Bitcoin's Next Halving Rally: Coming Soon in 2019 - CoinDesk

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

At what rate can mining productivity keep increasing?

Assuming the price doesn’t change (don't think in terms of fiat but actual goods and services), unless fees increase substantially (they are just around 1% of the block reward now: https://bitinfocharts.com/bitcoin/), mining won’t be profitable for some people after the next halving, which is bad for Bitcoin as it decreases difficulty and therefore makes it less safe (so it becomes less valuable, then mining is less profitable, difficulty drops again, price drops again... a vicious circle).
Fees increasing drastically would cause the same effect, it would make using BTC less attractive and drop its value.
Long term, to keep up with block reward decreasing by 50% every 4 years we need a combination of price increasing, fees increasing, mining productivity increasing. The price can’t keep doubling every four years indefinitely. Fees can’t increase much without hurting BTC’s price. So for difficulty to at least stay constant, we need mining productivity (hashes/electricity and other costs) to keep rising at a very high rate.
Assuming BTC rises indefinitely 5% a year, fees and difficulty stay constant, mining productivity would have to increase around 13% a year. How realistic is that?
Edit: After thinking more about the topic, I think I have the answer to my question. And I realize that the way I wrote my question wasn't clear enough.
Simply, if Bitcoin's price (imagine the price is in electricity, the same miners buy) and mining productivity can't keep rising, combined, at 19% a year at some point, there could simply be a consensus to stop dropping the reward or doing so more slowly (say "halving" it once every 8 years). That could happen several decades from now, when inflation is, say, 0.05%. I think Bitcoin users would find reasonable to keep an annual inflation of 0.05% if that rewards miners enough to keep the network safe.
After this I'm even more convinced about Bitcoin's brilliant future and inevitable triumph.
submitted by VSAlpha to Bitcoin [link] [comments]

Time to buy in

Lets start off by saying I have called a lot of the dips back in 2016-2020 just check my posts on here and bitcointalk. I know this might dip, and hell we might even see 10,500-11K again. There is just too many forces at work for this not to go a lot higher though.
#1 is you have Greyscale and other companies picking up huge amounts of bitcoin almost double even what the miners are able to produce per block. Simply put the supply is dwindling and the upward pressure will be too strong at some point. The miners tend to sell some of their rewards, but they are not selling all.
#2 The dollar is in a really bad situation here. If people are noticing the main correlation of where bitcoin price goes it lies in the strength/weakness of the dollar. With 28 trillion in debt I am not sure how we make it out of this hole. I don't think you will see it completely collapse, however the printing presses are really going full tilt which inflation is under control right now, but for how long ? One of the major currencies Dollar, Yen, Euro, or Yuan will come close to collapsing in the next few years. Fiat can only go for so long before it needs a hard re-set.
#3 Mining rewards were halved. I know this was months ago, but not having double the bitcoin being dumped is a huge advantage. The bitcoin is in strong hands / hodlers.
#3 the Defi game has changed the landscape. More and more people are going to jump on the Defi bandwagon and get their bitcoins wrapped or use Blockfi, Aave ect. In the short term these can be used to short bitcoin, but it's already creating a wave of buying so people can get the yield. This has more advantages on upward price movements as it will control the tempo. On the other side of this however is in a year or two one of these will blow up taking everyone's btc with them so be careful.
#4 On August 1st we had a sell off where they pushed the bid down from 12k to 10,500 in 15 minutes on massive sell orders and some stop loss selling. Each tumble like that is getting more and more expensive. These pushes are to scoop up the derivatives they buy before the major sell offs . This has been a ongoing trend in bitcoin from even the early years (not the derivatives side). As time goes on and there are less and less coins these are getting way more expensive to manipulate it on the short side. That's why they did the dump in such a short time frame, because the longer the dump is going to cost even more money.
Overall I can really see this taking off again soon after the consolidation. I also believe we take out the ATH here in a few months.
submitted by ridenourt to Bitcoin [link] [comments]

Catch up of Cryptocurrency News #6 Week 10/08 - 16/08

Week #6 catch-up news is finally here!!
By the end of this week we had seen the end of an accumulation period since May as we saw the market make a shot upwards. Its daily volume and marketcap increasing suddenly, many Altcoins especially in the defi sector pushing upwards. Bitcoin inched towards 12k and Ethereum jumped 12%. Chainlink also jumped to all time highs (twice!) and increased its market share.
 
We saw Nasdaq firm 'Marathon Patent Group' purchasing Bitcoin miners from Bitmain for $23M, a sizeable investment resulting in them potentially being the biggest bitcoin miner within North America.
 
US Federal Reserve reveals Building a digital dollar with MIT, a Central Bank Digital Dollar utilise the blockchain technology. In a multiyear effort in collaboration with MIT they want to build and test a hypothetical digital currency oriented to central bank uses.
 
Bitcoin halving event resulted in Miner Hut 8 (a mining corporation) 2nd quarter to plunge 67% to $6.9 million from $21.2 million a year ago. For continued profitability the reward of Bitcoin will have to outweigh the cost to mine. As we have seen, the difficulty in May doubled cutting rewards by 50%; because of this we should expect innovation within Bitcoin mining equipment to offset the difficulty challenges in the future.
 
On the other hand Novogratzs' Galaxy Digitial Holdings reports $38.5M in income for Q2. Its operating revenue growth is just over 24% for the first half of 2020 compared to the same period a year ago.
 
Further adoption within the Cryptocurrency space as 4 of South Koreas largest banks to provide cryptocurrency services, this is definitely more signs proving larger institutions want to get a slice of the blockchain pie and the technology is interesting for them (as mentioned above, more likely for a CBDC). Grayscale launches a Bitcoin TV ad campaign and increases their crypto funds as $217M pours into them.
 
Also fraud ICO 'Boontech' is charged by the SEC for $5M. This is good news as it helps to expose fraudulent activity happening within the cryptocurrency space and deter further happenings of scams and fraud.
 
Thanks again for the read and as always hope you get at least a little bit away from this! Cheers to:
The Gravychain Collective: https://t.me/gravychain My Crypto HQ: https://t.me/My_Crypto_HQ
For constant updates on the cryptocurrency space, it is a huge help every week to write these. So go and follow each of these for the updates! :)
Also here is our discord link, Join the conversation though the many topics or add your voice too. We all have something to give and here we want to expand on our knowledge and help each other through these interesting times!
DISCORD LINK: https://discord.gg/zxXXyuJ 🍕 Bring some virtual pizza to share 🍕
Links:
submitted by IOTAbesomewhere to Gravychain [link] [comments]

Perfect storm leads to big sell-off for Bitcoin and DeFi: Weekly recap

A sharp correction in equities markets led Bitcoin price and DeFi tokens to sell-off sharply but have investors turned bearish?
Digital asset markets were on a parabolic surge until investor confidence took a major hit to close out the week with a bearish tilt due to a perfect storm of negativity.
Before reading the rundown, catch up on the most-read stories centered around the price of Bitcoin, the macroeconomic picture and the DeFi phenomenon gaining traction.
Bitcoin price, stocks and gold plunge in tandem — What’s next?
Don’t panic? ‘Smart money’ whales are waiting to buy Bitcoin at $8,800
Yearn.finance’s $140M yETH vault proves investors are ravenous for DeFi
Bitcoin mirrors gains of past halvings, suggesting $41K price in 2020
⁠Ethereum gas fees reach $500K as ETH price hits a 2020-high at $486
A significant drop in equities markets was led by blue-chip stocks that had been at all-time highs. As this occurred, many tokens tied to DeFi platforms corrected sharply, most notably, SushiSwap (SUSHI) which lost nearly 40 percent of its value.
The correction in traditional markets appears to have influenced Bitcoin’s (BTC) more than 10 percent drop before a small bounce back to the $10.3-$10.4K range.
More isn’t always merrier
Technology stocks that led US equities to record highs this summer reversed sharply this week, sending the Nasdaq Composite index tumbling almost five percent in its biggest fall since June.
Apple’s shares lost eight percent — wiping more than $150 billion from the iPhone maker’s value — while Amazon, Alphabet and Microsoft all fell more than four percent.
As a result, the VIX index jumped above the 30-point mark for the first time since mid-July, and the equivalent volatility index for the Nasdaq shot up to more than 40 points — nearly double its mid-August low.
Historically, the VIX has only surged into the 30s a handful of times in the past and almost always leads to a significant retracement.
It is a reminder that crowded trades bring a lot of volatility when someone begins to unwind their positions. Digital asset traders are more than aware of such dynamics and while the bulls may be feeling particularly salty about the reversal of fortunes, the pull-back offers an opportunity to rebuild.
The futures curve also flattened aggressively as leverage buyers were the first ones to look for cover, and there are plenty of opportunities in the options market to take advantage of market mispricing.
Are DeFi tokens the new pink sheets?
Ethereum transactions soared to multiple new all-time highs for the second time in three weeks and Uniswap V2: Router 2 is now the lead contributor to gas usage, according to Etherscan. The decentralized exchange is followed by Tether (USDT); and then the latest DeFi sweetheart that is SushiSwap: MasterChef LP Staking Pool.
And so, Tether has finally been dethroned from its top spot as the main contributor of gas usage.
The fact that it was toppled by none other than a DeFi platform speaks a lot for the recent growth of the industry and, as it stands, over $9.34 billion is locked across various platforms. Currently, Aave, Maker and Uniswap constitute about $1.5 billion TVL each.
On the one hand, DeFi is a high risk, high reward market, but so is trading small-cap (pink sheet) stocks. Both clearly have a market, and always will among those with an appetite for risk.
Is relief from high gas fees on the way?
The ongoing focus on DeFi and the recent hyperactivity on Ethereum has resulted in sky-high congestion and gas fees. This led Ethereum founder Vitalik Buterin to point out several solutions through rollups and sharding.
ZK-Rollups are a zero-knowledge proof technique that helps rollup or batch many transactions into a single transaction, and therefore, helps reduce congestion on the Ethereum blockchain. Less congestion means lower fees.
Optimistic and ZK roll ups can increase capacity from ~15 tx/sec to ~3000 tx/sec by doing most of the transaction processing on layer 2. Sharding, on the other hand, increases the capacity of the base layer by ~100x.
This could lead to a 100x decrease in fees, though realistically in the long term it would not decrease quite as much because the demand for Ethereum is also likely to increase.
The only solution to high transaction fees is scaling and Tether, Gitcoin and other apps are doing the right thing by migrating to ZK rollups. A positive development is that Tether is now planning to add support for another Layer-2 scaling solution (ZK-Rollups).

