Tag Archives: bitcoin

Bitcoin soars Above $1,400

Bitcoin soars above $1400

Bitcoin Soars Above $1400

The price of bitcoin has bulldozed its way to a new historic all-time high on the Bitstamp Price Index (BPI) as the trading value of the cryptocurrency scaled beyond $1,400.

Bitcoin prices are now trading at previously uncharted levels as the value of the cryptocurrency reached a high of $1,425 on Bitstamp on Monday. The previous high of $1,350 registered on March 10 amid heightened traders’ interest in the lead-up to the SEC decision about a bitcoin exchange-traded fund (ETF).

Since the turn of 2017, bitcoin’s value has now risen by over 42%.

The latest surge in prices is a part of a continuing bullish trend that began in last quarter of 2016. The value of the world’s most prominent cryptocurrency struck a significant milestone on January 1 when prices struck $1,000. Within days, bitcoin made history and reached gold parity. That early momentum has stuck through what has been a dramatic four months since the turn of the year.

The crackdown led by the People’s Bank of China, the country’s central bank, remains the single largest negative driver in prices throughout January and February. Prices fell as low as $750 on January 12th, before recovering.

In March, the anticipation of the SEC’s decision toward a bitcoin ETF drove prices to hit an all-time BPI high of $1,350. The federal agency’s rejection sent prices tumbling below $1,000 in a sharp fall to a low of $891 before bouncing back to begin a bullish price trend in April.

April began with bitcoin gaining recognition as a legal method of payment in Japan. The legislation has led to retailers making notable moves toward accepting the cryptocurrency. As many as 260,000 Japanese storefronts will be enabled to accept bitcoin as payment by this summer. Emerging markets such as Russia and India have significantly changed their previously hardline stance with bitcoin, with authorities now talking about regulating (and acknowledging) the cryptocurrency. The last week of April also saw the SEC announce its decision to review its rejection of the bitcoin ETF application filed by the Winklevoss brothers. News of the review, it appears, has helped bitcoin’s bull run step up a gear. A week later, bitcoin is now trading at historic highs.

A protocol upgrade with Litecoin is among a number of factors that have contributed to the wider cryptocurrency market also making marked gains. Ethereum, the second most prominent cryptocurrency after Bitcoin, struck a new all-time high today and is now valued at $7 billion in overall market capitalization.

 

Global average prices struck a high a historic high of $1,433.81, according to data from BitcoinAverage.

David Ogden
Entrepreneur
 

Alan Zibluk – Markethive Founding Member

TradeCoinClub

TradeCoinClub

I have been laying low a bit lately while searching out and researching the best stuff online today, trying to fully and carefully apply whatever wisdom I’ve gained in some 13 years of working in this minefield.  And… I am SO happy to have MAJOR News for you! THIS may well be the best I have found, perhaps ever….

BITCOINS, YES –

Most knowledgeable online workers now prefer to use Bitcoins in business, for many very good reasons. Among the most knowledgeable, many have been looking for a TRADING PLATFORM for CRYPTOCURRENCIES and using Bitcoin, but there has not been anything genuine to date.  THAT HAS NOW CHANGED. 

WE CAN NOW –

–>> PASSIVELY EARN FROM FULLY AUTOMATED TRADING OF THE TOP TEN CRYPTOCURRENCIES.

–>> LEVERAGE BITCOIN AND EARN DAILY PASSIVE BITCOIN.

–>> DIVERSIFY PASSIVE BTC EARNINGS IN A POWERFUL NEW WAY.

–>> ACTIVELY EARN STILL MORE BTC BY REFERRING TO THE PLATFORM.

TCC: WHAT IT IS –

Trade Coin Club is an offshore registered company offering an automated trading platform for major cryptos.  Management is international and highly qualified. TCC trades in cryptos with licensed software that performs many millions of trades per day in ten of the major cryptocurrencies like Litecoin, Dash, BTC, etc. TCC itself works entirely with Bitcoins.

Globally in the launch and pre-launch in different regions. The company is full-function and earning and paying now.  This Site is sophisticated and well developed already and fully activated. TCC is uniquely well positioned in a high-demand global niche.  It is super-attractive for builders and leaders as well as for those who simply want to remain passive and leverage their Bitcoins into ever larger numbers.   Miners too will find it a highly attractive diversification that will likely earn a lot more strongly for them.

