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Which are your top 5 coins out of the top100? An analysis.
I am putting together my investment portfolio for 2018 and made a complete summary of the current Top 100. Interestingly, I noticed that all coins can be categorized into 12 markets. Which markets do you think will play the biggest role in the coming year? Here is a complete overview of all coins in an excel sheet including name, a full description, market, TPS, risk profile, time since launch (negative numbers mean that they are launching that many months in the future) and market cap. You can also sort by all of these fields of course. Coins written in bold are the strongest contenders within their market either due to having the best technology or having a small market cap and still excellent technology and potential. https://docs.google.com/spreadsheets/d/1s8PHcNvvjuy848q18py_CGcu8elRGQAUIf86EYh4QZo/edit#gid=0 The 12 markets are
Currency 13 coins
Platform 25 coins
Ecosystem 9 coins
Privacy 9 coins
Currency Exchange Tool 8 coins
Gaming & Gambling 4 coins
Misc 15 coins
Social Network 4 coins
Fee Token 3 coins
Decentralized Data Storage 4 coins
Cloud Computing 2 coins
Stable Coin 3 coins
Before we look at the individual markets, we need to take a look of the overall market and its biggest issue, scalability, first: Cryptocurrencies aim to be a decentralized currency that can be used worldwide. Their goal is to replace dollar, Euro, Yen, all FIAT currencies globally. The coin that will achieve that will be worth several trillion dollars. Bitcoin can only process 7 transactions per second (TPS) currently. In order to replace all FIAT, it would need to perform at least at VISA levels, which usually processes around 3,000 TPS, up to 25,000 TPS during peak times and a maximum of 64,000 TPS. That means that this cryptocurrency would need to be able to perform at least several thousand TPS. However, a ground breaking technology should not look at current technology to set a goal for its use, i.e. estimating the number of emails sent in 1990 based on the number of faxes sent wasn’t a good estimate. For that reason, 10,000 TPS is the absolute baseline for a cryptocurrency that wants to replace FIAT. This brings me to IOTA, which wants to connect all 80 billion IoT devices that are expected to exist by 2025, which constantly communicate with each other, possibly creating 80 billion or more transactions per second. This is the benchmark that cryptocurrencies should be aiming for. Currently, 8 billion devices are connected to the Internet. With its Lightning network recently launched, Bitcoin is realistically looking at 50,000 possible TPS soon. Other notable cryptocurrencies besides IOTA and Bitcoin are Nano with 7,000 TPS already tested, Dash with several billion TPS possible with Masternodes, Neo, LISK and RHOC with 100,000 TPS by 2020, Ripple with 50,000 TPS, Ethereum with 10,000 TPS with Sharding. However, it needs to be said that scalability usually goes at the cost of decentralization and security. So, it needs to be seen, which of these technologies can prove themselves decentralized while maintaining high TPS. Without further ado, here are the coins of the first market. Each market is sorted by market cap.
Market 1 - Currency:
Bitcoin: 1st generation blockchain with currently bad scalability, though the implementation of the Lightning Network looks promising and could alleviate most scalability and high energy use concerns.
Ripple: Centralized currency that might become very successful due to tight involvement with banks and cross-border payments for financial institutions; banks and companies like Western Union and Moneygram (who they are currently working with) as customers customers. However, it seems they are aiming for more decentralization now.https://ripple.com/dev-blog/decentralization-strategy-update/. Has high TPS due to Proof of Correctness algorithm.
Bitcoin Cash: Bitcoin fork with the difference of having an 8 times bigger block size, making it 8 times more scalable than Bitcoin currently. Further block size increases are planned. Only significant difference is bigger block size while big blocks lead to further problems that don't seem to do well beyond a few thousand TPS. Opponents to a block size argue that increasing the block size limit is unimaginative, offers only temporary relief, and damages decentralization by increasing costs of participation. In order to preserve decentralization, system requirements to participate should be kept low. To understand this, consider an extreme example: very big blocks (1GB+) would require data center level resources to validate the blockchain. This would preclude all but the wealthiest individuals from participating.Community seems more open than Bitcoin's though.
Litecoin : Little brother of Bitcoin. Bitcoin fork with different mining algorithm but not much else.Copies everything that Bitcoin does pretty much. Lack of real innovation.
Dash: Dash (Digital Cash) is a fork of Bitcoin and focuses on user ease. It has very fast transactions within seconds, low fees and uses Proof of Service from Masternodes for consensus. They are currently building a system called Evolution which will allow users to send money using usernames and merchants will find it easy to integrate Dash using the API. You could say Dash is trying to be a PayPal of cryptocurrencies. Currently, cryptocurrencies must choose between decentralization, speed, scalability and can pick only 2. With Masternodes, Dash picked speed and scalability at some cost of decentralization, since with Masternodes the voting power is shifted towards Masternodes, which are run by Dash users who own the most Dash.
IOTA: 3rd generation blockchain called Tangle, which has a high scalability, no fees and instant transactions. IOTA aims to be the connective layer between all 80 billion IOT devices that are expected to be connected to the Internet in 2025, possibly creating 80 billion transactions per second or 800 billion TPS, who knows. However, it needs to be seen if the Tangle can keep up with this scalability and iron out its security issues that have not yet been completely resolved.
Nano: 3rd generation blockchain called Block Lattice with high scalability, no fees and instant transactions. Unlike IOTA, Nano only wants to be a payment processor and nothing else, for now at least. With Nano, every user has their own blockchain and has to perform a small amount of computing for each transaction, which makes Nano perform at 300 TPS with no problems and 7,000 TPS have also been tested successfully. Very promising 3rd gen technology and strong focus on only being the fastest currency without trying to be everything.
Decred: As mining operations have grown, Bitcoin’s decision-making process has become more centralized, with the largest mining companies holding large amounts of power over the Bitcoin improvement process. Decred focuses heavily on decentralization with their PoW Pos hybrid governance system to become what Bitcoin was set out to be. They will soon implement the Lightning Network to scale up. While there do not seem to be more differences to Bitcoin besides the novel hybrid consensus algorithm, which Ethereum, Aeternity and Bitcoin Atom are also implementing, the welcoming and positive Decred community and professoinal team add another level of potential to the coin.
Bitcoin Atom: Atomic Swaps and hybrid consenus. This looks like the only Bitcoin clone that actually is looking to innovate next to Bitcoin Cash.
Dogecoin: Litecoin fork, fantastic community, though lagging behind a bit in technology.
Bitcoin Gold: A bit better security than bitcoin through ASIC resistant algorithm, but that's it. Not that interesting.
Digibyte: Digibyte's PoS blockchain is spread over a 100,000+ servers, phones, computers, and nodes across the globe, aiming for the ultimate level of decentralization. DigiByte’s adoption over the past four years has been slow. The DigiByte website offers a lot of great marketing copy and buzzwords. However, there’s not much technical information about what they have planned for the future. You could say Digibyte is like Bitcoin, but with shorter blocktimes and a multi-algorithm. However, that's not really a difference big enough to truly set themselves apart from Bitcoin, since these technologies could be implemented by any blockchain without much difficulty. Their decentralization is probably their strongest asset, however, this also change quickly if the currency takes off and big miners decide to go into Digibyte.
Bitcoin Diamond Asic resistant Bitcoin and Copycat
Market 2 - Platform
Most of the cryptos here have smart contracts and allow dapps (Decentralized apps) to be build on their platform and to use their token as an exchange of value between dapp services.
Ethereum: 2nd generation blockchain that allows the use of smart contracts. Bad scalability currently, though this concern could be alleviated by the soon to be implemented Lightning Network aka the Raiden Network, Plasma and its Sharding concept.
EOS: Promising technology that wants to be able do everything, from smart contracts like Ethereum, scalability similar to Nano with 1000 tx/second + near instant transactions and zero fees, to also wanting to be a platform for dapps. However, EOS doesn't have a product yet and everything is just promises still. There are lots of red flags, e.g. having dumped $500 million Ether over the last 2 months and possibly bought back EOS to increase the size of their ICO, which has been going on for over a year and has raised several billion dollars. All in all, their market cap is way too high for that and not even having a product. However, Mainnet release is in 1 month, which could change everything.
Cardano: Similar to Ethereum/EOS, however, only promises made with no delivery yet, highly overrated right now. Interesting concept though. Market cap way too high for not even having a product. Somewhat promising technology.
VeChain: Singapore-based project that’s building a business enterprise platform and inventory tracking system. Examples are verifying genuine luxury goods and food supply chains. Has one of the strongest communities in the crypto world. Most hyped token of all, with merit though.
Neo: Neo is a platform, similar to Eth, but more extensive, allowing dapps and smart contracts, but with a different smart contract gas system, consensus mechanism (PoS vs. dBfT), governance model, fixed vs unfixed supply, expensive contracts vs nearly free contracts, different ideologies for real world adoption. There are currently only 9 nodes, each of which are being run by a company/entity hand selected by the NEO council (most of which are located in china) and are under contract. This means that although the locations of the nodes may differ, ultimately the neo council can bring them down due to their legal contracts. In fact this has been done in the past when the neo council was moving 50 million neo that had been locked up. Also dbft (or neo's implmentation of it) has failed underload causing network outages during major icos. The first step in decentralization is that the NEO Counsel will select trusted nodes (Universities, business partners, etc.) and slowly become less centralized that way. The final step in decentralization will be allowing NEO holders to vote for new nodes, similar to a DPoS system (ARK/EOS/LISK). NEO has a regulation/government friendly ideology. Finally they are trying to work undewith the Chinese government in regards to regulations. If for some reason they wanted it shut down, they could just shut it down.
Stellar:PoS system, similar goals as Ripple, but more of a platform than only a currency. 80% of Stellar are owned by Stellar.org still, making the currency centralized.
Ethereum classic: Original Ethereum that decided not to fork after a hack. The Ethereum that we know is its fork. Uninteresing, because it has a lot of less resources than Ethereum now and a lot less community support.
Ziliqa: Zilliqa is building a new way of sharding. 2400 tpx already tested, 10,000 tps soon possible by being linearly scalable with the number of nodes. That means, the more nodes, the faster the network gets. They are looking at implementing privacy as well.
QTUM: Enables Smart contracts on the Bitcoin blockchain. Useful.
Icon: Korean ethereum. Decentralized application platform that's building communities in partnership with banks, insurance providers, hospitals, and universities. Focused on ID verification and payments.
LISK: Lisk's difference to other BaaS is that side chains are independent to the main chain and have to have their own nodes. Similar to neo whole allows dapps to deploy their blockchain to. Like most cryptocurrencies, Lisk is currently somewhat centralized with a small group of members owning more than 50% of the delegated positions. Lisk plans to change the consensus algorithm for that reason in the near future.
Rchain: Similar to Ethereum with smart contract, though much more scalable at an expected 40,000 TPS and possible 100,000 TPS. Not launched yet. No product launched yet, though promising technology. Not overvalued, probably at the right price right now.
ARDR: Similar to Lisk. Ardor is a public blockchain platform that will allow people to utilize the blockchain technology of Nxt through the use of child chains. A child chain, which is a ‘light’ blockchain that can be customized to a certain extent, is designed to allow easy self-deploy for your own blockchain. Nxt claims that users will "not need to worry" about security, as that part is now handled by the main chain (Ardor). This is the chief innovation of Ardor. Ardor was evolved from NXT by the same company. NEM started as a NXT clone.
