Investing in Cryptocurrency Mining Stocks Investing News ...

08-13 15:22 - 'You could donate some to a charity you believe in. You could buy ASIC mining equipment and mine more BTC to get richer. You could invest in some other businesses (restaurant, store, etc) or stocks. Or you could Buy gold and I w...' by /u/jefechi removed from /r/Bitcoin within 21-31min

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You could donate some to a charity you believe in. You could buy ASIC mining equipment and mine more BTC to get richer. You could invest in some other businesses (restaurant, store, etc) or stocks. Or you could Buy gold and I would highly recommend buying silver right now.
Also, you could help me pay my college tuition which is $1500 that financial aid won't cover :(
College fund: 1MMKbYv3yqx1m4RNwEjA5VYjR7tqCjp5vr
:D
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Author: jefechi
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Dipping toe into blockchain sector, need guidance.

I’m debating these 3:
Which do you prefer if any, and why?
I’m going to very cautious with either as i consider them all pure speculative plays.
I’m also wondering if all that computing capacity could be profitable if converted to another mass application in case of blockchain becoming unprofitable? I know they are being used for research in Covid vaccine but are there any income generating venus tou can think of?
Any input is appreciated, thanks!
submitted by HMSS-Overkill to CanadianInvestor [link] [comments]

Leads you to a comprehensive understanding of Forbes

Leads you to a comprehensive understanding of Forbes

https://preview.redd.it/1dra1br1xu351.png?width=740&format=png&auto=webp&s=925b38326cb8aa4f4b2863670ada61005ee72c4c
What is the hottest blockchain project in 2020?
Besides GFS, GFS is still GFS in my mind! GFS currency - the only token of Forbes cross chain blockchain!
Forbes is the latest generation of blockchain, which can be said to be a new blockchain mode, or it is not a pure blockchain project. As we all know, in the era of blockchain 1.0, the bitcoin of Nakamoto brings decentralized distributed bookkeeping book, which enables human beings to have just assets for the first time; in the era of 2.0, the Ethereum smart contract created by V God makes the blockchain have divergent applications; in the era of 3.0, innovation public chains such as EOS make the application of blockchain easier to land. It will open Forbes in the era of blockchain 4.0 and create a distributed financial era of "ten thousand chain interconnection". My feeling is that Forbes is going to overthrow the traditional Internet and the classic blockchain, and reshape a financial world built directly on the blockchain.
The most classic sentence on the Internet is: change your life, but it has nothing to do with you.
In this way, Forbes uses the philosophy of blockchain and further technology to redo blockchain and bring blockchain to a new dimension. Today's bitcoin looks like a monument and a myth, but Forbes is using its cross chain technology and financial deployment to gently reinterpret the blockchain.
Next, I will expand what you are concerned about and what I see in the form of Q & A:
1. Is it investment or speculation to participate in Forbes?
Although we do not exclude speculation, there is no doubt that participating in Forbes is one of the best investment behaviors in 2020, no less than investing in bitcoin in 2013 and Ethereum in 2016. Forbes is a pure technology project, with no messy black box operation. As Forbes early deployed the ore field to facilitate the construction of cross chain system, early users can rent the Forbes BTC miner loaded with self-developed bitcoin ASIC chips by way of mortgage, with the strongest configuration on the ground. Moreover, in the process of mining, the early nodes do not even need to pay a penny, only mortgage deposit can deploy the physical miner. The income obtained can also participate in the early stage node plan carried out by Dao organization, and part of the income can be converted into GFS through Forbes wallet.
And the deposit is not a routine, all the mortgage deposits will be locked in the chain. With the shortening of the lease term, each day will be returned to the user's wallet through the "deposit smart contract", without any centralized individual and organization participation in the whole process. In this way, it is equivalent to zero risk investment! After all, Forbes, with its cryptology and open source spirit, is inherently powerful. What Forbes wants to change is the life of centralization!
And then there's no more. Jane is not simple.
2. Why do you like Forbes?
Very simple, blockchain 4.0
First of all, let's not talk about anything. Forbes has solved a problem - mining hegemony.
In the past, blockchain seems that nodes can enter and leave freely, but in fact, it needs a huge threshold to become nodes and obtain mining rewards. Whether it's bitcoin, you need to buy very expensive and complex mining equipment (ASIC miner), or EOS, Tron and other POS projects, and you need to hold a large number of coins to be elected as nodes. All in all, most of the current blockchain systems need very high mining costs, which in essence violates the principle of zhongbencong's blockchain design.
The powerful thing about Forbes is that it creatively constructs dpoc as a consensus mechanism of trunk chain (main chain). Dpoc is a kind of common understanding of POC. There is no big deployment threshold for mining with hard disk miner. As a result of the consensus between Forbes blockchain Multi Chain Design and dpoc, all mining machines that do not have the relay chain node selected can pack the interaction information between the parallel chain and the relay chain, and can also obtain the block reward. In essence, such a design realizes Zhongben Cong's idea that everyone can dig. Let alone Forbes to build a mine pool, to build the strongest mining machine that can dig out the Forbes token GFS.
With this in mind, which blockchain product can match.
Layout of Forbes
The vision of Forbes: to build the most universal distributed financial system in the world, driven by Forbes, the most widely used cross chain system in the world.
I saw two key words: cross chain, distributed Finance
Cross chain is the most urgent problem in current blockchain ecology. In the past 10 years, various blockchain systems have been deepening in security and performance, but no progress has been made in chain and chain scalability. As you can see, the chain and the chain is an island. Can EOS players and wave players break the bond?
In the human financial life, transaction, loan, personal credit, supply chain finance, stock, commodity... They are directly full of interaction and connection. It can be said that human beings are dealing with all kinds of transactions all the time. Can the isolated blockchain really solve the problem?
Forbes is born to be a global distributed financial system and truly a financial ecosystem. Imagine what a change it would be if you could smoothly carry out blockchain financial activities with foreign small partners. This pattern is too big for me to say. But please believe that if this is done, it can be described as a complete disaster.

https://preview.redd.it/ee15vfv8xu351.png?width=1450&format=png&auto=webp&s=b36e2aa2548e0320b127d30e67d28511a666b30b
3. Is it better to mine or invite new people?
Since this is my experience interpretation, I think: invite, boldly invite new people. Every time you invite one, you add a certain amount of calculation power. It's good to mine in Buddhism, but if you can participate in the birth of a great project, you can get more profits. Why not?
Let's take a different perspective: now that you recognize Forbes, you recognize its value. Or you're not going to dig, are you! So, why can't we add more yards! Since we are trying to change our destiny, this is the highest lever. If it does, which lever can be bigger than Forbes!
So, invest money or energy, and do what you can.
4. Do I want to join the Forbes pool project?
Do you want to do it.
They all recognize the value, so they can download the application directly.
My original intention:
First of all, GFS coin is a new mining model - POC hard disk mining that "everyone can dig, everyone can benefit". It avoids pow (proof of work workload) which is a large power consumption mode. In the initial stage of the main network online, Forbes opened the mine pool plan, leasing the mine machine at zero cost, becoming the earliest node of blockchain 4.0 representing the project, and obtaining the maximum benefit. Why not? You know, GFS production is also halved in four years. To dig now is to dig bitcoin before 2013, without cost.
Secondly, in this stage, we can also increase the number of invited nodes. After the completion of the mining pool plan, we can only rely on hard indicators to increase the computing power. Now we can also rely on our efforts to get more profits. Therefore, in the face of equal opportunities for all, this is a great opportunity to take the initiative. Still hesitant?
5. Blockchain is my knowledge blind area. What can I do if I don't understand cross chain knowledge?
First of all, you have to ask you, this is the excuse you don't want to get wealth?
Not only Forbes is your knowledge blind area, but blockchain is a knowledge blind area for ordinary people. However, you should know that in 2020, the State advocates blockchain, the central bank DCEP has been put into trial operation, and blockchain has been applied in many aspects. Are you still in your blind spot?
Of course, it's not good to pull the national flag. Let's talk about something practical. Opportunity always appears in new things. Ask, what's the matter with you, a solidified model? You have money or connections. I believe that choice is more important than effort. A road, if we choose the wrong direction at the beginning, the harder we work, the farther away we are from our goal.
Therefore, the knowledge blind spot is not my problem, but whether you have a heart willing to contact new things!
Among the miners I know, there is a 67 year old elder brother who has been a soldier, a factory, a traditional businessman and a cell phone. Do you still have his blind spot?
6. Will Forbes succeed?
To be honest, I don't know. But I know that it is the blockchain project that I hope to reach the most in 2020. For details, please refer to the second question, why I like Forbes. If you really question Forbes, you can choose to only participate in the "miner Alliance Plan" and choose to mine at zero cost. No matter how the Forbes project progresses, you can get the benefit of mining without cost. Why not? Besides, when the Forbes project is really implemented, you can decide whether to invest in GFS. I'm sure you will have your own judgment at that time.
7. What is the most important thing to dig GFS?
Insist, insist, or insist.
We must make full use of our efforts in the earliest planning activities of the mine pool. After all, mining at zero cost + inviting to increase the calculation power and increase the support in the wet season. At this stage, we must dig more coins and exchange more for GFS. Maybe the reward coins you dig out in three months can't be found in a year after you try to buy hard disk mining machines for nodes.

https://preview.redd.it/wi81roocxu351.png?width=750&format=png&auto=webp&s=0cd677f420071cfad942e426d4b415165915c2d0
8. There are so many people who rent mining machines first. Do I have a chance?
People die more than people, and goods are thrown away more than goods. Don't compare with others, just be yourself.
God said, I can fulfill your one wish, but I will give you twice as many neighbors.
You will choose 10 million positive choices,
Or one less arm in the dark?
Mining is like this. Those old miners are your neighbors. Dare to own 10 million good, do not think about neighbors than you 10 million. Is that right? And when there are 10000 GFS, do you still want someone to have 100 more than you?
9. How much is GFS worth?
To be honest, I don't know. The number of GFS is 21 million bitcoin, and the price of bitcoin is about 60000 yuan. The GFS main network has just been launched. In some markets, its price has increased more than 10 times in five days, far exceeding the price of bitcoin before the half reduction. The miners who rent mining machines in advance are blessed.
As for the future, with the start of the implementation of blockchain financial facilities this year, GFS must be just the beginning. Where is the top? We witnessed it together.
10. Which do I want, kusd or usdt?
For now, it doesn't matter which one you use. Although usdt has a lot of potential risks, there are still many people using it. However, we all know that it will have a thunderstorm sooner or later.
As a cross chain gold stable currency, when cross chain finance begins to integrate into public life, kusd will show its power, which is better than issuing a usdt once in a chain. Moreover, more than 95% of the value of each kusd is based on gold, which can be exchanged by major gold exchanges in the world. The stability of gold. Have you seen it clearly in this epidemic? This is beyond the dollar.
submitted by forbeschain to u/forbeschain [link] [comments]

