All posts by Thomas_Prendergast

PoW vs. PoS – What’s The Peoples Choice?

PoW vs. PoS – What’s The People’s Choice?

Because Bitcoin and cryptocurrency is still so new, it’s hard to say conclusively what ‘customers’ actually want. And even if one wanted to venture an opinion (like I will here) it’s still important to remember that blockchain and cryptocurrency is not a totally homogeneous market and there certainly are different niches within the overall market too.

But if you are, or plan to be, a cryptocurrency user one thing you most likely do want is security and speed. That’s where these two terms, Proof of Work (PoW) and Proof of Stake (PoS) may confront you.

When I started hearing those words, it seemed like they were important. Since the definition wasn’t really specified in the context where I heard them, I did some searching. Here’s what I found. I’m not a guru in this stuff but I think this is pretty accurate:

First of all, remember that blockchain is an algorithm (albeit a very unique one). Within and around the Bitcoin algorithm there are peripheral and subset algorithms. Two of those are PoS and PoW. My understanding is that the two never occur simultaneously but every cryptocurrency uses either one or the other.

What Are PoS and PoW Used For?

PoS and PoW have to do, in varying degrees, with the security and speed issues of cryptocurrency. Specifically relating to the security issues, remember that one of the core unique benefits of the blockchain is that the transactions that take place within it are supposedly true and authentic.

How did they get that way?

Because they were verified.

How or by whom?

The transactions were verified by the other people or entities on the blockchain. In the case of PoW, that number of people is fewer because the coins are mined by a relatively small group of people.

In the case of PoS, that number is larger because PoS systems employ a more decentralized/dispersed mining and verification system. It’s more of a communal system while still maintaining the anonymity that cryptocurrency users usually like.

Both processes have been adequate up to now but the reason (as I understand it) that some well-known cryptocurrencies (Ethercoin) are switching from PoW to PoS is because the PoW is less democratic, more centralized (comparatively), much more resource intensive (read “expensive”), and more susceptible to corruption via what is known as a 51% atttack.

Note: In a 51% attack, a person or (more likely) a group of people (in this scenario…miners) taking over the system for their own nefarious purposes.

In a PoS system, the strength of it is not so much the fact that the people who mined the coins are doing the verification but the fact that the people who currently actually posses the coins mutually share the transaction verification process.

In both methods the objective is to ensure an authentic, fast transaction but many users and experts now seem to feel that a PoS system give not only quicker transaction verifications but also is less vulnerable to ‘takeovers’ by 51%’ers.

Note: My understanding is that a 51% attack is, up to the present time, only hypothetically possible. But when you consider the amount of money going into the cryptocurrency environment, you can’t blame decision makers for being cautious.

To state in another way, PoW is strong on trust because the validations come from the people who did/do the mining. PoW is strong on validation because the validations come from massive consensus.

This validation power, as you will see, is also sometimes referred to as “agreement”. But, as I understand it, it means the same thing in most contexts.

One soon-to-be-launched altcoin, MyCryptoCoin (MCC), will use a totally new, very versatile and robust eWallet based on the PoS algorithm. The MCC eWallet will be truly revolutionary because its speed will match current credit card processing times yet it will be far more functional with its interface with multiple payment systems and financial institutions–to include not only cryptocurrency but also fiat currency and institutions.

And… it will offer privacy features that current credit/debit cards do not.

Summary and Recommendation

In my neophyte opinion, the average cryptocurrency user would probably be wise to make sure that whatever cryptocurrency they use is based on a PoS algorithm. As I understand it, PoS systems have faster, safer, and more accurate transactions.

 

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
Email me here

 

 

 

Bitcoin Latency Solved!

Bitcoin’s Big Problem: Transaction Delays Renew Blockchain Debate

Bitcoin is facing a major problem as the time it takes transactions to be processed has increased dramatically leading businesses to stop accepting the cryptocurrency and others to issue warnings that the problems could be terminal.

The problem is not something that has come out of the blue with those within the bitcoin community as well as researchers pointing to this looming issue for some time. The problem relates to how transactions are processed on the blockchain, the decentralized, distributed ledger technology that underpins bitcoin.

The average time it takes for a bitcoin transaction to be verified is now 43 minutes, and some transactions remain unverified forever. Some of the problem stems from the fact that anyone can add a fee to every bitcoin transaction, which bumps that transaction up in the queue, meaning that those who didn’t pay such a fee — or didn’t pay a sufficiently big fee — may be waiting hours and sometimes even days for a transaction to complete.

This is how it works. When someone uses bitcoin to pay for an item in a shop, that transaction needs to be verified on the blockchain. This is done by what are known as miners, individuals or groups who use massive computing power to solve increasingly complex mathematical equations to mine new bitcoins, which come in “blocks” and are mined about every 10 minutes. These blocks are used to record all transactions made on the bitcoin network, and have a maximum size of 1 megabyte (MB), meaning they can record just seven transactions per second at most.

To put this in context, Visa says its payment system processes 2,000 transactions per second on average and can handle up to 56,000 transactions per second if needed.

The result of the slowdown in transaction clearance rates has led some businesses to give up on bitcoin completely while others are recommending users to switch from bitcoin to alternative cryptocurrencies like litecoin.

The problem grew so large this week that at one point there were 40,000 bitcoin transactions waiting to be cleared — though at the time of writing, that figure has dropped to under 10,000. This drop has mirrored a drop in bitcoin’s dollar value this week, going from over $917 on Friday to under $863 yesterday, according to Gemini's tracker.

The bitcoin community has split into two distinct groups over the past years. The first group is known as Bitcoin Core, the network’s volunteer developers who want to change the way the signatures are stored on the blockchain rather than increase the size of the blocks. The other is known as Bitcoin Classic, a group comprised of developers and enthusiasts who propose the adoption of an alternative blockchain (incompatible with the original) that would increase the block size to 2 MB, a move it believes would increase user adoption.