Bitcoin

Ethereum

Nasdaq

Transactions

Markets

Stocks

DeFi

submitted by DiFi_Update to u/DiFi_Update [link] [comments]

Where is Bitcoin Going and When?

Where is Bitcoin Going and When?

The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.

Stock Market Crash

The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.

Economic Analysis of Bitcoin

The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.

Trading or Investing?

The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.

Technical Indicator Analysis of Bitcoin

Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
  • Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
  • VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
  • RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
  • Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.

Trend Definition Analysis of Bitcoin

Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.

Time Symmetry Analysis of Bitcoin

Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
  • Yearly Lows (last seven years): 1/1/13, 4/10/14, 1/15/15, 1/17/16, 1/1/17, 12/15/18, 2/6/19
  • Monthly Mode: 1, 1, 1, 1, 2, 4, 12
  • Daily Mode: 1, 1, 6, 10, 15, 15, 17
  • Monthly Lows (for the last year): 3/12/20 (10:00pm), 2/28/20 (7:09am), 1/2/20 (8:09pm), 12/18/19 (8:00am), 11/25/19 (1:00am), 10/24/19 (2:59am), 9/30/19 (2:59am), 8/29,19 (4:00am), 7/17/19 (7:59am), 6/4/19 (5:59pm), 5/1/19 (12:00am), 4/1/19 (12:00am)
  • Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
  • Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
  • Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
  • Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
  • 2/14/20 – yearly high ($10372 USD)
  • 3/12/20 – yearly low thus far ($3858 USD)
  • 5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
  • 5/26/20 – hashrate difficulty halvening
  • 11/14/20 – stock market low
  • 1/15/21 – yearly low for BTC, around $8528
  • 8/19/21 – end of stock bear market
  • 11/26/21 – eighteen months from halvening, average peak from halvenings (BTC begins rising from $3000 area to above $23,312)
  • 4/23/22 – all-time high
Taken from my blog: http://aliamin.info/2020/
submitted by aibnsamin1 to Bitcoin [link] [comments]

TokenClub Bi-Weekly Report — Issue 114(5.4–5.17)

TokenClub Bi-Weekly Report — Issue 114(5.4–5.17)

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Hello everyone, thank you for your continued interest and support. In the past two weeks, various tasks of TokenClub have been progressing steadily. The product development and community operation progress this week are as follows:
1. TokenClub Events
1)TokenClub & 499Block reached strategic cooperation in live broadcasting
On May 28th, TokenClub and 499Block reached a strategic cooperation to jointly build a live broadcast ecosystem in the vertical field of blockchain.
2)520e events
When 520 comes, TokenClub launches live interactive interaction. During the event, participate in interactive questions in the live broadcast room or forward the live poster to Twitter and the telegram group, and upload a screenshot to have the opportunity to extract 520, 1314 red envelope rewards

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3)Text version of live content is abailable on Medium
In order to better understand the live broadcast of TokenClub by overseas communities, we translated the live broadcast content into English and uploaded it to TokenClub’s Medium official account, so that the community’s small partners can view it.


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4)Preview: TokenClub’s self-media grandma is invited to participate in the golden financial theme live event
From May 29th to June 4th, Golden Finance will hold a five-day live broadcast of the theme of “Finding Double Coins”. Grandpa Coin will express his views on June 3, welcome to pay attention.

2.TokenClub Live
1) Summary
Recently, Binance Co-founder He Yi, TRON founder Sun Yuchen, Hobbit HBTC founder Ju Jianhua, OSL chairman Dave, BlockVC founding partner Xu Yingkai, Outlier Ventures founder amie Burke, Bitribe founder SKY, CryptoBriefing CEO Han Kao , Huarai Group / Vice President, Global Market and Business Leader Ciara, Guosheng Securities Blockchain Research Institute Sun Shuang, Tongtongtong Research Institute CEO Song Shuangjie, Jin Tiancheng Law Firm Senior Partner Yu Bingguang, Binance China Jiang Jinze, principal researcher of Blockchain Research Institute, Meng Yan, vice president of Digital Asset Research Institute, co-founder of Primitive Ventures & director of Coindesk advisory board-Dovey Wan, founding partner of Genesis Capital & co-founder of Kushen Wallet Ocean Liao Yangyang, Binance C2C-Kathy, Binance OTC-Coco, Binance Contract & Options-Justin, Binance VIP-Jennifer, Binance Broker-Jess, Binance Mining Pool-Denny, Harbin Institute of Technology Blockchain Research Executive Deputy Director Xu Zhifeng, dForce founder Yang Mindao, Mars Finance co-founder Shang Silin, Cobo & Yuchi co-founder Shenyu, well-known investor Xu Zhe, CasperLabs CEO Mrinal Manohar, CasperLabs co-founder Scott Walker, Chairman of Rock Tree Omer Ozden, Nova Club incubation team leader & Waterdrop Capital partner Zheng Yushan, Rolling Stone miner founder Alex Lam, BitUniverse coin founder Chen Yong, Odaily Planet Daily founder and CEO Mandy Wang Mengdie, Binance stablecoin BUSD project responsible Helen Tu and senior expert of TokenClub blockchain and cryptocurrency investment strategy-Zao Shen talks with you about blockchain things ~
On May 18, Block 101 Binance Key Account Manager Luna talked to Primitive Ventures co-founder, non-profit bitcoin development fund Hardcore Fund executive director, and Coindesk advisory board director-Dovey Wan, to understand “C and C How is the Goddess of Crypto Assets made? “Dovey Wan shared with us on asset allocation, investment judgment, entrepreneurship, DCEP, etc.


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On May 19, Block 101 Yingge talked with Sun Zeyu, the founding partner of Genesis Capital and co-founder of Kushen Wallet, to share the theme of “Blockchain Investment Experience”. This investor, who is rated as “reliable” by insiders, recommends that novices try not to touch contracts, do not stay overnight even when making contracts, be alert to risks, refuse gambling, and rationally analyze investments.

On May 20th, 499Block ’s two-year birthday carnival “Global Hot Chain, Keeping Together for Every Year” celebration was held in the TokenClub Live Room. The cross-border AMA Solitaire + popular day group anchor live video sharing, including Binance Co-founder He Yi, TRON founder Sun Yuchen, Hobbit HBTC founder Ju Jianhua, OSL chairman Dave, BlockVC founding partner Xu Yingkai, Outlier Ventures founder amie Burke, Bitribe founder SKY, CryptoBriefing CEO Han Kao, Huobi Group / Vice President Global Markets and Dozens of blockchain leaders from home and abroad, such as Ciara, the business leader, all appeared on the scene, and 499Block became a popular beauty angel group to help the interactive host.


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On May 20, Sun Shuang, senior researcher of Guosheng Securities Blockchain Research Institute, Song Shuangjie, Jin Tong, CEO of Tongzhengtong Research Institute were jointly invited by Lingang Xinyefang, Lingang Innovation Management School, and Binance China Blockchain Research Institute. Tian Bingguang Senior Partner Yu Bingguang, Binance China Blockchain Research Institute Chief Researcher Jiang Jinze, Vice President of Digital Assets Research Institute Meng Yan, and many experts talked about the “Critical Digital RMB DCEP” in the live broadcast, one A feast of intertwined thoughts is worth watching again!

On May 21st, Ocean Liao Yangyang, the founder of Block 101 Seven Seven Dialogue Force Field, focused on the “big enlightenment era of digital assets”, Ocean shared with us his entrepreneurial experience, the first pot of gold, public chain, currency circle and Analysis of the current market. Regarding the future of Bitcoin, Ocean feels that he can work hard towards the direction of digital gold and become a substitute or supplement for gold. He is determined to see more, because the ceiling of the entire industry is very high, and he still cannot see its end point. The index level is rising, far from being over.

On May 22, “In the name of the Pizza Festival, we came to a different live broadcast” Bringing Goods “”, which was organized by the girls in the 101-day group of the block: June 6, July 7, Sisi, Yingge, Qianjiangyue , Dialogue: Binance First Sister, Binance C2C-Kathy, Binance OTC-Coco, Binance Contract & Options-Justin, Binance VIP-Jennifer, Binance Broker-Jess, Binance Mining Pool-Denny. We have explained to us one by one about C2C, OTC, contract options, etc. If you are interested, please move to the live room.


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On May 22, Block 101 Sisi Dialogue Xu Zhifeng, executive deputy director of the Blockchain Research Center of Harbin Institute of Technology, shared the theme: “Strategy of Great Powers: Seizing New Highlands of Blockchain Technology”. He expressed his views on his own currency circle experience, entrepreneurship, blockchain technology, DECP, etc. Xu Zhifeng is very optimistic about the future development of blockchain. He said: “Ten years later, blockchain will become a very common industry. We are the Internet industry and have never changed.”

