Bitcoin ETF Rejection Sparks Firm’s Public Protest

Bitcoin ETF Rejection Sparks Firm’s Public Protest

Smarting from its bitcoin exchange traded fund (ETF) denial by the United States Securities and Exchange Commission (SEC), Van Eck is pushing back in a formal letter of protest. A public response published on the SEC’s site methodically addresses each concern the regulator used in its rejection: valuation, liquidity, custody, arbitrage, and manipulation.

Also read: Ross Ulbricht Murder-for-Hire Indictment to Be Dismissed

Bitcoin EFT Rejected Firm Van Eck Protests Publically to SEC

In a letter to Dalia Blass, the SEC’s go-to on investment management and someone well familiar with the Bitcoin ETF quest prior to her tenure at the agency, Van Eck, one of the firms impacted by rejection, issued a public protest. It was written just prior to the latest SEC denial of the Winklevoss Bitcoin Trust. 

Van Eck’s detailed response was recently published on the SEC’s website, and it pains in detail over issues often cited by agency leaders such as Ms. Blass, five in particular. “For the reasons stated above,” Van Eck concluded in the 13-page missive complete with graphs and charts, “we believe that our proposed ETF will operate consistent with the rules and requirements of the 1940 Act. Further, by offering investors exposure to bitcoin through a regulated investment product, we believe the proposed ETF will be consistent with the Commission’s mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

Bitcoin ETF Rejection Sparks Firm’s Public Protest

Ms. Blass was appointed by Chair Jay Clayton, himself new to the job earlier that same year (2017), having been tapped by President Trump. Though with the agency during a previous stint, Ms. Blass re-emerged from the private sector.

In fact, she was counsel to the Winklevoss’ first failed ETF attempt at the hands of the SEC. Notice of her appointment in December caused at least one media outlet to dub her an “ETF specialist.” She would go on to have quite an impact on the current discussion, especially her Staff Letter: Engaging on Fund Innovation and Cryptocurrency-related Holdings of 18 January 2018, as it is the document Van Eck is addressing.

Bitcoin ETF Rejection Sparks Firm’s Public Protest
Ms. Dalia Blass

Valuation, Liquidity, Custody, Arbitrage, Manipulation

Van Eck takes on essentially five main issues in its response to the SEC. Regarding valuation, regulators really fear Bitcoin ETF prices will be screwy if, say, more forks of the digital asset continue. To that end, Van Eck explains, “Some rules that should be employed are using meaningful liquidity and infrastructure tests to assess forks and pricing issues. If prices are just displayed on a website but do not reflect sufficient volume, then those prices can be de-emphasized for valuation purposes. Forks that do not trade with sufficient volume or have adequate infrastructure (wallet or exchange support) can be excluded from indices that are meant to be investable.”

Liquidity is yet another worry for the SEC. Here, Van Eck relies on a steady increase in futures markets. The firm details, “We expect that the futures market will grow proportionally to our proposed ETF and that such growth will fuel additional interest by other investors, thereby adding additional liquidity. Additionally, since the launch of the U.S. bitcoin futures contracts, unregistered futures contracts have traded on Bitmex, a non-U.S. exchange, with a consistent volume of greater than $2 billion per day. Moreover, to the extent other futures-based bitcoin ETFs follow our proposed ETF into the market, we anticipate that such other ETFs would have a similar impact on the futures market, thus increasing liquidity in the market and benefiting fellow market participants.”

Bitcoin ETF Rejection Sparks Firm’s Public Protest

The issue of custody is a serious one both for regulators and institutional investors, and it seems to be already addressed by the current market. Coinbase is just the latest example, and so Van Eck doesn’t really dwell on the issue too much. Arbitrage, however, is a serious concern as well for regulators. Using stoppages in recent contract history, Van Eck notes, “To date, there have been 7% and 13% halts for the CME contracts and 10% halts for the CBOE contracts. Each halt lasted for 2 minutes; markets then re-opened trading in an orderly fashion. During a halt, ETF market makers will continue to have access to underlying real-time futures reference prices as well as prices in the underlying physical markets. These prices are publicly available. Furthermore, because bitcoin trades globally, the closure of a single bitcoin exchange should not affect the arbitrage process, although the market price may be affected for a number of reasons based on the nature of the closure,” the firm readily concedes.

For Van Eck, price manipulation is almost nulled by the definition of an ETF. “While one cannot rule out manipulation in the underlying spot market,” they soberly remind regulators, “we believe that, due to the diversified ownership and volume of trading, the market does not have major, structural vulnerabilities. Therefore, the Commission’s increased enforcement and regulatory actions can reduce the number of bad actors in a basically sound market.” As of this writing the SEC has not responded. 

What are your thoughts on the likelihood of the SEC approving an ETF? Let us know in the comments section below. 


Images via Pixabay.


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A Look at the Long and Annoying Process of Claiming Bitcoin Forks

Over the past year, there has been a lot of forked coins based on the Bitcoin Core (BTC) codebase in various forms and with all types of interesting names. There are anywhere between 40-70 forked coins in the ecosystem that are worth a few bucks, while some of them are worthless and not worth the time to claim. Over the past three weeks, news.Bitcoin.com started the process of collecting as many forks as we can, just to see if the processes are easy or how hard it is to claim these tokens.

Also read: Presidential Decree Sets the Stage for Legalizing Cryptocurrencies in Uzbekistan

Attempting to Claim the Vast Quantity of BTC Forks

If you’ve been in the cryptocurrency space for a few years, you have definitely heard about all the forked bitcoins in existence. At the time of writing, there are roughly 40-70 coins that are snapshot-like clones with major to minor differences that reflect the BTC codebase from a certain period of time. There is bitcoin diamond (BCD), bitcoin private (BTCP), bitcoin gold (BTG), bitcoinx (BCX), bitcoin god (GOD), new bitcoin (NBTC), bitcoin cloud (BCL), bitcoin holocaust (BTHOL), bitcoin smart (BCS), and many more. Seeing how there are so many and some do have a little value, we decided to give our readers a taste of what it’s like to claim the myriad of BTC-based forks in existence.

Make Sure You Empty Your Wallet and Study the Claim Process Carefully

The first and foremost thing to do before beginning the process of claiming BTC forks is to take your BTC wallet and empty it into a completely different wallet, because you will need the empty wallet’s private keys. This means simply send your funds to a different wallet and you can now use the old seed phrase or private key to begin the collection process. You should never do this with a wallet that still contains funds. Next up is the search for coins and there are a lot of them, but we also found that a great portion of these forks are still unattainable. News.Bitcoin.com used data collected from the website Forkdrop.io, and the latest research from Bitmex that also lists a vast collection of recorded BTC forks. We then further studied the extensive amount of walkthroughs and processes found online concerning fork collection.

A Look at the Long and Annoying Process of Claiming Bitcoin Forks
Forkdrop.io lists forks like the website Coinmarketcap.

Coinomi, Different Derivation Paths, and Ian Coleman’s Standalone Mnemonic Tool

One of the easiest ways to collect a good portion of BTC-based forks is the Coinomi application, which can be found on both Android and iOS mobile app stores. With Coinomi we were able to obtain four forks from the massive list of clones out there in existence with ease. This includes bitcoin gold (BTG), bitcoin private (BTCP), bitcoin atom (BCA), and bitcore (BTX). There are a few other BTC-based forks that Coinomi holds but for some reason, we were not able to obtain these coins using the platform. Further, not all BIP 39 formats are the same and we used a BRD Wallet seed which uses a different derivation path than other wallets. To get the private keys for our BRD Wallet seed and sweep them into Coinomi and other fork wallets we used Ian Coleman’s BIP 39 Mnemonic Code Creator standalone offline. Not only does the platform create seeds, it also reveals the private keys derived from mnemonic phrases in all formats like BIP 32, and BIP 44.

A Look at the Long and Annoying Process of Claiming Bitcoin Forks
Ian Coleman’s BIP 39 Mnemonic Code Creator.

You can download the client and use it offline and after entering the mnemonic phrase it will show you all the private keys to all the associated addresses and the extended private key as well. After entering an existing seed to an empty wallet, the tool will provide private keys that can be copy and pasted alongside scannable QR codes so people can sweep the private keys with a mobile phone. The tool also warns that some mobile scanners may be malicious and may save the scanned images.

A Look at the Long and Annoying Process of Claiming Bitcoin Forks
The Coinomi wallet for Android or iOS gives users access to a variety of BTC-based forks. We were able to claim bitcoin gold, bitcore, bitcoin atom, bitcoin z, and bitcoin private using Coinomi.