Bitcoin’s architecture worked well when it was not widely used, but with over 200,000 bitcoin transactions processed every day and a market capitalization of over $14,588,828,445, the system is beginning to creak.

The problem was flagged up earlier this year  by one of the main developers of bitcoin over the last five years, Gavin Andresen, who told MIT Technology Review at the time that the problem with bitcoin’s limited transaction rate "is urgent."

"Looking at the transaction volume on the bitcoin network, we need to address it within the next four or five months,” Andresen said.

Then last January, another core bitcoin developer Mike Hearn penned a widely read missive on Medium, which declared bitcoin a failure. “[Bitcoin] has failed because the community has failed,” Hearn said. “What was meant to be a new, decentralized form of money that lacked ‘systemically important institutions’ and ‘too big to fail’ has become something even worse: a system completely controlled by just a handful of people in China.”

These concerns were backed up last month with the release of a research paper from a large group of researchers mostly affiliated with Cornell University, titled “On Scaling Decentralized Blockchain.” The research suggests that bitcoin would need a complete redesign if it is to support a much larger network of users and transactions.

In a blog post this week, Andresen said that the block size limits are there to protect the network from attacks — and so far that method has been effective. He added that the current problems could be highlighting an underlying problem. “In my view, people are using the block size limit for something it was never meant to do — to influence how people use the bitcoin blockchain, forcing some users off the blockchain,” he said.

It is time for a new evolved enterprise solution.

Enter the impending launch of a new type blockchain that is a POS (Proof of Stake) in contrast to Bitcoins POW (Proof of Work).  A truly exponentially expanded distribution that has no latency and gets even faster as it grows.

The technology is in the phone apps, not big cumbersome Mining Computer systems.

And this prevents the density of miners in one area or country as Bitcoin is mostly mined in China. And there are many reasons to have concerns in that regard.

A new type of Blockchain coin that delivers a wallet that transacts all fiat and crypto currency, comes with a VISA debit card and is part of the POS system, thereby earning you money on an ongoing basis.

MCC (My Crypto Coin)

Launches January 10th on to all the exchanges, it will be exciting to watch how this progresses.  MCC is in the final days of a Crowd Funding where you could fund at any level and find yourself holding a fortune as a result. Do not delay. Come to our meetings. There are only a few days left.

To get going join our group in Markethive
https://markethive.com/group/cryptocoin

Thomas Prendergast
Founder and CEO
Markethive Inc.

Dollar Cost Averaging With Cryptocurrency

Dollar Cost Averaging With Cryptocurrency

This article is really about Dollar Cost Averaging (DCA) and how it relates to investing money into cryptocurrency. DCA is an investment philosophy, well known to equities investors. It became a hot investment topic when the general public began to learn about mutual funds back in the 80’s.

I first heard about DCA in the late 80’s when I was a licensed seller of mutual funds with the A.L.Williams Company, the originator and pioneer of the “Buy Term and Invest The Difference” personal financial planning philosophy.

One highly reputable mutual fund which we sold at that time was the Templeton family of funds. Sir John Templeton is now deceased but he was one of the original pioneers of smart mutual fund investing. His company was very successful… partly because it wasn’t even headquartered in NYC so his research was always more independent.

In fact, his company was one of the first mutual funds which diversified internationally. He was very innovative and somewhat contrarian for his time but he had a highly respected reputation as an investor, businessman, and philanthropist.

His company later merged with Franklin Funds and is now known as Franklin Templeton Funds.

DCA was one of a three part investment strategy which has pretty much always been effective for those who have followed it. The three parts of the strategy are:

  1. Diversify

  2. Invest Long Term

  3. Dollar Cost Average

Assuming you know what mutual funds are, you’ll know that many funds are diversified. You’ll also know that most people who hold mutual funds do so for the long term. But you might not know about DCA.

DCA always works….in a rising market. It does not work in a consistently falling market (unless you’re looking for tax write-offs). It does not so much ensure a profit (at least not in traditional equities) but it does protect against a significant loss.

Little blips in the market don’t matter. In fact, they’re expected. But any problem with minor downturns is always negated by a long-term perspective — in a rising market.

The key to making DCA work is to invest a consistent amount of money at regular intervals. Using equities as an example: Investing $100 @ month, the investor gets 4 shares when the shares sell at $25 each. But if the price of the stock goes down to $20 he/she gets 5 shares. Which is better in the future? 4 shares or 5 shares?

But what about if the price of the share goes up, i.e. it costs more. For example, $33 @ share. That means that the investor still invests $100 but now only gets 3 shares instead of more. That’s still OK because if the market is rising, it’s still a good investment.

As an example, I sold a program of just a small amount of money invested in one of the funds to my pastor back in Galveston, TX. A couple of years ago when I touched based with him (he’s now retired) on the phone, he said to me, “Art, I’ve got to thank you for something.”

I of course had no idea what he was talking about. But he proceeded to tell me that he had maintained that investment program in his Templeton fund for a long time. And he told me it had turned out very well for him.

That’s the proof of the pudding for Dollar Cost Averaging.

So how does that relate to Bitcoin and cryptocurrency?

It means simply that most people need not worry about ‘technical trading’ in their cryptocurrency part of their portfolio….unless it’s something they just ‘get off’ on. And, make no mistake about it. There are lots of people who ‘Day Trade’ in cryptocurrencies. But day-trading is not for the average person.

But for the average person, long-term investing of tolerable amounts of ‘money’ in cryptocurrency carries not only minimal risk but also relatively assured capital preservation and upside potential.

Certainly getting in on a coin launch at 10 cents @ coin is a great opportunity when the coin launches at $1 and is reasonably expected to appreciate rapidly thereafter. But even if you have to get ‘in’ at $1 or $2, that’s still a good deal if the coin appreciates rapidly.