On May 23, the old Chinese doctor Zao Shen from the coin circle went online ~ The theme of this issue: If you want to be short, you must be able to sing first, and if you want to be long, you must be patient. If the meal is not fragrant, the game is not good, and the happiness of the past has drifted into the distance, just because the daily reading is still a loss, and the head is hurt. Don’t panic, the old Chinese doctor Zao Shen of the currency circle will adopt the Trinity Interventional Therapy and precise care to regenerate life. Don’t move quickly to the live room to see what “therapy” is.

On May 25, Block 101, July 7th conversation with dForce founder Yang Mindao, talked about “DeFi opportunities and challenges.” Yang Mindao believes that the four biggest benefits of DeFi are: programmability; non-custodial nature; non-licensing; composability. He believes that the current public chain market is seriously homogenized, and the most promising public chain is Ethereum. Ethereum is the best and largest in terms of developer group, ecology, and technological evolution, and can absorb the advantages of each public chain. At the same time, he is also extremely optimistic about DeFi, “DeFi application value is gradually verified, and the value of this type of token will gradually become more prominent.”

On May 26th, Mars Finance co-founder Shang Silin Hardcore Dialogue Cobo & Yuchi co-founder Shenyu and well-known investor Xu Zhe. The trend of “financialization” in the digital asset industry is becoming more and more obvious, and the friends of miners need to master more and more skills. Unveiling the mystery of hedging for everyone.

On May 26th, Nova Superstar Dialogue Phase 13 focused on the Silicon Valley star project CasperLabs, specially invited CasperLabs CEO Mrinal Manohar, CasperLabs co-founder Scott Walker, Rock Tree chairman Omer Ozden, and Nova Club incubation team leader Water Capital Partners Zheng Yushan, discuss CasperLbs together.
On May 26, Block 101 Sisi talked with the founder of the Rolling Stone Miner, Alex Lam, and took us into the “post-worker life” of a PhD in finance. Alex shared the reasons for entering the coin circle, the first pot of gold, mining, pitted pits, investment experience and opportunities in the digital currency industry. Alex said: Bitcoin exceeds US $ 100,000, and it will be in the second half of next year or the year after.
On May 27th, Block 101 Yingge talked with BitUniverse founder Chen Yong and shared the theme: “Who” needs grid trading. Chen Yong mainly introduced the currency trading tool of Bitcoin. In his view, grid trading has changed an investor’s concept-from stud into a batch of positions and positions. Regarding the price of Bitcoin, Chen Yong believes that the price of Bitcoin may reach one hundred thousand dollars around 2030.

On May 28, Block 101 Binance Mining Pool Wu Di talked to Mandai Wang Mengdie, founder of Planet Daily Odaily, to learn more about the process of “media entrepreneurs marching into the blockchain from venture capital circles”. Mandy believes that the core competence in the media industry is high-quality original content, which is the most basic but difficult to stick to. The initial focus of entering the mixed media industry of the dragon and dragon is to focus and amplify value.

On May 29th, Block 101 Qianjiangyue Dialogue Hellen Tu, the project leader of Binance Stablecoin BUSD project, talked with everyone about the stablecoin “Life and Death”, Hellen shared the stablecoin in detail, and published his own the opinion of. For details, please move to the live room.

On May 30th, Zaoshen came to share the theme: Dongfeng blowing, bullets flying, unlimited chase? In this issue, Zao Shen shared with you the recent international financial situation and various major events in the United States in the past week, which extended to the impact on the currency circle and answered various questions about investment strategies. Friends who want to know more details can move to the live room of Zao Shen.
3.TokenClub operation data
-Live data: 13 live broadcasts in the past two weeks, with over 800,000 views. TokenClub hosted a total of 870 live broadcasts with a total of 45.06 million views.
-Binary trade data: In the past two weeks, guess the rise and fall to participate in a total of 1268 times, the amount of participation exceeded 2 million TCT. At present, it is guessed that the rise and fall function has participated in a total of 1.11 million times, with a cumulative participation amount of 498 million TCT.
-Chat data: In the past two weeks, a total of 19271 messages have been generated. A total of 4.85 milliom messages have been launched since the function was launched.
-Mini-game data: The mini-game has participated in a total of 4212 times in the past two weeks. A total of 1,66 million self-functions have been online.
-Cut leeks game data together: Since the game was launched, the total number of user participation in the game was 962612 TCT total consumption was 6,27 million gift certificate total consumption was 15,95million and TCT mining output was 161496.
-TokenClub KOL data: Over the past two weeks, the total reading volume of the BTCGrandpa article has been viewed by more than 300,000 people.
-Social media data: At present, the number of Weibo official accounts is 18033 and the number of Twitter followers is 1332 and we have opened the official Medium account this week, welcome to follow.
-Telegram official group data: In the past 2 weeks, there were 238 chats in the group, and the total number of Telegram official groups is currently 2906.
-Medium data: Medium official account u/TokenClub has published 5 excellent articles, official announcements and updates are published in English, welcome to follow.
4.Communities
1)Overseas Community
TokenClub held an event for forwarding Twitter and telegram group chats for overseas users. Bitcoin halved in less than two weeks, overseas users are more active in the telegram group, and some friends are more concerned about Binance Block 101 live broadcast, aggregation exchange, TCT usage and other issues, the administrator responded in time.On May 12th, when Bitcoin was halved, TokenClub organized a forwarding Twitter, telegram group chat prize event and participating in a live question asking interactive prize event for overseas users. There are many live broadcast events in the near future. The live broadcast poster information will be released to overseas users as soon as possible. The follow-up TokenClub will translate and broadcast high-quality live broadcast content to Twitter and Medium. Bitcoin halved, overseas users are more active in the telegram group, and some partners are more concerned about block 101 live broadcast, bitcoin future price trend, TCT usage and other issues, the administrator responded in time in the group.


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2)Domestic community
Sweet Orange Club Weekly News
Last Friday, a holiday, the community opened the red envelope rain event, and brought a sincere gift to everyone while relaxing in the holiday. At the same time, it also sent the most sincere blessings to all mothers in the community on Mother’s Day. Thank you for your long-term support and help to the Orange Club community.

Hundred-day scheduled investment event (Phase II)
The fourth week of the second 100-day fixed investment plan held this week has been awarded, and everyone is still very active in this event. This week, the Bitcoin halving market was also opened in advance. The small partners participating in the fixed investment should now have a certain floating win, so we adopt the correct cycle investment strategy to believe that it can bring unexpected benefits to everyone.
Sign in the lottery.
On the evening of May 3rd and May 10th, TCT Fortune Free Academy carried out the 51st and 52nd week sign-in sweepstakes, and rewarded the small TCT partners who had always insisted on signing in. In these two sign-in sweepstakes, the lucky friends received 20–180TCT as a reward. In addition, during the lucky draw, the college friends also actively expressed their opinions on the topic of this year’s bull market.

The Leek Paradise Community Conference will continue as usual every Sunday at 20:00. During the conference, members will discuss recent hot topics, including gifts and blessings for Mother ’s Day, and the halving of Bitcoin everyone is paying attention to. At the end, the friends in the group also showed a rare enthusiasm at the first sight. It seems that the market still affects the mood. The members routinely started a red envelope rain to cheer for the participating partners and encourage everyone to maintain patience and confidence. Of course, at the same time, we are encouraging ourselves to see the community meeting next week. Come on!

TokenClub volunteer community, sign in red envelopes every day, as long as you sign in every day, you can get good benefits, friends join us quickly! In the past two weeks, the community has conducted active partners.
Volunteer community: Change to the currency circle consultation and pass the analysis of Grandma Coin and Panda analysts, support TokenClub in action, and continue to vote for TCT. In the last month, we have worked hard to learn the rain god’s strategy. We have doubled the coins in our hands. The community WeChat group has recently injected fresh students. We look forward to more people joining! Volunteer community, will continue to work hard for TokenClub
TCT has been listed on Binance、Okex、Gate.io、ZB-M、MXC、Biki、Coinex、BigOne、Coinbene、Cybex、SWFT、Loopring、Rootrex etc.
TokenClub website: www.tokenclub.com
Telegram:https://t.me/token\_club
submitted by tokenclubtct to u/tokenclubtct [link] [comments]

How much do you love BCH? Double down on BCH and fast forward the halving! #BCHFASTFWD #FREEZE500K

The BCH networks next halving of mining rewards is around 8th April 2020, approximately 60192 blocks away. The current reward is 12.5BCH per block. So 752,400 BCH in mining rewards till the halving. After that the reward drops to 6.25BCH per block. If the network can organize effectively then it is possible to fast forward the good effects of the halving by instantly freezing 376,200 BCH for the next 418 days. That extra 6.5BCH reward that is issued today until the halving is balanced against the newly frozen amount. Thereby cancelling each other and avoiding the depressing effect of new supply to the market price. If the halving naturally results in a doubling of market price roughly then instantly freezing 376,200 BCH today *may* have quite the same outcome or more. This is good because it means the highs and the lows of market price extremes can be flattened over the years by a market mechanism all accommodated by a voluntary, native, blockchain feature: coin freezing.

Why might this work?

The best outcome for the network is to please users by relative stability in the market price with the highest growth. Freezing and unfreezing supply of BCH units is one way to expose natural market forces toward selecting the best supply for the moment. But this doesn't happen because it is quite difficult and requires a discovery process which implies an organizing protocol is necessary. One doesn't exist.

Is it worth organizing?

Organizing a network wide voluntary freezing of supply of units in significant quantities theoretically should effect the market price. It may be difficult to determine what quantities and freeze periods would be required to be meaningful to get attention and move the market price a dollar. I decided to use the mining reward halvening as an example of supply changes effecting market price. Previously the market prices doubled around the halvening time. So using the halvening parameters we can calculate how many frozen coins would simulate bringing the halvening supply context forward to today.

