Category Archives: Cryptocurrency
What is cryptocurrency? – cointelegraph.com
A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.
There have been many attempts at creating a digital currency during the 90s tech boom, with systems like Flooz, Beenz and DigiCash emerging on the market but inevitably failing. There were many different reasons for their failures, such as fraud, financial problems and even frictions between companies employees and their bosses.
Notably, all of those systems utilized a Trusted Third Party approach, meaning that the companies behind them verified and facilitated the transactions. Due to the failures of these companies, the creation of a digital cash system was seen as a lost cause for a long while.
Then, in early 2009, an anonymous programmer or a group of programmers under an alias Satoshi Nakamoto introduced Bitcoin. Satoshi described it as a peer-to-peer electronic cash system. It is completely decentralized, meaning there are no servers involved and no central controlling authority. The concept closely resembles peer-to-peer networks for file sharing.
One of the most important problems that any payment network has to solve is double-spending. It is a fraudulent technique of spending the same amount twice. The traditional solution was a trusted third party - a central server - that kept records of the balances and transactions. However, this method always entailed an authority basically in control of your funds and with all your personal details on hand.
In a decentralized network like Bitcoin, every single participant needs to do this job. This is done via the Blockchain - a public ledger of all transaction that ever happened within the network, available to everyone. Therefore, everyone in the network can see every accounts balance.
Every transaction is a file that consists of the senders and recipients public keys (wallet addresses) and the amount of coins transferred. The transaction also needs to be signed off by the sender with their private key. All of this is just basic cryptography. Eventually, the transaction is broadcasted in the network, but it needs to be confirmed first.
Within a cryptocurrency network, only miners can confirm transactions by solving a cryptographic puzzle. They take transactions, mark them as legitimate and spread them across the network. Afterwards, every node of the network adds it to its database. Once the transaction is confirmed it becomes unforgeable and irreversible and a miner receives a reward, plus the transaction fees.
Essentially, any cryptocurrency network is based on the absolute consensus of all the participants regarding the legitimacy of balances and transactions. If nodes of the network disagree on a single balance, the system would basically break. However, there are a lot of rules pre-built and programmed into the network that prevents this from happening.
Cryptocurrencies are so called because the consensus-keeping process is ensured with strong cryptography. This, along with aforementioned factors, makes third parties and blind trust as a concept completely redundant.
In the past, trying to find a merchant that accepts cryptocurrency was extremely difficult, if not impossible. These days, however, the situation is completely different.
There are a lot of merchants - both online and offline - that accept Bitcoin as the form of payment. They range from massive online retailers like Overstock and Newegg to small local shops, bars and restaurants. Bitcoins can be used to pay for hotels, flights, jewelery, apps, computer parts and even a college degree.
Other digital currencies like Litecoin, Ripple, Ethereum and so on arent accepted as widely just yet. Things are changing for the better though, with Apple having authorized at least 10 different cryptocurrencies as a viable form of payment on App Store.
Of course, users of cryptocurrencies other than Bitcoin can always exchange their coins for BTCs. Moreover, there are Gift Card selling websites like Gift Off, which accepts around 20 different cryptocurrencies. Through gift cards, you can essentially buy anything with a cryptocurrency.
Finally, there are marketplaces like Bitify and OpenBazaar that only accept cryptocurrencies.
Read more in the article What can I buy with Bitcoins?
Many people believe that cryptocurrencies are the hottest investment opportunity currently available. Indeed, there are many stories of people becoming millionaires through their Bitcoin investments. Bitcoin is the most recognizable digital currency to date, and just last year one BTC was valued at $800. In November 2017, the price of one Bitcoin exceeded $7,000.
Ethereum, perhaps the second most valued cryptocurrency, has recorded the fastest rise a digital currency ever demonstrated. Since May 2016, its value increased by at least 2,700 percent. When it comes to all cryptocurrencies combined, their market cap soared by more than 10,000 percent since mid-2013.
However, it is worth noting that cryptocurrencies are high-risk investments. Their market value fluctuates like no other assets. Moreover, it is partly unregulated, there is always a risk of them getting outlawed in certain jurisdictions and any cryptocurrency exchange can potentially get hacked.
If you decide to invest in cryptocurrencies, Bitcoin is obviously still the dominant one. However, in 2017 its share in the crypto-market has quite dramatically fallen from 90 percent to just 40 percent. There are many options currently available, with some coins being privacy-focused, others being less open and decentralized than Bitcoin and some just outright copying it.
While its very easy to buy Bitcoins - there are numerous exchanges in existence that trade in BTC - other cryptocurrencies arent as easy to acquire. Although, this situation is slowly improving with major exchanges like Kraken, BitFinex, BitStamp and many others starting to sell Litecoin, Ethereum, Monero, Ripple and so on. There are also a few other different ways of being coin, for instance, you can trade face-to-face with a seller or use a Bitcoin ATM.
