Bitcoin mining difficulty goes up, pushing old machines out

Bitcoin difficulty

Bitcoin difficulty rise up rapidly wtf???
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The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May

The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May
May 25, 2020
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Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%.
Meanwhile, Network Demand Score which is a metric incorporating network velocity, transaction value, fees, and miner’s rolling inventory, climbed to 6/6 following the bitcoin halving meaning the network is growing stronger which could also be a sign that “we’re in a longer-term bull market.”
Since March 12th, just before the massive sell-off, this score has remained above a 3/6 reflecting growing strength in network activity and instilling confidence in the ongoing uptrend for the bitcoin price.
3 Reasons why fees skyrocketed
One component of this indicator, bitcoin on-chain fees has been surging like crazy.
Last week, Bitcoin average transaction fee climbed to $7, last seen in February 2018. This has the miner revenues from fees rising to the levels not seen for more than 2 years. But this week, it also dropped 55% to $3.13.
The increase in transaction fees, which is increasingly becoming more important for Bitcoin network security, has been because of the unconfirmed transactions piling on in mempool.
A decline in hash rate following halving caused fewer blocks to be found and will continue until the next difficulty adjustment has been one of the reasons behind this jump in fees.
The other reason is the large fluctuations in bitcoin price which has traders sending coins between exchanges.
Ather reason is a “mysterious entity which has been consolidating outputs at the highest fee rates, driving up fees for everyone,” pointed out Serrrgej Kotliar, CEO Bitrefill.
Who is this “Crazy1o1”?
Over the weekend Kotliar shared how, for the past 14 days, this mysterious entity has consolidated a lower-bound of 720 thousand outputs, 5 MB per day, more than BitMEX.
Since May 1st, this entity named “Crazy1o1” has spent around 804k UTXOs and has paid more than 104BTC in mining fees during this time, noted Laurent.
“On some days, these fees are equivalent to 10-12% of all the fees received by miners,” he said.
Laurent along with others suspect this entity to be the cryptocurrency exchange Coinbase.
Earlier this month, it was also found that crypto derivatives exchange BitMEX is making the bitcoin network expensive for everyone and its own users are paying 6.8% of total daily transaction fees.
Prepare for the next bull market
All of this a “decent fire drill for what might happen if we see another bull market,” said Kotliar. Grubles from Blockstream said,
“ON-CHAIN FEES AND BTC PRICE MOVEMENTS CHART. YOU CAN SEE THAT BIG MOVEMENTS RESULT IN PEOPLE RUSHING TO TRANSACT (ALMOST CERTAINLY TO/FROM EXCHANGES), PUSHING FEES UP FOR OTHER NON-TRADER USERS WHO NEED UNCENSORABLE / IRREVERSIBLE TRANSACTIONS.”
The fees reached its all-time high at over $55 during the peak of the bull market in December 2017. As such in the next bull market, a 5x growth in on-chain transactions should be expected.
But given that batching, one of the many ways the network has been scaled is here, it will prevent the pressure on the network from getting worse than 2017. But exchanges will need to be prepared for this.
submitted by kealenz to BitcoinMarkets [link] [comments]