BitcoinCash April 8, 2020 Feb 14, 2019
Halvening After Before
Reward per block 6.25 12.5
Days till halving 0 418
Blocks till halving 0 60192
Bch reward till halving 752400
Half Bch reward 376,200
So to create 6.25 BTC supply context today freeze 6.25 BCH per block until the halving which is 376,200 BCH for 418 days. If whales or organized hodlers would collectively freeze 376,200 BCH for 418 days today they would effectively be changing the network supply context to closely match that as of April 8th, 2020 when the halving happens. Organizing network wide voluntary freezing of coins demonstrates confidence by long term holders for all the market to see. It is right and good for all that the market price will reflect this fact.

Is it worth crowd funding 1% or 3762 BCH incentive to participate in voluntary 418 day freezing?
Incentive 1.00% 3762 bch $458,964
BCHUSD price today $122.00
Both the freeze side and the incentive side of such a transaction could be crowd funded. In the end a transaction is prepared that freezes 376,200 BCH for 418 days.

#BCHFASTFWD #FREEZE500K
*edit update typo
** edit recalculated using halving date April 8th 2020 from http://bitcointicker.co/bccnetworkstats/
submitted by redmarlen to btc [link] [comments]

Why BTC can never go to 100k, but BCH can.

What the core people don’t get is that there is a direct correlation between blocksize (scalability) and price.
If you’re a good trader, you would know that transaction count is a valuable information when trading because it shows the demand side.
When the transaction counts hit certain numbers, and blocksize becomes full, people search for cheaper coins to move their holdings. Aka substitute goods.
Here is the thing. Before 2017, Bitcoin was able to survive halvings without tx fee replacing the reward. So simply doubling the price after halving was possible as the network never hit the ceiling.
Today is different. We know exactly when the blocksize will be full and know when people search for alternatives due to high fee.
Even if we don’t consider utility or the value in medium of exchange; even if we solely view bitcoin as speculative asset, Bitcoin is doomed to fail at the next halving.
All BCH needs is BTC’s 2020 halving and another bull run. The search for alternative ends in Bitcoin Cash.
submitted by krbch to btc [link] [comments]

Bitcoin Halving and Consensus Algorithm

Bitcoin Halving and Consensus Algorithm

https://preview.redd.it/xbmsd5ir8ix41.png?width=1400&format=png&auto=webp&s=609d506b0c6c90e467b95da2510fef27fcfcfcdd

Bitcoin Halving and Its Affects

Every 210,000 blocks, or approximately once every four years, Bitcoin undergoes a halving event where the mining rewards are cut in half. The current block reward is 12.5 BTC/block, and the next halving is expected to take place on 12 May 2020. From block number 630,001, the block rewards will be reduced to 6.25 Bitcoin. This process is supposed to continue until the last Bitcoin has been mined.
Halvings are done to preserve the value of Bitcoin through the laws of supply and demand. If Bitcoins are mined too quickly, and there is insufficient market demand, their value will drop. Historically, the halvings have always positively affected the price of Bitcoin in the months and years following the event when Bitcoin reached new all-time-highs.

What is Bitcoin Mining and How Does it Work?

Bitcoin is a decentralized currency. It doesn’t use the services of a bank or another central institution to transfer the assets. Instead, Bitcoin has a blockchain and its transaction records are stored for eternity.
The people who store these transactions on the blockchain are called miners. Miners are financially incentivized to confirm transactions. The confirmations are done by solving complex computational problems. Whoever solves the problem receives a fixed reward in Bitcoin.
Likewise, Bitcoin relies on a Proof-of-Work (PoW) consensus algorithm. It bets on the strength and efficiency of the underlying hardware. PoW coins are mostly mined through GPUs and ASIC miners. In the past, Bitcoin could be mined with your PC’s CPU. The mining network wasn’t big, and the rewards were appealing. That is no longer the case. The mining difficulty has increased and today, mining is handled via countless expensive ASIC miners.
PoW mining is, therefore, profitable only to those who have made substantial hardware investments and not to the ordinary man. PoW consumes much electricity, and the Bitcoin network generates a block every 10 mins on average, which makes it more difficult for ordinary miners to get block rewards.

What is Proof of Formulation?

In the case of FLETA, it utilizes its own consensus algorithm: Proof-of-Formulation (PoF). This algorithm consists of 2 main actors:
  • Formulators — the block generators, the equivalent of PoW miners.
  • Observer Nodes — validate, confirm, and sign transactions in real-time, and prevent forks and double-spending.

Formulators

In contrast to PoW, where better hardware equipment is equal to bigger rewards, in PoF, all Formulators take part in block generation according to a pre-determined order. Once everyone has had their turn, a new mining phase starts, and all Formulators are arranged according to a new random sequence. No competition and equal mining opportunities for everyone!
To become a formulator, a user needs to register and stake 200,000 FLETA tokens at the FLETA Formulator Portal or FLETA Wallet. There is a maintenance fee to be paid every month. The mining is performed through FLETA cloud mining, and the user doesn’t need to set up a server on his own. Formulators can be upgraded for more efficiency and better performance. This is explained in more detail here.

Observer Nodes

Observers secure the network and prevent DDoS attacks. 5 Observers are assigned to each Formulator group. At least 3 of them are required to sign the transactions and include them in the blockchain. This system makes a fork impossible because the first block with three signatures will be included in the blockchain.

In the End

Proof-of-Formulation is fast, fair, and secure, thanks to the watchful eyes of the Observer Nodes, and their bond with Formulators. The results show that PoF allows 14,000 transactions/second and a block creation time of only 0.5 seconds/block.
submitted by fleta-official to fletachain [link] [comments]

Bitcoin (BTC)A Peer-to-Peer Electronic Cash System.

Bitcoin (BTC)A Peer-to-Peer Electronic Cash System.
  • Bitcoin (BTC) is a peer-to-peer cryptocurrency that aims to function as a means of exchange that is independent of any central authority. BTC can be transferred electronically in a secure, verifiable, and immutable way.
  • Launched in 2009, BTC is the first virtual currency to solve the double-spending issue by timestamping transactions before broadcasting them to all of the nodes in the Bitcoin network. The Bitcoin Protocol offered a solution to the Byzantine Generals’ Problem with a blockchain network structure, a notion first created by Stuart Haber and W. Scott Stornetta in 1991.
  • Bitcoin’s whitepaper was published pseudonymously in 2008 by an individual, or a group, with the pseudonym “Satoshi Nakamoto”, whose underlying identity has still not been verified.
  • The Bitcoin protocol uses an SHA-256d-based Proof-of-Work (PoW) algorithm to reach network consensus. Its network has a target block time of 10 minutes and a maximum supply of 21 million tokens, with a decaying token emission rate. To prevent fluctuation of the block time, the network’s block difficulty is re-adjusted through an algorithm based on the past 2016 block times.
  • With a block size limit capped at 1 megabyte, the Bitcoin Protocol has supported both the Lightning Network, a second-layer infrastructure for payment channels, and Segregated Witness, a soft-fork to increase the number of transactions on a block, as solutions to network scalability.

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1. What is Bitcoin (BTC)?

  • Bitcoin is a peer-to-peer cryptocurrency that aims to function as a means of exchange and is independent of any central authority. Bitcoins are transferred electronically in a secure, verifiable, and immutable way.
  • Network validators, whom are often referred to as miners, participate in the SHA-256d-based Proof-of-Work consensus mechanism to determine the next global state of the blockchain.
  • The Bitcoin protocol has a target block time of 10 minutes, and a maximum supply of 21 million tokens. The only way new bitcoins can be produced is when a block producer generates a new valid block.
  • The protocol has a token emission rate that halves every 210,000 blocks, or approximately every 4 years.
  • Unlike public blockchain infrastructures supporting the development of decentralized applications (Ethereum), the Bitcoin protocol is primarily used only for payments, and has only very limited support for smart contract-like functionalities (Bitcoin “Script” is mostly used to create certain conditions before bitcoins are used to be spent).

2. Bitcoin’s core features

For a more beginner’s introduction to Bitcoin, please visit Binance Academy’s guide to Bitcoin.

Unspent Transaction Output (UTXO) model

A UTXO transaction works like cash payment between two parties: Alice gives money to Bob and receives change (i.e., unspent amount). In comparison, blockchains like Ethereum rely on the account model.
https://preview.redd.it/t1j6anf8f3151.png?width=1601&format=png&auto=webp&s=33bd141d8f2136a6f32739c8cdc7aae2e04cbc47

Nakamoto consensus

In the Bitcoin network, anyone can join the network and become a bookkeeping service provider i.e., a validator. All validators are allowed in the race to become the block producer for the next block, yet only the first to complete a computationally heavy task will win. This feature is called Proof of Work (PoW).
The probability of any single validator to finish the task first is equal to the percentage of the total network computation power, or hash power, the validator has. For instance, a validator with 5% of the total network computation power will have a 5% chance of completing the task first, and therefore becoming the next block producer.
Since anyone can join the race, competition is prone to increase. In the early days, Bitcoin mining was mostly done by personal computer CPUs.
As of today, Bitcoin validators, or miners, have opted for dedicated and more powerful devices such as machines based on Application-Specific Integrated Circuit (“ASIC”).
Proof of Work secures the network as block producers must have spent resources external to the network (i.e., money to pay electricity), and can provide proof to other participants that they did so.
With various miners competing for block rewards, it becomes difficult for one single malicious party to gain network majority (defined as more than 51% of the network’s hash power in the Nakamoto consensus mechanism). The ability to rearrange transactions via 51% attacks indicates another feature of the Nakamoto consensus: the finality of transactions is only probabilistic.
Once a block is produced, it is then propagated by the block producer to all other validators to check on the validity of all transactions in that block. The block producer will receive rewards in the network’s native currency (i.e., bitcoin) as all validators approve the block and update their ledgers.

