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The ‘Satoshi Coins’ Would Make Bitcoin’s Creator One of the Wealthiest People in the World

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The ‘Satoshi Coins’ Would Make Bitcoin’s Creator One of the Wealthiest People in the World

The “pseudonym” Satoshi Nakamoto is worth more than $7 billion. Nakamoto’s potential bitcoin stake would be extremely high and would put the anonymous creator among the wealthiest people in the world.

Fiat currency’s fluctuation can easily be regulated by Government and Banks. But when it comes to cryptocurrency like Bitcoin, even big Banks are in handcuffs due to the secret identity of its founder and its decentralized nature.

Probing around the web, “Satoshi Nakamoto” is the only named revealed as the founder of Bitcoin, a computer programmer who invented Bitcoin and the currency’s cryptography with a decentralized nature. The identity is constrained in such a way that it points “pseudonym” which doesn’t specify whether it’s a man, woman, person or a group of people.

In 2008, the whitepaper appeared at metzdowd.com entitled “Bitcoin – A peer-to-peer Electronic Cash system.” Later in 2009, bitcoin has been launched with version 0.1 bitcoin software on Sourceforge.

However, it is still unclear who the real identity or identities behind “Satoshi Nakamoto” are, but the name was materialized across mailing list of whitepaper as the author. With increased popularity, Sergio Demian Lerner determined an estimate of how many bitcoin Satoshi Nakamoto held in 2013. Though he was unknown to everyone, in 2015, UCLA has announced him for the Nobel prize in a stream of Economic Science.

Bitcoin is continued reaching new milestone without valid evidence as to who invented it. Its decentralized volume has alleviated the new pace for country’s currency regulators to run the fiat currency in a more stabilized manner across the nation. Even though investor’s discussion, trader’s controversy and government’s regulation, Bitcoin is continuously trading with high volume.

Nothing prevents Bitcoin from breaking out the new record every time; few say it is a Bubble, others say it is a fake currency. There is no doubt that “cryptocurrency concept” originated with Bitcoin and now it has been used and continuing emerging across all businesses including banking, retailing, and media entertainment.

Nakamoto’s Bitcoin has a limit of 21 million where one million bitcoins are count for just under five percent of the total supply of the cryptocurrency. A bitcointalk post from 2011 elaborates on how the estimate of Satoshi’s worth was determined:

“the majority of the coins mined in 2009 (73 percent, 1,191,852 BTC) are still in possession of the original miner… Therefore I think we can safely assume that the people that mined the early coins in 2009 (likely “Satoshi Nakamoto and some friends”) did not sell or otherwise give away the majority of these coins. The coins that were moved (27 percent) might also well be still in their possession.”

John Hopkins University professor Matt Green has certainly described Satoshi’s power of overhauling the cryptocurrency market if they wish to do so. He further described Bitcoin as follows:

“The thing about bitcoin is if you control a million of them, you have the ability to flood the market at any point. Think of them as rare baseball cards. They’re valuable because they’re rare. If somebody could dump hundreds or thousands of Mickey Mantle trading cards, rare ones, onto the market, they wouldn’t be worth so much anymore.”

If Nakamoto would exist then his major share in Bitcoin would be much higher and would become a renowned person with the highest income in the world.

Accordingly, San Francisco’s investor expressed his opinion:

“If bitcoin fulfills its role of becoming a global currency, than Satoshi Nakamoto would likely be the richest person in the world and also hold a proportionately higher share of the ultimate supply of bitcoin than something like the U.S. government holds in gold today.”

However, Nakamoto said “Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone,” and it may be possible that these holdings are actually a very generous, initial donation whether intentionally or by accident, removing more than one million coins from the available supply forever.

Source

The post The ‘Satoshi Coins’ Would Make Bitcoin’s Creator One of the Wealthiest People in the World appeared first on Bitcoins Channel.

Source: Science of Crypto
The ‘Satoshi Coins’ Would Make Bitcoin’s Creator One of the Wealthiest People in the World

Mining Comes Back to Germany, but all the Good Graphic Cards are Sold out

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Mining Comes Back to Germany, but all the Good Graphic Cards are Sold out

Surprisingly mining is seeing a revival in Germany after it was declared dead due to high energy prices. The result is that most hardware merchants run out of suitable GPUs – like all over the world. There seems to be just not enough equipment to satisfy miner’s demand.

For many years, everybody was sure that in Germany mining was more or less dead. Due to the energy prices, which are among the highest in the world, it was no longer profitable. If people still mined here, they did it by because they get cheap energy.

However, today mining seems to have a revival in Germany. In the most important German forum for virtual currencies, coinforum.de, a lot of threads about mining emerged last weeks. Usually, people ask which software to use for mining, which graphic cards are best, and how to build a so-called “rig,” a mining-system with several GPU (graphic cards).

Mining is back. Chris of Bitcoin-Live, a long-term German miner, jokes that if the trend holds in Germany will soon replace China as the world’s leading mining place. But only a few miners use Asics to search for Bitcoins. Most use instead graphic cards to find Ether or Monero, the two biggest asic-resistant coins.

One reason for the unexpected comeback of mining might be that it is no longer recognized as just an obscure use of hardware, but more and more as something common. GPU mining has become regularly subject of reports of popular magazines like PC Magazine or PC Games, and the retail merchant Caseking promotes some of its products with the note that it can be perfectly used for mining.

The most important reason, however, is that mining has simply become profitable again.

Yes, you will make profits. At least for now.

It’s not rocket science to calculate the profitability of mining. On one side, you have the costs of your rig and the energy. On the other, you have the revenue.

Chris from Bitcoin-Live demonstrates with a simple example that mining Ethereum can be profitable. A rig for the price of €800 produces 45 megahash in a second and eats 350 Watts. With a price of 29 cents ($0.33) for a kilowatthour, the rig costs €2.44 ($2.79) a day but creates Ether worth €6.35 ($7.25). After running nearly seven months, the rig is paid off. Then it makes a daily profit until it is broken.

This calculation gets even better if you obtain your energy cheaper, be it by generating if by yourself, be it by getting industry rates. However, you need to take into account that the hash rate, especially of Ethereum, increases rapidly.