Cryptocurrency is an investment but it’s a very new kind of investment. In my opinion, it only barely falls with the traditional definition of “investments” (mostly because it’s not something tangible like a stock certificate, bond, deed, or other better-known type of investments). But again, ‘money’ isn’t really what most people think it is any more,is it?

Investing is not gambling. Gambling is putting money at risk by betting on an uncertain outcome with the hope that you might win or make money.

However, at this point in time putting some money into a reputable cryptocurrency, in whatever amount is comfortable to you, is not a gamble. The existing growth charts, when combined with prudent research and due consideration, definitely make Bitcoin, and many reputable altcoins (such as MyCryptoCurrency), a wise investment and almost immeasurable risk.

Just ‘play’ it wisely by Dollar Cost Averaging. Or put a lump sum into it and set your alarm to come back and check it in a year or two. And don’t think you’re going to be a ‘trader’ if you’re not already one. You don’t need to do that… to win your game.
 

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
eMail Me

 

Bitcoin Advocates Close To Trump

Bitcoin Advocates Close To Trump

President-elect Donald Trump has brought at least three individuals into his new administration who are publically pro-bitcoin. Who are the individuals and what makes them interesting?

They are:

  • For the position of US Director of Office of Management and Budget, Trump appointed US Congressman Mick Mulvaney, a Tea Party Republican, a hardline fiscal conservative known as being very outspoken about drastically cutting  federal spending on social programs. Mr. Mulvaney is also a founding member of the bipartisan Blockchain Caucus, aka the "Bitcoin Caucus" whose purpose is to help congress remain current on crypto/blockchain technologies and currency, and how to develop policies to advance them. He is also a very outspoken advocate of abolishing the Federal Reserve.

  • Peter Thiel, one of the original founders of PayPal, vocal bitcoin advocate, and outspoken gay billionaire has been offered a position on Trump’s transition team executive committee but has yet to accept. Nevertheless, the offer shows that Trump is not shy about bringing bitcoin advocates into his administration.

  • Betsy DeVoss, daughter-in-law of Amway co-founder Rich DeVoss, has been picked by Trump to be Secretary of Education but has yet to be vetted and approved by the appropriate congressional committee. Her position on bitcoin is unknown but it might be assumed that being closely associated with Amway she might be pro bitcoin. Ironically… her kids go to private schools but considering that she has always been an advocate for quality education she might possibly be presumed to be pro bitcoin.

  • Texas Governor Rick Perry, an outspoken advocate for bitcoin, has been nominated for Secretary of Department of Energy and is awaiting congressional confirmation.

A few other prominent politicians who have in recent years spoken positively about bitcoin include:

1. Jared Polis

A US congressman known for saying that the US dollar should be banned instead of bitcoin.

2. Dan Elder

A candidate for US House of Representatives in 2016 famous in the bitcoin community for funding his campaign solely by bitcoin and stating that bitcoin would be a way to bring integrity back to the notion of money.

3. George Galloway

A British politician and mayoral candidate in London noted for pledging to run his campaign budget  on MayrosChain, a blockchain-based  public expenditure management system. He stated on his funding page:

“Now, for the first time, the radically disruptive technology of blockchains can provide a technological backbone for true, 100 percent transparency. Political accountability, it seems, is about to take on a whole new meaning."

4. Andrew Hemingway

Andrew Hemingway, a Republican who ran (unsuccessfully) for New Hampshire Governor in 2014 and spoke once about using blockchain tech for elections.

5. Gulnar Hasnain

Over in London again, Gulnar Hasnain, a Green Party candidate running for a local government position, became noted for taking donations via bitcoin and also an alt coin called Onename, and a micro-tipping tool called Change Tip (recently closed).

In this interesting Youtube video, she shares her evolution into a bitcoin advocate.

She once said in an interview that she would like to draw attention to the positive aspects of blockchain technology and its potential to “transform democracy worldwide” and added that there were many similarities between her party and the principles of distributed ledger technologies.

She further added, “Surprisingly, the Green Party is vocal on the same issues as the bitcoin movement – more decentralised power, smaller government, a need for a shift in the concentration of power in the banking system and a more inclusive society.”

6. Rand Paul

Back in the US, everybody knows Ron Paul’s son, Rand Paul, a noted Libertarian who currently serves as Kentucky as one of its two Senators. He accepted bitcoin donations during his brief, unsuccessful campaign for US Republican Presidential nominee.

Kentucky Senator Rand Paul, who officially announced his bid for the 2016 Republican presidential nomination, started to accept bitcoin donations in April this year. The Washington Post called his decision to accept donations in the digital currency a "genius political move".

However, during a TechCrunch panel earlier this year, Paul said he was "an outlier" on "the bitcoin things".

That might have something to do with the reason he didn’t win the nomination…. Maybe he just wasn’t Libertarian enough. In a Bloomberg News report, he was quoted to say, "I've been fascinated by the concept of it, but I never would have purchased it myself. I'm just a little bit skeptical."

So, there are probably other politicians who are slowly evolving a positive attitude toward bitcoin and cryptocurrency if for no other reason than their hope that it might keep their sorry asses in office. Whatever happens, you can bet that as public awareness and favorability it increases, most of them will see it as a politically expedient bandwagon to jump on.

Trumps recent statements and appointments are indeed a positive thing but exactly when, where, and how the components of Trump’s administration will fall into place remains to be seen as does precisely how his new administration will deal with the massive tactical problem of (as he says) “draining the swamp”.

To say that there is a lot of inertia in the federal bureaucracy, the upper echelons of Wall Street and the global banking industry, and the US “presstitute media” would be an understatement. Such massive anti-freedom, anti-capitalistic, anti-libertarian machines as have evolved over the recent several US political administrations will take an equally long time to unravel and properly reconstruct, if for no reason other than the fact that it will take time to ferret out the dormant agents of the old regime and its way of thinking. They will not ‘go quietly’.