Once you bought your cryptocurrency, you need a way to store it. All major exchanges offer wallet services. But, while it might seem convenient, its best if you store your assets in an offline wallet on your hard drive, or even invest in a hardware wallet. This is the most secure way of storing your coins and it gives you full control over your assets.
As with any other investment, you need to pay close attention to the cryptocurrencies market value and to any news related to them. Coinmarketcap is a one-stop solution for tracking the price, volume, circulation supply and market cap of most existing cryptocurrencies.
Depending on a jurisdiction you live in, once youve made a profit or a loss investing in cryptocurrencies, you might need to include it in your tax report. In terms of taxation, cryptocurrencies are treated very differently from country to country. In the US, the Internal Revenue Service ruled that Bitcoins and other digital currencies are to be taxed as property, not currency. For investors, this means that accrued long-term gains and losses from cryptocurrency trading are taxed at each investors applicable capital gains rate, which stands at a maximum of 15 percent.
Miners are the single most important part of any cryptocurrency network, and much like trading, mining is an investment. Essentially, miners are providing a bookkeeping service for their respective communities. They contribute their computing power to solving complicated cryptographic puzzles, which is necessary to confirm a transaction and record it in a distributed public ledger called the Blockchain.
One of the interesting things about mining is that the difficulty of the puzzles is constantly increasing, correlating with the number of people trying to solve it. So, the more popular a certain cryptocurrency becomes, the more people try to mine it, the more difficult the process becomes.
A lot of people have made fortunes by mining Bitcoins. Back in the days, you could make substantial profits from mining using just your computer, or even a powerful enough laptop. These days, Bitcoin mining can only become profitable if youre willing to invest in an industrial-grade mining hardware. This, of course, incurs huge electricity bills on top of the price of all the necessary equipment.
Currently, Litecoins, Dogecoins and Feathercoins are said to be the best cryptocurrencies in terms of being cost-effective for beginners. For instance, at the current value of Litecoins, you might earn anything from 50 cents to 10 dollars a day using only consumer-grade hardware.
But how do miners make profits? The more computing power they manage to accumulate, the more chances they have of solving the cryptographic puzzles. Once a miner manages to solve the puzzle, they receive a reward as well as a transaction fee.
As a cryptocurrency attracts more interest, mining becomes harder and the amount of coins received as a reward decreases. For example, when Bitcoin was first created, the reward for successful mining was 50 BTC. Now, the reward stands at 12.5 Bitcoins. This happened because the Bitcoin network is designed so that there can only be a total of 21 mln coins in circulation.
As of November 2017, almost 17 mln Bitcoins have been mined and distributed. However, as rewards are going to become smaller and smaller, every single Bitcoin mined will become exponentially more and more valuable.
All of those factors make mining cryptocurrencies an extremely competitive arms race that rewards early adopters. However, depending on where you live, profits made from mining can be subject to taxation and Money Transmitting regulations. In the US, the FinCEN has issued a guidance, according to which mining of cryptocurrencies and exchanging them for flat currencies may be considered money transmitting. This means that miners might need to comply with special laws and regulations dealing with this type of activities.
Read more in the article How to Mine Bitcoin: Everything You Need to Know.
If you happen to own a business and if youre looking for potential new customers, accepting cryptocurrencies as a form of payment may be a solution for you. The interest in cryptocurrencies has never been higher and its only going to increase. Along with the growing interest, also grows the number of crypto-ATMs located around the world. Coin ATM Radar currently lists almost 1,800 ATMs in 58 countries.
First of all, you need to let your customers know that your business accepts crypto coins. Simply putting a sign by your cash register should do the trick. The payments can then be accepted using hardware terminals, touch screen apps or simple wallet addresses through QR codes.
There are many different services that you can use to be able to accept payments in cryptocurrencies. For example, CoinPayments currently accepts over 75 different digital currencies, charging just 0.5 percent commission per transaction. Other popular services include Cryptonator, CoinGate and BitPay, with the latter only accepting Bitcoins.
In the US, Bitcoin and other cryptocurrencies have been recognized as a convertible virtual currency, which means accepting them as a form of payment is exactly the same as accepting cash, gold or gift cards.
For tax purposes, US-based businesses accepting cryptocurrencies need to record a reference of sales, amount received in a particular currency and the date of transaction. If sales taxes are payable, the amount due is calculated based on the average exchange rate at the time of sale.
As cryptocurrencies are becoming more and more mainstream, law enforcement agencies, tax authorities and legal regulators worldwide are trying to understand the very concept of crypto coins and where exactly do they fit in existing regulations and legal frameworks.
With the introduction of Bitcoin, the first ever cryptocurrency, a completely new paradigm was created. Decentralized, self-sustained digital currencies that dont exist in any physical shape or form and are not controlled by any singular entity were always set to cause an uproar among the regulators.