BENEFITS – PASSIVE:
Recent member reports indicate “trading” profits of around 20% monthly – in dynamic rising Bitcoins!  Set it and let it run.  Those returns are substantially better than “mining”.

ACTIVE:
Members who refer receive 10% on both levels one and two, and lesser amounts down to as many as 8 levels.  Plus referrers can earn 8 to 10% daily from a binary structure too.  And there are MORE referral bonuses. It’s rich, but it is also very smart.
Compounding of one’s choice of all or some earnings is available. Withdrawal of earnings is on demand.

Ride the BTC Rise: 
We are working 100% in Bitcoin, so as BTC rises we enjoy the full benefits of its rise – to who knows what heights!  This is in contrast to some online options that actually work in dollars and only use BTC for pay in’s and out’s.  In this as BTC rises your dollar based payout in BTC falls.

GUIDANCE –

It is scant on the site at the moment, as it is so early in the life of TCC, so the guidance to signing up, getting set up and earnings, etc., is currently best obtained in Youtube videos and not so much in the back office… as yet

Learn more:
TCC Details and OVERVIEW Videos and PDF –

TCC Presentation and background by boss, Joff Fortune, short, 20 min:  https://youtu.be/NiI7Joi_kag

TCC office in Belize: https://youtu.be/JHEDZ3PXx5Y

TCC PDF manual:  http://dreameagles.info/TCC/TCC_Manual_2-23-17.pdf

My personal advice is to dig in and enjoy these resources.  But do not get bogged down and too delayed in your explorations.  There can be good benefits to making your move quickly.  Be sure to have some Bitcoins, and a wallet to use for business.  I am personally using Coinbase and Blockchain as my bitcoin processors.  There are several choices.

How to Proceed –
Let’s keep this smooth and simple and let the videos take care of the heavy lifting.  Use them to ease your way and to avoid simple errors.

Cost Notes:
Joining is free, so you can do that immediately. Minimum to participate actively is 0.30 BTC (0.25 plus a one time 0.05)  Other entry levels are at 1 BTC and the highest at 5 BTC from which one will earn the most the fastest.

Referring?  Edit this info page if you wish with your reg link.  Duplicate the process of sharing these resources if you decide to build teams, pass these instructions on.  (Note: You need to be upgraded to at least the lowest Apprentice level package to refer.)

REGISTRATION LINK -> https://office.tradecoinclub.com/register/chuck 
Be sure your sponsor is listed as: Chuck

INSTRUCTIONS VIDEOS, use these as detailed guides, follow these.

1. SIGN UP PAGE:
https://www.youtube.com/watch?v=p8dFkcWlEF4&feature=youtu.be&hd=1

2. BUY YOUR PACKAGE:
https://www.youtube.com/watch?v=LPnZaKO4mnA&t=633s

3. HOW TO ACTIVATE YOUR WEEKLY AUTOMATIC TRADE:
 https://youtu.be/sneX_yRH8Og

BECAUSE OF LEGAL DEPARTMENT RECOMMENDATIONS, WE MUST NOW SET OUR TRADES EVERY WEEK. PLEASE MAKE SURE TO LOGIN EACH WEEK BETWEEN SUNDAY 4PM PST AND MONDAY 3:59PM PST TO RESET YOUR TRADES ACTIVATION.

4. SUBMITTING DOCS CORRECTLY:

 (AT YOUR CONVENIENCE)  documents can be submitted later but before requesting withdrawals.
https://youtu.be/zVAM7jDlwOk

5.  Refer if you wish. 
Edit this email to make it your own, with care to the signup link, and share it with your favorite contacts and friends.

6.  WHY IS THE EXCHANGE RATE WALLET ONLY SHOWING HALF OF YOUR DEPOSITS?
https://youtu.be/E8D4MhTmowA

7.  HOW TO COMPOUND YOUR EARNINGS.
https://www.youtube.com/watch?v=4mHr6jcHIfw&t=370s

8.  More info:
 http://www.tradecoinclub.info

9.  ENJOY A BETTER LIFE IN A RICHER WORLD. 

Once again…

REGISTRATION LINK -> https://office.tradecoinclub.com/register/chuck
Be sure your sponsor is listed as:  chuck

P.S. keep this page for future reference and edit it to suit your needs.  Thank you. 