The blockchain

Block production

The Bitcoin protocol utilizes the Merkle tree data structure in order to organize hashes of numerous individual transactions into each block. This concept is named after Ralph Merkle, who patented it in 1979.
With the use of a Merkle tree, though each block might contain thousands of transactions, it will have the ability to combine all of their hashes and condense them into one, allowing efficient and secure verification of this group of transactions. This single hash called is a Merkle root, which is stored in the Block Header of a block. The Block Header also stores other meta information of a block, such as a hash of the previous Block Header, which enables blocks to be associated in a chain-like structure (hence the name “blockchain”).
An illustration of block production in the Bitcoin Protocol is demonstrated below.

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Block time and mining difficulty

Block time is the period required to create the next block in a network. As mentioned above, the node who solves the computationally intensive task will be allowed to produce the next block. Therefore, block time is directly correlated to the amount of time it takes for a node to find a solution to the task. The Bitcoin protocol sets a target block time of 10 minutes, and attempts to achieve this by introducing a variable named mining difficulty.
Mining difficulty refers to how difficult it is for the node to solve the computationally intensive task. If the network sets a high difficulty for the task, while miners have low computational power, which is often referred to as “hashrate”, it would statistically take longer for the nodes to get an answer for the task. If the difficulty is low, but miners have rather strong computational power, statistically, some nodes will be able to solve the task quickly.
Therefore, the 10 minute target block time is achieved by constantly and automatically adjusting the mining difficulty according to how much computational power there is amongst the nodes. The average block time of the network is evaluated after a certain number of blocks, and if it is greater than the expected block time, the difficulty level will decrease; if it is less than the expected block time, the difficulty level will increase.

What are orphan blocks?

In a PoW blockchain network, if the block time is too low, it would increase the likelihood of nodes producingorphan blocks, for which they would receive no reward. Orphan blocks are produced by nodes who solved the task but did not broadcast their results to the whole network the quickest due to network latency.
It takes time for a message to travel through a network, and it is entirely possible for 2 nodes to complete the task and start to broadcast their results to the network at roughly the same time, while one’s messages are received by all other nodes earlier as the node has low latency.
Imagine there is a network latency of 1 minute and a target block time of 2 minutes. A node could solve the task in around 1 minute but his message would take 1 minute to reach the rest of the nodes that are still working on the solution. While his message travels through the network, all the work done by all other nodes during that 1 minute, even if these nodes also complete the task, would go to waste. In this case, 50% of the computational power contributed to the network is wasted.
The percentage of wasted computational power would proportionally decrease if the mining difficulty were higher, as it would statistically take longer for miners to complete the task. In other words, if the mining difficulty, and therefore targeted block time is low, miners with powerful and often centralized mining facilities would get a higher chance of becoming the block producer, while the participation of weaker miners would become in vain. This introduces possible centralization and weakens the overall security of the network.
However, given a limited amount of transactions that can be stored in a block, making the block time too longwould decrease the number of transactions the network can process per second, negatively affecting network scalability.

3. Bitcoin’s additional features

Segregated Witness (SegWit)

Segregated Witness, often abbreviated as SegWit, is a protocol upgrade proposal that went live in August 2017.
SegWit separates witness signatures from transaction-related data. Witness signatures in legacy Bitcoin blocks often take more than 50% of the block size. By removing witness signatures from the transaction block, this protocol upgrade effectively increases the number of transactions that can be stored in a single block, enabling the network to handle more transactions per second. As a result, SegWit increases the scalability of Nakamoto consensus-based blockchain networks like Bitcoin and Litecoin.
SegWit also makes transactions cheaper. Since transaction fees are derived from how much data is being processed by the block producer, the more transactions that can be stored in a 1MB block, the cheaper individual transactions become.
https://preview.redd.it/depya70mf3151.png?width=1601&format=png&auto=webp&s=a6499aa2131fbf347f8ffd812930b2f7d66be48e
The legacy Bitcoin block has a block size limit of 1 megabyte, and any change on the block size would require a network hard-fork. On August 1st 2017, the first hard-fork occurred, leading to the creation of Bitcoin Cash (“BCH”), which introduced an 8 megabyte block size limit.
Conversely, Segregated Witness was a soft-fork: it never changed the transaction block size limit of the network. Instead, it added an extended block with an upper limit of 3 megabytes, which contains solely witness signatures, to the 1 megabyte block that contains only transaction data. This new block type can be processed even by nodes that have not completed the SegWit protocol upgrade.
Furthermore, the separation of witness signatures from transaction data solves the malleability issue with the original Bitcoin protocol. Without Segregated Witness, these signatures could be altered before the block is validated by miners. Indeed, alterations can be done in such a way that if the system does a mathematical check, the signature would still be valid. However, since the values in the signature are changed, the two signatures would create vastly different hash values.
For instance, if a witness signature states “6,” it has a mathematical value of 6, and would create a hash value of 12345. However, if the witness signature were changed to “06”, it would maintain a mathematical value of 6 while creating a (faulty) hash value of 67890.
Since the mathematical values are the same, the altered signature remains a valid signature. This would create a bookkeeping issue, as transactions in Nakamoto consensus-based blockchain networks are documented with these hash values, or transaction IDs. Effectively, one can alter a transaction ID to a new one, and the new ID can still be valid.
This can create many issues, as illustrated in the below example:
  1. Alice sends Bob 1 BTC, and Bob sends Merchant Carol this 1 BTC for some goods.
  2. Bob sends Carols this 1 BTC, while the transaction from Alice to Bob is not yet validated. Carol sees this incoming transaction of 1 BTC to him, and immediately ships goods to B.
  3. At the moment, the transaction from Alice to Bob is still not confirmed by the network, and Bob can change the witness signature, therefore changing this transaction ID from 12345 to 67890.
  4. Now Carol will not receive his 1 BTC, as the network looks for transaction 12345 to ensure that Bob’s wallet balance is valid.
  5. As this particular transaction ID changed from 12345 to 67890, the transaction from Bob to Carol will fail, and Bob will get his goods while still holding his BTC.
With the Segregated Witness upgrade, such instances can not happen again. This is because the witness signatures are moved outside of the transaction block into an extended block, and altering the witness signature won’t affect the transaction ID.
Since the transaction malleability issue is fixed, Segregated Witness also enables the proper functioning of second-layer scalability solutions on the Bitcoin protocol, such as the Lightning Network.

Lightning Network

Lightning Network is a second-layer micropayment solution for scalability.
Specifically, Lightning Network aims to enable near-instant and low-cost payments between merchants and customers that wish to use bitcoins.
Lightning Network was conceptualized in a whitepaper by Joseph Poon and Thaddeus Dryja in 2015. Since then, it has been implemented by multiple companies. The most prominent of them include Blockstream, Lightning Labs, and ACINQ.
A list of curated resources relevant to Lightning Network can be found here.
In the Lightning Network, if a customer wishes to transact with a merchant, both of them need to open a payment channel, which operates off the Bitcoin blockchain (i.e., off-chain vs. on-chain). None of the transaction details from this payment channel are recorded on the blockchain, and only when the channel is closed will the end result of both party’s wallet balances be updated to the blockchain. The blockchain only serves as a settlement layer for Lightning transactions.
Since all transactions done via the payment channel are conducted independently of the Nakamoto consensus, both parties involved in transactions do not need to wait for network confirmation on transactions. Instead, transacting parties would pay transaction fees to Bitcoin miners only when they decide to close the channel.
https://preview.redd.it/cy56icarf3151.png?width=1601&format=png&auto=webp&s=b239a63c6a87ec6cc1b18ce2cbd0355f8831c3a8
One limitation to the Lightning Network is that it requires a person to be online to receive transactions attributing towards him. Another limitation in user experience could be that one needs to lock up some funds every time he wishes to open a payment channel, and is only able to use that fund within the channel.
However, this does not mean he needs to create new channels every time he wishes to transact with a different person on the Lightning Network. If Alice wants to send money to Carol, but they do not have a payment channel open, they can ask Bob, who has payment channels open to both Alice and Carol, to help make that transaction. Alice will be able to send funds to Bob, and Bob to Carol. Hence, the number of “payment hubs” (i.e., Bob in the previous example) correlates with both the convenience and the usability of the Lightning Network for real-world applications.

Schnorr Signature upgrade proposal

Elliptic Curve Digital Signature Algorithm (“ECDSA”) signatures are used to sign transactions on the Bitcoin blockchain.
https://preview.redd.it/hjeqe4l7g3151.png?width=1601&format=png&auto=webp&s=8014fb08fe62ac4d91645499bc0c7e1c04c5d7c4
However, many developers now advocate for replacing ECDSA with Schnorr Signature. Once Schnorr Signatures are implemented, multiple parties can collaborate in producing a signature that is valid for the sum of their public keys.
This would primarily be beneficial for network scalability. When multiple addresses were to conduct transactions to a single address, each transaction would require their own signature. With Schnorr Signature, all these signatures would be combined into one. As a result, the network would be able to store more transactions in a single block.
https://preview.redd.it/axg3wayag3151.png?width=1601&format=png&auto=webp&s=93d958fa6b0e623caa82ca71fe457b4daa88c71e
The reduced size in signatures implies a reduced cost on transaction fees. The group of senders can split the transaction fees for that one group signature, instead of paying for one personal signature individually.
Schnorr Signature also improves network privacy and token fungibility. A third-party observer will not be able to detect if a user is sending a multi-signature transaction, since the signature will be in the same format as a single-signature transaction.