Ontology: Similar to Neo. Interesting coin
Bytom: Bytom is an interactive protocol of multiple byte assets. Heterogeneous byte-assets (indigenous digital currency, digital assets) that operate in different forms on the Bytom Blockchain and atomic assets (warrants, securities, dividends, bonds, intelligence information, forecasting information and other information that exist in the physical world) can be registered, exchanged, gambled and engaged in other more complicated and contract-based interoperations via Bytom.
Nxt: Similar to Lisk
Aeternity: We’ve seen recently, that it’s difficult to scale the execution of smart contracts on the blockchain. Crypto Kitties is a great example. Something as simple as creating and trading unique assets on Ethereum bogged the network down when transaction volume soared. Ethereum and Zilliqa address this problem with Sharding. Aeternity focuses on increasing the scalability of smart contracts and dapps by moving smart contracts off-chain. Instead of running on the blockchain, smart contracts on Aeternity run in private state channels between the parties involved in the contracts. State channels are lines of communication between parties in a smart contract. They don’t touch the blockchain unless they need to for adjudication or transfer of value. Because they’re off-chain, state channel contracts can operate much more efficiently. An important aspect of smart contract and dapp development is access to outside data sources. This could mean checking the weather in London, score of a football game, or price of gold. Oracles provide access to data hosted outside the blockchain. In many blockchain projects, oracles represent a security risk and potential point of failure, since they tend to be singular, centralized data streams. Aeternity proposes decentralizing oracles with their oracle machine. Doing so would make outside data immutable and unchangeable once it reaches Aeternity’s blockchain. Aeternity’s network runs on on a hybrid of proof of work and proof of stake. Founded by a long-time crypto-enthusiast and early colleague of Vitalik Buterin, Yanislav Malahov. Promising concept though not product yet
Stratis: Different to LISK, Stratis will allow businesses and organizations to create their own blockchain according to their own needs, but secured on the parent Stratis chain. Stratis’s simple interface will allow organizations to quickly and easily deploy and/or test blockchain functionality of the Ethereum, BitShares, BitCoin, Lisk and Stratis environements.
Status: Status provides access to all of Ethereum’s decentralized applications (dapps) through an app on your smartphone. It opens the door to mass adoption of Ethereum dapps by targeting the fastest growing computer segment in the world – smartphone users.
Ark: Fork of Lisk that focuses on a smaller feature set. Ark wallets can only vote for one delegate at a time which forces delegates to compete against each other and makes cartel formations incredibly hard, if not impossible.
Neblio: Similar to Neo, but at a 30x smaller market cap.
NEM: Is similar to Neo. However, it has no marketing team, very high market cap for little clarilty what they do.
Bancor: Bancor is a Decentralized Liquidity Network that allows you to hold any Ethereum token and convert it to any other token in the network, with no counter party, at an automatically calculated price, using a simple web wallet.
Dragonchain: The Purpose of DragonChain is to help companies quickly and easily incorporate blockchain into their business applications. Many companies might be interested in making this transition because of the benefits associated with serving clients over a blockchain – increased efficiency and security for transactions, a reduction of costs from eliminating potential fraud and scams, etc.
Skycoin: Transactions with zero fees that take apparently two seconds, unlimited transaction rate, no need for miners and block rewards, low power usage, all of the usual cryptocurrency technical vulnerabilities fixed, a consensus mechanism superior to anything that exists, resistant to all conceivable threats (government censorship, community infighting, cybenucleaconventional warfare, etc). Skycoin has their own consensus algorithm known as Obelisk written and published academically by an early developer of Ethereum. Obelisk is a non-energy intensive consensus algorithm based on a concept called ‘web of trust dynamics’ which is completely different to PoW, PoS, and their derivatives. Skywire, the flagship application of Skycoin, has the ambitious goal of decentralizing the internet at the hardware level and is about to begin the testnet in April. However, this is just one of the many facets of the Skycoin ecosystem. Skywire will not only provide decentralized bandwidth but also storage and computation, completing the holy trinity of commodities essential for the new internet. Skycion a smear campaign launched against it, though they seem legit and reliable. Thus, they are probably undervalued.
Market 3 - Ecosystem
The 3rd market with 11 coins is comprised of ecosystem coins, which aim to strengthen the ease of use within the crypto space through decentralized exchanges, open standards for apps and more
Nebulas: Similar to how Google indexes webpages Nebulas will index blockchain projects, smart contracts & data using the Nebulas rank algorithm that sifts & sorts the data. Developers rewarded NAS to develop & deploy on NAS chain. Nebulas calls this developer incentive protocol – basically rewards are issued based on how often dapp/contract etc. is used, the more the better the rewards and Proof of devotion. Works like DPoS except the best, most economically incentivised developers (Bookkeeppers) get the forging spots. Ensuring brains stay with the project (Cross between PoI & PoS). 2,400 TPS+, DAG used to solve the inter-transaction dependencies in the PEE (Parallel Execution Environment) feature, first crypto Wallet that supports the Lightening Network.
Waves: Decentralized exchange and crowdfunding platform. Let’s companies and projects to issue and manage their own digital coin tokens to raise money.
Salt: Leveraging blockchain assets to secure cash loands. Plans to offer cash loans in traditional currencies, backed by your cryptocurrency assets. Allows lenders worldwide to skip credit checks for easier access to affordable loans.
CHAINLINK: ChainLink is a decentralized oracle service, the first of its kind. Oracles are defined as an ‘agent’ that finds and verifies real-world occurrences and submits this information to a blockchain to be used in smart contracts.With ChainLink, smart contract users can use the network’s oracles to retrieve data from off-chain application program interfaces (APIs), data pools, and other resources and integrate them into the blockchain and smart contracts. Basically, ChainLink takes information that is external to blockchain applications and puts it on-chain. The difference to Aeternity is that Chainlink deploys the smart contracts on the Ethereum blockchain while Aeternity has its own chain.
WTC: Combines blockchain with IoT to create a management system for supply chains Interesting
Ethos unifyies all cryptos. Ethos is building a multi-cryptocurrency phone wallet. The team is also building an investment diversification tool and a social network
Komodo: The Komodo blockchain platform uses Komodo’s open-source cryptocurrency for doing transparent, anonymous, private, and fungible transactions. They are then made ultra-secure using Bitcoin’s blockchain via a Delayed Proof of Work (dPoW) protocol and decentralized crowdfunding (ICO) platform to remove middlemen from project funding. Offers services for startups to create and manage their own Blockchains.
Aion: Today, there are hundreds of blockchains. In the coming years, with widespread adoption by mainstream business and government, these will be thousands or millions. Blockchains don’t talk to each other at all right now, they are like the PCs of the 1980s. The Aion network is able to support custom blockchain architectures while still allowing for cross-chain interoperability by enabling users to exchange data between any Aion-compliant blockchains by making use of an interchain framework that allows for messages to be relayed between blockchains in a completely trust-free manner.
Tenx: Raised 80 million, offers cryptocurrency-linked credit cards that let you spend virtual money in real life. Developing a series of payment platforms to make spending cryptocurrency easier.
Market 4 - Privacy
The 4th market are privacy coins. As you might know, Bitcoin is not anonymous. If the IRS or any other party asks an exchange who is the identity behind a specific Bitcoin address, they know who you are and can track back almost all of the Bitcoin transactions you have ever made and all your account balances. Privacy coins aim to prevent exactly that through address fungability, which changes addresses constantly, IP obfuscation and more. There are 2 types of privacy coins, one with completely privacy and one with optional privacy. Optional Privacy coins like Dash and Nav have the advantage of more user friendliness over completely privacy coins such as Monero and Enigma.
Monero: Currently most popular privacy coin, though with a very high market cap. Since their privacy is all on chain, all prior transactions would be deanonymized if their protocol is ever cracked. This requires a quantum computing attack though. PIVX is better in that regard.
Zcash: A decentralized and open-source cryptocurrency that hide the sender, recipient, and value of transactions. Offers users the option to make transactions public later for auditing. Decent privacy coin, though no default privacy
Verge: Calls itself privacy coin without providing private transactions, multiple problems over the last weeks has a toxic community, and way too much hype for what they have.
Bytecoin: First privacy-focused cryptocurrency with anonymous transactions. Bytecoin’s code was later adapted to create Monero, the more well-known anonymous cryptocurrency. Has several scam accusations, 80% pre-mine, bad devs, bad tech
Bitcoin Private: A merge fork of Bitcoin and Zclassic with Zclassic being a fork of Zcash with the difference of a lack of a founders fee required to mine a valid block. This promotes a fair distribution, preventing centralized coin ownership and control. Bitcoin private offers the optional ability to keep the sender, receiver, and amount private in a given transaction. However, this is already offered by several good privacy coins (Monero, PIVX) and Bitcoin private doesn't offer much more beyond this.
PIVX: As a fork of Dash, PIVX uses an advanced implementation of the Zerocoin protocol to provide it’s privacy. This is a form of zeroknowledge proofs, which allow users to spend ‘Zerocoins’ that have no link back to them. Unlike Zcash u have denominations in PIVX, so they can’t track users by their payment amount being equal to the amount of ‘minted’ coins, because everyone uses the same denominations. PIVX is also implementing Bulletproofs, just like Monero, and this will take care of arguably the biggest weakness of zeroknowledge protocols: the trusted setup.
Zcoin: PoW cryptocurrency. Private financial transactions, enabled by the Zerocoin Protocol. Zcoin is the first full implementation of the Zerocoin Protocol, which allows users to have complete privacy via Zero-Knowledge cryptographic proofs.
Enigma: Monero is to Bitcoin what enigma is to Ethereum. Enigma is for making the data used in smart contracts private. More of a platform for dapps than a currency like Monero. Very promising.
Navcoin: Like bitcoin but with added privacy and pos and 1,170 tps, but only because of very short 30 second block times. Though, privacy is optional, but aims to be more user friendly than Monero. However, doesn't really decide if it wants to be a privacy coin or not. Same as Zcash.Strong technology, non-shady team.
Market 5 - Currency Exchange Tool
Due to the sheer number of different cryptocurrencies, exchanging one currency for the other it still cumbersome. Further, merchants don’t want to deal with overcluttered options of accepting cryptocurrencies. This is where exchange tool like Req come in, which allow easy and simple exchange of currencies.
Cryptonex: Fiat and currency exchange between various blockchain services, similar to REQ.
QASH: Qash is used to fuel its liquid platform which will be an exchange that will distribute their liquidity pool. Its product, the Worldbook is a multi-exchange order book that matches crypto to crypto, and crypto to fiat and the reverse across all currencies. E.g., someone is selling Bitcoin is USD on exchange1 not owned by Quoine and someone is buying Bitcoin in EURO on exchange 2 not owned by Quoine. They turned it on to test it a few months ago for an hour or so and their exchange was the top exchange in the world by 4x volume for the day because all Worldbook trades ran through it. Binance wants BNB to be used on their one exchange. Qash wants their QASH token embedded in all of their partners.
Kyber: network Exchange between cryptocurrencies, similar to REQ. Features automatic coin conversions for payments. Also offers payment tools for developers and a cryptocurrency wallet.