What is the point? To invest? To mine it? To stockpile? I'm a bit lost

Howdy,
Let me preface that I am at the very least intrigued by blockchain and I'm also interested in the general idea of bitcoin - money system w/o a central bank behind it. I'm not looking to start a fight or to criticize/shame bitcoin, so as long as you get where I'm coming from, that's good.
  1. Obtaining it - mining is out of the option for me, I don't have $15,000+ lying around to buy an ASIC, and then the electric bill behind that. I suppose I could join a mining pool, but I'll return to this later.The second is to accept bitcoin for say if I was selling products/services - sure, I'd have to a wallet set up, but I will come back to this later as well.The third is to purchase' in it - I've seen other redditors remark they put aside half of their left over money each paycheck into bitcoin as an "investment".
  2. As an investment, I feel like bitcoin is playing the stock market without the modicum of protection that the SEC/other Wall Street regulations (lol) offer you - if you're wallet is part of a leak, like the input.io one, you have no recourse to fall back on, and I don't think the courts at least in the U.S have been receptive to recovery efforts by potential plaintiffs.
  3. The use of it. To piggy back on the investing, I'm using the dollar to buy it in the first place - and I don't really see myself using bitcoin for some of the more unsavory places that accept it to be frank about that. Places that might be inclined to accept it are likely just gonna convert it back to cash at the end of the day as well I feel like.
I'm interested but I'm still bit a hesitant to dive headfirst cause of those and more, but I'll try to keep it as short as those 3 for now.
submitted by EhManana to Bitcoin [link] [comments]

How are FPGAs used in trading?

A field-programmable gate array (FPGA) is a chip that can be programmed to suit whatever purpose you want, as often as you want it and wherever you need it. FPGAs provide multiple advantages, including low latency, high throughput and energy efficiency.
To fully understand what FPGAs offer, imagine a performance spectrum. At one end, you have the central processing unit (CPU), which offers a generic set of instructions that can be combined to carry out an array of different tasks. This makes a CPU extremely flexible, and its behaviour can be defined through software. However, CPUs are also slow because they have to select from the available generic instructions to complete each task. In a sense, they’re a “jack of all trades, but a master of none”.
At the other end of the spectrum sit application-specific integrated circuits (ASICs). These are potentially much faster because they have been built with a single task in mind, making them a “master of one trade”. This is the kind of chip people use to mine bitcoin, for example. The downside of ASICs is that they can’t be changed, and they cost time and money to develop. FPGAs offer a perfect middle ground: they can be significantly faster than a CPU and are more flexible than ASICs.
FPGAs contain thousands, sometimes even millions, of so-called core logic blocks (CLBs). These blocks can be configured and combined to process any task that can be solved by a CPU. Compared with a CPU, FPGAs aren’t burdened by surplus hardware that would otherwise slow you down. They can therefore be used to carry out specific tasks quickly and effectively, and can even process several tasks simultaneously. These characteristics make them popular across a wide range of sectors, from aerospace to medical engineering and security systems, and of course finance.
How are FPGAs used in the financial services sector?
Speed and versatility are particularly important when buying or selling stocks and other securities. In the era of electronic trading, decisions are made in the blink of an eye. As prices change and orders come and go, companies are fed new information from exchanges and other sources via high-speed networks. This information arrives at high speeds, with time measured in nanoseconds. The sheer volume and speed of data demands a high bandwidth to process it all. Specialized trading algorithms make use of the new information in order to make trades. FPGAs provide the perfect platform to develop these applications, as they allow you to bypass non-essential software as well as generic-purpose hardware.
How do market makers use FPGAs to provide liquidity?
As a market maker, IMC provides liquidity to buyers and sellers of financial instruments. This requires us to price every instrument we trade and to react to the market accordingly. Valuation is a view on what the price of an asset should be, which is handled by our traders and our automated pricing algorithms. When a counterpart wants to buy or sell an asset on a trading venue, our role is to always be there and offer, or bid, a fair price for the asset. FPGAs enable us to perform this key function in the most efficient way possible.
At IMC, we keep a close eye on emerging technologies that can potentially improve our business. We began working with FPGAs more than a decade ago and are constantly exploring ways to develop this evolving technology. We work in a competitive industry, so our engineers have to be on their toes to make sure we’re continuously improving.
What does an FPGA engineer do?
Being an FPGA engineer is all about learning and identifying new solutions to challenges as they arise. A software developer can write code in a software language and know within seconds whether it works, and so deploy it quickly. However, the code will have to go through several abstraction layers and generic hardware components. Although you can deploy the code quickly, you do not get the fastest possible outcome.
As an FPGA engineer, it may take two to three hours of compilation time before you know whether your adjustment will result in the outcome you want. However, you can increase performance at the cost of more engineering time. The day-to-day challenge you face is how to make the process as efficient as possible with the given trade-offs while pushing the boundaries of the FPGA technology.
Skills needed to be an FPGA engineer
Things change extremely rapidly in the trading world, and agility is the name of the game. Unsurprisingly, FPGA engineers tend to enjoy a challenge. To work as an FGPA engineer at a company like IMC, you have to be a great problem-solver, a quick learner and highly adaptable.
What makes IMC a great fit for an FPGA engineer?
IMC offers a great team dynamic. We are a smaller company than many larger technology or finance houses, and we operate very much like a family unit. This means that, as a graduate engineer, you’ll never be far from the action, and you’ll be able to make an impact from day one.
Another key difference is that you’ll get to see the final outcome of your work. If you come up with an idea, we’ll give you the chance to make it work. If it does, you’ll see the results put into practice in a matter of days, which is always a great feeling. If it doesn’t, you’ll get to find out why – so there’s an opportunity to learn and improve for next time.
Ultimately, working at IMC is about having skin in the game. You’ll be entrusted with making your own decisions. And you’ll be working side by side with super smart people who are open-minded and always interested in hearing your ideas. Market making is a technology-dependent process, and we’re all in this together.
Think you have what it takes to make a difference at a technology graduate at IMC? Check out our graduate opportunities page.
submitted by IMC_Trading to u/IMC_Trading [link] [comments]

White Paper, Miner, Pizza … | "Old Objects" in the Cryptocurrency Museum

White Paper, Miner, Pizza … |
https://preview.redd.it/giu1ssilga151.jpg?width=900&format=pjpg&auto=webp&s=41510785ccdc0d99544ec74229f62427d1c0ce3e
Museum has played the role of a time recorder. Talking about bitcoin, more than ten years has passed since the creation of it. Although it is uncomparable to the stock market with a hundred years of history, during the ten years, in the different stages of the development of bitcoin and blockchain have continuously poured in geeks, miners, speculators, newbies, leaving keywords such as sudden rich, myth, scam, belief, revolution, etc.
There are also many “old objects” with stories in the “Museum” of the cryptocurrency realm. On Museum Day, let ’s review the stories brought by these “old objects”.
The First Digital Currency White Paper — Bitcoin White Paper
On Oct. 31, 2008, Satoshi Nakamoto released the Bitcoin white paper — A Peer-to-Peer Electronic Cash System in the cryptographic mail group where he belongs, and Bitcoin was born since then.
A white paper is a document that explains the purpose and technology used in cryptocurrency. Usually a cryptocurrency uses the white paper to help people understand what it provides, and it is also an important information channel for investors to understand a project. Therefore, the level of the white paper affects people’s confidence towards the coin.
In a word, in the cryptocurrency and blockchain industry, the value of a white paper is equivalent to that of a standard financing speech. The white paper plays a vital role in this emerging market.
The First Public Bitcoin-Physical Transaction — Pizza
Since Satoshi Nakamoto mined the Bitcoin genesis block on January 3, 2009, Bitcoin has only been spread among the small crowd and has not realized its value.
Not until May 22, 2010, Bitcoin enthusiast “Laszlo Hanyecz” bought a pizza coupon worth $25 with 10,000 bitcoins. This is the first public bitcoin-physical transaction. Bitcoin has its price with 0.3 cents per bitcoin.


This day has also become the famous “Bitcoin Pizza Day” in Bitcoin history. Bitcoin as the imagination of the financial system has more practical significance. The tenth anniversary is coming. How will you commemorate it? Will you buy a pizza?
The First Digital Asset Exchange — Bitcoinmarket.com
After the birth of Bitcoin, in addition to mining, the only way to get Bitcoin in the early days was to conduct transactions on forums or IRC (commonly known as Internet Relay Chat). However, this method involves both long transaction time and great security risk.
In March 2010, the first digital asset exchange — Bitcoinmarket.com launched. However, due to lack of liquidity and transaction depth, it disappeared soon after its establishment, but Bitcoinmarket.com opened the era of the operation of the cryptocurrency realm exchange 1.0.


On June 9, 2011, China’s first Bitcoin exchange — Bitcoin China (BTCChina) launched. Its founder, Yang Linke, translated Bitcoin into Chinese “比特币” for the first time. In 2013, China’s bitcoin trading entered the golden age, and exchanges sprung up. China monopolized more than 90% of the world’s bitcoin transactions. Now, if the top three exchanges Binance, Huobi Global, OKEx are the Exchange 2.0, then the index exchange represented by 58COIN called the 3.0 version, leading the trend.
The First Generation of High-Performance Miner — ASIC Miner
When Satoshi Nakamoto created Bitcoin, the only way to get it is to use computers (including home computers) to mine, mainly relying on the CPU to calculate. However, as the value of digital currencies such as Bitcoin has become higher and higher, mining has become an industry with the competition is getting fiercer, accompanied by increasing difficulty of mining. Therefore, hardware performance competition starts.
In July 2012, the genius Jiang Xinyu (Internet nickname is “Friedcat”) from the junior class of the University of Science and Technology declared at the forum that he could make ASIC miners (chips). As far as mining computing power is concerned, ASICs can be tens of thousands or more higher than the same-generation CPUs and GPUs.
At the beginning of 2013, Zhang Nanqian (Pumpkin Zhang), a suspended doctoral student from the Beijing University of Aeronautics and Astronautics, developed the ASIC miner and named it “Avalon”.


In June 2013, the Friedcat’s miner USB was finally released, and it maintained 20% of the computing power of the entire network.
At the end of 2013, Wu Jihan, used the tens of millions yuan earned from Friedcat through investment, worked together with Jenke group, to develop the Antminer S1. Since then, the miner manufacturer Bitmain began to enter the stage of history.
It is no exaggeration to say that Friedcat and Zhang Nangeng have opened the domestic “mining” era.
The Birthplace of China’s Bitcoin — Garage Coffee
It is not only the “old objects” that record history, but also a place that everyone in the cryptocurrency realm aspires to.
Guo Hongcai once said, “Without no The Garage Café, there will be no cryptocurrency realm today. Since it is a very mysterious place that all waves of people from the café joint together to create today’s digital asset industry.