Mining is a zero sum game. The individual revenue decreases when more people participate. Therefore in the long run mining will always be a business of marginal costs; it will only be profitable when you push the expenses for hardware and energy down to the lowest level possible. This is why hobby mining is doomed to die at places with high energy prices, like Germany, and migrate to locations with low energy prices. This process could be perfectly observed in Bitcoin mining.

So – why is it different this time? Why is Germany mining again, despite the bad conditions? We will find the answer to this question in an astounding observation.

There are just not Enough Graphic Cards in the World

Usually, the difficulty of mining adjusts to the price. If the price of a cryptocurrency increases, more people mine it. So the hash rate increases, and with it the difficulty of mining. The system will always find a balance which reduces the profitability of mining to a very low margin.

Currently, this balance, however, seems lost. Let us look at Ethereum. Since mid-February the price of one ether increased from $18 to just above $400 at peak. It multiplied by a factor greater than 20.Now we look at the difficulty. It also increased, but only from 120 to 900, which is by a factor of 7.5. The values do slightly vary if you change the observation time – but there is no way around the recognition that the difficulty does not catch up with the price.

The astonishing conclusion must be; there are not enough graphic cards in the world to adjust mining difficulty to the price. A look at the availability of the cards most popular for mining confirms this.

Bitcoin-Live maintains a list with the graphic cards best suited for mining. For a long time, these have mostly been cards from the AMD Radeon series, like the RX 580 and 480. These models have evolved to the Yetis of the computer hardware: Everybody assumes they exist, but nobody has seen them. If you browse Amazon and the common German shops for computers in Germany, you will find that these cards are sold out nearly everywhere. Most shops do not even list a date when they will be able again to ship it.

A little better are the perspectives if you look on cards from Nvidia. For a long time Nvidia’s products have been unsuitable for mining, but since the GTX 1060 series Nvidia caught up with AMD. According to rumors, the company took mining into account when it developed the new series.

Graphic cards, however, are only part of the problem. Chris from Bitcoin-Live explains:

“No matter if you search for a GPU, a power supply unit, a small CPU or a mainboard with four or six PCIe ports – it is bloody hard to find something suitable.”

Especially if you want to create large rigs, you will have massive trouble to find hardware like the rare 1000 Watt power supply units.

Merchants Increase Prices, Gamers get Angry

The large merchants for computer hardware already reacted to the increased demand. Chris tells that “often you can only order two or three graphic cards for each shipping address. The hardware merchants try to protect their ‘normal’ clients.”

The non-mining users of graphic cards, like gamers, have often become angry toward the miners. For example, if you look at the comments on some YouTube videos, you find rough words against them: “So you the asshole that’s buying all the gpus….” or “fuck you dude you are the reason people can’t buy the things for their systems.”

Some merchants did also increase the price for mining hardware. In parts, as Chris says, drastically. “Some go as far that I would call it moon prices or usury. Especially when we talk about power supply units.”

And this is only the situation in Germany. In some other countries, it seems to be even more drastic. For example in Russia. Here mining has become so common, that the local markets have long reached a total lack of graphic cards. Hence more and more Russians living abroad started to participate in the import of graphic cards into Russia, a business which suddenly has become surprisingly profitable. Bitcoin.com reports:

“It has been reported that many Russian miners are able to generate up to twice the average monthly wage offered in the labor market, resulting in a huge glut of demand for mining equipment locally. Local media has reported that the number of Russians engaged in cryptocurrency mining has increased by 500 – 700 percent, rendering many GPU retailers unable to meet demand. With consumers purchasing graphics cards by the hundreds, merchants have responded with price hikes of up to 80 percent.”

Similar reports are available for South Africa, where magazines tell of a shortage of graphic cards suitable for mining. Even in the USA, it is nearly impossible for one Motherboard author to get his hands on good graphic cards to try out Ethereum mining.

The world, it seems, has simply not enough graphic cards to satisfy the demand of all the miners.

Source

The post Mining Comes Back to Germany, but all the Good Graphic Cards are Sold out appeared first on Bitcoins Channel.

Source: Science of Crypto
Mining Comes Back to Germany, but all the Good Graphic Cards are Sold out

Venezuela in Crisis: Bitcoin Remains a Haven

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Venezuela in Crisis: Bitcoin Remains a Haven

The inflation rate of the Venezuelan bolivar has increased to triple digits, leading to a financial turmoil which Venezuelans have struggled to cope with over the past two years. As a result, families and households have turned toward bitcoin, a decentralized digital currency, to mitigate the financial damage inflicted by the plummeting value of the Venezuelan bolivar.

In January 2017, Jim Epstein from Reason offered insights into the bitcoin mining ecosystem in Venezuela and the increasing level of bitcoin trading within Venezuelan black markets. Despite it being illegal in the country and the local government’s crackdown on bitcoin miners, young students and freelancers have started to mine bitcoin to secure lifelines for their families.

Alberto, a 23-year-old Venezuelan graduate with a degree in computer science, started mining bitcoin in December of 2016 due to the lack of job opportunities in the nation. The vast majority of available jobs even for fresh graduates with a degree in computer science, for example, paid a maximum rate of $20 per month, which was nowhere enough for Alberto to support his family financially.

Instead, Alberto turned toward bitcoin mining and began to earn over $1,900 on a daily basis by operating a bitcoin mining facility in Venezuela. Through his earnings, Alberto has been ordering foods and necessities through Amazon’s Prime Pantry.

Ryan Taylor, the CEO of Dash Core, the development company behind the seventh largest cryptocurrency Dash, explained in an interview that an increasing number of young and unemployed graduates and professionals have begun to study bitcoin and various ways to receive their earnings through bitcoin and other cryptocurrencies.

Taylor revealed that the demand toward Dash is also on the rise and the level of activity and engagement in their forums, Youtube videos and chat rooms amongst Venezuelan users have increased significantly.

“If you’re going to be in something volatile, you might as well be in something that’s volatile and rising than volatile and falling. We’re seeing huge demand in Venezuela through inquiries in our support line, as more and more people join our forums and chat rooms, even on how-to Youtube videos that have popped up. It’s in these locations where the incentives to go into digital currencies is the strongest. We’re seeing a lot of growth in the region,” said Taylor.