Electrum Wallet Forks, Shady Websites, and Blatant Scams

A Look at the Long and Annoying Process of Claiming Bitcoin Forks
The Electrum fork for bitcoin diamond (BCD). We were able to claim BCD using our existing seed.

After using both Ian Coleman’s tool and Coinomi, we then visited a few of the forked coin websites that offer different wallets and tools so you can claim tokens from an existing seed. We visited bitcoin diamond’s website and utilized the BCD forked version of Electrum. Other websites like bitcoin hush (BTCH) used other clients like the Agama wallet.

Visitors of these sites should note, a lot of them are insecure websites with no certificates and downloading some of the wallet clients could put your operating system at risk. Some forks are easy to obtain and others are extremely difficult and are completely unobtainable.

Super bitcoin was born on block height 498888. We were unable to obtain super bitcoin.

With a Wallet That Held 1 BTC and 30 Fork Websites Visited We Collected $85

From the BRD Wallet that once had 1 BTC in it, we were able to obtain approximately nine different forks out of 30 websites visited, which is valued at around roughly $85 USD worth of tokens. About a third of the sites we visited had security warnings and wallet tools were downright scams and seemed to be blatant attempts to steal keys, so we avoided them after a certain point during the attempted claim process. Some of the coins like BTG, BCD, BTCP were collected very easily. With other forks, even after obtaining them, users will find there is no exchange in their country that offers trading pairs with these forks, and some have zero exchange support making them impossible to sell.

Bitcoin file (BIFI) was born on block height 501225, there are supposedly 21.21 billion coins. We were unable to obtain bitcoin file.

The Processes Can Put Your Privacy and Operating System at Risk, and Depending on the Number of Funds — Collecting Forks With Very Little Value May Not Be Worth the Time  

Over the last three weeks collecting the $85 bucks worth of forks took well over 24 hours of time between visiting websites, and following the claim process for each coin. The energy put into claiming all of the forks is only worth it if you had a decent amount of BTC held in a wallet before the block heights of each token split. Not only is the process time consuming it also puts your privacy at risk when using an old wallet that once held BTC. This means someone could connect the dots back to your original wallet by referencing wallets that have claimed these forks.

Bitcoin hot (BTH) was born on block height 498848. BTH claims to have 2.1 billion coins, but we were unable to obtain BTH successfully.

With the amount of energy and shadiness involved with the process, it is not very likely that a lot of people have claimed these coins. This means the small number of users who have attempted and have collected these forks are far easier to trace. But if you want a few bucks and are willing to follow the processes in a secure manner it may be worth it to collect a bunch of these coins and sell them for something you truly believe in — Unless you absolutely think that the future of bitcoin hot (BTH) will revolutionize the planet.

What do you think about the fork claiming process? How many forks have you obtained over the last year? Let us know your thoughts on this subject in the comment section below.

Disclaimer: Walkthrough editorials are intended for informational purposes only. There are multiple security risks and methods that are ultimately made by the decisions of the user. There are various steps mentioned in reviews and guides and some of them are optional. Neither Bitcoin.com nor the author is responsible for any losses, mistakes, skipped steps or security measures not taken, as the ultimate decision-making process to do any of these things is solely the reader’s responsibility. For good measure always cross-reference guides with other walkthroughs found online.


Images via Shutterstock, Coinomi, Forkdrop.io, Bitcoin Hot, Super Bitcoin, Bitcoin File, Pixabay, and Ian Coleman’s BIP 39 tool.


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Cryptocurrency Firm Circle Sees Institutional Interest Spike 30%

Cryptocurrency Firm Circle Sees Institutional Interest Spike 30% Last May

This week the cryptocurrency firm Circle revealed it has seen a significant uptick in institutional interest. According to Circle CEO and co-founder, Jeremy Allaire says even though cryptocurrency markets were down in during the month of May the company saw a 30 percent spike from institutional clients last month.

Also read: Meet Three More Applications That Utilize Bitcoin Cash OP_Codes

Despite the Sliding Market Prices — Circle Sees a 30% Uptick in Family Offices and Venture Capital Firms Investing in Cryptocurrencies

Cryptocurrency Firm Circle Sees Institutional Interest Spike 30% Last MayCryptocurrency markets are down over 69 percent since December 16, 2017, and the past few months of 2018 has been awfully bearish. However, during this period of time, lots of companies like Coinbase, Bitgo, Circle, and others have been opening their doors to institutional investors. This week according to Circle’s co-founder Jeremy Allaire the firm had seen a notable increase in from institutional investors.

“In May, which was a challenging month, we saw a sharp increase of unique new counter-parties,” explains Allaire during an interview this week. “A lot of folks on the institutional side are on-boarding, and getting their ducks in the row.”

Circle states that it handles roughly $2 billion USD worth of trades on its platform every month. Allaire explains that before the flurry of corporate clientele Circle couldn’t facilitate extremely large orders of $100K to $1Mn trades in a high-frequency fashion. However now ‘Circle Trade’ can handle those types of fast swaps, and the company emphasizes that since then interest has stemmed from family offices and venture capital firms. Circle notes this type of clientele added 15 times more transaction volume per day than last year. Allaire details this week the industry is maturing greatly stating:

Major institutional investors don’t go through a telephone broker. They go through an electronic interface — We’re maturing this into a more traditional product; it’s much faster and a more flexible way to trade.

Cryptocurrency Firm Circle Sees Institutional Interest Spike 30% Last May

Circle Details How it Lists New Digital Assets and How the Firm Will Handle Future Forks and Airdrops

The news from the Unicorn cryptocurrency firm Circle follows the company’s recent explanation of how the firm chooses digital assets to be listed on its trading platforms. Furthermore, the company has provided a form for cryptocurrency development teams to apply for an asset listing. Circle also takes time to explain how they will handle future blockchain splits, forks, and airdrops that stem from coins they list.

“Because these events can be sporadic and dependent on circumstance, we plan to evaluate on a case-by-case basis — We are more likely to support these events if they are planned, documented and communicated well in advance,” Circle details.

We’ll communicate our decision as to whether or not to support an event at least 5 days in advance through the Notices section of the exchange homepage and an email to users holding a balance in the asset affected.

What do you think about Circle seeing an increase in interest from institutional investors like family offices and venture capital firms? Let us know your thoughts in the comment section below.


Images via Shutterstock, Twitter, Pixabay, Circle, and EJ Insight. 


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Cryptocurrency Projects Aiming to be ‘ASIC Resistant’ Have Little Success

Cryptocurrency Projects Aiming to be 'ASIC Resistant' Have Little Success

Just recently the Bitcoin Gold (BTG) developers announced the project’s consensus algorithm Equihash was “threatened” in a blog post called “A Response to the ASIC Threat.” In the post, the BTG project’s team members explain that they might change the cryptocurrency’s current Equihash algorithm due to the recent launch of the Antminer Z9 mining rig. The firm Bitmain Technologies has once again produced a device that breaks the mold of digital currency networks that claim to be ‘ASIC resistant.’

Also read: Researchers Find Bitcoin Network 3X More ‘Evil’ Than the Public Internet

The Bitcoin Gold Project Aimed to be a ‘Better Bitcoin’ by Trying to Remain ‘ASIC Resistant,’ but the Idea Failed Miserably With the Launch of the Z9 Mini

Cryptocurrency Projects Aiming to be 'ASIC Resistant' Have Little SuccessLast year a project called Bitcoin Gold (BTG) forked the Bitcoin Core (BTC) protocol in hopes of creating a more fair and decentralized mining environment that would remain ‘ASIC resistant.’ The BTG project basically cloned the BTC codebase (Segwit included), and changed the consensus algorithm from SHA-256 to the Equihash algorithm, a popular mechanism used by the digital asset zcash and others. This week the Bitcoin Gold development team wrote a blog post that detailed a new Equihash mining rig that’s been released to the public “threatens” their dream of a “one CPU one vote” network. The mining rig manufacturer Bitmain has caused a stir throughout multiple cryptocurrency communities, by launching various miners this year that process algorithms most thought were ‘ASIC resistant.’ The latest Antminer Z9 mini was announced on May 3 and costs $1,999 USD per unit and the machine processes an Equihash hashrate of about 10k Sol/s ± 5%.

“We are pleased to announce the Antminer Z9 mini, an ASIC miner to mine Equihash-based cryptocurrencies — To prevent hoarding and to let more individuals worldwide get one, we’ve set a limit of one miner per user,” explains Bitmain the day they launched the Z9 mini.

Cryptocurrency Projects Aiming to be 'ASIC Resistant' Have Little Success
The Antminer Z9 mini mines the Equihash algorithm and has caused trouble for the Bitcoin Gold (BTG) team. 