A lot of concerns have been raised regarding cryptocurrencies decentralized nature and their ability to be used almost completely anonymously. The authorities all over the world are worried about the cryptocurrencies appeal to the traders of illegal goods and services. Moreover, they are worried about their use in money laundering and tax evasion schemes.
As of November 2017, Bitcoin and other digital currencies are outlawed only in Bangladesh, Bolivia, Ecuador, Kyrgyzstan and Vietnam, with China and Russia being on the verge of banning them as well. Other jurisdictions, however, do not make the usage of cryptocurrencies illegal as of yet, but the laws and regulations can vary drastically depending on the country.
Read more: Is Bitcoin Legal
(stats retrieved on Nov. 10, 2017)
Unlike most traditional currencies, cryptocurrencies are digital, which entails a completely different approach, particularly when it comes to storing it. Technically, you dont store your units of cryptocurrency; instead its the private key that you use to sign for transactions that need to be securely stored.
There are several different types of cryptocurrency wallets that cater for different needs. If your priority is privacy, you might want to opt for a paper or a hardware wallet. Those are the most secure ways of storing your crypto funds. There are also cold (offline) wallets that are stored on your hard drive and online wallets, which can either be affiliated with exchanges or with independent platforms.
Read more in the article Bitcoin Wallets for Beginners: Everything You Need to Know.
There are a lot of different options when it comes to buying Bitcoins. For example, there are currently almost 1,800 Bitcoin ATMs in 58 countries. Moreover, you can buy BTC using gift cards, cryptocurrency exchanges, investment trusts and you can even trade face-to-face.
When it comes to other, less popular cryptocurrencies, the buying options arent as diverse. However, there are still numerous exchanges where you can acquire various crypto-coins for flat currencies or Bitcoins. Face-to-face trading is also a popular way of acquiring coins. Buying options depend on particular cryptocurrencies, their popularity as well as your location.
Read more in the article How to Buy Bitcoin: Best Practices, Where to Buy, Tips.
See the full list here: Top People In Blockchain.
Bill Gates, co-founder of Microsoft, investor and philanthropist:
Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you dont have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient. [SOURCE]
Richard Branson, founder of Virgin Galactic and more than 400 other businesses:
Well, I think it is working. There may be other currencies like it that may be even better. But in the meantime, theres a big industry around Bitcoin.People have made fortunes off Bitcoin, some have lost money. It is volatile, but people make money off of volatility too. [SOURCE]
Al Gore, former Vice President of the United States:
When Bitcoin currency is converted from currency into cash, that interface has to remain under some regulatory safeguards. I think the fact that within the Bitcoin universe an algorithm replaces the function of the government[that] is actually pretty cool. [SOURCE]
Eric Schmidt, executive chairman of Google:
[Bitcoin] is a remarkable cryptographic achievement The ability to create something which is not duplicable in the digital world has enormous valueLots of people will build businesses on top of that. [SOURCE]
Peter Thiel, co-founder of PayPal:
PayPal had these goals of creating a new currency. We failed at that, and we just created a new payment system. I think Bitcoin has succeeded on the level of a new currency, but the payment system is somewhat lacking. Its very hard to use, and thats the big challenge on the Bitcoin side. [SOURCE]
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What is cryptocurrency? - cointelegraph.com
Blockchain Will Survive A Cryptocurrency Apocalypse
A year ago, the idea that Bitcoin and cryptocurrencies were going to change the world was becoming the consensus opinion. Today, not so much.
The digital currencynow trades below $5,000. Its 77% off its high near $20,000 in January. Other cryptos are collapsing, too.
Blockchain technology, cryptocurrency mining. Server roomGetty
There is a catalyst. People who follow digital tokens blame thehard forkof Bitcoin Cash. The smaller, namesake cryptocurrency is itself a fork of Bitcoin proper. But last week, its developers and miners could not agree on the future of the digital token. So they decided to split into two competing cryptos, Bitcoin ABC and Bitcoin Satoshis Vision (SV).
If that seems like an inherently bad idea, it is. Bitcoin is an open source project. Developers are free to duplicate the base code and create cryptocurrencies at will. And they have. As of November 2018, there are 2,502 cryptocurrencies, according to alistcompiled at Investing.com. The cumulative market capitalization of these tokens is $142 billion, although it had been much higher.
Forgive me. Im burying the lede. The problem with Bitcoin, and cryptocurrency in general, is not forking. Its that developers should not be able tocreatecurrency, at all.
I began writing inJanuarythat cryptocurrencies were where the internet was in the dot-com era, and inFebruarythat most of these thousands of cryptos were headed to zero. At the time, it was not a popular position. I prefaced my view on two things every potential investor needs to understand about me too digital coins: There is no use case, and worse, its unlikely they will ever represent a store of value.
Keep in mind, many things can represent a store of value. Collectibles like art, baseball cards and signed memorabilia immediately come to mind. Cryptocurrencies, at least the vast majority of them, will never be that.