Many users in Venezuela are purchasing bitcoin through three major outlets and trading platforms; the country’s first and largest bitcoin exchange SurBitcoin, LocalBitcoins and black markets.

In June, the weekly LocalBitcoins trading volume in Venezuela doubled since April to $1.3 million, demonstrating an exponential increase in demand. For the week ending June 25, 425 bitcoin were traded on LocalBitcoins; this level has become the new normal since early 2017 as the crisis intensified. Comparing to countries with similar GDP per capita such as Brazil, Thailand, and South Africa, Venezuela’s demand for bitcoin is markedly higher. 

Jorge Farias, the CEO of Venezuelan bitcoin and Dash exchange Cryptobuyer, noted that the company had seen all-time high user growth in the past few months. Farias further emphasized that a large number of investors in Venezuela are using bitcoin to safeguard their savings and use it as a digital currency on a daily basis:

“Venezuelans use these alternatives not only to safeguard their savings, but also to be able to operate in daily business and commerce. An alternative to entrepreneurs and people who lack the means to buy and sell not only merchandise but services, and to send and receive remittances.”

Source

The post Venezuela in Crisis: Bitcoin Remains a Haven appeared first on Bitcoins Channel.

Source: Science of Crypto
Venezuela in Crisis: Bitcoin Remains a Haven

Three Services That Aim to Create Bitcoin Professionals and Experts

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Three Services That Aim to Create Bitcoin Professionals and Experts

professionals

Bitcoin can be a very technical subject, and oftentimes people have to find various resources online to educate themselves. However, there are a few organizations that instruct cryptocurrency enthusiasts through training and curriculum in order to edify the growing field of bitcoin professionals.

Also read: The Case for Using mBTC Over BTC Denominations

Education and Professional Expertise Helps the Growing Bitcoin Economy Flourish

As the bitcoin economy grows, there are many people looking to learn about the bitcoin protocol and the growing cryptocurrency ecosystem. A leading-edge network of professionals that understand the technology is needed to bolster the innovative technology into the future. In 2017, there are few ways an individual can become a certified bitcoin professional to advance their knowledge and careers.

Three Online Academic Bitcoin Courses    

The Cryptocurrency Certification Consortium

Three Services That Aim to Create Bitcoin Professionals and ExpertsOne educational program called the Cryptocurrency Certification Consortium (C4) teaches students how to be certified bitcoin specialists. C4 has three types of courses that enable people to become either a Certified Bitcoin Professional (CBP), a Certified Bitcoin Expert, and a Certified Ethereum Developer.

A graduating CBP claims to give an individual a significant grasp at understanding the bitcoin protocol, transactions, and network operation. “CBPs are able to apply Bitcoin technology to their professional area of expertise and understand privacy aspects, double-spending, and other issues that relate to the currency,” explains the educational consortium. The cost to become a CBP involves two years of study at the cost of $95 for the course and a $30 renewal fee.

A CBX gives an individual “expert-level knowledge” about bitcoin, says the consortium. C4 also claims the certification gives a person the ability to develop blockchain applications as well. “CBXes understand how peers communicate on the Bitcoin network, how transactions are crafted at the byte level and how Bitcoin scripts can be written to customize the behavior of transactions,” C4 details. This course is three years long but is not yet available to students.

The consortium is backed by a board of directors which include Andreas M. Antonopoulos, Vitalik Buterin, and Michael Perklin. Furthermore, C4 has well-known advisers such as Ethereum co-founder Charles Hoskinson, Director of the Bitcoin Education Project, Peter Todd, Bitcoin Core Developer, and Steve Dakh, author of Kryptokit and Rushwallet.

Digital Currency Council

Three Services That Aim to Create Bitcoin Professionals and ExpertsThe Digital Currency Council (DCC) was created in 2014 in New York by David Berger, the school’s founder and CEO. DCC claims to have over 1500 members from 90 countries worldwide utilizing the organization’s digital currency training, and certification. The group calls itself an “association of professionals in the digital currency economy.”

The DCC Professional Certification Training Program is shorter than the two-year consortium course with only a seven-hour online program. However, the course is far more expensive costing $299 for students taking the final exam. The DCC advisory faculty covers the six sections called “core competencies” which include cryptocurrency technical underpinnings, monetary implications, practical use, bitcoin’s ecosystem, accounting, and legal subjects. DCC also offers a self-assessment test to see if you qualify for the certification training program. The school is also backed by Barry Silbert’s Digital Currency Group and the Silicon Valley accelerator 500 Startups.

“The DCC Certification, like other professional certifications, allows us to hold professionals who are advising clients to a higher standard, and provide a benchmark for evaluating skill and professional value,” Barry Silbert, CEO of the Digital Currency Group explains on the DCC website.

Coursera: Bitcoin and Cryptocurrency Technologies

Three Services That Aim to Create Bitcoin Professionals and ExpertsPrinceton’s Coursera computer science class called “Bitcoin and Cryptocurrency Technologies” is a free course from Princeton University. Assistant Professor Arvind Narayanan instructs the class on a variety of lessons that cover the innovative technology at a “technical level.” The next class begins on May 15 and begins to discuss cryptographic building blocks and introduces the concept of cryptocurrency.

“After this course, you’ll know everything you need to be able to separate fact from fiction when reading claims about Bitcoin and other cryptocurrencies,” explains the Princeton Coursera website. “You’ll have the conceptual foundations you need to engineer secure software that interacts with the Bitcoin network. And you’ll be able to integrate ideas from Bitcoin in your own projects.”

The Coursera class is eleven weeks long discussing subjects like decentralization, the mechanics of bitcoin, regulation, mining, altcoins, and more. Every week the course offers an interactive textbook, pre-recorded videos, quizzes, and projects. Furthermore, students can connect with other peers and converse about course material.

Furthering Bitcoin Careers and Creating Crypto-Professionals

There are other ‘certification style’ digital currency education programs online but do some research on the course and organization before registering. Teaching a broader audience of professionals is a good idea to continue progressing the new digital economy.

These types of certificate programs may even further an individual’s career, and it’s also possible to learn at home for free. Besides Coursera’s free course, there is a boatload of information on bitcoin and its technical aspects. However, people often enjoy a class setting and a certificate from an organization from accredited luminaries in the bitcoin space could go a long way.

