companies when they want to borrow money from investors. They pay a fixed level of interest, with higher-risk borrowers paying more in interest than lower-risk borrowers.

Commodities

Commodities such as Gold and Silver is one of the best investment opportunities of all time. There is a huge variety of commodities in the global markets. It includes Oil and Gas, Copper, Iron and even such agricultural commodities as wheat, rice, soya, lumber and so on. Similar to shares and bonds, commodity prices rise and fall depending on the supply and demand, and funds can take advantage of this.

Real-Estate

Property as an asset class is also considered as one of the best investment types in the world. If you buy land or a house, there are multiple Return of Investment opportunities. You can develop it and almost in all cases, the price will rise. Whether residential or commercial, the property has a good record in providing a financial return that beats inflation.

Investor as a slave

All these asset classes till now made the investor a sort of a slave to the specific asset class. A Broker takes care of everything. He also charges a fee for his work, which is logical. Considering this, people just handed over their money to people who they didn’t know. This makes the investor almost a slave to the particular service which provides the brokerage. Also, the investor needed to know everything about the particular market. This requires many hours of reading and understanding, especially, if we look at markets such as Commodities or Real-Estate.

Also, it required huge amounts of money to start with, and up until now investing seemed like only for the rich. For example, if you wanted to invest in stocks, you couldn’t just buy a portion of a stock, like a 0,2 part of the stock. You needed to buy one whole stock. If you wanted to invest in real estate, you basically needed the money to purchase a house or land. And those are not cheap.

However, Bitcoin introduced a whole different type of investing. It is possible to buy the smallest portion of BTC you need. People don’t have to buy a whole unit. You even can buy Bitcoin worth of $10. Or even less, if you want. People always say Bitcoin has a scaling problem, but it doesn’t. Bitcoin can be divisible into small fractions like 0.00000001 BTC, called Satoshis. 1 Satoshi is the smallest unit of Bitcoin.
Also, you don’t need a broker to do the purchasing for you. You just need to read a few beginners guides, and you’re all set. Not to mention that when investing in Bitcoin you are the core holder and owner of your investment. Of course, if you don’t use any third-party services.

The disadvantages of investing in Bitcoin

Bitcoin has been and still is a very volatile asset. It still is looking for a more stable market so we wouldn’t recommend it for short-term investments. However, lately, we can see that the BTC market is starting to mature. In the chart below you can see the weekly volatility compared to other asset classes. Bitcoin’s weekly volatility is only a percent higher than Oil.

In comparison Bitcoin’s market cap at the time of writing is only $62,4 billion compared to S&P 500’s $21.03 Trillion, or Dow Jones Industrial Average (DJIA) $7.5 trillion. You can only imagine how stable Bitcoin would be if it had a market cap of that scale.

Also, Bitcoin does not come with an insurance policy, like all the other above-mentioned asset classes. At the moment Bitcoin’s volatility is very high and it can come down as fast as it went up. Let alone the future regulations could improve or crash the price.

How Bitcoin has performed over the years.

The first data on Bitcoins’ (BTC) price goes back to July 7th, 2010, when the price was $0.05. So the first bull-run took it to $18.89 in May 29th, 2011. Then it went in a bear market for almost a year, cutting the price back to around $5. After that, a year of a slow bull market sent the price to $14, and at the beginning of 2013, it exploded to $142. Not long after, it surged its way to the first four-digit price – $1,205 in 2013 November. Then BTC went in on a two-year-long bear market lowering the rate to $228.50 in August 2015.

The biggest bull-run in Bitcoin history

After that, a three-year-long bull market began. The price completely exploded and reached unbelievable heights. The cost of one BTC was $19,000! In some exchanges, it reached even $20,000! Thanks to this bull market, lots and lots of people found out about Bitcoin. Media was covering it every day. CNBC was talking about how to buy Bitcoin and encouraging everyone on it. Everyone wanted to own a Bitcoin, which, preferably, he or she had purchased in 2013. During December 2017, it almost felt like Bitcoin is the only thing what interests people. The market was booming, new projects were coming out every two hours, and it felt like – this is it! Bitcoin has gained the needed attention – now we have to start using it.

Bitcoin chart, by Mircea Mihaescu

The problems

Along with massive popularity, came the networks’ usage problems. Bitcoin transaction fees skyrocketed and reached a shocking $37 per transaction in December 21st. That meant that small payments via BTC couldn’t be transacted. Since then the hype around Bitcoin has settled. Small payments now can be made through LightningNetwork – Bitcoins’ off-chain solution for micro-transactions. However now, the transaction fees are as low as $0,01.