Achain: Building a boundless blockchain world like Req .
Centrality: Centrality is a decentralized market place for dapps that are all connected together on a blockchain-powered system. Centrality aims to allow businesses to work together using blockchain technology. With Centrality, startups can collaborate through shared acquisition of customers, data, merchants, and content. That shared acquisition occurs across the Centrality blockchain, which hosts a number of decentralized apps called Scenes. Companies can use CENTRA tokens to purchase Scenes for their app, then leverage the power of the Centrality ecosystem to quickly scale. Some of Centrality's top dapps are, Skoot, a travel experience marketplace that consists of a virtual companion designed for free independent travelers and inbound visitors, Belong, a marketplace and an employee engagement platform that seems at helping business provide rewards for employees, Merge, a smart travel app that acts as a time management system, Ushare, a transports application that works across rental cars, public transport, taxi services, electric bikes and more. All of these dapps are able to communicate with each other and exchange data through Centrality.
Bitshares: Exchange between cryptocurrencies. Noteworthy are the 1.5 second average block times and throughput potential of 100,000 transactions per second with currently 2,400 TPS having been proven. However, Bitshares had several Scam accusations in the past.
Loopring: A protocol that will enable higher liquidity between exchanges and personal wallets by pooling all orders sent to its network and fill these orders through the order books of multiple exchanges. When using Loopring, traders never have to deposit funds into an exchange to begin trading. Even with decentralized exchanges like Ether Delta, IDex, or Bitshares, you’d have to deposit your funds onto the platform, usually via an Ethereum smart contract. But with Loopring, funds always remain in user wallets and are never locked by orders. This gives you complete autonomy over your funds while trading, allowing you to cancel, trim, or increase an order before it is executed.
ZRX: Open standard for dapps. Open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain. In 0x protocol, orders are transported off-chain, massively reducing gas costs and eliminating blockchain bloat. Relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer.
Market 6 - Gaming
With an industry size of $108B worldwide, Gaming is one of the largest markets in the world. For sure, cryptocurrencies will want to have a share of that pie.
Storm: Mobile game currency on a platform with 9 million players.
Fun: A platform for casino operators to host trustless, provably-fair gambling through the use of smart contracts, as well as creating their own implementation of state channels for scalability.
Electroneum: Mobile game currency They have lots of technical problems, such as several 51% attacks
Wax: Marketplace to trade in-game items
Market 7 - Misc
There are various markets being tapped right now. They are all summed up under misc.
OMG: Omise is designed to enable financial services for people without bank accounts. It works worldwide and with both traditional money and cryptocurrencies.
Power ledger: Australian blockchain-based cryptocurrency and energy trading platform that allows for decentralized selling and buying of renewable energy. Unique market and rather untapped market in the crypto space.
Populous: Populous is a platform that connects business owners and invoice buyers without middlemen. Furthermore, it is a peer-to-peer (P2P) platform that uses blockchain to provide small and medium-sized enterprises (SMEs) a more efficient way to participate in invoice financing. Businesses can sell their outstanding invoices at a discount to quickly free up some cash. Invoice sellers get cash flow to fund their business and invoice buyers earn interest.
Monacoin: The first Japanese cryptocurrency. Focused on micro-transactions and based on a popular internet meme of a type-written cat. This makes it similar to Dogecoin. Very niche, tiny market.
Revain: Legitimizing reviews via the blockchain. Interesting concept, though market not as big.
Augur: Platform to forecast and make wagers on the outcome of real-world events (AKA decentralized predictions). Uses predictions for a “wisdom of the crowd” search engine. Not launched yet.
Substratum: Revolutionzing hosting industry via per request billing as a decentralized internet hosting system. Uses a global network of private computers to create the free and open internet of the future. Participants earn cryptocurrency. Interesting concept.
Veritaseum: Is supposed to be a peer to peer gateway, though it looks like very much like a scam.
TRON: Tronix is looking to capitalize on ownership of internet data to content creators. However, they plagiarized their white paper, which is a no go. They apologized, so it needs to be seen how they will conduct themselves in the future. Extremely high market cap for not having a product, nor proof of concept.
Syscoin: A cryptocurrency with a decentralized marketplace that lets people buy and sell products directly without third parties. Trying to remove middlemen like eBay and Amazon.
Hshare: Most likely scam because of no code changes, most likely pump and dump scheme, dead community.
BAT: An Ethereum-based token that can be exchanged between content creators, users, and advertisers. Decentralized ad-network that pays based on engagement and attention.
Dent: Decentralizeed exchange of mobile data, enabling mobile data to be marketed, purchased or distributed, so that users can quickly buy or sell data from any user to another one.
Ncash: End to end encrypted Identification system for retailers to better serve their customers .
Factom Secure record-keeping system that allows companies to store their data directly on the Blockchain. The goal is to make records more transparent and trustworthy .
Market 8 - Social network
Web 2.0 is still going strong and Web 3.0 is not going to ignore it. There are several gaming tokens already out there and a few with decent traction already, such as Steem, which is Reddit with voting through money is a very interesting one.
Mithril: As users create content via social media, they will be rewarded for their contribution, the better the contribution, the more they will earn
Steem: Like Reddit, but voting with money. Already launched product and Alexa rank 1,000 Thumbs up.
Rdd: Reddcoin makes the process of sending and receiving money fun and rewarding for everyone. Reddcoin is dedicated to one thing – tipping on social networks as a way to bring cryptocurrency awareness and experience to the general public.
Kin: Token for the platform Kik. Kik has a massive user base of 400 million people. Replacing paying with FIAT with paying with KIN might get this token to mass adoption very quickly.
Market 9 - Fee token
Popular exchanges realized that they can make a few billion dollars more by launching their own token. Owning these tokens gives you a reduction of trading fees. Very handy and BNB (Binance Coin) has been one of the most resilient tokens, which have withstood most market drops over the last weeks and was among the very few coins that could show growth.
BNB: Fee token for Binance
Gas: Not a Fee token for an exchange, but it is a dividend paid out on Neo and a currency that can be used to purchase services for dapps.
Kucoin: Fee token for Kucoin
Market 10 - Decentralized Data Storage
Currently, data storage happens with large companies or data centers that are prone to failure or losing data. Decentralized data storage makes loss of data almost impossible by distributing your files to numerous clients that hold tiny pieces of your data. Remember Torrents? Torrents use a peer-to-peer network. It is similar to that. Many users maintain copies of the same file, when someone wants a copy of that file, they send a request to the peer-to-peer network., users who have the file, known as seeds, send fragments of the file to the requester. The requester receives many fragments from many different seeds, and the torrent software recompiles these fragments to form the original file.
Gbyte: Byteball data is stored and ordered using directed acyclic graph (DAG) rather than blockchain. This allows all users to secure each other's data by referencing earlier data units created by other users, and also removes scalability limits common for blockchains, such as blocksize issue.
Siacoin: Siacoin is decentralized storage platform. Distributes encrypted files to thousands of private users who get paid for renting out their disk space. Anybody with siacoins can rent storage from hosts on Sia. This is accomplish via "smart" storage contracts stored on the Sia blockchain. The smart contract provides a payment to the host only after the host has kept the file for a given amount of time. If the host loses the file, the host does not get paid.
Maidsafecoin: MaidSafe stands for Massive Array of Internet Disks, Secure Access for Everyone.Instead of working with data centers and servers that are common today and are vulnerable to data theft and monitoring, You can think of SAFE as a crowd-sourced internet. It’s an autonomous network that automatically sets prices and distributes data and rents out hard drive disk space with a Blockchain-based storage solutions.When you upload a file to the network, such as a photo, it will be broken into pieces, hashed, and encrypted. Then, redundant copies of the data are created as well so that if someone storing your file turns off their computer, you will still have access to your data. And don’t worry, even with pieces of your data on other people’s computers, they won’t be able to read them. You can earn MadeSafeCoins by participating in storing data pieces from the network on your computer and thus earning a Proof of Resource.
Storj: Storj aims to become a cloud storage platform that can’t be censored or monitored, or have downtime. Your files are encrypted, shredded into little pieces called 'shards', and stored in a decentralized network of computers around the globe. No one but you has a complete copy of your file, not even in an encrypted form.
Market 11 - Cloud computing
Obviously, renting computing power, one of the biggest emerging markets as of recent years, e.g. AWS and Digital Ocean, is also a service, which can be bought and managed via the blockchain.
Golem: Allows easy use of Supercomputer in exchange for tokens. People worldwide can rent out their computers to the network and get paid for that service with Golem tokens.
Elf: Allows easy use of Cloud computing in exchange for tokens.
Market 12 - Stablecoin
Last but not least, there are 2 stablecoins that have established themselves within the market. A stable coin is a coin that wants to be independent of the volatility of the crypto markets. This has worked out pretty well for Maker and DGD, accomplished through a carefully diversified currency fund and backing each token by 1g or real gold respectively. DO NOT CONFUSE DGD AND MAKER with their STABLE COINS DGX and DAI. DGD and MAKER are volatile, because they are the companies of DGX and DAI. DGX and DAI are the stable coins.
DGD: Platform of the Stablecoin DGX. Every DGX coin is backed by 1g of gold and make use proof of asset consensus.
Maker: Platform of the Stablecoin DAI that doesn't vary much in price through widespread and smart diversification of assets.
USDT: is no cryptocurrency really, but a replacement for dollar for trading After months of asking for proof of dollar backing, still no response from Tether.
EDIT: Added a risk factor from 0 to 10. Significant scandals, mishaps, shady practices, questionable technology, increase the risk factor. Not having a product yet automatically means a risk factor of 6. Strong adoption and thus strong scrutiny or positive community lower the risk factor. EDIT2: Added a subjective potential factor from 0 to 10, where its overall potential and a small or big market cap is factored in. Bitcoin with lots of potential only gets a 9, because of its massive market cap, because if Bitcoin goes 10x, smaller coins go 100x.
Hashrate: went from 54 to 76 PH/s, the low was 50 and the new all-time high is 100 PH/s. BeePool share rose to ~50% while F2Pool shrank to 30%, followed by coinmine.pl at 5% and Luxor at 3%. Staking: 30-day average ticket price is 95.6 DCR (+3.0) as of Sep 3. During the month, ticket price fluctuated between a low of 92.2 and high of 100.5 DCR. Locked DCR represented between 3.8 and 3.9 million or 46.3-46.9% of the supply. Nodes: there are 217 public listening and 281 normal nodes per dcred.eu. Version distribution: 2% at v1.4.0(pre) (dev builds), 5% on v1.3.0 (RC1), 62% on v1.2.0 (-5%), 22% on v1.1.2 (-2%), 6% on v1.1.0 (-1%). Almost 69% of nodes are v.1.2.0 and higher and support client filters. Data snapshot of Aug 31.