A few observers are speculating that Trump might try to pull a rabbit out of the federal hat by taking the US economy toward some kind of bitcoin-based monetary system.  

That’s possible but, as far as it goes, there aren’t any indications that such a move is being seriously considered…yet. Plus, it’s doubtful that the existing government bureaucracy would eagerly cooperate with something so totally libertarian.

One notable speaker, author, and economic forecaster, Doug Casey, has conjectured that the US government’s only possible way to avert a total collapse of the overly debt-burdened US economy would be to come out with a federally sponsored and/or designed version of cryptocurrency… which Mr. Casey conceptually calls, “Fed Coin”. See my recent article about Fed Coin and Mr. Casey.

I agree that Trumps appointments are looking interesting but I also think it’s still too early to start popping champaign corks about what it means for bitcoin and cryptocurrency in general. For the time being, the future of such things is still in the hands of private sector entrepreneurs. Whatever the Trump administration might try to do, the devil is still in the details. And the solution to the world’s money problems are still TBA (To Be Announced).
 

Art Williams
Freelance Writer
Case Studies and eMail Copywriting
eMail Me here

 

Can Your Cryptocurrency Be Hacked?

How Safe Is Your Cryptocurrency?

It’s not necessary to understand all the ins and outs of aerodynamics in order to have enough confidence to take an airplane trip (in an airplane weighing several tons) without being nervous that the plane could fall out of the air. To some extent that same type of confidence also applies to anybody getting involved in cryptocurrency, i.e. there’s a lot of technology behind it cryptocurrency but the average user doesn’t know or care to know those minute details.

However, some questions for some subjects are worth a little more digging and one of those questions is, “Can cryptocurrency be hacked?”

The short answer is, “Yes, but it’s more likely that an airplane would fall out of the sky and land on a big pile of cotton candy and everybody gets a free ticket to the circus and a picture of themselves with Bozo the Clown and Eeka The Jungle Girl sitting on top of a pink elephant.”

But understanding why cryptocurrency doesn’t have any significant ‘off the wall’ risk is interesting because lots of people are very curious about it and are looking for enough logic to quell their emotional fear of it (cryptocurrency).

I found a good explanation on Quora and some other places today and I’m going to recycle it here because I think it’s good information to know when you talk to people who know almost nothing about cryptocurrency and for whom the ‘opportunity glass’ is always half-empty rather than half-full.

Here’s the answer:

The primary innovation beyond Bitcoin is not the currency but rather the underlying technology, …the blockchain. In its basic sense, the blockchain is nothing more than a ledger.

Yeah, a ledger. Just like you accounts used to make entries in. The blockchain just the digital version of that tool but in an entirely new, much more secure and feature-rich way.

But what about the security of those transactions on that ledger?

That security problem is solved by various aspects of the blockchain process. Not the least of which is the Public Key and the Private Key which is required to authenticate each cryptocurrency transaction on the blockchain.

Theoretically cryptocurrencies can be stolen but it is virtually impossible to do so because the sophistication of the complex algorithms and public and private key cryptography involved wherein a private key is required to use the bitcoins stored in an address (public key).

Theoretically, 2^160 bitcoins addresses (public keys) are possible. And each public key has 2^58 possible private keys. This is where things get tough. The number 2^160 is a gigantic number with 48 digits in it. Just think how big it is. And the number is:

1461501637330902918203684832716283019655932542976

So…you can see you’re more likely to get that autographed picture with Bozo and Eeka than get your cryptocurrency hacked or stolen.

The other way to do this is to hack a wallet. There are lots of those in the market and they can be hacked if somebody somehow gets access to your email ID or password. Just like somebody could get into your locker at school if they had the combination to your padlock (remember those!!?)

If it isn’t already, eWallet hacking is probably going to become a very large underground industry. Your personal diligence is very important.

Of course, a thumb-drive with your cryptocurrency data, kept in a safe somewhere is also a possibility and obviously they are not susceptible to electronic hacking once disconnected from the internet. You can even have a paper wallet, i.e. keep that info in handwritten form.

E-Wallet security is an industry that will grow parallel with cryptocurrency. But for now…. Don’t worry about Bozo, Eeka, feeding the elephant, or the airplane falling out of the sky….or getting your cryptocurrency hacked.

None of those events are likely to happen.

 

Art Williams
Freelance Writer
Case Studies and Email copywriter

 

Cryptocurrency Metrics – Are There Any Good Ones?

Cryptocurrency Metrics – Are There Any Good Ones?

 

I don’t claim to be a cryptocurrency guro nor do I play one on TV. But I do know a little bit about basic marketing and business metrics and now that I have recently gotten interested in Bitcoin and cryptocurrency it occurred to me to see if there were meaningful metrics to help me choose among the multitude of cryptocurrencies I’ve encountered in the market.

My thinking was that, ‘If this question comes to my mind, it might be of concern or interest to other newbies in the cryptocurrency market too.”

So here’s what I found (or didn’t find) today. Are there any commonly used terms and metrics that a beginner-level cryptocurrency buyer can use to evaluate and differentiate between cryptocurrency choices?

The short answer seems to me to be, “No…not really.”

Whereas traditional business accounting has such measurements as:

Debt to equity ratios

Total Debt to Asset Ratio

Accounts receivable turnover

Accounts payable turnover

Current Ratio

Working Capital

Working Capital

Net Profit

Operating Margin
Accounts Receivable
Accounts Payable
..and others…

…..I couldn’t find anything similar for cryptocurrencies except one term… “Market Capitalization” or Market Cap.

And even for that term, the definition used for stocks (i.e. equities) can’t be directly applied to cryptocurrencies because cryptocurrencies and equity stock are two different animals.

Whereas the standard definition for Market Capitalization in equities markets is, ‘The amount of dollars per share of company stock times the number of shares’, the most logical comparison I could come up with in applying that definition to cryptocurrencies was, “the current prices per coin times the number of coins in circulation”. I couldn’t find anything more specific.