What do you think about these certification programs and courses covering the cryptocurrency environment? Let us know in the comments below.

Images via Bitcoin.com, C4, DCC, and Coursera websites. 

Bitcoin.com’s own store features a wide range of interesting Bitcoin-related products. Looking for a hardware wallet? We got ‘em. Want a good-looking t-shirt? It’s there. Want to gift a nice Bitcoin tea cup? Go shopping.

Source

The post Three Services That Aim to Create Bitcoin Professionals and Experts appeared first on Bitcoins Channel.

Source: Science of Crypto
Three Services That Aim to Create Bitcoin Professionals and Experts

Source: Science of Crypto
Three Services That Aim to Create Bitcoin Professionals and Experts

Three Services That Aim to Create Bitcoin Professionals and Experts

by writer
Three Services That Aim to Create Bitcoin Professionals and Experts

professionals

Bitcoin can be a very technical subject, and oftentimes people have to find various resources online to educate themselves. However, there are a few organizations that instruct cryptocurrency enthusiasts through training and curriculum in order to edify the growing field of bitcoin professionals.

Also read: The Case for Using mBTC Over BTC Denominations

Education and Professional Expertise Helps the Growing Bitcoin Economy Flourish

As the bitcoin economy grows, there are many people looking to learn about the bitcoin protocol and the growing cryptocurrency ecosystem. A leading-edge network of professionals that understand the technology is needed to bolster the innovative technology into the future. In 2017, there are few ways an individual can become a certified bitcoin professional to advance their knowledge and careers.

Three Online Academic Bitcoin Courses    

The Cryptocurrency Certification Consortium

Three Services That Aim to Create Bitcoin Professionals and ExpertsOne educational program called the Cryptocurrency Certification Consortium (C4) teaches students how to be certified bitcoin specialists. C4 has three types of courses that enable people to become either a Certified Bitcoin Professional (CBP), a Certified Bitcoin Expert, and a Certified Ethereum Developer.

A graduating CBP claims to give an individual a significant grasp at understanding the bitcoin protocol, transactions, and network operation. “CBPs are able to apply Bitcoin technology to their professional area of expertise and understand privacy aspects, double-spending, and other issues that relate to the currency,” explains the educational consortium. The cost to become a CBP involves two years of study at the cost of $95 for the course and a $30 renewal fee.

A CBX gives an individual “expert-level knowledge” about bitcoin, says the consortium. C4 also claims the certification gives a person the ability to develop blockchain applications as well. “CBXes understand how peers communicate on the Bitcoin network, how transactions are crafted at the byte level and how Bitcoin scripts can be written to customize the behavior of transactions,” C4 details. This course is three years long but is not yet available to students.

The consortium is backed by a board of directors which include Andreas M. Antonopoulos, Vitalik Buterin, and Michael Perklin. Furthermore, C4 has well-known advisers such as Ethereum co-founder Charles Hoskinson, Director of the Bitcoin Education Project, Peter Todd, Bitcoin Core Developer, and Steve Dakh, author of Kryptokit and Rushwallet.

Digital Currency Council

Three Services That Aim to Create Bitcoin Professionals and ExpertsThe Digital Currency Council (DCC) was created in 2014 in New York by David Berger, the school’s founder and CEO. DCC claims to have over 1500 members from 90 countries worldwide utilizing the organization’s digital currency training, and certification. The group calls itself an “association of professionals in the digital currency economy.”

The DCC Professional Certification Training Program is shorter than the two-year consortium course with only a seven-hour online program. However, the course is far more expensive costing $299 for students taking the final exam. The DCC advisory faculty covers the six sections called “core competencies” which include cryptocurrency technical underpinnings, monetary implications, practical use, bitcoin’s ecosystem, accounting, and legal subjects. DCC also offers a self-assessment test to see if you qualify for the certification training program. The school is also backed by Barry Silbert’s Digital Currency Group and the Silicon Valley accelerator 500 Startups.

“The DCC Certification, like other professional certifications, allows us to hold professionals who are advising clients to a higher standard, and provide a benchmark for evaluating skill and professional value,” Barry Silbert, CEO of the Digital Currency Group explains on the DCC website.

Coursera: Bitcoin and Cryptocurrency Technologies

Three Services That Aim to Create Bitcoin Professionals and ExpertsPrinceton’s Coursera computer science class called “Bitcoin and Cryptocurrency Technologies” is a free course from Princeton University. Assistant Professor Arvind Narayanan instructs the class on a variety of lessons that cover the innovative technology at a “technical level.” The next class begins on May 15 and begins to discuss cryptographic building blocks and introduces the concept of cryptocurrency.

“After this course, you’ll know everything you need to be able to separate fact from fiction when reading claims about Bitcoin and other cryptocurrencies,” explains the Princeton Coursera website. “You’ll have the conceptual foundations you need to engineer secure software that interacts with the Bitcoin network. And you’ll be able to integrate ideas from Bitcoin in your own projects.”

The Coursera class is eleven weeks long discussing subjects like decentralization, the mechanics of bitcoin, regulation, mining, altcoins, and more. Every week the course offers an interactive textbook, pre-recorded videos, quizzes, and projects. Furthermore, students can connect with other peers and converse about course material.

Furthering Bitcoin Careers and Creating Crypto-Professionals

There are other ‘certification style’ digital currency education programs online but do some research on the course and organization before registering. Teaching a broader audience of professionals is a good idea to continue progressing the new digital economy.

These types of certificate programs may even further an individual’s career, and it’s also possible to learn at home for free. Besides Coursera’s free course, there is a boatload of information on bitcoin and its technical aspects. However, people often enjoy a class setting and a certificate from an organization from accredited luminaries in the bitcoin space could go a long way.

What do you think about these certification programs and courses covering the cryptocurrency environment? Let us know in the comments below.

Images via Bitcoin.com, C4, DCC, and Coursera websites. 

Bitcoin.com’s own store features a wide range of interesting Bitcoin-related products. Looking for a hardware wallet? We got ‘em. Want a good-looking t-shirt? It’s there. Want to gift a nice Bitcoin tea cup? Go shopping.

Source

The post Three Services That Aim to Create Bitcoin Professionals and Experts appeared first on Bitcoins Channel.