Obelisk posted 3 email updates in August. DCR1 units are reportedly shipping with 1 TH/s hashrate and will be upgraded with firmware to 1.5 TH/s. Batch 1 customers will receive compensation for missed shipment dates, but only after Batch 5 ships. Batch 2-5 customers will be receiving the updated slim design. Innosilicon announced the new D9+ DecredMaster: 2.8 TH/s at 1,230 W priced $1,499. Specified shipping date was Aug 10-15. FFMiner DS19 claims 3.1 TH/s for Blake256R14 at 680 W and simultaneously 1.55 TH/s for Blake2B at 410 W, the price is $1,299. Shipping Aug 20-25. Another newly noticed miner offer is this unit that does 46 TH/s at 2,150 W at the price of $4,720. It is shipping Nov 2018 and the stats look very close to Pangolin Whatsminer DCR (which has now a page on asicminervalue).
www.d1pool.com joined the list of stakepools for a total of 16. Australian CoinTreeadded DCR trading. The platform supports fiat, there are some limitations during the upgrade to a new system but also no fees in the "Early access mode". On a related note, CoinTree is working on a feature to pay household bills with cryptocurrencies it supports. Three new OTC desks were added to exchanges page at decred.org. Two mobile wallets integrated Decred:
Coinomiadded Decred to their Android and iOS wallets. In addition to the Apple App Store and Google Play you can download the APK directly. Coinomi features an integrated cryptocurrency exchange and is the first company to offer a mobile Decred wallet.
Reminder: do your best to understand the security and privacy model before using any wallet software. Points to consider: who controls the seed, does the wallet talk to the nodes directly or via middlemen, is it open source or not?
Bit Dialsannounced DCR support via GloBee at their bitdials.eu luxury boutique. Their separate supercar and classic car shop bitcars.eu also accepts DCR, either via GloBee or with manual invoicing in case of privacy concerns.
Targeted advertising report for August was posted by @timhebel. Facebook appeal is pending, some Google and Twitter campaigns were paused and some updated. Read more here. Contribution to the @decredproject Twitter account has evolved over the past few months. A #twitter_ops channel is being used on Matrix to collaboratively draft and execute project account tweets (including retweets). Anyone with an interest in contributing to the Twitter account can ask for an invitation to the channel and can start contributing content and ideas there for evaluation by the Twitter group. As a result, no minority or unilateral veto over tweets is possible. (from GitHub)
Meetup in Puebla City, Mexico, organized by @elian. (photo, slides, missed in July issue)
@joshuam discussed Decred and decentralized organizations with Craig Laundy, Federal Minister for Small Business, the Workplace, and Deregulation with the Australian Government, at @YBFVentures. (photos)
Meetup at @TheBlockCafe in Lisbon, Portugal. @mm presented "Decred 101 - Governance with Skin in the Game" and @moo31337 talked about Decred's 2018 roadmap. (photos: 123)
Meetup in Taipei, Taiwan. @morphymore made a short intro of Decred and noted: "After the talk, many have approached to tell me that they literally don’t hear of Decred until today, and are interested in finding out more about the merit of a hybrid consensus system.". Longer report here, some photos and a video are here.
@eSizeDave introduced Decred to the SILC Undergraduate Program students at @YBFVentures. (photo)
OKEx Global Meetup Tour in Ho Chi Minh City, Vietnam. @joshuam gave a brief presentation covering the history of Decred, how the project functions, and the importance of governance. Afterwards he joined a panel discussion and spoke about Decred's incentives for long term viability. (video, video, photo)
Blockchain Futurist Conference in Toronto, Canada. @zubairzia0 noted: "Devs and the community were held in high regard for the people who knew about decred ... one positive thing I remember was someone defending us saying 'Decred does not need a booth', I believe that comment was reflective of the quality of projects being showcased at the conference.". (photo)
Meetup at @YBFVentures in Melbourne, Australia. @joshuam discussed Decred with Graham Stuart, U.K. Minister for International Trade. (news, photos)
Small meetup with Jackson Palmer in Melbourne, Australia. (photo)
Hawthorne Street Fair in Portland, USA. Raedah Group was out answering questions about crypto and Decred. (photos)
Blockchain APAC in Melbourne, Australia. @joshuam joined a panel discussion with reps from banking, university and ISO/TC 307. @eSizeDave reports: "This enterprise conference was indeed a whole lot better than I expected. The presentations were actually full of very worthwhile information from credible people, articulated aptly to a very government, academic, and corporate crowd, who genuinely took on board valuable insights. Good to know some of these key people are Decred holders and stakers as well. I got to use the entire day to speak directly with some of the most pivotal personalities in this particular populace. Ongoing relationships have been built and strengthened.". (photos: 123)
For those willing to help with the events:
BAB: Hey all, we are gearing up for conference season. I have a list of places we hope to attend but need to know who besides @joshuam and @Haon are willing to do public speaking, willing to work booths, or help out at them? You will need to be well versed on not just what is Decred, but the history of Decred etc... DM me if you are interested. (#event_planning) The Decred project is looking for ambassadors. If you are looking for a fun cryptocurrency to get involved in send me a DM or come talk to me on Decred slack. (@marco_peereboom, longer version here)
One private work channel was successfully migrated to Matrix.
Stylish room avatars were set.
@Haon has prepared a short guide to help new Matrix users get started and join the Decred rooms.
A thread was started to discuss changes to Decred jargon with the intent to make it more consistent and accessible to newcomers. The question whether changing "official" terminology requires stakeholder approval was touched in this thread and in #documentation.
Project fund transparency and constitution were extensively discussed on Reddit and in #general.
Pre-proposal to use Politeia to approve Politeia as a legitimate decision-making tool for Decred.
Reddit: substantive discussion about Decred cons; ecosystem fund; a thread about voter engagement, Politeia UX and trolling; idea of a social media system for Decred by @michae2xl; how profitable is the Obelisk DCR1. Chats: cross-chain trading via LN; plans for contractor management system, lower-level decision making and contractor privacy vs transparency for stakeholders; measuring dev activity; what if the network stalls, multiple implementations of Decred for more resilience, long term vision behind those extensive tests and accurate comments in the codebase; ideas for process for policy documents, hosting them in Pi and approving with ticket voting; about SPV wallet disk size, how compact filters work; odds of a wallet fetching a wrong block in SPV; new module system in Go; security of allowing Android app backups; why PoW algo change proposal must be specified in great detail; thoughts about NIPoPoWs and SPV; prerequisites for shipping SPV by default (continued); Decred vs Dash treasury and marketing expenses, spending other people's money; why Decred should not invade a country, DAO and nation states, entangling with nation state is poor resource allocation; how winning tickets are determined and attack vectors; Politeia proposal moderation, contractor clearance, the scale of proposals and decision delegation, initial Politeia vote to approve Politeia itself; chat systems, Matrix/Slack/Discord/RocketChat/Keybase (continued); overview of Korean exchanges; no breaking changes in vgo; why project fund burn rate must keep low; asymptotic behavior of Decred and other ccs, tail emission; count of full nodes and incentives to run them; Politeia proposal translations and multilingual environment. An unusual event was the chat about double negatives and other oddities in languages in #trading.
DCR started the month at USD 56 / BTC 0.0073 and had a two week decline. On Aug 14 the whole market took a huge drop and briefly went below USD 200 billion. Bitcoin went below USD 6,000 and top 100 cryptos lost 5-30%. The lowest point coincided with Bitcoin dominance peak at 54.5%. On that day Decred dived -17% and reached the bottom of USD 32 / BTC 0.00537. Since then it went sideways in the USD 35-45 / BTC 0.0054-0.0064 range. Around Aug 24, Huobi showed DCR trading volume above USD 5M and this coincided with a minor recovery. @ImacallyouJawdy posted some creative analysis based on ticket data.
StopAndDecrypt published an extensive article "ASIC Resistance is Nothing but a Blockchain Buzzword" that is much in line with Decred's stance on ASICs. The ongoing debates about the possible Sia fork yet again demonstrate the importance of a robust dispute resolution mechanism. Also, we are lucky to have the treasury. Mark B Lundeberg, who found a vulnerability in atomicswap earlier, published a concept of more private peer-to-peer atomic swaps. (missed in July issue) Medium took a cautious stance on cryptocurrencies and triggered at least one project to migrate to Ghost (that same project previously migrated away from Slack). Regulation: Vietnam bans mining equipment imports, China halts crypto events and tightens control of crypto chat groups. Reddit was hacked by intercepting 2FA codes sent via SMS. The announcement explains the impact. Yet another data breach suggests to think twice before sharing any data with any company and shift to more secure authentication systems. Intel and x86 dumpsterfire keeps burning brighter. Seek more secure hardware and operating systems for your coins. Finally, unrelated to Decred but good for a laugh: yetanotherico.com.
About This Issue
This is the 5th issue of Decred Journal. It is mirrored on GitHub, Medium and Reddit. Past issues are available here. Most information from third parties is relayed directly from source after a minimal sanity check. The authors of Decred Journal have no ability to verify all claims. Please beware of scams and do your own research. Feedback is appreciated: please comment on Reddit, GitHub or #writers_room on Matrix or Slack. Contributions are welcome too. Some areas are collecting content, pre-release review or translations to other languages. Check out @Richard-Red's guide how to contribute to Decred using GitHub without writing code. Credits (Slack names, alphabetical order): bee, Haon, jazzah, Richard-Red and thedecreddigest.