4. Economics and supply distribution

The Bitcoin protocol utilizes the Nakamoto consensus, and nodes validate blocks via Proof-of-Work mining. The bitcoin token was not pre-mined, and has a maximum supply of 21 million. The initial reward for a block was 50 BTC per block. Block mining rewards halve every 210,000 blocks. Since the average time for block production on the blockchain is 10 minutes, it implies that the block reward halving events will approximately take place every 4 years.
As of May 12th 2020, the block mining rewards are 6.25 BTC per block. Transaction fees also represent a minor revenue stream for miners.
submitted by D-platform to u/D-platform [link] [comments]

With all this fork drama and FUD happening, Vertcoin is the safe heaven with great potential to become the next major cryptocurrency

Before anyone starts pointing out that this is another "dumb shilling post", hear me out.
I strongly believe that Vertcoin could become the next top 10 major cryptocurrency.
2017 was and STILL IS a bloodbath in cryptoworld. All the Bitcoin forks, FUD, and heavy manipulation discouraged many crypto investors to dive in further. Suppressing our community as a whole to progress through this brave new world. Some of you may have FOMO'd (fear of missing out) or fell into the hands of deceptions like Bitconnect and lost quite a bit of your hard-earned money. Let the emotions aside, Vertcoin will and IS going to be the next major player in the crypto market. Here are some basic reasons why Vertcoin will reach that level.
  1. VTC is the ASIC-resistant coin and more people will care. Why? Let me explain ASIC mining has been concentrated into relatively centralized data centers operated by professionals which makes it less decentralized consensus. Instead of any random person, using a relatively powerful computer, you are dependent upon only people who are advanced enough to operate specialized ASIC hardware and who buy it from handful of companies that can distribute the hardware however they please and to some extent for whatever price they please because the demand is high. Hence, we need those coins whose algorithm shows “resistance” to ASIC hardware and the only coin who is extremely committed to remain ASIC resistance is Vertcoin. The reason is that it has not only memory intensive algorithm (Lyra2Rev2) which makes it particularly difficult to develop an ASIC in the future but it has proved in the past (by hard forking) that if someone tried to make ASICs for vertcoin; it will hard fork to remain ASIC resistant and hence “the people’s coin. https://coinpupil.com/2017/10/17/introduction-vertcoin-asic-resistant-cryptocurrency/.
  2. VTC is the cheapest of the BTC/LTC/VTC trio and yet has a comparable social following to LTC. (In the future, sooner or later, atomic swaps between BTC/LTC/VTC will be available, allowing the three coins to exchange for each other immediately for free without needing a medium, ex. 3rd party exchanges like Bittrex)
  3. If trading volume is a strong indicator of value, and I believe it is, VTC is crazy undervalued
  4. VTC is an old coin (Jan 2014) with a large base of people who know it by name. Hence, it's foundation is solid.
  5. Thank's to it's strong and genuine community, Vertcoin's reputation is highly regarded. To the point that even many Pump and Dump groups see this coin as a legit, solid crypto that has a strong potential.
  6. Transaction speed is nearly instant as well as the fee is very cheap (0.02VTC).
  7. Extremely active developers. But what's important is that they are genuine. You can chat with them and will reply to you in discord chat. They will let you know what is going on and what is going to happen without covering it up.
Pros aside, it is no doubt that Vertcoin is or at least used to be the target of manipulation. However, Vertcoin had survived all the heavy manipulations. In fact, it helped Vertcoin to build a stronger ground, higher lows and higher highs. At this point, Vertcoin is extremely difficult to be manipulated largely due to it's enormous increase in volume and well-liked community throughout the cryptoworld. Go ask anyone who knows about cryptos if Vertcoin is a solid coin. Yes, there are some minorities who will dislike Vertcoin. But overall, most people will say yes.
Here are the future updates on Vertcoin. 1. Atomic Swaps - exchange of one cryptocurrency to another cryptocurrency, without the need to trust a third-party. 2. Block halving (estimated to be around December 11-12th) - It cut's the block reward to the miners by half. A potential price catalyst. 3. Stealth Addresses - A traditional bank account is based on a private ledger in which the transaction history is only known to the account holder and the bank. In such a system the account holder can widely distribute his/her account number and receive any number of payments without exposing the account history to the payers or casual observers. This is essentially what is accomplished with stealth addresses, without sacrificing the decentralization of the currency. 4. AMD Miner - Currently, Vertcoin's one click miner (you can literally download the program, type in the address, and click! All those VTC's will flow into your wallet) doesn't do well with AMD graphic cards. Therefore, all the AMD miners are still left out. As soon as AMD Miner releases (by this year), it will greatly increase Vertcoin's hash power. Theoretically doubling the current hashpower instantly because there are only 2 consumer GPU markets, AMD and Nvidia. 5. Wallets - Yes Vertcoin does not support many wallets but it is in progress. iOS mobile wallet and as well as many more wallets will be supported very soon (upcoming patch I believe) 6. Ethereum switching from Proof of Work to Proof of Stake. Meaning that it will leave a lot of orphan ETH GPU miners coming to VTC. **All of this upcoming updates should be completed by end of this year.
Currently, cryptoworld is like the 1984's internet (netscape) era. Back then, there were lots of speculations and panic. In the next year or so, scam ICO's will be eliminated as well as many other shady coins like beeeconneecctt. Vertcoin and as well as some other solid coins will survive this bloodbath and become one of the top contenders in the crypto market.
Special thanks to @theBARBARIC and @Mo9731 for some details.
Thank You.
submitted by TDKOtherSide to CryptoCurrency [link] [comments]

With all this fork drama and FUD happening, Vertcoin is the safe heaven with great potential to become the next major cryptocurrency

Before anyone starts pointing out that this is another "dumb shilling post", hear me out.
I strongly believe that Vertcoin could become the next top 10 major cryptocurrency.
2017 was and STILL IS a bloodbath in cryptoworld. All the Bitcoin forks, FUD, and heavy manipulation discouraged many crypto investors to dive in further. Suppressing our community as a whole to progress through this brave new world. Some of you may have FOMO'd (fear of missing out) or fell into the hands of deceptions like Bitconnect and lost quite a bit of your hard-earned money. Let the emotions aside, Vertcoin will and IS going to be the next major player in the crypto market. Here are some basic reasons why Vertcoin will reach that level.
  1. VTC is the ASIC-resistant coin and more people will care. Why? Let me explain ASIC mining has been concentrated into relatively centralized data centers operated by professionals which makes it less decentralized consensus. Instead of any random person, using a relatively powerful computer, you are dependent upon only people who are advanced enough to operate specialized ASIC hardware and who buy it from handful of companies that can distribute the hardware however they please and to some extent for whatever price they please because the demand is high. Hence, we need those coins whose algorithm shows “resistance” to ASIC hardware and the only coin who is extremely committed to remain ASIC resistance is Vertcoin. The reason is that it has not only memory intensive algorithm (Lyra2Rev2) which makes it particularly difficult to develop an ASIC in the future but it has proved in the past (by hard forking) that if someone tried to make ASICs for vertcoin; it will hard fork to remain ASIC resistant and hence “the people’s coin. https://coinpupil.com/2017/10/17/introduction-vertcoin-asic-resistant-cryptocurrency/.
  2. VTC is the cheapest of the BTC/LTC/VTC trio and yet has a comparable social following to LTC. (In the future, sooner or later, atomic swaps between BTC/LTC/VTC will be available, allowing the three coins to exchange for each other immediately for free without needing a medium, ex. 3rd party exchanges like Bittrex)
  3. If trading volume is a strong indicator of value, and I believe it is, VTC is crazy undervalued
  4. VTC is an old coin (Jan 2014) with a large base of people who know it by name. Hence, it's foundation is solid.
  5. Thank's to it's strong and genuine community, Vertcoin's reputation is highly regarded. To the point that even many Pump and Dump groups see this coin as a legit, solid crypto that has a strong potential.
  6. Transaction speed is nearly instant as well as the fee is very cheap (0.02VTC).
  7. Extremely active developers. But what's important is that they are genuine. You can chat with them and will reply to you in discord chat. They will let you know what is going on and what is going to happen without covering it up.
Pros aside, it is no doubt that Vertcoin is or at least used to be the target of manipulation. However, Vertcoin had survived all the heavy manipulations. In fact, it helped Vertcoin to build a stronger ground, higher lows and higher highs. At this point, Vertcoin is extremely difficult to be manipulated largely due to it's enormous increase in volume and well-liked community throughout the cryptoworld. Go ask anyone who knows about cryptos if Vertcoin is a solid coin. Yes, there are some minorities who will dislike Vertcoin. But overall, most people will say yes.
Here are the future updates on Vertcoin. 1. Atomic Swaps - exchange of one cryptocurrency to another cryptocurrency, without the need to trust a third-party. 2. Block halving (estimated to be around December 11-12th) - It cut's the block reward to the miners by half. A potential price catalyst. 3. Stealth Addresses - A traditional bank account is based on a private ledger in which the transaction history is only known to the account holder and the bank. In such a system the account holder can widely distribute his/her account number and receive any number of payments without exposing the account history to the payers or casual observers. This is essentially what is accomplished with stealth addresses, without sacrificing the decentralization of the currency. 4. AMD Miner - Currently, Vertcoin's one click miner (you can literally download the program, type in the address, and click! All those VTC's will flow into your wallet) doesn't do well with AMD graphic cards. Therefore, all the AMD miners are still left out. As soon as AMD Miner releases (by this year), it will greatly increase Vertcoin's hash power. Theoretically doubling the current hashpower instantly because there are only 2 consumer GPU markets, AMD and Nvidia. 5. Wallets - Yes Vertcoin does not support many wallets but it is in progress. iOS mobile wallet and as well as many more wallets will be supported very soon (upcoming patch I believe) 6. Ethereum switching from Proof of Work to Proof of Stake. Meaning that it will leave a lot of orphan ETH GPU miners coming to VTC. **All of this upcoming updates should be completed by end of this year.
Currently, cryptoworld is like the 1984's internet (netscape) era. Back then, there were lots of speculations and panic. In the next year or so, scam ICO's will be eliminated as well as many other shady coins like beeeconneecctt. Vertcoin and as well as some other solid coins will survive this bloodbath and become one of the top contenders in the crypto market.
Special thanks to @theBARBARIC and @Mo9731 for some details.
Thank You.
submitted by TDKOtherSide to vertcoin [link] [comments]