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

TRADE COIN CLUB (TCC) : A Platform for Trading and Earning Bitcoins Easily

TRADE COIN CLUB (TCC) :
A Platform for Trading and Earning Bitcoins Easily

Trade Coin Club (TCC)

is the world’s first licensed top 10 auto-trading cryptocurrency platforms. It is a membership trading platform to earn bitcoin with a high automated security system. It’s a membership club, created to revolutionize the trading market of digital coins. As it today 23rd, February, 1 Bitcoin = $1,146 and 1Bitcoin is predicted to be up $2000 by December 2017

Why Should You Invest in TCC?

1) You earn daily in bitcoins which can be withdrawn and converted to cash immediately or left to compound for a month.

2) You earn daily without needing to refer anybody; but if you do refer, your earnings become magical.

3) Bitcoin has been approved as a Legal Tender in Japan & Philippines with more countries gearing up to do same; these announcements is causing and will yet cause the value of bitcoin to appreciate tremendously.

With all of this information coupled with the fact that bitcoin is highly liquid, that is, easily converted to cash, I strongly advise all who can afford it to get onboard TCC investment without delay and don’t miss this golden opportunity. In case you don’t understand what TCC Investment really is, not to worry as I have attached in this email 2 videos that will help you if you would take the time to watch them to the end. Remember, what you don’t know, you don’t know and what You don’t know, You can’t benefit from.

Steps to Register for TCC

1) Click Here to Register

2) Call us on 07059546314 to get the current rate of Bitcoin and buy to sign up for a plan in TCC then you can be a part of the trading.

(3) You will need a minimum of 0.3Bitcoin to sign up for a plan in TCC

(4) After making payment, send your TCC Username & Password to cryptoprenuers@gmail.com for funding; but if you have a bitcoin wallet and can handle the funding yourself, then watch the videos in your back office and go ahead and fund.

Chuck Reynolds
Contributor
559-474-4614

 

Alan Zibluk – Markethive Founding Member

Trade Coin Club Is Officially Live And Trading Crypto Currencies!

Trade Coin Club Is Officially Live And Trading Crypto Currencies!

                                 

Trade Coin Club,

the first cryptocurrency exchange that is licensed and insured. It uses automated trading software is now up and running and generating massive profits for those who are depositing their bitcoins. Trade Coin Club is free to join. It does require a deposit of at least.30 bitcoins to start trading. Trade Coin Club is based in Belize and now has members in over 150 countries. It was started by Joff Paradise, a Germany born entrepreneur based in Las Vegas, Nevada. Paradise has run and owned several businesses including restaurants, casinos, health club chains, clothing lines and satellite networks in the Caribbean.

Trade Coin Club entered its official pre-launch in late January 2017. Thousands of traders have already been using the platform at the time. As the membership base continues to grow, Trade Coin Club etches out a unique niche in the crypto currency space with its revolutionary trading software.

Joining Trade Coin Club

The platform has an easy to use back office where you can deposit and withdraw your bitcoin, move coin within the exchange, set your trading levels, sign up new members and much more. There are three different levels of joining: Apprentice, Trader, and Senior Trader. Each has its own level of benefits and thresholds. The Apprentice level requires a bitcoin deposit of .30 to .99 to get started. The Trader level requires a 1 to 4.99 bitcoin deposit. And the Senior Trader requires at least a 5 bitcoin deposit to get started.

For those who want to refer others to the exchange, there is a very generous referral program attached. Although it is not required, you can refer others to the exchange for a generous referral commission that goes directly into your account. Adding these commissions to the exchange account can really increase your profits exponentially. This is how the exchange leverages the concept of compound interest with both interest and additional deposits.

Chuck Reynolds
Contributor
559-474-4614

Alan Zibluk – Markethive Founding Member

A New Crypto Coin Exchange Launches With Hands-Free, Automatic Trading!