Dash In 2018: Disappointments, Boondoggles, Scandals, Disasters, & Catastrophes
[The original post was censored in the the paidshill Dash pumping sub Dashpay, where actual discussion beyond "2018 kind of sucked for Dash" is not allowed.] Disappointments In 2018, Dash failed to be listed on Coinbase while ETC and many other coins were, due to Dash's notorious Instamine, centralized development, and murky Howey Test/SEC Action status. In 2018, Dash failed be included in the OpenBazaar project, while Monero and several other alts were added. In 2018, efforts to hype Dash's supposedly impressive 2mb block-based tx/sec rate were crushed and humiliated when DCG's creaky old client hit a crippling software limitation around the same time as BCH and BSV were chewing through 32 and 64 megabyte blocks. In 2018, Dash's former anti-segwit hero Craig Wright learned new facts about law and concluded Dash is an illegal security, saying so loudly in tweets backed by citations. In 2018, Wirex and other debit card providers supported Bitcoin and many alts, but not Dash, despite a year of Shrem 2.0 shill talk about integrations 'soon'. In 2018, Dash Core used Uphold for the "Acquire Dash" part of their Kript mobile plan, but Uphold doesn't work in Venezuela , so that pillar of their strategy was broken. Boondoggles In 2018, the FanDuel fiasco wasted a fortune in cash and goodwill, leaving Dash's target market of online gambling to Calvin Ayre's BSV and Roger Ver's BCH blockchains. In 2018, the DACH Embassy fiasco wasted a fortune in cash and goodwill, as nobody ever really cared about Macrocuck/Simon/Basilpop/Ezra/Fabio running around desperately trying to look busy enough to justify their ridiculous burn rate and poor results. In 2018, the CoPay fiasco wasted a fortune in cash and goodwill as users and devs suffered an ambush from DCG, leaving the formerly hyped "backbone of Evolution" project instantly retired to abandonware status. In 2018, the Alt36 train-wreck-in-progress slowly lurched towards its imminent conclusion of causing more toxic FUD and wasting a fortune in cash and goodwill with zero deliverables to show for it. Scandals In 2018, fake "Venezuela adoption" news resulted in massive public humiliation as Twitter, cc, and Russia Today (ironically, the home of Dash paidshill Max Keiser) debunked hype that only amounted to useless stickers on greasy cash registers. In 2018, Evan and Amanda were missing in action, despite Evan's previous promises to develop hardware and support the ecosystem with his vast, intentionally insta-mined fortune. In 2018, Dash paid to hold a Bitcoin networking event at a Miami strip club, offending so many people (it was a 2nd offence for Dash with strippers at TNABC) the scandal was reported worldwide by Bloomberg, Fortue, Business Insider, etc. In 2018, knowledge of Dash's instamine became widespread throughout the entire crypto universe and the intentional nature of Evan's faked "bug" excuse became a subject of investigation. In 2018, Dash cargo cultists reduced themselves to shilling the dwindling number of cherry-picked metrics by which Dash was not failing utterly, such as the absurd "FairCoinValue" and fallacious/irrelevant "ATH Masternode Count" hype. In 2018, the KuvaCash fiasco turned toxic (wasting a fortune in cash and goodwill) resulting in a kDAO splinter group of venture capitalist MNOs and creating massive Howey Test implications. Disasters In 2018, a KuvaNation vs. DACH Force News civil war inflicted mass casualties, leaving a permanent split of the "DGBB" community into non-cooperative Team Tao and Team Joel factions fighting over a shrinking Treasury budget like starving rats. In 2018, malicious MNOs trolled Dash at the protocol level and on DashCentral, causing chaos at the very end of voting cycles, thus showing the entire world Dash is not resistant to Sybil attack after all. In 2018, Dash Clown Group Inc failed to live up to its own self-imposed "Agile Development" goals so many times they published one sketchy, final "DRAFT" roadmap, and then quietly abandoned entirely the idea of actually trying to meet deadlines (despite the dash.org page still advertising a Q4 2018 Alpha release). Catastrophes In 2018, a single mining pool controlled enough hashpower to prevent a timely upgrade, demonstrating that Dash's PoW is not sufficiently decentralized (due to Bitmain's monopoly on Dash ASICs). In 2018, www.crypto51.app showed the world Dash is >90% NiceHash-able and thus may be 51% attacked easily and cheaply (<1 BTC per hour), causing Poloniex and other exchanges to require 50 confirmations (rather than using InsantSend). In 2018, the failures of Dash's X11-based PoW security model and resulting threat of attacks caused Dash to abandon Nakamoto Consensus for a wonky, untested, homespun version of checkpoints (conceding defeat and offering an unconditional "pre-consensus" surrender before an attack even happened). In 2018, Evolution was not here by NYE (not even an alpha version of a testnet). In 2018, no amount of brave ThisIsFine talk about buying dips could change the fact that Dash Core Group Inc had to radically downsize due to their customary $935k/month funding being completely unsupportable. Analysis Never mind the price drop, even though Dash suffered worse than most of its Top 20 peers and fell in rank from #3 all the way down to #16. Let's ignore the fact Dash is marketed to investors with the 'Masternode' feature advertised as supposedly stabilizing the price. Let's also ignore the fact that in 2018 Dash's supposed Sybil-resistance was shown to be inadequate, as blockchain analysis revealed dozens of Masternodes trolling at the protocol level by voting no on all but the infamous DEMOTE RYAN TAYLOR proposal. Evolution was, after years of delays, complete from-scratch reboots, and blown goals, given one final self-imposed deadline to meet. Dash's Queen, Amanda of the Used Car Lot, declared she was going have to rethink her position regarding Duff's Instamined Masternode tokens if that deadline wasn't met. That deadline was midnight Dec 31, 2018. Now it's the first morning of 2019 and Evolution is nowhere to be seen. Even worse, Dash Clown Inc is once again making negative progress towards their goals of shipping a test-net version of v13 worth of the term "Release Candidate." Dash Clown Inc burned through ten (10) un-releasable (because broken) so-called Release Candidates. Finally the clueless clowns (running around like headless chickens since Andy Freer was fired or rage-quit) gave up on the entire v13 RC branch and went back to tinkering with v12. No updates to the crucial LLMQ repo have been made since November, when the price drop crushed DCG's budget and Andy suddenly left Evolution to die on the operating table. Dash in 2018 through the eyes of Reddit's most popular crypto sub January 2018
Conclusion The Top Three Dash-related posts at cryptocurrency are a microcosm of Dash's start-to-finish miserable, horrible, terrible year of self-inflicted blunders, money pits, and epoch-ending cataclysms cumulating in the resolution of the Dash experiment and disproving Evan's "Dash is Digital Cash" hypothesis. Note: The repost is shared here. The original has been censored from Dashpay. https://np.reddit.com/DashUncensored/comments/abvewf/dash_in_2018_disappointments_boondoggles_scandals/ [Dash is such a terrible scam that it needs its own uncensored sub to discuss happenings without incurring the wrath of the MNO and the Dash ponzi leadership/Evan/Amanda. I honestly believe crypto must weed out these ponzi like operations before we can move forward as a collective group]
In a recent interview between John Carvahlo, CEO of Xotika and owner of the YouTube channel Bitcoin Error Log, and Roger Ver, millionaire Bitcoin investor and owner of the web domain bitcoin.com, tensions rise to all time highs much like the price of the coin these two individuals sponsor. In this near 45 minute interview that was cut short due to the latter “Rage-Quitting”, a lot was revealed from the core philosophies surrounding both Bitcoin and Bitcoin Cash in the 2017 market of crypto currencies. The interview begins and ends with a discussion over the name “Bcash” which was infamously given to Bitcoin Cash by its opponents in the crypto-sphere. Bitcoin Cash was given the name Bcash by the Bitcoin community so as to not create confusion between the two coins as well as to anger the supporters of Bitcoin Cash; a tactic which appears to be quite effective as demonstrated in this interview. To be fair to Roger Ver, Carvahlo did seem a bit unprofessional by not trying to avoid calling Bitcoin Cash Bcash or by getting equally as heated as Roger Ver, but it’s a free market and there are no rules or laws that prevent him from doing as he pleases. On one side we have Roger Ver, vehemently defending the honour of Bitcoin Cash as the truest form of the white paper created by Satoshi Nakamoto. On the other hand we have John Carvahlo who seems to use the term Bcash to delegitimize the claim that Bitcoin Cash is the true Bitcoin, to avoid confusion between the two coins for any newcomers to the crypto currency space and to annoy Roger Ver. Through out the rest of the interview, between overlapping rebuttals, some bits of information are dropped that reveal a lot about the true intention of one party in particular. For starters Roger Ver claims that Bitcoin is a peer-to-peer electronic cash system to which Carvahlo disagrees as the presence of nodes on the network suggests otherwise. And I have to agree with John Carvahlo. Nothing on the Internet is truly peer-to-peer. The Internet itself suffers from forms of centralization between Internet Service Providers and the regional nodes they get the Internet from. The Internet in 2017 is void of any direct communication between peers; there are always middlemen in between. This brings up another topic discussed during the interview, whether or not Bitcoin as a network is truly decentralized. For starters, Roger Ver claims that varying degrees of centralization are acceptable within the network and he expects the network to become more and more centralized as the growth of Bitcoin continues. To which I half agree. I think anarchy as governance is flawed; some political structure is necessary, such as Athenian democracy. Yes the Internet’s structure as well as that of the Bitcoin network, with the nodes and the ever-increasing difficulty of mining, can both guarantee that the Bitcoin network will never be truly decentralized and peer-to-peer. But what is worrying is what degree of centralization Roger Ver is ok with; and that is the heart of the scaling debate. Yes at times the Bitcoin network suffers from slow transaction times and high fees. Yes scaling is a problem with a desperate need for a solution. No, increasing the block size is not the answer. First, lets dissect Roger Ver’s position on bigger blocks. He claims that over the last 7 to 8 years, the Bitcoin blocks have scaled successfully and that empirically, it is a proven scaling solution that will lower transaction fees and times. The problem with that is his premise that Bitcoin has been scaling since the beginning is completely wrong and paints his cause in a preferred light. Bitcoin has not been scaling since 2009. When Bitcoin was created, within the code a block size limit was written. The block size limit has to be defined for blockchain to work because that would be a coding error. It would cause network stalls during periods of high traffic where a block could in theory never fill if enough transactions are being sent to the network at once. This is what is known as a Sybil attack. So from a certain point in time early in Bitcoin’s development, a block size limit of 1MB was coded into Bitcoin. Roger Ver claims that over the years, the block size grew from 1 KB to 2KB, so on and so forth until it reached the 1MB block size but that is wrong. The blocks always had room for 1MB but were very small due to the amount of transactions present in the mempool. That’s like saying my 100 mL cup that is half filled is actually a 50 mL cup because only half of it is being used. It’s still a 100 mL cup. And this is important because it proves that bigger blocks as a scaling solution has not been empirically tested. Which is why an “altcoin with a smaller market cap is being used to test new features”; it’s called Bitcoin Cash. Another point that was not talked about during the interview is how bigger blocks cause greater miner centralization, the most critical flaw of the bigger blocks approach. With ASIC’s and ASIC Boost, it has become incredibly difficult for any individual to start mining Bitcoin for a profit. A large upfront investment into specialized mining hardware is required in order to generate a profit. This means that mining or the process of validating transactions is becoming more and more reserved to wealthy individuals. And this is apparently, arguably bad; at least Roger Ver seems to be ok with varying degrees of centralization. Except the whole point of crypto currencies is that no individual or no individual group should be able to control the network for their own self interest; we have fiat currency for that. So then when increasing the block size, yes more transactions are able to be processed in one block which does reduce fees and settling times except that bigger blocks are harder to mine, pushing the mining process further into centralization. It’s also a temporary solution because with the growing number of Bitcoin users, a bigger block size limit will be reached requiring another hard fork to increase the block size limit. This is like adding lanes to a highway because too many drivers are present on the road; it’s a bandaid solution that avoids the root of the problem. This interview is important because between