Category Archives: Bitcoin

Why many individuals think of Bitcoin as a fad.

When people make a habit of doing something a particular way for such a long time, it indeed becomes a component of who they are. I’ve had some management experience, and each time I tried to alter the procedure or method of doing something to make it better, I was typically presented with resistance.

For many centuries folks have had it implanted within their brains that cash issued by the federal government meant that it had worth.

Physical currency (cash issued by the banks) has this connotation at the rear of it that since the authorities printed this, it should be of value. Although it is true our dollars have worth; many people think it is usually because something supports it. As a society, we’ve decided that the shiny nutrients which we find out from the bottom are “valuable” and for that reason so is our cash.

Whilst economies are vibrating along and administrations aren’t overbearing and folks having a member of their family trust them then yes, physical currency works quite nicely. What happens whenever we tip that level and points don’t go very well? Economists possess varying views on that, but in most cases the central authorities will try to manipulate the overall economy. This is carried out by manipulating the overall economy via techniques such as lowering rates of interest or quantitative easing.

These kinds of scenarios can result in distrust, or much worse. Recessions can lead into a great deal of more significant problems such ascontrolling the price or meal shortages. Just ask why the folks of Venezuela are protesting every day. It is because their federal government backed Bolivar right now and has noticed triple-digitinflation, and it’s not well worth the paper it’s imprinted on.

The mistrust of corporations, governments, and centralized banks haveresulted in people seeking refuge for financial problems. It could be incredibly hard and costly to transfer money throughout the world aswell.

The Blockchain technology will be the game changer. It really is entirely decentralized and therefore no dictators, presidents,central authorities or company can control it. This online ledger referred to as the Blockchain keeps trust and multiple individuals are always verifying transactions withone another. Folks are financially incentivized to take action. It’s a genius procedure that depends on people’s greed to confirm each transaction. Due to this, Blockchain transactions are also the most secure& most protected transactions ever invented.

What the web did for information, Blockchain technology does for transactions. Bitcoin isn’t supported by any shiny materials in the bottom, but by something much more significant. The lack of relying upon traditional paper currency is causing individuals from worldwide to move their cash into cryptocurrencies. This is a protected and relatively easy technique of payment. I could send out Bitcoin to anyone in the globe for almost no charge at all plus they receive it rapidly. They can maintain it in Bitcoin, or they can immediately trade it back to the neighborhood currency of their choice.

What many people don’t understand is that the more folks that dive into cryptocurrency the, more its worth increases. Thisisbecause Bitcoin generation has an end date. That number is 21,000,000. Once that occurs there won’t be another Bitcoin produced ever again.

Because we’ve got 7 billion folks on earth and mostly only around 15 million committed to cryptocurrency, there should arise a daywhena single Bitcoin alone could be more than plenty to retire on.

The Man Who Is Expected To Take Over The Mining Industry.

The most active individual who is a significant contributor to the Bitcoin Core is popularly known by his pseudonym BtcDrak. He is allegedly making an entry in the mining hardware industry. This developer who has a very big contribution towards the Bitcoin Core repository also seems to be operating and looking over and Bitcoin Core Community Slack, has been making statements where he has mentioned how he had provided his help to set up the ASIC chip manufacturing firm,  Halong Mining within a time period which had begun in the past year. He also said that they had produced and were ready to ship mining hardware to consumers as soon as 2018 is set to roll. The main aim of this project was to introduce competition in the market which had been missing for quite a long time now.

The Miners

From the firm’s website, we find that Halong Mining is going to launch a line of products which has only one machine for now, which is called ‘The DragonMint16T’. The miner is claimed to be equipped with the latest innovative chips and is allegedly able to produce around 16 tetrahashes each second. Also, BtcDrak has claimed that their machine will be more efficient than any other machine in the market. Also, it is supposed to be thirty percent more efficient in case of saving energy compared to the most efficient ASIC mining machine which is present in the market, which is famously known as Bitmain’s Antminer S9. The most significant requirement which is needed for gaining entry to the ASIC market is nothing but capital. The process of developing innovative and specialized chips from scratch involves a truckload of effort, time and expertise. BtcDrak would not expose much about the ongoing work in the firm but he hinted the reporters by stating that he had involved a group of people who had skills which only experts could have.

Also, based upon his remarks, we happened to find out that Halong Mining had invested an approximate value of $30 million just to carry out the procedures involved in research and development while he also mentioned that the number of people involved in the task was a number which exceeded hundred. The people involved primarily consisted of chip designers, software designers, and specialist who worked with electronic hardware.

Halong Mining is thought to be building prototypes to ensure total quality for consumers. Also, none of the prototypes would be allowed to be sold to consumers due to the risk of reverse engineering and make them vulnerable in case of ideas being stolen from them. Also, he ensured us that the machines are working and he is predicting that the first DragonMints which will be produced in mass quantity are likely to available to the potential consumers within the month of March in the year, 2018.

Is Bitcoin Legal? Let’s Find Out!

Bitcoin has been causing law enforcers and regulators to be worried because they claim that this could allow money launderers to have a medium to make transactions without any traces as it allows the trader to remain anonymous. However, since digital transaction services are still developing we do not know much about it which also means there are no laws yet surrounding the use and transaction of bitcoins. Although, if you are confused about its legality, you will be assured to know it is completely legal.

  • Concerns regarding bitcoin.

As stated previously, government and law enforcers are worried about the use of bitcoin due to the fact that it can allow the user to make transactions anonymously, which can encourage money laundering. In fact, government agencies are more worried about the nature of the currency to be decentralised. Bitcoin is reported to have been the only acceptable currency on Silk Road, an anonymous network which was closed in 2013 because of the fact that it used to sell products which are illegal in certain countries, including drugs. Charles Schumer called the website to be shut down while linking it with bitcoin and referring to it as a substitute currency.

  • Who is in charge of regulation?

People who regulates the exchange of bitcoin varies from countries to countries. It is expected that national financial regulators are supposed to be interested in bitcoin and similar virtual currencies available along with regional regulators who are in a sub-country level.

Legislative Branch

The SEC case had forced the government to consider whether bitcoins were legal or not. Shavers argued that they could not be charged for security fraud as bitcoin is technically not money. However, the judge issued a memorandum which stated that bitcoin could be used a form of money.

In August 2013, leeters were sent to law enforcements to inquire about the risks and threats associated with bitcoin being a virtual currency and they also asked about suggestions for rules and regulations for bitcoin. A letter which came in a reply suggested that bitcoin did not have adequate trails which could be referred by law enforcers and government agencies if required.

Private Sector Companies (Banks)

Multiple banks have been reported to have closed accounts owned by people who operate exchange of bitcoins. In a particular case, the bank was disappointed that the company involved did not have a Money Transaction Business (MTB) account.

  • Evaluation

The legal status of bitcoins is usually based on the fact of who you are and how you plan on using it.

These are people who simply sell, collect or buy bitcoins for transactions purposes which is legal under the guidance of FinCEN.

  1. Miners

These are a group of people who use bitcoins to exchange it for real currency which can be considered troublesome for government agencies but this issue has not been on trial in a court, so we do not have a clarified explanation.

  1. Exchanges

It has been plainly defined as MTBs. Such people exchange and transmit money from one person to another person in exchange for virtual currency, funds or whatever holds value to be used as a substitute for the currency.