Source: Science of Crypto
Three Services That Aim to Create Bitcoin Professionals and Experts

Study Shows Forum Comments Can Predict Bitcoin’s Price with Over 80% Accuracy

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Study Shows Forum Comments Can Predict Bitcoin’s Price with Over 80% Accuracy

Study Shows Forum Comments Can Predict Bitcoin's Price with Over 80% Accuracy

A research paper published last week shows that forum user comments can be used to predict the value fluctuation of bitcoin to an accuracy of over 80 percent.

Also read: Asset Managers Recommend Bitcoin to Hedge Against US Stock Market Risks

Study Funded by Korean Government

Study Shows Forum Comments Can Predict Bitcoin's Price with Over 80% AccuracyA research paper entitled “When Bitcoin encounters information in an online forum: Using text mining to analyse user opinions and predict value fluctuation” was published last week. It is co-authored by five researchers from two universities in South Korea; Korea University and Kangnam University.

This study was supported by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education, Science, ICT and Future Planning. It is also funded by the Korean government through Institute for Information & communications Technology Promotion (IITP).

“In order to predict the price fluctuation of bitcoin, we analyse the comments posted in the Bitcoin online forum,” the authors wrote, referring to the Bitcointalk forum, adding that:

Our approach involved extracting keywords from Bitcoin-related user comments posted on the online forum with the aim of analytically predicting the price and extent of transaction fluctuation of the currency.

The Method

Study Shows Forum Comments Can Predict Bitcoin's Price with Over 80% AccuracyThe method used in this study involves data extraction, data gathering, data analysis and model development. Keywords of interest from user comments were extracted as well as daily bitcoin transaction counts and prices.

Data were crawled from the “Bitcoin Discussion” section of the Bitcointalk forum from December 1, 2013, to September 21, 2016. The daily bitcoin price and the number of transactions for the above period were crawled from Coindesk. In addition, Google Trends data and Wikipedia usage data were gathered using the keyword “Bitcoin”.

The relationship between the Bitcoin transaction count and price based on the extracted keywords and quantification was analyzed. “Then, we developed a model based on deep learning to predict the Bitcoin transaction count and price,” the paper details.

Over 80% Accuracy

After extensive analysis, the researchers concluded:

We analysed the user comments posted on a Bitcoin online forum to predict the fluctuation in the bitcoin price and transaction count. Based on the easily accessible online data, the proposed method predicted the bitcoin price fluctuation with an accuracy rate of over 80%.

Study Shows Forum Comments Can Predict Bitcoin's Price with Over 80% Accuracy“Online user postings influenced Bitcoin transactions,” the authors found, claiming that their method shed light on some aspects of how comments affect users’ decisions to buy and sell the cryptocurrency.

They then suggested various ways of improving the accuracy of prediction such as using quantitative analysis on search results or relevant content. Forum posts could also be filtered more meticulously for added accuracy.

In conclusion, they asserted that their method “is conducive to understanding a range of cryptocurrencies other than bitcoin and increasing their usability,” adding that it can also be useful in many other fields.

Do you agree with their finding that forum user comments can predict bitcoin’s price fluctuation with more than 80% accuracy? Let us know in the comments section below.

Images courtesy of Shutterstock

Need to calculate your bitcoin holdings? Check our tools section.

Source

The post Study Shows Forum Comments Can Predict Bitcoin’s Price with Over 80% Accuracy appeared first on Bitcoins Channel.

Source: Science of Crypto
Study Shows Forum Comments Can Predict Bitcoin’s Price with Over 80% Accuracy

Homeland Security’s U.S. Citizenship and Immigration Considers Bitcoin

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Homeland Security’s U.S. Citizenship and Immigration Considers Bitcoin

Immigration

During the first week of May, the Department of Homeland Security (DHS) and the agency’s Citizenship and Immigration Services (USCIS) branch have shown a keen interest in bitcoin and blockchain technologies. On May 2 DHS awarded three blockchain-based startups $2.25 million for research and development. Following this announcement, the very next day Homeland Security’s USCIS department detailed they are considering bitcoin for U.S. Visa application and payment fees.

Also read: Widespread Ransomware `Wannacry´ Linked to NSA Exploit     

Homeland Security Injects $2.25 Million Into Distributed Ledger and Blockchain Surveillance Startups

Homeland Security's U.S. Citizenship and Immigration Considers Bitcoin Three startups working with blockchain related technologies have been given grants worth $2.25 million USD to further their projects. The projects receiving DHS funding include Blockcypher, the bitcoin blockchain surveillance company, Digital Bazaar, a verification project, and Evernym a blockchain-based key management firm. Dr. Robert Griffin, the acting DHS Secretary for Science and Technology, said the funding would improve the country’s security in the long run.    

“The Small Business Innovation Research Projects (SBIR) program enables us to capture some of the best scientific thinking to find solutions to apply in the current threat landscape,” explains Dr. Griffin.

The U.S. agency has been bolstering blockchain projects for over a year now by funding a few projects within the landscape. Last year DHS awarded $200,000 USD to Factom for a blockchain-based identification system.

The U.S. Citizenship and Immigration Services Considers Bitcoin for Visa Applications and Service Fees

Homeland Security's U.S. Citizenship and Immigration Considers Bitcoin Alongside the recent DHS funding during an EB-5 National Stakeholder Engagement on May 3rd, the Immigrant Investor Program Office (IPO) Division Chief Lori MacKenzie said the organization is considering bitcoin payments for services. Essentially this would open up the possibility for immigrants to pay Visa application fees with bitcoin.

“USCIS is currently considering issues involving virtual currency such as Bitcoin,” explains MacKenzie’s National Stakeholder Engagement report. “USCIS cannot provide blanket assurances regarding any particular form of transfer, but we will continue to evaluate evidence provided by petitioners to determine whether the relevant statutory and regulatory requirements have been met, including evidence that the funds invested belong to the petitioner, and were acquired, directly and indirectly, by lawful means.”

Some Cryptocurrency Proponents Believe U.S. Government Agencies Can Legitimize Bitcoin in a Completely New Way  

The U.S. government, in general, has been quite focused on digital currency solutions and blockchain concepts over the past year and a half. The latest DHS announcement is a continuation of the SBIR funding program and both Block Cypher, and Digital Bazaar has already received previous awards from the U.S. agency.