Bill Harris, a former chief executive officer atPayPal, made headlines in August when he wrote atRecode: OK, Ill say it: Bitcoin is a scam.
Harris argues Bitcoin is a pump-and-dump scheme, where promoters push up the value of dubious investments with hype and relentless advocacy. As the price surges and enthusiasm is greatest, they dump everything, leaving unsuspecting investors holding worthless securities.
Admittedly, I have made this case about so-called alternative coins. Investing in an Initial Coin Offering is like speculating in a highly promoted junior gold mining company where the prospect of finding actual gold is nil. There will be price volatility and plenty of promises made. But in the end, the investment is worthless. And it was always going to be worthless.
But Harris is conflating Bitcoin with alternative coins. That is a mistake, I believe.
A pure digital currency is a good idea.It takes power away from central authority. The problem is oversupply. There are currently too many coins and too many charlatans.
This will pass. The Securities and Exchange Commission will round up the fraudsters. Their fake investment premises will lead to a great reckoning. Most ICOs will go to zero because they will be unable to pass the test of legitimate government oversight.
That could leave Bitcoin as one of the last digital coins standing. When that happens, my guess is it will ultimately be more valuable than it is today. However, there is plenty of pain ahead as pump-and-dump schemes are uncovered, and most coins collapse souring the mood for all their peers.
The play for stock investors is blockchain, Bitcoins cryptographic infrastructure
Ultimately, this digital ledger system is going to find its way into global supply chains and financial services because it systematically removes middling trusted agents for verification.
Blockchain will make legions of accountants, lawyers and back office personnel redundant.
IDC, a global information technology research firm, sees blockchain as part of alarger digital transformation. The shift could be worth $7 trillion by 2022.
Microsoftwas an early convert to the power of blockchain. Itbegan workingwith financial services start-ups in 2016. More recently, the Redmond, Wash., software giant has been touting the scalability of its Azure cloud computing platform to run ledger systems. The company is even working on a blockchain-as-a-service tool.
Shares trade at 20x forward earnings. The market capitalization has come down to $780 billion in the last leg of the tech wreck. The stock would be a great pickup in the low $90s.
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Blockchain Will Survive A Cryptocurrency Apocalypse
Cryptocurrency – Simple English Wikipedia, the free encyclopedia
digital medium of exchange
A cryptocurrency is a medium of exchange, that is designed to work like a currency. Usually, cryptocurrencies use features found in strong cryptography, such as digital signatures to secure financial transactions, control the creation of additional units, and verify the transfer of assets.[1][2][3] The first of them were created to be independent of a government-issued currency.
Cryptocurrencies use decentralized control[4] as opposed to centralized electronic money and central banking systems.[5] The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain [6], that serves as a public financial transaction database.[7][8]Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency.[9] Since then, over 4,000 altcoin (alternative coin) variants of bitcoin have been created.
In many cases, cryptocurrencies cannot be converted to real currencies; it is only possible to convert them to other cryptocurrencies, or to use them to buy things. Some cryptocurrencies can be converted to real currrencies: They usually have a high volatility, and using them carries a high risk.[10] They are also a target for so-called Pump-and-Dump-Attacks.[11] They act like a big distributed economic system: As they are not issued or controlled by central banks, their value is difficult to influence: For this reason, they cannot really take the place of a stable currency.[12]
Cryptocurrencies are prone to speculation, which makes buliding a system of more or less stable exchange rates very difficult.[13] Another problem is the inequality of distribution: Many cryptocurrencires are held by only few people. As an example: about 1.000 people hold half of the total amount of bitcoins in the world. This means that if any of these persons starts using their cryptocurrency, this has an effect on the exchange rate. It also means that these people have a great influence on the value of the currency, and are able to change its value easily.[14] The currency itself only documents ownership changes. Exchange rates of cryptocurrencies are established outside the system. Exchange rates are issued by brokers and traders; their indication is no guarantee that the currency is traded at the value proposed. In itself, the unit of cryptocurrency has no value.
In contrast to cyptocurrencies, real currencies are issued and controlled by central banks. Certain econnomic phenomena such as inflation or deflation may change the value (and exchange rate) of a currency. The people who own units of the currency have no direct influence on its value.
According to Jan Lansky, a cryptocurrency is a system that meets six conditions:[15]
In March 2018, the word "cryptocurrency" was added to the Merriam-Webster Dictionary.[16]
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Cryptocurrency - Simple English Wikipedia, the free encyclopedia
Is Cryptocurrency Dead for Good? | Investopedia
Since it was created, nearly a decade ago, bitcoinand the cryptocurrency market it spawnedhavefaced a constant stream of doomsayers declaring the coin dead or headed for obsolescence. Even so, ten years later, a singlebitcoin is worth fourfigures, and it appears to have found some stability in tandem with its growing maturity. The same cant be said for the sector which now includes thousands of coins and tokens, each of which exhibits varying degrees of success.