▲ In March 2013, American student Jake Smith successfully purchased a cup of coffee at The Garage Café with 0.131 bitcoins. This move attracted the attention of CCTV, and it conducted an interview.
Indeed, The Garage Café is the world ’s first entrepreneurial-themed coffee shop. It has been legendary since its establishment in 2011. The Garage Cafét is not only the core coordinate on China’s Bitcoin map, but also the birthplace of the Chinese cryptocurrency circle, where digital asset realm tycoons including Guo Hongcai, Zhao Dong, Li Xiaolai, Li Lin have made their ways.
The development of digital currency is only 11 years old. Through these “old objects”, we review the various stories of this wave of technology together, hoping to help you understand the development process of the digital currency field. Meanwhile, I also remind all practitioners to use history as a mirror and forge ahead.
Website: https://www.58ex.com/
Twitter: https://twitter.com/58_coin
Facebook: https://www.facebook.com/coin.58COIN
Telegram: https://t.me/official58
Medium: https://medium.com/@58coin_blog/
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Decred is insanely undervalued - A Confluence of Blockchain mechanics and Raw Scarcity

Decred is insanely undervalued - A Confluence of Blockchain mechanics and Raw Scarcity
Decred has caught a burst of long overdue wind today.
Below is my thesis on recent price action drivers and why I think Decred is insanely undervalued right now from an on-chain/blockchain mechanics perspective.
This is an expansion on a tweet I put out here https://twitter.com/_Checkmatey_/status/1190349477120552961
Fundamentally, the project is one of the most undervalued assets in the market and I believe the largest information asymmetry next to Bitcoin. The smart money know this. They have been accumulating. Looking at the volume of DCR moving on-chain, we can see a significant amount of DCR moving in 2019 at the current support range. We know that DCR is always on the move due to tickets so when we see high volume nodes like this, it supports the notion of actual accumulation in addition to the usual transaction flow. We have seen similar growth in the median and mean transaction sizes throughout 2019. Larger wallets, larger DCR purchases.
Update: Note how the 2019 volume node, if just looking at USD chart could be attributed to Dec-Apr period or the recent drawdown. However looking against the BTC chart confirms that the dominant accumulation has occurred during the recent period as the BTC price probes the lows. This is what I consider a high volume zone of support characterised by a large transfer of coins (miners selling, accumulating buyers).
On-chain DCR volume profile plotted against price for BTC (black) and USD (blue)
The recent price action drawdown in my opinion is a result of Miners going too hard to fast. ASICs were introduced in early 2018 and we see an explosion in PoW Difficulty. Mining is a leveraged play for DCR and in this case is unlike what occurred for BTC in that it was almost four years until ASICs were on the scene for Bitcoin. This means that Bitcoins naturally high early inflation had time to disperse before ASICs and serious hardware investment came online. ASICs are capital intensive, not hobbyist grade meaning coins mined must necessarily become coins sold.
We can compare the insane growth in Decred mining since Jan 2018 against the market to see this on a relative scale. Mind you, this is a bullish signal. Miners are committing heavy capital to the Decred chain security. They have done their due diligence and have high conviction. That is not something to ignore.
Full tweet on this here https://twitter.com/_Checkmatey_/status/1177650799050133504
Normalised difficulty growth (left) since Jan 2018 and (right) 2019 Year to Date
As miners over-extend without support of price appreciation, they must sell more coins to pay bills. Eventually the weak miners have to capitulate and difficulty ribbon squeezes as mining equipment is switched off. We have seen this play out for Bitcoin where squeezing of the difficulty ribbon indicates a valuable period for accumulation. Willy Woo talks about this here https://woobull.com/introducing-the-difficulty-ribbon-the-best-times-to-buy-bitcoin/.
What happens next is that the strong miners gain an increasing share of the hashrate. Their energy is thus rewarded with more DCR and so they can sell less of their income and Hodl more. This effectively begins to constrain supply rather than the oversaturation during capitulation. Over time this leads to a reversal in price action which further perpetuates the effect.
Price of a scarce asset must appreciate with reduced circulating supply assuming demand relatively remains stable or increases.
Decred total cumulative block subsidy paid (price x block reward DCR) and Difficulty ribbon
This is actually very healthy for Decred. Coins are being distributed by miners en-mass right now, nullifying the risk of miners holding too high of a supply within the staking system leading to centralisation. I would argue that this distribution of coins is one of the most important and bullish signals long term. We know that miners stake as well and thus they are able to generate income on Hodled coins. I expect this to actually soften the degree of miner capitulation as they can turn off power whilst still generating income.
For this reason, I do not suspect we will see photos of mountains of Decred ASICs being thrown out as we saw for Bitcoin in 2018. The machines are simply put on hold until price reverses to justify power consumption. This is a valuable business feasibility case for miners and a feature of long term sustainability in the chain security.
Decred Resilience
This is where the elegance of Decred resilience steps in.
As miners slow, supply saturates, price drops.
DCR Tickets become cheaper.
Stakeholders step in and accumulation begins.
The Ticket Price hit an ATH of 140+ DCR as Stakeholders begin accumulating and commit capital to secure the chain. The Hybrid PoW/PoS system works as a counter balance. When price is in a strong uptrend, stakeholders are provided an exit to capitalise on gains as miners have a strong case for expanding their operations (PoW dominant security). During price drawdowns, miners drop out and the cheap DCR stimulates Hodlers buying and locking capital which locks down available supply from attackers. An attack would thus drive price higher and the cycle repeats.
As above, showing the total DCR locked in tickets hits an ATH as price drops due to miner capitulation
PermabullNino made the observation that Decred functions as an elegant yet robust accounting system. His discussion on block subsidies are shown in the charts above and linked here https://medium.com/@permabullnino/decred-on-chain-a-look-at-block-subsidies-6f5180932c9b.Decred has a has past, present and future cash flows distributed to those who support it most. This puts Decred security in good hands- Miners 60%- Stakeholders 30%- Builders 10%
Price is currently hovering around the PoW total subsidy paid (red line) and means miners are indeed feeling the squeeze as this is the cost basis of all DCR paid to date. Once you factor in overheads and capital costs, it makes sense we are seeing DCR supply distribution. The last time we saw price dip to this line was early in Decreds history and was followed by a rapid repricing.
We now have three mechanisms at play which will act to constrain supply
  • Miners are distributing heavily but eventually will switch to hodling as the strong miners hash share grows.
  • Stakeholder are absorbing supply en mass and locking in tickets due to relatively cheap prices
  • Inflation rate is in a state of constant reduction
Scarcity
My recent work looking at the Decred stock-to-flow model (which does exist and is convincing, contrary to what the Bitcoin maxi community may want to believe), suggests that DCR is in the oversold range. It has deviated by 1.5 standard deviations from the S2F model mean which is near identical to Bitcoin at 50% supply mined. Historically for Bitcoin and Decred, this has been an opportune period for accumulation. More on this discussion in my tweet here https://twitter.com/_Checkmatey_/status/1184159137564889089
Note that Decred, likely due to the smooth issuance and difference in market awareness, is less volatile than Bitcoin. The significant undervaluation of Bitcoin at 50% mined was due to the first 2012 halving where it was a very different and far smaller market. I would expect DCR to be repriced sooner rather than later as the smart money steps in having now developed Bitcoin hindsight.
Standard deviations of DCR and BTC price from the respective stock-to-flow linear regression models
As a final note, if we look at Decred and Bitcoin market valuations plotted against ratio of 21M coins issued, which normalises for coin age, we see a fascinating similarity in these coins trajectory. Bitcoin was worth $127M at 50% coins mined and Decred was worth $180M. Considering we are in a log scale market, this is practically the same. Decred has achieved this value both benefiting from market awareness and size, but also in the face of heavy (albeit generally ill-equipped) alt-coin competition, quite remarkable.
Decred and Bitcoin Market and Realised Caps and S2F models plotted against ratio of 21M coins mined
Given that Decred has such insanely strong fundamentals, has developed a convincing monetary premium in it's short life and traverses the same stock-to-flow path as Bitcoin, I believe there is immense value flying under the markets radar.
The recent price action drawdown can reasonably be attributed to miners over-extending. However based on both prior Decred behaviour and drawing comparisons to Bitcoin history, there is a strong argument to be made that supply will soon be constrained on multiple fronts and the current value is both highly undervalued and being absorbed by the smart money.
Feedback, counter-points and discussions welcome.
Cheers,
CM.
submitted by __checkmatey__ to decred [link] [comments]

Video card prices and cryptocurrency mining v.2: electric boogaloo

Six months ago, I put together a post on the impact of cryptocurrency mining on the prices of video cards. The hope was that supply would increase, demand would drop, and prices would return to normal. Unfortunately, prices are on the rise again.
I've therefore updated and rewritten the original post to reflect a situation that affects a large number of the builders on /buildapc.
So, you may have noticed a resurgence in discussion about the current hike in the price of video cards. Or you may have found the price of certain cards (especially, but not limited to, AMD's RX 570/580 and Nvidia's 1060/1070) higher than you expected.
You know, I did. What's going on?
In effect, cryptocurrency mining (the solving of complex mathematical problems that underlies the transactions for a given currency) continues to drive up demand for video cards, both new and used, as people invest in consumer hardware to get involved. Consequently, the availability of cards is low, and prices are high.
With major retailer stock running low, it's hard to get an idea of the inflation at play. As a very general idea, here's a basic rundown of mid-tier recommended retail prices compared to current reseller prices on Amazon:
Card RRP (USD) Amazon
RX 570 4GB ~$179 ~$400+
RX 580 8GB ~$229 ~$500+
GTX 1060 6GB ~$249 ~$400+
GTX 1070 8GB ~$379 ~$600+
GTX 1070 Ti 8GB ~$450 ~$750+
This again? Why now?
Cryptocurrency prices are spiralling, and people are looking to mine whatever they can. Moreover, the nature of new cryptocurrencies encourages the purchase of consumer hardware:
Bitcoin remains the largest of these currencies, but increasing concern about transaction speed and cost has recently led to a rise in alternatives. The most prominent of these is Ethereum.
Ethereum is designed to be resistant to ASICs - chips designed specifically for cryptocurrency mining - which means that potential miners must stick to consumer video cards.
What happens next?
Anyone who can confidently predict the long term fortunes of the cryptocurrency market probably isn't browsing /buildapc threads on the prices of computer hardware.
Still, eventually™ it is intended that Ethereum will switch from a proof of work (i.e. mining) to a proof of stake (based on possession of currency) system. Long story short, this will mean no more video card demand from Ethereum miners.
Unfortunately, there is no fixed date for when the switch is due to occur. Not to mention that this says nothing of other coins that users may try to mine.
What can I do in the meantime?
Further reading (updated):
PC Gamer - Hang onto your graphics cards, as cryptocurrency mining spikes GPUs prices
Tweaktown - Mid/high-end GPU prices to increase because of mining & PUBG
With this in mind, please refrain from creating new discussion threads about the effect of mining on the price of video cards, and include any specific questions as part of build help threads or in the daily simple questions post. Thanks!
submitted by CustardFilled to buildapc [link] [comments]