Homeland Security's U.S. Citizenship and Immigration Considers Bitcoin

While the statements from USCIS are quite positive towards the bitcoin protocol, some cryptocurrency proponents believe it could add some legitimacy to the digital currency. “It legitimizes bitcoin in a completely new way and means that regulators have to consider the US government as a legitimate user of bitcoin when proposing regulation,” explains a bitcoin enthusiast after hearing the USCIS news.

What do you think about DHS funneling millions to blockchain projects? What do you think about the USCIS considering bitcoin as payment for immigration services? Let us know in the comments below.

Images via Shutterstock, DHS, USCIS, and Twitter. 

At News.Bitcoin.com all comments containing links are automatically held up for moderation in the Disqus system. That means an editor has to take a look at the comment to approve it. This is due to the many, repetitive, spam and scam links people post under our articles. We do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published. 

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The post Homeland Security’s U.S. Citizenship and Immigration Considers Bitcoin appeared first on Bitcoins Channel.

Source: Science of Crypto
Homeland Security’s U.S. Citizenship and Immigration Considers Bitcoin

SegWit-2MB: The Solution to the Block Size War – or the Submission of Bitcoin to Politics?

by writer
SegWit-2MB: The Solution to the Block Size War – or the Submission of Bitcoin to Politics?

Bitcoin developer Sergio Lerner has proposed a compromise, a 2MB hard fork with a SegWit soft fork. The developers are not overly enthusiastic, while some prominent members of the community are thrilled.

In older times, when wars were not yet mechanized and digitized, the opposing parties made peace often just for the reason that they have become war-weary. The nations and empires became drained from the war, and whatever the goals have been – the cost of more war was higher than the renounce of the victory.

Sometimes you can think that Bitcoin’s block size war could similarly end only by exhaustion. The rally altcoins saw last weeks might be a first, strong signal that the years long conflict how to scale Bitcoin did reach a point, in which the costs of it became clearer and clearer. The fear, to miss departure becomes bigger than the fear of doing something imperfect.

Accordingly, Argentinian Bitcoin developer Sergio Lerner announced his SegWit-2MB proposal in the Bitcoin mailing list explicitly with the following preamble, “The sole objective of this proposal is to re-unite the Bitcoin community and avoid a cryptocurrency split.  SegWit-2MB does not aim to be the best possible technical solution to solve Bitcoin technical limitations […] it is not a new solution, but it should be seen more as a least common denominator.”

Lerner’s proposal is rather simple. Do both:

“SegWit-2MB combines SegWit as it is today in Bitcoin 0.14+ with a 2MB block size hard-fork activated ONLY if SegWit activates (95 percent of miners signaling) but at a fixed future date.”

His goal is to have a minimalistic solution, which can be written, reviewed and tested in a short amount of time. SegWit should be available in the very new future, while the hard fork to 2MB should be activated somehow around December 2017.

“I want to see miners, developers and industry side-by-side pushing Bitcoin forward, to increase the value of Bitcoin and prevent high transaction fees to put out of business use-cases that could have a high positive social impact. I believe in the strength of a unified Bitcoin community,” Lerner evokes the community to take a path to unity.

Seems like he has a good point. The idea to do both – SegWit and a 2MB hard fork – has also been the item which got most support in a survey in the surrounding of German Bitcoin marketplace Bitcoin.de. But how did other developers react?

Not Much of a Helpful Idea…

The first answer, Lerner got on his proposal, was not really encouraging. Matt Corallo, Bitcoin Core developer and co-founder of Blockstream, gave a somehow educating answer:

“You appear to have ignored the last two years of Bitcoin hard fork research and understanding, recycling instead BIP 102 from 2015.”

Corallo criticizes that the only foundation of Lerner’s proposal was a “compromise for compromise sake.” He advised Lerner to consider, “as a minimum,” several things to do, going from the better mechanism for the activation of the hard fork to new limits for non-SegWit block space and an improvement of the economic mechanism of SegWit. But even if he did – Corallo sees a lot of risks in Lerner’s proposal for which he does not know technical solutions.

Other developers reacted similarly. Jorge Timón, also co-founder of Blockstream, explains the problem with the SegWit-2MB: “If SegWit is controversial the way it is […], adding more consensus rule changes won’t make it any less controversial. If anything, it would be removing consensus rule changes, not adding them that could make it less controversial.” Timón doesn’t want to discourage Lerner, but says, “I really don’t see how it helps getting out of the deadlock at all.”

Some other people, both on the side of Core as of Unlimited, disqualified SegWit-2MB as “the worst of both worlds.” If you have SegWit, you do not need a block size hard fork now; and if you have a hard fork, you do not need to go down the SegWit as a soft fork path.

A Proposal to Heal the Community Split

Erik Vorhees, founder and CEO of ShapeShift.io, however, likes the proposal. On his Blog Money and State, he presents Lerner’s SegWit-2MB and adds the comment: “And I’d like to make the case that it should be considered…”

Like Lerner, Vorhees appeals on the unity of the community: “Society needs what we’re building, not to be forced upon them, but rather offered; a kind and reliable refuge from the tyranny of the world’s financial manipulators. That’s why many of us are involved.” During the past few years, however, something changed:  “The former friendship among strangers, a rare camaraderie derived from the justness of a great cause, has decayed into conflict.  We all see and feel this, and for those of us who truly care about this project, it is miserable. Perhaps many had even forgotten what the community felt like just a few years ago when the enemy was not ourselves.”

But that’s just a part of the whole story:

“Further, the unfortunate context in which this is occurring is one of diminishing utility on the platform: transactions are getting more expensive and less reliable. The user experience of sending a Bitcoin transaction today is worse than it was two years ago […] Do not let yourself be tricked into thinking that the rising price implies fundamental soundness. Prices follow utility, and the latter may fall well before the former realizes it.”

Bitcoin is a brilliant machine – but also and maybe more importantly: a social project. Lerner’s proposal is for Vorhees not unique for technical reasons, but “in its potential to unify. It has the potential to unify not only disparate technical beliefs but the social fabric of this community, which is as important. Any alternative, which even may be superior technically, while not resolving anything socially, must be said to be in fact inferior.”

