Category Archives: Bitcoin
Majority of Nigerians Have Faith in Bitcoin: Survey – newsBTC
A recent survey indicates that Nigerian trust Bitcoin more than gold when it comes investments. Read more...
Bitcoin is rightly deemed as the Digital Gold. The cryptocurrency, introduced to the world in 2009 has all the properties of gold, except for the weight and these features arent lost on the Nigerian cryptocurrency community. Bitcoin has a huge presence in African nations, and Nigeria is one such African country which recently ranked high in Google Trends for Bitcoin-related searches. The extent of faith in the cryptocurrency among the community is now known to the world, thanks to a recent survey conducted by Luno a cryptocurrency platform serving the region.
As a part of this survey, Luno sent a series of questions to all its Nigerian customers, and the results didnt come as a surprise. The report states that the trust factor in Bitcoin among Nigerians is at an all-time high, as over 59% of the participants in the survey responding positively to the cryptocurrency. The untrusting ones were about 17% of all survey respondents while the remaining preferred to be neutral.
One of the leading African tech magazines quoted a representative from Luno describing the survey process saying,
We shared a survey with our Nigerian customers which went out to all of our customers. We then reviewed the results for statistical significance, outliers, and errors and compiled the infographic from the data Note that it was only sent to Luno customers, so the data might be slightly skewed towards our customer preferences (as opposed to all Nigerian Bitcoin users), but we enjoy the highest trading volume of Nigerian Bitcoin exchanges as per publicly available volume data so it should be somewhat similar across the board. We aim to do much more research and share the results with the media and Bitcoin community in the coming months.
While the results may not be 100% accurate as those participating in the survey were already onboard Luno platform, which makes them existing cryptocurrency users, potentially having a biased opinion towards their favorite digital currency. Also, many of these respondents were found to be in favor of purchasing Bitcoin over gold as they expect the cryptocurrencys value to appreciate much faster than that of the yellow metal.
The results of the survey were published by Luno in the form of an infographic, along with a promise to provide more information as soon as it finishes in-depth research and analysis of not just the platforms users but other individuals as well.
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Majority of Nigerians Have Faith in Bitcoin: Survey - newsBTC
Bitcoin Unlimited vs Extension Blocks The Merkle – The Merkle
Earlier this week, a new bitcoin scaling proposal has started gaining some traction. Extension blocks, as this concept is called, aims to provide an alternative solution to Segregated Witness and Bitcoin unlimited. What is rather interesting is how this solution draws some parallels with SegWit, yet it is very different from Bitcoin Unlimited. Now is a good time to check how both solutions compare to one another.
Most cryptocurrency enthusiasts are well aware of what Bitcoin Unlimited proposes. People supporting this bitcoin scaling solution acknowledge there is a growing need for much larger network blocks. While SegWit also acknowledges that need, it proposes a smaller increase compared to that of Bitcoin Unlimited. BU envisions a 2MB block size increase in the short term, which is then increased exponentially as time progresses.
However, Bitcoin Unlimited would effectively serve as a hard fork, whereas SegWit is a soft fork solution. A hard fork is irreversible and requires everyone on the network to upgrade their client. Moreover, Bitcoin Unlimited seemingly puts more power into the hands of the miners, which eventually leads to centralization. Not necessarily a positive development, especially when considering their software seemingly hasnt gone through QA at this stage.
Moreover, it appears the economic majority is not in favor of Bitcoin unlimited by any chance. A few bugs discovered in the BU source code are not helping matters either. Right now, it is doubtful this solution will activate on the main bitcoin network. Bitcoin Unlimited may continue to exist as an altcoin in the future, though. Only time will tell what will happen to BU, as all possibilities are still on the table.
Unlike Bitcoin Unlimited, Extensions Blocks is a proposal that can seemingly coexist with how Bitcoin Core developers envision the future of this popular cryptocurrency. Bitcoin Unlimited has no support for the Lightning network, whereas Extension Blocks does. Moreover, Extension Blocks addresses the malleability fix similarly to how SegWit should solve this problem yet it also allows for a block size increase along the lines of what BU supporters want to see.