Moreover, for all theirpromise,cryptocurrenciesstill can't seem tobreak into the mainstream. There are still very few merchants that accept crypto payments, and most financial services continue to be settled in fiat currencies. Critics saycrypto may have been a flash in the pan. For supporters, though, the signs are clear that even with the current culling of the crypto ranks, the sector will emerge stronger.
The real question is, which group is right?
As of August 2018, the number of cryptocurrencies on the market liessomewhereabove 2,000. This should be a clear signal that the sector is booming, but the numbers are deceptive. A report issued in July of this year found that more than 800 of those are essentially dead, that isworth less than one cent. This comes on the heels of reports of rampant scams and fraud in the initial coin offering (ICO) market, and other signs of trouble for the sector.
The trouble starts with bitcoin itself, as the cryptocurrency faced substantial difficulty in 2018. After reaching stratospheric heights with a near-$20,000 valuation in December 2017, bitcoin prices came crashing down in January, and have struggled to reach last years' heights. Additionally, the value of crypto transactions carried out, which was astronomical in the first quarter of the year, collapsed by nearly 75% during the second quarter. The number of transactions fell from nearly 360,000in late 2017 to roughly 230,000 by September of this year.
The lack of acceptance, especially in the investment arena can partially be attributed to the US SECs denial of more than a dozen applications to list bitcoin exchange-traded funds (ETFs). More importantly, the leeway and freedom cryptocurrenciesenjoyed as unregulated commodities is rapidly coming to an end. 2018 has witnesseda drastic upswingin regulatory efforts, with countries across the globe taking a more serious and deliberate stance. This, many skeptics say, could be yet another nail in the coffin, stifling growth and limiting the sectors true potential as a disintermediating force.
On the other hand, these are not necessarily new critiques of the crypto sector. While it is true that bitcoin pricesand by extension most other cryptocurrenciescrashed in early2018, the volatility that once defined the market appears to be gradually fading. While this is bad news for speculators, it is excellent news for institutional investorswhomany believe are the key to unlocking cryptos future.
More relevantly, cryptocurrencies, and blockchain in general, are starting to garner more mainstream adoption. While merchants remain wary ofdigital currencies, banks, major tech firms, and other corporations have already started employing them.
As Ceek VR CEO and founder Mary Spio noted, cryptocurrency is nowhere near dead, its just scratching the tip of the iceberg toward mainstream adoption, when companies offer purposeful real life value and integration of cryptocurrencies, we will begin to see the next wave and resurgence of cryptocurrency. Its all about creating more natural demand and less speculation and hype. Indeed, it seems many of the cryptocurrencies that have fadedwere those based on hype and little else.
Even though 2018 has seen a downturn in the market following the bull run in 2017, we are convinced that the future holds a rebound, driven by institutional capital flowing into crypto assets. Within crypto assets, the wealth distribution will shift away from utility tokens towards Bitcoin and likely security tokens, said Agada Nameri from iCapital, an iAngels subsidiary dedicated to blockchain opportunities.
It seems that while many have shot down the idea that bitcoin and the crypto market are mainstream, the sector is determined to prove them wrong. While cryptocurrencies may still not be a standard for payments and value exchanges, the technology that underlies themblockchainis quickly becoming a standard in a variety of sectors and industries. Perhaps more crucially, the services that these tools provide are all based on, and powered by, cryptocurrencies and tokens. As companies continue to fix pain points and uncover new frictionless solutions to old problems with blockchain, crypto will flex its muscles even further.
Despite its many doubters and doomsayers, the crypto market has continued to plug along and thrive. Although prices have fluctuated wildlyand in some cases enormously to the downsidethe sector is finally starting to stabilize and increasingly appears to be leaving its infancy behind.
As more companies discover uses for crypto and blockchain, and more users accept themas a way to simplify their lives, theywill remain a central point of conversation in technology. More interestingly, as it better demonstrates its value in a variety of situationsfrom banking to buying coffeethe technology will further ingrain itself. Coins may come and go, and many cryptocurrencies are indeed likely to fail, but the sector will continue to forge ahead unabated.
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Is Cryptocurrency Dead for Good? | Investopedia
Cryptocurrency scammers dupe Singaporeans out of $78,000 in …
Singaporeans have lost $78,000 to cryptocurrency investment scams in the last three months, after authorities uncovered a wave of fraudulent marketing campaigns.
Cryptocurrency con-artists have duped citizens with phony articles featuring well-known Singaporean personalities to garner credibility, local media reports.
The advertisements falsely claim local celebrities earned huge returns on their Bitcoin investments made with fake companies. These lies eventually lured unsuspecting members of the public into sending in their cash, receiving nothing in return.
Police explained individuals who provided contact details normally received calls from supposed representatives, in a bid to legitimize the scams.
According to reports, these schemes originate from countries outside of Singapore. This unfortunately means they are not subject to the authority ofSingapores top financial watchdogs.