Andreas Antonopolous, the most prominent Bitcoin speaker, agrees with Vorhees on Twitter; SegWit-2MB is not perfect, but better than more scalability war.

Agreeing with Eric. Segwit2MB is far from ideal but better than more scaling war. A political, not tech solution. https://t.co/3ASD6oHwLv

— Andreas (@aantonop) April 2, 2017

Does Bitcoin Need to Ignore Every Political Decision?

Sure, not everybody agrees with Vorhees and Antonopolous. This is the Bitcoin community. Many even think it is a recipe for a disaster to submission Bitcoin development under political compromises.

Adam Back, CEO of Blockstream, pointed to the hard fork research of Core developer Johnson Lau and reminded to separate science and politics:

@aantonop @johnsonlau01 See https://t.co/mKyLWzT1Ko and upcoming posts. Dont let politics scientific progress. That way lies moral hazard and political currency.

— Adam Back (@adam3us) April 3, 2017

And Nick Szabo, who has been alleged to be Satoshi Nakamoto, but most likely is not, added that SegWit-2MB is like appease an angry mob by damaging Bitcoin’s security.

@dieguito @ErikVoorhees @adam3us @aantonop @johnsonlau01 @SDLerner @brucefenton It tries to appease an ignorant mob at further expense to Bitcoin’s security.

— Nick Szabo (@NickSzabo4) April 3, 2017

As a matter of fact, it is problematic to make Bitcoin development dependent on political solutions. After all, it is the distance from politics which explains why most people like Bitcoin. What when the politicians start to demand the blacklisting of transactions? What if they want to regulate the creation of new coins? Where does it stop?

On the other side, you should be aware that it is an illusion that there is no politics in Bitcoin. You can never find a consensus without politics, even if you do not see them on the surface.

Source

The post SegWit-2MB: The Solution to the Block Size War – or the Submission of Bitcoin to Politics? appeared first on Bitcoins Channel.

Source: Science of Crypto
SegWit-2MB: The Solution to the Block Size War – or the Submission of Bitcoin to Politics?

Mitigating Vulnerabilities In Blockchain Security: Will QRL Work?

by writer
Mitigating Vulnerabilities In Blockchain Security: Will QRL Work?

In a 2016 Forbes column, Cornell University Computer Science professor Emin Gün Sirer when asked about the main security threats facing cryptocurrency, he responded by saying, “everything.” Then there were the series of cyber attacks in the same year that raised concerns about blockchain security.

One of the most talked about threats to cryptocurrency and the blockchain ecosystem as a whole is quantum computing. The issue involves the ability of quantum computing to capitalize off of subatomic particles that exist in myriad states at one time. Given the way these tiny particles behave, computing operations can be executed on a larger scales, more rapidly and with greater energy efficiency than classical computers.

Enter the Quantum Resistant Ledger (QRL), a movement aimed at ameliorating these concerns. The QRL is the first blockchain technology that provides long-term stability against quantum attacks. The project released an updated white paper by founder Peter Waterland and has recruited volunteers to create a minimum of 50 nodes and test the platform.

Waterland has long been a prominent voice on the bitcoin scaling issue and the potential dangers associated with quantum computing attacks in recent years.

Amid these concerns, there have been no known bitcoin quantum attacks at present. Nevertheless, if a quantum computer is every created that can break ECDSA, a very common computing signature mechanism, then all existing ledgers will have a high vulnerability regarding an attack, according to Waterland.

ECDSA stands for Elliptic Curve Digital Signature Algorithm, a cryptographic algorithm employed by Bitcoin ensuring that funds are only spent by their rightful owners. In other words, ECDSA is tied to the use of a private key, that secret number, known only to the person that generated it. Experts like Waterland surmise that if quantum computers could break the ECDSA, then the signature algorithm that generates cryptographic key pairs, and private and public keys would be in jeopardy. At this point, the hidden private key could be derived from the public key, compromising any data or funds connected with that key pair.

Waterland has said that there is no current evidence to suggest that quantum computers have been deployed to hack anything; he believes that these computations are wrapped up in more specialized work at present. Nevertheless, in the near future, quantum computing power could easily be repurposed to crack the network and break cryptocurrency hashes. Recently, rumors have spawned that some U.S. federal agencies, namely the NSA, have the quantum ability to crack the Blockchain.

Bitcoin and Blockchain guru Andreas Antonopoulos in a SoundCloud interview alluded to the fact that Bitcoin hashes are resistant to current quantum computers. Antonopoulos has also admitted that NSA already has quantum computers in place that are ten times more powerful and efficient than those Google’s, giving them the capability of breaking encryption systems. However, when recently asked whether he thought the NSA would use its quantum technology against Bitcoin, he responded that they would not.

Citing the example of the retroactive decryption of Blackberry devices worldwide, a spokesperson for the QRL developers team said that the new system would likely remain secure and steer clear of compromised for the next 50 to 100 years.

Waterland says, “Once the public testnet has been hardened and is sufficiently stable, we will announce a launch date for the mainnet release.” He noted that testers and public participation represent a great way to create scalable and effective standards for defending against quantum attacks and ensuring the future of the technology.

Source

The post Mitigating Vulnerabilities In Blockchain Security: Will QRL Work? appeared first on Bitcoins Channel.

Source: Science of Crypto
Mitigating Vulnerabilities In Blockchain Security: Will QRL Work?

Attic Lab CEO: We’re Building Tomorrow’s Financial System Where Banks Are Vehicles

by writer
Attic Lab CEO: We’re Building Tomorrow’s Financial System Where Banks Are Vehicles

Sergei Vasilchuk, Attic Lab CEO, presented the company’s innovative solution for banks and businesses dubbed OpenBankIT at the recent Blockchain UA conference. The solution, which is based on the principles of OpenSource, Free and UserFriendly, seeks to build a whole stack of solutions for e-money and other assets.

However, AtticLab didn’t stop at that. The company is at the final stages of development of OPIum project which is to become a center for mutual settlements for businesses in order to minimize involvement from banks. Mr. Vasilchuk told ForkLog more about the future project’s features.

ForkLog: In a few words, what OPIum is about?