The Future

Today Bitcoin accepts a total of 14,227 venues across the world. The most active areas being Europe and North America. The multiple payment cards and apps give us the possibility to spend our cryptocurrency as we want. You can buy cars, houses, boats, coffee, pay for rent, mobile services, and mainly use it as money, which it is. Just recently, during the Baltic HoneyBadger Bitcoin conference, The B Foundation was announced, which is an organization through which people will have the opportunity to finance Bitcoin.

Also, Bitcoin is slowly entering the traditional equity markets. CME and CBOE launched their first Bitcoin Futures markets back in 2017, January. Intercontinental Exchange (ICE) has launched a company called Bakkt, which will present Bitcoin Futures markets as well. However, they have failed to deliver a specific date for this launch. January 24th, 2018 was the date, but due to a government shutdown, it was postponed. Also, the SEC (Securities and Exchange Commission) soon will review the multiple Bitcoin ETF (Exchange Traded Fund) applications. These milestones can bring huge funds coming into Bitcoin, which could eventually increase the price.

However, are we all in this just for the money? Alternatively, are we in for the technological or the financial revolution? How long will it take for Bitcoin to reach mass adoption, and, in general – will it be Bitcoin?

You can read the original .pdf file of the Bitcoin White-Paper HERE.

Source:

https://citywire.co.uk/funds-insider/news/the-5-asset-classes-funds-invest-in/a568135
https://www.investopedia.com/terms/i/iou.asp
https://www.buybitcoinworldwide.com/price/
https://u.today/every-crypto-collapse-has-a-silver-lining-the-current-btc-correction-has-been-smallest-so-far
https://cointelegraph.com/news/bitcoin-is-worlds-best-performing-asset-class-over-past-10-years-says-pompliano
https://www.bitcoinblockhalf.com
https://www.investopedia.com/news/only-20-percent-total-bitcoins-remain-be-mined/
https://www.treasury.gov/resource-center/faqs/Currency/Pages/edu_faq_currency_production.aspx
https://www.federalreserve.gov/paymentsystems/coin_currency_orders.htm
https://cryptoiq.co/no-launch-date-in-sight-for-bakkt-physical-bitcoin-btc-futures/
https://www.reuters.com/article/us-bitcoin-futures-contracts-factbox/factbox-cboe-launches-bitcoin-futures-contracts-cme-to-follow-idUSKBN1E10J8
https://goo.gl/dNx2Np
https://goo.gl/WsvvCY
https://goo.gl/hAV6Pi
https://bitcoinfees.info
https://coinmap.org

Cover photo by David McBee from Pexels

Certificate instead of crypto? Venezuela starts selling Petro!

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On Monday, October 26th, Venezuela announced that the government’s issued cryptocurrency – Petro, is open for the public for purchase. The government has opened an exchange desk for the country’s national cryptocurrency at the headquarters of the Superintendency of Cryptoassets. It can be purchased directly from there (Superintendency of Cryptoassets) and from Related Activities (Sunacrip), which is in charge of the country’s regulations regarding crypto. Citizens can purchase Petro with many currencies, including cryptos like BTC, ETH, and XEM. 

Petro Pago and Petro Ahorro

Initially, the public sale was issued on November 5. However, the president Nicolas Maduro moved the event forward due to “the fluidity with which events developed and the support of President Nicolás Maduro,” says El Universal. Moreover, on November 5, two more Petro options will be unveiled – Petro Pago (pay) and Petro Ahorro (savings). Venezuela’s vice president of the economy, Tureck El Aissami said: “We are in the purchasing stage. Next week will be the savings stage.”

Certificates, seriously?

Chinese delegate showing off his Petro certificate.

That all sounds like good news, the Venezuelans can finally store their money in a safe place, but there is one but. People buying Petro receive certificates instead of crypto. The documents include the buyers’ name, signature, and fingerprints. There is no info on the fact that people would receive actual cryptocurrency. There are even photos with Venezuela’s Minister of Agriculture buying Petro and later posing a picture holding up the certificate, which would mean that it doesn’t consist of a private key. 

Is Venezuela scamming its residents?

You can buy Petro with real money like the Euro, USD, and Yuan and in return, you get… a piece of paper.

That somehow reminds me of that monkey story about how the stock market works, which is very similar to this situation:

“Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them. The man bought thousands at $10, and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at $20. That renewed the efforts of the villagers, and they started catching monkeys again. Soon the supply diminished even further, and people started going back to their farms. The offer increased to $25 each, and the supply of monkeys became so little that it was an effort even to see a monkey, let alone catch it! The man now announced that he would buy monkeys at $50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him. In the absence of the man, the assistant told the villagers; “Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35, and when the man returns from the city, you can sell them to him for $50 each.” The villagers rounded up with all their savings and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!”