So, what signals or metrics could or should a prospective cryptocurrency purchaser use?

First of all, it probably should not be just one metric. While market cap is probably one reasonably good metric (of popularity and/or tenure in the market), there could also be other profile factors to pay attention to.

Liquidity, i.e. the number of buyers and sellers in the market could be important. Especially for traders rather than long-term investors. While I did not see the term, Liquidity, listed on any charts, I did see the term mentioned in some coin reviews.

Related terms could be “available supply” and “volume”.

Transaction fees might sometimes be a factor when purchasing cryptocurrency from an exchange. I saw that term mentioned in some reviews of alt coins but it wasn’t listed on any charts that I found.

The term Nodes has something to do with the processing time of buying and selling of cryptocurrency and and that might be a factor for active traders. And I did see the term listed in some alt coin reviews. But again…it wasn’t prominant on any charts that I found.

The term Difficulty has something to do with security issues and transaction processing time and I gather that this factor varies from coin to coin. But again, it was listed in some coin reviews but didn’t seem be a prominant consumer concern. It is related to the maximum allowed number in a given numerical portion of a transaction block’s hash. The lower the number, the more difficult it is to produce a hash value that fits it.

Bitcoin Price Index (BPI) is a term you might come across where the information provider wants to give you a graphic illustration of some particular cryptocurrency factor, e.g. trading volume, market buys or sells per 24 hour period, etc. An “index” could relate to many factors other than price.

Bitcoin Market Potential Index (BMPI) This metric is subjective but could be relevant if the buyer was concerned with a particular market characteristic. An ‘index’ could, theoreticaly, be constructed to help the reader make a conclusion based on those narrowly defined factors.

Bitcoin Sentiment Index (BSI) . This factor is, like the one above, probably subjective but might be valuable at least a relative sense.

Liquidity. This is probably a good term to watch for. And you will see it on some coin charts and reviews. The ability to buy and sell an asset easily via a suitably large community of buyers and sellers is important for liquidity. The result of an illiquid market is price volatility, and the inability to easily determine the value of an asset.

As you can see, there’s not a whole lot to sink your teeth into when you’re trying to understand what a good coin is vs. what a bad coin is. And the problem can be compounded even further when you discover that some coins were not even created for consumer-type purposes.

So what’s the answer?

You just don’t have the same kind of Quick and EZ Guide To CryptoCurrency Riches that you do in more mature subjects (e.g. Bass Fishing, Golf, Learning Spanish). But it seems to me that the best answer is:

  • Don’t move too fast.

  • Do as much research as you can.

  • Ask a lot of questions but be sure you ask people who can respect.

  • Try to pick your ‘plays’ based at least on what you might have in common with people who’ve made the same play, i.e. if you’re a middle-income working-guy, try to find out what coins similar people have bought (and been happy with). Don’t buy a coin just because some finance guy you read about in some far-off financial capital (who is probably in an income bracket 3 levels higher than you) bought.

  • Start small.

  • Don’t rob your kid’s piggybank. Take the risk from your budget.

The good news is that a rising tide floats all boats and many people have a mix of worry and optimism right now. On the one hand many people are optimistic for the US and world economy (due in no small part to the recent election of D.Trump). On the other hand, more and more people are realizing that old-fashioned money and banking practices are a game they’ll never win and they are starting to see that crytocurrency looks like a viable answer to their problems.

Luckily… it’s early in this incredible cryptocurrency phenomenon and you’ve got time to win big. Just take it seriously. The stakes are very high.
 

Art Williams
Freelance writer
Case Studies and eMail Copywriting

 

Bitcoin has had quite a month, rising from $725 to a high of $911 today.

Bitcoin has had quite a month, rising from $725 to a high of $911 today.

Part of what is driving bitcoin's price movement is the financial turmoil in China. A weakening yuan in combination with increasingly strict capital controls in the country have driven investor's capital out of mainland china and into bitcoin.

Likewise, since the Chinese government considers bitcoin to be a commodity rather than a currency, it is impervious to foreign exchange regulators – meaning that it is nearly impossible for them to limit its upside.

But, in my opinion, China is only one of numerous reasons bitcoin has been rising.

The Trump effect as well and his embracement of the Blockchain apparent in his cabinet appointments as Kim Dotcom has also predicted Bitcoin to hit $2000 next year giving Trump much of the credit.

But, with it breaking out to all-time highs now, it begs the question, how high can it go?

Let's look at the total market cap compared to other money and sectors.

Bitcoin is currently near $14 billion of total market cap.  If you multiply the total amount of bitcoins available (currently just above 16 million) by its current price you get its market cap near $14 billion.

At $14 billion, bitcoin has nearly the same market cap as silver.

But, when compared to Bill Gates, with a worth of $75 billion, bitcoin is still worth much less than the world's richest man.

When comparing it to companies, like Apple, the world's highest market cap company at $620 billion, bitcoin is still only worth 2% of the value of Apple.

And, compared to the total value of all gold in the world of $7.8 trillion, bitcoin is only 0.17% of that value.

Gold is likely the most similar item to compare bitcoin to.  Like bitcoin, it is a store of wealth and considered by many to be money.

And given the ease of use of bitcoin and how digital the world is becoming, it is fair to posit that at some point bitcoin may be worth as much as gold.

If that were to happen the price of each bitcoin would have to be valued at $487,500.

Another item that could be compared to bitcoin is the value of all fiat money in the world.  It is estimated, by the CIA Fact book, that there is about $28.6 trillion of coins, bank notes and bank deposits in the world.

If bitcoin were to replace all fiat currencies, something in which we speculate is certainly a possibility, the value of each bitcoin would be worth $1,787,500.

Will that happen anytime soon?  Of course not.  Could it happen?  Absolutely.