Don't sell your XLM

Don't sell your XLM
The coronavirus epidemic is on everyone’s mind right now — together with the losses in the crypto market. But even though the situation isn’t looking good right now, we are pretty certain that the crisis in the crypto market will pass. The price of XLM will grow again, so don’t sell your coins!
Do you remember what happened in the crypto market when the virus outbreak started in China? Bitcoin price skyrocketed to $10,000. People said that the virus is good for Bitcoin. The idea was that investors would sell their stocks and buy Bitcoin to protect their wealth.
Fast-forward a couple of months, and we’re living in a different world. In the past couple of weeks, Bitcoin lost half of its value. Sure, it happened before, but never so fast and never by so much is USD equivalent. With over $4000 off the price in a week, billions of dollars were wiped out. And it’s not just a big sell-off — some say that institutional investors are offloading their BTC in panic.
Stellar followed suit, unfortunately. The chart has been in the red for days. But does this mean you should sell? No. Here are 3 reasons why the price of Stellar will rise again, and quite soon.
1) Fundamentally crypto isn’t really tied to real-world assets. Analysts proved this using data for the past 10 years, since the era of crypto began. There is no long-term correlation between the price of BTC and other digital currencies and the price of oil. Stocks, gold and so on. What we are seeing now is simply panic, human emotions.
XLM and other coins can react to events in the world for a short while, but they don’t follow the same trends, even in the mid-term. When Bitcoin halving comes in May, it will be more important than the virus.
2) China is reopening for business. As you know, most of global crypto mining is concentrated in China. Of course, Stellar isn’t mined, but it’s sensitive to the market as a whole, and to the price of Bitcoin. And Bitcoin is mined — mostly in China. A couple of months ago we were worried that Chinese mining farms would close, that ASIC chip manufacturers would close etc. But now the epidemic in China is over, companies are reopening, people are starting to go to work. This means that the crypto mining industry is also safe.
3) There will be a boom once the outbreak is over. After each huge crisis, there is explosive growth. It happened after the swine flu in 2009, and it will likely happen this time. Western countries are taking very drastic measures to contain the virus, and these measures are working. So don’t believe people who say that everyone is going to day. The emergency might last several months, but when it’s over, the crypto market will explode in a good way. Stellar has a particularly strong potential for growth, because it was quite cheap even before the epidemic.
What’s the bottom line? Don’t sell your XLM. Keep them in our XLMwallet and simply wait.
Remember that XLMwallet is the best place to store your Stellar, because you can:
- Send XLM to email addresses;
- Launch your own assets and ICOs;
- Easily merge Stellar accounts;
- Open new accounts right inside the wallet;
- Get balance updates on any device;
- Manage multiple accounts…
…and more!
Next time we’ll remind you about the advantages of the wallet in more detail. For now, stay safe, don’t panic and hold on to your crypto!

https://xlmwallet.co/
submitted by Stellar__wallet to XLM_wallet [link] [comments]

Watch Jim Cramer go NUTS about Bitcoin after Square’s announcement!

Watch Jim Cramer go NUTS about Bitcoin after Square’s announcement! submitted by DeliciousLasagna to Bitcoin [link] [comments]

Reminder this is r/stock and not a crypto sub; feedback welcomed.

The reason why we have a rule against crypto discussions is because this is stocks where we discuss stocks.
Last year we had a surge of comments that were literally "buy bitcoin" in almost every single post on stocks, and it wasn't just a single comment, sometimes you would find 10 users stating the exact same thing, "buy bitcoin" or going into details on how to mine bitcoins; this is spam & off topic.
Also Bitcoin is not a stock, just like discussing buying & reselling sneakers is not a stock, these discussions are off topic and that reason alone was enough to remove posts & comments. Unfortunately this wasn't enough, so we created a rule (see sidebar) against discussing crypto with a link to a sub where you could; we also made an automod rule to deal with this.
If you want to discuss investing in general, you can go to investing, which is mentioned in the sidebar (on mobile by tapping "about this community"). If you want to discuss crypto & mining you can go to CryptoCurrency.
Below is the automod message I wrote, please give me your criticism & feedback on this. I made it informative to deal with some misconceptions & misinformation (including GPU mining).
You can also see that when a stock is related to crypto, I've whitelisted that stock (including this post) so you can discuss crypto as long as that discussion is related to the stock (or this post), so it's not 100% removal; it also only affects top level comments:
Sorry your comment (link to comment) in /stocks was automatically removed as per rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency.
This probably only affects your comment if it was a top level suggestion. Keep in mind this is stocks and people come here for stock suggestions.
We've whitelisted some discussions on crypto, but not all such as bitcoin & crypto holding ETFs and futures (explanation below). However we allow crypto discussions on the following: Coinbase IPO, Square INC, Overstock, XNET, MARA, GCAP, NVDA, AMD, and Kodak; this list will always be updated (see below to what won't be included).
A list of the rules can be found here, and if you're new to stocks please see the wiki and/or read this post.
If you're just wondering if cryptocoins are an investment, read here.
Please note:
Thanks for understanding.
Again this post is whitelisted so you can mention any crypto related keyword (as long as it deals with this post), and please provide your feedback which will help me whitelist more stocks/keywords; again keep in mind this is stocks.
Update: Based on feedback I updated the bullet point regarding the size of crypto market vs stock market, thanks u/yourslice
Update2: Based on information provided by u/mike_996, I'm whitelisting NVDA & AMD against crypto related keywords. However I'll be making a 2nd rule that'll remove "how to mine" type questions w/ a message that contains links to sub reddits on mining.
submitted by provoko to stocks [link] [comments]

Forecast and Perspective of Ethereum in 2020

Ethereum is the most famous and largest altcoin, attracting the attention of not only experienced traders, but also cryptocurrency community novice users. All of them are interested in how much Ethereum will cost in 2020? Many people remember how in 2017 the coin grew more than 40 times, but this record was followed by a natural rollback in value.
ETH Features at a Glance
This blockchain platform is quite popular, so the forecast of the Ethereum exchange rate is a popular topic in the market. Moreover, the network has a relatively low transaction speed. At the end of 2017, a large decentralized application CryptoKitties appeared, which loaded Ethereum with a critical number of transactions (the network almost stopped working).
Until now, one of the problems of the cryptocurrency network is its scalability - even Vitaly Buterin himself speaks about this. The main technological features of the project include:
· Proof-of-stake mechanism
· sharding protocol;
· Plasma protocol.
Each cryptocurrency platform has a consensus mechanism that determines how transactions are verified. ETH uses the same model as BTC - Proof-of-stake. It creates a complex puzzle, and the solution requires great power. Having the right equipment, the user can connect to the network and solve puzzles (mining). Cryptocurrency is given as a reward.
Ethereum sharding is a protocol for changing a transaction verification process. Each node supporting the blockchain confirms a separate transaction. A node is a device connected to a network to implement an asset transfer confirmation. At the moment, there are more than 16 thousand individual nodes in the ETH network.
The essence of sharding is that it groups nodes. Each group is a shard working with different parts of a transaction. This approach improves the efficiency of verification and confirmation of transfers, increasing the maximum number of transactions per second.
Plasma is a protocol for removing excess data from the main blockchain in order to free up space. When creating a new smart contract, it enters the network automatically. Even unfinished contracts fill the blockchain, which creates extra time delays. The Plasma protocol creates an additional layer on the core network used for unfinished smart contracts.
When the smart contract is completed, it is sent to the main blockchain. Buterin recently announced that he is looking for ways to implement sharding and the Plasma protocol in the near future, that will solve the scalability of the network and achieve speeds of thousands of transactions per second.
The prospects for Ethereum in 2020 are highly dependent on the plans implementation. If everything is done, the course and capitalization will rush up. Follow ETH forecasts on our website so you don’t miss important events.
Ethereum situation at the end of 2019
There are still few forecasts for the Ethereum price in 2020, since analysts are interested in the current situation - what will happen to the coin before the end of the year? According to the Coin Metrics portal, the average daily commission for transfers of coins on the ETH network exceeds this figure for Bitcoin. This suggests that the demand for Buterin’s network is very high today.
As a means of transferring money, Ethereum is very popular. A new record was set by the consumption of GAS on the network per day, which suggests that users conduct more complex operations, create new smart contracts and consume more GAS.
Over the past six months, the hash rate has been rising. Now it reaches 190T, that is, miners are positive and believe in a favorable forecast for the Ethereum exchange rate by the end of the year. As of the end of October 2019, the value of the coin is $ 186 with a capitalization of $ 20.1 billion and a daily trading volume of $ 9.7 billion.
Many expect an update to Ethereum 2.0, which is due to take place in early January 2020. Ethereum 2.0 is a large-scale computer that will turn the network into a decentralized blockchain platform with support for thousands of transactions per second. They will be processed very cheaply, so token transfer fees will decrease. Electricity costs will also be reduced, which are now quite high due to the Proof of Work mining algorithm.
At the moment, ETH mining requires asics or powerful graphics cards, and after updating Ethereum 2.0, the blockchain will switch to Proof-of-Stake. This algorithm does not require the use of equipment and electricity. Only a wallet with coins is needed. The larger their stock, the greater the owner’s earnings.
At the moment, several popular stablecoins operate on the Ethereum blockchain, including:
· Tether (USDT)
· Dai (DAI)
· Gemini Dollar (GUSD)
· Paxos Standard (PAX)
· TrueUSD (TUSD)
· USD Coin (USDC)
Their total capitalization exceeds $ 3 billion, most of which is owned by USDT. If the creation of stablecoins on Ethereum is allowed at the legislative level, the coin will definitely develop, and very actively.
Ethereum Growth Background
Everyone is interested in the Ethereum forecast for 2020, as this coin has high volatility. Cost greatly depends on many factors, namely:
  1. Speculative fraud. Investors should always control the situation and buy up coins when the rate drops, and then not be greedy and sell them when they increase by 10-15%.
  2. Technology development. Increasing the speed of transactions and attracting the largest companies will increase the capitalization and exchange rate.
  3. Economic forces. These include the popularization of virtual coins.
  4. Transaction security.
  5. Country Policy. The attitude of government bodies towards cryptocurrencies in general.
  6. News background.
At the moment, the main prerequisite for growth, which will give the coin great prospects, is the introduction of Ethereum 2.0.
Ethereum Forecast for 2020
Popular cryptanalyst Bobby Ullery predicts the Ethereum exchange rate for 2020, expecting an increase in the market capitalization of the coin to a trillion dollars. ETH, according to the analyst, will take ¼ part of the cryptocurrency market.
He came to such bold conclusions after studying the situation. The issue of coins is not limited by anything, and based on Ullery’s forecast, the rate should rise several times and exceed 10-11 thousand dollars per token.
Analysts at Long Forecast are also very optimistic. They make a forecast for the ETH exchange rate, according to which coins will cost about 720 dollars at the beginning of the year. Subsequently, before the summer, the price should decline and fluctuate within 470-670 dollars. Accordingly, starting from current values, the price of Ethereum will rise 3-4 times.
Specialists from the CoinKr portal also engaged in the technical analysis of cryptocurrency. Their data suggests that in early 2020, Ethereum should cost more than $ 700, and by the end of the year it will rise to $ 1,500.
In general, experts' forecasts are optimistic, and several conclusions can be made based on other analytical reviews:
· The cost of the coin depends significantly on whether the developers will be able to implement the promised technical innovations, implement the Plasma and Sharding protocols.
· The popularity of a coin depends on the frequency and effectiveness of smart contracts.
· Increased demand for other coins is driving the rise in ETH.
Should you buy Ethereum Today?
There are many unpredictable turns in the world of cryptocurrencies, so it’s difficult to definitely talk about buying coins. Now the situation has stabilized, but at any moment everything can turn in the other direction. At the moment, the price of ETH is $ 150, so it is better to wait for a small pullback to the level of $ 123-130 and buy, waiting for the introduction of technical innovations in early January.
submitted by vadim77top to u/vadim77top [link] [comments]