After Feeling ‘Threatened’ by the Z9 the BTG Development Team Plans to Modify or Change the Current BTG Equihash Algorithm

The announcement has shaken development teams who believed their blockchain consensus models would be free from these high-efficiency semiconductors. But now that Bitmain has released the Equihash mining Antminer Z9, the BTG project may attempt to modify or change its consensus algorithm.

“This week, we learned that the dominant specialty crypto mining hardware maker (Bitmain) has released an “ASIC” miner for Equihash, which means it would be able to mine BTG if we were to allow that to happen,” explains the BTG organization.

The Bitcoin Gold dev team is now working to fix this. We’ve been planning to do this for some time – either by modifying how the Equihash algorithm is implemented, or by changing to an entirely different algorithm. Perhaps we’ll do each, over time.

Cryptocurrency Projects Aiming to be 'ASIC Resistant' Have Little Success
Due to the launch of the Antminer Z9 mini the BTG team plans to change or modify its consensus algorithm.

Is ‘ASIC Resistance’ a Pipe Dream?

Bitcoin Gold isn’t the only project that attempted to create an ‘ASIC resistant’ cryptocurrency that failed to meet that goal. The Litecoin (LTC) network utilizes a different hashing algorithm called scrypt, and when the project first launched everyone thought it would never see ASIC miners processing the LTC’s blocks. However, the once claimed ‘ASIC resistant’ Litecoin scrypt algorithm turned out to be minable by application-specific semiconductors and at the time when this was discovered in 2013 it was quite controversial.

Last month Bitmain released its Antminer E3 that processes the Ethhash (an ethereum, ETH) hashing algorithm. The launch of this device sparked a discussion between Ethereum users who wanted to become ASIC resistant quickly. One Ethereum proponent writes “a regularly scheduled PoW change, like Monero” is needed. The Monero (XMR) development team ran into the same situation as a Bitmain produced mining rig was launched before the E3, that mined cryptocurrencies that utilized the cryptonight algorithm.

As far as different types of Proof-of-Work algorithms there hasn’t really been a cryptocurrency yet that has maintained full ASIC resistance. Most people believe the goal to produce an ASIC resistant PoW is a mythical pipe dream as there are warehouses full of ASIC machines that mine these digital currencies that once claimed to be immune from ASICs.

What do you think about the goal to create an ASIC resistant PoW cryptocurrency? Is this goal attainable without going full PoS? Let us know what you think about this project in the comments below.


Images via Pixabay, Shutterstock, Bitcoin Gold blog, and Bitmain Technologies. 


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The Most Controversial Bitcoin Forks Yet Are Coming

The Most Controversial Bitcoin Forks Yet Are Coming

Bitcoin forks are invariably contentious, but the latest batch could be the most controversial yet. Bitcoin Prime and Anonymous Bitcoin have been labeled as shameless cash grabs that are little more than pump and dumps orchestrated by opportunistic developers. The projects’ architects of these schemes, naturally, have hit back.

Also read: Forget Emojis – Bitcoin Sentiment is Expressed Through Sticker Sets in Chats

New Forks Fuel a Furore

The Most Controversial Bitcoin Forks Yet Are ComingRhett Creighton has always been a polarizing figure, but his latest stunt has united a swathe of the cryptocurrency community in condemnation. EOS’ Dan Larimer is synonymous with jumping from project to project, but his flitting looks like a lifetime of faithful service compared to Rhett’s itchy feet. Having announced a dual fork of bitcoin and zclassic last December, which inflated the price of ZCL and enriched Rhett and his cronies no end, he’s now following suit with bitcoin and primecoin to create Bitcoin Prime.

The Most Controversial Bitcoin Forks Yet Are ComingMeanwhile, a separate project is doing another fork of zclassic and bitcoin to create Anonymous Bitcoin which aims to “become the new standard for truly private banking”. This means that zlassic will now have forked twice with bitcoin to create a pair of zk-SNARK-based privacy coins – three times if you include zencash, which was also born from a ZCL fork. Zen, to its credit, has since gone on to forge its own community and to differentiate itself from its parent coin. Bitcoin Private, on the other hand, has done little more than infuriate ZCL bagholders, many of whom lost money on the deal. ZCL has now died and been reborn more times than anyone can count, and is currently up 242% in a month.

A Prime Way to Pump a Dead Coin

Primecoin was trading at 80 cents until Rhett Creighton bought a bunch, announced his plan to fork it, abandoned the Bitcoin Private project, and pressed ahead with his latest money-maker. Many of Rhett’s claims have stuck in the craw of the cryptocurrency community, who recognize a snake oil salesman when they see one. Some figures, including bitcoin developer Jimmy Song, believe that BTC forks are little more than altcoins or airdrops and don’t deserve to be categorized under the bitcoin banner.

The Most Controversial Bitcoin Forks Yet Are Coming

Regardless of their status, the approach that developers such as Rhett Creighton have taken to merrily forking coins has come in for censure. He’s played heavily, for example, on the fact that Vitalik Buterin once considered building ethereum on top of primecoin, as if this somehow legitimizes the creation of Bitcoin Prime. With primecoin up 350% since the fork was announced, those who got in early – like Rhett Creighton – will profit handsomely whatever happens. At least Rhett is able to see the lighter side of the furore he’s caused, tweeting the following:

A Wild Bitcoin Fork Appears

Another bitcoin fork emerged this week, turning up in the unlikeliest of places – Bitfinex. Most major exchanges have given bitcoin forks short shrift ever since bitcoin gold and bitcoin diamond but for unknown reasons, Bitfinex has decided to support Bitcoin Interest (BCI). The coin forked from bitcoin back in January, and Bitfinex intends to issue BCI later this month before launching trading. The utility provided by BCI remains to be seen, whose defining feature is the provision of interest to holders who stake their tokens. Whatever its fate, Bitcoin Interest wasn’t born out of a shameless pump of an existing coin, and for that reason alone should prove less controversial than the likes of Bitcoin Prime.

The Most Controversial Bitcoin Forks Yet Are Coming

Do you think projects such as Bitcoin Prime have merit or are they a shameless cash grab? Let us know in the comments section below.


Images courtesy of Shutterstock, Bitcoin Prime, Anonymous Bitcoin, and Twitter.


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Bitcoin Cash Wiki Article Suffers From Edit Warring and Vandalism

Bitcoin Cash Wiki Article Suffers From Edit Warring and Vandalism

There’s a constant feud these days between Bitcoin Core (BTC) supporters and Bitcoin Cash (BCH) proponents right down to the nitty-gritty of nearly every topic in the space, and the arguments continue to this day, relentlessly. One such example is the Bitcoin Cash article hosted on Wiki has been page protected for a couple weeks now for “vandalism.”

Also Read: Hong Kong Alcohol Company Buys 51% of Bitcoin Miner for $60 Million

Bitcoin Cash Wiki Article Gets Locked Down Due to Constant Vandalism

The Wikipedia website is a collaborative effort that allows anyone to edit and contribute additions to Wiki articles for the sake of documenting history online. So often times subjects are edited by anyone online but, if the subject is contentious, an ‘editing war’ can erupt. This means editors argue about the neutrality of the article and Wiki’s dispute resolution services come into play. Right now this is taking place at the Bitcoin Cash article found on Wiki and the page displays a warning about the contention.

Bitcoin Cash Wiki Article Suffers From Edit Warring and Vandalism“The neutrality of this article is disputed — Relevant discussion may be found on the talk page — Please do not remove this message until conditions to do so are met,” explains Wiki when you visit the page. Further investigation directs readers and editors to the talk section which states:

There have been attempts to recruit editors of specific viewpoints to this article. If you’ve come here in response to such recruitment, please review the relevant Wikipedia policy on recruitment of editors, as well as the neutral point of view policy. Disputes on Wikipedia are resolved by consensus, not by majority vote.

Bitcoin Cash Wiki Article Suffers From Edit Warring and Vandalism

Most of the Edit Wars Are ‘Bcash’ Related

Going down the rabbit hole further points to an ugly situation where editors are battling about neutrality, and members of the general public are ‘vandalizing’ the page. For instance looking at the discussion on the editor’s ‘talk page’ and the Bitcoin Cash article’s revisions page many of the arguments and edits revolve around calling the cryptocurrency ‘Bcash.’

Bitcoin Cash Wiki Article Suffers From Edit Warring and Vandalism

On April 20th a Wikipedia editor named ‘Foxyjim’ tried to change the name to ‘Bcash’ and argued the name was acceptable for the BCH-focused article and Wikipedia standards. ‘Bcash’ considered a derogatory term by a great majority of the BCH community, and many believe the term is used as an attempt to confuse people. On one occasion an editor and another contributor named ‘Toomuchtalk’ reverted an edit that was attempted by the user Foxyjim.   

