The simple answer is: just like physical currency exchanges. You're essentially buying one currency with another. The relative value of a nation's physical currency is a reflection of the country's economic and financial health, especially since we moved off of the gold standard. The U.S. dollar, for example, is worth more than that of the Mexican peso due to the discrepancies between the two countries' economies—therefore you can buy lots of pesos for very few dollars (the dollars being relatively more valuable).
Bitcoin is pseudonymous rather than anonymous in that the cryptocurrency within a wallet is not tied to people, but rather to one or more specific keys (or "addresses"). Thereby, bitcoin owners are not identifiable, but all transactions are publicly available in the blockchain. Still, cryptocurrency exchanges are often required by law to collect the personal information of their users.
For conventional currency markets trading in the monies of stable, profitable countries, the fluctuations within the value of each currency is measured in fractions of a penny. Bitcoin values, on the other hand, rise and fall dramatically throughout each trading day, jumping in whole dollar amounts. This means that if you don't have your act together and place a transaction order at the right time, you will lose magnitudes more cash than you would have trading dollars for yen. The value of Bitcoin as a whole, for example, dropped more than 50 percent over the 36 hours after China banned the cryptocurrency. A lot of speculators lost their shirts during that day. And it will almost certainly happen again.
Bitcoin miners were now caught in the same vicious cycle that real miners confront—except on a much more accelerated timeframe. To maintain their output, miners had to buy more servers, or upgrade to the more powerful servers, but the new calculating power simply boosted the solution difficulty even more quickly. In effect, your mine was becoming outdated as soon as you launched it, and the only hope of moving forward profitably was to adopt a kind of perpetual scale-up: Your existing mine had to be large enough to pay for your next, larger mine. Many miners responded by gathering into vast collectives, pooling their calculating resources and sharing the bitcoin rewards. Others shifted away from mining to hosting facilities for other miners. But whether you were mining or hosting, mining entered “a scaling race,” says Carlson, whose own operations marched steadily from 250 kilowatts to 1.5 megawatts to 5 megawatts. And it was a race: Any delay in getting your machines installed and mining simply meant you’d be coming on line when the coins were even harder to mine.
Bitfinex’s high volume is key for traders as it ensures a low spread. More than 5.77 million bitcoins traded through it from April 2017 to October 2017 alone, which is double the volume of Kraken (3.6M BTC) and Coinbase (3.06M BTC). For newcomers, the complicated interface makes costly mistakes more probable while the lack of fiat funding options makes it impossible to use regular money to buy cryptocurrencies. However, experienced crypto traders will find everything they need at Bitfinex.
The silence of the Chinese authorities was seen as a subtle acceptance signal by market participants. The situation didn’t last long however. On December 7th, The People’s Bank of China barred financial institutions from buying or selling virtual currency or Bitcoin related products. The Bank also demanded that businesses stop with the practice of pricing their products in Bitcoins. BTC/USD opened the day at $906.50 on BTC-E. After the news hit the wires, bitcoin prices crashed from to a low of $551 in only 9 hours, a fall of 39%.
When it comes to finding the best bitcoin exchange things are not all that easy. Many of the best bitcoin exchanges to buy bitcoin are only recently online. This means that they have had little time to get the word out about their services and products. Most people coming to this page will be asking how to buy bitcoin online through a secure means. Well, here is a good starting point.
Many litecoin investors followed the wrong herd last December when its founder Charlie Lee sold all of his shares in the company to avoid a conflict of interest. This should have indicated to investors that the price would not hold and would decline, Spatafora says. Instead of selling, many crypto investors bought more litecoin "like idiots when it was not sustainable," he says.
But, as always, the miners’ biggest challenge came from bitcoin itself. The mere presence of so much new mining in the Mid-Columbia Basin substantially expanded the network’s total mining power; for a time, Carlson’s mine alone accounted for a quarter of the global bitcoin mining capacity. But this rising calculating power also caused mining difficulty to skyrocket—from January 2013 to January 2014, it increased one thousandfold—which forced miners to expand even faster. And bitcoin’s rising price was now drawing in new miners, especially in China, where power is cheap. By the middle of 2014, Carlson says, he’d quadrupled the number of servers in his mine, yet had seen his once-massive share of the market fall below 1 percent.