Independent Miners: The time has come to vote with your feet! Join the 1 PH/s Classic Mining fund and 40 others on Multipool.us and show your support today!

submitted by jakebrennan to btc [link] [comments]

Difficulty adjusts to 112.6M - an increase of 29.6%

submitted by runeks to Bitcoin [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

My bitcoin value has surpassed my decade long stock account

Throwaway account because I'm revealing more than I want tied to my primary account.
I'll put the TL;DR at the top.
TL;DR: Apparently, I'm well off and 2 years of bitcoins are worth more than 10 years of stock market investment.
I'm nearly 50 years old. A few years out of college and I just barely broke $20k salary. That was worth more than $20k today, but was still a lousy wage with college loan debt. I briefly (1.5 years) had a dotcom job at the turn of the millineum making more than I do now, but I had never had money like that before and boosted the economy instead of putting any aside. I did get some nice toys, though.
Add on another 1.5 years of unemployment, living off my wife's meager salary and a few odd under-the-table jobs, and I finally landed a decent paying job again. Nothing like the dotcom days, but close. However, I'd learned we could live on much less and I wanted a cushion. I dumped tons into my 401k, my savings account and opened a Scottrade account. A little money goes each month to savings and Scottrade.
Roughly ten years later, my 401k is about 3 times my annual income. The Scottrade account is about 30% of it.
Two years ago, I heard about bitcoin on Slashdot. It sounded interesting. I started mining on my son's gaming machine, which meant it was only mining when my son wasn't playing games and if he remembered to start the miner when he was done.
I mined solo for a few days, and quickly joined a mining pool. I was getting a bitcoin every three or four days initially. That didn't last long.
I opened a MtGox account, added some cash and purchased btc almost at the height of the 2011 spike.
I felt like an idiot.
I bought some Casascius coins. I left my MtGox account alone.
This was also around the time the 99% protests were going on. I felt very sympathetic. I remember in reading about the protests, I stumbled across a site that showed what percentage people were based on annual income. With mine and my wife's income, I was above the 90th percentile and below the 95th. I remember the horror and disbelief I felt.
Througout it all, I continued mining. I got lucky during the early 2013 spike and sold some of the MtGox stuff I'd had sitting there. I also got a high end SLR camera at bitcoinstore.com almost at the peak. I was feeling pretty good.
I bought a ButterflyLabs Jalapeno with bitcoins just before that first 2013 spike. I also stopped even trying to mine with a graphics card soon after that because it made no sense. I did eventually get delivery of the Jalapeno. It's earned almost .68 bitcoins. Don't ask what it cost in bitcoins, because I don't remember and I don't want to know.
After realizing my MtGox profits couldn't be pulled out in dollars in any reasonable timeframe, I converted them to bitcoins and pulled them out. I got more bitcoins than I sold them for, but not by much.
So, now I own bitcoins in the high 2 digits, about a third of them are still in physical Casascius coins. I only have an account on MtGox, so I have no real way of converting any of them to cash. I still have $100 sitting in the MtGox account, which I should have converted into bitcoins and pulled out long ago, but I'm frustrated by the premium bitcoins require in USD on MtGox.
For nearly ten years, I've been putting money in my Scottrade account. I saw the collapse in 2008 and mostly held. I bought bank stocks at that time and made a killing. That killing was offset by the REITs I'd invested in before the crash.
In ten years of regular transfers to Scottrade and investment that has gotten better as I've gotten older and more cynical, I've accumulate about 30% of my annual income.
In the last few days, even with the purchase of a cool SLR and the cut involved in Casascius coin purchases, my double-digit bitcoin ownership has now surpassed my Scottrade account in value. I don't have an easy way of converting that bitcoin to USD, but I'm also not concerned about that because I think that easy methods will exist soon.
I fully expect that my bitcoins will be worth less in the near future. However, I believe in the long term, they'll be worth more and that I'll have a number of easier possibilities for converting them to USD if I want to.
I also believe the analogies to the early WWW are flawed. I think analogies to the IP protocol are more apt and that we've only begun to imagine the possibilities.
I'm in it for the long haul. They'll either be worth nothing or much more than now. And, if I add up my electricity costs and the small investment I made during the spike in 2011, I'm still ahead of the game because I have an SLR camera that my wife would never have let me buy with cash.
I'm already ahead of the game and I think the game hasn't even started.
EDIT: Grammar
submitted by throaway419 to Bitcoin [link] [comments]

Debunking myths about mining and GPUs

E: Going to bed, will contribute more tomorrow. Thanks for the discussion!
Myth: Mining is more stressful than gaming. Fact: It depends. During the old days, this was plausible, because older GPUs (Pre-polaris) are/were bottlenecked by core clock when mining the most profitable coins. Thus, miners overclocked and overvolted these cards quite frequently, especially with cheap electricity. This meant that those cards were often run hot, pushing the limits and stressing VRM and fans quite a lot. Nowadays, ethash (Ethereum) is the most profitable algorithm for AMD cards 99% of the time, and newer GPUs (Polaris) are limited by memory bandwidth and latency. Miners can underclock core to the low 1100MHz range before seeing performance drop. To save power, miners who know what they are doing also undervolt, since it is no longer necessary to sustain a high core clock. Thus, it is quite feasible to run polaris cards below 70C at a reasonable fan speed. However, dual mining (mining more than one coin at once) does increase power consumption by up to 20%, and there are also idiots who run their polaris cards OCd while mining. With the exception of a few idiots, miners treat their Polaris GPUs pretty much the same; that is, running underclocked and undervolted 24/7 with a memory strap mod and mem OC. On the other hand, former gaming cards are highly variable in use cases. Some gamers leave their cards at stock settings, some undervolt, and some OC and/or overvolt. Most of the time, these cards are thermal cycled far more often than mining cards, which is known to weaken solder. Another thing to consider is that manufacturers have learned (somewhat) from their mistakes of putting shit tier fans in GPUs, and many fans on modern GPUs are ball bearing and/or swappable. Even some budget cards, such as MSI Armor, use decent ball bearing fans. Bottom line: the risk of buying mined Polaris cards is not as high as the risk of buying older mined cards. I would not be against buying mined polaris cards, but it's not necessarily better than buying a gamer's card instead. At the end of the day, it depends more on how the owner treated it than what they used it for.
Myth: GPUs are obsolete because of FPGAs and ASICs Fact: Mostly false. Older algorithms such as scrypt and SHA256 (lite/doge/feathebitcoin etc) are no longer feasible to mine with GPUs, but there have been multiple algorithms since then that are built to deter ASICs; most of the time it is done by making it memory-hard because designing an ASIC with high memory throughput is considerably more expensive to design and manufacture. Many devs prefer their blockchain to be ASIC resistant to avoid the concentration of power problem that Bitcoin is having nowadays, where a giant, near-monopolistic ASIC manufacturer (Bitmain) is causing a lot of (subjective) controversy. Blockchains based on ethash (Ethereum and its forks), equihash (Zcash and its forks) and cryptonight (Monero and forks) are some examples, but there are scores of other shitcoins and a few other algos that are GPU dominant. It is almost impossible that there will be another ASIC takeover, which is what was responsible for the stop in GPU demand in the bitcoin and litecoin days. Bottom line: ASICs no longer threaten GPU miners, or the demand for GPUs
Myth: Ethereum switching to Proof of Stake will kill mining soon Fact: Doomsayers have been preaching about proof of stake since late 2015. It has always been "coming soon." The fact is, the Ethereum roadmap goes from proof of work (mining) -> Casper (mining + PoS) -> Metropolis (PoS). Currently, the release date of Casper is not even announced yet, nor is it being tested in a (public) testnet. Proof of Stake might one day take over, but mining is here to stay for a while yet. Another thing to consider is that there are tons of other GPU mineable blockchains, and although Ethereum is biggest, it is certainly feasible that mining stays profitable even after Ethereum goes PoS (if it ever does). However, it is possible that profits will be low enough to discourage new miners. Bottom line: It's very unlikely. E: I screwed up the roadmap; here is a better source than me with some interesting information: https://www.ethnews.com/ethereums-vitalik-buterin-gives-keynote-on-metropolis
Myth: The current Ethereum demand spike is a bubble Opinion: Honestly, I don't know. I would not be surprised if stricter regulations on ICOs come sooner or later, which would fuck with Ether prices. There is also the inherent volatility of cryptocurrencies. However, it is also possible that blockchain technology continues to gain traction; that is, the price could just as easily go up as go down. Although it's fun to read about other people's opinions, only time-travelling wizards can tell you when it will become economical again to upgrade your poor HD5770. Bottom line: No one knows.
Myth: Miners will "steal" all the RX Vegas Fact: Only a reckless miner would buy Vegas on release, since mining performance is not known. In fact, it is possible that it can't mine at all (or at some stupidly low speed) until devs add support to existing miners. It would be even more reckless than gamers who buy without seeing benchmarks, since at least gamers can expect the games to actually run. It's also not necessarily the case that Vega will be good once miners do add support. Maybe there will be enough reckless miners to affect supply, maybe not. Of course, it is possible that miners will deplete the supply after it is demonstrated that Vega is good for mining. Bottom line: Most miners won't preorder, but it's possible that a significant number will. E: Important to remember that even if mining demand isn't high, doesn't mean that supply will be plentiful.
Myth: Nvidia cards SUCK at mining Fact: Mostly false. They USED to suck in the old pre-Maxwell days, but now they are actually more efficient at mining Ethereum and Zcash compared to AMD cards, even after both cards are undervolted. The flipside is that they (used to) cost more for the equivalent hashrate. For reference, my old 5xRX470 rig drew just under 800W when mining ETH only and hashed at 150MH/s. My current 6xGTX1060 rig draws just over half of that (<450W) and hashes at about 135MH/s. Certainly not as good in raw performance, but they are viable nonetheless, especially given the AMD GPU shortage. In fact, Nvidia cards (1060 and especially 1070) are becoming scarce as well. Bottom line: Nvidia is still the underdog when it comes to mining, but far from irrelevant nowadays.
Myth: 4GB cards will be obsolete for mining soon Fact: FALSE. The Ethereum DAG is not even 3GB yet, and won't be for a few months. The recent reports of 4GB Polaris cards slowing down soon due to DAG size is caused by limited TLB capacity, not VRAM restrictions. Polaris cards will still be able to mine ETH forks such as Expanse and UBIQ without diminished speed, and even if they are used to mine ETH, it is not that much of a performance hit at first. It would certainly not make polaris useless or undesirable for mining anytime soon. Tahiti GPUs already suffer from this issue and Hawaii is the most resistant to this issue. Have not benched Nvidia at a later epoch.
Myth: Creating miner-bashing posts on Reddit will help alleviate the GPU supply problem Fact: False, you are simply giving cryptocurrencies and mining more exposure to the general public, increasing demand.
Myth: Mining-specific GPUs will solve the shortage problems Opinion: There's not enough info to tell yet, but I am a skeptic for the following reasons. First, no display limits the resale value of the card for obvious reasons. IMO, the whole point of crypto mining from a profitability standpoint is to have a hedge against coin volatility (hardware is still worth something if the coin crashes). Otherwise it is much less effort to just buy and hold the coin. If the hardware is useless without demand from other (significant) sources, then it doesn't make much sense to buy it unless the price is extremely low. I'm sure that cost-downing the PCB and warranty will make for a cheap card, but it has to be extremely cheap and plentiful in supply, or else miners will buy whatever they can get. I could envision "failed" chips (not meeting spec of consumer editions) being stuck in miner cards, but I doubt there are enough to meet demand without ramping up production as a whole, which carries its own risks. I guess that it would help a little, but probably not solve the problems. Alternatively, since modern GPUs are bottlenecked by RAM when mining, it might be enticing to miners to have the fastest (GDDR5) RAM on the market (probably the 9gbps chips from the 1060 6G 9gbps edition, although I don't have one to test). However, my previous points still apply; buying such a card without display outputs carries a big risk. Bottom line: It's not a great idea, unless they are super cheap or use really good RAM.
Hope this helped; if you have any further questions I will try to answer them. I'm both a gamer and miner who uses both AMD and Nvidia roughly equally and don't favor one group over another. I've mined and gamed on all high end AMD GPUs since Tahiti (except Tonga) and all Pascal cards except 1050ti.
submitted by key_smash to Amd [link] [comments]