“Foxyjim obviously doesn’t understand what Wikipedia is — Just because a disagreeing faction created a derogatory name in an effort to obscure the truthful Bitcoin history and are upset that they are using the name Bitcoin does not make the use of Bcash a legitimate historical fact,” the editor explains.  

In no way would a supporter of Bitcoin Cash supporter be ok with this!   

The New Cypherpunks

The ‘Bcash edit is a common attack made regularly on the article and disputed in Wiki edit warring discussions. Other issues with the page stem from reliable sources, arguments on how the fork was initiated, and debates regarding the Segregated Witness protocol. Throughout the revisions page, there are multiple debated edits every single day. Moreover, the neutrality template on the Bitcoin Cash article has been added and removed a few times over the past few months as well. Last week the lead developer of the BCH client Bitcoin ABC, Amaury Séchet, noticed the neutrality template on the article and made a remark about it to his followers on Twitter, stating:        

Bitcoin Cash Wikipedia is now protected due to repeated vandalism — ‘Cypherpunks do Orwellian shit’ is the new ‘Cypherpunk Write Code.’

What do you think about the Bitcoin Cash Wikipedia being vandalized and suffering from edit warring? Let us know your thoughts on this subject in the comments below.


Images via Shutterstock, Wikipedia, and Bitcoin Cash 


At news.Bitcoin.com all comments containing links are automatically held up for moderation in the Disqus system. That means an editor has to take a look at the comment to approve it. This is due to the many, repetitive, spam and scam links people post under our articles. We do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published.  

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Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever

Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever

In a little more than three weeks time the Bitcoin (BCH) network will hard fork by upgrading its block size to 32MB and incorporate additional functionalities to the protocol. Currently, the entire community is steadily preparing for the consensus change as development teams release new code, while users and infrastructure providers upgrade their full node implementations.

Also read: Five Reasons Why Bitcoin Cash is About to Win Big

The BCH Network Will Perform the Biggest Block Size Increase in History  

Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever The decentralized cryptocurrency bitcoin cash and its network will be upgrading this May 15 at approximately 12:00:00 UTC, 2018. The Median Time Past (MTP) method will activate the consensus change. BCH proponents are pretty excited for the upgrade, to say the least, as the 32MB block size increase will be the largest block size expansion of its kind within the cryptocurrency landscape. The increase will allow developers to maintain consistent transaction throughputs for the billions of people living in the world, alongside on-chain fees anyone from any developing nation can afford. Using today’s statistics BTC is more than 10.73X more expensive to transact with than BCH. Next month’s bitcoin cash 32MB block size increase will allow enough room for transactions for years to come.

Tokenization and Smart Contracts Are Coming

Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever
Colored coins and representative tokens are coming to the BCH chain.

In addition to the large block size increase, the BCH chain will incorporate other features that have created excitement throughout the bitcoin cash community. For instance, the BCH development teams have added certain OP_Codes and a larger OP_Return data size. This upgrade will enrich BCH with a variety of robust features such as tokenization and the ability to program simple smart contracts via the BCH chain. Instead of using a separate platform like Ethereum or Counterparty, BCH developers will be able to create representative or color coins that can be backed by anything. After the hard fork and some community development, things like bonds, stocks, precious metals, commodities, and any physical or virtual object can be represented by a BCH backed color coin. With a smart contract functionality, the BCH chain can be used to program autonomous actions like dispersing BCH to your children or spouse at a later date in time.

Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever
BCH-based smart contracts and scripting abilities are on the way.

Prepping for the Upgrade

Out of the 1,762 public Bitcoin (BCH) full nodes in 42 countries, many of these nodes who use the ABC client have begun to upgrade their nodes to the latest Bitcoin ABC release which contains the necessary May 15 changes. At the moment according to node data, Bitcoin ABC represents 62 percent of the BCH network, while more than 58 percent of those nodes have upgraded to the version 17 ABC release. Other clients represented within the BCH network include Unlimited, Parity, XT, and Bitprim. The Parity client’s development team seems to be adding the necessary code changes this week on Github. Bitcoin Unlimited’s (BU) 1.3.0.0 BCH implementation has been prepared to accept the consensus changes and a public release is now available.    

“This release implements Bitcoin Cash, compliant with the latest hard fork (May 15, 2018), including 32MB blocks, extended OP_RETURN data, and additional opcodes,” explains the BU team.

The Bitcoin XT Cash client has also updated its full node implementation and has released its latest version to the public that mandates a 32MB block size limit consensus change. The XT release changes indicate support for the Bitcoin Cash May 2018 protocol upgrade and Cashaddr by default.

Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever
Full node implementations are steadily upgrading clients to accept the May 15 upgrade.

After the May Upgrade More Features Are in Store for Bitcoin Cash

Bitcoin cash proponents seem ready for the pending upgrade, as last year the community completed a successful revised Difficulty Adjustment Algorithm (DAA) change, alongside a Base32 address serialization. The pending 32MB upgrade and re-enabling Satoshi Op_Codes are on the way this May. Then BCH enthusiasts still have more innovation to look out for after those changes are complete. For instance, the Bitcoin ABC team is working on UTXO commitment changes, and ABC and XT developers are collaborating on another DAA using a new PID control algorithm. The BU development team is in the midst of researching and testing a new block method called Graphene, and enabling binary contracts via OP_Data sig verify.

What do you think about the upcoming Bitcoin Cash upgrade slated for May 15? Let us know in the comments below.


Images via Shutterstock, Pixabay, Bitcoincash.org, and BCHnodes.online.  


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Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Bitcoin in Brief today is slanted toward a crypto winter slowly thawing, as Pantera Capital bets on a moonshot price point. Also, the world’s most popular decentralized digital asset has been forked more than a plate of good pasta; there’s a growing list of countries who’re less likely to nab your crypto profits; Yahoo! smashes rumors; and a good-hearted wager between bitcoin core and bitcoin cash partisans exemplifies how ecosystem actors should treat one another.

Also read: Bitcoin in Brief Saturday: Hide Your Seed

A Panther’s Moonshot

Bulls have a panther as their advocate to help thaw this crypto winter. We reported this week, “Pantera Capital, an investment firm exclusively operating in the cryptocurrency and distributed ledger technology sectors, has published a letter predicting that bitcoin has established the low for its current bear market. Pantera cites a number of factors as informing its market outlook.”

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Among those factors are taxes on capital gains, where estimates are in the many, many billions expected from enthusiasts. That in turn, the fund theorizes, dragged prices down, and bitcoin core has found a bottom at $6,500, as holders were forced to sell in order to pay government bills. We continue, “Pantera also states that ‘It’s highly likely’ for the price of bitcoin to exceed its previous record highs of $20,000 ‘within a year,’ asserting that ‘A wall of institutional money will drive’ the growth in price.”

Speaking of Taxes

Until that prediction comes true, readers should pack their bags to save money from the tax man! Start looking for places to stay in Germany, Slovenia, Denmark, Belarus, South Korea, Singapore, as they’re some of the most advantageous.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

We stressed how many “jurisdictions have yet to update their tax laws to encompass cryptocurrencies. Rules governing taxation are often incoherent and very different even in countries that are part of a common space. In the European Union, for instance, tax rates in member-states vary between 0 and 50%.”

Forking Crazy

Be honest. You’ve never heard of Bitcoin Minor, Bitcoin King, nor Bitcoin Boy. How many times would you guess the Bitcoin network has been forked? During an extensive and really interesting investigation, we revealed nearly 70 times. That’s right, 70.

We summarized findings as how forking “bitcoin used to be a rarity. Then it became the norm. And then it became a meme, with anyone and everyone forking bitcoin on a weekly basis. There have now been a total of 69 bitcoin forks plus another 18 altcoin forks. Holders of bitcoin, monero, ethereum, and litecoin can claim almost 80 additional coins for free. Whether it’s worth their time to do so, however, is another matter.”

The Fork of All Forks Remains a Solid Option

The most famous of forks is, of course, bitcoin cash (BCH). Its being faster, sleeker, younger, and bigger (block wise) has lead those on the bitcoin core (BTC) side to take a stance on BCH’s long term viability. And while each side feels passionate about its coin, and the future that it entails, debate often become rancorous, turning everyone off.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet
A reader responds to a hilarious bet.

We reported how two well-known advocates joked and ribbed one another about Core’s anticipated Lightning Network solution. They bet bragging rights if a demonstration of the solution failed a basic transaction. Loser would have to wear a t-shirt of the winner’s coin. Regardless of which won, the import is how the two men exchanged laughs and good humor, and the ecosystem needs more of both.