A New Crypto Coin Exchange Launches With Hands-Free, Automatic Trading!

   The-Crypto-Coin-Exchange

A brand new crypto coin exchange named Trade Coin Club (TCC)

is up and running and generating massive profits for those who are depositing their bitcoin! This is the very first fully licensed, insured, brick-and-mortar crypto coin exchange and trades the top 10 crypto currencies of the day. The program uses high volume automated bot trading with proprietary algorithms so depositors don’t have to do ANYTHING other than sit back and watch their bitcoin account increase every day.

This new crypto coin exchange is revolutionizing the cryptocurrency space and people are flocking to it in droves to deposit their bitcoin. TCC already has members in over 150 countries at the start of the pre-launch in late January 2017! You can create a FREE account in Trade Coin Club. But it is a private club, where you have to be invited by a current member. (This allows Trade Coin Club to pay huge amounts of referral commissions to members, thereby exploding their crypto coin exchange trading profits.) Joining is completely free. You can create your free account and browse the back office by following the instructions here: How To Join Trade Coin Club. I can help you 559-474-4614

Could This Brand New Crypto Coin Exchange Be Your Ticket To Financial Freedom?

Many members who are getting in early are earning dozens of bitcoin totaling an equivalent of tens of thousands of dollars! If you have ever thought about what it would have been like to invest a couple hundred dollars into bitcoin when it was around a dollar a coin, then perhaps that missed boat has come back around. For more information and tutorials on how to earn bitcoin with Trade Coin Club, see my Trade Coin Club Tutorials page. And feel free to contact me with any questions about the program.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Malta is Embracing Bitcoin and Blockchain in Sweeping National Strategy

Malta is Embracing Bitcoin
and
Blockchain in Sweeping National Strategy

Malta’s government is reportedly developing a broad national strategy

that will see the government embrace bitcoin and blockchain innovation to promote and adopt the technology. According to a report by Malta Today, the island nation’s Cabinet has approved the first draft of a national strategy to promote blockchain. The revelation was made by Malta’s Prime Minister Joseph Muscat, speaking at an official financial conference. “We must be on the frontline in embracing blockchain and Bitcoin…we must be the ones that others copy,” the prime minister reportedly stated.

The prime minister bullishly added that Malta would become one of the first countries in the world to embrace blockchain technology on a national level. The national strategy, which is still in its draft stages, will be put up for public consultation soon, Muscat added. While keeping most details under wraps, Muscat hinted a few applications of blockchain technology, particularly for record-keeping in registries.

The prime minister stated:

This is not just about Bitcoin, and I also look forward to seeing blockchain technology implemented in the Lands Registry and the national health registries. Malta can be a global trail-blazer in this regard.

The ‘Bitcoin continent of Europe’

Muscat’s comments are notable for the significant endorsement of blockchain technology by the prime minister, who is the country’s highest official as the head of the government. Malta’s Prime Minister Joseph Muscat is championing the use of cryptocurrencies like bitcoin and blockchain technology. The prime minister called on other European Union leaders to embrace and harness the potential of cryptocurrencies in order to become the “Bitcoin continent of Europe”, according to a notable quote reported by Malta Today.

He stated:

I understand that regulators are wary of this technology but the fact is that it’s coming. We must be on the frontline in embracing this crucial innovation, and we cannot just wait for others to take action and copy them. We must be the ones the others copy.

Muscat is making a pointed attempt at pushing the agenda for blockchain technology in a post-Brexit reality, hoping to lure any part of the FinTech industry from the UK, widely regarded as the world’s hub for financial technology. Bringing over even a measly 1% of the UK’s FinTech industry to Malta’s shores would bring in €200 million to the local economy, the prime minister revealed. Meanwhile, Malta’s Stock Exchange has already set to path the development of its strategy to research blockchain technology in late 2016.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Bitcoin Price Analysis: Keeping Grounded as Price Skyrockets

Bitcoin Price Analysis:
Keeping Grounded as Price Skyrockets

  

Over the past few days, Bitcoin has hit fresh all-time highs

(ATHs) on all exchanges, as well as new all-time highs in market capitalization. The premium between Bitfinex and the other exchanges continues due to a halt on USD deposits/withdrawals, preventing arbitrage. GDAX/Coinbase, a USD on-ramp, is closing that premium, suggesting that heavy buying is occurring on that exchange. On high timeframes, resistance confluence around $1,410–1,450 and $1,800 become apparent with Fibonacci extensions, drawn from previous ATH to low, and yearly pivots. As bitcoin reenters price discovery mode, with no prior resistance in this zone, these are very real targets that will be reached for until buyers are exhausted.