If you missed the AMA

AMA AT DETECTIVE ID (25/06/2020)
Before welcoming any questions, I would like to briefly introduce STATERA PROJECT. Statera is a smart contract deflationary token pegged to a cryptocurrency index fund. By including STA in an index fund with Link, BTC, ETH, and SNX you can buy one token and access the price action of four of the leading cryptocurrencies. You can also invest directly in the index fund (balancer pool) and receive the benefits of fees and BAL tokens paid to you while also having an automatically balanced fund. Lastly the deflationary mechanics of STA increases the chance for positive price action while decreasing beta (volatility). This is all found in a smart contract that is fully decentralized, the founders can no longer augment the contract in any way and this has been confirmed by a third party code audit through Hacken.
Q1 : please explain in more detail about Statera, what is the background of this project? and when was it established?
The dev of this project had previously created another deflationary token BURN. When the Balancer Labs released the Balancer Protocol, he had an idea to combine the two, deflationary token and a pool of tokens, making the first deflationary index fund. It started in the end of May and on the 3rd iteration, May 29th - a trustless version was launched that we see today. As briefly explained earlier, STATERA or STA is an Index Deflationary Token built on Ethereum blockchain; Index: Contains a token suite of world class leading crypto assests BTC, ETH, LINK, SNX with STA. Deflationary: On every transaction of STA 1% of the transacted amount is sent to 0x address on ethereum, burned forever, thus reducing the circulating supply of STA Index+Deflationary: STA is mixed with BTC, ETH, LINK SNX in a portfolio, backed by liquidity on a protocol known as balancer (balancer.finance) This platform serves as a market maker for the token suit. The Index suite is of equal rate of 20%, that is 20% of BTC, ETH, SNX LINK and STA, Thus, anytime there is an increase in value of any of those coins or tokens, balancer automatically trade them for STA in order to keep the token suit ratio balanced. And anytime there is an increase in the value of STA, the same process applies. while doing this trade, it enables further burning on every transaction, thus facilitating more token scarcity. In addition to this, Statera was deployed with contract finalised, that is, the index suite can not be altered, It is completely out of Dev's control.
Q2 : What are the achievements that have been obtained by Statera in 2020? And what goals do you want to achieve in 2020?
By this we assume the questionnaire is asking for a roadmap! First, the project is barely a month old, and within just a month, our liquidity has grown from $50,000 to over $400,000 currently above $300,000. Among the things we have accomplished so far is the creation of market value for STA's Balancer liquidity pool token BPT, which is currently over $1000 per one BPT. Regarding what we set to achieve: The future is filled with many opportunities and potentials, currently, we are working on a massive campaign to introduce our product to the outside world. We have already made contact with different and reputable forums and channels regarding marketing and advertisement offers, some which we are currently negotiating, some which we are awaiting response. All we can say for now is that the Team is working hard to make this the Investment opportunity every crypto enthusiast has been waiting for. Statera has the goal of putting cryptocurrency into every portfolio. We believe we have a product that increases the returns of investing in cryptocurrencies and makes it easier to diversify in this space. We have done so much in June: articles, how to videos, completed the audit, tech upgrades like one token liquidity additions, and beginning our many social communities. We have been hard at work behind the scenes but things like sponsorships, features, and media take time, content makers need days if not weeks to develop content, especially the best of the best. We are working tirelessly, we will not disappoint. We have plans for 2020-2025 and will release those in the next month. They are big and bold, you’re going to be impressed by the scale of our vision, when we say “Cryptocurrency in every portfolio” we mean it. In 2020 more specifically we are focused on more media, videos, product offerings, and exchanges.
Q3 : What is the purpose of STA token? How can we get STA? The purpose of STA is an investment in the first deflationary index fund. The whole index's value rises from these aspects: 1. The index funds (WBTC,WETH,SNX,LINK) appreciate in value 2. When the index tokens are traded, the pool receives transaction fees - 1% 3. STA burns on transactions, so it's deflationary nature increases its value as the total supply drops 4. Balancer rewards Index holders with BAL token airdrops every week You can invest via the 'Trade' links in stateraproject.com website. Easiest way is to do it using ETH. The monetary policy of our token is set in stone and constantly deflationary. This negative supply pressure is a powerful mechanism in economics and price discovery. Through the lowering of supply we can decrease your beta (volatility) and increase your alpha (gains). Our token is currently only top 40 in liquidity on Balancer, however our volume is top 10! You want to know why? Because Statera works. Statera increases arbitrage, volume, fees, BAL rewards, and liquidity. Our liquidity miners in our Balancer pool are already making some of the highest BAL rewards on the platform, one user we spoke with made 18% in June, that’s over 150% APY! Our product is working, 100% (or you could say 150%), and when people start to see that, and realize the value, the sky's the limit.
Q4 : can we as a user do STA mining? The supply of STA doesn't increase anymore, it only decreases due to the burn feature. So there is no way to mine anymore STA. Only way to acquire the tokens is via an exchange. The monetary policy of our token is set in stone and constantly deflationary. This negative supply pressure is a powerful mechanism in economics and price discovery. Through the lowering of supply we can decrease your beta (volatility) and increase your alpha (gains). Our token is currently only top 40 in liquidity on Balancer, however our volume is top 10! You want to know why? Because Statera works. Statera increases arbitrage, volume, fees, BAL rewards, and liquidity. Our liquidity miners in our Balancer pool are already making some of the highest BAL rewards on the platform, one user we spoke with made 18% in June, that’s over 150% APY! Our product is working, 100% (or you could say 150%), and when people start to see that, and realize the value, the sky's the limit.
Q5 : The ecosystem of a public chain has a lot to do with the level of engagement and participation of third-party developers. How does Statera support the developers?
Not really. Our project is focusing on investment opportunities for the cryptocurrencies. The cryptocurrency tokens that are not used and are just sitting in a wallet can work for you by being added to an index fund and appreciate in value over time. First off, what we have created is a new asset class, I’ll repeat that, a new asset class. This asset has never existed: “Deflationary Index Fund,” what does that mean for finance? What will developers do with this? It’s hard to give a finite answer. We hope there are future economic papers on our token and what it means to be a deflationary index fund. With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? Being fully decentralized it is up to our community to make this happen, social engagement and community are key. We are constantly bringing community members onto our team and rewarding those that benefit the ecosystem. in addition, Statera is a fully community project now. Paul who is the current team leader was an ordinary member of the community weeks ago, due to his interest and support for the project, he started dedicating his time to the project. Quite a number of community members are also in the same position, while Statera was developed by an individual, it is being built by the entire Statera community
Community Questions (Twitter):
Q1 From: @KazimKara35 The project tells us that the acquisition and sale of data between participants is protected by code of conduct and how safe is deployed on the blockchain, but how do you handle regulations while operating on a global scale?
Statera is decentralized token, similar to other utility crypto tokens and same regulations apply to it as others. his is actually a benefit of our decentralized nature. This isn’t legal advice, however in the past regulating bodies have ruled that the more decentralized a project is, especially from launch, the less likely they are to be deemed a security (see: Ethereum). This means they can be traded more freely and be available on more platforms. We are as decentralized as you can be. The data itself is all secured through the blockchain which has been shown to be a highly secure medium. We do not store any of your data and as long as you follow best practices in blockchain security there are no added security risks of using Statera. We don’t, and literally can’t, hold anymore personal information than is made available in any blockchain transaction. and that "personal information" is more likely than not just your ethereum wallet address, no "real world" data is included in transactions
Q2 from: @Michael_NGT353 What is Mechanism you use On your Project sir? Are you Use PoS,PoW or other Mechanism Can you explain why you use it and what is Make it Different?
Our token is an ERC-20 token and it's running on the Ethereum blockchain. The Ethereum's POW mechanism is currently supporting the Statera token We run on Ethereum, so we are currently PoW. With ETH 2.0 we will hopefully be PoS this year (hopefully). We use it because ETH has over 100 million addresses and around a million daily transactions. We are currently at about 1,900 token holders, we are just touching the edge of what is possible in this market. We chose the biggest and the best network available right now to launch our product. We think the upside is huge because of this choice. Being the biggest network it is also one of the most secure, no high risk vulnerabilities have been found in Ethereum or in our code (we've had our code audited by a third party, Hacken, and you can read their audit on our Medium page), so we also have security on our side
Q3 From : @Ryaaan_Nguyen Can you list some of Statera outstanding features for everyone here to know about? What are the products that Statera is focusing on developing?
As mentioned earlier by GC, First off, what we have created is a new asset class, I’ll repeat that, a new asset class. This asset has never existed: “Deflationary Index Fund,” what does that mean for finance? What will developers do with this? It’s hard to give a finite answer. We hope there are future economic papers on our token and what it means to be a deflationary index fund. With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? We touched on this a bit in the question on what makes us special compared to other exchanges. We have created a product that synergizes with Balancer Pools creating a symbiotic relationship that improves the outcomes for users (our product can also synergize with future DeFi products). By including STA in an index fund with Link, BTC, ETH, and SNX you can buy one token and access the price action of four of the leading cryptocurrencies. You can also invest directly in the index fund (balancer pool) and receive the benefits of fees and BAL tokens paid to you while also having an automatically balanced portfolio (like an index fund with dividends). Lastly, the deflationary mechanics of STA increases the chance for positive price action while decreasing beta. We want to package Statera with assets across the whole cryptocurrency space, with an emphasis on DeFi. We also want everyday people to be able to invest quickly in crypto while also feeling reassured their investment is set up to succeed. We are focused on developing a name brand that people go to first and foremost when investing in crypto: cryptocurrency in every portfolio. This is all found in a smart contract that is fully decentralized, the founders can no longer augment the contract in any way and this has been confirmed by the third party code audit. This is a feature in and of itself, some argue that Bitcoin’s true value is in it’s network effect, first mover advantage, and immutability. Statera is modeled on all three of those and has those features in spades. The community now owns our token, the power in that, giving finance and power to the people, is why we are here.
Q4 From : @futcek What do you think about the possibility of creating new use cases in DeFi space for existing real world assets by using crypto technology? What role do you see in this creation for Statera?
I think my answer above actually answers this perfectly, Statera in and of itself is a “new use case”, a “deflationary index fund” has never existed, I’ll copy and paste the other relevant part: “With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? Being fully decentralized it is up to our community to make this happen, social engagement and community are key. We are constantly bringing community members onto our team and rewarding those that benefit the ecosystem.” Statera is a way to make your investment more successful, and owning Statera let's you benefit from other people using it to make their investments more successful (a self feeding cycle).
Q5 From : @Carmenzamorag Statera's deflationary system is based in that with every transaction 1% of the amount is destroyed, would this lead to lack of supply and liquidity in the long term future? How would that be fixed?
The curve of supply is asymptote, meaning that it will never reach zero. The idea is that the deflationary process will slowly decrease the supply of STA, which – combined with a fixed or increaseing demand – will result in STA appreciating in value. Evidently, as the STA token increases in value, the amounts of STA being traded will slowly decrease: The typical investor might buy 10.000 STA at the current rate, but in the future (proportional to an increase in the valueation of STA) this number will tend to decrease, hence the future investor might only buy 1000 STA. This of course results in less STA being burned. Additionally, STA is divisible to the 18th decimal, why – even if the supply was to reach 1 STA – there would be a sufficient supply. Well this would be a question for a Mathematician, and luckily we’re loaded with them (as seen above)! I’ll try to illustrate with an example. 1% of 100 million is 1 million, 1% of 10 million is 100,000. As we go down in supply the burn is less by volume. What also happens at lower supply is higher prices (supply and demand economics). So those 1 million tokens burned may be worth $20,000, but by the time overall supply is at 10 million those 100,000 tokens may also be worth $20,000 or even more. This means you transact “less”, if you want to buy 1 Ether now with Statera you need 8,900 STA which would burn 89 tokens. If Statera is worth $100 you only need 2.32 statera (.023 tokens burned). Along with this proportional and relative burn decrease, tokens are 18 decimals long, so even when we get to 1 token left (which mathematically would take decades if not centuries, but that is wholly dependent on usage), you are still left with 10 to the 18th power, or one quintillion “tokens”. So it’s going to take us a while to have supply issues :)
Nuked Phase (3rd Part)
Q) What is your VISION and Mission?
Our working mission and vision: Mission: Provide every investor with simple and effective ways to invest in cryptocurrency. Decrease volatility and increase positive price pressure in cryptocurrency investments. Lower the barrier to entry for more advanced investment tools. Be a community focused and community driven cryptocurrency, fully decentralized by every meaning of the word. Vision: We aspire to put “cryptocurrency in every portfolio”. We envision a world where finance is given back to the people and wealth building strategies withheld only for affluent individuals are given to all. We also strive to create an investment environment based on sound monetary policy and all the power that comes with a sound asset.
Q) What are the benefits of STA for its investors in long term? Does STA have Afrika as an important area for its expansion?
We have ties to Africa and see Statera as a way for anyone and everyone to invest in cryptocurrency. The small marketcap of statera makes it's price low and it's upside massive. Right now if you wanted to be exposed to the price action of four cryptocurrencies (BTC, ETH, Link, SNX) Statera is a way to gain that exposure in a way that has a huge upside, compared to the other four assets, there are risks in investing in any small cap but with those risk come outsized rewards (not investment advice and all answers are solely my opinions 😊)
Q) In the long run, why should we trust and follow STATERA? How do you raise awareness and elimination of the doubts of investors / partners / customers?.
You're really asking "How do I trust myself and other crypto investors" The project is FULLY decentralized, it is now in the hands of the community. We would venture a guess that the community wants their investment to succeed and be worth more in the future, so you are betting on people. wanting to make themselves money on their own investment. This is a pretty sure bet. The community being active and engaged is key, and we have short term and long term plans to ensure this happens
Q) No one can doubt the strength of #Statera. But can you tell us some of the challenges and difficulties you're presently facing? How can you possibly overcome them?
We're swinging outside our weightclass, we don't see litecoin or SNX, or any other crypto product as our competition. Our competition is NASDAQ, Fidelity, etc. We want to provide world class financial instruments that only the wealthy have access to in the traditional world to everyone. Providing liquidity, risk parity, being paid to provide liquidity, unique value propositions, are all things we want to bring to everyone. However we are coming up in a hectic space, everyday their is fud and defamation on the web, but that is the sandbox we chose to play in and we aren't grabbing our ball and going home. We can tell you that we will not disappoint and fighting all the fud that comes along with being a small and upstart project only fuel our fire. Building legitimacy is our largest challenge and looking at our audit, financial report, and some things you will see in the coming weeks, we hope you see we are facing those challenges head on.
Q) What is the actual uniqueness of #Statera.??? Can you guys please explain tha advantages of #Statera over other projects.??
When we launched there were no other products like ours. There are now copies, and we wish them the best, but we have the best product, hands down. Over the next couple weeks this will become apparent, if it hasn't already, also a lot of the AMA answers dug deeper into our unique value proposition, especially the benefits we provide to Balancer Pools which shows the benefits we would provide for any index fund. We are a tool to improve cryptocurrency investing
Q) Fragmentation, layering and cross-chain are three future solutions for high-performance blockchains. Where is Statera currently? What are the main reasons for taking this direction?
We operate on the Ethereum chain, as it upgrades our services and usability will upgrade. We are working on UI and more user friendly systems to onboard people into our ecosystem
Q) How STATERA plan to make room and make this project known in the world of crypto, full of technology and full of new projects very good in today's market?
We think we have a truly innovative product, which - when first understood - appeals to most investors. Whether you want a high-volatility/medium-risk token like STA or whether you are more conservative and simply just plan on adding to the Statera pool BPT (which is not nearly as volatile but still offers great returns). We plan on making Statera known to the crypto world through a marketing campaign which slowly will be unravelled in the comming days and weeks. If interested, you can check out an analysis of the different investment options in the Statera ecosystem in our first financial report: https://medium.com/@stateraproject/statera-financial-reports-b47defb58a18
Q) Hello, cryptocurrencies are very volatile and follow bitcoin ... and does this apply to Statera? or is there some other logic present in some way? is statera token different from a current token? Are you working on listings on other exchanges?
Currently uniswap is somewhat uncomfortable for fees. We are also on bamboo relay, saturn network, and mesa. Statera will be volatile like all cryptocurrency, this is a small and nascent space. But with the deflationary mechanic and balancer pool, over time, as marketcap grows it will become less volatile and more positively reactive to price.
Q) Security is one of the most essential characteristics for a project to get reputation. How can #Statera Team assure to their community that users assets and investments will stay safe from unwanted agents?
We have been third party audited by the same company that worked with VeChain to audit their code. Our code has been shown to be bulletproof. Unless Ethereum comes up with a fatal security flaw there is nothing that can happen to our contract (there is no backdoor, no way for anyone to edit or adjust the smart contract).
Q) Many investors see the project from the price of the coin. Can you give us advantages why Statera is so suitable for long-term investment? and what makes Statera different from other similar projects?
Sometimes the simplest solutions are the most effective. A question you can ask is “What if this fails”? But you can also ask, “What if this succeeds”? Cryptocurrency is filled with asymmetric risks, we think if you look into the value proposition you will find that there is a huge asymmetric risk/reward in Statera, and we will make that even clearer in our soon to be released litepaper. You are on the ground floor of a simple but highly effective solution to onboarding people into defi, cryptocurrencies, and investing. Our product reduces volatility and increases gains (decreases beta and increases alpha in investor terms), which is highly attractive in any investment. The down side is there but the upside outweighs it exponentially (asymmetric risk)
Q) What your plans in place for global expansion, are Statera focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships? Can you explain this?
We have reached out to influencers in other countries and things are in the works. We have also translated documents and are working on having them in at least 4 languages by the end of July. We were founded globally, our team is global, and we are focused on reaching all 7 billion people.
Q) Now in the cryptofield everyday there are new projects joining in the Blockchain space. They are upgraded, Well-established and coming up with innovative technology. How Statera going to compete with them? What do you think, one day Statera will become useless And will be lost into the abyss of time for not bringing any new technology?
We are the first of our kind, no one had a deflationary index fund before us. Index funds will be the future of crypto (look at the popularity of etfs and indexes in the traditional markets). We are a tool to make your index function better and pay you more. As long as people care about crypto index funds they will care about the value STA brings to that. We have an involved and long term plan to reach dominance over a 5 year span, this is not a flash in the pan, big things coming
Q1. You say that the weight and proportions of your tokens are constant. So how have you managed to prevent market price speculation from generating hypervolability in your token price? Do you consider yourselves a kind of stablecoin? Q2. How many jurisdictions allow the use of Stratera products and services? Are they available for Latin America? @joloroeowo The balancer ensures an equal ratio of 20% amongst the five tokens included in our fund. This, however, does not imply that the tokens are stable. Rather, the Balancer protocol helps mitigating price fluctuations.
Q) How can I as a Statera participant participate in liquidity mining, and receive BAL as reward? What are the use cases of $STA token, and how are users motivated to buy and hold long term?
The easiest way is to go to stateratoken.com and click trade then BPT. You can also buy all five tokens and click on portfolio then add liquidity. Balancer is working on a simpler interface to add liquidity with one token, we are waiting on them. I think we explained the use cases above
Q) What do you plan have for global expansion, is Statera currently focused solely on the market? Or is it focused on building and developing or acquiring customer and user or partnership relationships? Can you explain it?
We are currently working on promoting the project and further develope our product, making it lucrative for more new investors to join our pool and invest in the STA token.
Q1) Statera have 2 types of tokens, so can you tell me the differences between STA and STAC ? What are their uses cases? Is possible Swap between them? Q2) Currently the only possible Swap or "exchange" possible is Uniswap, so you do have plans to list the STA token into a more Exchanges?
STAC is obsolete, we only have STA and BPT (go to our website and click on trade) stateratoken.com BPT gives you more diversification and less risk, STA gives you more volatility and more chance for big gains. Q2 we are on multiple exchanges (4), bamboo relay, saturn, and mesa we do have plans for future exchanges but the big ones have processes and hoops to jump through that can't be done so quickly
Q) What business scenarios can STATERA support now? In which industries can we see the mass adoption of STATERA technology in the near future?
Statera increases the effectiveness of your cryptocurrency investments. Specifically it makes cryptocurrency index funds function better, netting you higher returns, which we have already seen in just one month of implementation. Right now, today, you can buy our BPT token and increase the functionality of holding a crypto index fund. In the future we want every single web user to see and use our product
Q) Do you plan to migrate to other platforms like Tron, BinanceChain, EOS, etc. if it is feasible??
Migrating our current contract is not. Starting new offerings on those other chains could be possible, they aren't on our radar currently but if the community requests them we are driven by our community
Q) ETH Blockchain is a Blockchain have many token based in it, i have used ETH blockchain long time and i see it have big fee and need much time to make a transcation so Why you choose to based STA in ETH blockchain not other like Bep2 or Trc20 ?
Simply: 100 million addresses, 1 million transactions a day. The more users we have the more we will benefit our community. We hope ETH 2.0 scaling will fix the problems you mention.
Q) No one achieve anything of value on its own, please can you share about Statera present and future partnerships that will drive you to success in this highly congested crypto space?
We have a unique product that no one else has (there are people who have copied us). We can't announce our current and future partnerships yet, but they will be released soon. Our future hopes of partnerships are big and will be key to our future, know we are focused on making big partnerships, some you may not even be thinking about.
Q) According to the fact that your algorithm causes 1% of each transaction to be destroyed, I would like to know, then, how you plan to finance yourself as a project in the long term?
The project is now in the hands of the community and we are a team of passionate people volunteering to help promote and develope the Statera ecosystem. But then, how do we afford running a promo campaign? We have lots of great community members donating funds that goes to promoting the project. In other words, the community helps financing the project. And so far, we have created a fantastic community consisting of passionate and well-educated people!
Q) There are many cryptocurrency startups were established by talent teams, but they got problem in raising capital via token sales due to many factors as bear market, bankrupt etc. This leaded their potential startups fail. So how will Statera break these barriers and attract more funds from outside crypto space?
We are community focused and community ran. When you look at centralized cryptocurrencies you can see the negative of them (Tron, ADA, etc.) We believe being fully decentralized is the true power position. You the owner of statera can affect our future and must affect our future. This direct ownership means people need to mobilize and organize to push us forward, and it is in their best self interest to do so. It's a bet on our community, we're excited about that bet
Q) What business scenarios can STATERA support now? In which industries can we see the mass adoption of STATERA technology in the near future?
Statera increases the effectiveness of your cryptocurrency investments. Specifically it makes cryptocurrency index funds function better, netting you higher returns, which we have already seen in just one month of implementation. Right now, today, you can buy our BPT token and increase the functionality of holding a crypto index fund. In the future we want every single web user to see and use our product
Q) Why being a hybrid of a liquidity pool and an index fund? What are the main benefits about this?
By being a liquidity pool the exchange side of the pool (balancer also functions as an exchange) gives you added liquidity for more effortless, effective, and cheaper rebalancing. You also benefit from getting paid the fee when people use the exchange AND getting paid BAL tokens that are worth $15-20 USD. These are not benefits you get with an index fund, meanwhile the liquidity pool rebalances just like an index fund would
Q) Which specific about technology and strategy of #STA that make you believe it will be successful and what does #STA plan do to attract more users in the upcoming time?
I think the idea behind Statera is truly ingenious. We have made an index fund, which investors are highly(!) incentivised to invest in, namely because the ROI, so far, has been huge. An increase in the pool liquidity (index fund) indirectly translates into an increase in the price of STA, why we think the STA token - combined with its deflationary nature - will increase in the long run. The mechanism behind this is somewhat complex, but to better get an understanding of it, I suggest you visit our medium page and read more about the project: https://medium.com/@stateraproject
submitted by stateratoken to StateraToken [link] [comments]