Japan Continues to Lead

No laughing matter is how the crypto winter continues its thaw as “Yahoo! Japan has confirmed that it is entering the crypto space by acquiring a stake in a Japanese cryptocurrency exchange that is already licensed by the country’s financial regulator. The company plans to launch a crypto exchange in the fall of this year,” we explained.

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

We Have the Best Readers in All of Crypto

Thanks to our readers liking and sharing, our post on aspects of Islam possibly opening to cryptocurrency was picked up and republished and referenced around the world. Some contend it was the root cause of bitcoin’s recent price rebound. Great job, gang.

The crazy good book by Wendy McElroy we continue to serialize brings in wonderful reader comments and observations. To wit:

Bitcoin in Brief Monday: A Panther’s Moonshot Bet

Do you think bitcoin will continue to rise or to fall to new lows? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Privacy-Centric Coin XMR Splits Into Four Different Monero Protocols

Privacy-Centric Coin XMR Splits Into Four Different Monero Protocols

On April 6 the privacy-centric cryptocurrency monero (XMR) forked the protocol in order to make the digital asset’s mining ecosystem egalitarian. However, the hard fork has led to the birth of four monero-based blockchain branches all claiming to be the “original monero.”

Also read: Bitcoin’s Value to Lose $44 Billion by Year’s End, Researchers Argue

The ‘ASIC Scare’ Creates Four Separate Monero Projects

The digital currency monero (XMR) is a public blockchain network created in April of 2014. Unlike litecoin and many other altcoins, XMR is not a clone of the original bitcoin codebase. Monero was built using the Cryptonote protocol; a codebase designed by a cryptographer who called himself Nicolas van Saberhagen. Saberhagen’s proof of concept turned into a slew of Cryptonote coins that utilized the Cryptonight proof-of-work hash algorithm like bytecoin, boolberry, and monero. However, just recently the Chinese mining operation Bitmain Technologies launched its Antminer X3 series, which hashes the mining protocol Cryptonight. A few other mining manufacturers such as Halong Mining and Baikal revealed ASICs that process the algorithm as well. 

Privacy-Centric Coin XMR Splits Into Four Different Monero Protocols

In light of this situation, the monero developers and community decided it was best to hard fork the chain in order to render these machines useless against the network. Monero (XMR) planned to upgrade to the version 12 codebase, which changed the consensus rules making its Cryptonight PoW more secure against ASIC technology. Although a significant portion of the monero community did not favor the idea and this issue has split the community into multiple subsets. This has eventually led to four projects relying on the original version 11 monero codebase.

All Four Monero’s Believe They Are the ‘Original’

Privacy-Centric Coin XMR Splits Into Four Different Monero ProtocolsFollowing the April 6 fork, there are now four different moneros that have decided to keep the original branch going. Two of the projects call themselves ‘Monero Classic’ with one team deriving from Singapore, and the other a developer who calls himself ‘PZ.’ Both of these projects claim changing monero’s PoW is not a well thought out decision, and both project leaders think they should keep the ‘original’ codebase alive. The Singapore team working on ‘Monero Classic’ (XMC) explains that the XMR developers have declared “unilateral control over monero” by being able to change the consensus algorithm on a whim. Moreover, the developer ‘PK’ and his project, which is described in both English and Chinese, agrees with this sentiment and doesn’t think the algorithm should have been changed.

“We believe that the two ideas of ’embrace ASIC mining machines’ and ‘against ASIC mining machines’ both have their own strengths and weakness,” explains the pseudonym developer PZ.  

Therefore, we believe that these two thoughts should be given equal opportunities for development. We will make our best efforts to maintain the Monero system before this algorithm change, thereby preserving the fire that gives the ecology more potential for development.

‘A Trojan Horse Designed to Compromise the Effectiveness of Proof-of-Work’

Following the two teams that refer to themselves as ‘classic,’ there is also the ‘monero original’ project. Monero original (XMO) revealed its intentions when it sent press releases to multiple cryptocurrency journalists and publications. The project codebase can be found on Github, and the lead developer is a person called ‘Xman.’

“We are contacting you on behalf of the development team behind the monero original project. Monero original (XMO) is the original monero chain that we will keep up and running after the monero hard fork scheduled for the 28th of March 2018 at block #1,539,500,” explains the developer’s message to the press.

Monero has always been about freedom of choice, about diversity and about the strong community behind it. We are providing the Monero fans a possibility to support the iconic coin and stay on the original chain. Monero original team stands for diversity, which is a logical marker of evolution.

Lastly, there is monero 0 a development team that believes monero’s (XMR) strategy to hard fork is no longer “a stable and sane strategy.” The lead developer is a pseudonym who seems to firmly believe that forking protocol to avoid ASICs is not consensus. The monero 0 (XMZ) project states on its website:  

We believe that Satoshi’s proof-of-work is the only mechanism for decentralized consensus. The so-called “network upgrades” that are centrally mandated by the monero project are a trojan horse designed to compromise the effectiveness of Proof of Work in the monero network. Monero 0 is not a fork, it is the original Monero.

Proceed With Caution: These Forks May Not be Stable or Survive

As of right now, it’s not certain how reliable any of these forks will be and how long they will last. This includes being supported by cryptocurrency infrastructure providers and maintaining continuous active development. A few of these monero forks have indicated support from exchanges and mining pools so far which will help them get started. However last year there were a ton of bitcoin ‘forks’ or cloned snapshots that produced absolutely nothing weeks later, as many of the BTC snapshots don’t have working blockchains, development is non-existent, and the network looks like a ghost town.

What do you think about the four moneros? Let us know what you think about this situation in the comments below.


Images via Pixabay, Wiki Commons, and the Monero XMR project logo. 


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ASIC Resistance Increasingly Hot Topic in Crypto as Monero Forks

ASIC Resistance Increasingly Hot Topic in Crypto as Monero Forks

Monero, a leading privacy-centric cryptocurrency, has undergone a hard fork in recent days – producing a new Monero chain in addition to the now renamed ‘Monero Classic’. The fork was initiated to protect Monero against mining centralization, as Bitmain had developed ASIC units purpose-built for mining XMR tokens.

Also Read: “Private Digital Money” Better than State-Issued, Swiss Central Banker Says

Monero Announces Network Upgrade

ASIC Resistance Increasingly Hot Topic in Crypto as Monero ForksOn the 28th of March, Monero announced that it had scheduled a major upgrade for April 6th – which would see network undergo a hard fork.

The official announcement gave two primary outcomes that it intended to achieve through the fork. “First, a PoW tweak to curb any potential threat of ASIC and preserved ASIC resistance, and “Second, the minimum ring size is bumped to 7.” Monero’s expansion in minimum ring size was executed in order to strengthen the privacy afforded by XMR.

It was revealed last month that Bitmain had developed a new ASIC product specifically developed to mine Monero, creating a perceived urgency to fork among developers.

ASIC Resistance Long-Running Concern Among Monero Developers

ASIC Resistance Increasingly Hot Topic in Crypto as Monero ForksIn February, Monero published a document outlining its position regarding maintaining ASIC resistance for the cryptocurrency. The post set out Monero’s then “somewhat formal stance” regarding ASIC – stating the developers’ “intention to maintain ASIC resistance by swiftly reacting to any potential threat from ASICs and considering slightly modifying the PoW at every hard fork” due to “any newly developed ASIC […] obtain[ing] a significant majority of the network hashrate and introduc[ing] centralization.”

Resisting mining centralization is described as a core value of the Monero project, with Monero stating that XMR “was forked from the Cryptonote reference implementation” that sought to “create a more egalitarian mining network and foster decentralization.” Monero’s developers “concede that ASIC may be inevitable,” however “feel that any transition to an ASIC-dominated network needs to be as egalitarian as possible in order to foster decentralization”.

Monero states that its proof-of-work system “intends to close the gap between CPU and GPU, FPGA, and ASIC mining by using a proof-of-work system that is memory bound over a moderate amount of memory.” Monero argues that this has three major benefits: “First, if mining is decentralized […] it will be very difficult to pressure miners into […] act[ing] as a censor to the Monero blockchain. Second, it will lessen the pressure toward centralization of mining in large data centers,” and “Third, it is quite difficult for government to regulate companies selling general-purpose hardware (as opposed to companies selling specialized hardware).”