Intersecting and competing interests of miners vs. investors

This post is pure speculation but it's something that I've been thinking about for a while. This post is informational - it's not a quick FUD/FOMO analysis. However, I do make a case for being a long-term bull (i.e. years).
There are two major groups with large individual resources: miners and crypto investors. These aren't your general traders, these are large, multi-million dollar groups (or larger). Let's look at motivations of both to see how it can relate to prices.
Crypto Miners
Miners obviously want maximum profit. There are several ways to do this:
Note that Bitcoin's difficulty is at all-time high. Litecoin too. Increased difficulty means the same equipment will take longer to generate the same reward. Also note that with the upcoming halving - coming in a month for Litecoin and next year for Bitcoin - the reward for each crypto will significantly decrease. This means that - all else being equal - the profit for miners will drop significantly (temporarily, at least).
The other news is that your typical miner isn't making a lot of money. Like many other examples, economies of scale come into play and your big investors that have large facilities and equipment are the ones making more money. This means more power in the hands of fewer people who have a larger investment with their various interests. How is an individual going to compete with something like this?
Also note that when the crypto market fell at the end of 2017, miner manufacturers had losses due to lack of new buyers. This led to a collapse in prices for various ASIC equipment and related hardware. This does affect stock market prices. Although crypto hardware isn't exactly a huge profit center, check out stock prices for AMD, Intel, and NVidia for the last 5 years. You'll see articles like this and this that support my conclusions. Someone could dig more into this to get better numbers.
Crypto Investors
Crypto investors (the whales), don't really care as much about buying vs. selling - they can profit in either move in the price. However, shorting is risky and shorting crypto is very risky so more are likely to err on the side of growth. It also benefits them for any large swing in prices as opposed to steady growth. They want the market to continue to grow since if it shrinks, it can be destroyed and their profits will go away. They also don't want the market to get too large too fast but some things are beyond their control once they overheat. They're frustrated since they want to pump a lot of money into this - for massive profits - but this attention will be noticed. For instance, if some whale invests $50b into Bitcoin, it'll cause havok on the market and the prices so they have to have relatively small investments. The big institutions want to throw more money into it but they know that if they do, the market will get out of hand. Being noticed invites unwanted regulations and this leads to loss of control and, likely, lower prices with less opportunity.
Note that the interests of both miners and investors sometimes overlap. For instance, miners want the crypto price to be higher so they have higher profits. Investors will also receive the rewards through higher prices.
However, sometimes their interests are in conflict. For instance, if I was running a mining business and I had some resources, here's what I see: an increasing rise in costs due to higher ASIC prices, lower reward due to higher difficulty, and lower reward due to halving.
What's my solution? I would:
You can see how investors could be working for this where some miners could get money together to hire professional traders to do this. Same with companies like AMD, Intel, NVidia, and others (ex: Samsung) who stand to make a lot of money selling this equipment.
The simple problem with crypto is for it to succeed:
The only solution is for the miners - and their suppliers - to continue to pump crypto prices higher to maximize their profits... indefinitely. Investors help out with raising prices but they also help when the market overheats and they cash out and/or short. A market crash temporarily helps miners who can now buy cheaper equipment.
We've all seen charts like these. How else can you explain such projectors (due to past history)? You do that with the continued - almost mathematically calculated - rises and falls in prices over time. If you add in difficulty, ASIC prices, and miner profitability, I'm sure you'll see a pattern. Larger difficulty (i.e. more costs) and higher hardware prices require higher crypto prices for miners to continue to be in business. Considering the market is still relatively small, it's easier to manipulate for higher prices.
submitted by SsurebreC to LitecoinTraders [link] [comments]

How low will you sell?

Genuinely curious
There is an inflection point in which people will sell before its too late and when people will bag hold indefinitely because "its not worth selling at a loss this great anyway"
submitted by cqm to BitcoinMarkets [link] [comments]

Reality Distortion Field

Ok fantards, I'm sure your egos are way too fragile to actually break from the fanboy narrative here but we are definitely going lower. But, look at all the upgrades! Yeah, and we're going lower, I figure $25.00 is a nice re-entry point. There are a lot of reason for this, but look at the macro. This is the top for now, not just in AMD but also the general market. Everyone is on pins and needles waiting for another rate cut. Why? Because the economy is propped to a ridiculous level. No rate cut? It crashes. Rate cut without promise of future cuts? It crashes. Fed injecting massive amounts of liquidity? Check. Manufacturing jobs disappearing? Check. All time high after all time high? Check. The global economy not doing so hot and we're ignoring it completely? Check. Smart money is exiting and securing their short positions as we speak. They're buoying the market just long enough to set themselves up for the retracement. I was around for 2008. Everything was wonderful, totally rock solid until it wasn't. And I'll admit that we aren't looking at another 2008 but we are looking at a helluva correction. Ironically, AMD will be ok but not until next year.
On that front, what do we have? Highest revs since 2007. Yay. See the irony? Rollout is too slow, PE is too high (yes it matters, especially when you're dealing with a manufacturer), too much hype around the CEO and too many new shares being dumped into the market. Yes, they are diluting, look at the numbers. I remember when they sought authorization for share issuance and all the usual fantards here started dumb-shaming anybody on here who dared question the notion that they might dilute. They were doing it "just so that they have the option of doing it" or some kind of nonsense like that was whet they said with indignant sanctimony. Well, they have been diluting and still are. It's not that bad compared to what it could be but it's still there and it affects the share price. Intel has been buying back shares and so has Nvidia.
https://ycharts.com/companies/AMD/stock_buyback
But don't worry, help is on the way. I think that they actually guided too conservatively for next quarter actually. I think that in the end AMD's superior tech will win decisive battles for market share. And, even though most of the "very smart" people on here throw a tantrum whenever I mention this: Crypto will be resurgent and AMD will benefit directly from it. The Ethereum mining hardware pool is diverse, they don't want just ASICs for a host of reasons. You can dismiss this out of hand at the behest of your own arrogance but it's the truth. it will make a difference in the bottom line. You're looking at massive crypto gains in 2020. I'm not going to explain why because he does it a lot better:
https://www.tradingview.comfilbfilb/
I picked up GBTC when Bitcoin was at 7500 and just sold it at 9400. I'm waiting for 8250 range to re-enter. But when it blows up it will take GPU mine-able alts with it. And if you think that these miners aren't already anticipating this and aren't accumulating cards right now to avoid profiteering when Bitcoin breaks to the upside then you're delusional. Why do you think Radeons are "Selling like hot cakes"? The tunnel vision here is amazing. Whatever the mainstream narrative is you guys eat it up. Stop being such a bunch of fanboys.
submitted by rantus to AMD_Stock [link] [comments]

The Great Bitcoin Bull Market Of 2017 by Trace Mayer

By: Trace Mayer, host of The Bitcoin Knowledge Podcast.
Originally posted here with images and Youtube videos.
I just got back from a two week vacation without Internet as I was scouring some archeological ruins. I hardly thought about Bitcoin at all because there were so many other interesting things and it would be there when I got back.
Jimmy Song suggested I do an article on the current state of Bitcoin. A great suggestion but he is really smart (he worked on Armory after all!) so I better be thorough and accurate!
Therefore, this article will be pretty lengthy and meticulous.
BACKGROUND
As I completely expected, the 2X movement from the New York Agreement that was supposed to happen during the middle of my vacation flopped on its face because Jeff Garzik was driving the clown car with passengers willfully inside like Coinbase, Blockchain.info, Bitgo and Xapo and there were here massive bugS and in the code and miners like Bitmain did not want to allocate $150-350m to get it over the difficulty adjustments.
I am very disappointed in their lack of integrity with putting their money where their mouths are; myself and many others wanted to sell a lot of B2X for BTC!
On 7 December 2015, with Bitcoin trading at US$388.40, I wrote The Rise of the Fourth Great Bitcoin Bubble. On 4 December 2016, with Bitcoin trading at US$762.97, I did this interview:

As of 26 November 2017, Bitcoin is trading around US$9,250.00. That is an increase of about 2,400% since I wrote the article prognosticating this fourth great Bitcoin bull market. I sure like being right, like usual (19 Dec 2011, 1 Jul 2013), especially when there are financial and economic consequences.
With such massive gains in such a short period of time the speculative question becomes: Buy, Hold or Sell?
FUNDAMENTALS
Bitcoin is the decentralized censorship-resistant Internet Protocol for transferring value over a communications channel.
The Bitcoin network can use traditional Internet infrastructure. However, it is even more resilient because it has custom infrastructure including, thanks to Bitcoin Core developer Matt Corrallo, the FIBRE network and, thanks to Blockstream, satellites which reduce the cost of running a full-node anywhere in the world to essentially nothing in terms of money or privacy. Transactions can be cheaply broadcast via SMS messages.
SECURITY
The Bitcoin network has a difficulty of 1,347,001,430,559 which suggests about 9,642,211 TH/s of custom ASIC hardware deployed.
At a retail price of approximately US$105/THs that implies about $650m of custom ASIC hardware deployed (35% discount applied).
This custom hardware consumes approximately 30 TWh per year. That could power about 2.8m US households or the entire country of Morocco which has a population of 33.85m.
This Bitcoin mining generates approximately 12.5 bitcoins every 10 minutes or approximately 1,800 per day worth approximately US$16,650,000.
Bitcoin currently has a market capitalization greater than $150B which puts it solidly in the top-30 of M1 money stock countries and a 200 day moving average of about $65B which is increasing about $500m per day.
Average daily volumes for Bitcoin is around US$5B. That means multi-million dollar positions can be moved into and out of very easily with minimal slippage.
When my friend Andreas Antonopolous was unable to give his talk at a CRYPSA event I was invited to fill in and delivered this presentation, impromptu, on the Seven Network Effects of Bitcoin.
These seven network effects of Bitcoin are (1) Speculation, (2) Merchants, (3) Consumers, (4) Security [miners], (5) Developers, (6) Financialization and (7) Settlement Currency are all taking root at the same time and in an incredibly intertwined way.
With only the first network effect starting to take significant root; Bitcoin is no longer a little experiment of magic Internet money anymore. Bitcoin is monster growing at a tremendous rate!!

SPECULATION
For the Bitcoin price to remain at $9,250 it requires approximately US$16,650,000 per day of capital inflow from new hodlers.
Bitcoin is both a Giffen good and a Veblen good.
A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect.
Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand.
There are approximately 16.5m bitcoins of which ~4m are lost, ~4-6m are in deep cold storage, ~4m are in cold storage and ~2-4m are salable.
(http://www.runtogold.com/images/lost-bitcoins-1.jpg)
(http://www.runtogold.com/images/lost-bitcoins-2.jpg)
And forks like BCash (BCH) should not be scary but instead be looked upon as an opportunity to take more territory on the Bitcoin blockchain by trading the forks for real bitcoins which dries up more salable supply by moving it, likely, into deep cold storage.
According to Wikipedia, there are approximately 15.4m millionaires in the United States and about 12m HNWIs ($30m+ net worth) in the world. In other words, if every HNWI in the world wanted to own an entire bitcoin as a 'risk-free asset' that cannot be confiscated, seized or have the balance other wise altered then they could not.
For wise portfolio management, these HNWIs should have at least about 2-5% in gold and 0.5-1% in bitcoin.
Why? Perhaps some of the 60+ Saudis with 1,700 frozen bank accounts and about $800B of assets being targetted might be able to explain it to you.
In other words, everyone loves to chase the rabbit and once they catch it then know that it will not get away.
RETAIL
There are approximately 150+ significant Bitcoin exchanges worldwide. Kraken, according to the CEO, was adding about 6,000 new funded accounts per day in July 2017.
Supposedly, Coinbase is currently adding about 75,000 new accounts per day. Based on some trade secret analytics I have access to; I would estimate Coinbase is adding approximately 17,500 new accounts per day that purchase at least US$100 of Bitcoin.
If we assume Coinbase accounts for 8% of new global Bitcoin users who purchase at least $100 of bitcoins (just pulled out of thin error and likely very conservative as the actual number is perhaps around 2%) then that is approximately $21,875,000 of new capital coming into Bitcoin every single day just from retail demand from 218,750 total new accounts.
What I have found is that most new users start off buying US$100-500 and then after 3-4 months months they ramp up their capital allocation to $5,000+ if they have the funds available.
After all, it takes some time and practical experience to learn how to safely secure one's private keys.
To do so, I highly recommend Bitcoin Core (network consensus and full validation of the blockchain), Armory (private key management), Glacier Protocol (operational procedures) and a Puri.sm laptop (secure non-specialized hardware).
WALL STREET
There has been no solution for large financial fiduciaries to invest in Bitcoin. This changed November 2017.
LedgerX, whose CEO I interviewed 23 March 2013, began trading as a CFTC regulated Swap Execution Facility and Derivatives Clearing Organization.
The CME Group announced they will begin trading in Q4 2017 Bitcoin futures.
The CBOE announced they will begin trading Bitcoin futures soon.
By analogy, these institutional products are like connecting a major metropolis's water system (US$90.4T and US$2 quadrillion) via a nanoscopic shunt to a tiny blueberry ($150B) that is infinitely expandable.
This price discovery could be the most wild thing anyone has ever experienced in financial markets.
THE GREAT CREDIT CONTRACTION
The same week Bitcoin was released I published my book The Great Credit Contraction and asserted it had now begun and capital would burrow down the liquidity pyramid into safer and more liquid assets.
(http://www.runtogold.com/images/Great-Credit-Contraction-Liquidity-Pyramid.jpg)
Thus, the critical question becomes: Is Bitcoin a possible solution to the Great Credit Contraction by becoming the safest and most liquid asset?
BITCOIN'S RISK PROFILE
At all times and in all circumstances gold remains money but, of course, there is always exchange rate risk due to price ratios constantly fluctuating. If the metal is held with a third-party in allocated-allocated storage (safest possible) then there is performance risk (Morgan Stanley gold storage lawsuit).
But, if properly held then, there should be no counter-party risk which requires the financial ability of a third-party to perform like with a bank account deposit. And, since gold exists at a single point in space and time therefore it is subject to confiscation or seizure risk.
Bitcoin is a completely new asset type. As such, the storage container is nearly empty with only $150B.
And every Bitcoin transaction effectively melts down every BTC and recasts it; thus ensuring with 100% accuracy the quantity and quality of the bitcoins. If the transaction is not on the blockchain then it did not happen. This is the strictest regulation possible; by math and cryptography!
This new immutable asset, if properly secured, is subject only to exchange rate risk. There does exist the possibility that a software bug may exist that could shut down the network, like what has happened with Ethereum, but the probability is almost nil and getting lower everyday it does not happen.
Thus, Bitcoin arguably has a lower risk profile than even gold and is the only blockchain to achieve security, scalability and liquidity.
To remain decentralized, censorship-resistant and immutable requires scalability so as many users as possible can run full-nodes.
(http://www.runtogold.com/images/ethereum-bitcoin-scability-nov-2017.png)
TRANSACTIONS
Some people, probably mostly those shilling alt-coins, think Bitcoin has a scalability problem that is so serious it requires a crude hard fork to solve.
On the other side of the debate, the Internet protocol and blockchain geniuses assert the scalability issues can, like other Internet Protocols have done, be solved in different layers which are now possible because of Segregated Witness which was activated in August 2017.
Whose code do you want to run: the JV benchwarmers or the championship Chicago Bulls?
As transaction fees rise, certain use cases of the Bitcoin blockchain are priced out of the market. And as the fees fall then they are economical again.
Additionally, as transaction fees rise, certain UTXOs are no longer economically usable thus destroying part of the money supply until fees decline and UTXOs become economical to move.
There are approximately 275,000-350,000 transactions per day with transaction fees currently about $2m/day and the 200 DMA is around $1.08m/day.
(http://www.runtogold.com/images/bitcoin-transaction-fees-nov-2017.png)
What I like about transaction fees is that they somewhat reveal the financial health of the network.
The security of the Bitcoin network results from the miners creating solutions to proof of work problems in the Bitcoin protocol and being rewarded from the (1) coinbase reward which is a form of inflation and (2) transaction fees which is a form of usage fee.
The higher the transaction fees then the greater implied value the Bitcoin network provides because users are willing to pay more for it.
I am highly skeptical of blockchains which have very low transaction fees. By Internet bubble analogy, Pets.com may have millions of page views but I am more interested in EBITDA.
DEVELOPERS
Bitcoin and blockchain programming is not an easy skill to acquire and master. Most developers who have the skill are also financially independent now and can work on whatever they want.
The best of the best work through the Bitcoin Core process. After all, if you are a world class mountain climber then you do not hang out in the MacDonalds play pen but instead climb Mount Everest because that is where the challenge is.
However, there are many talented developers who work in other areas besides the protocol. Wallet maintainers, exchange operators, payment processors, etc. all need competent developers to help build their businesses.
Consequently, there is a huge shortage of competent developers. This is probably the largest single scalability constraint for the ecosystem.
Nevertheless, the Bitcoin ecosystem is healthier than ever before.
(http://www.runtogold.com/images/bitcoin-ecosystem.jpg)(/images/bitcoin-ecosystem-small.jpg)
SETTLEMENT CURRENCY
There are no significant global reserve settlement currency use cases for Bitcoin yet.
Perhaps the closest is Blockstream's Strong Federations via Liquid.
PRICE
There is a tremendous amount of disagreement in the marketplace about the value proposition of Bitcoin. Price discovery for this asset will be intense and likely take many cycles of which this is the fourth.
Since the supply is known the exchange rate of Bitcoins is composed of (1) transactional demand and (2) speculative demand.
Interestingly, the price elasticity of demand for the transactional demand component is irrelevant to the price. This makes for very interesting dynamics!
(http://www.runtogold.com/images/bitcoin-speculation.jpg)
On 4 May 2017, Lightspeed Venture Partners partner Jeremy Liew who was among the early Facebook investors and the first Snapchat investor laid out their case for bitcoin exploding to $500,000 by 2030.
On 2 November 2017, Goldman Sachs CEO Lloyd Blankfein (https://www.bloomberg.com/news/articles/2017-11-02/blankfein-says-don-t-dismiss-bitcoin-while-still-pondering-value)said, "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus."
On 12 Sep 2017, JP Morgan CEO called Bitcoin a 'fraud' but conceded that "(http://fortune.com/2017/09/12/jamie-dimon-bitcoin-cryptocurrency-fraud-buy/)Bitcoin could reach $100,000".
Thus, it is no surprise that the Bitcoin chart looks like a ferret on meth when there are such widely varying opinions on its value proposition.
I have been around this space for a long time. In my opinion, those who scoffed at the thought of $1 BTC, $10 BTC (Professor Bitcorn!), $100 BTC, $1,000 BTC are scoffing at $10,000 BTC and will scoff at $100,000 BTC, $1,000,000 BTC and even $10,000,000 BTC.
Interestingly, the people who understand it the best seem to think its financial dominance is destiny.
Meanwhile, those who understand it the least make emotionally charged, intellectually incoherent bearish arguments. A tremendous example of worldwide cognitive dissonance with regards to sound money, technology and the role or power of the State.
Consequently, I like looking at the 200 day moving average to filter out the daily noise and see the long-term trend.
(http://www.runtogold.com/images/bitcoin-price-200dma-nov-2017.png)
Well, that chart of the long-term trend is pretty obvious and hard to dispute. Bitcoin is in a massive secular bull market.
The 200 day moving average is around $4,001 and rising about $30 per day.
So, what do some proforma situations look like where Bitcoin may be undervalued, average valued and overvalued? No, these are not prognostications.
(http://www.runtogold.com/images/bitcoin-price-pro-forma.png)
Maybe Jamie Dimon is not so off his rocker after all with a $100,000 price prediction.
We are in a very unique period of human history where the collective globe is rethinking what money is and Bitcoin is in the ring battling for complete domination. Is or will it be fit for purpose?
As I have said many times before, if Bitcoin is fit for this purpose then this is the largest wealth transfer in the history of the world.
CONCLUSION
Well, this has been a brief analysis of where I think Bitcoin is at the end of November 2017.
The seven network effects are taking root extremely fast and exponentially reinforcing each other. The technological dominance of Bitcoin is unrivaled.
The world is rethinking what money is. Even CEOs of the largest banks and partners of the largest VC funds are honing in on Bitcoin's beacon.
While no one has a crystal ball; when I look in mine I see Bitcoin's future being very bright.
Currently, almost everyone who has bought Bitcoin and hodled is sitting on unrealized gains as measured in fiat currency. That is, after all, what uncharted territory with daily all-time highs do!
But perhaps there is a larger lesson to be learned here.
Riches are getting increasingly slippery because no one has a reliable defined tool to measure them with. Times like these require incredible amounts of humility and intelligence guided by macro instincts.
Perhaps everyone should start keeping books in three numéraires: USD, gold and Bitcoin.
Both gold and Bitcoin have never been worth nothing. But USD is a fiat currency and there are thousands of those in the fiat currency graveyard. How low can the world reserve currency go?
After all, what is the risk-free asset? And, whatever it is, in The Great Credit Contraction you want it!
What do you think? Disagree with some of my arguments or assertions? Please, eviscerate them on Twitter or in the comments!
submitted by bitcoinknowledge to Bitcoin [link] [comments]