Round up of Cryptocurrency News #2 Week 13/07 - 19/07

Round up of Cryptocurrency News #2 Week 13/07 - 19/07
Important/Notable/Highlights:
- https://cointelegraph.com/news/binances-swipe-powered-crypto-debit-card-debuts-in-europe
- https://news.bitcoin.com/twitter-apple-joe-biden-elon-musk-bill-gates-jeff-bezos-uber-bitcoin-giveaway-scam/
- https://dailyhodl.com/2020/07/16/twitter-reveals-cause-of-unprecedented-security-hack-placing-bitcoin-and-cryptocurrency-in-the-crosshairs/
- https://cointelegraph.com/news/paypal-letter-seems-to-confirm-crypto-capability-rumors
- https://cointelegraph.com/news/bitcoin-hash-rate-hits-new-all-time-high
- https://news.bitcoin.com/youtube-helps-scammers-steal-130000-in-bitcoin-from-investors-daily-report/
- https://defirev.com/twitter-hack-2020-bitcoin/
- https://news.bitcoin.com/bitcoin-difficulty-touches-all-time-high-120-exahash-of-hashpower-remains-strong/
- https://news.bitcoin.com/emerging-markets-drive-paxful-first-half-2020-bitcoin-volume-to-1-1-billion/
- https://www.stellar.org/press-releases/stellar-blockchain-now-available-on-samsung-galaxy-smartphones
- https://news.bitcoin.com/aggregate-erc20-market-cap-outpaces-valuation-of-eth-in-circulation-by-2-billion/
- https://news.bitcoin.com/bank-of-england-still-debating-creation-of-central-bank-digital-currency-says-bailey/
- https://news.bitcoin.com/bank-of-thailand-enters-third-phase-of-cbdc-development-now-using-cbdc-with-big-businesses/
- https://dailyhodl.com/2020/07/15/number-of-crypto-merchants-accepting-xrp-has-surged-46-so-far-this-yea
- https://news.bitcoin.com/european-digital-bank-revolut-expands-bitcoin-trading-services-to-49-us-states/

Special Mentions:
- https://news.bitcoin.com/us-dept-of-homeland-security-buys-coinbase-analytics-software/
- https://news.bitcoin.com/tether-freezes-millions-of-dollars-usdt-40-addresses/
- https://news.bitcoin.com/crypto-exchange-cashaa-loses-336-bitcoin-worth-3-million-to-hackers/
- https://dailyhodl.com/2020/07/14/heres-why-institutional-interest-in-bitcoin-btc-and-crypto-markets-is-rising-according-to-huobi-global/
- https://dailyhodl.com/2020/07/13/binance-says-altcoins-taking-center-stage-names-five-top-crypto-assets-as-bitcoin-btc-prepares-for-big-move/
- https://news.bitcoin.com/advocacy-group-claims-irs-issued-crypto-warning-letters-violated-taxpayers-rights/
- https://news.bitcoin.com/south-africa-proposes-new-rules-regulate-cryptocurrencies-alignment-fatf-standards/
- https://news.bitcoin.com/freebitcoins-com-is-open-again-with-three-helpful-tools-for-new-and-old-cryptocurrency-users/
- https://dailyhodl.com/2020/07/18/heres-how-twitter-hackers-are-trying-to-hide-their-trail-of-stolen-bitcoin-btc/
Other:
- https://dailyhodl.com/2020/07/12/crypto-giant-grayscale-boosts-bitcoin-and-ethereum-exposure-at-expense-of-xrp-bch-and-ltc-in-large-cap-fund/
- https://dailyhodl.com/2020/07/17/bitcoin-btc-goliath-grayscale-reveals-1400000000-invesment-in-crypto-funds-in-2020/
- https://news.bitcoin.com/altseason-imminent-most-altcoins-should-gain-on-bitcoin-soon-says-veteran-analyst/
- https://news.bitcoin.com/japanese-listed-company-globalway-plans-to-build-sharing-economy-protocol-and-launch-ieo/
- https://dailyhodl.com/2020/07/13/prominent-crypto-strategist-goes-viral-says-bitcoin-ethereum-and-xrp-poised-for-epic-rally-that-will-put-2017-to-shame/
- https://dailyhodl.com/2020/07/13/binance-says-altcoins-taking-center-stage-names-five-top-crypto-assets-as-bitcoin-btc-prepares-for-big-move/
- https://dailyhodl.com/2020/07/13/dissecting-bitcoins-electricity-consumption/
- https://news.bitcoin.com/abra-crypto-app-sec-transactions-thousands-us-stocks-etfs/
- https://news.bitcoin.com/iran-licenses-bitcoin-mining-farms-cuts-electricity-tariff/
- https://dailyhodl.com/2020/07/14/will-tezos-be-the-altcoin-to-unseat-ethereum-on-the-crypto-market/
- https://dailyhodl.com/2020/07/15/new-class-of-crypto-assets-will-outperform-bitcoin-and-ethereum-in-new-bull-run-says-luke-martin/
- https://dailyhodl.com/2020/07/16/guarda-wallet-launches-new-version-of-the-mobile-app/
- https://news.bitcoin.com/best-defi-interoperability-solutions-exploring-fusion-vs-cosmos-vs-polkadot/
-https://dailyhodl.com/2020/07/18/venture-capitalist-says-flurry-of-fundamental-crypto-events-will-trigger-crazy-q4/
-https://news.bitcoin.com/news-bitcoin-com-lead-writer-jamie-redman-named-one-of-the-best-crypto-bloggers/
-https://dailyhodl.com/2020/07/19/top-analyst-says-bitcoin-ethereum-and-xrp-poised-to-breakout-end-lengthy-consolidation/
So much has happened this week! We saw a capitulation point of bitcoin before bears took over and we saw the selling pressure push Bitcoin down toward the $9000USD mark then move back up above $9100USD So far it has been a stable hold, however we may see some more action within the coming weeks.
Widespread scamming within the Twitter-sphere, Youtube and other platforms as Bitcoin and other cryptocurrencies may seem like fair game. Cryptocurrencies providing big payouts for scammers without the ability for reversals of accounts. Remember if something seems too good to be true, do some research or just plain do not respond/believe it. Stay safe and careful with your funds!
On the brightside, there has been even more adoption of cryptocurrencies as rumours of Paypal utilising cryptocurrency has been confirmed as they are developing crypto capabilities. In addition to this we received exciting news at the start of this week about Binance partnering with Swipe (SXP) and offering a debit card to spend BNB, SXP, BTC and BUSD. ( I will be keeping a swift eye on BNB and Swipe as its utilisation as tokens has just increased 43 fold).
Positive news for the Bitcoin network as its hashrate reaches all time high which helps to secure the network further even though mining profits have dropped by 50% from the recent halving. If you didn't know already the last Bitcoin will be expected to be mined in 2140 with its difficulty ever increasing and each time securing the network further. Processing units will have to become faster, stronger and most importantly more cost effective to continue to entice miners for the block rewards and further renewable energy practices.
Furthermore we can see Central banks and countries discussing and developing Central Bank Digital Currencies (CBDC). Read more about it here https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp and check out some of the developments in the world above. This shows the popularity and strong nature of cryptocurrencies. As the saying goes "If you cant beat them, JOIN them".
Overall, very solid week full of adoption, animation and anticipation. Another post next week for a weekly round up! See you then but in the mean time join us at our Gravychain Discord.
- DISCORD LINK: https://discord.gg/zxXXyuJ 🍕 Bring some virtual pizza to share 🍕
Come have a chat, stimulate a discussion, ask a question or share some knowledge. We are all friendly crypto enthusiasts up for a chat, supportive and want to help each other with knowledge and investments!
Big thanks to our Telegram and My Crypto HQ for the constant news updates! - The Gravychain Collective: https://t.me/gravychain - My Crypto HQ: https://t.me/My_Crypto_HQ
submitted by IOTAbesomewhere to Gravychain [link] [comments]