Miehe still runs his original mine, a half-megawatt operation not far from the carwash. But his main job these days is managing hosting sites for other miners and connecting outsiders with insiders—and he’s OK with that. He sold off some of his bitcoin stack, just after Christmas. He’s still bullish on crypto, and on the basin’s long-term prospects. But he no longer has any appetite for the race for scale. Gone are the glory days when commercial miners could self-finance with their own stacks. Today, you need outside financing—debt—which, for Miehe, who now has two young children, would mean an unacceptable level of stress. “I’ve already done it,” he says. “My entire data center was built with bitcoin, from nothing. I’ve already won enough for what I was looking for out of mining.” He pauses. “The risk and reward is getting pretty great,” he says. “And I’m not sure I want to be on the front line of that battle.”
Just when it seemed that things couldn’t get any worse, they did. As mining costs were rising, bitcoin prices began to dive. The cryptocurrency was getting hammered by a string of scams, thefts and regulatory bans, along with a lot of infighting among the mining community over things like optimal block size. Through 2015, bitcoin prices hovered in the low hundreds. Margins grew so thin—and, in fact, occasionally went negative—that miners had to spend their coins as soon as they mined them to pay their power bills. Things eventually got so grim that Carlson had to dig into his precious reserves and liquidate “all my little stacks of bitcoin,” he recalls, ruefully. “To save the business, we sold it all.”
Transaction fees for cryptocurrency depend mainly on the supply of network capacity at the time, versus the demand from the currency holder for a faster transaction. The currency holder can choose a specific transaction fee, while network entities process transactions in order of highest offered fee to lowest. Cryptocurrency exchanges can simplify the process for currency holders by offering priority alternatives and thereby determine which fee will likely cause the transaction to be processed in the requested time.
The rundown: Bitcoin and all major currencies were down in the morning; HSBC joins the Series B financing round of enterprise blockchain technology Axoni; GoverMedia Plus Canada to acquire European cryptocurrency exchange EXMO; Leading European companies selects IBM to drive blockchain innovation; SIMBA Chain to provide its cloud-based blockchain-as-a-service platform to the U.S. Air Force; […] The post Bitcoin News Crypto Currency Daily Roundup November 14 appeared first on Market Exclusive.
As with other cryptocurrencies, the validity of each ether is provided by a blockchain, which is a continuously growing list of records, called blocks, which are linked and secured using cryptography. By design, the blockchain is inherently resistant to modification of the data. It is an open, distributed ledger that records transactions between two parties efficiently and in a verifiable and permanent way. Unlike Bitcoin, Ethereum operates using accounts and balances in a manner called state transitions. This does not rely upon unspent transaction outputs (UTXOs). State denotes the current balances of all accounts and extra data. State is not stored on the blockchain, it is stored in a separate Merkle Patricia tree. A cryptocurrency wallet stores the public and private "keys" or "addresses" which can be used to receive or spend Ether. These can be generated through BIP 39 style mnemonics for a BIP 32 "HD Wallet". In Ethereum, this is unnecessary as it does not operate in a UTXO scheme. With the private key, it is possible to write in the blockchain, effectively making an ether transaction. To send ether to an account, you need the public key of that account. Ether accounts are pseudonymous in that they are not linked to individual persons, but rather to one or more specific addresses. Owners can store these addresses in software, on paper and possibly in memory ("brain wallet").
The current cryptocurrency market is estimated to be worth around $148 billion, but analysts believe that figure could climb to a staggering $1 trillion by 2019. This makes day trading bitcoin in 2017 an appealing proposition. Bitcoin makes up half of the cryptocurrency market and Roger Ver, Bitcoins CEO, believes ‘it’s the dawn of a better, more free world’. Whilst that remains to be seen, it does have certain attributes that make it tempting for those looking to make money day trading bitcoin.
What’s important to note is that bitcoin accounts for about 50% of the entire cryptocurrency market, and has the highest volume. It is undoubtedly the most important currency today. You’ll also notice a difference between the original version of bitcoin, Bitcoin Classic (BTC), and a newer version of bitcoin, Bitcoin Cash (BCH). Bitcoin Cash is a spinoff off of the original bitcoin blockchain. I’m not going to get into the technical differences between Bitcoin Classic and Bitcoin Cash, but understand they are separate currencies. So far, Bitcoin Classic seems to be favored by the public over Bitcoin Cash, and has an 8X higher market cap. But when people say “bitcoin” (lowercase) they could be referring to to either currency.
