1 mb equals bitstamp
Considered the voice of reason in the industry. Unique space focused on new technologies, decentralization and parallel structures building. Organizes annual Hackers Congress and many other talks about cryptocurrencies, decentralized economics and stateless society.
Accepts payments in Bitcoin and Litecoin only. Based in Prague, Czech Republic in and growing worldwide coming next to - Bratislava, Slovakia in How is security and reliability achieved in a decentralized peer-to-peer network with no authority central server overlooking it to make sure everything works as intended? They form nodes in the network that confirm and validate every transaction to prevent double-spending. Every validated transaction is then recorded in a public ledger which contains every move of every satoshi since the first transaction was made; the ledger is called a blockchain.
The currency is not based on trust, as the classic banking system, but instead relies on math and hard data. Every bitcoin is divisible down to 8 decimal places, the smallest unit is called "satoshi" - according to the name of the Bitcoin creator.
Blockchain relies heavily on cryptography and the theoretical groundwork for its existence was laid in by Bayer, Haber and Stornetta, before Satoshi turned it into reality in Blockchain consists of timestamped blocks that include the transaction data and a hash encrypted pointer that links them to the previous block.
Besides its use in Bitcoin and other cryptocurrencies, the blockchain is a revolutionary piece of technology that could be used to record any important events, data, documents or transactions. Major banks and financial institutions are already experimenting with the blockchain technology. Many experts consider it the biggest invention since the Internet.
Cryptocurrencies younger than Bitcoin, such as Ethereum, have started using the blockchain to automatically execute smart contracts, pay for invoices, etc.
The advanced use of the blockchain technology is sometimes called Blockchain 2. Since the blockchain is spread across the whole network and not centrally stored in one place it cannot be attacked, altered or deleted; it is an ideal database for digital voting, copyright protection, digital identity storage, birth, citizenship and ownership certificates and more.
Further and wider use of the blockchain technology is expected. In order to trade or even own Bitcoins, users need to create a wallet for the Bitcoin currency.
The wallet works with two keys. The public key serves as the address to which other users can send Bitcoins. As was mentioned before, every transaction is permanently stored in the blockchain and can be tracked - with details of how many Bitcoins were transferred and between which addresses - public keys. The private key on the other hand, is kept secret and used for signing transactions.
The private key signature serves as a mathematical proof that the transaction originated from the correct source your wallet and can be processed and added to the blockchain. Signature with the private key also makes sure nobody else can alter the transaction details as the transaction spreads across the peer-to-peer network making its way to the blockchain.
As every transaction is broadcasted to all nodes Bitcoin users , each node collects new transactions and tries to put them into a block. The node runs a difficult mathematical operation over the transactions using the SHA hash functions to validate the transactions and create a block with a proof-of-work.
It is easy for other nodes to verify the proof-of-work, but extremely time-consuming to generate one. To motivate users to keep creating blocks and thus verifying all transactions in the network the node that creates the block is rewarded with a certain amount of Bitcoins.
As of July , the reward equals The number is halved after every , blocks - this happens approximately every 4 years, as a new block is created every 10 minutes. The mining analogy refers to the Gold Rush. With no central authority to issue them, Bitcoins are mined from a given amount of 21 million Bitcoins. Once all those are mined roughly in , the creation of new blocks will be rewarded solely by transaction fees.
Transaction fees are currently optional and used only to speed the verification of a transaction. The establishing whitepaper for Bitcoin is an eight pages long document conceived by the currency founder s , which explains how the digital currency works in all its aspects. How transactions are time-stamped and verified, how the network works together and is collectively aware of all transactions stored in the blockchain. There are also calculations of the probability of an attacker manipulating a transaction.
It can be used to pay for goods, even physical products. Map of merchants accepting Bitcoin you can add yourself: Technically speaking, the way Bitcoin was devised and designed stood the test of time since its introduction in The only technical mistake was the expectation of the blockchain growing by 4. This would allow them to be able to manipulate new transactions and perform double-spending. However, the algorithm stands strong for now and can be changed for a more robust one in the future.
This created an incentive for gold to be smuggled into India, to avoid paying the high duties and to reap greater profits. About tonnes of gold were smuggled into India in , the WGC believes. Bitcoin is weightless and borderless. If digital payments grow quickly in India, Bitcoin will become a preferred way to save. The question is, how will Indians actually buy Bitcoin. For most readers, if you want to buy Bitcoin, you transact on your preferred exchange. For countries with little or no currency restrictions, it is quite easy to buy Bitcoin.
When exchanges open in a new country, they import liquidity from abroad. The most important consideration for the exchange is the supply of Bitcoin. Given that there are very few if any local companies mining Bitcoin, supply will come from traders sourcing it from the USD and JPY markets. They will not source from China, as CNY is not freely tradable.