the well-rehearsed lines and the pressing questions, within his off-script bouts of rage, the true Roger Ver shines bright. Roger Ver talks about Bitcoin as if it’s a company. He criticizes the Core development team because since their arrival into the space, he claims that the market cap of Bitcoin has been “bleeding out” and that it’s losing its market share to altcoins, pointing to its drop in market dominance as proof. He might be right, or perhaps more and more people are looking at the wealth of early Bitcoin adopters and are trying to get rich from altcoins that could see similar growth. Or maybe it’s because altcoins aren’t direct competitors to Bitcoin and are using blockchain to solve real world problems and people are seeing their value. Regardless, he also argues that not anybody is able to contribute code to Bitcoin. And all of this is a twisted version of reality that pushes his agenda. Anybody today can write code for Bitcoin, and through community consensus can have it implemented. Roger Ver did not have the opportunity to defend his claim during the interview, but I think it’s apparent that because block size increases have been repeatedly shut down by the community, he claims that nobody outside Core can contribute code to Bitcoin. That’s just not true. Segwit, a Bitcoin feature added through node consensus, is allowing for the lightning network, a layer 2 scaling solution, to be independently developed by passionate members of the Bitcoin community. The very idea of a BIP (Bitcoin Improvement Proposal) was proposed and implemented by a community member. Roger Ver also often refers to permissions on the GitHub repository as “the keys” as if any one person can own the network like a house. This is false. The reason why the core developers code is widely accepted is because the community supports the work they’re doing. Roger Ver says it himself: he believes we need to let the market decide what coin is the true Bitcoin. Except that it already has. If people wanted bigger blocks, Bitcoin Cash would be called Bitcoin. It is also worth noting that the market has decided multiple times that it does not want to increase the block size as other Bitcoin forks that Roger Ver has supported in the past, namely Bitcoin Classic and Bitcoin Unlimited, have failed. Roger Ver claims that people who call Bitcoin Cash, Bcash have been brainwashed by its opponents. He believes that Segwit is adopted by brainwashed individuals. As if nobody in the Bitcoin community can think for themselves; we’re all just sheep waiting for a shepherd like Roger Ver to tell us what’s right. Except that by purposefully misleading newcomers to the crypto space by calling his website that supports Bitcoin Cash, bitcoin.com, by misleading the newcomers by not clearly explaining the differences between Bitcoin Cash and Bitcoin on the wallet app his website sponsors and by also calling Bitcoin, Bitcoin Core or Bitcoin Segwit, he’t not only being a hypocrite for criticizing Carvahlo for name calling, he’s also issuing his own brand of brainwashing instead of letting new users decide for themselves which coin is the real Bitcoin. If his claims that Core and Core supporters are brainwashing people were true, Roger Ver would be just as guilty of doing this. A final point I would like to make is how both camps view Bitcoin philosophically. The Bitcoin supporters mostly view Bitcoin as a store of value while Bitcoin Cashers view Bitcoin as a peer-to-peer digital cash. And I want to point out that Bitcoin fails tremendously in its current state at being a dollar killer, a digital cash. Bitcoin as a store of value has succeeded tremendously. People all over the world are using Bitcoin to have value traverse borders with ease, to send value to loved ones without going through Western Union or as an investment vehicle. In that sense, Bitcoin is truly like digital gold. As a currency, it has seen some success in terms of adoption. Many merchants accept Bitcoin as a form of payment. You can even buy airline tickets with Baltic Airlines via Bitcoin. But, in my opinion, neither Bitcoin nor Bitcoin Cash could today successfully replace fiat currency. If today either coin were adopted globally, both coins in their current state would face tremendous scaling issues, causing insanely high transaction fees and slow confirmation times. The lightning network is showing more promise than bigger blocks as it doesn’t push miner centralization, it actually decreases the amount of transactions on chain but it has yet to be seen if this solution will work. Without scaling as an issue, both coins also suffer from a deflationary problem, which many economists argue disqualifies most crypto currencies as a good fiat replacement. That however, is a different topic. The scaling debate should not be a debate anymore. The community has been offered a currency with larger blocks, lower fees and faster settling times, time and time again. It had Bitcoin Classic, Bitcoin Unlimited, Bitcoin Cash and Segwit 2X to decide and the answer has been an astounding no. If users truly desired a coin that fit this description, Litecoin would lead the crypto currency market, or any other crypto currency like it. But the fact is Bitcoin in its flawed state leads the pack and nobody today uses Bitcoin as a digital cash as Satoshi Nakamoto intended. Just like nobody avoids eating shrimp and other crustaceans because the Bible said it was a great sin. I believe the topic on crypto forums should no longer be scaling as Segwit is being adopted through consensus and the Lightning Network is imminent. If it fails to scale Bitcoin, then we’ll go back to the drawing board. I think the true debate should be whether the community wants Bitcoin to truly be a replacement for fiat currencies or if it should remain a store of value like gold. Either way, this interview gives the crypto community a glimpse at the real Roger Ver, a used-car-salesmen type who rehearses his lines and changes definitions to paint his cause in the proper light. A guy who is ok with Bitcoin becoming centralized. A guy who likes to flash his cash and likes to belittle others for making less money than him and for operating legitimate businesses within the sex industry. A guy who disagrees with the decisions the Bitcoin community has made over the years so instead of creating his own currency and leaving the Bitcoin brand alone, he constantly pushes a skewed narrative of Core and Bitcoin and how it’s flawed. How Bitcoin Cash is the true Bitcoin. He acts like a paternal figure, knowing what’s best for the community despite it’s previous choices and loses his temper when it’s evident he doesn’t have control; like an abusive lover. If his intentions were honest, why would he try to steal the Bitcoin brand? Why would he try to tarnish the name of the thing that gave him a large part of his wealth in the first place? Personally, it seems to me like he’s that kid at the playground, the one that nobody wanted to play games by his rules. Instead of finding someone else to play with, he tries to manipulate others, takes fits when he doesn’t get his way and ultimately decides for everyone that if he can’t have his way, then nobody should.
Why Garlicoin is the Best Cryptocurrency: A Research Paper
https://pastebin.com/k47N0YGz On December 25th, 2017, Reddit user DigitalizedOrange made history. He made a post titled, “If this post gets 30,000 upvotes, I will make a garlic bread cryptocurrency called garlicoin” and quickly surpassed it by about 16,000 upvotes. He and his team assembled and got to work. On January 21st, 2018, at 2PM EST, Garlicoin released. Garlicoin soon became an extremely promising coin in the market due to committed team, not to mention the community that surrounds Garlicoin. One of the main reasons Garlicoin (GRLC) is the best cryptocurrency is its ability to welcome new people. Garlicoin is ASIC resistant, which means that it has a low-entry barrier to new members. Anyone can mine it and turn a profit. The welcoming community is another large reason that Garlicoin is superior. The subreddit /Garlicoin is friendly to newcomers and will offer advice and mining help to those who need it. /GarlicMarket, the 2nd subreddit based around Garlicoin, allows its users to create posts telling the community what they are willing to trade in exchange for Garlicoin or buying goods or services with the cryptocurrency. The official website for Garlicoin (garlicoin.io) just may be the most beginner friendly aspect of Garlicoin. Garlicoin.io guides people through the process of mining, setting up a wallet, and more. Garlicoin’s fundamentals on which it was based upon is a leg up compared to other cryptocurrencies. Garlicoin’s block times are 40 seconds long, Bitcoin’s block time is 10 minutes long, sluggish compared to Garlicoin. Garlicoin also has cheap and fast transactions. Sending Garlicoin takes just a few confirmations which is about 2 minutes while sending Bitcoin takes around 15x longer, at 30 minutes. The dev team also puts the community before the coin. They make sure that everyone supporting Garlicoin is happy with the way to coin is going and even went as far as setting up a website giving away free Garlicoin, which soon failed due to the sheer amount of people that wanted in on the coin. Not letting failure get the best of them, the giveaway still went on at a later date. Garlicoin is open source, so you know just what is happening behind the scenes. This allows for full transparency over the project and an extra layer of safety. Another coin could come along and if it wasn’t open source, who knows what they could be doing your hardware? Because it is open source, you are easily able to dive into the work of the developers and learn about more about cryptocurrency. Garlicoin is also extremely secure. The blockchain technology it uses makes it nearly impossible to run a brute-force attack with the level of wallet encryption. Not to mention the often looked-over aspect of security, vampire-proofing. It currently is unknown how many vampires have a holding in Bitcoin, Ethereum, or other cryptocurrencies. With Garlicoin, there are no vampires. The vampire sympathizers may think that not having vampires is a bad thing, but a proven 99.99% of vampire sympathizers are vampires in disguise. Many sympathizer accounts have been under names such as “Human Smith”, “Blood Bag”, and “Not A Vampire”. What vampire wants a crypto named after garlic? That’s like a human wanting a crypto named after malaria. Garlicoin is named after garlic bread, who wouldn’t want that? Garlic bread is the reason people wake up in the morning, the reason they are motivated, the reason people live. Who knows how cruel this world would be without the crispy, buttery goodness that is garlic bread. Let’s be realistic for a second, Garlicoin has great potential. By 2023, Garlicoin will be used as worldwide currency. Near-instant transactions with a crypto that will be used everywhere. It’s only a matter of time until the coin moons, so hop on the train while it’s still low. Garlicoin has a limited supply of 69 (nice) million, if everyone on Earth has equal GRLC, then everyone gets 0.008625 GRLC. With such high demand and low supply, it is estimated that 1 Garlicoin will be worth $420,690. If you stock up on Garlicoin right now, at $1.40, the coin will increase by a rise of 30049185.71% in just a few years. You’d be either a fool or a vampire to not sell everything you have, cash out all other cryptos and stocks, and invest all of your life savings into Garlicoin. The last point that proves Garlicoin’s superiority is the fact that you can get some right now. You can easily mine on your GPU, CPU, mother’s car, and just about everything else. You’ll probably have a bit of fun too, because you’ll be earning hella cash and supporting the world’s best food. You can easily gain Garlic even if you don’t have anything. Head over to /GarlicMarket and tell them that you’ll do some wacky thing for Garlic. They’ll probably give it to you. I wrote this whole thing for 2 GRLC, I drew a dinosaur made entirely out of penises for a Garlic. Someday it might be worth hundreds, it might not be worth anything. It’ll probably be millions if we’re being realistic. I sincerely hope that you will or are in possession of Garlicoin. It will benefit you, puppies, and society. There is no downside to the coin of the gods. Buy some. Buy some or else I won’t be able to feed my kids. I get paid in Garlicoin and if people don’t buy, the price goes down. My boss pays me in only Garlicoin due to my fear of bank tellers. One time I walked into a bank and I was shooed away like the filth I am. That was the first and last time I step foot in a bank. I don’t know what I’ll do if Garlicoin crashes. I won’t have anything. I was talking about me when I said that people wake up in the morning only for garlic bread. I’ll die. Buy Garlic. Tl;Dr: Buy it Donate some Garlic to me if you want. You do you. I’ll leave this here though: GYiH5vpEcYWttXFZvBBDbmujKwqF79CjCx I’ll take anything, here’s RaiBlocks/Nano address: xrb_34pmustseb4dbbqecmhgokfpyyomfot6kz7bs7rh14o5w7he781m6k1gx1th I guess I’ll take Litecoin if you really want to: LaziAfvCrWFadpqbz7pjuyhZvgVVTKa7gG If you’re still reading you know how desperate I am, Ethereum: 0x5d865501355360FfB1e1d8fE48E5E3C133Ad30E2 Ok, I feel like I’m plugging my addresses too much, I’ll stop. (Bitcoin: 1M6thYf6gDxBwVuaZKm62QYvQh3aqvoTcn)
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 recommendBitcoin 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!
Dash In 2018: Disappointments, Boondoggles, Scandals, Disasters, & Catastrophes
[This post was censored in the the paidshill Dash pumping sub, where actual discussion beyond "2018 kind of sucked for Dash" is not allowed, and then re-posted here.]