To achieve this goal, Extension Blocks will use an opt-in second layer for an on-chain capacity increase. Additionally, Extension Blocks brings some intriguing features to the bitcoin ecosystem, including smart contract technology. Plus, the proposal provides fungibility, a trait bitcoin has been lacking ever since its inception. However, all of these features are opt-in and will not be enforced upon all network users. Everyone can choose to make use of these new features or simply accept the malleability fix and block size increase.
Similarly to SegWit, Extension Blocks will be activated through a soft fork. It will also increase the block size immediately, just like Bitcoin Unlimited would do. Further block size increases can be accommodated through additional soft forks. More importantly, Extension Blocks provide a clear path for future innovations, including compatibility with the Lightning Network, MimbleWimble, and Rootstock. However, there are some drawbacks to this proposal, as can be seen in this lengthy post.
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Bitcoin Unlimited vs Extension Blocks The Merkle - The Merkle
No, you can’t avoid taxes by investing in Bitcoin – New York Post
If you think investing in bitcoin or a similar crypto-currency may be a good method for hiding income from the tax man, youd better think again.
While many bitcoin aficionados tout the new virtual currency as a promising alternative to so-called fiat currencies like the US dollar, the IRS considers investments in bitcoin as property deals requiring that capital gains or losses in this usually volatile medium of exchange be considered like stocks or bond sales and reportable on Form 8949.
But compliance with this requirement is virtually nonexistent, at least if you go by numbers reported by the IRS.
The agency began going after Coinbase, the largest bitcoin exchange operating in the States, in November 2016, requesting that the San Francisco-based company turn over data and complete transactions on every one of its more than 14 million accounts from 2013 to 2015.
But in court papers filed by the IRS this month after Coinbase refused to honor the request, complaining that it was overly broad the tax-collecting agency reported that only 802 individuals reported a transaction on Form 8949 using a description likely related to bitcoin for 2015, the most recently concluded tax year. And this is apparently no fluke, with only 807 of the Form 8949s filed for 2013 and 893 for 2014.
This low level of reporting occurred during the same period (2013-2015) that the value of the currency (in dollars) went on a bumpy ride, skyrocketing from less than $20 to more than $1,100, presumably generating significant capital gains for many investors.
In my view, 800 reports per year of profits and losses in virtual currency transactions is ridiculously low, says Martin Mushkin, an attorney specializing in bitcoin law.
The publicity given to this proceeding now and the forthcoming enforcement actions would result in a substantial amount of tax collections, he adds. The anonymity of bitcoin should not be allowed to foster tax evasion.
Coinbase, for its part, blames the IRS itself for this underreporting, and its chief executive has called for creation of a Form 1099-B to be issued to each of its clients participating in a potentially taxable transaction a proposal that the IRS has called low priority because of cuts to its budget.
Were very serious about complying with the laws and we actually support the idea that people who ought to pay their taxes do so, says Michael Lempres, Coinbase chief legal and risk officer. But the demand for three years worth of transactions conflicts with privacy interests.
Mushkin and others familiar with the case say they expect Coinbase to cut a deal with the IRS. I suspect that, as we speak, Coinbase is preparing an answer to the anticipated Order to Show Cause and negotiating the terms of the summons, he says. The papers show the parties have been talking, and Coinbase will try to cut this down.
Coinbase is already registered with FinCEN, the Treasurys Financial Crimes Enforcement Center, obliging the exchange to report transactions in excess of $10,000 per day and suspected transactions to be structured to avoid the $10,000 reporting threshold (such as multiple $9,750 transactions). The Coinbase response, Mushkin predicts, will be to initially limit the subpoena to FinCEN reporting accounts and smaller accounts with large turnover volumes.
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No, you can't avoid taxes by investing in Bitcoin - New York Post
The iCloud hackers’ bitcoin ransom looks like a fake | PCWorld – PCWorld
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A group of hackers who claimed to hold millions of iCloud accounts for ransom said on Friday they'd been paid. But one bitcoin expert says that's bogus.