But, once again, be warned. Just because it's a digital currency doesn't mean you won't lose real cash money trading in it. And given that the current Bitcoin market is more volatile than a bag of plutonium nitrate, multi-explosive, sound seeking projectiles, you stand a very good chance to lose a lot of money, especially if this is your first foray into day trading. So unless you have cash to burn or you're already a grizzled day trading veteran, you might want to take one more look at mining after all.
Ethereum-based customized software and networks, independent from the public Ethereum chain, are being tested by enterprise software companies. Interested parties include Microsoft, IBM, JPMorgan Chase, Deloitte, R3, Innovate UK (cross-border payments prototype). Barclays, UBS and Credit Suisse are experimenting with Ethereum blockchain to automate Markets in Financial Instruments Directive (MiFID) II requirements.
Swing trading tries to take advantage of the natural “swing” of the price cycles. Swing traders try to spot the beginning of a specific price movement, and enter the trade then. They hold on until the movement dies out, and take the profit. Swing traders try to see the big picture without constantly monitoring their computer screen. For example, swing traders can open a trading position and hold it open for weeks or even months until they reach the desired result.
But here are the basics… a blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. By design, blockchains are inherently resistant to modification of the data, and serve as a public ledger of transactions between two parties. To date, the best analogy I’ve heard for blockchain compares it to a Google Doc:
I understand that this is simplifying things to the extreme, but that's why an entire series of guides is needed! It's a complex landscape to understand, but the core is simple: miners are people independently verifying transactions on the coin's network, and when that happens more coins are created. Miners effectively keep the network running and increase the coin's global supply.
How to mine Ethereum "the Easy Way" Ethereum is quite difficult to mine on your standard PC as there are quite a few step to go through as can be seen in our comprehensive guide here. If you aren't tech savvy or willing to give a bit of time to getting it up and running yourself, there is another way. This is where you pay someone else to do it for you and get them to run the mining equipment on your behalf.
Ethereum's blockchain uses Merkle trees, for security reasons, to improve scalability, and to optimize transaction hashing. As with any Merkle tree implementation, it allows for storage savings, set membership proofs (called "Merkle proofs"), and light client synchronization. The Ethereum network has at times faced congestion problems, for example, congestion occurred during late 2017 in relation to Cryptokitties.
The reward for doing so -- a miner's fee if you will -- is payment in that block's coin. The payment is based on how much their hardware contributed to solving that puzzle. Where do the coins come from? By design, that's exactly how the coins are created. The block is solved and coins and distributed fairly to miners. This increases the coin's supply.
The latest update to the CryptoNight AMD GPU miner SRBMiner to version 1.7.0 brings improved hashrate in a number of the supported mining algorithms of up to about 10% depending on your GPU (most gains on VEGA) for the BitTube, Haven, Heavy and Italo algorithms as well as some small speed increase on CryptoNight V8 for VEGA GPUs. It also comes with support for a new mining algorithms – CN-Dark [CryoNote] and CN-Fest [Festival coin]. Do note that the developer fee is now ~0.85% for both normal mode and algorithm switching mode in the new version. There are also a number of other fixes and improvements, you can find the full changelog for the latest update below.
Live Spreads Widget: Dynamic live spreads are available on Active Trader commission-based accounts. When static spreads are displayed, the figures are time-weighted averages derived from tradable prices at FXCM from April 1, 2018 to June 30, 2018. Spreads are variable and are subject to delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.
Regardless of whether or not you made a successful trade, there’s always a lesson to be learned. No one manages to only make profitable trades, and no one gets to the point of making money without losing some money on the way. The important thing isn’t necessarily whether or not you made money. Rather, it’s whether you managed to gain some new insight into how to trade better next time.
Ethereum is an open-sourced, public blockchain-based platform that enables the development of decentralized applications along with smart contracts. Ethereum focuses on running the code of these applications rather than being a peer to peer electronic cash system like many other cryptocurrencies. The project enjoys enormous community support and boasts the most significant active developer community in the cryptocurrency space. Scalability on the network is an issue, but there are many projects underway to address these issues.
In the end, the majority of the Ethereum community voted to perform a hard fork, and retrieve The DAO investors money. But not everyone agreed with this course of action. This resulted in a split where two parallel blockchains now exist. For those members who strongly disagree with any changes to the blockchain even when hacking occurs there is Ethereum classic. For the majority who agreed to rewrite a small part of the blockchain and return the stolen money to their owners, there is Ethereum.