Bitcoin at $ 288,000? BTC price shows bullish signal like 2016

Bitcoin at $ 288,000? BTC price shows bullish signal like 2016
Bitcoin's price development has been relatively stable in recent weeks.
The cryptocurrency has been trading in the $ 9,200 range since early June, which is the price at the time of publication.
However, Bitcoin is currently showing signals that could indicate an upcoming bull market.
According to a report by the Kraken Stock Exchange, Bitcoin is only a 10% jump away from entering a massive upward trend.
As Kraken describes, to enter a bull market, Bitcoin must break the key resistance at $ 10,500, as shown below.
https://preview.redd.it/0d4bm64zsla51.png?width=1276&format=png&auto=webp&s=b3a670c135792f34af6714fc8ab9d48cef7dc77e
With that in mind, the report says Bitcoin could soon break resistance or take the risk of testing support at $ 6,000 to $ 7,000.
This would end a period that some analysts have described as very stable. In fact, this is similar to the price development in 2016 and 2017, when Bitcoin initially tended to move sideways for a very long time and finally reached its all-time high of USD 20,000 in late 2017.
According to analyst Moon Capital, the Bitcoin hash ribbons have crossed, revealing a massive buy signal that has historically pushed Bitcoin's price up. The signal was also there before the 2017 Bull Run.
Therefore, the analyst predicts that BTC will rise to $ 288,000.
The "hash ribbons" indicator is based on the hash rate of the Bitcoin network.
It is calculated by comparing the short-term moving average and the long-term moving average of the Bitcoin hash rate. As soon as these two cross, a bullish indicator is generated.
A breakdown is considered bearish.
Capriole's digital asset manager, Charles Edwards, also noted the formation of this indicator.
However, Edwards recommended waiting until midnight today (July 12th UTC) for the crossing of the hash ribbons to be confirmed. He also said the BTC price for confirmation should close above $ 9,230.

Bitcoin fundamentals support upcoming uptrend

On the other hand, Bitcoin's fundamentals seem to support a bull market. Bitcoin's hash rate has increased significantly since the difficulty adjustment in June.
According to blockchain.com, the hash rate of Bitcoin reached a new high of 125.99 terra hashes per second (TH / s) on July 7.
In this context, analyst and inventor of Bitcoin's stock-to-flow model, Plan B, said Bitcoin has weathered the worst of the past few months.
In addition, he stressed that the cryptocurrency will soon peak at its hash rate, confirming the good health of the Bitcoin network.
submitted by jakkkmotivator to thecryptobasic [link] [comments]

The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May

Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%.
Meanwhile, Network Demand Score which is a metric incorporating network velocity, transaction value, fees, and miner’s rolling inventory, climbed to 6/6 following the bitcoin halving meaning the network is growing stronger which could also be a sign that “we’re in a longer-term bull market.”
Since March 12th, just before the massive sell-off, this score has remained above a 3/6 reflecting growing strength in network activity and instilling confidence in the ongoing uptrend for the bitcoin price.
3 Reasons why fees skyrocketed
One component of this indicator, bitcoin on-chain fees has been surging like crazy.
Last week, Bitcoin average transaction fee climbed to $7, last seen in February 2018. This has the miner revenues from fees rising to the levels not seen for more than 2 years. But this week, it also dropped 55% to $3.13.
The increase in transaction fees, which is increasingly becoming more important for Bitcoin network security, has been because of the unconfirmed transactions piling on in mempool.
A decline in hash rate following halving caused fewer blocks to be found and will continue until the next difficulty adjustment has been one of the reasons behind this jump in fees.
The other reason is the large fluctuations in bitcoin price which has traders sending coins between exchanges.
Ather reason is a “mysterious entity which has been consolidating outputs at the highest fee rates, driving up fees for everyone,” pointed out Serrrgej Kotliar, CEO Bitrefill.
Who is this “Crazy1o1”?
Over the weekend Kotliar shared how, for the past 14 days, this mysterious entity has consolidated a lower-bound of 720 thousand outputs, 5 MB per day, more than BitMEX.
Since May 1st, this entity named “Crazy1o1” has spent around 804k UTXOs and has paid more than 104BTC in mining fees during this time, noted Laurent.
“On some days, these fees are equivalent to 10-12% of all the fees received by miners,” he said.
Laurent along with others suspect this entity to be the cryptocurrency exchange Coinbase.
Earlier this month, it was also found that crypto derivatives exchange BitMEX is making the bitcoin network expensive for everyone and its own users are paying 6.8% of total daily transaction fees.
Prepare for the next bull market
All of this a “decent fire drill for what might happen if we see another bull market,” said Kotliar. Grubles from Blockstream said,
“ON-CHAIN FEES AND BTC PRICE MOVEMENTS CHART. YOU CAN SEE THAT BIG MOVEMENTS RESULT IN PEOPLE RUSHING TO TRANSACT (ALMOST CERTAINLY TO/FROM EXCHANGES), PUSHING FEES UP FOR OTHER NON-TRADER USERS WHO NEED UNCENSORABLE / IRREVERSIBLE TRANSACTIONS.”
The fees reached its all-time high at over $55 during the peak of the bull market in December 2017. As such in the next bull market, a 5x growth in on-chain transactions should be expected.
But given that batching, one of the many ways the network has been scaled is here, it will prevent the pressure on the network from getting worse than 2017. But exchanges will need to be prepared for this.
submitted by kealenz to btc [link] [comments]

Binance Support Number ☞ +𝟏 (𝟖𝟒𝟒) 𝟗𝟎𝟕𝟎𝟓𝟖𝟑 Binance Customer Support :Groundbreaking-Lab87

Binance Support Number +𝟏 (𝟖𝟒𝟒) 𝟗𝟎𝟕𝟎𝟓𝟖𝟑 Binance Customer Support :Groundbreaking-Lab87


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A segment of the things that one ought to recollect while trading Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 are recorded underneath:
Make a course of action
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Danger the administrators
People ought to use danger the board gadgets and perceive how to spread the risk absolutely through a trading portfolio. This will allow consistent and huge increases to happen all through a particular period. In like manner, they ought to recall that trading the high-chance market with an edge can incite more prominent hardships. Or maybe, making humbler advantages in a low to coordinate risk market can make them extraordinary bitcoin sellers.
Do whatever it takes not to buy all trading news
Various people before trading will all in all read the news related to grandstand designs and when and where to trade pieces. As a general rule these pieces can be lopsided and can have an uneven evaluation. This can incite horrible decisions and perplexed data about the bitcoin trading circumstance. Or maybe, people should get some answers concerning cash related markets and how to restrain the risk pieces which can help with trading progressively splendid the long stretch.
Perceive stunts
Much equivalent to some other financial industry, Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 and other cryptographic currency markets are similarly stacked up with stunts, where various social occasions are scanning for Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 and honest vendors. No one ought to hold onto any condition whether or not deceived with a more prominent advantage scene. Think before trading in light of the fact that the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 are not ensured and if they are lost to a stunt, it is amazingly improbable the situation can be reexamined. Ceaselessly watch out on new pursuits or endless theories which would all have the option to be an indication of deceiving.
In case one is a cryptotrader and has the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑, by then these centers can be valuable in productive trading. Trading Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 at the we buy any bitcoin site is the most secure zone to trade uninhibitedly with no powerless peril and with complete course.
Bitcoin cash is an advanced cash fork of Bitcoin incredible. It was made in august 2017. It is significant that Bitcoin cash assembles the size of squares, which allows more trades to be taken care of. Bitcoin mining is the method by which trades are checked and added to the open record (known as the square chain). It is furthermore the techniques through which new Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 are released.
The route toward mining bitcoin cash.
You ought to consider how bitcoin cash is mined. There are two essential activities included:
  1. Burrowing for squares.
  2. Extension of trades to squares.
  3. Burrowing for squares
When burrowing for squares, excavators use their handling ability to find new squares.
The new squares are to be added to the square chain. The entire system is under 'confirmation of work' show. Exactly when another square is discovered, the diggers who made the disclosure are repaid richly. At present the prize goes at 12.5 Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑. There are various helpers available too.
  1. Extension of trades to squares
The ensuing stage incorporates adding trades to squares. Exactly when another square is discovered, the social event of excavators at risk for the exposure become brief despots of that square. Right when an excavator needs to send some bitcoin cash to another, he won't do it truly. It is a trade that must be added to the squares in the chain. Diggers for the most part charge a cost if you need your trade added to the squares. It is after the development that the trade is respected wrapped up.
It is significant that both cash and bitcoin use the proportional SHA256 hashing count. This suggests they fight for hashing power from a comparative social event of diggers. Bitcoin cash is in any case dynamically advantageous to mine.
The top diggers of cash are ViaBTC, AntPool, BTC.top, BTC.com among others. The mining profitability of the coin depends upon the estimation of the coin, its costs and the difficulty related with the mining. Inconvenience in mining augmentations as more excavators contribute their hash rate to the coin. This prompts lessened mining profit. Starting at now, the coin has the second - most essential 24-hour trading volume. It stays at $1.2 billion.It is in like manner amazingly consoling to mine the cash (BCH) in light of the fact that exchanges, for instance, Bithumb, Bitfinex and HitBTC license the bitcoin cash to be spared, pulled back and moreover to be traded.
Bitcoin cash is based on pivoting an example where very few online brokers recognize the bitcoin. This will be made possible by grasping more noteworthy square sizes. It will in like manner decrease to get SegWit. With these instruments set up, the coin will scale up so its square chain supports progressively total trades. This is implied as on-chain scaling.
The path toward mining cash isn't as tangled a similar number of would think. Two or three traditions and strategies ought to be viewed and the general method will give out the bitcoin cash. It is fundamental to observe that bitcoin was the first since perpetually decentralized cryptocurrency.Corda is a response for any the disintegration in the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 business through not simply passing on the unfathomable early assurance of the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 advancement yet also keeping an eye on business necessities for interoperability similarly as security. For instance, it enables associations to execute honestly by clearing the over the top gratings that are locked in with any business trades. Additionally, it guarantees all the business parties that they are reliably in a condition of concordance, which hence engages passionate efficiency benefits for exercises in the stunning industry.
In order to grasp what the Corda adventure is about, we should tunnel further looking at what it includes, its favorable circumstances, and how it achieves the insurance it ensures.
What is Corda?
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Genuinely arrange into affiliations systems.
Empower a fast sending of new system.
Engage a smooth change to new strategies.
As a phase, Corda doesn't have any computerized money worked in it, however rather it is one that controls existing and showed system and advancement. Taking everything into account, Corda doesn't require mining style accord. Such results to the proximity of amazing cost related with little business advantage.
Favorable circumstances of Corda in the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 World
Considering its recently referenced organized explanation, the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 world ought to watch Corda-for has brought into reality logically beneficial outcomes in the Binance Customer Care Number 𝟏𝟖𝟒𝟒-𝟗𝟎𝟕-𝟎𝟓𝟖𝟑 world. The critical ones are:
Engaging social occasions to execute honestly Through its bleeding edge cryptographic systems, Corda has ensured that quick trade of critical worth can effectively happen similarly as structures are in comprehension. These consequently help in clearing costs which therefore supports and starts the proximity of direct trades between parties included.
Ensuring and holding security over trade history-With the upkeep
submitted by Groundbreaking-Lab87 to u/Groundbreaking-Lab87 [link] [comments]

At what rate can mining productivity keep increasing?