But even if these businesses were locally based, those regulators wouldnt be capable of doing anything at all. Singapores government does not actively regulate cryptocurrency. This means it is not able to impose any safeguards to protect local digital asset investors.
Surprisingly similar reports have surfaced in other parts of the world. A string of fake news articles recently hit New Zealand falsely starring local television host Daniel Faitaua.
The bogus ads claimed Faitaua doubled his money almost instantly, after buying a small amount of Bitcoin through a sham investment business in a televised interview.
He was eventuallyforced to make an on-air statement, clarifying he has no connection with the business, and had never bought any Bitcoin. Even more damning, the advertised interview never even happened. Go figure.
Published December 5, 2018 15:15 UTC
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Invest in Cryptocurrency With Spare Change – Black Enterprise
Dmitri Love pitchedBundilan app that takes your spare change and invests in cryptocurrencyon Season 10 of Shark Tank. Cryptocurrency (Bitcoin, Ethereum, etc..) and the blockchain technology that powers it, has created new opportunities for investors, startups, and professionals in a variety of industries.
Musician and philanthropist, Akon created his own: Akoin.PatientoryCEO Chrissa McFarlane raised millions for her blockchain startup with an Initial Coin Offering (ICO), and online communities like Wacoinda have developed to share news and financial information about the cryptocurrency market. Knowledge is power but wading through the deluge of news about digital assets can make investing in the speculative asset class daunting.
Thats why Dmitri Love created Bundil, to make it easier for everyday investors to add cryptocurrency to their portfolio. After his appearance on Shark Tank, Black Enterprise contributor Brandon Andrews sat down with Love for an interview about the show and his business.
BUNDIL CEO Dmitri Love on Shark Tank (ABC/Eric McCandless)
Give us a quick overview of the crypto landscape. What is it and how does it work?
Thats a pretty loaded question. The crypto world is an ever-evolving space filled with prowess and ingenuity.Lets start with bitcoins because they are so well known. Bitcoin is like regular money and in a small way, stocks.Its like money in that it has value and you can use it to buy goods and services. Its also like stock because the value fluctuates based on supply and demand. Bitcoin operates on technology called blockchain. Other crypto, like Ethereum, are using that same blockchain technology to allow people to rent out (and make money with) part of their computing power when they arent using it. Its an exciting space thats still in its infancy.
Why should I invest my spare change in crypto instead of saving it or using it for another opportunity?
You should do both! We always advocate diversifying your portfolio. Save some, invest some, repeat. We are actually in the works of adding a savings feature to our platform in coming weeks.
How did you build the Bundil app? What was your biggest challenge in the development process?
Well, lots of code and late nights, haha. We knew who we wanted to help build the system. I had some software friends in my hometown of Fayetteville, Arkansas, who are absolutely brilliant. I cant express enough how much we value them and what they have done for Bundil. The biggest challenge for us was mitigating risk management in the roundup investment process. We knew traditional roundups may provide poor monthly investments for those who dont use their debit/credit cards often enough. We came up with the idea to add different round-up options so users can choose how much to round up based on their spending habits.
Bundil App (enjoybundil.com)
You appeared on Season 10 of Shark Tank! How did you connect with the show? Tell us the story.
Its actually pretty crazy. We were contacted by a Shark Tank producer within two days of launching the initial iOS app back in April. My co-founder and I didnt believe it at first, but after doing some research we learned that it was real. We were asked to send in a pitch video and shortly after I was flown out to LA to film. Its still a little surreal.
You took the Sharks to crypto school, with a chalkboard and everything, how was that experience?
Comfortable. I thought I would be intimidated pitching our tiny startup to the Sharks, but once the pitch started, I felt like I was educating and explaining my business just like I would to anyone else. I used the chalkboard to show how complicated investing in Bitcoin and other crypto can be without using the Bundil app. I felt comfortable throughout the interaction.
Give us an update, what have you been working on since being on the show?
Weve been working on scaling up and adding new features. We know that Bundils an amazing tool for the old and new members of the crypto community and we want to make sure we exceed our users expectations.
BUNDIL CEO Dmtri Love on Shark Tank (ABC/Eric McCandless)
How do you plan to grow the business in 2018 and beyond?
The exposure from the show is going to give us great visibility, which is a good start. We want to show the world that crypto is nothing to be afraid of. I think our efforts in providing a secure, safe, and easy platform to invest in crypto will speak for itself. We also plan to continue engaging the investment community. In the coming weeks, we will provide other features to skyrocket their portfolios, and show them that investing is fun!
Why should African Americans be interested in crypto? Are their specific opportunities for black investors?
There are definitely opportunities for black investors. I think a lot of African Americans feel intimidated by investing in crypto or any other asset, because we often dont have the same financial opportunities. We want to bridge that gap with Bundil. We also want to empower black investors with knowledge. You can invest no matter your background or economic status. Thats the core of why we built Bundil. To engage the people that dont know where to start, and provide an easy and fun way to participate. No matter where theyre from, what their economic status is, or what they look like.