Disappointments In 2018, Dash failed to be listed on Coinbase while ETC and many other coins were, due to Dash's notorious Instamine, centralized development, and murky Howey Test/SEC Action status. In 2018, Dash failed be included in the OpenBazaar project, while Monero and several other alts were added. In 2018, efforts to hype Dash's supposedly impressive 2mb block-based tx/sec rate were crushed and humiliated when DCG's creaky old client hit a crippling software limitation around the same time as BCH and BSV were chewing through 32 and 64 megabyte blocks. In 2018, Dash's former anti-segwit hero Craig Wright learned new facts about law and concluded Dash is an illegal security, saying so loudly in tweets backed by citations. In 2018, Wirex and other debit card providers supported Bitcoin and many alts, but not Dash, despite a year of Shrem 2.0 shill talk about integrations 'soon'. In 2018, Dash Core used Uphold for the "Acquire Dash" part of their Kript mobile plan, but Uphold doesn't work in Venezuela , so that pillar of their strategy was broken. Boondoggles In 2018, the FanDuel fiasco wasted a fortune in cash and goodwill, leaving Dash's target market of online gambling to Calvin Ayre's BSV and Roger Ver's BCH blockchains. In 2018, the DACH Embassy fiasco wasted a fortune in cash and goodwill, as nobody ever really cared about Macrocuck/Simon/Basilpop/Ezra/Fabio running around desperately trying to look busy enough to justify their ridiculous burn rate and poor results. In 2018, the CoPay fiasco wasted a fortune in cash and goodwill as users and devs suffered an ambush from DCG, leaving the formerly hyped "backbone of Evolution" project instantly retired to abandonware status. In 2018, the Alt36 train-wreck-in-progress slowly lurched towards its imminent conclusion of causing more toxic FUD and wasting a fortune in cash and goodwill with zero deliverables to show for it. Scandals In 2018, fake "Venezuela adoption" news resulted in massive public humiliation as Twitter, cc, and Russia Today (ironically, the home of Dash paidshill Max Keiser) debunked hype that only amounted to useless stickers on greasy cash registers. In 2018, Evan and Amanda were missing in action, despite Evan's previous promises to develop hardware and support the ecosystem with his vast, intentionally insta-mined fortune. In 2018, Dash paid to hold a Bitcoin networking event at a Miami strip club, offending so many people (it was a 2nd offence for Dash with strippers at TNABC) the scandal was reported worldwide by Bloomberg, Fortue, Business Insider, etc. In 2018, knowledge of Dash's instamine became widespread throughout the entire crypto universe and the intentional nature of Evan's faked "bug" excuse became a subject of investigation. In 2018, Dash cargo cultists reduced themselves to shilling the dwindling number of cherry-picked metrics by which Dash was not failing utterly, such as the absurd "FairCoinValue" and fallacious/irrelevant "ATH Masternode Count" hype. In 2018, the KuvaCash fiasco turned toxic (wasting a fortune in cash and goodwill) resulting in a kDAO splinter group of venture capitalist MNOs and creating massive Howey Test implications. Disasters In 2018, a KuvaNation vs. DACH Force News civil war inflicted mass casualties, leaving a permanent split of the "DGBB" community into non-cooperative Team Tao and Team Joel factions fighting over a shrinking Treasury budget like starving rats. In 2018, malicious MNOs trolled Dash at the protocol level and on DashCentral, causing chaos at the very end of voting cycles, thus showing the entire world Dash is not resistant to Sybil attack after all. In 2018, Dash Clown Group Inc failed to live up to its own self-imposed "Agile Development" goals so many times they published one sketchy, final "DRAFT" roadmap, and then quietly abandoned entirely the idea of actually trying to meet deadlines (despite the dash.org page still advertising a Q4 2018 Alpha release). Catastrophes In 2018, a single mining pool controlled enough hashpower to prevent a timely upgrade, demonstrating that Dash's PoW is not sufficiently decentralized (due to Bitmain's monopoly on Dash ASICs). In 2018, www.crypto51.app showed the world Dash is >90% NiceHash-able and thus may be 51% attacked easily and cheaply (<1 BTC per hour), causing Poloniex and other exchanges to require 50 confirmations (rather than using InsantSend). In 2018, the failures of Dash's X11-based PoW security model and resulting threat of attacks caused Dash to abandon Nakamoto Consensus for a wonky, untested, homespun version of checkpoints (conceding defeat and offering an unconditional "pre-consensus" surrender before an attack even happened). In 2018, Evolution was not here by NYE (not even an alpha version of a testnet). In 2018, no amount of brave ThisIsFine talk about buying dips could change the fact that Dash Core Group Inc had to radically downsize due to their customary $935k/month funding being completely unsupportable. Analysis Never mind the price drop, even though Dash suffered worse than most of its Top 20 peers and fell in rank from #3 all the way down to #16. Let's ignore the fact Dash is marketed to investors with the 'Masternode' feature advertised as supposedly stabilizing the price. Let's also ignore the fact that in 2018 Dash's supposed Sybil-resistance was shown to be inadequate, as blockchain analysis revealed dozens of Masternodes trolling at the protocol level by voting no on all but the infamous DEMOTE RYAN TAYLOR proposal. Evolution was, after years of delays, complete from-scratch reboots, and blown goals, given one final self-imposed deadline to meet. Dash's Queen, Amanda of the Used Car Lot, declared she was going have to rethink her position regarding Duff's Instamined Masternode tokens if that deadline wasn't met. That deadline was midnight Dec 31, 2018. Now it's the first morning of 2019 and Evolution is nowhere to be seen. Even worse, Dash Clown Inc is once again making negative progress towards their goals of shipping a test-net version of v13 worth of the term "Release Candidate." Dash Clown Inc burned through ten (10) un-releasable (because broken) so-called Release Candidates. Finally the clueless clowns (running around like headless chickens since Andy Freer was fired or rage-quit) gave up on the entire v13 RC branch and went back to tinkering with v12. No updates to the crucial LLMQ repo have been made since November, when the price drop crushed DCG's budget and Andy suddenly left Evolution to die on the operating table. Dash in 2018 through the eyes of Reddit's most popular crypto sub January 2018
Most controversial comment: "I dont see how people dont get it. If you cant pay for food, you would invest what little you have into something as risky as crypto ? It is easy to judge from our POV but In reality, most would rather feed their familiy then look for ways to invest in some startup." Conclusion The Top Three Dash-related posts at cryptocurrency are a microcosm of Dash's start-to-finish miserable, horrible, terrible year of self-inflicted blunders, money pits, and epoch-ending cataclysms cumulating in the resolution of the Dash experiment and disproving Evan's "Dash is Digital Cash" hypothesis.
Mining Bitcoin - The Coming Environmental Subsidy. Mining Bitcoin incentives one to stake hardware and electricity in return for digital assets, which have or can have a market price that exceeds the cost of the electricity staked. Bitcoin is an uncorrelated hedge against the world economy, it’s programmable scarcity, not perceived scarcity, and is perhaps the hardest money the world has ever seen. Coming and developing second layer protocols for Bitcoin will execute transactions at the speed of light, and for virtually no cost. In time a decentralized economy will become our new reality, and networks will be owned by their users. There will be lighter weight consensus algorithms for most networks, but Proof Of Work, and in turn Bitcoin, will be the internets reserve currency, and what we peg the value of all decentralized networks to in the coming “Web 3” world. Bitcoin is here to stay, and Bitcoin mining presents a new opportunity in renewable energy. Today, miners are moving as fast as they can to scale, lower their power cost, and decrease counter party risk. We are seeing a trend with miners setting up modular data centres behind the meter, tucked up to power plants that are located in areas where capacity is not in line with local demand, so miners become an obvious choice to churn through the surplus capacity of these plants. The issue here as it pertains to “environmental concern” is that miners cannot enter into energy purchase agreements (EPA’s) with plants that produce renewable power intermittently. So the result, we have mining farms finding blocks with coal or gas. Operators setting up such mining infrastructure often cite opportunity cost, which is definitely understandable, but irrespective of environmental hazard, the opportunity & economics of mining with fossil fuels will be short lived. Additionally these fossil fuel miners are beginning to face major counter party risk. Buying power to mine from major corporations, public utilities, or governments is convoluted and risky. Even one day without access to electricity can affect the bottom line, miners must begin thinking about energy independence. In the next 5 years setting up or sustaining a fossil fuel farm will be akin to thinking its a good idea to open and run a blockbuster video. There are two major changes happening now in mining, and these changes will be the principal underwriters of Bitcoins coming “Environmental Subsidy”.
Cost reductions in renewables & storage.
The decentralization of mining.
In 2009 the global average cost to produce a Mwh of Solar was $350, in 2018 it was $50. The global average for coal production in 2018 was $100 per Mwh. Couple the declining cost bases for renewables with supportive policy and subsidies, and from a more macro POV its obvious where were going in terms of the type of energy that will be flowing into the grid. Although the sun doesn’t always shine and the wind doesn’t always blow, but there is a trend that is mitigating that - declining costs in storage. Today the average cost to the consumer of lithium ion storage is dropping rapidly, and multiple sources point to a cost base of $100 per Mwh or lower by 2025. In that not too distant future it is reasonable to speculate that we will see non grid tied mining ops running 24/7 - 365, whilst capturing and storing a surplus & finding blocks with their batteries. Bitcoin mining is ironically centralized. Although with closer observation, we can see that mining centralization is the result of an expeditious technology adoption curve. In approximately 4-5 years miners went from CPUs, to GPUs, FPGAs, and now of course ASIC’s. These changes each represented more than 10,000X improvements, which meant that miners were completely writing down their hardware within 4-6 months. So to mine at scale in the earlier years, you basically needed direct access to a chip factory and massive capital. It made more sense for a hardware manufacturers to run their own hardware than to sell it, and in turn mining became centralized. Although were now close to the top of the hardware improvement curve, and will perhaps see improvements of 2X every 2 or 3 years going forward. So, with that being said, hardware manufactures have it in their best interest to sell their rigs, being that they no longer have the “chip advantage”. The plateau of mining hardware innovation marks the advent of mining decentralization. In the coming years allocating some or all electricity generated at the point of production to mine Bitcoin, will allow one to amortize an investment in renewables sooner than if the power was sold into the grid. Bitcoin will become the reserve currency of the internet and as such de-risk the capital deployed in renewables when operators of renewable energy assets allocate some or all of their power to secure the Bitcoin blockchain. Electricity production will also become more decentralized as localized production and mini grids become complimentary to larger legacy points of production, which will in turn support the decentralization of mining. Our future energy needs will be met using renewables, and the same renewable power that heats our homes and charges our cars, will underpin the Bitcoin blockchain and the internet of money.