Assuming the price doesn’t change (don't think in terms of fiat but actual goods and services), unless fees increase substantially (they are just around 1% of the block reward now: https://bitinfocharts.com/bitcoin/), mining won’t be profitable for some people after the next halving, which is bad for Bitcoin as it decreases difficulty and therefore makes it less safe (so it becomes less valuable, then mining is less profitable, difficulty drops again, price drops again... a vicious circle).
Fees increasing drastically would cause the same effect, it would make using BTC less attractive and drop its value.
Long term, to keep up with block reward decreasing by 50% every 4 years we need a combination of price increasing, fees increasing, mining productivity increasing. The price can’t keep doubling every four years indefinitely. Fees can’t increase much without hurting BTC’s price. So for difficulty to at least stay constant, we need mining productivity (hashes/electricity and other costs) to keep rising at a very high rate.
Assuming BTC rises indefinitely 5% a year, fees and difficulty stay constant, mining productivity would have to increase around 13% a year. How realistic is that?
Edit: After thinking more about the topic, I think I have the answer to my question. And I realize that the way I wrote my question wasn't clear enough.
Simply, if Bitcoin's price (imagine the price is in electricity, the same miners buy) and mining productivity can't keep rising, combined, at 19% a year at some point, there could simply be a consensus to stop dropping the reward or doing so more slowly (say "halving" it once every 8 years). That could happen several decades from now, when inflation is, say, 0.05%. I think Bitcoin users would find reasonable to keep an annual inflation of 0.05% if that rewards miners enough to keep the network safe.
After this I'm even more convinced about Bitcoin's brilliant future and inevitable triumph.
submitted by VSAlpha to Bitcoin [link] [comments]

Where is Bitcoin Going and When?

Where is Bitcoin Going and When?

The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.

Stock Market Crash

The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.

Economic Analysis of Bitcoin

The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.

Trading or Investing?

The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.

Technical Indicator Analysis of Bitcoin

Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
  • Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
  • VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
  • RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
  • Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.

Trend Definition Analysis of Bitcoin

Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.

Time Symmetry Analysis of Bitcoin

Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
  • Yearly Lows (last seven years): 1/1/13, 4/10/14, 1/15/15, 1/17/16, 1/1/17, 12/15/18, 2/6/19
  • Monthly Mode: 1, 1, 1, 1, 2, 4, 12
  • Daily Mode: 1, 1, 6, 10, 15, 15, 17
  • Monthly Lows (for the last year): 3/12/20 (10:00pm), 2/28/20 (7:09am), 1/2/20 (8:09pm), 12/18/19 (8:00am), 11/25/19 (1:00am), 10/24/19 (2:59am), 9/30/19 (2:59am), 8/29,19 (4:00am), 7/17/19 (7:59am), 6/4/19 (5:59pm), 5/1/19 (12:00am), 4/1/19 (12:00am)
  • Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
  • Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
  • Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
  • Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
  • 2/14/20 – yearly high ($10372 USD)
  • 3/12/20 – yearly low thus far ($3858 USD)
  • 5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
  • 5/26/20 – hashrate difficulty halvening
  • 11/14/20 – stock market low
  • 1/15/21 – yearly low for BTC, around $8528
  • 8/19/21 – end of stock bear market
  • 11/26/21 – eighteen months from halvening, average peak from halvenings (BTC begins rising from $3000 area to above $23,312)
  • 4/23/22 – all-time high
Taken from my blog: http://aliamin.info/2020/
submitted by aibnsamin1 to Bitcoin [link] [comments]

The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May

Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%.
Meanwhile, Network Demand Score which is a metric incorporating network velocity, transaction value, fees, and miner’s rolling inventory, climbed to 6/6 following the bitcoin halving meaning the network is growing stronger which could also be a sign that “we’re in a longer-term bull market.”
Since March 12th, just before the massive sell-off, this score has remained above a 3/6 reflecting growing strength in network activity and instilling confidence in the ongoing uptrend for the bitcoin price.
3 Reasons why fees skyrocketed
One component of this indicator, bitcoin on-chain fees has been surging like crazy.
Last week, Bitcoin average transaction fee climbed to $7, last seen in February 2018. This has the miner revenues from fees rising to the levels not seen for more than 2 years. But this week, it also dropped 55% to $3.13.
The increase in transaction fees, which is increasingly becoming more important for Bitcoin network security, has been because of the unconfirmed transactions piling on in mempool.
A decline in hash rate following halving caused fewer blocks to be found and will continue until the next difficulty adjustment has been one of the reasons behind this jump in fees.
The other reason is the large fluctuations in bitcoin price which has traders sending coins between exchanges.
Ather reason is a “mysterious entity which has been consolidating outputs at the highest fee rates, driving up fees for everyone,” pointed out Serrrgej Kotliar, CEO Bitrefill.
Who is this “Crazy1o1”?
Over the weekend Kotliar shared how, for the past 14 days, this mysterious entity has consolidated a lower-bound of 720 thousand outputs, 5 MB per day, more than BitMEX.
Since May 1st, this entity named “Crazy1o1” has spent around 804k UTXOs and has paid more than 104BTC in mining fees during this time, noted Laurent.
“On some days, these fees are equivalent to 10-12% of all the fees received by miners,” he said.
Laurent along with others suspect this entity to be the cryptocurrency exchange Coinbase.
Earlier this month, it was also found that crypto derivatives exchange BitMEX is making the bitcoin network expensive for everyone and its own users are paying 6.8% of total daily transaction fees.
Prepare for the next bull market
All of this a “decent fire drill for what might happen if we see another bull market,” said Kotliar. Grubles from Blockstream said,
“ON-CHAIN FEES AND BTC PRICE MOVEMENTS CHART. YOU CAN SEE THAT BIG MOVEMENTS RESULT IN PEOPLE RUSHING TO TRANSACT (ALMOST CERTAINLY TO/FROM EXCHANGES), PUSHING FEES UP FOR OTHER NON-TRADER USERS WHO NEED UNCENSORABLE / IRREVERSIBLE TRANSACTIONS.”
The fees reached its all-time high at over $55 during the peak of the bull market in December 2017. As such in the next bull market, a 5x growth in on-chain transactions should be expected.
But given that batching, one of the many ways the network has been scaled is here, it will prevent the pressure on the network from getting worse than 2017. But exchanges will need to be prepared for this.
submitted by kealenz to Buttcoin [link] [comments]

Buy Bitcoin in Dubai

Buy Bitcoin in Dubai with Cash
Your Crypto Cashpoint In Dubai

How to buy Bitcoin in Dubai?

You can buy bitcoin in Dubai at Coinsfera with cash, credit card, and bank transfer. Coinsfera is the crypto currency cashpoint where you can Buy & Sell more than 500 cryptocurrencies with cash in seconds.
  1. Make an appointment with Coinsfera staff via phone, Whatsapp or Telegram.
  2. Visit our Bitcoinshop in Dubai conveniently located at Baniyas Square-14th Rd – Dubai – United Arab Emirates.
  3. Pay with cash (Dirham or US Dollars) and get your Bitcoin.
One of the methods is cryptocurrency exchanges but it is not so easy for the unexperienced users. First, you will need to create an account on one of the major exchanges, confirm your identity, connect a credit card and transfer money, and only then you will be able to proceed with buying and selling bitcoin.
The whole process takes some time, unless, of course, the exchange is suffering from failures and you do not know how to do everything correctly.

First Bitcoin ATM in Bitcoin

In Dubai, there is also an ATM for buying BTC without identity verification. In Dubai, the first ATM was installed in 2019, allowing you to buy bitcoins without passing KYC. However, to withdraw fiat money, you will still need an identity card. Even though ATM is becoming more popular all over the world, security remains the main problem. This ATM was installed at the Rixos Premium Dubai JBR Wellness center in Dubai.
The device allows you to purchase bitcoins for cash. However, you do not need to present your identity card or pass KYC. Nevertheless, although the purchase of bitcoin is made anonymously, users are unlikely to be able to maintain confidentiality and a high commission than traditional exchanges. To use cryptocurrency in the future, you will have to turn to the services of exchanges and wallets, most of which currently require verification of identity before performing operations.
We offer one the easiest and the best way to purchase Bitcoin with cash. At Coinsfera, Transactions only take 10-15 minutes. Moreover, our friendly staff will provide you with full assistance in this case, if you have any difficulties or questions.

How to store bitcoin?

Bitcoins can be stored in two types of digital wallets: a hot wallet or a cold wallet. With a burning wallet, transactions are faster, while a cold wallet often includes additional security measures that help keep your assets safe, but also take longer.

Hot wallet

With the help of a hot wallet, bitcoin is stored on an exchange and is accessible via an app or a computer browser on the Internet. Even though the blockchain technology underlying bitcoin is even more secure than traditional electronic money transfers, bitcoin hot wallets are an attractive target for hackers.

Cold wallet

The cold wallet is a small encrypted portable device that allows you to download and transfer Bitcoins. Cold wallets can cost up to $100 but are considered much more secure than hot wallets. As a result, the choice remains for you which wallet to buy hot or cold. But you can think about this option in advance with the help of our qualified team, which will proconsul everything and help you create a wallet.

How to invest bitcoin correctly?

There are two ways to invest bitcoin. If you like the idea of day trading, one option is to buy bitcoin now and then sell it when its value rises. This method is popular since most users try to make a profit immediately. Sometimes this type of trade brings a good income, and sometimes insignificant. The second way is if you have analyzed the cryptocurrency market, especially the bitcoin market, and see it as the future of the digital currency, then you are investing in bitcoin. In other words, by purchasing it and investing your money. But this method is long compared to the first, which is a disadvantage.

Why should you buy bitcoin in Dubai?

Buy Bitcoin in Dubai
submitted by coinsfera to Coinsfera [link] [comments]

TradeOptionGains bitcoin site?