Brandon Andrews is a senior consultant at Values Partnerships. He leads a nationwide casting tour for ABC's Shark Tank. He writes about business, politics, and crowdfunding. Website - http://www.brandonandrews.me Twitter - http://www.twitter.com/brandontalk IG - http://www.instagram.com/yesbrandon Facebook - http://www.facebook.com/mr.brandonandrews Snap - @brandontalk
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Invest in Cryptocurrency With Spare Change - Black Enterprise
What is Mining Cryptocurrency? What you need to know…
Mining cryptocurrency can be a lucrative endeavor with enough computing power
Mining cryptocurrency is in the news a lot lately. People are finding their computers have been compromised by malware and are mining, or in some cases entire botnets are mining. But what does that mean?
This isnt mining in the traditional sense. There are no pick axes or canaries involved. Instead. its more about trying to win a blockchain lottery to earn the reward at the end.
What does that all mean? Lets hash it out.
To begin a discussion of mining cryptocurrency we need to start with what cryptocurrency is. Cryptocurrency is a digital form of currency with a cryptographic underpinning that is used as a secure medium of exchange. There are literally hundreds of different cryptocurrencies with varying real-world values. Many believe its the future of currency.
The most popular cryptocurrency is bitcoin, you may have heard of others like Etherium, too. While cryptocurrencies may differ in terms of the algorithms and encryption they use, they all share one similiarity: blockchain. And thats what we need to talk about next.
Blockchain is a digital ledger of transactions that is impossible to alter. It uses hashing and a concept similar to salting to continuously complete blocks of information that chain to form an immutable ledger.
Hashing is the act of mapping data of any length to a fixed-length output. When cryptography is involved its a one-way function. The most popular hashing algorithm is SHA-256, which outputs at a length of 256 bits. Every hash value is unique. Even the tiniest alteration to the data being hashed caused the entire value to change.
Hashing is considered one-way because of the amount of computing power it would take to reverse-hash it. For a 256-bit output, calculate 2 to the power of 256 (2 X 2 X 2 256 times). Your odds of finding the correct value are 1 in the product of that equation. Those are astronomical odds. It would take a supercomputer thousands of years to compute that.
Now lets fit it all together. With a cryptocurrency blockchain, as transactions occur they are broadcast and added to various private ledgers. Each one of these transactions is digitally signed for the sake of authenticity. On the other end, there are people or groups collecting these transactions and building ledgers. They are also computing to find a value that when hashed along with the ledger, produces a set number of 0s at the beginning of the hash value. Thats the portion thats similar to salting.
So lets say that for our example cryptocurrency, weve set the total to 10 0s. That means the first 10 spots of the 256-character hash value should all be 0s.
When the correct value is found, the block is closed, its broadcast officially and added to everyones blockchain, then the hash of the old block is put atop the new ledger and the process begins again. This is how blocks are created in the chain.
The act of computing the correct value to satisfy the hash function in blockchain is called mining. When it comes to cryptocurrency, a reward is provided to whoever solves for the correct value. That makes it lucrative to compute the correct value, though it takes quite a bit of power to accomplish that.
Oftentimes people pool their computing power together and split the reward if they solve for the correct value. In other cases, hackers have been known to co-opt others computers and use some of their computing power behind the scenes to mine cryptocurrency. There are entire botnets doing nothing but mining.
Really, solving for the correct value is like winning the lotto. There are countless people and botnets attempting to find the value and whoever finds it first gets the reward.
Of course, if you can accumulate enough computing power you could solve for the value enough of the time that you could accrue a substantial amount of cryptocurrency.
When someone says mining cryptocurrency what theyre referring to is the act of trying to compute a specific hash value by producing a set value that, when hashed along with the block ledger, produces a specific result. This requires considerable computing power, but considering the rewards its well worth it.
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Saudi Arabia Will Launch Its Own Cryptocurrency in 2019 …
Various countries mull creating their own cryptocurrencies. That is not an easy feat, as many different aspects need to be considered. In Saudi Arabia, such a new currency will be finalized in mid-2019. This currency will have the backing of the Saudi central bank. Despite this timeline, the working group behind this project is still evaluating the potential impact of such a currency.
The success of Bitcoin hasnt gone by unnoticed. Despite falling prices, the currency highlights some interesting potential. Digital cash is something a lot of consumers and corporations seem to favor at this time. This means governments and central banks need to cater to this demand. Creating a native cryptocurrency seems to fit this will quite well in that regard.
In Saudi Arabia, such a currency is being developed. It is a venture between the country itself and the United Arab Emirates. Not too much is known about the currency at this time. It has no official name, and its potential success remains unclear. The Saudi Arabian Monetary Authority is still investigating the feasibility of such a currency. Transforming finance in Saudi Arabia will not be without potential risks.