The Turkish Crime Family grabbed headlines last month by claiming they had the stolen login credentials for more than 700 million icloud.com, me.com and mac.com accounts. They demanded increasing ransoms from Apple while threatening to wipe the data from devices connected to the affected accounts if it did not.
On Friday, the hackers tweeted that they had been paid US$480,000 in bitcoin. As proof, the group posted a link showing a transaction on Blockchain.info, a popular bitcoin wallet.
We were told by our negotiator that we have come to a final agreement with Apple, the hacking group tweeted prior to receiving the payment.
However, the hackers actually tweeted out a transaction to an "internal treasury operation at a bitcoin exchange," according to Jonathan Levin, co-founder at Chainalysis, a provider of anti-money laundering software for bitcoin.
"We have positively identified that the inputs and outputs of that transaction are controlled by a single bitcoin exchange," Levin said in an email. The transaction was part of an internal money deposit process at a Korean bitcoin exchange, he said.
Apple didnt respond to a request for comment. The tech giant has said that it never suffered any such breach. The stolen login credentials that the hackers obtained appeared to come from breaches at other third-party services, Apple said.
Security researchers suspect that's true, and they believe the Turkish Crime Family has exaggerated its hacking claims.
The hacking group also didn't respond to a request for comment.
Michael Kan covers security for IDG News Service.
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The iCloud hackers' bitcoin ransom looks like a fake | PCWorld - PCWorld
Will self-regulation by Bitcoin players spur RBI to authorise use of virtual currencies? – YourStory.com
The Digital Asset and Blockchain Foundation of India aims to create awarenessabout the benefits and risks of cryptocurrencies, liaise with regulators and get clarity on taxation, attract investment and set up incubators to promote startups.
Four years after it first warned the users of virtual currencies (VCs), including Bitcoin, in 2013 of the potential financial, operational, legal, and security-related risks that they were exposing themselves to, the Reserve Bank of India(RBI) recently again expressed concern over the risk-prone Bitcoin players, who have no authorisation to deal with Bitcoin.
But these warnings seem to have had no effect on the Bitcoin and cryptocurrency players, who that have now gone a step further and set upthe Digital Asset and Blockchain Foundation of India (DABFI) as a kind of self-regulatory body to lay down rules and regimes for the trading of Bitcoins and other blockchain-based digital assets.
The DABFI initiative is being spearheaded by Bitcoin startups such as SearchTrade, Zebpay, Unocoin, and Coinsecure, and follows from the need to ensure an orderly and transparent growth of the virtual currency market. The foundationis mandated to standardise KYC (Know Your Customer), AML (Anti-Money Laundering), and STR (Suspicious Transaction Report) norms for the member companies and create awareness about the benefits and risks of crypto-currency.
In addition, DABFI will alsoliaise with regulators and get clarity on taxation, attract investment and set up incubators to promote startups, build global relations and actively engage with the international community, and create a public website and regularly print reports on and around Bitcoin and the blockchain.
The foundation is currently working on creating awareness among investors and firms against such schemes and programmes that lead to problematic transactions and mistrust around cryptocurrencies. Vishal Gupta, CEO, Searchtrade and founding member of DABFI, says,
Bitcoin and other cryptocurrencies have tremendous benefits for most marginalised people, merchants, tax departments, and regulatory authorities. It has better price discovery, is anti-inflationary, and the transactions are irreversible.
Vishal says he appreciates RBIs warning in the light of many multi-level marketing (MLM) and network marketing companies offering cloud mining and alt coin, and promising unreal returns to investors. These companies, according to him, are trying to ride the popularity of Bitcoin and trapping uninformed investors with their schemes.
According to Bitcoin startups, since there is no formal recognition of Bitcoin or cryptocurrency, raising capital from accredited investors becomes a major challenge for them. Besides, there is little clarity about the taxation that is applicable to various types of Bitcoin transactions.