There is also an old bullish chart pattern, the inverted head and shoulders, with a measured move around $1,475. We can also see a messy cup-and-handle chart pattern with a measured move of $2,300. This will likely be the blow-off top target should it occur in 2017.

A Few Things to Consider

As we ride this bullish wave, it is still worth thinking conservatively about the future. As a trader, I look ahead to an eventual pullback/correction — how dramatic could it be? So far it seems that the buying will continue indefinitely, and there are plenty of high technical targets ahead, but when the ball drops, where is this going to go? Perhaps more important, which events outside of technicals can make a dramatic drop happen? For instance, Chinese regulatory announcements provided both bullish fuel with yuan devaluation and bearish fuel with increased Bitcoin and trading regulations. It’s events like this that should be considered and planned for prior to their occurrence. Always remember; stairs up, elevator down.

Here are the unresolved issues still looming that could have a significant effect on price:

  1. Any number of possibilities with Bitfinex regarding USD

    • Best-case scenario:
      USD deposits/withdrawals resume, and price on Bitfinex gets arbitraged down in line with the other exchanges.

    • Worst-case scenario:
      Bitfinex is insolvent (extremely unlikely).

    • Other scenario:
      Halt on USD deposits/withdrawals continues indefinitely.

  2. Bitcoin Unlimited (BTU) hard fork remains a possibility with anywhere from 51 to 75 percent of miner support.

    • Best-case scenario:
      BTU realizes it is in a losing battle, leaves well enough alone and disappears.

    • Worst-case scenario:
      BTU attempts a hard fork anyway.

  3. The SEC and the COIN ETF

    • Best-case scenario:
      Approval; priced in to some degree but not completely.

    • Worst-case scenario:
      Another denial, which is already priced in at this point.

  4. SegWit Activation

    • Best-case scenario: UASF brings SegWit online.

    • Worst-case scenario:
      Drags on, unactivated, until timing out in November 2017.

  5. An unknown or true
    Black Swan type of event, such as harsh government regulation in the United States. Least likely.

Summary

  1. New ATHs in price and market capitalization suggest an immediate bullish future.

  2. A shrinking premium between Bitfinex and GDAX/Coinbase suggests new money is ramping on to digital currency.

  3. Technicals show resistance between $1410–1450 and $1800.

  4. Several unresolved issues remain. Have a plan for all possibilities.  

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Bitcoin Prices Have Tripled in a Year and Just Hit a New All-Time High

Bitcoin Prices Have Tripled in a Year and Just Hit a New All-Time High

  

Bitcoin prices have hit a record high,

just a few days after breaking the previous all-time high a few days before. The value of the alternative virtual "cryptocurrency" climbed above $1,400 for the first time ever on Sunday according to the Coindesk.com index, which takes into account several different independent exchanges. One year ago, a unit of Bitcoin was worth only around $400. The currency has been on a steep climb ever since, hitting $750 in early December and $1,100 by February 2017. It hit a record-high of $1,330 last Thursday and has stayed on a tear since then.

Some observers predicted that Bitcoin's value would skyrocket after the election of Donald Trump, because of the strength of the American dollar and the urge to invest in alternative currencies. Recent Bitcoin gains have come as the U.S. Securities and Exchange Commission said it was considering a Bitcoin ETF created by twin brothers Cameron and Tyler Winklevoss. But there are also concerns in the Bitcoin world about some exchanges facing issues from corresponding banks about processing transactions, Coindesk reports. Mind you, most investing pros warn that it is unwise to invest in Bitcoin because it is still an unstable and relatively untested currency.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Bitcoin Hits New All-Time High

Bitcoin Hits New All-Time High

  

A year ago, one Bitcoin could be had for about $450.