Overview - Table of Contents Introduction to Earning in Bitcoin Work for Bitcoin Sell for Bitcoin Affiliate Programs Gambling Bitcoin Mining Hardware Mining Cloud Mining Introduction to Earning in Bitcoin Bitcoin is the most popular digital currency in the world today. Bitcoin cloud mining is the fastest way to immediately begin earning bitcoins. Bitcoin is built using very complicated cryptographic principles, and supported by countless individuals and companies from all around the world. By early 2016, total Bitcoin market capitalization had crossed USD 7 Billion, making it almost as valuable as the GDP of a small country like Bahamas. All the other digital currencies together do not constitute even 20% of Bitcoin’s market capitalization, underlining the its dominance and importance in the world of digital currencies. With such a huge amount of world’s capital available in the form of Bitcoins, the number and types of opportunities to earn in bitcoins are increasing by the day. In this article we will discuss such opportunities that help us earn bitcoins. We will start with the easiest, or the one that is applicable for the maximum number of people, and then move to the tougher ones. In the end we will cover earning bitcoins by mining. Bitcoin mining is not an easy way to earn bitcoins, but we do have a number of easier ones we will discuss first. So lets start with ‘earning bitcoins by offering your services’ Work for Bitcoin Perhaps the easiest way to earn bitcoins is to work online or in real life for bitcoins. Because of the huge size of the bitcoin eco-system, a number of such opportunities and jobs are available. With Billions of dollars invested in Bitcoin by tens of thousands of people, there is a real market in Bitcoin, where you can find jobs for freelancers, software developers, writers, and others who get paid in bitcoins for their services. Software development, writing, design, making websites or apps, audio transcription, are some of the most active types of jobs. You can easily discover the types of jobs by going over the more popular job boards for bitcoin related work. The following job boards or forums are some of the best places to look for such jobs or gigs. Freelancing XBTfreelancer Cryptogrind Bitlancerr Coinality Bitgigs Jobs4Bitcoins Rein Project Crypto Jobs List Market Places OpenBazaar Purse.io Bitify /bitmarket 21 Market Video Streaming Watchmybit Streamium.io Tasks Bitasker BitforTip WillPayCoin File/Image Sharing Supload.com SatoshiBox JoyStream Advertising CoinAd A-ads Coinzilla.io Also, check BitcoinGames for ideas on earning bitcoin and blockchain game assets. Sell for bitcoin You can also get Bitcoin by selling your old laptops, phones or other items for Bitcoins. Such types of transactions are happening more and more, and a lot of buyers are already buying anything from iPhones to even cars by paying with Bitcoins. For Americans, Craigslist.com is your best bet when you want to find such buyers. You can mention in your ad that you are willing to take payment in Bitcoin. This way if anyone wants to buy the item for you for Bitcoin, they can contact you and make an offer. The same principle applies to other online marketplaces such as gumtree for UK, kijiji for canda etc. Affiliate Programs Affiliate programs allow a promoter of a business or product to earn money or bitcoins by refering new clients to such businesses or products. For example, amazon.com has a popular affiliate program, where you can earn commission ranging from 2% to 20% for refering clients to products listed on amazon.com. Amazon normally pays in dollars, but there are a number of other sites and businesses which pay you in bitcoin for acting as their affiliate. Some of the more popular affiliate programs that pay out in Bitcoin are by the sites: cex.io, coinbase.com, okcoin.com and namecheap.com, among others. You can find a larger list of such affiliate programs on the bitcoin wiki page for Affiliates. Gambling We do not recommend gambling for every player or every user; we find that gambling is only suitable for people who know how to win at it. However, if you are one of such lucky users who have some tricks up their sleeves, and can manage to win at games such as poker, then you will find that earning bitcoins is not that hard. One of the many applications of bitcoin since the very beginning have been in betting games or gambling. Because of the relative anonymity of bitcoin, and the lower fees, it is very suitable for gambling related applications. Indeed, one such game, satoshiDICE, has been running since 2012, and has paid out a huge number of bitcoins in innumerable transactions to its winners. There are many such games, which you can find be googling. If you want to gamble totally anonymously, you can play gambling or betting games that are available only on darknet or .onion sites. Such sites allow you to browse them anonymous by operating on the tor network, which is a secure network that allows users to browse .onion websites without exposing their own IP address. Bitcoin Mining For each block that is added to the Bitcoin Blockchain, a number of bitcoins are rewarded to the creater of that block. This reward is currently, as of June 2016, 25 bitcoins per block, and it halves every four years. The next halving will be in July 2016. Creating or finding the new blocks, and therefore winning the reward of 25 bitcoins for each block you create, is called bitcoin mining. To do bitcoin mining successfully, you need very powerful computers, which compete with other computers to find the next block. The speed or power of computer that do bitcoin mining is calculated in hashes calculated per second. There are two ways to do bitcoin mining: one is to own hardware or computers that do the mining, and second is to hire the hardware from a third party, usually online, and do the mining on the cloud. Let us discuss the advantages and disadvantages of both in next two sections. Hardware Mining When you own the hardware that does the calculations and mining of bitcoins, its called hardware mining. Hardware mining is the more popular or prevalent of the two types of mining we mentioned. One of the biggest factors which comes into play when doing bitcoin mining using your own hardware is the price of electricity. If you pay top price for electricity, then bitcoin mining may not be your cup of tea. Another related factor is infrastructure needed to cool the hardware; since every cpu generates some amount of heat, you may need to cool the hardware in case they become too heated. No wonder that some of the most successful miners work from China, specially Tibet, where they can get cheap electricity, and their cooling costs are low due to high altitude which reduces the ambient temperature for them. For a more in-depth information on how to setup your hardware mining equipment, have a look at the Antminer setup page. Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are: AntMiner S7 AntMiner S7 Bitcoin Miner 4.73 Th/s 0.25 W/Gh 8.8 pounds Yes $479.95 AntMiner S7 Bitcoin Miner 0.1645 AntMiner S9 AntMiner S9 Bitcoin Miner 13.5 Th/s 0.098 W/Gh 8.1 pounds Yes $1,987.95 AntMiner S9 Bitcoin Miner 0.3603 Avalon6 Avalon6 Bitcoin Miner 3.5 Th/s 0.29 W/Gh 9.5 pounds No $499.95 Avalon6 Bitcoin Miner 0.1232 Cloud Mining There are a number of service providers that allow you to rent computational hardware from them, which can then be used to do bitcon mining. Some of these services are designed with bitcoin mining in mind, whereas others such as Amazon AWS are general purpose services that can also be used to do bitcoin mining. Some of the cloud mining services which can be used to do bitcoin mining on the cloud are: Hashflare Review: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s. Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available. Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible. Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more. Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin. Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200. Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out. NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices. Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months. MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s. Written by Bitcoin Mining on May 4, 2016.
Ian had started mining bitcoins with all his friends in high school, as a hobby. He had researched the concept and realized it would be a fun thing to get involved in. His interest in it had been perked by his econ professor, when they discussed the pro's and con's of different types of currencies / payment methods in history. With his after school job stocking shelves he had saved up a bit of money and all he had to do was convince his parents the extra electricity him and his friends would be using of theirs, with the computers running in the basement. To save on costs, he wanted to keep the computers as cool as possible, using as much "passive" cooling as he could get away with. At dinner he spoke to his father, Ted, who like most parents, not only didn't understand what he was talking about, but claimed it was illegal on some level. "You can't just make money from thin air! The answer is no". Begrudgingly Ian went to his room and logged on to his and his friends favorite IRC server to let them know of the answer. Luckily Ian's bestfriend, Sara, had gotten the go ahead from her parents, who were thrilled she was interested in computers. They knew that any employment opportunities in the future their daughter would chase, would involve a strong grasp of current computing technologies. Unlike Ian's dad, Sara's parents had asked her how Bitcoin mining worked, and after she had explained it, her parents realized their daughter and friends weren't going to be actually printing money from thin air, but employing hardware and software to work for it. And electricity. They all agreed to meet tomorrow to plan it. They met at lunch, outside, and sketched out the amount of money they'd need to spend in the start, as well as a monthly amount of cash they'd give to Sara to offset the cost of the electricity. They all were pretty amped about it, other then Ian. Ian returned home and decided that he'd do some mining on his own, regardless of what his father had said. He'd just sacrifice his own rooms electric power, so his father wouldn't ever notice it. This meant no more Xbox, no more air conditioning, and no more mini fridge. He built a small space in his closet, that had a hole for an air duct into the attic. With proper airflow achieved he began the process of transferring all his files from his desktop to his netbook. He had enough money for more graphics cards, but not an entire separate machine. He maxed out his computer with 4 HD 5830's after some research on cost/MHash, installed Ubuntu on the computer, started up cgminer on it, and configured the machine to mine with a few pools. He had them send bitcoins to a wallet he had made, in a truecrypt volume. Feeling pretty excited about it, he turned off his AC, and tried to fall asleep in the summer night. Weeks and months and then a few years passed by, with some of Ian's time being spent at Sara's basement with the rest of the group, building their mining rigs, powering them on, configuring their mining pool, and making sure everything was running properly. One of Ian's friends dad was an engineer, and they had been able to borrow an infrared thermometer gun to double check the temperatures of the cards. Things were going real well. And when things are going well, something bad is bound to happen. Ian began feeling more and more tired each morning. At first he thought it was because he was sleeping without the AC on, so he tried sleeping on the couch in the living room. Things only continued to get worst. Ian's mother took him to a doctor that accepted their health insurance, and after waiting a few weeks for blood tests, it turned out Ian had to have an MRI to verify a few things. The doctors soon saw the cause of his problems, which was a brain tumor that was causing elevated pressure in his head. Ian and his family went home to discuss what they would do, and how they'd pay for it. While Ian's parents figured out a way to pay for surgery, they heard a crash come from the staircase. Ian had feinted on his way up to his room. As they carried him to the car all they heard him mutter was "bitcoins". Figuring it was due to him feinting they rushed him to the emergency room at the local hospital, where Ian was put in to a chemically induced coma, to prevent any brain damage. Ian's friends came to visit him, but they visited less and less each week. One day, with only Ian's parents and Sara in the hospital room, the father mentioned to Sara the last thing Ian had said to him was something about bitcoin's, and he then told her about the fight he had had with Ian the year before. She smiled and told him about how they had ended up doing it at her basement, explaining what it was, and how most of their coins they had spent on pizza. She told him that the price of a bitcoin was rising, in U.S. dollars. The father smiled, realizing that his son may have been right all along, about the importance of a decentralized currency, and after Sara's explanation, it truly wasn't printing money from thin air. There was nothing illegal about it. A $20 dollar bill wasn't illegal because it could be used to buy drugs, so why should a bitcoin be illegal? Later that night, Ian's father was going over the family bills that seemed to keep stacking up, trying to figure out how to pay for Ian's surgery, when he saw the electric bill was much higher then usual. He had recently turned the AC on in Ian's room, and plugged his mini-fridge in after stocking it with his favorite soda's, in anticipation of the day his son would come home. He went up to Ian's room and heard a whirring noise coming from Ian's closet. Behind a stack of comic books and shoe boxes he found Ian's desktop. "What was it doing back here?" He decided to give Sara a call, though it was late, she lived across the street so it wouldn't be a problem. He showed her what he had found, and after some clicking and typing, she hugged him and screamed for joy. Confused he asked her what was she so happy about. She showed him Ian's Bitcoin wallet, which was still mounted, and explained that Ian had been mining privately Bitcoins for awhile now. His Bitcoin wallet showed 1803.78004 BTC. Before Ian's father could ask why this was good news, Sara showed him the current rate of a bitcoin on mtgox, and after some calculations, Ian's father realized enough money existed to pay for Ian's surgery! Sara spent the rest of the night setting up accounts on various BTC exchanges, transferring funds, and then trading bitcoins for U.S. dollars. The next day was spent going from bank to bank, to pick up wire transfers, and then it was time for Ian's surgery. When Ian recovered from the surgery, Sara explained to him what had happened, while Ian's father and mother held his hands. Ian's dad apologized and told him he'd support his bitcoin hobby. Sara interjected and caught Ian up on how GPU mining was soon being replaced with ASIC mining. Ian looked up at his father and casually mentioned "Well... my birthday is coming up..." |Just something that came to me on my bus ride this morning
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