Monero Resists Mining Centralization

ASIC Resistance Increasingly Hot Topic in Crypto as Monero ForksMonero argues that “Specialized [mining] hardware will, most likely, only be designed by a few companies,” quoting Peter Todd as stating “There’s only a tiny number of companies in the world that are capable of building performance/cost competitive ASIC, basically the likes of Intel, ASMC, Globalfoundries, etc.” XMR’s developers assert that such “Creates a single point of failure [… that] has the potential to destroy the whole network.” The developers also argue that “Mining, in general, is also prone to the rich-get-richer effect, which ultimately leads to centralization.” ASICs, Monero adds, “accelerate[s] the rich-get-richer effect, because ASIC miners have no competition from” miners with less powerful hardware.

Monero’s developers concluded that they were willing to “perform an emergency hard fork to curb any potential threat from ASIC if needed” upon discovering that Bitmain had developed ASIC technology for XMR mining. In order to deter the development of future XMR-targeted ASICs units, the developers also proposed modifying Monero’s underlying “PoW hash every scheduled fork, twice a year.”

Monero Classic emerges

Despite the official announcement describing the fork as “a scheduled and consensual network upgrade” and “Thus […] a new coin won’t be created,” the fork saw the emergence of Monero Classic alongside the new Monero chain.

An official statement from Moneroclassic.org has criticized XMR’s decision to pursue ASIC-resistance, arguing that such “creates an alternative and more harmful form of centralization,” as the Monero “developers are saying that they can and will change the consensus rules whenever it suits them.” Monero Classic has pledged “to maintain the original software which follows the original rules.”

ASIC-Resistance Increasingly Becoming Major Debate in Crypto

ASIC Resistance Increasingly Hot Topic in Crypto as Monero ForksThe debate surrounding Monero’s decision to pursue ASIC-resistance has become prominent among many other cryptocurrency projects. Last week, Ethereum developer, Piper Merriam, posted an Ethereum Improvement Proposal advocating that the ETH community consider the implementation of a hard fork that would “Modify block mining to be ASIC resistant.”

Mr. Merriam stated “According to ‘the internet'[,] there is an ASIC[-]based Ethereum miner on the horizon,” prompting him to ask “Should [Ethereum] hard fork to make ASIC mining harder and to demonstrate a willingness to hard fork any future ASIC[-]based Ethereum mining,” and “What […] changes [should Ethereum] make to implement this increased ASIC resistance.”

Indeed ‘the internet’ was telling the truth, with Bitmain revealing the launch of it’s Antminer E3 for mining Ethereum on the 3rd of April. Despite the existence of the ASIC ETH miner, Vitalik Buterin has opposed Mr. Merriam’s proposed fork, stating “Getting everybody to upgrade is likely to be fairly chaotic and detract from more important things. So, at this point I personally lean quite significantly towards no action […] If the community truly wants this to happen and has a good enough reason we can definitely do that, but for right now it sounds like consensus of the core devs to not do anything at this time.”

New Crypto Projects Seek to Resist ASICs

A growing number of new cryptocurrency projects are also seeking to ensure ASIC resistance, with Overstock CEO, Patrick Byrne recently discussing a fledgling cryptocurrency project Ravencoin that seeks to ensure ASIC resistance.

ASIC Resistance Increasingly Hot Topic in Crypto as Monero ForksRavencoin’s “X16R whitepaper“, which was authored by Overstock-owned Medici Ventures’ Tron Black and Joel Weight, claims to boast ASIC-resistance through the adopting of an “X16R hashing algorithm” that “consists of 16 hashing algorithms operating in chain.” Ravencoin’s whitepaper claims to achieve ASICs resistance through ”constantly disrupting the ordering of the hashing algorithms,” adding that “This reordering does not make an ASIC impossible to build, but it does require that the ASIC adapts to additional input, which is more easily accomplished by a CPU or GPU.” The whitepaper for Ravencoin, authored by Tron Black and Bitcoin Foundation board member, Bruce Fenton, states that the X16R algorithm is “intended to prevent immediate dominance by mining pools, and future dominance by ASIC mining equipment.”

Mr. Byrne claimed “Overstock” has put millions of dollars into teams […] contributing to [Ravencoin]” in a February interview with Business Insider. During Overstock’s Q4 2017 earnings call on the 15th of March 2018, Mr. Byrne also stated that Overstock holds “over 60 million” RVN tokens. With Coinmarketcap currently estimating Ravencoin’s circulating supply to be nearly 800,000,000, it would appear that Overstock currently holds at least 7.5% of the Raven’s total supply – suggesting that projects purporting to be ASIC resistant and the product of a fair launch are not immune to centralizing forces themselves.

Do you think that more cryptocurrencies will initiate forks in order in order to resist ASIC miners? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Ravencoin


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Cryptocurrency Mining Industry Sees Influx of New Hardware

Cryptocurrency Mining Industry Sees Influx of New Hardware

On April 3, 2018, the Chinese based firm Bitmain Technologies had launched it’s latest miner the Antminer E3. The new pre-manufactured mining rig processes the hashing algorithm Ethhash, the PoW consensus protocol for the Ethereum network. Lately, Bitmain has been releasing a bunch of new products including the Antminer X3 which mines Cryptonight algorithms for coins like monero, and a slew of other mining devices.

Also Read: Reddit Removes Bitcoin Payment Option, Censors Darknet Forum

The Latest Ethhash and Cryptonight Miners

Bitmain is a well-known manufacturer of cryptocurrency mining hardware and other related services. The company was founded in 2013 by Jihan Wu and the firm has made quite a name for itself over the years. Last year the company produced a whopping revenue of over $4 billion, making it one of the largest technology companies in China. The company has been making BTC miners for quite some time, and soon offered both dash and litecoin miners as time passed. Just recently the firm has officially launched two more miners which have caused heated discussions among network participants throughout a few cryptocurrency ecosystems.

Cryptocurrency Mining Industry Sees Influx of New Hardware
The new Antminer E3 claims to operate at 180MH/s

This week the company launched the Antminer E3; a cryptocurrency mining device that processes the Ethhash (an ethereum ETH) hashing algorithm. The machine boasts a 180MH/s and the company has started shipping batch one. The E3 launch announcement had riled up a bunch of ethereum community members who are quite sour that an application-specific integrated circuit (ASIC) device of this magnitude has been released to the public. Members of the ethereum community are already calling for a faster hard fork to avoid these types of ASIC miners. Some ETH community members explained that the creation of these devices supported the need to have “a regularly scheduled PoW change, like monero.”

Cryptocurrency Mining Industry Sees Influx of New Hardware
The latest Antminer X3 mines Cryptonight coins like monero.

The monero (XMR) community has been facing the same dilemma, as Bitmain has just launched the Antminer X3 which mines the Cryptonight hashing algorithm. This means coins like monero, boolberry, and other Cryptonight-based coins can be mined using the X3 at a rate of 220KH/s, according to Bitmain. Because of this new mining device situation, the privacy-centric cryptocurrency monero plans to hard fork and call itself moneroV (XMV).

Halong Miners Dragonmint Claims to Produce 16 Terrahash and Utilize ASIC Boost Technology

Bitmain has competition coming as well as development teams from DMM, GMO Group, and more. Further, this week individuals started receiving their Halong Mining Dragonmint 16T1 SHA-256 miners which, according to the company, are highly efficient cryptocurrency ASIC processors. Halong says the miners are a brand new generation of devices that claim to produce 16TH/s and also advertise the devices use of overt ASIC Boost technology.

Cryptocurrency Mining Industry Sees Influx of New Hardware
The Dragonmint series advertises that it uses ASIC Boost technology. The machines have shipped to customers and the public waits for performance reviews.

The news follows the great controversy surrounding ASIC Boost, alongside the anonymous character Cobra Bitcoin, the co-owner of Bitcoin.org, calling Halong Mining a scam operation. Many cryptocurrency community members were skeptical of the legitimacy of Halong’s machines, but machines were delivered to customers this week. There are multiple videos of individuals opening boxes of Dragonmint machines and even side-by-side comparisons to Bitmain chips. At this moment in time, it is hard to say if Halong machines perform as well as the company’s claimed specifications but it is likely reviews of these machines will come shortly.

Cryptocurrency Mining Industry Sees Influx of New Hardware
A side by side comparison of the Bitmain and Halong chips show very similar manufacturing.

 The New Avalon 841 SHA-256 miner

Then there’s the new release by Canaan Creative’s new 8th generation SHA-256 miner. The Avalon 841 is a mass-produced miner that claims to possess a power consumption of .099 Joules per Gigahash and a hashrate of 13TH/s. The device is powered by 104 Canaan manufactured A3210HP 16nm ASICs. Canaan’s Avalon series miners have been a reputable brand for quite some time compared to large firms like Bitmain. Additionally, Canaan has stated that it is in the midst of working on the next generation Avalons 861, 921, and the 10 series miners.