Is Petro even real?

Some say that Petro doesn’t exist, due to the facts that you don’t get a private key, their block explorer is barely moving, consisting with only 316 blocks(while the block time is one minute), and that you can’t get any information on the transaction details. Also, Google has suspended the Petro wallet app from the Google Play app store. El Assami explained that this is because Google is checking the wallet crypto functionality. However, that doesn’t change the fact that you cannot download the desktop version for Windows and Linux as well.

All this leads up to the fact that Petro could not be real. Could this all just a show for the wider public?

Source:

https://goo.gl/hgMZRc
https://goo.gl/oPUJsE

Photos by Canva.com and the Venezuelan government.

Happy Birthday, Bitcoin!

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Ten years ago the Bitcoin white-paper, also called as “Bitcoin: A Peer-to-Peer Electronic Cash System” was first published. It was posted by an anonymous pseudonym Satoshi Nakamoto on October 31st, 2008. To this day people are still exchanging opinions on what, who or they are. Some speculate that he could be British because of the Japanese-like pseudonym. That is because of his perfect English in his posts. Also, people believe that that might be a group of people rather than just one. Nevertheless, there have been multiple people claiming that they are the real Satoshi Nakamoto. Also, many journalists have tried to find out who the mysterious creator of Bitcoin is, but all evidence is circumstantial. 

What is Bitcoin?

Bitcoin along with Satoshi Nakamoto presented an entirely new alternative to the traditionally centralized currency transactions. A system built by the people for the people. So the primary intent is that people are the ones, who control it. Because of blockchain technology, Bitcoin can offer a completely transparent way to transact payments. This system can entirely question the need or importance of Banks and other similar money transfer institutions. It ultimately allows sending money from one peer to another (peer-to-peer). Thus getting rid of the third-party instances such as Banks.

How Bitcoin has performed over the years.

The first data on Bitcoins’ (BTC) price goes back to July 7th, 2010, when the price was $0.05. So the first bull-run took it to $18.89 in May 29th, 2011. Then it went in a bear market for almost a year, cutting the price back to around $5. After that, a year of a slow bull market sent the price to $14, and at the beginning of 2013, it exploded to $142. Not long after, it surged its way to the first four-digit price – $1,205 in 2013 November. Then BTC went in on a two-year-long bear market lowering the rate to $228.50 in August 2015.

The biggest bull-run in Bitcoin history

After that, a three-year-long bull market began. The price completely exploded and reached unbelievable heights. The cost of one BTC was $19,000! In some exchanges, it reached even $20,000! Thanks to this bull market, lots and lots of people found out about Bitcoin. Media was covering it every day. CNBC was talking about how to buy Bitcoin and encouraging everyone on it. Everyone wanted to own a Bitcoin, which, preferably, he or she had purchased in 2013. During December 2017, it almost felt like Bitcoin is the only thing what interests people. The market was booming, new projects were coming out every two hours, and it felt like – this is it! Bitcoin has gained the needed attention – now we have to start using it.

The problems

Along with massive popularity, came the networks’ usage problems. Bitcoin transaction fees skyrocketed and reached a shocking $37 per transaction in December 21st. That meant that small payments via BTC couldn’t be transacted. Since then the hype around Bitcoin has settled. Small payments now can be made through LightningNetwork – Bitcoins’ off-chain solution for micro-transactions. However now, the transaction fees are as low as $0,01.

The Future

Today Bitcoin is accepted in a total of 13,435 venues across the world. The most active areas being Europe and North America. The multiple payment cards and apps give us the possibility to spend our cryptocurrency as we want. You can buy cars, houses, boats, coffee, pay for rent, mobile services, and mainly use it as money, which it is. Just recently, during the Baltic HoneyBadger Bitcoin conference, The B Foundation was announced, which is an organization through which people will have the opportunity to finance Bitcoin.

Also, Bitcoin soon could enter the traditional equity markets. Intercontinental Exchange (ICE) has launched a company called Bakkt, which will present Bitcoin Futures markets on December 12th, 2018. Also, the SEC (Securities and Exchange Commission) soon will review the multiple Bitcoin ETF (Exchange Traded Fund) applications. These two milestones are rumored to bring huge funds coming into Bitcoin, which could eventually increase the price.

However, are we all in this just for the money? Alternatively, are we in for the technological and financial revolution? How long will it take for Bitcoin to reach mass adoption, and, in general – will it be Bitcoin?

You can read the original .pdf file of the Bitcoin White-Paper HERE.

Source:

https://goo.gl/dNx2Np
https://goo.gl/WsvvCY
https://goo.gl/hAV6Pi
https://bitcoinfees.info
https://coinmap.org

Photo by Canva.com