Sergei Vasilchuk: There’s a concept of OPI, which means ‘operator of payment infrastructure.’ My fellow coders called the project OPIum as a joke, yet the designation caught on, and we can’t think of any other name.

Imagine there are two suppliers, say a drugstore and a gas station, who issue commodity coupons, which are their promises to supply goods. Thanks to OpenBankIT the supplier, i.e. the issuer, may create commodity promises in a private blockchain network that ensures security, reliability, availability and convenience levels higher than those offered by most bank accountancy systems.

Essentially, it is assets with limited circulation. An individual may buy them (issuance), exchange them (P2P), or exchange them for a commodity (settlement). As we can see, thus enables the supplier to interact with the customer without involvement from banks yet executing most financial operations. The euphoria caused by intuitive finance ends when owners of drugstore coupons try to use them at a gas station. Theoretically speaking, the gas station worker could accept drugstore coupons yet fiscal authorities wouldn’t be too happy about it as it classifies as ‘illegal financial operations.’

In plain terms, if users of ledger one give values to users of ledger two, there is a debt of ledger one before ledger two. There has to be processing so that the ledgers would interact, and that’s what we call OPIum. It is a kind of a bridge between private networks. It covers calculation of debts, which is the essence of clearing.

Thus, OPIum does two things: ensuring technical interaction possibility for private ledgers; and, in legal and accountancy terms, equalizes balances in the end of a business day, thus clearing it. If the ledgers are connected to Prostir, the clearing will be executed by the transfer bank, which is the National Bank of Ukraine. In a different payments system, the same function is executed by a commercial bank.

FL: Why is it profitable, and will it be convenient for regular users?

S. V.: Private issuance is okay with financial intermediaries as they simplify understanding and management of finances. Manufacturers don’t pay banks for credits, customers don’t pay service fees, and it sums up to around 30 per cent of saving. Imagine a mobile app stores 100 liters of milk you’ve bought for 7 hryvinas a liter instead of ten. Everybody but the bank is happy, the manufacturer gets cheap assets to develop their business while the customer just pays less.

Straightforward launch of such a financial paradigm is nearly impossible. First, it’s complex even in theory: it requires everyone to negotiate and integrate with everyone else. Second, there has to be a transparent legal and financial model. But effectively, it’s no rocket science, and the first step here is to make the technology available. That’s why we make our license for industrial software free, and open our source codes. We urge businesses not to be afraid of experimenting and to create their own mini banks. Rest assured, every member of such a system will find it convenient and profitable.

FL: We’re all accustomed to cards sticking out of our wallets. Will there be any general solution at this level? Or it’s more likely to be a mobile app?

S. V.: It’s a secondary issue to me. It should be considered as a part of some particular problems. There are lots of options like magnetic strip cards, chips, RFID, NFC, and lots of others. You might issue any card and link it to a wallet’s public key, or use a mobile app that identifies a user by their nose print. Online settlements prefer mobile apps, NFC prefers stores, while plastic cards are about ATM’s. It’s not so much about the access tool as the type of the managed assets.

FL: What’s the difference between OPIum and your other product, OpenBankIT?

S. V.: OpenBankIT is a private blockchain for banks or businesses. It may issue values like money, values or promises. There’s a mobile app and API in the same bundle so that everyone could become a mini bank, or even a full-fledged one under certain conditions.

You need OPIum is there are two companies deploying independent OpenBankIT-based networks in order to enable users of different networks to execute settlements. I recall back at school, there were local networks in your apartment connected to a different household with a cable so that your friends and yourself could play games. In this case, a local network is OpenBankIT, while OPIum is a telecom provider ensuring connectivity between such networks.

FL: Has anyone become interested in the project yet?

S. V.: It’s the customer requests that caused us to develop a cross ledger. The most exciting thing is that the list includes both a completely digital entity of Polybius Bank and classic banks like Alliance. Geographic issues, different legislations and diversity of accountable items can’t be an obstacle for exchange between completely different issuers.

The settlement center could be, depending on the area, a central bank or bitcoin network. It’s fantastic actually, sometimes I even find it hard to believe such things are possible. I recently told about OPIum with a conservative banker, and he was like “dude, you’re nuts or watched too many James Bond movies.”

FL: How will banks exchange things? Will there be some sort of tokens?

S. V.: It’s not that important. We just call it assets. They could be hryvnias or dollars, they could be a promise or a bond. It could be a liter, a meter, a yard, an hour, a pound, a kilogram or a kilowatt. It could be anything that has a numeric value and isn’t prohibited by law or common sense.

FL: So, in fact it’s an invitation to banks, businesses and everybody else to join an hierarchic system of exchange of everything for everything?

S. V.: It’s my deep belief that this is the financial system of tomorrow. These days, banks do too much. The entire settlement relies on them. However, most things we do every day don’t need banks. If you’ve got something like OPIum with two banks and three manufacturers, there could theoretically be counterflows where city dwellers need milk while country people need shoes. These are natural exchange examples. Some produce goods and export them abroad, while others work abroad to feed their families yet they have to pay unthinkable transaction fees. It all could be much easier and simpler by connecting the required links of the entire chain with software. It’s like Uber for finance.

FL: So, you mean it’s a predecessor of a new economic system that needs no banks and uses barter instead?

S. V.: It’s not very likely. Fiscal authorities won’t be too happy about such initiatives. However, the customer’s never-dying desire to save money combined with businesses’ need to optimize their software and processes could create a serious impetus for changes. Blockchain, in its turn, has a chance of becoming a tool for collective risk management. Even a minor deception could entail disastrous consequences. If such distributed network properly covers settlement and risk management functions, banks will only have to be financial supervisors, which isn’t very profitable.

FL: Is it consistent with legal requirements?

S. V.: Yes, though the exchange will use transactions in multiple private blockchain networks instead of cards. It would make the chain of events traceable and transparent. There will have to be a properly licensed bank to run accountable operations. The bank’s license should cover asset exchange operations under the rules understood by fiscal and other supervisory bodies.

Source

The post Attic Lab CEO: We’re Building Tomorrow’s Financial System Where Banks Are Vehicles appeared first on Bitcoins Channel.

Source: Science of Crypto
Attic Lab CEO: We’re Building Tomorrow’s Financial System Where Banks Are Vehicles