Here is the flow of how a trader will supply Bitcoin to India: The big caveat is that you may not use this allocation to buy foreign exchange abroad. This restriction makes it virtually impossible for trading businesses to import sufficient liquidity into India. But that exemption will definitely come with heavy taxation. They will not allow another currency free from their control to suck INR liquidity out of the banking system. Due to a lack of supply, Bitcoin in India trades at a substantial premium.
BtcXIndia is one of the only operating exchanges I could find that reports trading volume. The current premium vs. Given the current monetary policy regime, the only way to increase the supply of Bitcoin in India is to produce it locally through mining.
Chinese traders do not need to access USD liquidity offshore in order to acquire Bitcoin. China has cheap electricity, labor, and manufacturing. India also possess cheap electricity and labor. India is not a global powerhouse in the production of computer chips, but those can be imported from China. When I mentioned the prospect of mining in India, the same contact said it could work with Himalayan hydropower.
This could be due to heavy taxation, or a dearth of traders willing or able to sell Bitcoin for INR. If the premium is greater than the higher cost of electricity and the chip import costs, then mining will start domestically in India. If Bitcoin catches on, Indian farms will begin producing and fabricating their own chips much like the Chinese do today. The most crucial component is demand.
Without the demand for an electronic store of wealth, a price premium will not develop. No premium, no mining. The nature of Indian financial regulations require supply to be provided through mining. It takes time for the market to produce signals to would-be miners to begin building a farm. India will be an important market eventually, but this process will take time.
Because most professional money managers are just as clueless as their clients, Spray and Pray is one of the most effective investment strategies. Once a hot new promising sector is identified, spreading an equal amount of capital amongst applicable companies is often better than attempting to pick winners. Armed with a whitepaper and a slick minimal looking web page, teams can amass millions of USD in a matter of minutes.
They sold out instantly. Traditional money managers are beginning to take interest. Small funds are opening around the globe with a mandate to invest in new and promising ICOs. Sell the token a month after it lists on a secondary market. Across a portfolio, this strategy will yield a positive return.
The results were skewed due to the massive gain on Ethereum. As with any asset, it pays more to be long than short. Performing in-depth due diligence is difficult in this new industry. Many projects have no commercial product ready. A team may disband before completion of the project. A team may pivot and release a completely different product. You are not buying equity in the team, but rather a native token used to power an application.
The legal protections and disclosures necessitated for equity IPOs are not present. This is why Spray and Pray is an appropriate strategy.
Instead of picking winners, assume that some investments will be duds and a small minority will be super novas. On average, I believe a portfolio of ICOs will outperform. Because most investors are not technically savvy enough to make a serious long-term call on the viability of a particular application, a shorter time horizon is prudent.
Only large asset managers get access to the best IPOs. Ever wonder why Och Ziff calls up a human to trade stock instead of using a computer? If you do not pay the large investment banks, your fund will not get an allocation of the hot deals. Bankers intentionally underprice issues to generate a first day pop to enrich their high fee paying hedge fund clients. Usually the retail tranche is tiny and massively oversubscribed in any IPO. Additionally, the minimum order size might be in the thousands of USD, which is unaffordable for the vast majority of the global population.
ICOs due to the low minimum subscription size are accessible to anyone holding Bitcoin or Ether. ICOs are perfect for small retail investors who are locked out of the IPO market due to their inability to open a brokerage account or to afford the minimum ticket size. There is a massive pool of money globally that needs to invest and save.
Those who are technologically savvy have understandably gravitated towards these new types of projects, and the new way of funding them. The insatiable demand for positive yielding investments in the face of negative and low interest rates is why even mediocre projects will continue to sell out within minutes. As teams realise that creating a native token for their application is an easy way to raise money without selling equity, ICO projects will flood the market.
However at the same time, traditional money managers will begin allocating funds towards ICO investments. They cannot ignore a new asset class that historically has performed well. Supply of and demand for ICOs will ratchet higher. Over the next 24 months, ICO deal flow will grow aggressively. Hillary Clinton was supposed to don red, white, and blue pantsuits and cruise to victory over the clownish Donald Trump.
Unfortunately Clinton is not a closer. In the past 8 years she was the heavy favourite to defeat Barack Obama and now Donald Trump in her runs for president. In both cases, she fumbled on the goal line. Now that the circus is over, what does Trump mean for Bitcoin? Trump and his Republican party captured both the House of Representatives and Senate. He has a unique opportunity to deliver on his campaign economic promises. Trump promised to reduce personal and corporate tax rates, eliminate burdensome regulation, and increase infrastructure spending.