It is expected this new currency will come to market in mid-2019. More importantly, it will be supported by a limited number of banks. The central bank of Saudi Arabia wants to improve upon cross-border payments. Which banks will support this currency from day one, has not been officially communicated as of yet. This somewhat cautious approach to digital currency shows a lot of questions remain unanswered.
It is not the first time a country mulls creating a native cryptocurrency. To date, none of those regions have put any plans in motion to do so. It appears Saudi Arabia is leading the pack in terms of exploring the opportunities. Making cross-border payments more efficient is a worthy goal. It is something that can benefit consumers and corporations alike.
This news comes at a bit of an odd time. Ripple, the company developing xRapid and the XRP asset, has begun making inroads in Saudi Arabia. The countrys National Commercial Bank is a member of RippleNet. This move is also part of streamlining cross-border payments to and from the Kingdom. Additionally, the Saudi Arabian Monetary Authority conducted a Ripple-oriented pilot earlier in 2018.
Putting all of ones eggs in the same basket is never a smart idea. Diversification is key, especially in the financial industry. For banks, exploring different technologies and implementations will often yield the best results. This also confirms Ripple and a central bank-issued digital currency can potentially co-exist in the same country.
Do you think more countries will begin to consider issuing national cryptocurrencies? Let us know in the comments below.
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Saudi Arabia Will Launch Its Own Cryptocurrency in 2019 ...
Bitcoin and Other Cryptocurrency Prices Are Crashing Again …
For months, the price of Bitcoin has been hovering around the mid-$6,000s mark. No longer. The most popular cryptocurrency has plummeted by 12% over the last day, hitting a value of little more than $5,500.
The total market capitalization for Bitcoin now stands at $96 billionthe first time the market cap has fallen below $100 billion since October last year. The total market cap for the entire cryptocurrency scene now stands at $181 billion.
Bitcoin is far from the only casualty, with cryptocurrency price charts all firmly in the red right now. XRP (Ripple), the second-biggest virtual coin, is down 9.2%, Ethereums Ether is down almost 13%, and Bitcoin Cash is down 8.7%.
So, volatility is back, butas is so often the caseits not entirely clear why that is.
One theory, touted by BKCM founder Brian Kelly on CNBC, is that the crash is being caused by disagreements over a hard fork in Bitcoin Cash.
Hard forks are where a major software upgrade takes place on a cryptocurrency, essentially creating a new cryptocurrency (with free coins for existing coin holders) while leaving the old one intactthats how Bitcoin Cash formed in the first place, and now its doing it again. There is no majority agreement in the Bitcoin Cash community over which version would be best, though.
IMF chief Christine Lagarde also hit the headlines on Wednesday by calling for more countries to explore the potential of digital currenciesbut central-bank-backed digital currencies, not Bitcoin-style cryptocurrencies.
A few countries such as Sweden, China and Canada are already exploring this idea, with a key driver being maintaining the safety of currency-using consumers. There is a possibility that, if such schemes come to fruition, they could encourage regulators to crack down on competing cryptocurrencies that offer no such protections.
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Bitcoin and Other Cryptocurrency Prices Are Crashing Again ...
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The world of cryptocurrencies is a quickly growing and expanding place. The value of cryptocurrencies such as Bitcoin have been going through the roof. The reality is that cryptocurrencies are becoming ever more important, valuable, and widely accepted as legitimate forms of money. With this great value comes a very real chance for people to make a serious income. Yes, the trading of Bitcoins, Ethereum, and other such cryptocurrencies is becoming much more common and profitable too. Just like with other forms of trading, Bitcoin and Crypto trading has a lot of merit in terms of its profit potential. That being said, there are also lots of threats out there that arise from this popularity of cryptocurrencies. This is why we here at the Cryptocurrency Army have come into existence, to help you fight off these threats and stay safe.
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The sad reality is that there are countless cryptocurrency scams out there looking to take advantage of you. Just like with other scams and scammers, crypto-scams looks to expose beginners and people with limited knowledge. These criminals promise huge profits and awesome returns if you just give them some money. Whether it is a trading scam, a scam application, or an HYIP scam, there are plenty out there looking to bite a chunk out of you. These people are fraudsters, criminals, and scammers of epic proportions looking to make your life miserable with a ridiculous array of crypto-scams. Here at the Cryptocurrency Army our main goal is to keep you safe from scams, let you know about the legitimate trading applications out there, and to teach you everything there is to know about cryptocurrencies.
Here at the Cryptocurrency Army our mission is to keep you safe from scammers, criminals, and fraudulent peoples of all sorts. Were here to evaluate trading programs, investment opportunities, and to review anything and everything to do with cryptocurrencies. Whether Bitcoin, Ethereum, Litecoin, or any other form of digital currency, our goal is to ensure that your money is right where it should be, in your own pocket and not in the hands of scammers. To learn about cryptocurrencies, check out our section titled Cryptocurrency Explained and for info about the latest crypto-scams, visit our section titled Scam Report.
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