On Thursday, the cryptocurrency peaked at just over $1,340, as measured by the Coindesk price index, before retrenching slightly to $1318 by this morning. That’s still a return of nearly 200%. Bitcoin has seen a remarkably steady rise since early 2016, fueled by global regulatory normalization, broad interest in the technology from enterprises and banks, and rising transaction volumes. Cryptocurrency analysts, according to Coindesk, think the trend will continue, citing among other factors that most Bitcoin investors are long-term bulls who will take profits conservatively.

Fortune’s technology

But the very transaction volume that is Bitcoin’s key fundamental also presents a serious medium-term threat, as the system has struggled to keep up. Transaction speeds have become impractical for merchant payments, and fees have risen, making the system less competitive with conventional payment systems such as credit cards. Struggles over how to fix the problem have raised the specter of a network split —though that could, at least theoretically, give holders additional value in a manner akin to a stock split.

Bitcoin had a notable previous peak of around $979 way back in November of 2013 (Coindesk’s number seems conservative here—Coinmarketcap records a 2013 peak of $1149). That push was fueled by a wave of mainstream media attention, but prices slumped through 2015 on the realization that the tech’s promise would take some time to fulfill, dipping as low as $204 that August.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

MimbleWimble: Silly Sounding Tech Could Seriously Reform Bitcoin

MimbleWimble:
Silly Sounding Tech Could Seriously Reform Bitcoin

  

The state of bitcoin today is highly discouraging.

Watching grown men hurl insults at each other on Reddit and Twitter is just sad. When I became involved in 2013, bitcoin's potential seemed endless. It was heralded as a possible solution for micropayments, remittances, microfinance, parking meters, email spam and so on. Many women, myself included, believed in bitcoin as a means to address world problems of poverty by providing access to capital for the remaining three-quarters of the world.

As time passed, I became discouraged that many needed use cases did not come to fruition. Startups attempting to build companies with those business models have died. Anything involving small payments in bitcoin has been mostly eliminated due to high fees. The most popular use case is as a store of value. It's not to say that isn't useful: in the growing number of countries with devaluating currencies, bitcoin is an attractive alternative. Bitcoin has had an indelible impact as a groundbreaking technology. But it's disheartening that it has stalled in doing more.

There are fundamental issues that will likely never be solved, as evidenced by the two-year debate on how to scale bitcoin. The community is more divisive than ever. I can't help but think part of the reason it's so dysfunctional is because it's devoid of women. Women (or any rational person) do not want to participate in this dystopian community: it's juvenile and filled with vitriol. Bitcoin desperately needs a Patronus Charm, "a pure, protective magical concentration of happiness and hope.” My disappointment in bitcoin caused me to look at the blossoming landscape of alternate blockchains: eg litecoin, zcash, monero, ethereum and dash have all grown in market size and popularity. It's clear that more alternative coins (altcoins) will develop innovative solutions and come to market. This is why MimbleWimble caught my interest.

Starting point

As a brief background, the original MimbleWimble white paper was placed by someone called Tom Elvis Jedusor (Voldemort’s French name in JK Rowling's Harry Potter book series) on a bitcoin research channel in July 2016. Tom's white paper "Mimblewimble" (a tongue-tying curse used in "The Deathly Hallows") was a blockchain proposal that could theoretically increase privacy, scalability and fungibility. It remained theoretical until recently.

At the end of 2016, someone named Ignotus Peverell (the original owner of the invisibility cloak, if you know your Harry Potter characters) started a Github project called Grin and began turning the MimbleWimble paper into something real. Andrew Poelstra, a mathematician at Blockstream, presented on this work in January 2017 at Stanford University’s Blockchain Protocol Analysis and Security Engineering 2017 conference. More recently, Ignotus posted a technical introduction to MimbleWimble and Grin.

It took me a while to wrap my head around MimbleWimble. The more I internalized it, the more hopeful I became that something more magical than bitcoin could appear. I will attempt to explain MimbleWimble and why what it proposes – privacy, freedom of choice, equal access, fungibility, and sustainable growth over time – are so important. Privacy matters, a lot. One of the most important rights we have is the right to privacy. It’s our right to “keep a domain around us, which includes all those things that are part of us, such as our body, home, property, thoughts, feelings, secrets, and identity."