The RBI, on its part, maintains that it has not given any licenceor authorisation to any entityor company to deal with Bitcoin or any virtual currency, and as a result, any user, holder, investor, or trader dealing with virtual currencies will be doing so at their own risk.
In response to RBI's stance, Vishal says there is no real need to apply for any licence to deal in Bitcoin, since it has not been definitively identified as a currency yet. So, most businesses treat it as commodity trading, which does not require any sort of licensing.
Bitcoin players believe that self-regulation has worked for various industries that are not covered by any regulation. The Code for Self-Regulation in Advertising, for instance, adopted by the Advertising Standards Council of India (ASCI) has been widely accepted by regulators (through incorporation in the relevant rules), courts, and industry alike. DABFI has engaged an international law firm, Nishith Desai Associates, to assist it in developing norms for self-regulation.
Self-regulation does not work outside the framework of existing laws, but rather tries to create best practices for participating members to comply with established norms. Since blockchain is a relatively new technology, one that is still evolving, self-regulation helps, since experts who are in the know of development and working in the industry can keep pace with rapid developments and study compliances with the law on a day-to-day basis, says Vishal.
He emphasises that there are around 400,000 to 500,000 people who have bought or sold Bitcoin, and that the total market size is approximately Rs 2,000 crore a year in India. Most investors primarily use it as an investment rather than as a currency. Think of it as digital gold rather than currency, says Vishal. According to Mohit Kalra, CEO and Founder, Coinsecure,
"Regulating something so decentralised as Bitcoin is not an easy task. By the time authorities figure it out, all DABFI members will be working on self-regulation to ease out complications for the authorities and the community in the future.
Referring to the RBI caution, Sandeep Goenka, Co-founder of Zebpay, says, "The cautionary note addressed to the regular public is correct in its intention. Cryptocurrencies do face technical risks. However, the cautionary note should not be used against companies who are trying to do legitimate business and self-regulating themselves.
The Digital Asset and Blockchain Foundation of India is an association of people who are keen to propagate the use of digital assets like Bitcoin and Ethereum within India. It is engaged in educating people about the risk associated withinvesting and trading in cryptocurrencies. It also creates and propagates practices Bitcoin businesses must adhere to based on consultations within the industry, as well as with regulators and various other stakeholders. in addition, DABFI has organised various events, bringing in Indian and overseas experts to share their experiences in Bitcoin so as to help people gain a better understanding of the subject.
Cryptocurrencies and blockchain are poised to have a profound impact on both Indian as well as global economic landscape. Beyond currency, blockchain development is now moving into the space of decentralised contract and record management. This has huge implications for transparent governance and land record management, says Vishal.
Website:DABFI
Bitcoin Mining Retirement Plan or Missed Opportunity? – The Merkle
One of the most appealing aspects of Bitcoin is the ability to create it out of thin air via a process known as mining. While thats a bit of an oversimplification (earning Bitcoin is more about contributing hardware than alchemy), mining remains an incentive for getting on board with Satoshi Nakamotos magic internet money but is mining still a feasible activity for the average personalmost a decade after Bitcoinfirst appeared?
Assuming that average person is somebody with an equally average computer, the answer is no, simply because the era when mining was profitable with off-the-shelf graphics cards is long gone. Mining with a PC isstill possible but the viability of the undertaking hinges on the amount of gigahertz per second a device can produce: a new NVIDIA GeForce GTX 1080 can be overclocked to 4.4GHz while a specialized Antminer S9 comes in at 14THz.
The difference between gaming components and specialized ASIC miners in terms of power is therefore enormous. With electricity costs, mining on a high-end graphics processor produces a loss of about $629 a year; the Antminer S9 makes about $1,000 in profit. However, theres a problem the S9 is very expensive, costing about $2100 (power supply sold separately), which means that in almost every case, solo mining isnt really worth it.