Cryptocurrency Mining Industry Sees Influx of New Hardware
Canaan Creative’s new SHA-256 miner the Avalon 841

Over the years mining devices are becoming increasingly more efficient and semiconductors are just getting smaller and faster. Just recently the Japanese firm GMO Group claims it will be launching miners with 7-nanometer technology. It’s safe to say that the cutting edge innovation and competition within the mining industry is sure to heat up even more over the next few years.  

What do you think about the latest mining devices coming to the market? Let us know your thoughts in the comments below.


Images via Pixabay, Bitmain, Halong Mining, and Canaan websites. 


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Trading Tip `The Wall´ – Bitcoin Dominance On The Rise

Trading Tip `The Wall´ - Bitcoin Dominance On The Rise

In the cryptocurrency market today, there’s a wide variety of investors. But it wasn’t always like that. Between 2010-2016, the landscape was pretty uncomplicated. On a high level, there were only two distinct categories: 1, The ones who measured their wealth in fiat; 2, The ones who measured their wealth in bitcoin.

Also read: Meet the TA Gods

Bitcoin and Investor Types

When a Type 1 person meets a Type 2 person, this is typically how the conversation would go.

Type 1 person: Bitcoin is doing great, I’m so glad I bought some. One of my best investments.

Type 2 person: Yeah, it’s awesome.

Type 1 person: So at what price do you think you’re gonna sell at?

Type 2 person: Hm? I’ve already sold. I sold my fiat for bitcoin.

Trading Tip `The Wall´ - Bitcoin Dominance On The Rise

The fundamental bitcoin meme.

In the years 2010-2016, Type 1 investors typically got so destroyed in comparison to the performance of Type 2 that another label for these types quickly got adopted: “weak” vs “strong hands”. With the altcoin onslaught of 2017, I expect the distinction between weak and strong hands is about to retire in favor of a new categorization:

  1. The ones who still hold only bitcoin
  2. The ones who bought altcoins 

In the future, assuming cryptocurrencies as a whole continue to flourish, we can imagine the cryptocurrency market going three different ways.

Scenario A: Bitcoin re-establishes itself as the king of crypto, succeeding in capturing the SoV (store-of-value) and the MoE (medium-of-exchange) market. All functionalities and attributes of its competitors are re-implemented through bitcoin features such as sidechain/drivechains and second-layer technologies. This view is known as bitcoin maximalism. Different altcoins come and go but fail to become relevant through lack of network effect, and those who staked too much on the success of the up-and-comers of today see their fortunes wither.

Scenario B: The dust never truly settles on the cryptocurrency battlefield. Different cryptocurrencies continue to emerge and fill different needs in harmony with each other. Protocols like Interledger tie the cryptocurrency landscape together via atomic swaps, allowing for a seamless experience of the multi-cryptocurrency world. While this scenario is interesting and plausible, it fragments both the liquidity and the security of cryptocurrencies as a whole. Depending on how marginalized bitcoin becomes in this scenario, the yearly performance of those who diversified with the right aptitude for spotting innovation will leave the bitcoin maximalists in the dust.

Scenario C: The bitcoin maximalist approach to protocol development and the politics surrounding it results in bitcoin eventually falling behind competing projects. Bitcoin maximalists become financially ruined. There may be some respite in this scenario where the maximalists survive to the altcoin domain through airdrops and forks, unless they liquidate all their crypto-dividends in favor for more bitcoin (which some do).

So, where are we heading currently?

Between 2009 and March 2017, bitcoin’s share of the cryptocurrency market never once dropped below 73% (known as “bitcoin dominance”). On this day one year ago (March 3, 2017) it was still 85%. Although dominance metrics are a controversial topic because market capitalization easily inflates, the figure still serves to indicate the valuations at which people are currently pricing things at.

In retrospect, it seems crazy how fast the market has changed. To think that just about 1.5 years ago, bitcoin at $10,000 was described as “magical and mythical“, and today, that same price borders on being considered cheap because we hit almost $20,000 in December. In a similar way, bitcoin dominance breaking above 40% is considered high now just because we were at 32% 2 months ago, even though it’s catastrophically low when we zoom out. We tend to mentally anchor ourselves in previous states, and we use those anchors as reference points when determining if something is high or low.

Trading Tip `The Wall´ - Bitcoin Dominance On The Rise
Source: Coinmarketcap.

One interesting way to look at the bitcoin dominance metric in a way that ignores the scaling debate is to look at it from a historical macro-perspective.

Trading Tip `The Wall´ - Bitcoin Dominance On The Rise
Bitcoin vs Index Portfolio of top 10 altcoins. Bitcoin 4.6x vs Index 1.2x

Source: Woobull.

The simple explanation here is that altcoins rally tremendously during bull trends, but dip even worse during bear trends. But in 2017, the altcoin bull trend was further amplified by 3 important factors:

  • Bitcoin hit its scalability ceiling, giving altcoins/forks their first shot at actual relevance
  • Altcoins are actually attempting to innovate now compared to before
  • The proliferation of ICOs is affording new altcoin marketing budgets and development teams that previously were unthinkable

So, we’re heading towards Scenario B/C?

Despite graphs and numbers, there is one much more important thing to keep in mind when it comes to cryptocurrency investing, and that is all current valuations are mostly a result of pure speculation. The market is currently just a reflection of everyone’s guesses in aggregate.

I often get questions along the lines of “Thinking about picking up some Litecoin, it seems like a pretty good buy at $200?”. The reason is most often because Litecoin has been $350 previously and is therefore now cheap in relative terms. In my opinion, the fact that Litecoin has been $350 doesn’t matter at all; the thing that should matter if you are considering an investment in Litecoin is whether you see Scenario A, B or C as the most likely future for the cryptocurrency space as a whole.

I’d like to suggest that the investment information you are looking for is not anywhere to be found in the charts. Rather, it’s in one’s ability to understand and visualize the future of this market.

What kind of investor are you? Let us know in the comment section below!


Images via Shutterstock.


Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

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An Ethereum Classic Fork Snapshot Is Coming Next Week

An Ethereum Classic Fork Snapshot Is Coming Next Week

Next week the ethereum classic (ETC) community is expecting to receive coins from a ‘snapshot’ fork called ‘callisto’ (CLO). The clone will be an exact copy of the ETC chain up until block 5,500,000 and ETC holders will receive a 1:1 ratio of CLO coins.

Also Read: China Censors Cryptocurrency Ads on Search Engines and Social Media

The First High Profile Hard Fork Is About to Get Forked

An Ethereum Classic Fork Snapshot Is Coming Next WeekThe funny thing about ethereum classic is that it was one of the first high profile blockchain splits and ethereum (ETH) holders received a 1:1 ratio of ETC after the hard fork at block 1,920,000. The fork was caused by members of the Ethereum community because they rejected the idea to ‘bail out’ the DAO, an ETH application that lost $150Mn that year. Some individuals firmly believe that ETC is the ‘one true’ Ethereum network. Callisto, however, is not quite like the ETC hard fork as it’s a snapshot much like bitcoin gold, bitcoin diamond, and the other clones that appeared over the past year.

Callisto Developers Believe CLO Will Have Better Smart Contract Security

Essentially CLO coins will share the same history as the existing ETC chain but from block 5,500,000 and forward the network will be its own. The cloning is expected to happen next week sometime on or after March 2. The reason behind the snapshot is because CLO developers believe there are issues regarding ETC’s smart contract design. According to the CLO white paper ETC is susceptible to smart contract hacks much like the DAO platform. The CLO developers plan to create a “Official Smart-contract Auditing Department of CLO & ETC,” so one could assume the snapshot may be considered an extension of the ETC community.    

“The main goal of callisto is to research and develop a reference implementation of self-sustaining, self-governed, self-funded blockchain ecosystem and development environment,” explains the CLO white paper.  

Callisto aims to establish a secure and contribution-friendly environment for further protocol development and improvements. It will rely on a built-in system of smart-contracts to achieve this goal.

An Ethereum Classic Snapshot Is Coming Next Week
ETC holders will receive a 1:1 ratio of CLO coins after ETC reaches block 5500000.

Cold Staking and a Developer Called Dexaran

There’s little information on the creators of the ETC clone other than the Github page that describes the callisto network project in more detail. The developer working on the project goes by the name Dexaran, and he also has worked on an ICO called ‘DEX.’ Another aspect of the project is the introduction of ‘Cold Staking’ which acts similarly to the Proof of Stake consensus system that rewards currency holders.   