Privacy matters

I consider privacy extremely important. It's very apparent how valuable it is when you lose it or when someone violates it. In my 20s, I was stalked. A person whom I had met in passing on a military base waited for me after work and surreptitiously followed me home. He did this for several weeks – all unbeknownst to me – until one day he knocked on my door and told me he had been following me and professed his undying love. I immediately slammed the door and called the local and military police. I lived alone in the woods and was so freaked out that I moved.

Only someone who has been stalked can understand how frightening this experience was. To this day, it affects many of my behaviors to guard my privacy. Physical trespass of privacy is often preceded by online privacy violations. Recent events, such as Congress granting ISPs (internet service providers) the right to sell your personal information – browsing habits, app usage history, purchasing habits, location data – are very concerning. As Luke Mulks from Brave elegantly wrote, "Your digital data trail is the evidence of your human presence online. Your data is valuable, private, and most important, it’s yours."

What's available

If we cannot rely on our legislature to protect our constitutional rights (can we rely on them for anything anymore?), technology needs to intercede to make it harder for greedy capitalists to put your privacy up for sale. Privacy extends to what to share publicly about what we buy or whom we donate to. These transactions should not be open for all to see. Women, especially those trying to escape repressive social or economic conditions, have a dire need to stay anonymous. That's a fundamental flaw in bitcoin: every transaction and address balance is available for the world to watch and track.

There are some things you can do to hide your transaction, such as tumbling, but you need to go out of your way to use them and they are breakable. Privacy-oriented cryptocurrencies like monero and zcash improve privacy significantly. In monero, the transaction is not natively private but relies on ring signatures to mask exchanges. Zcash leverages a technology called zk-snarks to build private transactions, which is a huge improvement. However, it still requires a lot of extra resources to build a confidential transaction, so most users still issue their transactions "in the clear" (clear vs shielded counts).

The big change

MimbleWimble is natively private. There are no ring signatures or zero-knowledge proofs on top of a transparent bitcoin-like transaction. In a MimbleWimble transaction, all values are fully obscured. There are no reusable or identifiable addresses. Every transaction looks the same to an outside party.

The two properties verified in a MimbleWimble transaction are:

  1. No new money is created
  2. The parties sending money must prove ownership of their keys.

To verify no new money has been created, you must demonstrate that the sum of outputs minus the inputs equals zero. To verify key ownership, the transacting parties must legitimately prove their public and private keys exist to authorize the transaction. MimbleWimble uses a blinding element to obscure all values – transaction amounts and keys – while holding true basic mathematical facts. The blinding element relies on multiplying and adding secret factors to obscure real values.

let's say I have a transaction with these amounts:

(1) 17 + 12 = 29
The balanced equation shows no new money was created, complying with property 1) above. The equation remains true if I apply a secret blinding number (eg 11) to all terms.

(2) 17*11 + 12*11 = 29*11
Without knowing my secret number 11, you would have a hard time guessing what the original transaction values are in this equation.

(3) 187 + 132 = 319
In equation (3), I’ve managed to keep both the values and blinding number private while still allowing others to verify I have not created new money in my transaction.

The big picture

Still, don't think this is a big deal? MimbleWimble offers other extensive benefits that indicate it could form the foundation of the kind of network bitcoin was meant to be.

Freedom of choice

By obscuring all values, MimbleWimble provides full privacy and gives you the choice of what to reveal. It's similar to donor levels in various non-profits. You’ll see the range a donation was made for, but you don’t necessarily know the exact donation. Both the donor and the non-profit know exactly how much was donated, but no one else needs to know. This "right to privacy gives us the ability to choose which parts in this domain can be accessed by others, and to control the extent, manner, and timing of the use of those parts we choose to disclose."

Equal access

Another aspect of bitcoin that disturbs me greatly is there is little opportunity left for an average person to participate in securing the network. The requirement of a highly specialized and expensive chip for bitcoin mining – the ASIC – has almost eliminated anyone from becoming a bitcoin miner, whose primary responsibility is validating transactions and placing them into blocks. The mining community is now heavily centralized and this has greatly contributed to bitcoin's woes.