CRYPTOCURRENCY BITCOIN

CRYPTOCURRENCY BITCOIN
Bitcoin Table of contents expand: 1. What is Bitcoin? 2. Understanding Bitcoin 3. How Bitcoin Works 4. What's a Bitcoin Worth? 5. How Bitcoin Began 6. Who Invented Bitcoin? 7. Before Satoshi 8. Why Is Satoshi Anonymous? 9. The Suspects 10. Can Satoshi's Identity Be Proven? 11. Receiving Bitcoins As Payment 12. Working For Bitcoins 13. Bitcoin From Interest Payments 14. Bitcoins From Gambling 15. Investing in Bitcoins 16. Risks of Bitcoin Investing 17. Bitcoin Regulatory Risk 18. Security Risk of Bitcoins 19. Insurance Risk 20. Risk of Bitcoin Fraud 21. Market Risk 22. Bitcoin's Tax Risk What is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity is yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Understanding Bitcoin Bitcoin is a type of cryptocurrency: Balances are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Style notes: According to the official Bitcoin Foundation, the word "Bitcoin" is capitalized in the context of referring to the entity or concept, whereas "bitcoin" is written in the lower case when referring to a quantity of the currency (e.g. "I traded 20 bitcoin") or the units themselves. The plural form can be either "bitcoin" or "bitcoins."
How Bitcoin Works Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places. Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain and receiving a reward in the form of a few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of February 2019, the mining difficulty is over 6.06 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.
What's a Bitcoin Worth? In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Bitcoin's price is also quite dependent on the size of its mining network since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months.
How Bitcoin Began
Aug. 18, 2008: The domain name bitcoin.org is registered. Today, at least, this domain is "WhoisGuard Protected," meaning the identity of the person who registered it is not public information.
Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.
Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.
Who Invented Bitcoin?
No one knows. Not conclusively, at any rate. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. The Bitcoin protocol requires users to enter a birthday upon signup, and we know that an individual named Satoshi Nakamoto registered and put down April 5 as a birth date. And that's about it.
Before Satoshi
Though it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not happen in a vacuum. All major scientific discoveries, no matter how original-seeming, were built on previously existing research. There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself cites Hashcash and b-money, as well as various other works spanning several research fields.
Why Is Satoshi Anonymous?
There are two primary motivations for keeping Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
The Suspects
Numerous people have been suggested as possible Satoshi Nakamoto by major media outlets. Oct. 10, 2011, The New Yorker published an article speculating that Nakamoto might be Irish cryptography student Michael Clear or economic sociologist Vili Lehdonvirta. A day later, Fast Company suggested that Nakamoto could be a group of three people – Neal King, Vladimir Oksman and Charles Bry – who together appear on a patent related to secure communications that were filed two months before bitcoin.org was registered. A Vice article published in May 2013 added more suspects to the list, including Gavin Andresen, the Bitcoin project’s lead developer; Jed McCaleb, co-founder of now-defunct Bitcoin exchange Mt. Gox; and famed Japanese mathematician Shinichi Mochizuki.
In December 2013, Techcrunch published an interview with researcher Skye Grey who claimed textual analysis of published writings shows a link between Satoshi and bit-gold creator Nick Szabo. And perhaps most famously, in March 2014, Newsweek ran a cover article claiming that Satoshi is actually an individual named Satoshi Nakamoto – a 64-year-old Japanese-American engineer living in California. The list of suspects is long, and all the individuals deny being Satoshi.
Can Satoshi's Identity Be Proven?
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins. Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.
Receiving Bitcoins As Payment
Bitcoins can be accepted as a means of payment for products sold or services provided. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touch screen apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers, like credit cards, PayPal, etc. Online payments will require a Bitcoin merchant tool (an external processor like Coinbase or BitPay).
Working For Bitcoins
Those who are self-employed can get paid for a job in bitcoins. There are several websites/job boards which are dedicated to the digital currency:
Work For Bitcoin brings together work seekers and prospective employers through its websiteCoinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as Dogecoin and LitecoinJobs4Bitcoins, part of reddit.comBitGigs
Bitcoin From Interest Payments
Another interesting way (literally) to earn bitcoins is by lending them out and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub, and BTCjam. Obviously, you should do due diligence on any third-party site.
Bitcoins From Gambling
It’s possible to play at casinos that cater to Bitcoin aficionados, with options like online lotteries, jackpots, spread betting, and other games. Of course, the pros and cons and risks that apply to any sort of gambling and betting endeavors are in force here too.
Investing in Bitcoins
There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.
In March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property rather than currency. Gains or losses from bitcoins held as capital will be realized as capital gains or losses, while bitcoins held as inventory will incur ordinary gains or losses.
Like any other asset, the principle of buying low and selling high applies to bitcoins. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own bitcoins. Here are a few options which Bitcoin enthusiasts can explore.
Risks of Bitcoin Investing
Though Bitcoin was not designed as a normal equity investment (no shares have been issued), some speculative investors were drawn to the digital money after it appreciated rapidly in May 2011 and again in November 2013. Thus, many people purchase bitcoin for its investment value rather than as a medium of exchange.
However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a long-term track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
Bitcoin Regulatory Risk
Investing money into Bitcoin in any of its many guises is not for the risk-averse. Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict or ban the use and sale of bitcoins, and some already have. Others are coming up with various rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies dealing with the buy, sell, transfer or storage of bitcoins to record the identity of customers, have a compliance officer and maintain capital reserves. The transactions worth $10,000 or more will have to be recorded and reported.
Although more agencies will follow suit, issuing rules and guidelines, the lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.
Security Risk of Bitcoins
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner's computer hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. (Users can prevent this only if bitcoins are stored on a computer which is not connected to the internet, or else by choosing to use a paper wallet – printing out the Bitcoin private keys and addresses, and not keeping them on a computer at all.) Hackers can also target Bitcoin exchanges, gaining access to thousands of accounts and digital wallets where bitcoins are stored. One especially notorious hacking incident took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after millions of dollars worth of bitcoins were stolen.
This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible. It's like dealing with cash: Any transaction carried out with bitcoins can only be reversed if the person who has received them refunds them. There is no third party or a payment processor, as in the case of a debit or credit card – hence, no source of protection or appeal if there is a problem.
Insurance Risk
Some investments are insured through the Securities Investor Protection Corporation. Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
Risk of Bitcoin Fraud
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Market Risk
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news." According to the CFPB, the price of bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%.
If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. There is already plenty of competition, and though Bitcoin has a huge lead over the other 100-odd digital currencies that have sprung up, thanks to its brand recognition and venture capital money, a technological break-through in the form of a better virtual coin is always a threat.
Bitcoin's Tax Risk
As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.
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Related Terms
Satoshi
The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency.
Chartalism Chartalism is a non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Satoshi Nakamoto The name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is closely-associated with blockchain technology.
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By Satoshi Nakamoto
Read it once, go read other crypto stuff, read it again… keep doing this until the whole document makes sense. It’ll take a while, but you’ll get there. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party

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Should You REALLY Buy A $100 Bitcoin Miner In 2019? Is Bitcoin Mining Profitable RIGHT NOW In Early 2020 ... How to mine Bitcoins with ASIC Miners Are USB Bitcoin Miners Profitable RIGHT NOW In 2020? - YouTube What’s the Best Bitcoin Miner to buy in 2020? - YouTube

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Should You REALLY Buy A $100 Bitcoin Miner In 2019?

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