“It should be noted that the ETC does not have any incentives for coin holders — The whole emission is completely controlled by miners, and their influence grows with the growth of the network. Callisto introduces a Cold staking protocol that rewards coin holders for being network participants,” explains the callisto team. 

Cold staking is a smart-contract based process that allows CLO holders to earn interest in a total CLO emission when they hold CLO coins at their balances for long enough period of staking time (1 month by default). Cold stakers are not required to run a node to participate in cold staking process. Cold stakers are not validating transactions and the whole system can remain fully PoW (Proof of Work) which is important since ETC adheres to POW consensys.

The ETC Snapshot Follows the Recent Birth of the Litecoin Cash Network

The upcoming ethereum classic snapshot has boosted the price of ETC quite a bit, and the currency had reached a high of $45 two days ago. It also follows the recent litecoin (LTC) snapshot called litecoin cash (LCC) which came to life on February 20. Before the LCC fork, the price of LTC spiked considerably as well but has since lost those gains. The clone has minimal infrastructure and is only worth 2 percent of LTC’s price at $4-5 per LCC.

What do you think about the upcoming ETC snapshot called callisto? Let us know what you think in the comments below.  


Images via Shutterstock, and Pixabay.


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PR: ITT – Here to Discover, Decipher and Deliver Actionable Crypto Trading Alerts for All

ITT - Crypto Trading Alerts

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Introducing Intelligent Trading Technologies (ITT), an innovative platform created to assist crypto enthusiasts of all skill levels navigate the alluring yet perilous waters of the crypto world. Access to a large volume of high quality information is essential to the maintenance of a “winning edge” in every market, but the lack of any semblance of “safety net” coupled with the bizarre world of multiple exchanges, arbitrage, ICOs, forks, airdrops, and with the transient nature of the sector as a whole, amplifies that need acutely. This leads to a paradox in which information is desperately needed but any attempt to find such information results in a deluge of information the filtering of which is impossible for all but the most brilliant of traders. Barring those savants, most traders quickly reach a point at which they can no longer process the torrent of data presented to them and therefore cannot make informed, fully rational, decisions. The ITT platform is poised to become the calm in the center of the storm, a beacon of knowledge and confidence for anyone overwhelmed by the sheer enormity of the crypto markets and their associated information (i.e. everyone).

Investing in cryptocurrency is not a decision one should make lightly. The promise of easy money can blind a person to the very real, and statistically larger, potential to lose money. A lot of money. The pull between the reward and the risk, the fear of missing out on a bull run and the fear of failing to recognize the signs of a bear sell off, the excitement for the promise of distributed ledger technology/directed acyclic graph technology and the fear of glitchy code that can erase millions of dollars in the blink of an eye, coupled with the lack of information or fear of misinformation is enough to keep people on the sidelines and can paralyze even the most seasoned veteran. Fundamentally there is an unparseable mass of conflicting information and the risk of the known unknowns and the unknown unknowns is a risk shared by everyone. Until now. By pairing traditional trading concepts with cutting edge pattern recognition, the ITT platform is able to continuously scan, examine, and interpret information from the crypto markets, taking a firehose of information and turning it into a manageable data set , giving traders as close to a perfect execution strategy to optimize successful trading.

The Inspiration for Intelligent Trading Technologies
Intelligent Trading Technologies was inspired by the needs of its creators. More than a year ago, they began to actively trade in the cryptocurrency markets. They were quickly overwhelmed. Crypto was nothing like they had experienced before and they found themselves spending far more time attempting to isolate the signal from the noise in the crypto markets than they had in any other market they traded in before. The fact that at least one new crypto seemed to pop up each day, the formation of which resulted in numerous loud opinions, many from influential market participants, touting the new currency’s benefits or viciously pointing out its faults didn’t help matters.

Creating the ITT platform was simply their solution to their own struggles and frustrations that stemmed from the ever-expanding cryptocurrency market and their desire to trade in it; but, as is usually the case, necessity became the mother of invention, and they soon realized that the ITT platform was a useful service that could aid cryptocurrency traders across the globe.

“Intelligent trading requires a perfect union between man and machine. Our algorithms run millions of computations per second to deliver only concise and actionable alerts to you.” – Tom Counsell, Head of Engineering and Innovation.

The People Making Intelligent Trading Technologies a Reality
The ITT team is comprised of professionals in artificial intelligence, asset management, capital markets, trading, algorithmic trading, quantitative finance, securities law, and software development. ITT strives to maintain a lead over any competitors by staying up to date with the latest technological advancements in the mechanics of trading, the underlying theories of technical analysis, and progress in the field of AI, and attempts to integrate any such advances into its platform. That being said, Intelligent Trading Technologies do not shy away from forming mutually beneficial partnerships with established companies in the industry if the partnership can enhance or benefit the ITT platform in meaningful ways. This kind of collaboration allows Intelligent Trading Technologies to optimize the ITT platform for its users. In other words, when it comes to improving the platform, the ITT team doesn’t let ego gum up the works. Perfection is the goal, and they are committed pursuing that goal no matter what.

How Intelligent Trading Technologies Can Help Individuals Trade More Effectively
In theory, creating trading alerts seems like an easy task. One simply employs a few savvy traders to analyze existing data and use whatever conclusions said traders have arrived at to determine the perfect time to buy the right cryptocurrency. Unfortunately paying traders with the requisite skill set for such work is cost prohibitive for anyone other than institutions. At the same time, even the most experienced trader at the most elite hedge fund would likely falter when first introduced to the crypto space. Bitcoin has existed for less than a decade, and how many “elite traders” even knew that there were cryptocurrencies other than Bitcoin until at the earliest two years ago? The industry didn’t really explode until 2016. which means that the majority of people actively trading have less than three years experience in cryptocurrency. It is safe to say that what is an easy task in theory is nearly impossible in an industry as new, as big, and as volatile as cryptocurrency is, at least when you rely on humans alone. These are the reasons that the ITT Team has spent countless hours and hundreds of thousands of dollars perfecting trading techniques and developing an AI to isolate the signal from the background noise. The combination of AI and market trading algorithms is the only truly effective way to manage a market as complex as this one.

A Tangible Example of what the ITT Platform Can Do
Inexperienced traders may do their homework and discover a cryptocurrency of a company whose tech they like but they probably haven’t considered that buying crypto isn’t as easy as buying a stock on the NYSE, they have to find the right exchange to purchase said crypto–which may necessitate a transfer into one or more different currencies–until they can even place a trade for the crypto they wanted to buy in the first place. It is highly likely that the distraction of joining new exchanges, trading into intermediary currencies, and waiting for block confirmation of currency transfers will keep such traders from properly accounting for currency risk, the local time in which such an exchange (or even the target company) itself is located in, or the proper route to use to get profits made, if any, back to their native fiat currency. They are simply not going to know the perfect time to make the purchase. Obviously this is highly inefficient, not to mention frustrating, and leads to emotional trading decisions instead of logical and rational ones. ITT’s platform helps individuals trade better by indicating the ideal entry points for a given Crypto, and can help them to time and execute entries and exits. This way they will be able to make sound investment decisions based on analytical reasoning instead of emotional reactions.

Experienced investors benefit as well because they will instantly understand the efficiency of the ITT platform as it decreases the amount of time that they must spend observing various markets, calculating execution times, conversion routes and block confirmations each day, freeing them up to look for new targets. The ITT platform is more than just a simple trading assistant; it’s a means to encourage success in the cryptocurrency markets.

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About Intelligent Trading Technologies:

Intelligent Trading Technologies (ITT) is developing an artificial intelligence-powered trading assistant for the cryptocurrency markets. ITT’s Platform pairs traditional market trading concepts with today’s cutting-edge pattern recognition and machine learning capabilities. These technologies allow the software to continuously scan, analyze, and interpret the massive amount of information available, delivering game-changing trading ideas to you to execute

If you’d like to get in touch with ITT, you can do so on any of the following channels:

• Facebook: https://www.facebook.com/ITT.Token
• Twitter: http://twitter.com/ITT_Token
• Github: https://github.com/intelligenttrading
• Reddit: http://reddit.com/r/ITT_Token
• Telegram: https://t.me/intelligenttrading
• Youtube: https://www.youtube.com/watch?v=1bNNJAjxqDo

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The information provided herein does not constitute investment advice, financial advice, trading advice or any other sort of advice and you should not treat any of the content as such. ITT does not recommend that any cryptocurrency should be bought, sold or held by you and nothing in this article should be taken as an offer to buy, sell, or hold any cryptocurrency. Do conduct your own due diligence and consult your financial advisor before making any investment decision

Contact Email Address
info@intelligenttrading.org
Supporting Link
http://intelligenttrading.org/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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