Got this weird DM on reddit idk what this guy is up to have any of you ever heard of this https://tradeoptiongains.com Site?
u/mikerobin25

Mikerobin2501:52 AM
Hello there
IDEKMyUsername09:34 AM
Howdy
Mikerobin2509:47 AM
How's it going?
IDEKMyUsername12:13 PM
Not bad.
What's up
Mikerobin2512:36 PM
I'm doing quite alright, How about you?
IDEKMyUsername12:53 PM
Not bad
Mikerobin2501:39 PM
Well, I don't mean to intrude but are you familiar with the term "cryptocurrency", Bitcoin to be precise?
IDEKMyUsername03:10 PM
Yes
Aye
Mikerobin2503:25 PM
Well, I'm at the moment engaging in an outreach aimed at expanding the clientele of my platform and enlightening the populace on the monetary potential of bitcoin trading and mining. Would you be interested in this?
IDEKMyUsername03:26 PM
Uh yeah sure I can look into it.
What does it include?
Mikerobin2503:28 PM
Are you familiar with the term "Bitcoin trading"?
IDEKMyUsername03:29 PM
Yeah somewhat
Like selling and buying it?
Mikerobin2503:33 PM
Well, Bitcoin trading is the process of making profits by buying Bitcoin at a low cost and selling it when the price goes up, This method is referred to as Dollar Cost Averaging(DCA). The Bitcoin trade is volatile, and price move by a significant margin. This activity is done on trading platforms.
Are you following?
IDEKMyUsername04:07 PM
Yep gotcha so far
Sorry had to pickup a call
Mikerobin2506:51 PM
No problem mate. Every platform has an investment procedure and ROI method. Unlike other platforms that engage in day trading (profiting from the volatility of bitcoin which is inefficient), My platform is registered with S9 ant miners that mine the bitcoin you invest to increase exponentially and that’s how you earn profits.
Have you heard of the term "Bitcoin mining"?
IDEKMyUsername06:52 PM
Yes I have
Mikerobin2506:57 PM
Good. For clarification, Bitcoin mining primarily involves generating and earning off the confirmation of blocks of transaction on the network such as the Blockchain network.
This is made possible with the use of special and sophisticated devices called the Bit main devices, Such as the AntMiner S9 and ASIC hardware. These devices are extremely expensive to maintain and require a lot of electricity generation and technical expertise which makes it rarely an option for private individuals who are interested in going into Bitcoin mining. But my platform has been able to provide for this disability.
Are you following?
IDEKMyUsername06:57 PM
I feel ya
Yes
Mikerobin2507:01 PM
Moving on, My platform operates a full S9 Antminer farm. The Antminer s9 has a hash rate of 12.93TH/s which is -+ 7%, Which could generate a ROI of 0.5 BTC within an investment period depending on the investment capital. Note: ROI stands for return of investment while hash rates a measure of how many times the network can attempt to complete this puzzle every second. This means that hash rate is a good indicator of the Bitcoin network's health.
Do i still have your attention?
IDEKMyUsername07:02 PM
Yes
Mikerobin2507:05 PM
Finally, All investments are made and monitored by the client (you) on the platform's website as you earn profits daily and you can contact me a "Broker" on the platform whenever you need assistance or more information.
https://tradeoptiongains.com
IDEKMyUsername07:05 PM
Hm
U have a history of wise investments?
I mean don't really know you so not like your a "professional" of any means
Mikerobin2507:06 PM
Certainly
We've been running for a span of 4 years now with optimum services provided
IDEKMyUsername07:38 PM
oh wow
gimmie some more deets?
how much money would I expect if i put a quick g bar in?
IDEKMyUsername07:53 PM
hm?
Mikerobin2507:54 PM
An investment of $1000 amounts up to the standard ROI stated above which is 50% of 1 bitcoin.
Apologies for the late reply, Was attending to a client of mine.
IDEKMyUsername07:55 PM
so invest of about $1000 would give ruffly 5?
nah ur good fam
like how I go about that tho u know
cause isn't bitcoin like kind of high right now?
Mikerobin2507:57 PM
Yeah though it would have been more profitable if you had started earlier when it was cheaper but you should be expecting more returns due to the halving coming up.
https://www.bitcoinblockhalf.com/
IDEKMyUsername07:58 PM
how high you think its going to get?
Mikerobin2507:59 PM
Its a highly speculative asset but from my experience and following it's previous halving events, Probably 15-18k.
IDEKMyUsername08:01 PM
oh jeez thats like as big as the big boom right?
how you know its gonna do that?
and what if it doesn't lol?
do I just l;ose it all
Mikerobin2508:05 PM
Exactly. If it doesn't, It would remain at its breaking point of 9k or peak point of 10k but i highly doubt it doesn't pump(rise) based on past halving events. You can simply get started by creating your personal account on the platform by which you can start by purchasing bitcoin and you can do this by clicking on the "Register" icon to get started.
IDEKMyUsername08:05 PM
hmmm idk
Kinda need some more security u know what I mean?
Mikerobin2508:08 PM
I understand. Loses are only made when you sell off, You money remains intact whether it rises or falls as long as you don't sell but your ROI is fully attained on your account on the platform.
IDEKMyUsername08:09 PM
o
Mikerobin2508:10 PM
Indeed
Mikerobin2508:20 PM
Any more questions?
IDEKMyUsername08:20 PM
uhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
no
Mikerobin2508:22 PM
Okay then, I'm available here if you're interested and need my assistance
Enjoy the rest of your day.
IDEKMyUsername08:25 PM
o
ok
Yesterday
Mikerobin2501:48 PM
https://www.fxstreet.com/cryptocurrencies/news/breaking-bitcoin-price-takes-down-9-000-as-10-000-beckons-202004300334
https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-price-gold-oil-2020-best-performing-assets-a9492641.html
IDEKMyUsername01:51 PM
O
I bought it
Mikerobin2501:51 PM
Pardon?
IDEKMyUsername01:52 PM
I bought one
Mikerobin2501:52 PM
On what platform?
IDEKMyUsername01:54 PM
I'm idk the one u sent me
Um*
Mikerobin2501:55 PM
Really? When did you do this and why wasn't i informed?
Today
IDEKMyUsername10:19 AM
Oh like last last night
I thought it was expected
U sent me the link and everything
;(
Mikerobin2510:22 AM
You would have informed me so i can enlighten you more on the procedure. Are you aware that it's a mining platform and you earn profits as an investor?
IDEKMyUsername10:23 AM
Yah so what would profit be ya reckon?
For let's say $1000 over liek a year
Mikerobin2510:24 AM
What name did you use in registering the account?
IDEKMyUsername10:24 AM
Uh I'd have to look it up
But how much profit did u say it would be about?
Mikerobin2510:27 AM
0.5 BTC a month depending on your investment capital that is, I would need the name of your account to register it under my personal database so i can provide you with information and assistance when needed.
IDEKMyUsername10:28 AM
O damn that's some big bucks right there
.5 btc like what 4g?
4 times 11 that's $44,000 a month
Mikerobin2510:30 AM
How much did you invest and what is the name of your account?
Your profit is calculated in respect of your investment capital
IDEKMyUsername10:31 AM
Like 11grand
Mikerobin2510:31 AM
And the name?
IDEKMyUsername10:31 AM
Mmmm
How do I find it?
Is there a way on the site
Mikerobin2510:31 AM
What name did you use in creating the account?
Didn't you register?
IDEKMyUsername10:32 AM
Oh like my irl name
I thought u meant like a username
Mikerobin2510:32 AM
Username is what i mean
IDEKMyUsername10:33 AM
It's gonna be under Jeffery Henderson
Jeffery L. Henderson
Mikerobin2510:35 AM
Okay, Give me a second to record it and ascertain your expected profit.
IDEKMyUsername10:35 AM
Sick
Did u find my account?
Mikerobin2510:41 AM
I can't find your records on the platform, Maybe a technical difficulty. Could you please sign in and send me a screenshot of your funds deposited through discord please?
IDEKMyUsername10:41 AM
So tell me mike
Where's the cash?
Mikerobin2510:41 AM
Pardon?
IDEKMyUsername10:41 AM
You lost it, oh you misplaced it.
Now mike you know I don't like to be lied to right?
Mikerobin2510:43 AM
Since i can't find your account on the platform, I guess that's the ending of our conversation.
Good day.
IDEKMyUsername10:43 AM
So why
THE FUCK
ARE YOU LIEING TO ME
Mikerobin2510:44 AM
Prove that you have an account on the platform by sending a screenshot
IDEKMyUsername10:44 AM
I cannot
I did it on
Computer
Mikerobin2510:45 AM
The sign in through your phone, Do i seem like a fool to you?
I have a lot of clients to attend to and i don't have time for games
IDEKMyUsername10:45 AM
I ain't the I one that took another man's money and now can't find it
You don't have other clients
Let's not play games here
How do I get my money out of this depreciating asset?
You better help me get my money out of this or were going to have a major issue
Mike...
IDEKMyUsername11:16 AM
U serious rn bro?
Ur gonna scam me out of my 💰
?
A day will come when you think yourself safe and happy,.
But suddenly your joy will turn to ashes in your mouth.
and you'll know the debt is paid
IDEKMyUsername08:01 PM
Br
You still my 11 grand
Stole
What's your name
Tell me
Or I'll find you
submitted by IDEKMyUsername to Scams [link] [comments]

Implementing a synthetic cryptoasset by leveraging RenVM mainnet and Ethereum DeFi protocols

Hi,
We are creating a new decentralized synthetic cryptoasset codenamed XOR on Ethereum ecosystem. We call it a synthetic asset becuase it's a synthesis of BTC, ETH and major altcoins and USD stablecoins. XOR lets investors and token-holders gain exposure to the BTC-Bitcoin and other cryptocurrencies while protecting them from extreme intraday price volatility and downside risks generally associated with cryptocurrencies. Basically XOR is a capital protection insurance with infinite upside potential.
XOR is an DeFi protocol that will allocate funds under its management to the following three classes of crypto assets: 1. Bitcoin and 2. USD-linked stablecoins and 3. Altcoins such as ETH, XLM and XTZ dynamically and directionally in a mutually exclusive way. If BTC value is either relatively stable or positively increasing relative to the purchasing power of the basket of Stablecoins-(USDC, TrueUSD and USDT), XOR protocol automatically buys more BTC/Bitcoins. But when BTC price negatively fluctuates and losses 3% or more value for more than >10 minutes, then XOR Conversion Contract automatically reshuffles and rebalances its portfolio of crypto assets to the basket of stablecoins by progressively selling BTC and Altcoins and by reallocating funds more and more.... to USD stablecoins in a calibrated manner guided by the DelayFunc(0.50%++/--) that limits buying/selling to 10% of the AUM until the target assets rises(while buying that asset) or falls(while selling) by another 0.5%. And again when BTC and Altcoin prices stabilize and their prices start increasing relative to the stablecoin basket by >1%, then XOR dynamically rebalances its portfolio to BTC and Altcoins by buying them in the open market indefinitely unless and until situation reverses itself and another portfolio swap of underlying AUM to stablecoins gets triggered by negative fluctuations of BTC/Altcoins.
And in order to generate surplus reserves to pay for transaction fees/gas prices due to frequent rebalancing of its protfolio, XOR will be lending up to 90% of its AUM(BTC, ETH, Altcoins and USD stablecoins) on DeFi markets like Bzx, DeFipulse, Kyber, Compound, Airswap and so on.
We are thinking of implementing three contracts to accomplish the functionalities of XOR: 1. Conversion contract, 2. Data oracle contract on Chainlink, and 3. an ERC20 contract as XOR token.
Now we are facing following challenges in implementing these contracts in order to maintain 100% fidelity to the mission and manifesto of XOR that's protecting our AUM assets from negative marekt downturns but also exposing them to positive market upturns:
  1. how to convert large amount of multiple cryptocurrencies to USD stablecoins e.g. USDC, USDT, TUSD, BUSD etc and vice versa without causing large spikes in prices of target assets in the DeFi markets and decentralized exchanges like IDEX or Binance DEX?
  2. how to manage cryptoassets under management and implement the trading rules, order routing and money management protocols?
  3. how to implement the logic of the contracts on ethereum platform alone by using wrapped coins such as WBTC? So instead of buying BTC, we will buy equivalent wrapped BTC which will overcome the difficulties in cross-chain conversion and reconversion.
  4. Is it technically feasible to employ RenVM mainnet to solve some of the challenges of rebalancing of crypto portfolio in most efficient and cost-effective way along with Bzx, Defipulse, Compound, Airswap and Kyber? What would be the ideal mechanism for building such a synthetic cryptoasset?
  5. How to implement a Proof-of-Asset subprotocol/explorer to transparently display cryptoassets-under-management of XOR?
We will award 40,000 Coins to each person here if we receive quality responses.
submitted by BubbaJohnPhilosopher to RenProject [link] [comments]

Do Perpetual Options Exist?