So, if you think you have missed the boat on bitcoin by not buying it earlier… there are plenty of reasons to think that it hasn't even begun yet.

 

Will Latency Slow Bitcoin Rise

Yes bitcoin has doubled in value over the past year, however as more people turn to bitcoin then more miners are required to ensure transactions are completed quickly. China has a large share in mining pools, however in the past months some of them have been shut down for stealing electricity to power the computers required to solve the mathematics which builds blocks in the blockchain. the longer it takes to produce blocks the slower the transaction becomes.

There has been talk of fork to update the blockchain but there is no consences for this. Implimentation might also prove challenging due to its widespread distribution which perversly adds to it security.

Waiting in the wings is a new coin Mycryptocoin (MCC), which brings together the best of bitcoin and ether, but using Proof Of Stake(POS) to replace mining as all coins will be allocated at launch.

Smart contract and application can be run on the blockchain. Owners walletscan hold MCC and these can be bought and sold within the wallets with links to all other ccyptocurrencies, bank accounts, cards and other payments systems such as paypal. Truly a one stop wallet complete with its own Visa card.

Are you interested to join a brave new world, if so you are just in time to join an Initial Coin Offering (ICO) cloud funding project which is about to close.

MyCryptoWorld, has a lucrative offer at the moment which is going to be explained TODAY

Take the first step now by joining me at  https://markethive.com/group/cryptocoin

Then remember to come to our webinar today at 12 noon MT on Friday 23rd December (Use http://www.timeanddate.com/worldclock/meeting.html enter Denver as location 1 and your own location to check your local time)

Join our live Webinars Every Day: For times and Webinar logins on go to the Markethive calendar: https://markethive.com/calendar

Direct access to our webinar room is at: https://www.ivocalize.net/#room/TheHive

Thomas Prendergast
Founder and CEO
Markethive Inc.

Hitchhikers Guide To Cryptocurrency Terminology

Hitchhikers Guide to Cryptocurrency Terminology

 

Just as I’ve often marveled at how many internet gurus take it for granted that the average person is familiar with Microsoft Word, I think the same situation will probably develop as Bitcoin and other cryptocurrencies get more into the mainstream of society and people encounter a whole new terminology they are not familiar with.

So, as a public service, here’s my non-academic, non-professional survey of some terminology that you either will need to know, might need to know, or might enjoy knowing as cryptocurrency becomes a part of your life.

Alt Coin

It has been said that ‘imitation is the sincerest form of flattery’ and there have been plenty of groups who have come out with their own imitations of Bitcoin. Some have been more successful than others but here is a list of several of the more successful ‘alternate’ cryptocoin patterned after Bitcoin to one degree or the other. Keep in mind that alt coin pundits can be pretty snarky in their opinions and alt coins are not all created for the same purpose or by the same means. As for which one is, “x” (where x is a particular attribute)… the answer is, “It all depends.”

Litecoin

Peercoin

Namecoin

Quarkcoin

Primecoin

Novacoin

Feathercoin

Zetacoin

MyCrytoCoin

Digitalcoin

Dogecoin

Stablecoin

Ethereum

Ripple

Bitcoin

The original cryptocurrency launched in 2009 and based on a scholarly paper released on the internet by a mysterious figure, or possibly group of people, going by the name of Satoshi Nakamoto. Some people doubt that the originator was Japanese. Nevertheless, the paper was titled Bitcoin: A Peer-to-Peer Electronic Cash System. In January 2009, Nakamoto released the first bitcoin software, open source, that launched the bitcoin network. The first units of the bitcoin cryptocurrency were called bitcoins. Note: “Bitcoin” is the network and “bitcoin” is the payment unit used in that network.

 

Cryptocurrency (also cryptocoin)

A digital asset designed to work as a medium of exchange using cryptography to implement and secure the transactions and to control the creation of additional units of the currency. In practical terms for the consumer… cryptocurrency is digital money used for the same things traditional money is used for… except with certain advantages over traditional money. All bitcoins are cryptocurrency but not all cryptocurrency is Bitcoin.

IBAN

The International Bank Account Number is a unique identifier helping banks process payments from person to person automatically. The IBAN contains all necessary information of the owner if a bank account such as the account number, bank and branch information and country code. Since the processes for transferring bank funds into cryptocurrencies can sometimes still be rather rigorous and tedious, this number could be seen on some paperwork.

Bank Secrecy Act

This fine work of legislative art, The Bank Secrecy Act of 1970 (otherwise known as the Currency and Foreign Transactions Reporting Act) requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering (as if the NSA wasn’t enough). Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, and file reports of cash purchases of these negotiable instruments of more than $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. Of course, in periods of inflation, even a trip to 7-11 approaches this criminal parameter thus conveniently making almost everybody a criminal.

BBAN

Basic Bank Account Number. It represents a country-specific bank account number. The BBAN is the last part of the IBAN when used for international funds transfers. The average cryptocurrency user or purchaser may see it on a form.

BIC

Bank Identifier Code… an international code that banks use for financial transactions. Each bank has its own BIC. Also known as SWIft CODE. Could be 8 or 11 characters.

FinCEN

FinCEN is the federal agency principally charged with combatting money laundering and financial crimes. A feat they accomplish primarily through the regulation of banks and related entities, or “Money Services Businesses” (“MSBs”).

Hash

AKA: hashing or hash function. Hashing isn’t directly relative to a consumer’s use of cryptocurrency but it is a word that pops up a lot when looking at descriptions of various cryptocurrencies. It refers to a security protocol whereby a data string is jumbled up (i.e. like real “hash”) at the sender-end and then put back together at the receiver-end. Both results should match of course. Just like in the kitchen, there are different kinds of hashes.

Keys (or Crypto Keys)

In the world of cryptocurrency, ‘keys’ are small strings of alphanumeric data used to unlock a larger piece of code relating to a cryptocurrency transaction. Keys are either Public or Private and are very important to the success and security of cryptocurrency systems and processes.