Will Grandma Yellen raise rates on December 14th? Central banks globally have lamented the lack of fiscal spending to help revive economies globally. With Trump and a Republican controlled congress committed to fiscal spending, the Fed can normalise rates.
This fact was not lost on the market. Trump plans to reinvigorate corporate America through tax cuts and the elimination of regulation.
He also plans to punish corporates who offshore production through high tariffs. The net result of these policies is more investment and production onshore. This is USD positive. Santa was kind to me with a Trump victory, and it appears my second wish for a Fed rate hike is still in play. The Brexit and Trump victories represent a continuation of economic nationalism.
This goes directly against the system EU bureaucrats created. Southern European nations suffer high unemployment and low to no growth due to their inability to correct EU economic imbalances through monetary policy. The suffering plebes have had enough. British and American citizens will now pursue national interests over global ones. If these oppressed nations followed their own interests, they would repudiate the economic diktats handed down by Germany and the ECB.
That entails the return of national currencies and independent monetary policy. December 4th might be the day that ushers in a violent risk-off period due to the Italian constitutional referendum and Austrian presidential election. Prime Minister Renzi stated he will resign if the referendum is defeated. The referendum will be a prelude to national elections where Mr.
During the various debt renegotiation talks happening in the months to come, the Greeks might finally discover their backbone. This opens the door for the Greeks say bye bye to the EU and Euro. French presidential elections will be held in the summer of Marine Le Pen, who would exit the EU if elected, is polling better and better. Polls still place her behind front-runner Alain Juppe. That could change quickly as other like-minded politicians take the helm of neighboring countries.
The granddaddy of all European elections occurs in the fall of The Alternative for Germany party continues to gain momentum. They also plan to exit the EU if voted into power. Before any of these elections cause any choas, a European banking crises precipitated by a banking crisis is more likely to intensify the strain on the EU project. Deutsche Bank has still not raised equity capital or received a lighter penalty from the US Department of Justice.
Italian banks are still insolvent, but a national bailout is not permitted under EU rules. These banks must be recapitalised. A bail-in or bail-out will occur. A depositor bail-in will spark bank runs accross Europe. A bail-out will be deeply unpopular and most likely require printing billions of Euros. Pick your poinson Draghi. While in America the yield curve is steepening, the ECB has shown no interest in allowing long-end rates to rise.
The ECB is killing its member banks. A stronger USD makes this process more chaotic as capital outflows will intensify. This spells trouble for Europe and China. With two of the three largest trading blocs likely to experience currency and banking crisis, Bitcoin will shine. Time and again Bitcoin has proven to be a safe haven asset during times of market volatility. As Bitcoin roars back to life for various reasons, traders are rotating out of altcoins back into the crypto reserve currency.
The above chart shows the performance of Bitcoin against that of a number of altcoins over the past two weeks.
What is abundantly clear is Bitcoin up, altcoins down. Furthermore, the performance of Bitcoin and altcoins is negatively correlated see the table below. Finally, altcoin prices move more violently than Bitcoin. There are a few reasons to explain the above results. As traders close their positions in altcoins to ride the Bitcoin wave, altcoins are kicked to the gutter without enough liquidity to cushion the fall.
The above table shows the currency market capitalisations of the above coins. Cryptocurrency traders should keep these numbers in mind when evaluating trading and market impact costs. The market impact or liquidity cost is often ignored by novice traders. When everyone rushes for the exit, the lack of liquidity leads to exaggerated moves and erosion of paper profits. Skip to content We have been hard at work growing our presence in China.
Not everyone was so happy. Why are banks useful: They help move assets between entities. Through letters of credit, and loans, banks grease the wheels of commerce and help it grow as well. It is time to announce the winners. The winner of each category will receive a 2 Bitcoin prize. Username Bitcoin Profit Waverider83 Trader with the largest liquidation in Bitcoin notional terms. A random trader in the Trollbox. The winning trader is habibi. Any trader who has posted at least one comment in the Trollbox during the contest period and executed at least one trade is automatically entered.
Each registered user may only win one prize. Enjoy these photos of BitMEX over the years: For those coming out of their election-bunkers, let us recap these issues and provide evidence for a forthcoming tipping point: A large part of this credit was misallocated, and the bill is coming due. After the stock market collapse, Beijing has pushed desperate savers back into property. The property market contributes a large percentage of economic growth. Prices have become unaffordable for all but the very rich.
Many business people and government officials now fear for the safety of their loot and their hides. If credit growth stalls, the party is over. As a result, the PBOC is forcing state owned banks to lend to state owned companies. With a stronger greenback on the cards, further depreciation is needed to remain in the export game. Illegal and unusual methods involve the following: Other traditional methods include: Buying gold, rare coins, or even internet domain names to be resold to an overseas owned company has become popular.
Companies overstate the value of imports into China or understate the value of exports.