Perpetual futures contracts are gaining a lot of interest from not only cryptocurrency enthusiasts but also traders and members of traditional finance. Since 2017 when perpetual futures contracts were first launched, the derivatives market has evolved introducing options, ETFs and index trading based on cryptocurrencies. We have also seen the big traditional finance players like CME, Cboe and ICE taking part in this innovative and attractive world of cryptocurrency derivatives trading.
With the growing popularity of cryptocurrency derivatives products, especially perpetual futures contracts together with options trending as well, some traders may wonder what Perpetual Options may look like.
As always, let's begin by understanding what options are.

WHAT ARE OPTIONS?

Options are financial derivatives instruments where the value comes from the underlying assets such as stocks or cryptocurrencies. The buyer of the option contract is offered the choice to buy or sell the underlying asset at a pre-specified price and date. In contrast to futures, options contract holders give the right but not the obligation to buy or sell the underlying asset at the agreed price and date.
Options are split into two types.
One of the main differences between futures and options is that to buy the option, traders must pay for the premium. In the case of options, the rights are measured and priced as a premium. Something to note is that the premium always varies and this premium is what makes the options trading market.
Another thing to keep in mind is that options have a strike price which is the price set at which a derivative contract can be bought or sold at the exercise date. For example, a call option for 1 BTC with a 30 day expiry and strike price of $10,000 means the buyer of this call option has the right to purchase 1 BTC at $10,000 in 30 days time. Furthermore, there are variations in options on when you can exercise this contract. The two main types are the American and European options.

DO PERPETUAL OPTIONS REALLY EXIST?

Well.. There can be two sides to this question. Theoretically, it definitely could exist and many academics in the financial space are continuing research and studies on this topic. On a practical note, no registered options exchanges whether traditional or crypto have perpetual options listed. If this market place does exist, it would be likely to occur in the OTC(Over-The-Counter) market.
The main reason this exotic financial instrument faces difficulty is the pricing of the premium. American options are often priced with the binomial or trinomial tree model where it predicts its possible outcomes depending on the different exercise prices. All these are assumed to have some sort of exercise price.
However, for perpetual options, as it comes from the word "perpetual", it may never be exercised, making it difficult to have a good pricing model that can take into consideration the different types of predictions. In previous research, the martingale models were often used however would be very difficult to bring to the practical options trading, especially bitcoin options.
To help your understanding, I will set an example. Let's say the current BTC price is US$10,000 and you decide to buy a perpetual call option for US$1,000 with exercise price of $10,000. If the price of bitcoin does not go over the break even price of US$11,000 for the next 10 years or even 100 years, there is no reason to exercise this right. Let's say after 200 years the bitcoin price finally reached US$11,500, then this means the seller of the call option must have the underlying asset readily available for however long it may be until the exercise date of this contract. It is unrealistic to measure this in a single premium, thus making it difficult to compose a market place for this trade.
This doesn't mean it is impossible for perpetual bitcoin options to be released. An innovative financial instrument that is tweaked from the theoretical perpetual options model may be created. While options are mostly used to hedge against the price rise or fall, the options market is currently not as liquid as the perpetual futures markets.
On MyCoinStory.com, it is possible to hedge even with perpetual futures contracts as the platform provides up to 3 positions that can be held at once. For more info, go to this link.
Trade on MCS!

Traders always come first on MCS.
#Be_a_Trader | MCS


MCS Website: https://mycoinstory.com/ MCS Official Twitter: https://twitter.com/mycoinstory_mcs MCS Official Facebook: https://www.facebook.com/MyCoinStory.official MCS Telegram Chat: https://t.me/mycoinstory_EN MCS Official Blog : https://blog.mycoinstory.com
submitted by MyCoinStory to MyCoinStory [link] [comments]

Bitcoin options are breaking records, and exchanges are competing for this segment. We will tell you what these tools are and how they work

Bitcoin options are breaking records, and exchanges are competing for this segment. We will tell you what these tools are and how they work
Bitcoin options are breaking records, and exchanges are competing for this segment. We will tell you what these tools are and how they work
The cryptocurrency market is constantly evolving, integrating with the traditional and inheriting complex financial products such as futures and options.
Some types of fixed-term contracts are already firmly established in the bitcoin industry. This is noticeable by the activity of traders on the CME.
However, the situation with options is somewhat different. These derivatives are difficult to understand among ordinary market participants and are not yet so popular.
Nevertheless, there is a demand for such tools, as evidenced by the growth dynamics of this market segment and interest from platforms such as Binance and Bitfinex.
Bitcoin options have already been offered on CME, LedgerX and Bakkt, which are regulated and oriented primarily on whales. Among the unregulated sites, the leader is Deribit, followed by FTX and OKEx.
ForkLog magazine figured out what options are and what types of options are. We will talk about the features of these tools and the current state of affairs in the segment. In this article you will also find comments by leading market experts on the role of options in the industry.

What are options and how do they work?

An option is a financial contract concluded between two parties — the holder and the seller. The first receives the right, but not the obligation, to buy or sell a certain amount of the underlying asset at the strike price (strike price) on a specific date (expiration date).
The seller undertakes to buy or sell the asset at the request of the option holder. The latter pays the seller at the time of purchase of the contract a certain amount of money — the so-called premium.
The rights and obligations of the holder and seller differ significantly. The former has the right to choose whether to exercise the option or not. The seller is obliged to fulfill the terms of the contract at the request of the holder.
Parameters such as the type of underlying asset, expiration date, strike price are fixed at the time of issue of the contract, after which they cannot be changed.
Like futures, options are derivative financial instruments and derivatives. This means that they can be based on various underlying assets (BA) — stocks, indices or cryptocurrencies.
Like the options already existing in traditional finance for all major assets, there are contracts based on BTC and ETH on the cryptocurrency market. They are very interesting financial products“, said Su Zhu, head of Three Arrows Capital, in a conversation with ForkLog.
Options are used both for hedging risks and for speculative trading. For example, a speculator confident in the growth of the underlying asset buys a call option. If the BA price rises above the strike, the trader can use his contract to buy a discounted asset.
Derivatives such as options allow users to hedge risks and generate revenue. Derivatives play a key role in the traditional financial market. These tools are needed so that the cryptocurrency market continues to grow and develop, being filled with new participants“, said Aaron Gong, vice president of Binance Futures.

Practical use of options

Consider the simplest example of options hedging. Suppose there is a company manufacturing tomato paste, sauces and ketchups. There is a farmer supplying this company with tomatoes. He acts in conditions of fierce competition, close to perfect.
It is extremely important for a company to buy raw materials cheaper to minimize production costs and remain profitable. The farmer, in turn, hopes for a long-term cooperation with the company so as not to lose a major client.
The company offers the farmer an option, assuming the right to buy 10 tons of tomatoes of the next year’s crop at the current price — say, $1,000 per ton. To exercise this right, the company pays the farmer an option premium of 3% of the total transaction amount of $10,000, that is, $300.
The farmer will have to, at the request of the company, sell the appropriate quantity of goods at the above price and at a specified time.
A year later, the crop was high, which led to a decrease in the market value of tomatoes to $800 per ton. The company decides not to exercise its right to purchase raw materials for $10,000, as other farmers can buy the same 10 tons of tomatoes for only $8,000.
Thus, having lost only $300 as a premium on an option, the company is insured against price risk. Buying raw materials at a significantly lower market price is more than worth the price of the option contract.
Let’s imagine another scenario: the crop turned out to be unimportant and the price of scarce tomatoes jumped to $1200 per ton. Then the company will certainly take advantage of the right to purchase tomatoes for $1000. Thus, the result is any case.
It is easy to guess that the options can be used by miners to hedge the risks of adverse changes in the price of the extracted asset. For example, expecting a decrease in the price of BTC, miners can use options that give them the right to sell cryptocurrency in the future at a price higher than the breakeven point.
Miners are already very active in options markets. And, probably, they will remain active“, Su Zhu said.
Su Zhu is confident that in the long term, options will make the cryptocurrency spot market more liquid and attractive to a wide range of participants. He added that the growing popularity of such contracts among miners could significantly reduce sales pressure.
Options give miners the opportunity to fix the price of coins mined in the future. Miners can better manage their production costs and protect themselves from market volatility“, said Aaron Gong, expressing confidence that the popularity of options will continue to grow.
According to him, such tools open up new opportunities and may be of interest to speculators, funds and long-term cryptocurrency holders.
“Institutional investors are also showing growing interest in options and other derivatives. Last week it was reported that the famous Wall Street trader Paul Tudor Jones allocated a few percent from his Tudor BVI fund for bitcoin futures. This is a positive signal, which means that more and more institutions are interested in the cryptocurrency market“, Gong added.
However, option strategies are not suitable for every market participant — effective work with these tools requires certain experience, Co-founder of CoinIndex.agency Julia Sporysh is sure:
Of course, in order to use this effectively, the miner must have an experienced trader (option strategies are some of the most difficult on the market) — or they will have to unite and work through specialized trading companies. This market exists, although it is not for the general public.
Also, according to her, options may be of interest to funds and retail traders who have gained a hand in speculative trading.
Options are an independent and good speculative tool. And if you have positions in futures or in the spot market, it’s just the time to explore new opportunities“, added Yulia Sporysh.

Types of options

There are two main types of options — option call and option put. The first gives the right to the contract holder to purchase a certain amount of the underlying asset from the seller (they also say — the inscription) at the strike price on a certain date in the future. This type of option was used in the tomato example.
The put option, on the contrary, gives the buyer of the contract the right to sell the underlying asset at a fixed price. The latter may be higher than the market at the time of expiration, which is beneficial to the trader.
Market participants use the call, predicting an increase in the price of BA, and put — expecting it to decline.
More complex strategies use combinations of these two types of contracts.
There is also the term “covered option”. For example, an option call is covered if the seller has the amount of the underlying asset corresponding to the terms of the contract.
Options may also differ in the style of execution — American or European.
European-style options require the holder to execute the contract exclusively on the expiration date. Such options, in particular, are presented at CME and Bakkt.
American style implies the possibility of contract execution at any time prior to the date of expiration. Options of both styles are traded all over the world, their names have no relation to geographic location.
There are less standardized, exotic options. However, the popularity and importance of such instruments in the financial market is not so great.
Parameters and conditions for trading certain options are described in the specifications for them, which indicate the expiration date, strike price and other elements of the contract.

Premium, strike price and cash option

The option premium is the amount of money paid by the buyer to the seller. The premium is equal to the value of the contract and, in fact, represents a fee for the risk of adverse changes in the value of the underlying asset.
The option premium is formed by two components:
Intrinsic value — the amount that the buyer would receive if the contract were currently executed. It depends on the ratio of the price of the underlying asset and the strike.
Time value — depends on the time remaining until expiration. Usually, the less time it takes to execute a contract, the lower the premium.
As a rule, high price volatility contributes to premium growth, and vice versa. A deal with a close strike price in relation to the current one has much greater chances of closing in profit and, therefore, the premium for such an option will be relatively high.
The strike price is the price fixed in the option at which the buyer of the call option can buy (or sell, if this is a put option) the underlying asset. In turn, the seller of the contract is obliged to sell or buy BA.
Money is an indicator of the ability to receive funds from the exercise of the right to exercise a derivative. In the context of options, cash can be calculated by comparing the spot price of the BA and the strike price of the option. Thus, three options are possible:
• “in the money” option: in the case of a call — if the spot price is higher than the strike (then the intrinsic value of the contract is positive), in the case of a put, on the contrary, if the BA price is lower than the strike;
• option “on money” (or “with one’s own”) — equal strike to current stock quotes, intrinsic value equal to 0;
• the option “out of money” (“without money”) — the exercise of the option is not economically feasible; in such a situation, the current price of the underlying asset is lower than the strike price of the call option or, conversely, the spot price of the BA is higher than the strike price in the case of a put.