The ability to grow over time while still providing equal opportunity to participate are key tenets of Ignotus' Grin implementation of MimbleWimble. Grin is designed to be ASIC resistant so that anyone who wants to try mining can buy a widely available GPU chip at a local Best Buys or online for a reasonable price. Making MimbleWimble ASIC resistant democratizes access. I’ve even toyed with the idea of building a GPU miner with my kids to see what it can do.

Ability to grow over time

Another way to safeguard equal access over time is to ensure the blockchain network doesn't get dragged to a standstill when transaction volume increases. This is the core issue in the bitcoin block-size debate: there are more transactions than can fit into a 1Mb block. As long as there's a restrictive size limit, there will be a capacity issue. A dirty little secret is that to get around scalability issues, almost all payment processors and exchanges do off-chain transactions. Which begs the question: why bother using a cryptocurrency with blockchain?

Increasing usage will increase transaction volume. So how do you ensure that a block size can continue to accommodate volume increases? By streamlining each block. The principle is similar to simplifying equations. If there are terms that are identical on both sides of an equation, you can cut them:

(8) 2+y = x+2
(9) 7+3+5+4+2+y = x+7+3+5+4+2

Both equations (8) and (9) simplify to:

(10) y = x

MimbleWimble maintains that if an output spends an input, you no longer have to keep them because they cancel each other out. This greatly cuts down the amount of data you have to store and process. The only data that nodes keep is unspent outputs and block headers. Instead of thinking of blockchain capacity in terms of number of transactions, MimbleWimble is designed to grow with the number of users. The streamlined blocks make growth sustainable over time as the transaction data set does not continue to get bigger. This increases privacy since transaction data gets removed and it also enables fungibility.

Fungibility

Fungibility is the ability for equal units to be interchangeable. Let's say I give you a dollar – either as a coin or a paper note. The Federal Reserve prints the paper dollar and the US Mint produces the coin dollar, but both are equal. Neither is lesser or greater than the other and you can choose to use a dollar coin or bill interchangeably. This is a key characteristic of currency: equal units must be interchangeable, or fungible. The US dollar is fungible. Bitcoin is not.

The bitcoin blockchain keeps every single input and output forever and so each coin carries a legacy. It's similar to equation (9) above. Another dirty little secret is that when picking which transactions to process – in addition to the fee – payment processors, miners, and exchanges will look at the inputs (ie 7+3+5+4+2) to assess the quality of the transaction. The consequence is one bitcoin is not fungible with another.

The most valued bitcoins are called 'coinbase transactions', which are the ones created when a block is found. They are newly minted and 'clean' and some parties pay a premium to buy them. A hierarchy in coin quality develops. The consequence is, if you receive bitcoins that have inputs that are tainted (eg they have been used in a dark market), spending them may become increasingly difficult. In MimbleWimble, because the (7+3+5+4+2) inputs and outputs are all discarded when spent, each coin is exactly equal to the other. In other words, MimbleWimble coins are interchangeable and fungible.

Conclusion

I'm very hopeful seeing the accelerating pace of research and innovation in public blockchains. If privacy and scalability are solved, MimbleWimble could be the Patronus Charm for bitcoin, perhaps as a complementary sidechain. Imagine what a universal fungible digital coin could enable with access for everyone. One hesitation I have, however, is that many people developing it have taken on Harry Potter-themed pseudonyms. It's understandable given the personal attacks rampant in the community, but it does conjure a mystical aura. I’m glad Andrew Poelstra, a highly qualified real figure, is actively involved with MimbleWimble.

I hope I can add my voice to the mix, also as a real person. I realize that by not using a pseudonym, I'm opening myself to the troll armies. I’ve attempted to explain why MimbleWimble is interesting to me. I hope it intrigues enough people and inspires both men AND women to engage early; it would be great if this community doesn’t wind up as a testosterone-filled boys club. Apparently, Merope Riddle (Lord Voldemort's mother) is already very involved in MimbleWimble’s development. I believe it’s worth learning, participating in its genesis, and helping to develop a healthy community around it.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member