KYC

An acronym for “Know Your Client/Customer” and referring to a large body of rules and regulations enacted and enforced by governments on financial institutions to presumably prevent them from doing business with criminals and terrorists. The two main facets of KYC rules are (1) traceability and (2) identification verification.

Mixing Service

A service that mixes your bitcoins with someone else's, sending you back bitcoins with different inputs and outputs from the ones that you sent to it. A mixing service (also known as a tumbler) preserves your privacy because it stops people tracing a particular bitcoin to you. It also has the potential to be used for money laundering. For some users and in some scenarios, mixing is a desirable feature because it adds extra layer of anonymity to a transaction.

mBTC

1 thousandth of a bitcoin (0.001 BTC).

OTC Exchange

An exchange in which traders make deals with each other directly, rather than relying on a central exchange to mediate between them.

Public Key

An alphanumeric string which is publicly known and unique to each transaction. This key is used in conjunction with your Private Key to complete a transaction.

Pump and Dump

Inflating the value of a financial asset that has been produced or acquired cheaply, using aggressive publicity and often misleading statements. The publicity causes others to acquire the asset, forcing up its value. When the value is high enough, the perpetrator sells their assets, cashing in and flooding the market, which causes the value to crash. This can and has happened with some alt coins and MLM cryptocoin scams.

PSP

Not a video game system but rather a Payment Services Provider. This is not a consciously important term for the average cryptocurrency user but is important to merchants who want to accept cryptocurrency…much in the same way that merchants need a ‘merchant account’ to accept Visa, Mastercard, or other credit or debit cards. Cryptocurrency PSP’s are ‘hot’ financial services right now. Note: The MyCryptoWorld block chain, when released, will incorporate all the features of PSPs for merchants and will be a very-much ‘game-changing’ development in the cryptocurrency ecosystem.

Private Key

An alphanumeric string kept secret by the user, and designed to sign or authenticate a digital communication when combined with a public key.

Paper Wallet

A ‘Paper Wallet’ is the physical equivalent of a digital or e-wallet. It is a printed sheet containing one or more public bitcoin addresses and their corresponding private keys. It is often used to store bitcoins securely, instead of using software wallets which can be corrupted or web wallets which can be hacked or simply disappear. They are useful but require great accuracy and security.

SEPA

The Single European Payments Area. A payment integration agreement within the European Union, designed to make it easier to transfer funds between different banks and nations in euros.

Silk Road

An underground online marketplace, generally used for illicit purchases, often with cryptocurrencies such as bitcoin. Silk Road was shut down in early October 2013 by the FBI after owner Ross Ulbricht was arrested. Ulbricht was later convicted on money laundering and drug distribution charges.

 

Scamcoin

An altcoin produced with the sole purpose of making money for the originator. Scamcoins frequently use pump and dump techniques and pre-mining together. A great conversation starter at a party: “Hey, have you bought any Scamcoin yet!?”

Satoshi Nakamoto

The name used by the original inventor of the Bitcoin protocol, who withdrew from the project at the end of 2010. Not to be confused with Sasushi Nakamoto who owns a sushi restaurant in Los Angeles.

Satoshi

The last name of the mythical inventor of Bitcoin but also used to denote the smallest subdivision of a bitcoin currently available (0.00000001 BTC).

Transaction Fee

A small fee imposed on some transactions sent across the bitcoin network. The transaction fee is awarded to the miner that successfully hashes the block containing the relevant transaction. Cryptocurrency transactions fees are miniscule in comparason to transaction fees in traditional banking channels. Thus no wonder that banks and ‘banking families’ are very sceptical of cryptocurrencies.

Transaction block

A collection of transactions on the bitcoin network, gathered into a block that can then be hashed and added to the blockchain.

TOR

An very robust, effective, and anonymous internet data routing protocol, used by people wanting to hide their identity online.

QR Code

A two-dimensional graphical block containing a monochromatic pattern representing a sequence of data. QR codes are designed to be scanned by cameras, including those found in mobile phones, and are frequently used to encode bitcoin addresses. QR codes are frequently used in the buying and selling of cryptocurrencies via smartphone.

uBTC

One microbitcoin (0.000001 BTC)

Wallet

A method of storing bitcoins for later use. A wallet holds the private keys associated with bitcoin addresses. The blockchain is the record of the bitcoin amounts associated with those addresses.

So, that’s a starter Primer for your Bitcoin and/or cryptocurrency adventure. Of course this document is meant more to the benefit of Beginners but I do plan on updating it as time goes by because I know that getting into cryptocurrency can be a bit intimidating at first.

If you encounter a term that you think should be highlighted and clearly defined in future revisions of this list, please let me know at 713 701 1853, xpatflipper@gmail.com, or by joining Markethive, the free community for Entrepreneurs (for free… here) and connecting with me there.

 

Art Williams
Freelance Writer
Case Studies and Email Copywriting

 

 

Experts Predict Bitcoin Hits 1 Million Next Year

Experts Predict Bitcoin Hits 1 Million Next Year

We have the opportunity right now to take a very good risk to acquire results into the millions of dollars.

Here me out and come to our live webinars. Time is running out.

The lessons learned in business. Paying attention and seeking knowledge. Pursuing wisdom and mentors with wisdom and experience

Case in point, Bitcoin 2009, where were you?

You see back in 2012 when Bitcoin was trading around a penny, I was aware of the new revolutionary tech called Blockchain. Aware, but very ignorant. I had $50,000 invested in bulk silver coin and gold 1 ounce Maple Leafs. I was totally focused on the wrong preparations for the immediate future

I am a smart, experienced, entrepreneur and have been my entire life. I created and built Veretekk with nothing more than my visions, and my bare hands. There was no one before me to teach me. I joined UCSD’s Super Computer center to learn how to build the tools I envisioned and with the help of George Kremeneck and the partnership I built with Jeff Balmeo, we, laid the foundations, for what is now Markethive, the first off, Market Network (evolving from the Social Networks). I invented Inbound Marketing in the mid 1990’s Way way to early.