Market Weekly Report - Week of 11/05/2020

Market Weekly Report - Week of 11/05/2020
BTC-USD Hourly Chart
The Bitcoin had a strong rally recently due to the bitcoin halving event. The price went past $9,000 to reach as high as $10,045. It formed a double top at around $10,000 and showed signs of losing momentum, as indicated by the first arrow in the momentum chart. The price dipped to $9,464 and made a lower high at $9,787 before breaking the previously low and dipped further to $8,101.
Based on the most recent trading activities, a lot of people had taken profit between $9,700 and $10,000. When the traders saw a lower high at $9,787, they started establishing short positions in anticipation of a drop. If there is no positive news coming ahead, the BTC price may fall back to $7,760 where there was a breakout in end of April. Consider waiting for a sideway channel to form and then determine the direction of the trade once a breakout happens.
Review of the week:
Lennard Neo, head of research at Stack AM Pte., which provides cryptocurrency trackers and index funds, shared his view before the cryptocurrency’s upcoming halving, when the rewards miners receive for processing transactions will be cut in half as soon as next week, an intentional feature of Bitcoin designed to control inflation: “With the Bitcoin halving fast approaching, we believe a short-term pullback is highly likely immediately post-halving, as traders begin taking profits. In the longer-term, we can expect Bitcoin to register significant price appreciation toward the end of 2020 and early 2021.”
Paul Tudor Jones, the founder and chief investment officer of Tudor Investment Corp, one of Wall Street’s most-successful and seasoned hedge fund managers, says he sees the crypto asset as a hedge against upcoming inflation as central banks around the globe print money to relieve coronavirus-battered economies. Bloomberg News reported that Jones revealed in a message that one of his funds holds a low single-digit percentage in futures on the cryptocurrency and compared it to the gold trade back in the 1970s.
Disclaimer: The above market commentary is based on technical analysis using historical pricing data, and is for reference only. It does not serve as investment or trading advice.

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submitted by Coinviva to u/Coinviva [link] [comments]

The spot market impact of the Bitcoin halving - A detailed discussion

I am still working on my piece about what the true impact of a "halving" event in terms of the inflation of a cryptocurrency like Bitcoin is. That will come at some point in the future and will be furnishing with a model, rigorous analysis, and plots and things. In the meantime I have some thoughts that I would like to share in what should be about a 15 minute read. I will first present some general background, then a Bearish and Bullish perspective for the halving event. Finally I will share my own opinion about the impact of the halving.
----------------------------------------
Background:

Suppose that Bitcoin as a network has some fundamental fair value. The question about whether the current market respects Bitcoin's fair value is irrelevant, we are just concerned that a fair value for the network is coherent and exists. This discussion will largely focus on how the halving impacts fundamentals despite the opinion that the market might not always respect them.
The current supply is 18M coins, but in practice, is probably closer to about 13M coins given the coins that are believed to be lost / orphaned. In the next twelve years or so, another 3 million coins will be generated which will increase the actual realized supply by about 20%.
The Bitcoin network enjoys security from mining. We can quantify the price of forking Bitcoin and re-writing the ledger as the cost of obtaining a near-majority share of the network's hash power. If we assume that the mining ecosystem today is basically honest or at least interested in the long term success of Bitcoin, then the cost of an adversary (such as some nation-state) to come in and obtain a majority hash power in the network is proportional to how much Bitcoin pay's its miners.


------------------------------------------
Bearish Perspective:

From the point of view of miners, an average block is earning about 0.08 BTC from transaction fees these days with a coinbase reward of 12.5 BTC. This means that miners obtain roughly 99.4% of their income from the coinbase reward that inflates the currency, and 0.6% of their income is from transaction fees. That means that the security of the network is being paid for by users who hold the currency via inflation, and not by people who use the currency for transacting.
When the block reward is reduced from 12.5BTC to 6.25BTC, a few things could happen for miners. Let us consider the different possible outcomes:

(1) The transaction fees stay roughly the same and so the total income of miners is approximately cut in half (in BTC terms). If the fiat price of Bitcoin remains constant, then this outcome implies that the security (in terms of USD) of the Bitcoin network would also roughly be cut in half.
(2) The total income of miners stays the same in terms of BTC. This implies that the transaction fees will increase by about a factor of 50x as the burden of funding the network's security shifts from those who hold the currency to those who use the currency. The long term vision of the protocol is to eventually fund the network entirely using transaction fees.
(3) The total income of miners in terms of BTC drops, but the transaction fees also increase in a combination of (1) and (2).

What gives Bitcoin fundamental value is up to debate, but it stands to reason that the network's value is positively correlated with both its application for payments as well as its security (with respect to censorship) and consistency. Outcome (1) for miners implies that the security of the network will decrease dramatically as a result of the halving event. Outcome (2) suggests that Bitcoin may become extremely expensive to interact with it as transaction fees will grow immensely in terms of BTC which should also negative impact fundamentals.


-----------------------------------------------
Bullish Perspective:

(4) Perhaps the most obvious bullish argument for the halving is that inflation applies an economic pressure that decreases the value of each unit of currency and so decreasing inflation reduces this pressure. A lot of users choose to think of this pressure as coming from miners selling or "dumping" their coins on the market, but really this is just a matter of supply and demand. If the market capitalization of Bitcoin remains constant, i.e. the market has settled on some fair value for the network, then with each passing day a coin represents a smaller fractional ownership of the network and is therefore worth less.
(5) A bullish counter-point to outcome (1) raised above is that the fundamental value the network derives from mining and security may not be linear. For example, if we double the amount of money that the network spends on mining through new coin production and transaction fees, the network might not be twice as good. At some point, the security of the network is good enough and we have hit diminishing returns on increased spending on mining. If we are currently in that state, where Bitcoin is over-spending on mining, then decreasing that spending to reduce inflation should be a bullish thing.
(6) While not specifically related to the halving event, changes in fundamentals and deflation from lost currency compete with pressure from the inflation rate. Every day as users interact with Bitcoin, coins are lost due to death, faulty hardware, negligence and more. This puts a deflationary pressure on the currency as the effective supply is in constant decline. Additionally, aspects related to the adoption of Bitcoin, its normalization in our society, the regulatory structure surrounding it in major countries and more all contribute to the fundamentals and eventually price. It is possible that the price of Bitcoin is at a delicate tipping point where modest but constant improvements in fundamentals as well as deflation from lost currency is currently very carefully balanced by inflation, and a reduction in inflation will tip the markets into a bull-cycle.
(7) It is entirely possible that the price of Bitcoin is largely inconsiderate of fundamentals. The idea of a currency with a guaranteed fixed supply is both an easy narrative to understand and also emotionally compelling. Cryptocurrency market bull cycles are largely characterized by extreme cases of FOMO and so news about adjustments to inflation seem like a perfect catalyst.
(7.1) Another bullish argument is to recognize that (1) and (2) are both very real concerns that should negatively impact the fundamental value of Bitcoin, but that a bull cycle fueled by the narrative of decreased inflation would cause an increase in the USD price of Bitcoin, and so although miners may be compensated less in terms of BTC, their income in terms of USD may hold constant or even increase, leading to an increase in fundamental network value. This would be a "fake it till you make it" outcome for the halving.


-----------------------------------------------------
Neutral Perspective:

(8) In terms of who pays miners for the security that the Bitcoin network enjoys, there is a balance between holders, people who own the currency, and spenders, people who generate transactions on the network that pay fees. At the inception of Bitcoin, holders paid nearly all of the money responsible for funding mining with early transactions being accepted with no fee at all. Eventually, Bitcoin is programmed to operate with mining funded entirely by transaction fees with no inflation imposed upon holders. Somewhere in this spectrum of trade-offs there is an optimal configuration which maximizes the fundamental value of the network.
(9) It is possible that the network is in its most valuable configuration at the limit where transaction fees are entirely responsible for funding security. With each shift towards decreasing the contribution from holders we are inching closer and closer towards a more valuable network. These events will each correspond with an increase in market capitalization.
(10) It is also possible that the final configuration which funds mining exclusively by transaction fees is unstable. The seasonality of Bitcoin transactions along with the increased friction of payments may lead to a network with poor security properties which causes fundamentals and therefore market capitalization to decline. Miners already operate with an unprecedented amount of volatility and perhaps they really depend on their BTC income to be stable in order for their operating risks to make sense. Under these concerns it stands to reason that the most valuable configuration of Bitcoin has some fraction of miner income coming from inflation via new currency generation. Under this assumption, the value of Bitcoin should increase as we approach this configuration and decrease as we move further away, so then the open question is, "Is this optimal configuration in our past, present, or future?"

-----------------------------------------------------
My Perspective:

I am partial to (1) playing out, which is that the total revenue in terms of BTC paid to miners for each block after the halving will be only slightly more than half of what they are being paid currently. I believe that this negatively impacts fundamentals and I disagree with (5) in so far I do not believe that Bitcoin has hit significant diminishing returns in network security. I am not confident now that Bitcoin could withstand large scale attacks by nation states and I especially don't believe this in a future where executing such an attack is decreased by a factor of 2.