The obvious solution is to pool resources. If money is no option, buying a thousand ASICs and a small power plant is a good business plan but regular 9-5ers have a better shot at earning Bitcoin by joining a mining pool, or group of like-minded people. A piece of software like GuiMiner comes pre-configured for the most popular mining pools and provides an easy-to-use interface for operating each miner.
Solo mining can be a luck-based endeavor that pays out over a course of years. With a mining pool, the rewards arent as valuable but they can be more consistent. AGuiMiner pool may alsosupport in-app balance management, including the withdrawal of funds. Ultimately, forging ahead as a Bitcoin maverick or banding together to mine is a decision based on things like finances and access to hardware.
So, when did mining get so tough? Bitcoin has a creeping difficulty level, both in terms of how easy it is to dig out the cryptocurrency and how much there is to be found. Before going into why though, its important to understand what mining is; briefly, its the process by which Bitcoin transactions are added to a permanent ledger known as the blockchain. Miners donate computing power to solve the equations central to the operation of the Bitcoin network.
Mining is designed to get harder over time to compensate for the increasing capabilities ofmodern ASICs, with that growing complexity preventing super-powered hardware devouring all the available Bitcoins overnight. Similarly, to ensure a consistent supply of coins, an event called the Halvening cuts the possible rewards that can be earned for completing a block every four years, the most recent one occurring in July 2016.
So, in summary, yes it is possible to make money from Bitcoin mining but, for most people, its either a community endeavor or a veryexpensive one.
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Bitcoin Mining Retirement Plan or Missed Opportunity? - The Merkle
BitPay CEO Stephen Pair: Bitcoin Unlimited Would Materially Degrade the Network – Bitcoin Magazine
Bitcoin Magazine | BitPay CEO Stephen Pair: Bitcoin Unlimited Would Materially Degrade the Network Bitcoin Magazine BitPay CEO Stephen Pair has been more vocal about his company's stance on Bitcoin's scaling debate over the past few weeks, and his most recent attempt to further clarify the Bitcoin payment processing giant's view on the matter was on episode 325 of ... 1Hash Bitcoin Pool Comes out against Bitcoin Unlimited |
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BitPay CEO Stephen Pair: Bitcoin Unlimited Would Materially Degrade the Network - Bitcoin Magazine
What Will It Take For A Bitcoin ETF To Get Approved? – Forbes
Forbes | What Will It Take For A Bitcoin ETF To Get Approved? Forbes On March 10, 2017, the SEC released a long-awaited ruling on its first Bitcoin Exchange Traded Fund (ETF) proposal, electing to disapprove the proposal. A Bitcoin ETF would have been a major step forward for the new currency. Since Bitcoin's launch in ... Why is the SEC Afraid of Bitcoin ETFs? SEC rejects second Bitcoin ETF due to lack of regulatory oversight |
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What Will It Take For A Bitcoin ETF To Get Approved? - Forbes
Why Bitcoin May Split In Two And How To Prevent It – Forbes
Forbes | Why Bitcoin May Split In Two And How To Prevent It Forbes These are the show notes for the Unchained podcast, sponsored by OnRamp. Listen to my whole interview with Jeff and Charlie on Google Play, iTunes, Stitcher or TuneIn Radio. While bitcoin's death has been pronounced many times, the threat to the ... |
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Why Bitcoin May Split In Two And How To Prevent It - Forbes
Bitcoin Is Mired In A Civil War. Can This Proposal Save It? – Forbes
Forbes | Bitcoin Is Mired In A Civil War. Can This Proposal Save It? Forbes For eight years, Bitcoin magic internet money as its fans like to call it has defied its detractors and survived numerous stumbles to become worth more than $1,100 a coin. But in the last couple months, a two-year-long standoff over how to ... F2Pool Tests SegWit on Litecoin, May Support It on Bitcoin After Testing Op-ed: A New Bitcoin Blocksize Proposal Goes Nowhere Purse Proposal Touts Extension Blocks as Bitcoin Scaling Solution |
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Bitcoin Is Mired In A Civil War. Can This Proposal Save It? - Forbes