Markethive is a new wave technology, born from 20+ years of endeavor, innovation and dedication. It’s time has come. Why? And why am I discussing the summary history of and birth of Markethive?

Because it needed the Blockchain to morph into the most powerful social network what the pundits have identified as the new Market Networks that will dwarf the “Social Networks” and we are the first to produce one.

But Markethive needs a Blockchain to produce a shopping platform that every single human could utilize to build wealth regardless of nationality or residency. That is our mission, and MCC’s blockchain has given us the foundation to do it.

So, how in the world did I miss it in 2009-2012? I was not “Paying Attention” If I had paid attention, I would have liquidated my small holding of silver and gold, and purchased $50,000 worth of Bitcoin at less than a penny per coin.

Segway to the near completion of Markethive, discovering that Markethive was actually a Market Network, a new market to supersede the Social Networks, as has begun recognition of this new burgeoning  SAAS, Social Network, market platform predicted to eclipse the Social Networks and become the first Quadrillion dollar market.

Markethive (over 20 years in development) is ready to launch, as the new Market Network.

In that process we are seeking capital investors. And along came MCC, as this new emerging Blockchain company, they see the future and raw power potential in Markethive.

So James Wilfong and I talked about their investing into Markethive. We negotiated 5% of the Markethive stock for $5 million. This comes about in January after their ICO (Initial Coin Offer).

A few weeks after the negotiations I started really looking at the bitcoin market, educating myself, researching etc. As I did so, it started to form from the fog, that perhaps MCC (MyCryptoCoin) was more then I realized at first.

Now understand; as I did this research it dawned on me that back in 2008 when I started buying up Gold and Silver bulk coins (not collector coins) at around $800 per ounce. About $50,000 worth.

If I had paid attention to the Bitcoin revolution and bought the same amount I would have over $4.5 billion today. This caught my attention. I have seen a similar event with the Internet, but this is actually hundreds of times more intense. In fact, this trend (revolution) will likely be bigger than any other event in the history of mankind.

I started to realize that what MyCryptoCoin was doing was not just another coin, MyCryotoCoin’s DAO (Do you know what that is?), Their own Blockchain, their own proprietary Wallet, all developed with engineers that came from Bitcoin and Etherium, are about to launch the next level in this revolution. I call it bitcoin V2 and will address and solve the latency of Bitcoin, will give Markethive the ability to offer an Ebay type shopping platform that will allow all forms of live payment processing within 2nds.

Listen carefully, Markethive will be able to offer an Ebay type shopping platform that will accept all forms of payment. With MyCryptoCurrency over coming Bitcoins bottle neck of latency, transactions in crypto coin, fiat accounts (ACH), credit cards, 3rd party wallets like Payza, and Paypal will all be accepted with instantaneous transactions. Instant, no waiting (like) occurs with today’s crypto coins.

This is a substantial technical advancement that will both catapult Markethive becoming a trillion dollar Market Network, eclipsing LinkedIn (A social network) with monthly profits in the billions. Think I am kidding?

Fueled by MCC (mycrytocurrency) another huge disruptive company poised to launch, which I am convinced will eclipse Bitcoin, because they will be launching the “Latency” solution Blockchain, an advanced Wallet that solves the online Merchant Account issues and a series of other proprietary technology that will bring the CryptoCurrecy revolution into the main stream.

Did I mention? No I did not. Until the year end, we are offering you the option to purchase 3 million coins and $500,000 worth of Markethive stock for a ridicules low cost. We have other incredible packages that I can personally embrace as being one of those once in a lifetime events were you can leap from your financial level into wealth. Making literally millions even billions in dollars in profits.

I missed the first wave with Bitcoin in 2009 but I am firmly paying attention this time.

Come to the meetings! Do not miss this!
CHECK THE CALENDAR

Join our group
https://markethive.com/group/cryptocoin

Thomas Prendergast
Founder and CEO
Markethive Inc.

Trump Picks Cryptocurrency and Blockchain Advocate as Budget Chief

Trump Picks Cryptocurrency and Blockchain
Advocate as Budget Chief

Bitcoin Caucus co-founder Mick Mulvaney is the US'
next Director of Office of Management and Budget.

It seems the election of Donald Trump could spell great news for American blockchain startups and cryptocurrency users. President-elect Trump has added to his cabinet an active and vocal supporter of cryptocurrencies and blockchain which means that there will be at least one powerful voice in the US government that will resist further efforts to legislate the technology into oblivion.

Trump picked Congressman Mick Mulvaney, Tea Party Republican, as his administration’s Director of Office of Management and Budget. He is considered a staunch fiscal conservative that wishes to drastically limit the federal government’s spending on social programs.

Just this September he was among the founders of the bipartisan Blockchain Caucus. Commonly called the Bitcoin Caucus by American media, it is meant to help congressmen stay up to speed on cryptocurrency and blockchain technologies, and develop policies that advance them.

Mick Mulvaney

“Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and I am proud to be involved with this initiative,” Mulvaney said in a statement back then.

Mulvaney is also a supporter of Coin Center, a non-profit research and advocacy center focused on public policy issues facing cryptocurrency technologies, which raised over $1 million earlier this year.

“For the past two years we have worked with Representatives Mulvaney and Polis to educate their colleagues through briefings and other events, and the new Congressional Blockchain Caucus will be a wonderful new platform to continue these efforts,” Jerry Brito, executive director of Coin Center said at the time. “Their forward-thinking leadership on blockchain technology in Congress is unmatched.”

 

Thomas Prendergast
CEO
Markethive Inc.

Join our Bitcoin Group. Time is running out.

https://markethive.com/group/cryptocoin