I am also partial to 6 and 7. I believe that generally speaking, the fundamentals of Bitcoin have been monotone increasing, meaning that things have really only gotten better for Bitcoin in the last few years. This does not need to be the case going forward, for example large government regulations could take away from fundamentals as well as attacks against the consistency of the network, but so far these things have not occurred. I also believe that the market for cryptocurrency is largely inconsiderate of fundamentals and so a narrative such as the halving which may not impact them could still be a catalyst for increases of 3x in spot markets. I believe that if this sort of scenario plays out, the effect on price is only temporary and will not be meaningful on longer time-frames (1-2 years). Trading cryptocurrency in the past few years has taught me to never be surprised that the market is not respecting fundamentals for months at a time and I have no idea what the time-frame of this event would look like.

I find (10) to also be intriguing. I actually believe that Bitcoin is currently pretty close to an ideal configuration in terms of where miner revenue comes from. I have done some light napkin math on the economics of different inflation configurations, and right now I am not in a position to say if this upcoming halving makes things better or worse, but I am confident that 4 halvings from now in 2032, the network configuration will be less favorable then it is now so we are not too far off.

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TLDR: The upcoming halving of Bitcoin may have a number of impacts on the Bitcoin network and therefore spot markets that are both bullish and bearish. My personal opinion is that fundamentals will decline while temporarily the markets improve via trading the halving narrative, but eventually will converge to the decreased fundamentals. I have no idea what the time-frame of this temporary event would look like.
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I would love to hear everyone's opinions about what aspects of the bearish and bullish scenario they see playing out as well as other arguments or points of view I neglected to mention.
submitted by Academic_Crypto to BitcoinMarkets [link] [comments]

Not bitcoin, not any coin, can scale on chain to meet the world's coming demand for decentralized money. We need to activate the feature that will allow off-chain solutions that do.

Just like Moore's Law predicted back in 1965 that computing power would double every 12 to 18 months, we are now witnessing the transaction counts for doubling on bitcoin at an even higher frequency.
Given that we are basically at maximum capacity already this means that if we were to scale on chain, the block size would have to double at that rate, leading to 8 MB blocks well before the next block reward halving and 128MB blocks before the halving after that or even sooner.
On chain scaling simply is unrealistic. The argument that segwit doubles the block size is besides the point because scaling the blockchain gets us nowhere. Doubling the block size does not buy a lot of time. Only secure, off-chain transactions (aka Layer 2 systems) can deliver on the promise of a large scale, worldwide, decentralized, secure system of money. And the most important aspect of SegWit is that it enables Layer 2 systems.
Miner refusal to activate segwit, which fixes the bug that prevents effective deployment of layer 2 solutions is the primary menace holding back bitcoin and, quite frankly, holding back the world's access to the future of money.
There are two paths to proceed with that have been making the top of this week's submissions: UASF and compromise of SegWit + 2MB blocks.
In fact, it took only 2 days of advocacy for UASF to bring the compromise recommendation out in full force.
We should not give up on either of these. Because actions speak louder than words, there is really no guarantee that Bitmain will actually ever accept SegWit even if the compromise solution is proposed once more. I welcome users to pledge to upgrade to a 2MB hard fork if SegWit is activated. If this gets Bitmain to signal for SegWit, then I say "fantastic". If this doesn't actually bring about miner activation of SegWit, however, before the August 1st flag day for UASF, then I think it's clear that BitMain is pursuing short term fees at the expense of long term viability of Bitcoin, and we can cut them off of fees until they activate SegWit by ourselves activating it using the UASF.
Remember, the UASF does nothing new if miners signal in favour of segwit before its flag day.
So I call on every user, those in favour of and those against big blocks to run the UASF clients and declare for or against bigger blocks as a following step. If we begin with SegWit, we get a bigger block from it (which is purely a temporary stopgap to deal with the next few months of volume) and the ability to deploy layer 2 solutions. Advocating for only bigger blocks only is a stopgap measure that leads to the same dead end we are already at.
As soon as segwit activates we can have a healthy discussion about how to build consensus around a hard fork. And the urgency will still be there to discuss it as bitcoin's growth will only accelerate once SegWit activates.
My concern with expecting a compromise to get approved in any short period of tie is that there are too many parties with too many conflicted motives with too much language barrier and too many details to expect a negotiated settlement to arrive in any reasonable time frame.
I have huge respect for the developer community who have delivered a system that has remained up without any interruption for years. I have huge respect for the miners who have invested heavily in securing this network from attack. I have huge respect for the users that have come on board and converted whatever portion of their savings to bitcoin and stuck with it through all the highs and lows.
There is nothing to lose by activating SegWit as soon as possible and keeping the debate about bigger blocks going. The UASF moves the community of all those constituents forward towards the necessary requirements of the future. If any one particular miner does not wish to be a part of that future, they have to be left behind, but not forever. They can rejoin at any time they choose.
Let's move forward. Let's activate SegWit by requiring all blocks to signal for it by August 1st via UASF. Let's make the future of money possible for the whole world.
submitted by logical to Bitcoin [link] [comments]

Halving Bitcoin. Is it worth waiting for?

Halving Bitcoin. Is it worth waiting for?
Within 4 months (on the 630,000 blocks), the Bitcoin community expects another, third Halving in the Bitcoin network - the process of splitting the number of generated awards by half the block mining.

What's that for?

Block award is the main incentive for bitcoin mining and therefore the main force of the network. Mining rewards are halved in order to prevent inflation. For this reason, bitcoin is often called "digital gold" - like metal, its quantity is limited and approximately in the year 2140 the whole limit will be extracted.
At the beginning of bitcoin development the miners shared 50 BTC from each mined block, and if this had continued, all bitcoins would be mined 3 years ago. Once all BTCs are issued, miners will have to earn only on commissions. But according to Satoshi Nakamoto's plan, the cryptocurrency should already become a globally demanded payment form by that time. At the moment, there are about 18 million BTCs in circulation, which is about 85% of the maximum amount.
Halving bitcoin is not planned by dates, but occurs every 210,000 blocks and reduces the reward by half. The next halving will occur on 630,000 blocks and will reduce the block reward from 12.5 to 6.25 bitcoins.

What's the problem for miners?

With each block there is a mathematical problem, which is solved by the mining equipment . This problem becomes more difficult with increasing number of connected miners, and the reward for each of them decreases. After halving, the reward for the block is reduced by half.
There are three ways out of this situation:
  • Increasing commissions. If network rewards are insufficient, miners have no choice other than to increase the commission for their work.
  • Market exit for some of the miners. When there are few competitors left, there will be no one to share the reward with, so the remaining miners will receive more.
  • The rising cost of bitcoin. It' s the easiest, most known and historically proven scenario. The profitability will remain at the same level if the reward is halved, and the bitcoin value is doubled at the same time.
But it can be argued that rules aren't written for everyone. Mining in China will remain profitable if the current price is maintained even after the award is halved. It is due to cheap electricity, which is in huge surplus in Sichuan province of China. At the moment, it produces more than half of all the hashreates of the main cryptocurrency.

Should bitcoin go up?

Historically, the price has risen a lot after each halving. So, the price of one bitcoin jumped from $11 to $1,000 in a year after the first halving. The second halving took place four years later and it did not have a serious impact on the price during the first year, however, during the next year the tendency changed to sharply bullish and the bitcoin was estimated at 20,000 USD at its peak.
What should we expect from Halving 2020? Some point to undisputed historical facts, others believe that coming half-price is already included in the last bull. One thing's for sure: Don't expect big price changes right on Halving's day unless the media speculate that Bitcoin is in short supply and dispels FOMO among the people.
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submitted by thetruesteven to INEL_Company [link] [comments]

Bitcoin Block Reward Halving Countdown.. [19/09/2018] The Bitcoin Halving - The countdown begins Ready for the Next Peak - Bitcoin Halving 2020 Next Reward Halving Taking Down Bitcoin? Historical Analysis The World Of Bitcoin And The Next Mining Reward Halving

While the halving may persuade some users to take the plunge, others in the Bitcoin world may find that the new rules — the 6.25 BTC reward — don’t suit them. Miners may see the price of Bitcoin appreciate, which is something they’re likely to welcome, but there are doubts about whether the theoretical increase in price can match the expected doubling in mining costs. Since the halving reduces the supply of new bitcoins, and demand usually remains steady, the halving has usually preceded some of Bitcoin’s largest runs. Here is a look at previous halvings and their effects on Bitcoin prices 150 days later: 2012 Halving. The November 28th block halving was the first halving: While the halving may persuade some users to take the plunge, others in the Bitcoin world may find that the new rules — the 6.25 BTC reward — don’t suit them. Miners may see the price of Bitcoin appreciate, which is something they’re likely to welcome, but there are doubts about whether the theoretical increase in price can match the expected doubling in mining costs. In particular ... This is the third halving since Bitcoin's creation in 2009. The first took place in November, 2012, and the second in July 2016. The next halving is due to take place in May 2024. Bitcoin inflation rate per annum at next block halving event: 0.84%: Bitcoin inflation per day (USD): $11,792,700: Bitcoin inflation until next blockhalf event based on current price (USD): $15,206,686,650: Bitcoin block reward (USD): $81,893.75: Total blocks: 654,312: Blocks until mining reward is halved: 185,688: Total number of block reward ...

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Bitcoin Block Reward Halving Countdown.. [19/09/2018]

As Bitcoin's halving draws closer and closer, you hear more people buzzing about it in the crypto world. What exactly is Bitcoin's halving, how does it work,... With the next Bitcoin halving on the horizon, we expect a rise in the volatility in the Bitcoin market. The last two halvings were followed by strong bull runs, so we will lay out the facts that ... Brave New Coin’s new halving countdown page is dedicated to estimating the date and time of the next Bitcoin Block Reward Halving. We have created four scenarios based on different block time ... In this video we take a look at a very interesting graph showing the correlation between price and time until block reward halvings. How does this phenomenon impact the bitcoin price and it's hash ... Next halving 2020.. More info : whtsapp http://mesincetakbitcoin.wasap.my Layari : http://bitmoment.my/ezyqueen

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