Option strategies

There are many option trading strategies. Four basic approaches can be distinguished.
Long call — buying a call option, the investor expects an increase in the price of the underlying asset above the strike on the expiration date of the contract. Then he will be able to buy an asset at a discount to the market price and thus earn on the difference. If the price drops below the strike, the buyer risks only the premium paid for the option.
Long put — is a kind of alternative to a short position in the spot market. The buyer of the put option hopes to make money, assuming that the price of the BA falls below the strike at the time of expiration. In this scenario, the investor may sell the asset at a higher price than the market price.
Also, through a put option, an investor can limit the risk of a fall in the price of an asset that has a long position open. According to Su Zhu, miners may use the “protective put” strategy, in whose activity a substantial and prolonged drop in the price of mined cryptocurrency is undesirable. Through such tools, miners can provide profitable or even break-even activity.
Short call — the investor acts as the seller of the contract, counting on a decrease in the price of BA below the strike on the date of expiration. However, the higher the price of the asset, the more losses the inscription bears. Thus, the risk of the seller of the contract is unlimited, and the profit potential is limited by the premium on the sale of the call.
Short put — the seller of such an option expects a premium on it, being firmly convinced that the price of the BA will be higher than the strike.
Combinations of these basic strategies may underlie more sophisticated options trading approaches, such as:
protective put — purchase of a put option for an available asset;
covered (secured) call — an investor sells a call option to an existing BA or which will be acquired simultaneously with the sale of the option; the strategy reduces the risk of owning an asset, since a fall in its price is partially offset by a premium;
straddle — a kind of bet on volatility, which implies the purchase of a call and put option on the same asset with the same expiration date and the same strike price;
strangle — almost the same as straddle, differs only in different strike prices.

Conclusions

Options are complex financial instruments, their mechanism of work is unlikely to be mastered immediately by most novice traders. Nevertheless, these derivatives may seem interesting to experienced market participants and, in particular, to miners.
The following advantages and disadvantages of options can be distinguished. Of the advantages of these contracts, we note:
- flexibility of use in speculative trading;
- the ability to use many combinations and trading strategies;
- a good tool for hedging risks;
- the ability to use in any trend — upward, downward, sideways.
Disadvantages:
- the difficulty of understanding the mechanism of work, especially for novice market participants;
- asymmetric conditions and, accordingly, risks for the buyer and seller;
- the complexity of trading strategies;
- the volatility of an option premium, which depends on the proximity of the expiration date and price dynamics in the spot market;
- low liquidity.
Different industry players have different cryptocurrency options. Some consider them promising tools useful for miners, funds, retail traders and the market as a whole. Others are convinced that such derivatives are archaism.
Nevertheless, options are gradually taking root in the cryptocurrency market. This is evident in the dynamics of trading volume and open interest. In addition, more and more exchanges are trying to add support for these contracts, which contributes to increased competition and further development of the industry.
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The One Thing EVERYONE Must Know About the Dev Funding Plan: IT'S COMPLETELY FREE.

sigh I get so tired of having to stop working to put out a post explaining issues. If anyone else wants to join in I could use help. (actually I've seen Jonald F. do this before too, so thanks JF!)
Things are bad when even developers don't understand what's going on. So I'll try to clearly explain an important point on the Dev Funding Plan (DFP from now on) for the community: it's completely free. Yet we still get panicked posts saying Please Save Us from the TAX!!! Somebody Help!
You may be for or against the DFP, but either way please at least understand what you're forming an opinion on.
Let's start from the beginning. We know Bitcoin works on blocks and block coin rewards. The block reward, which started at 50 coins per block, and cuts in half approximately every 4 years, serves two purposes: it's a fair way to bring coins into circulation, but more importantly it provides security for the network.
For simplicity, please think of "security" as being measured in power bars. When the network first started, with just Satoshi and Hal Finney, there was 1 power bar. This power bar was made up of the electricity their combined computer hardware used to find blocks. They were the first miners. Bitcoin uses a difficulty level to adjust how hard or easy it is to find blocks. This level is important for a key reason: we want the inflation rate of coins (how fast they come into circulation) to stay about the same, regardless how many miners (computing power) suddenly comes online. If the difficulty is set at super easy, but suddenly a super computer comes online that computer can gobble up thousands of coins in minutes if not seconds, creating massive rapid inflation. So the first thing to understand is that due to the Difficulty Level Adjustment the rate of coins coming into circulation will always stay about the same, regardless how many miners join or leave the network.
Getting back to power bars. So the point of Bitcoin is there is no center, no fixed authority. The problem is we still need a decision made about which chain is valid. This is where proof-of-work comes in. Satoshi's fairly brilliant solution to a consensus decision, with no leader, was to simply look for the longest chain (technically the chain with most hashing work). The reasoning was: as there are far more ordinary people than there are governments and dictators a Bitcoin supported by the all the world's people should always be able to muster more hashrate than even rich governments.
So Bitcoin began and people saw the brilliance: even with a weak power bar level of 1 (a couple computers), Bitcoin was safe from 51% attacks and attacking govs competing for control of the chain because a super low hashrate meant Bitcoin wasn't popular and govs wouldn't bother paying attention. By the time Bitcoin was big enough for govs to worry about attacking it should also have so many participants the power bar level would be far higher, providing strong defense.
Let's say the ideal power bar level is 50,000. At this level no government on earth has enough resources to beat the grassroots network. We hear people brag about how much security BTC has. However, the marketcap for all of BTC is about $160B. Countries like the U.S. and China have GDP measured in many trillions; a trillion is 1,000 billion. Does 160B really seem untouchable? For numeric comparison the main U.S. federal food assistance program cost the government $70B in 2016, representing about 2% of the budget. So the entirety of the BTC market cap is about twice the size of one welfare program, representing 2% of the overall budget. Where should we place the current security power bars if we want guaranteed safety from a determined U.S. gov? If 50,000 is guaranteed safe we're far from it. I'd say BTC is more like 5,000. That's still pretty decent.
Of course, BCH split from BTC... and didn't carry over all the miners and accompanying security. That's not an immediate concern because if BTC isn't on government's radar yet BCH sure isn't. However, that doesn't mean BCH doesn't need security from hostile forces. It's still a valuable network and needs defenses. Where would we put power bars for BCH? If BTC is 5,000 and BCH only has 3% of that hashrate then BCH has just 150. That's it.
How the Developer Funding Plan Works
Back to the DFP. What this says is as a community we agree to break off a piece of the block reward and instead of giving 100% to miners we give a small percent to developers. If each block is 10 coins and the price is $300 then winning a block means winning $3,000. Of course that's not all profit because miners have electricity and other expenses to pay before calculating profit. So if we reduce the portion of the miner reward by 10% so they get just 9 coins per block yet the price stays the same what happens? It means miners receive $2,700 for the same effort. We've just made it more expensive to mine BCH from the point of view of miners. What would any miner then rationally do? Seek profitability elsewhere if available. Suddenly BTC SHA256 hashing looks slightly more attractive so they'll go there. Hashrate leaves BCH and goes to BTC, but the key important point is BOTH chains have a difficulty adjustment algorithm which adjusts to account for rising or lowering miners overall, which keeps the coin inflation rate steady. This means BTC total hashrate rises (more miners compete for BTC) and its Difficulty Level rises accordingly, so the same rate of BTC pumps out; on BCH total hashrate falls (less miners compete for BCH) and its Difficulty falls, so the same rate of BCH pumps out. Inflation remains about the same on both coins so the price of both coins doesn't change any, beyond what it normally does based on news/events etc.
So what difference is there? The difference is total network security. Hashrate totals have changed. BTC gains more miner securing hashrate while BCH loses it. So BTC goes from 5,000 to say 5,100 power bars. BCH goes from about 150 to 140.
Does any of that matter in the grand scheme of things? Not in the slightest. Part of the reason is due to our emergency circumstances with BCH we had to rework our security model. Our primary defense is an idea I came up with, which BitcoinABC implemented, saying it's not sheer hashpower that dictates what chain we follow. We won't replace a chain we're working on if a new one suddenly appears if it means changing more than 10 blocks deep of history. This prevents all the threatening hashrate hanging over our heads from mining a secret chain and creating havoc unleashing it causing 10+ confimed txs to be undone, while exchanges, gambling sites etc. have long since paid out real world money.
Switching $6M worth of block rewards from mining to devs just means we lose a bit of hashrate security, while we gain those funds for development. Nothing more. Nobody holding BCH pays in the form of inflation or any other way. It costs literally NOTHING BECAUSE The block reward is ALREADY ALLOCATED. It will EITHER go 100% to mining security if we do nothing, or go to both miners and devs if the plan is put into effect. Hopefully this helps.
:)
TL;DR: we switch security which we don't really need, for developer funding which we do.
submitted by cryptos4pz to btc [link] [comments]

Zombie Strike: Arena Mode  IT'S SO HARD Bitcoin blockchain records mining difficulty record Bitcoin Price Volatility Expected as 10% Mining Difficulty Adjustment Bitcoin’s Active Supply Hits 19 Month Low — Is It Bullish or Bearish Crypto Exchange Open Interest Rises as Bitcoin Volatility Drops to New Low

Bitcoin Up provides 24 x 7 support for the users in case they face any difficulty. Does the Bitcoin Up Software Company Have Any Hidden Charges and Lock-in? No, there are no hidden charges like commissions of a broker or fees of a broker. The money you earn from the Bitcoin Up software is 100 percent yours. Bitcoin Mining difficulty rises by almost 15%, the highest level in over two years June 17, 2020 By Benson Toti Bitcoin’s mining difficulty is up by 14.95% bringing the level to its fourth-most difficult in history Bitcoin mining difficulty – the measure of how hard it is to earn mining rewards in the world’s largest cryptocurrency by market cap – has reached a new record high above 7.93 trillion. Bitcoin Mining difficulty rises by almost 15%, the highest level in over two years Bitcoin’s mining problem is up by way of 14.95% bringing the extent to its fourth-most tricky in historical past Bitcoin’s newest mining problem adjustment is the most important in over two years, as the extent higher by way of 14.95% to 15.78T. According to CoinMetrics data, the first positive adjustment in Bitcoin‘s network difficulty since May’s halving will occur tomorrow. This adjustment will be one of the largest since January 2018 and with an estimated increase of 15% it will also be one of the largest increases in the last 3 years, as can be seen in the following graph.

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Zombie Strike: Arena Mode IT'S SO HARD

If the mining difficulty rises and the price of Bitcoin decreases, miners will sell more BTC to cover their operational costs and the market could undergo a sharper correction that lasts until the ... Bitcoin (BTC) mining difficulty has reached a new all-time high of 17 trillion hashes, but the price of the cryptocurrency remains at the same levels. After last week BTC hashrateset a new all ... The Bitcoin Network Difficulty Metric The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. This video is unavailable. Watch Queue Queue. Watch Queue Queue This new mode in Zombie Strike is easy early on but then escalates and difficulty rises. Overall it's a new and fun game mode. I don't understand the reward system with the new character in the lobby.

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